Sustainability Goals and Supply Chain Due Diligence Laws

Abstract This article discusses whether supply chain due diligence laws are a suitable instrument for goals of sustainability. It uses the German due diligence law as an example and makes recommendations for the design of European rules. The emerging evidence on the effect of trade policies in globa...

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Main Author: Felix Bierbrauer
Format: Article
Language:deu
Published: Sciendo 2022-05-01
Series:Wirtschaftsdienst
Online Access:https://doi.org/10.1007/s10273-022-3186-4
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author Felix Bierbrauer
author_facet Felix Bierbrauer
author_sort Felix Bierbrauer
collection DOAJ
description Abstract This article discusses whether supply chain due diligence laws are a suitable instrument for goals of sustainability. It uses the German due diligence law as an example and makes recommendations for the design of European rules. The emerging evidence on the effect of trade policies in global value chains suggests that, in response to such laws, firms may reorganise their supply chains away from countries that commit human rights violations. The German law, by contrast, wants firms to “Stay and Behave”, i. e. to work to improve human rights. The article discusses measures that give a “Stay and Behave” outcome its best chance.
format Article
id doaj-art-339f26dedd7f4245996bd3d37f94a040
institution Kabale University
issn 1613-978X
language deu
publishDate 2022-05-01
publisher Sciendo
record_format Article
series Wirtschaftsdienst
spelling doaj-art-339f26dedd7f4245996bd3d37f94a0402025-02-03T02:06:53ZdeuSciendoWirtschaftsdienst1613-978X2022-05-01102534434610.1007/s10273-022-3186-4Sustainability Goals and Supply Chain Due Diligence LawsFelix Bierbrauer0Center for Macroeconomic Research, Universität zu KölnAbstract This article discusses whether supply chain due diligence laws are a suitable instrument for goals of sustainability. It uses the German due diligence law as an example and makes recommendations for the design of European rules. The emerging evidence on the effect of trade policies in global value chains suggests that, in response to such laws, firms may reorganise their supply chains away from countries that commit human rights violations. The German law, by contrast, wants firms to “Stay and Behave”, i. e. to work to improve human rights. The article discusses measures that give a “Stay and Behave” outcome its best chance.https://doi.org/10.1007/s10273-022-3186-4
spellingShingle Felix Bierbrauer
Sustainability Goals and Supply Chain Due Diligence Laws
Wirtschaftsdienst
title Sustainability Goals and Supply Chain Due Diligence Laws
title_full Sustainability Goals and Supply Chain Due Diligence Laws
title_fullStr Sustainability Goals and Supply Chain Due Diligence Laws
title_full_unstemmed Sustainability Goals and Supply Chain Due Diligence Laws
title_short Sustainability Goals and Supply Chain Due Diligence Laws
title_sort sustainability goals and supply chain due diligence laws
url https://doi.org/10.1007/s10273-022-3186-4
work_keys_str_mv AT felixbierbrauer sustainabilitygoalsandsupplychainduediligencelaws