A desirable effort of the supply chain

Authorized Business Chain Act: Corporate Responsibility for Human Rights Compliance

The Supply Chain (LKSG) Fair Business Act took effect on January 1, 2023. It regulates corporate responsibility for compliance with human rights in the first supply chain.

The core elements of the obligatory obligations include:

• Establishment of risk management systems to identify, prevent or minimize risks of human rights violations and environmental damage.
• Duty to comply with legal precautions and recovery measures.
• Procedure of complaints and regular reporting.

The obligation of effort should be applied to:

• Operation of the company's own business.
• Contract partner action.
• Other supplier action (indirect).

The law initially applies to the company with:

• At least 3,000 workers in Germany start in 2023.
• At least 1,000 workers start 2024.

The Supply Chain Act contains a complete catalog of eleven internationally recognized human rights conventions, including:

• Prohibition of child labor, slavery and forced labor.
• Does not take into account health and safety.
• Proper salary withholding.
• Does not take into account the right to establish a trade union or representative of the worker.
• Disclaimer access to food and water.
• The removal of land and illegal search points.

Penalties may be imposed if the company fails to comply with their legal obligations. This can be up to 8 million euros or up to 2 percent of global annual sales. A fine -based framework based only applies to companies with annual sales of more than 400 million euros.

The Federal Economic Control and Export Office (BAFA) has implemented the Supply Chain Act at its new field office in Borna from January 1, 2023. Bafa has extensive control power, such as:

• Enter the business premises.
• Claim the information and check the documents.
• Ask the company to take concrete action to fulfill their obligations and enforce it by imposing penalties.

In order to support the company in carrying out their duties, Bafa developed and published distribution. Bafa provides distribution materials on the sitewebsite

Its own supply chain act.

How ComlyMarket can help you:

• Provides risk management systems and runs risk analysis
• The use of the policy statement of corporate human rights strategy
• Establishment of preventive measures
• Immediate Implementation of Correction Measures in Cases of Detected Law
• The formation of a complaint procedure
• Documentation and reporting requirements to meet fair persistence requirements
• Complydoc: It is the first Smart IT and the first Open Open Source Code solution for sustainability of supply chains, chemicals & product compliance management to gather information from suppliers.