Supply Chain Due Diligence Act:Corporate responsibility for human rights compliance
supply chain Due diligence method (LkSG)teeth,2023year1month1It took effect on the day. Regulates the responsibility of businesses for human rights compliance in the supply chain for the first time.
Core components of due diligence obligations include::
- Establishing a risk management system to identify, prevent or minimize the risk of human rights violations and environmental destruction.
- Obligation to comply with preventive and corrective measures set out by law.
- Complaint process and regular reporting.
Due diligence obligations apply as follows::
- The company's own business operations.
- Contract partner's actions.
- Other (indirect) supplier actions.
The law initially applies to the following companies::
- 2023At least in Germany since 20193000People's employees.
- 2024At least since 20191000People's employees.
Supply Chain Act has been recognized internationally.11Contains an exhaustive catalog of human rights treaties.:
- Prohibiting child labor, slave labor and forced labor.
- Ignore occupational safety and health.
- Withholding of appropriate wages.
- The right to form a labor union or to form employee representatives is ignored.
- Denied access to food and water.
- Illegal deprivation of land and life.
A fine can be imposed if a company fails to comply with its legal obligations. These are the largest8million euros or the largest annual global sales2It could reach a percentage. The sales-based fine framework is400Applies only to companies with annual sales of over a million euros.
Federal Economic Export Control Bureau (BAFA)teeth,2023year1month1Starting from the day, the new field office in Borna has been enacting the Supply Chain Act.BAFAThere is a wide range of controls such as::
- Enter the office.
- Request information and examine the document.
- Requests the company to fulfill its obligations and take concrete action to implement this by imposing a payment of the fine.
To help companies fulfill their due diligence obligations,BAFAdevelops and publishes handouts.BAFAmakes handouts available under its own supply chain laws Website.
ComplyMarketHow can it be useful:
- Building a risk management system and carrying out risk analysis
- Adoption of the policy declaration for corporate human rights strategies
- Establishing precautions
- Immediate implementation of corrective action in case of detected legal violations
- Establishing a complaint procedure
- Documentation and reporting requirements to meet due diligence requirements
- ComplyDoC:IntelligentITand is the first open source code cloud solution for supply chain sustainability, chemical and product compliance management, gathering information from suppliers.