Establish Corrective Actions for Legal Violations with suppliers
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The Supply Chain Due Diligence Act requires companies to take immediate remedial action to prevent, end or minimize imminent or actual violations.
- In your own business, you must take remedial action leading to the cessation of the violation.
- In the case of (imminent) violations in the business of your direct (in case you have “substantiated knowledge” also your indirect) supplier, if you are not in a position to stop the violation yourself, you must immediately prepare, together with the supplier, a corrective action (time) plan to minimize and prevent the violation. Make your requirements clear and offer concrete support.
- Breaking off business relations with a supplier is only envisaged as a last resort in the Act.
- The effectiveness of the preventive measures mentioned must be reviewed once a year and on an occasion-related basis.