What is CTIP due diligence in supplier selection?

• A. One-time background check focused on financial stability
• B. Systematic screening of suppliers for TIP risks, verification of labor practices, and requirement of CTIP-compliant policies
• C. Only financial vetting
• D. Focus solely on product quality

Answer: (B)

CTIP due diligence in supplier selection means conducting a proactive, systematic assessment to prevent trafficking in persons from entering the supply chain. It involves screening suppliers for TIP risks, verifying labor practices throughout the supplier’s operations (such as wages, hours, recruitment, freedom of movement, and the absence of forced or child labor), and requiring CTIP-compliant policies and implementation measures as a condition of the contract. This approach is broader than a one-time check or a narrow focus on financials or product quality; it embeds human trafficking risk management into the procurement process and calls for ongoing monitoring, audits, and corrective actions. In practice, you’d use risk assessments, supplier questionnaires, review of codes of conduct, contractual flow-down of CTIP requirements, and training and verification activities for suppliers. A one-time background check on financial stability, or focusing only on financials or product quality, misses the ongoing TIP risks and the need for policies and oversight.