Corporate Responsibility (CSR) & Supply Chain Act Companies are responsible for the impact of their trade. This requires binding rules. The UN Guiding Principles on Business and Human Rights and the OECD Guidelines on the Implementation of Corporate Due Diligence in the Clothing and Footwear Sector make clear recommendations on how states can transpose these into national laws. So far, voluntary action has not been enough. Since January 2023, the German Supply Chain Act has been in force and obliges companies to comply with their due diligence obligations. What is Corporate Social Responsibility (CSR)? According to the European Commission, CSR refers to the "responsibility of companies for their impact on society". Actions resulting from this responsibility are considered to contribute to sustainable development. CSR covers ecological, economic and social aspects of entrepreneurial activity. The basic references for sustainability requirements are the ILO Declaration of Principles and the OECD Guidelines. Who is responsible? Many companies operate globally, in developed countries as well as in the Global South or crisis areas, where governments are not willing or able to create good conditions for sustainable business. So who bears the responsibility for human rights violations and environmental damage caused by corporate actions? Are companies or governments enacting the laws? In response, the UN Human Rights Council developed Guiding Principles on Business and Human Rights in 2011. These define the duties and responsibilities of companies and governments and make recommendations on how they can be integrated into national laws. Jetzt Video mit Youtube -Cookies laden Video laden Implementation of the UN Guiding Principles in Germany In Germany, the National Action Plan on Business and Human Rights, NAP for short, was adopted on the basis of the UN Guiding Principles on Business and Human Rights 2016. However, it did not contain any mandatory elements. The subsequent NAP-Monetoring, a multi-year company survey conducted by the Federal Government, showed that only about five percent of companies based in Germany with more than 500 employees adequately comply with their human rights due diligence obligations along their own supply chains. A voluntary commitment is not enough. What are the UN Guiding Principles on Business and Human Rights? There have been and still are some attempts to introduce agreements on corporate social responsibility at transnational/international level. These are, for example, the core labour standards of the International Labour Organisation (ILO) or the OECD Guidelines or the UN Guiding Principles on Business and Human Rights, which were adopted in 2011 and recognised by all governments as a minimum standard. The principles are divided into three pillars: Protection, respect, remedy The State's Duty to Protect Human Rights Corporate Responsibility to Respect Human Rights Access to judicial and extrajudicial remedies against human rights violations Source: business and human rights. Hrsg: CORA, 2014, p.2, The Supply Chain Act The German Supply Chain Act has been in force since 1 January 2023. An essential part of due diligence is to introduce risk management to detect, prevent or reduce human rights violations and environmental damage. The law prescribes what measures need to be taken to prevent and rectify the situation, and requires that complaints procedures and regular reporting be carried out. However, gaps remain in terms of liability, climate protection and gender equality. A European supply chain law is currently being negotiated. Our goals Companies disclose their entire supply chain and publish their audit reports. At the German and European level, legal regulations provide a legal framework that also makes it possible to enforce international standards. Our activities and measures Multi-stakeholder partnership to implement due diligence obligations in Bangladesh's textile sector Together with other NGOs, FEMNET is committed to ensuring that the perspective of rights holders is taken into account when fulfilling these due diligence obligations. MULTI-STAKEHOLDER PARTNERSHIP IN BANGLADESH Supply Chain Act: For a law that benefits workers Our southern partners know the goals and possibilities of the German law, which entered into force on 1.1.2023.Trade unions and affected workers make good use of this to counter labour rights violations. A SUPPLY CHAIN LAW THAT BENEFITS WORKERS Covenant of Textiles We provide decisive impetus for the process of implementing the textile companies' due diligence obligations.We bring our expertise to the steering committee and to important focus topics such as gender equality and complaint mechanisms. ACTIVE IN GERMANY... Certifications & transparency Certifications of standards such as GOTS and Fairtrade based on social audits do not replace the individual due diligence obligations of companies. TRANSPARENCY & AUDITS... back
