Business Model Red Flags

How to use this resource

There are 24 Business Model Red Flags. Each one is available to read online, by clicking on the word READ, or to download as a PDF. You can also use the purple bar below to filter them by sector or industry. Once you’ve picked the ones you want to download, select them by clicking on the circled number of each Red Flag and choose ‘Download All Selected’. You may also choose to download the full series or to download a high level menu. For support, please contact communications [at] shiftproject [dot] org.

Filter by: Click to choose Agriculture Alternative Energy Apparel Automotive Banks Chemicals Computer Services and Software Construction Consumer Digital Defense Finance and Credit Services Food and Beverage HR and Recruitment Services Health Care Providers Hotels Household Goods/Appliances Insurance Investment Banking and Brokerage Services Legal and Accountancy Services Management Consultancy Mining and Metals Oil and Gas Pharmaceuticals and Biotechnology Private Security Privatized Prison Pulp and Paper Real Estate Restaurants and Bars Retailers Technology Hardware and Equipment Telecommunications Tobacco Transportation and Logistics Travel and Tourism Utilities Clear filters

TO SELECT MULTIPLE DOCUMENTS TO DOWNLOAD, CLICK ON THE CIRCLED NUMBER on the left.

Download Menu Download All Selected Download All

Red Flags in
The Value Proposition

WHAT THE COMPANY OFFERS AND TO WHOM THE BUSINESS’S COMMERCIAL SUCCESS SUBSTANTIALLY DEPENDS UPON…

1

Lowest cost goods or services in ways that put pressure on labor rights. Read

2

High speed delivery that places pressure on warehouse workers and logistics workers in the “last mile”
Read

3

Project timelines that undermine consultation with communities
Read

4

Privatized access to public goods with risks to quality of service
Read

5

Algorithmic decision- making that can result in discrimination
Read

6

Providing online platforms with potential for online and offline harm
Read

7

Financial or advisory services that enable high- risk clients to cause harm
Read

8

Products that harm when overused
Read

9

Products that harm when misused
Read

10

Products that harm when used as intended

i

Note: As a result of the research and consultation process, we decided there was no need to produce a long-form PDF for Red Flag 10. Please reach out to: info [at] shiftproject [dot] org with any questions.

Red Flags in
The Value
Chain

HOW THE COMPANY DELIVERS VALUE THE BUSINESS’S COMMERCIAL SUCCESS SUBSTANTIALLY DEPENDS UPON…

11

Speed in developing products or services, or delivering projects, with risks to health and safety
Read

12

Land use in countries where ownership may be contested
Read

13

Depleting natural resources or public goods such that it undermines access or health
Read

14

Commodities with unclear provenance and visibility to impacts on workers or communities
Read

15

Business relationships with limited influence to address risk to people
Read

16

Using data such that privacy and other rights are undermined
Read

Red Flags in
Cost Structure & Revenue Model

HOW THE BUSINESS MODEL IS PROFITABLE THE BUSINESS’S COMMERCIAL SUCCESS SUBSTANTIALLY DEPENDS UPON…

17

Using gig workers or other precarious labor
Read

18

Sourcing low-paid labor from labor providers
Read

19

Sourcing commodities that are priced independent of farmer income
Read

20

Shift inventory risk to suppliers with knock-on effects to workers
Read

21

Automation at speed or scale that leaves workers little chance to adapt
Read

22

Sales-maximizing incentives that put consumers at risk
Read

23

Markets where regulations fall below human right standards
Read

24

Aggressive tax- minimization strategies
Read