Companies are increasingly being called upon to protect human rights and comply with ethical and social standards within their own company and throughout their end-to-end supply chains.
For example, the German Supply Chain Act will oblige companies with 3,000 or more employees to monitor the protection of human rights, including those of direct and indirect suppliers, and to remedy risks as of 2023. In France, the USA, and the Netherlands, there are already far-reaching rules in place, and the EU will soon issue corresponding directives.
In short, the anchoring of human rights and sustainability goals are taking place systematically. This is where social compliance management comes in. Many companies have already voluntarily taken measures and implemented social compliance management, not only to meet the legally prescribed rules, but also to satisfy consumers who are increasingly concerned with human rights and justice. Companies that act when it is too late or when human rights abuses are exposed often suffer large losses in income.