Supply Chain Due Diligence Act (LkSG)
In January 2023, a new German law, known as the Supply Chain Due Diligence Act (LkSG, short for Lieferkettensorgfaltspflichtengesetz in German), becomes practical and applies to companies operating or trading in Germany. This eBook looks at the critical issues in the Supply Chain Due Diligence Act. The law requires businesses to manage social and environmental issues in their supply chains through more responsible business practices. The Supply Chain Due Diligence Act requires businesses to undergo significant efforts to achieve compliance.
In Part 1 of this e-Book, we will first outline the Act’s material contents and an in-depth analysis of the applicability of the Act to various corporate structures. The eBook is the collection of a series of articles in which we will take a closer look at critical issues. It addresses the question of what you can do to prepare yourself at this early stage rather than wait till later in the year.
In Part Two of the Playbook, we’ll explore what preparatory actions you can take and how an effective risk management plan can be achieved and implemented through several services, including due diligence. Global integrity due diligence investigations provides your business with the critical information it needs to make sound decisions regarding mergers and acquisitions, strategic partnerships and selecting vendors and suppliers. The level of due diligence will ensure that working with a potential i.e. trade partner will achieve your organisation’s strategic and financial goals.
Operating in the international market requires organisations to establish partnerships with numerous third parties, which supply raw materials, run business operations abroad and/or act as agents. At the same time, third parties are considered the most significant area of bribery risks for international enterprises. Under the Bribery Act 2010, British-based organisations must conduct due diligence on their third parties as the core principle of meeting the requirement of the adequate procedure.