"Supply chain law is a first step"
Economist Laura Marie Edinger-Schons from the University of Mannheim sees the new supply chain law as an opportunity for the "Made in Germany" label.
Mannheim (dpa/lsw) - Mannheim University economist Laura Marie Edinger-Schons sees the new supply chain law as an important contribution to human rights compliance. She admits that the law in Germany is less consistent than in other countries, such as France. However, the regulation passed by the Bundestag on Friday does constitute a move from voluntary self-regulation by companies to a legal obligation. "It is a first step - and an important one," said the researcher.
In Edinger-Schons' view, it also offers opportunities for business. Unethical practices and the resulting scandals damage not only the companies responsible, but the entire economy. By focusing more on human rights, climate protection and sustainability, however, the researcher argues that the "Made in Germany" label could once again have a positive impact.
The law will apply from 1 January 2023, initially to companies with more than 3,000 employees - and from 2024 onwards also to companies with more than 1,000. According to statistics, there are around 2,890 companies in Germany with 1,000 or more employees. Smaller medium-sized companies will not be affected.
More about the supply chain legislation