_preventing risks at suppliers (§ 6 iv lksg)

The company must immediately take measured preventive measures if there are risks in the supply chain (§ 6 IV LkSG).

• This can be done by carefully selecting suppliers. Many suppliers have already been certified about certain risks. If a supplier does not have certification, you can get an idea on-site by visiting the supplier, conducting audits and collecting information, e.g. via questionnaires and self-disclosures.

• Developing a policy statement for suppliers can help create shared expectations. For long-term cooperation, development goals can also be defined. This has the additional advantage of increasing influence at the supplier level.

• The relationship with the supplier and its purchasing and procurement practices can also be more closely balanced on a contractual basis. Thus, it is usual to obligate the supplier to purchase only from certified suppliers. Thus, the declaration of principle extends also to the indirect suppliers. This approach is sometimes criticised because it could restrict the local company too much. In any case, one should analyse what obligations and rights can already be agreed on a contractual basis. This also includes penalties for violations of the agreed principles.

• The selection of suppliers and the design of the contractual relationship are supplemented by regular audits and establishing a monitoring system. In practice, it is helpful to make the process and the specific measures transparent so that the company is aware of the requirements. This includes creating a firm plan for when to expect which audits.

• Training and education should be considered at this point, too. Training should address the risks and clarify expectations about preventive measures. Getting everyone involved in a learning process is the most effective preventative measure.

Step 7: Non-compliance measures / corrective actions