What’s Next for the Supply Chain Law? Perplexed Companies and Watchful Consumers: The Future of the Supply Chain Law
The Supply Chain Law, which has been in effect since January 1, 2023, has drawn significant attention. Companies are now required to observe human rights due diligence in their global supply chains. This regulation, particularly applicable to large corporations, aims to prevent human rights violations and environmental destruction that may occur during production. However, after the first few months of the new year, the question arises as to how the implementation and consequences of the law will proceed.
In an initial assessment, companies report mixed experiences. While some corporations emphasize that they have already taken extensive measures to ensure compliance with the law, others show a degree of uncertainty, particularly regarding the effort and necessary resources. Experts stress that this could lead to increased pressure on small and medium-sized enterprises, which do not have the same adaptability options as large-scale companies. Smaller businesses may struggle under the high demands.
The federal government views the law as an important step toward strengthening human rights and environmental ethical responsibility in the global economy.However, it is also clear that there are shortcomings that need to be addressed. For example, there are voices pointing out that the implementation of the law is currently inconsistent across different sectors. Some industries may be monitored more intensively than others, which can lead to injustices.
Consumers are also keeping an eye on the supply chain law. In particular, younger consumer groups are increasingly demanding transparency regarding the origin of products and the conditions under which they are produced. This has prompted companies to rethink their business models and consider how they can fulfill their responsibilities without experiencing sales-damaging difficulties.
Another crucial point is the role of international suppliers. Companies are not only called to account in Germany, but must also ensure that their suppliers abroad adhere to human rights standards.Experts warn that without a unified international regulation, the implementation of the law could be significantly hindered. In summary, while the supply chain law is on the right track, challenges remain. The coming months could be crucial in determining how companies and consumers deal with these issues. Therefore, the future of the law and its impact on global supply chains remains an exciting topic.
— Anita Faake, Thursday, October 31, 2024
