Compliance
To what extent must companies monitor
supply chains?
Companies are required to identify and minimize risks within their supply chains. This is particularly true for human rights and environmental standards. Depending on the legal situation at hand, indirect suppliers must also be monitored. Our lawyers specializing in legal compliance can help you set up a legally compliant monitoring system.
Summary
- What legal requirements must be observed with regard to supply chains?
- Which companies must observe due diligence obligations?
- Which areas must be monitored as part of due diligence obligations?
- What are the liability risks associated with breaches of due diligence obligations ?
- How can compliance with due diligence obligations be ensured?
What legal requirements must be observed with regard to supply chains?
Both the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG) and the French “Loi de vigilance” require companies to comply with human rights and environmental due diligence obligations. The EU Supply Chain Directive could impose additional rules. Recently, calls for less bureaucracy have grown louder, leading to a number of changes, suspensions, and postponements. Our lawyers specializing in legal compliance can clarify which rules apply to your company and help you develop a supply chain monitoring concept.
Which companies must observe due diligence obligations?
Companies must identify and minimize human rights and environmental risks in their business processes and supply chains. Depending on the nature, scope, and risk potential of their activities, these due diligence obligations apply to companies of all sizes. Subsidiaries or business units of companies that operate internationally may also be affected. Our lawyers specializing in legal compliance determine the relevance of due diligence obligations and advise on the implementation of appropriate, legally compliant measures.
Which areas must be monitored as part of due diligence obligations?
Due diligence obligations require monitoring of human rights risks, such as forced labor, child labor, discrimination, and unfair working conditions. Additionally, environmental aspects, such as the handling of hazardous substances, resource consumption, and emissions, must be considered. Indirect suppliers may also need to be included. Our lawyers specializing in legal compliance can help you identify relevant risk areas and establish effective control and prevention measures.
What are the liability risks associated with breaches of due diligence obligations ?
Violations can result in hefty fines and reputational damage. Companies may also be excluded from public contracts. Depending on the legal situation, civil lawsuits are also possible. Our lawyers specializing in legal compliance can advise you on risk minimization and legal protection.
How can compliance with due diligence obligations be ensured?
Structured risk analysis processes, clear responsibilities, and regular training are necessary. Companies must document their measures, prepare reports, and meet deadlines. Our lawyers specializing in legal compliance develop practical, individualized solutions for these purposes.
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