The German minister for cooperation and development has just finished composing a bill on corporate social responsibility in supply chains. The bill, which will implemented the EU directive on extra-financial reporting (see our article n°8721) is set to be adopted by the Council of ministers ahead of its presentation to the Bundestag before the summer. It will make the CSR obligations for companies with more than 250 employees, a turnover of at least 40 million euros per year and with their headquarters in Germany, more stringent. Among the requirements set out is the obligation to ensure safety of sub-contractor factories, as well as to demand that certain social standards be applied, such as the minimum wage and maximum working time, and that basic employment protection measures be respected. Under the bill, companies will be obliged to conduct regular internal checks to identify potential social and environmental risks within their respective supply chains. Companies will have to appoint an individual to take charge of compliance issues, who will need to implement the measures required under the law and oversee internal audits. Finally, companies subject to the rules will have to provide a means for employees of sub-contractors to flag failings and abuses. Such a means will have to protect workers’ identity and ensure their impunity as whistle-blowers.
Germany : bill to be presented on social responsibility within supply chains
Planet Labor, 11 February 2019, n°11279 - www.planetlabor.com