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Supply Chains Worldwide Face New European Regulations Demanding More Responsible and Sustainable Practices.

Last December, the European Union (EU) achieved a significant milestone by agreeing on the Corporate Sustainability Due Diligence Directive (CSDDD), marking a pivotal moment in public policy regarding global corporate responsibility. Essentially, the CSDDD mandates that large European companies uphold responsible and sustainable practices in their supply chains, aiming to prevent and penalize human rights violations and environmental damage. 

While focused on European operations, this directive has far-reaching implications for global supply chains, potentially affecting American and Asian companies with commercial ties to Europe. Even companies without an EU presence may need to align with these regulations as subsidiaries or suppliers of European companies.

Countless corporations face complex supply chain situations every year. From falsified origin documentation and child labor claims to corruption- linked providers, the complexity of the average supply chain makes it hard for companies to tie up every loose end.  Supply chain compliance necessitates a multidisciplinary approach, as collaboration among professionals from various fields is crucial to meeting all legal, ethical, and operational standards. 

However, while ensuring ethical sourcing is increasingly important for companies, the value of involving investigators in supply chain compliance is not always considered. Conducting thorough due diligence is essential to ensuring that suppliers and business partners adhere to required standards. Investigators can verify the legitimacy, practices, and ethical standing of entities in the supply chain and can also assess whether suppliers respect human rights and adhere to fair labor and sustainable environmental practices. They can be instrumental in detecting and preventing fraud within the supply chain, whether this means identifying counterfeit products and falsified documentation or identifying other deceptive practices that could compromise product quality or safety. By bringing on investigative support to assist in identifying potential problems early on, companies are better able to enact measures to mitigate legal and reputational risks.

...companies of a certain size will be accountable for adverse human rights and environmental impacts involved in their value chain...

Tags

suplychain, compliance, investigations