Germany on Wednesday took a step towards forcing companies to take responsibility for any labor or environmental abuses in their global supply chain. A new law (Lieferkettengesetz in German) allows for hefty fines starting at several hundred thousand euros if their contractors abroad are found to breach human rights or environmental rules. The fines go up to two percent of the company’s annual revenues if they exceed 400 million euros ($484 million). The companies are held responsible for every step of the way: from the raw materials to the finished product. “This law protects workers from exploitation across sprawling supply chains and protects human rights across the world,” Finance Minister Olaf Scholz said on Wednesday, adding “In future, it will be clear that ‘Made in Germany’ also means respect for human rights.” The SPD-run development and labor ministries initially wanted the law to also target smaller companies, but backed down in the face of strong opposition from the CDU-led economy ministry and industry voices. Responsibility for the entire product A typical bar of chocolate costs a mere €0.80 ($0.91) at a German supermarket. Many of these sweets, however, are produced using child labor. Two decades ago, the University of Chicago launched a research… Read full this story
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