New study by the international CSR strategy consulting Systain essential sectors in Germany have to deal with bad working conditions in their supply chains. Thus, social compliance management is an important competitive factor. “This is one of the results of the study of competitive factor social compliance management”, which was published by the international CSR strategy Systain consulting on Monday. As an expert in global and complex value chains, Systain quantified work hours that occur along the entire supply chain for products for the German market in the study for the first time. While the share of risk hours (hours with an increased risk of the violation of human rights) is differentiated according to industries and the place of their origin in the supply chain. In the textile industry, the most hours of risk incurred with 3.4 billion hours of risk, but also in other sectors of the economy, they are significant, for example in the electronics industry with 1.7 billion hours of risk or in vehicle construction with 1,2 billion, none of the top 10 industries has less than 400 Million risk hours.
A comparison of individual industries makes it clear that the risk structure in the sectors is very different. Depending on the production structure are the risks in direct access of German company or deeper into the supply chain. Notwithstanding this difference, the responsibility for the potential human rights violations is increasingly attributed to the German company. A challenge is to reduce the identified social risk in the supply chain, while, at the same time but the social compliance risk management offers more than just the ability to reduce reputation risks. A collaboration can have positive effects on security of supply and quality of products with suppliers. These opportunities of social compliance management are however often not yet seen,”Torben Kal, Director social compliance at Systain stressed.