| Abstrakt: |
Like other mandatory Human Rights Due Diligence (mHRDD) laws, the German Supply Chain Law, the Lieferkettensorgfaltsplichtengesetz (LkSG), imposes a number of due diligence obligations on covered companies geared towards protection of human rights and the environment in the value chains of Transnational Corporations (TNCs). More specifically, as per Section 4(1) in-scope companies are expected to establish an effective and appropriate risk management system that will enable them to comply with their due diligence obligations. As part of establishing such a risk management system companies must "conduct an appropriate risk analysis... to identify the human rights and environment-related risks in its own business area and at its direct suppliers" (Sec 5. (1) LkSG). This contribution argues that a proper risk analysis is the cornerstone of an effective risk management system, and ultimately of compliance with due diligence obligations. It is therefore necessary to interrogate how covered companies carry out such risk analysis, and crucially, what sources of information they use for this purpose, as well as how they secure such information. Using the CSR Risk Check tool as an exemplar this contribution will critically analyze the pitfalls of carrying out risk analysis in ways that continue to entrench asymmetrical relations between Global North and Global South actors. [ABSTRACT FROM AUTHOR] |
