An exceptionally low base price could indicate poor working conditions further down the supply chain and could result in lower quality.

An exceptionally low base price often signals cost-cutting measures in the supply chain, which can

include poor working conditions (e.g., low wages, unsafe environments) and compromises on quality

(e.g., substandard materials). The CIPS L3M6 module highlights that sustainable procurement

involves assessing such risks, as low prices may reflect unethical practices that contradict CSR

principles. This can lead to reputational damage and legal liabilities for organizations.

Reference: CIPS L3M6 Study Guide, Section on Sustainable Procurement and Supply Chain Risks.

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