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DEF Company receives several proposals for the manufacture of a sub-assembly used in an important product line. All of the responding suppliers indicate they plan to subcontract part of the work in order to meet high seasonal demand. Most of the proposed subcontractors are located in low-cost offshore locations. The supply manager is concerned that the subcontractors may not adhere to DEF's standards for fair labor practices. Which of the following is the BEST way of ensuring that the suppliers' subcontractors maintain fair labor practices?
Correct Answer: C
* Contract Clause for Standards Compliance: Including a contract clause that mandates subcontractors must meet DEF's standards for fair labor practices is the best way to ensure compliance. * Legal Obligation: This clause creates a legal obligation for suppliers to ensure their subcontractors adhere to the specified standards. * Enforcement Mechanism: The contract clause can be enforced through regular audits and reviews, ensuring that subcontractors maintain fair labor practices. * Clear Expectations: Providing clear expectations and legal requirements through the contract ensures that all parties understand the importance of adhering to fair labor practices. References: * ISM: "Contract Management and Administration" * CIPS: "Ethical and Sustainable Procurement"