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Valuing Respect Business Model Red Flags

Red Flag 1. Offering lowest cost goods or services in ways that put pressure on labor rights

This Red Flag may appear in a company’s value proposition. That is, in what the company offers and to whom.

RED FLAG # 1

The business’s commercial success substantially depends upon offering lowest cost goods or services such that it becomes economically challenging for the company or suppliers to respect labor rights.

FOR EXAMPLE

Selling apparel and other consumer goods premised on cheapest prices for customers, such that increases in production costs are absorbed through the wages of already low-paid workers
Locating (and relocating) production to countries with lowest wages

HIGHER-RISK SECTORS

Commerce sector, in particular “value brand” retail companies, including apparel retail
Textiles, clothing, leather and footwear sector
Food and beverage sector

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