How do you future-proof social compliance management in the supply chain?

“In short, the anchoring of human rights and sustainability goals are taking place systematically.”
This is where social compliance management comes in.

Why does social compliance management matter?

Companies are increasingly being called upon to protect human rights and comply with ethical and social standards within their own company and throughout their end-to-end supply chains.

For example, the German Supply Chain Act will oblige companies with 3,000 or more employees to monitor the protection of human rights, including those of direct and indirect suppliers, and to remedy risks as of 2023. In France, the USA, and the Netherlands, there are already far-reaching rules in place, and the EU will soon issue corresponding directives.

In short, the anchoring of human rights and sustainability goals are taking place systematically. This is where social compliance management comes in. Many companies have already voluntarily taken measures and implemented social compliance management, not only to meet the legally prescribed rules, but also to satisfy consumers who are increasingly concerned with human rights and justice. Companies that act when it is too late or when human rights abuses are exposed often suffer large losses in income.

What are the challenges?

Companies must record and assess compliance with human rights and sustainability standards and systematically reduce risks of violating them. Many regulations put the duty of care on direct suppliers abroad and a graduated duty of care for indirect suppliers.

Failure to comply with existing regulation can result in severe penalties. But, more importantly, the brand reputation and its associated customer trust will incur much more damage.

Non-governmental organisations (NGOs) can help affected workers or residents in supplier regions file complaints and lawsuits through so-called process partnerships, drawing public attention to the breach of duty of care.

What needs to be done?

Companies should not be reactive but rather proactive to be among the market leaders in social and sustainability compliance management. MzN supports companies (further) develop their social and sustainability compliance management approach as well as risk assessment and avoidance measures.

What we do

  • In-depth risk analysis on ESG, human rights and sustainability issues
  • Creation of an action plan
  • Systematic assessment of the risks in the supply and value chain on site
  • Business Partner Compliance Management
  • Systematic reduction of the risk of breach of duty of care, including through compliance due diligence
  • Identification of improvement opportunities for sustainability
  • Assistance with the preparation of non-financial reports
  • Creation and implementation of employee training courses on ESG, sustainability and social compliance worldwide
  • Development of a long-term cooperation with NGOs for better, more credible and sustainable sustainability management
  • Provision of reports, the latest research materials and best practice in the area of ​​social compliance management

Why choose MzN?

The trend towards the ESG and the sustainability expectations of consumers and regulatory pressures have intensified.

Sustainability and human rights-related risks in the supply chain can have fatal legal, as well as reputational, repercussions.

MzN helps companies around the world to recognise, record and minimise these risks and thus ensure sustainable success. Thanks to our extensive experience, especially in developing countries, together with the United Nations and NGOs, MzN is your reliable partner when it comes to social compliance management.

Would you like to know more? Send us an email.