{"id":5386,"date":"2020-04-20T11:20:00","date_gmt":"2020-04-20T09:20:00","guid":{"rendered":"https:\/\/www.setlog.com\/?p=5386"},"modified":"2021-03-26T16:49:21","modified_gmt":"2021-03-26T15:49:21","slug":"the-german-supply-chain-act-curse-or-blessing","status":"publish","type":"post","link":"https:\/\/www.setlog.com\/en\/the-german-supply-chain-act-curse-or-blessing","title":{"rendered":"The German Supply Chain Act! Curse or blessing?"},"content":{"rendered":"\n<p>The UN&#8217;s\nguiding principles for business and human rights do not demand much from\ncompanies worldwide:<\/p>\n\n\n\n<p>&#8211; Risk\nAssessment<\/p>\n\n\n\n<p>&#8211;\nCountermeasures against violations of human rights and child labor<\/p>\n\n\n\n<p>&#8211;\nTransparency and complaint points <\/p>\n\n\n\n<p>&#8211; Adequate\nhuman rights diligence<\/p>\n\n\n\n<p>In 2011,\nthese measures were adopted in the UN Human Rights Council and many companies\nwere full of praise for the &#8220;pragmatic approach&#8221;. At the time, the\nInternational Chamber of Commerce and the International Organization of\nEmployers, which includes the Confederation of German Employers&#8217; Associations\n(BDA) promised: Businesses are &#8220;determined to assume their responsibility\nto respect human rights&#8221;.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">&#8220;Voluntary actions\nare not the answer, we need a legal framework.&#8221;<\/h2>\n\n\n\n<p>Until now, the German government has relied on companies voluntarily adhering to human rights standards in the supply chain. Furthermore, many lobbyists from business and even the <a href=\"https:\/\/www.arbeitgeber.de\/www\/arbeitgeber.nsf\/ID\/home\">BDA (Confederation of German Employers&#8217; Associations)<\/a> are concerned about the potentially damaging effect the introduction of this kind of law might have on business.&nbsp; <\/p>\n\n\n\n<p>Somewhat\nshocking about this attitude is, however, that the welfare of the German\neconomy is put before the safety and well-beeing of the population of producing\ncountries by many. In Germany, 3,000 companies were asked to submit a\nself-assessment on the topic of &#8221; Obligation for executive care in the\nprotection of human rights at their suppliers&#8221;, and 464 companies replied.\nA shameful 20% of these companies met the requested requirements. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">&#8220;Extremely damaging\nto the economy&#8221; <\/h2>\n\n\n\n<p>&#8230;some\npropagate while for others it is already ten past twelve and the introduction\nof the German Supply Chain Act is urgently needed in order to not further\nsupport the human rights violations and exploitation of the producing countries.<\/p>\n\n\n\n<p>Even large German companies are now joining the call for a new law. At the beginning of December 2019, 42 German companies, including <strong><a href=\"https:\/\/info.setlog.com\/kik-osca-vcm-case-study\">Kik<\/a><\/strong>, Tchibo, Ritter Sport and Nestl\u00e9, launched an appeal.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.business-humanrights.org\/en\/statement-f%C3%BCr-eine-gesetzliche-regelung-menschenrechtlicher-und-umweltbezogener-sorgfaltspflichten\"><img decoding=\"async\" src=\"https:\/\/www.setlog.com\/app\/uploads\/2020\/04\/Lieferkettengesetzt-1-1024x642.png\" alt=\"\" class=\"wp-image-5390\"\/><\/a><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.business-humanrights.org\/en\/statement-f%C3%BCr-eine-gesetzliche-regelung-menschenrechtlicher-und-umweltbezogener-sorgfaltspflichten\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The German Supply Chain Act,\nliable or not? <\/h2>\n\n\n\n<p>German\ncompanies operating abroad must be held liable if they do nothing about serious\nhuman rights violations in their supply chains, human rights and development\norganizations demand, because nothing changes voluntarily. <\/p>\n\n\n\n<p>This is the\nwrong way according to trade associations: It is impossible for companies to\ncontrol all suppliers. And they should not be punished for something they\ncannot influence. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">But is that really the\ncase? <\/h2>\n\n\n\n<p>Is there\nreally no way for companies in Germany to control the suppliers abroad? <\/p>\n\n\n\n<p>Then how is\nthe quality of the products checked or the health or safety requirements of the\nproduct guaranteed? If so, how is ensured that furs are actually only processed\nby farms or that medical products are actually produced under required clean\nroom conditions? Doesn&#8217;t the credo &#8220;trust is good, control is better&#8221;\nalso apply here? Then why not also check human rights, safety standards and\nworking conditions? <\/p>\n\n\n\n<p>First and\nforemost, however, it is not about liability, but about compensation and the\nduty of care.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What else needs to happen?\n<\/h2>\n\n\n\n<p>The crevasse\nat an iron ore mine in Brumadinho, Brazil, with many dead, the massacre of\nminers in Marikana, South Africa, the fire in a textile factory in Pakistan and\nthe export of toxic pesticides to India and Paraguay: the list of human rights\nviolations in value chains of German companies is long. In many cases they were\navoidable. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The German Supply Chain\nAct is taking concrete shape, isn&#8217;t it?<\/h2>\n\n\n\n<p>What many\nwanted to prevent is now taking on more and more concrete forms, a new\nregulation that forces German companies that have production abroad to ensure\nsafe and fair working conditions there. The German Supply Chain Act is designed\nto prevent child labor, guarantee fair living wages and prevent environmental\ndamage. In fact, all &nbsp;the business\ncommunity has to do is to take a closer look at their production sites &#8211; their\nown or sub-production sites -, carry out an appropriate risk assessment and\ninitiate countermeasures, create transparency, set up complaints offices or in\nother words: start exercising adequate &nbsp;diligence in human rights. But will this\nhappen without a legal basis?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The UN&#8217;s guiding principles for business and human rights do not demand much from companies worldwide: &#8211; Risk Assessment &#8211; Countermeasures against violations of human rights and child labor &#8211; Transparency and complaint points &#8211; Adequate human rights diligence In 2011, these measures were adopted in the UN Human Rights Council and many companies were [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":5350,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_eb_attr":"","inline_featured_image":false,"footnotes":""},"categories":[980],"tags":[],"class_list":["post-5386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sustainability-csr"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The German Supply Chain Act! Curse or blessing? - Setlog<\/title>\n<meta name=\"description\" content=\"Despite the companies&#039; agreement to the UN&#039;s guiding principles for business and human rights, the Supply Chain Act still is met with resistance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.setlog.com\/en\/the-german-supply-chain-act-curse-or-blessing\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The German Supply Chain Act! 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