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. 

Take corrective actions into your own hands in collaboration with your suppliers.

Share checklists with needed documentation with your business partner to ensure quick issue resolution.

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Manage progress of all discuss remedial measures via shareable boards and tasks.

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