a platform is necessary
Human rights violations like child labour, modern slavery and environmental damage occur in many high-risk industries and high-risk countries on a daily basis in global supply chains. Hence, many global governments published laws to protect vulnerable people and contain the pressing global issue.
Companies shall be included in the obligation to source and produce more responsibly. They need to make their supply chain transparent so that risks and violations become visible and can be fixed.
bizpando is the platform that helps companies to implement the following requirements.
The due diligence measures required by the German Supply Chain Act are composed of three initial tasks to build the fundament and six provisions for the ongoing risks and complaints process.
Fundamental tasks for compliance with the German Supply Chain Act
Place responsibility on someone in-house
A person within the company needs to be
assigned to be responsible for the risk management. Such a person should have a good understanding
and a transparent view on the company's global overall supply chain.
Introduce a complaints procedure
The company has to ensure that a complaints
procedure is in place. It enables persons to
point out human rights and environmental
risks and violations that have arisen as a
result of the economic activities of a
company in its own business operations or
those of a direct or indirect supplier.
risk management system
Measures have to come into effect to minimize the risk of violations and to stop their occurences in the case of the company having caused or contributed to them within the supply chain. Such measures are
managed through a risk management
Process tasks for compliance with the German supply chain law
The company has to identify the human rights and environmental risks and complaints in its own business area as well as those of its suppliers.
The company has to analyze, priories and weigh up the identified risks and complaints and then communicate the results internally to the decision makers.
The company shall prepare a report on the fulfilment of its due diligence obligations in the previous financial year and make it publicly available free of charge.
The company has to take action for analyzed risks by issuing a policy statement on its human rights strategy and by implementing preventive measures in its own business and with its suppliers.
The company has to take corrective actions for existing violations reported through the complaint’s procedure and other information sources.
The company has to document the fulfilment of due diligence obligations on all process steps and store documentation for at least seven years.
Worldwide Supply Chain Acts
Below, you will find an overview of worldwide supply chain laws, their thresholds, deliverables and sanctions for violations:
Global social responsibility
Politically and economically, effective supply chain laws are beneficial for Germany and Europe.
Industrial countries can secure and increase their wealth in the long run by enhancing environmental and human rights compliance in their sourcing countries. By an improvement of the livelihoods and GDPs of the sourcing countries, their productivity and participation in global trade can be increased, which leads to a rising global prosperity.
Transparency in the supply chain as well as good and close relationships secure long-term competitive advantages for companies. The issue of extended producer responsibility has existed for a long time even without supply chain laws.
In times when a wealth of information is available to the end customer on a daily basis, people's attitudes towards companies and their supply chains have changed massively. Corporate ignorance of human rights violations in the supply chain is incomprehensible to most. Companies that have a close relationship with their suppliers were even less affected by economic losses during the pandemic, and for a shorter period of time, than companies that do not know their supply chain.
In "normal" times, companies benefit from access to better suppliers with higher quality products and preferred service. You can't build these relationships without knowing your supply chain.
In summary, accountability and contribution of companies to an improvement of environmental and human rights in supply chains benefits numerous affected parties including themselves.
Compared to other platforms, bizpando offers you multiple
use of your own as well as supplier data. After you have
checked your company yourself, you can share your results
with every participant without having to fill out additional
questionnaires. In return you receive the results of all sub-
suppliers. Multiple use here therefore leads to time
efficiency and cost savings for your company.
Our tree logo is the representation of bringing business, humanity and nature together.
Our goal is to connect them so that everyone can benefit from each other.
This leads to positive impact on human rights, environmental health and economic growth.
The basics of the Supply Chain Due Diligence Act
The Supply Chain Due Diligence Act stipulates that companies based in Germany with more than 3,000 employees (more than 1,000 employees from 2024) are obliged to fulfil due diligence obligations in their supply chain.
The specific requirements include conducting regular risk analyses, identifying and eliminating human rights violations and environmental damage, monitoring the effectiveness of measures taken and reporting annually on these activities.
Impact on companies and implementation of due diligence obligations
Compliance with the Supply Chain Due Diligence Act requires companies to commit significant resources and actively participate in all aspects of their supply chain. They must have effective risk assessment and monitoring mechanisms in place and take appropriate corrective action to minimise potential risks.
Companies that violate the law could face significant fines and even be excluded from participating in public tenders. It is therefore crucial that companies develop a comprehensive strategy to comply with the law.
The role of the Supply Chain Act in the future of corporate governance
The Supply Chain Act symbolises a shift in the way companies are expected to fulfil their responsibilities to society and the environment. It is about considering not only one's own operations, but also the impact a company has on its supply chain.
Companies that implement processes and procedures such as bizpando to comply with the Supply Chain Due Diligence Act can avoid potential legal sanctions. In addition, they can also improve their brand image and stakeholder trust by demonstrating that they take their social and environmental responsibilities seriously.
The Supply Chain Act is a crucial step towards a more sustainable and responsible economy. By demanding greater transparency and responsibility in supply chains, the law promotes a higher standard of corporate behaviour. Companies that fulfil the requirements of the law can not only avoid potential legal consequences, but also strengthen their reputation and improve their relationships with stakeholders.
At bizpando, we have set ourselves the goal of strengthening companies by greatly simplifying the management and monitoring of supply chains.