Supply Chain Act

from Wikipedia, the free encyclopedia

A supply chain law should implement the aspect of corporate social responsibility (CSR) in a legally binding manner. Companies that foreign intermediate goods or finished products designed to be so in all phases of their supply chain to the human rights committed. They have to trace any production processes that are harmful to the environment or that violate working conditions at their suppliers abroad and avoid or turn them off from the outset or as soon as they become aware of them. In the event of a breach of this legal obligationthere is a risk of a fine or compensation for the competitors.

General

In globalized trade, companies often violate fundamental human rights and damage the environment in the course of global value and supply chains . So far, this has been accepted with approval, which is why the companies cannot be prosecuted for damage by those affected. The most practices when settled in the global trade production in low-wage countries and the observance of human rights control from a distance. However, this is currently not done adequately by companies. According to the current legal situation of many states, what is beyond their control cannot be subject to their product liability .

Types of problematic working conditions

In developing and emerging countries, specific criticisms are made of workload , occupational safety , occupational safety , working hours , exploitation , occupational health protection , fair trade , social compatibility , child labor and compliance with environmental standards . However, the legal responsibility for these criticized working conditions lies exclusively with the local companies and the authorities that monitor them , so that it is legally difficult to blame companies in industrialized countries for the problems of foreign procurement markets. These only have the option of boycotting foreign suppliers who allow or accepting working conditions that have been criticized, or of influencing them through moral appeals .

Due to the consequences of the corona pandemic , the situation at the textile production facilities, which are mostly in developing countries, worsened dramatically. After the temporary lockdown in the western industrial nations, orders were initially canceled, which led to an immediate loss of wages at 98% of the production facilities at the production site in Bangladesh and later to the resumption of production with partial disregard of the hygiene rules on site.

Country overview

In some European countries there are already laws for the respect of human rights in globalized value chains.

Germany

In Germany, the federal government committed itself in its 2018 coalition agreement to comply with a corporate duty of care by law, unless the majority of large German companies voluntarily initiate such processes by 2020. This passage in the coalition agreement goes back to the Federal Government's National Action Plan on Business and Human Rights (NAP) from 2016, which emphasized the responsibility of German companies to respect human rights. The action plan is based in turn on the UN Guiding Principles on Business and Human Rights of 2011, which are intended to ensure compliance with human rights in business matters.

The Federal Government then carried out a monitoring process to determine the extent to which companies with more than 500 employees are fulfilling their duty of care. The final report of this monitoring process was adopted on October 8, 2020. Accordingly, in the relevant survey year 2020, 13 to 17% of the companies examined voluntarily fulfilled the NAP requirements (“ NAP fulfillers”). Another 10 to 12% of the companies are “on the right track” to meet the NAP requirements. The target value set by the federal government of at least 50% “ NAP fulfillers” was thus missed.

Legal policy

On March 12, 2020, Federal Chancellor Angela Merkel stopped a corresponding initiative by Federal Labor Minister Hubertus Heil and Development Minister Gerd Müller for a law against exploitation in global supply chains. At the beginning of July 2020, Chancellor Merkel invited Labor Minister Hubertus Heil (SPD) and his cabinet colleague Gerd Müller (CSU), who is responsible for development policy, to an appointment. It became clear that the Chancellery now also wants to close the issue in this electoral term. The government sees a need for action because so far only around one in five companies complies with human rights due diligence. This was the result of a survey conducted by management consultancy Ernst & Young among thousands of companies, which was controversial with regard to the methodology . However, these consultations did not result in a breakthrough until early 2021. The draft law was last blocked in the coalition committee on February 3, 2021 by Federal Economics Minister Peter Altmaier , although Development Minister Müller (CSU) and Federal Labor Minister Heil (SPD) pushed for an agreement.

On February 12, 2021, Hubertus Heil, Gerd Müller and Peter Altmaier agreed on a compromise. The Supply Chain Act is to apply from January 1, 2023, initially only for companies with more than 3000 employees, from 2024 also for companies with more than 1000 employees. On June 11, 2021, the law on corporate due diligence in supply chains was passed by a majority of the Bundestag in a roll-call vote.

criticism

Above all, entrepreneurs and business lobbyists have criticized a corresponding legal regulation. They fear negative consequences for the economy. That is why they warn of uncontrollable legal consequences and criticize the fact that the state is trying to impose a control obligation on the economy that it cannot fulfill itself.

The Confederation of German Employers' Associations sees problems in the implementation and considers such a law to be impractical. Together with the Federation of German Industries , the Association of German Chambers of Commerce and Industry and the Retail Association, they are striving to fully utilize the period specified in the National Action Plan by the end of 2020. They are supported in this by Minister of Economic Affairs Peter Altmaier . To this end, the opponents of the supply chain law lobby the Federal Foreign Office , the Ministry of Development , the Chancellery and the Ministry of Economic Affairs . The economic association of the CDU also speaks out against the law.

support

According to a survey by Infratest dimap, around 75 percent of citizens were in favor of a supply chain law in 2020. 22 percent reacted negatively.

Numerous large German companies hope that a legal framework will create a level playing field. In December 2019, 42 German companies called on the federal government to create a legal framework to create a level playing field. They demanded binding and comprehensible guidelines for commercial enterprises as to when the corporate duty of care with regard to suppliers and supply chains is fulfilled so that sustainable supplier management does not become a competitive disadvantage in the market.

Since 2019, more and more organizations from the fields of human rights , the environment, development cooperation and corporate responsibility, as well as trade unions and churches, have come together to form the “Initiative Supply Chain Act”. With reference to the connections between human rights violations and environmental destruction, they are demanding a corresponding law from the federal government that covers the entire value chain and provides for sanctions in the event of a breach of the law.

During a trip to Ethiopia, Development Minister Gerd Müller expressed his interest in giving German companies responsibility for the first production steps in other countries.

Support also comes from Holger Görg from the Institute for the World Economy (IfW), who considers such a law to be technically feasible and particularly emphasizes the positive effects on standards in the global supply chains that are set by the industrialized nations.

In September 2020, numerous Roman Catholic bishops in Germany signed an appeal supported by the international alliance of Catholic development organizations CIDSE and the Catholic aid organization Misereor , which called for a solidarity-based and ecological restructuring of economic rules and control of supply chains; 233 bishops from 43 countries signed worldwide.

With clear demands for a supply chain law, over 70 economists contradicted the representation of the business associations and the Minister of Economic Affairs Peter Altmaier on January 13, 2021. As a result, a supply chain law is feasible and necessary from an economic perspective. At the same time, they chanted multiple market and political failures in the previous production of goods, which was associated with considerable negative social and ecological costs.

France

Loi de vigilance, protection of human rights

In February 2017, a law was passed in France with the “Loi de vigilance” to make corporate due diligence for human rights binding. French companies are obliged to identify and prevent human rights risks also in subsidiaries and along the supply chain.

Great Britain

Modern Slavery Act

In 2015 the British Parliament passed a law against modern forms of slavery and on reporting and action against forced labor, the Modern Slavery Act.

Netherlands

Child Labor Due Diligence Law

On May 14, 2019, the First Chamber (Dutch Senate) approved the Child Labor Due Diligence Law , which was passed by the Second Chamber in February 2017 . The law obliges companies to observe due diligence obligations with regard to child labor and provides for complaints and sanctions in the event of non-compliance.

Austria

In Austria, civil society actors and employee representatives have been actively involved in the Treaty Alliance Austria since 2016 and are fighting for binding rules along the supply chain. The work is coordinated by the Social Responsibility Network (Nesove).

In October 2020 the Treaty Alliance Austria started the campaign “Human rights need laws - so that supply chains do not violate!”. The campaign calls for a supply chain law at national and EU level as well as support for the binding UN agreement on business and human rights. The civil society campaign is supported by ÖGB , Chamber of Labor , Network Social Responsibility (NeSoVe), Südwind , Dreikönigsaktion , Fairtrade , FIAN , Global Responsibility and attac . She is in contact with the German campaign “Initiative Supply Chain Act”.

In November 2020, a citizens' initiative for a supply chain law, independent of political parties, NGOs and interest groups, was launched. Jean Ziegler , Susanne Scholl , Manfred Nowak , Kathrin Hartmann , Sebastian Bohrn Mena , Helga Kromp-Kolb , Robert Misik , Julya Rabinowich belong to.

Switzerland

Popular initiative, counter-draft, law

Binding due diligence is also being debated in Switzerland. Currently (2020/21) a draft law on corporate responsibility is in the parliamentary procedure, which provides for liability for damage caused by those who caused it. The group responsibility initiative supported by 120 organizations (federal popular initiative “For responsible companies - to protect people and the environment”) submitted the necessary signatures for a binding vote in 2016. On 29 November 2020 which was rejected in the referendums - believed While 50.7 percent, just by the voters ( popular majority ), but failed to the failure to achieve a majority of the cantons, ie cantonal assigned votes ( cantons - Yes: 8 1/2 Booths, no: 12 5⁄2 booths). Parliament's counter-draft , which had been drawn up before the vote, was thus implemented. The law is expected to come into force in 2021/22.

European Union

European Commission

EU Justice Commissioner Didier Reynders announced on April 29, 2020 that he would present a draft law on corporate due diligence in 2021. This announcement was welcomed by MEPs and supporters of a German supply chain law. On October 26, 2020, the EU Commission opened a public consultation on "sustainable corporate governance", in which various economic actors and public institutions are to participate. The survey ends on February 8, 2021.

European Parliament

The Legal Affairs Committee of the European Parliament adopted an own-initiative report on January 27, 2021, which provides for strict due diligence requirements for companies. They should be obliged to avoid negative effects on human rights, the environment and good corporate governance in their production and business relationships. The so-called due diligence strategy should encompass the entire value chain. This is also to ensure that goods that are manufactured under forced labor cannot be placed on the internal market. This could particularly affect imports from China. The European Parliament sees his move as support for Justice Commissioner Didier Reynders.

NGOs

On December 9, 2020, the European Trade Union Confederation , the European Coalition for Corporate Responsibility , Friends of the Earth , the Austrian Trade Union Confederation and the Chamber of Labor started a campaign at EU level. Through a campaign website, citizens were able to ask the Commission to come up with a piece of legislation that would effectively tackle human rights abuses committed by businesses. Over 145,000 citizens took part.

Web links

Germany

items

supporting documents

  1. ↑ Supply Chain Act: For human rights in business. Retrieved June 14, 2020 .
  2. ↑ Supply Chain Act: Guideline for argumentation What does due diligence mean for companies p. 22. Accessed on September 1, 2020.
  3. ↑ Supply Chain Act: Corona crisis intensifies child labor. Retrieved June 14, 2020 .
  4. ↑ What the fact !? Fast fashion: the real price of our clothes. Retrieved June 14, 2020 .
  5. ↑ Supply Chain Act: For human rights in business. Retrieved June 14, 2020 .
  6. ↑ Action plan for the implementation of the UN Guiding Principles on Business and Human Rights 2016 - 2020 , on Auswaertiges-amt.de
  7. ↑ Planned supply chain law. in: Legal tribune Online January 21, 2020.
  8. ↑ UN Guiding Principles on Business and Human Rights on ecchr.eu, accessed on May 27, 2020.
  9. ↑ Federal Foreign Office: Monitoring of the National Action Plan on Business and Human Rights. October 13, 2020, accessed December 3, 2020 .
  10. ↑ Supply Chain Act: Chancellery stops draft in: welt.de March 12, 2020.
  11. ↑ The supply chain law is coming - and is becoming a problem due to China in: Handelsblatt , August 12, 2020, accessed: August 21, 2020
  12. ↑ Against child labor and environmental destruction: Minister of Economic Affairs Altmaier blocks supply chain law in: Handelsblatt , February 4, 2021, accessed: February 6, 2021
  13. ^ Daniel Goffart: Supply Chain Act: Companies are only liable for the first row of suppliers. In: Wirtschaftswoche. February 12, 2021, accessed February 14, 2021 .
  14. ↑ Bundestag passes law against exploitation and destruction of nature. Zeit Online , June 11, 2021, accessed the same day
  15. ↑ https://www.bundestag.de/dokumente/textarchiv/2021/kw23-de- Lieferkettengesetz- 845608
  16. ↑ So harmful for the economy in: zeit online December 11, 2019.
  17. ↑ Supply Chain Act: Chancellery stops draft in: welt.de March 12, 2020.
  18. ↑ Arne Semsrott : Supply Chain Act: This is how companies lobby against human rights standards. FragDenStaat , August 6, 2020, accessed on August 12, 2020 .
  19. ↑ Die Welt, Supply Chain Act before the end , March 12, 2020
  20. ↑ Die Zeit, large majority of German citizens for the Supply Chain Act , September 15, 2020
  21. ↑ So harmful for the economy in: zeit online December 11, 2019.
  22. ↑ kik Sustainability Report 2019, page 3, accessed on May 27, 2020.
  23. ↑ wwww. Lieferkettengesetz.de
  24. ↑ Fight exploitation at the roots on: tagesschau.de accessed on May 27, 2020.
  25. ↑ Business and government argue about compliance with human rights in: MünsterscheZeitung.de, accessed on August 16, 2020.
  26. ↑ domradio.de: Bishops worldwide for supply chain law and environmental protection , September 28, 2020.
  27. ↑ Economist Statement , January 13, 2021.
  28. ↑ Global platform for comparing the national action plans. Retrieved May 27, 2020 (American English).
  29. ^ Modern Slavery Act 2015. Retrieved June 14, 2020 .
  30. ^ Dutch law against child labor. Retrieved June 14, 2020 .
  31. ^ TNC Treaty Alliance. In: NeSoVe. Retrieved March 3, 2021 (German).
  32. ↑ Campaign page "Human rights need laws". Retrieved December 18, 2020 .
  33. ↑ Human rights need laws! APA / OTS, October 7, 2020, accessed December 18, 2020 .
  34. ↑ Johanna Bürger: A supply chain law for Austria should be the end of excuses for corporations. Moment, December 9, 2020, accessed December 18, 2020 .
  35. ↑ ORF at / Agencies red: AK, ÖGB and SPÖ call for social standards in the supply chain. December 9, 2020, accessed January 29, 2021 .
  36. ↑ Committee of the Citizens' Initiative Supply Chain Act. Retrieved January 29, 2021 (German).
  37. ↑ Group responsibility initiative on NZZ
  38. ↑ corporatejustice.ch: Compromise remains open. Retrieved June 14, 2020 .
  39. ↑ business-humanrights.org: Swiss group responsibility initiative: Parliament adopts counter-proposal without liability rules. Retrieved June 14, 2020 .
  40. ↑ tagesschau.de: Referendum in Switzerland: No majority for stricter company liability. Accessed November 30, 2020 .
  41. ↑ EU Justice Commissioner announces draft European supply chain law on business-humanrights.org accessed on May 27, 2020.
  42. ↑ Initiative. Accessed December 10, 2020 .
  43. ↑ Sven Giegold: EU supply chain law: EU legal committee puts forward strong proposal - EU Commission must react now , January 27, 2021, to sven-giegold.de (and other MEPs )
  44. ↑ http://www.enforcinghumanrights-duediligence.eu/de
  45. ↑ Anderl / Katzian: More due diligence in the supply chain! APA / OTS, December 9, 2020, accessed December 18, 2020 .
  46. ↑ Hold business accountable campaign page. Retrieved December 18, 2020 .
  47. ↑ de. Retrieved March 3, 2021 .