SlideShare a Scribd company logo
1 of 6
Download to read offline
CHAIN ACT
GERMAN SUPPLY
WHAT DOES THIS MEAN FOR INDIA?
Introduction of GSCA is an affirmative legislative step by the
German Parliament to identify and assess environmental, social
and governance (“ESG”) issues, including potential human rights
violation within their supply chains (direct and indirect and across
jurisdictions), and establish effective risk management systems.
The basis of the Action Plan and the new national requirements is
the due diligence standard of the 2011 UN Guiding Principles on
Business and Human Rights.
INTRODUCTION
1. ensuring that the suppliers act in compliance with the parameters set
out by GSCA.
2. respecting human rights and environmental obligation throughout the
supply chain.
3. establishing risk management system and regular risk analyses.
4. adopting standard policy statement and preventive measures within
the own business vis-a vis suppliers.
5. establishing complaints procedure and regular reporting requirement.
IN-SCOPE COMPANY’S
DUTY OF CARE AND OBLIGATION
1. Termination of contract leading to direct business loss.
2. Reputational risk and loss of Germany based business opportunities.
3. Increased contractual risks including higher indemnity exposure.
4. Requirement of enhanced director & officers insurance and other
insurance policy cover.
5. Cost impact at multiple levels- compliance, ongoing standard
operating procedures, risk management tools.
6. Exclusion from low cost financing.
7. Loss of competitiveness vis a vis suppliers from other countries.
IDENTIFIED RISKS FOR DIRECT AND INDIRECT
SUPPLIERS TO GERMAN COMPANIES
1. Introduction of a self-certification mechanism for validating compliance
by Indian suppliers within the ambit of due diligence which gives comfort to
both the countries.
2. Mandatory gap analyses in supply chain.
3. Mapping of Indian law to the requirements of GSCA.
4. Infrastructure support to MSME sector in India to meet the GSCA
requirement
EXPECTATION FROM INDIAN
GOVERNMENT
FOR MORE INFORMATION VISIT
www.khaitanlegal.com

More Related Content

Similar to Best Advocates in Mumbai - Khaitan Legal Associates.pdf

Compliance2business - company presentation and services
Compliance2business - company presentation and servicesCompliance2business - company presentation and services
Compliance2business - company presentation and services
compliance2business
 
617L17_S Int Compliance, Legal Risks and Corp Integrity
617L17_S Int Compliance, Legal Risks and Corp Integrity617L17_S Int Compliance, Legal Risks and Corp Integrity
617L17_S Int Compliance, Legal Risks and Corp Integrity
Humera Akram
 
European network for workplace health promotion presentation
European network for workplace health promotion presentationEuropean network for workplace health promotion presentation
European network for workplace health promotion presentation
Alberto Mico
 
Flavio fabiani case study reconciling business communication with sustainab...
Flavio fabiani case study   reconciling business communication with sustainab...Flavio fabiani case study   reconciling business communication with sustainab...
Flavio fabiani case study reconciling business communication with sustainab...
Flavio Fabiani
 

Similar to Best Advocates in Mumbai - Khaitan Legal Associates.pdf (20)

GDPR & corporate governance: The Role of Internal Audit and Risk Management O...
GDPR & corporate governance: The Role of Internal Audit and Risk Management O...GDPR & corporate governance: The Role of Internal Audit and Risk Management O...
GDPR & corporate governance: The Role of Internal Audit and Risk Management O...
 
Allianz construction (part two) - Legislation, Risk Management and Insurance
Allianz construction (part two) - Legislation, Risk Management and InsuranceAllianz construction (part two) - Legislation, Risk Management and Insurance
Allianz construction (part two) - Legislation, Risk Management and Insurance
 
Compliance2business - company presentation and services
Compliance2business - company presentation and servicesCompliance2business - company presentation and services
Compliance2business - company presentation and services
 
Respect brings its own rewards
Respect brings its own rewardsRespect brings its own rewards
Respect brings its own rewards
 
Corporate Environmental Management – A New Paradigm Emerges
Corporate Environmental Management – A New Paradigm EmergesCorporate Environmental Management – A New Paradigm Emerges
Corporate Environmental Management – A New Paradigm Emerges
 
ICC Guide to Responsible Sourcing
ICC Guide to Responsible SourcingICC Guide to Responsible Sourcing
ICC Guide to Responsible Sourcing
 
Corporate Sustainability Due Diligence Directive (CSDDD or the EU Supply Chai...
Corporate Sustainability Due Diligence Directive (CSDDD or the EU Supply Chai...Corporate Sustainability Due Diligence Directive (CSDDD or the EU Supply Chai...
Corporate Sustainability Due Diligence Directive (CSDDD or the EU Supply Chai...
 
Best practice for anti corruption
Best practice for anti corruptionBest practice for anti corruption
Best practice for anti corruption
 
IEH_Due diligence_2013_web
IEH_Due diligence_2013_webIEH_Due diligence_2013_web
IEH_Due diligence_2013_web
 
Short-and Medium-term ESG Liabilities for Medium-sized companies
Short-and Medium-term ESG Liabilities for Medium-sized companiesShort-and Medium-term ESG Liabilities for Medium-sized companies
Short-and Medium-term ESG Liabilities for Medium-sized companies
 
Mastering Supply Chain Sustainability: Where Does ESG Fit In?
Mastering Supply Chain Sustainability: Where Does ESG Fit In?Mastering Supply Chain Sustainability: Where Does ESG Fit In?
Mastering Supply Chain Sustainability: Where Does ESG Fit In?
 
617L17_S Int Compliance, Legal Risks and Corp Integrity
617L17_S Int Compliance, Legal Risks and Corp Integrity617L17_S Int Compliance, Legal Risks and Corp Integrity
617L17_S Int Compliance, Legal Risks and Corp Integrity
 
The role of employers in promoting the employability and employment of people...
The role of employers in promoting the employability and employment of people...The role of employers in promoting the employability and employment of people...
The role of employers in promoting the employability and employment of people...
 
European network for workplace health promotion presentation
European network for workplace health promotion presentationEuropean network for workplace health promotion presentation
European network for workplace health promotion presentation
 
Flavio fabiani case study reconciling business communication with sustainab...
Flavio fabiani case study   reconciling business communication with sustainab...Flavio fabiani case study   reconciling business communication with sustainab...
Flavio fabiani case study reconciling business communication with sustainab...
 
Report: Chambers New Norm - Adapting to Business Needs
Report: Chambers New Norm - Adapting to Business NeedsReport: Chambers New Norm - Adapting to Business Needs
Report: Chambers New Norm - Adapting to Business Needs
 
Restoring reputation in the wake of internal corruption: Siemens and the mana...
Restoring reputation in the wake of internal corruption: Siemens and the mana...Restoring reputation in the wake of internal corruption: Siemens and the mana...
Restoring reputation in the wake of internal corruption: Siemens and the mana...
 
Curb it balance it emission management &cc using sap (2)
Curb it   balance it emission management &cc using sap (2)Curb it   balance it emission management &cc using sap (2)
Curb it balance it emission management &cc using sap (2)
 
INTANGIBLES
INTANGIBLESINTANGIBLES
INTANGIBLES
 
The Ripple Effect of EU Disclosures Regulation in Financial Services Sector
The Ripple Effect of EU Disclosures Regulation in Financial Services SectorThe Ripple Effect of EU Disclosures Regulation in Financial Services Sector
The Ripple Effect of EU Disclosures Regulation in Financial Services Sector
 

Recently uploaded

一比一原版美国加州大学戴维斯分校毕业证(ucd毕业证书)学位证书仿制
一比一原版美国加州大学戴维斯分校毕业证(ucd毕业证书)学位证书仿制一比一原版美国加州大学戴维斯分校毕业证(ucd毕业证书)学位证书仿制
一比一原版美国加州大学戴维斯分校毕业证(ucd毕业证书)学位证书仿制
afukemk
 
一比一原版(TUOS毕业证书)谢菲尔德大学毕业证成绩单原件一模一样
一比一原版(TUOS毕业证书)谢菲尔德大学毕业证成绩单原件一模一样一比一原版(TUOS毕业证书)谢菲尔德大学毕业证成绩单原件一模一样
一比一原版(TUOS毕业证书)谢菲尔德大学毕业证成绩单原件一模一样
mefyqyn
 
Termination of Employees under the Labor Code.pptx
Termination of Employees under the Labor Code.pptxTermination of Employees under the Labor Code.pptx
Termination of Employees under the Labor Code.pptx
BrV
 
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单原件一模一样
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单原件一模一样一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单原件一模一样
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单原件一模一样
mefyqyn
 
一比一原版(Indiana State毕业证书)印第安纳州立大学毕业证成绩单原件一模一样
一比一原版(Indiana State毕业证书)印第安纳州立大学毕业证成绩单原件一模一样一比一原版(Indiana State毕业证书)印第安纳州立大学毕业证成绩单原件一模一样
一比一原版(Indiana State毕业证书)印第安纳州立大学毕业证成绩单原件一模一样
mefyqyn
 
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单原件一模一样
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单原件一模一样一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单原件一模一样
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单原件一模一样
mefyqyn
 

Recently uploaded (20)

一比一原版美国加州大学戴维斯分校毕业证(ucd毕业证书)学位证书仿制
一比一原版美国加州大学戴维斯分校毕业证(ucd毕业证书)学位证书仿制一比一原版美国加州大学戴维斯分校毕业证(ucd毕业证书)学位证书仿制
一比一原版美国加州大学戴维斯分校毕业证(ucd毕业证书)学位证书仿制
 
一比一原版(TUOS毕业证书)谢菲尔德大学毕业证成绩单原件一模一样
一比一原版(TUOS毕业证书)谢菲尔德大学毕业证成绩单原件一模一样一比一原版(TUOS毕业证书)谢菲尔德大学毕业证成绩单原件一模一样
一比一原版(TUOS毕业证书)谢菲尔德大学毕业证成绩单原件一模一样
 
ORane M Cornish affidavit statement for New Britain court proving Wentworth'...
ORane M Cornish affidavit statement  for New Britain court proving Wentworth'...ORane M Cornish affidavit statement  for New Britain court proving Wentworth'...
ORane M Cornish affidavit statement for New Britain court proving Wentworth'...
 
CASE STYDY Lalman Shukla v Gauri Dutt BY MUKUL TYAGI.pptx
CASE STYDY Lalman Shukla v Gauri Dutt BY MUKUL TYAGI.pptxCASE STYDY Lalman Shukla v Gauri Dutt BY MUKUL TYAGI.pptx
CASE STYDY Lalman Shukla v Gauri Dutt BY MUKUL TYAGI.pptx
 
posts-harmful-to-secular-structure-of-the-country-539103-1.pdf
posts-harmful-to-secular-structure-of-the-country-539103-1.pdfposts-harmful-to-secular-structure-of-the-country-539103-1.pdf
posts-harmful-to-secular-structure-of-the-country-539103-1.pdf
 
Termination of Employees under the Labor Code.pptx
Termination of Employees under the Labor Code.pptxTermination of Employees under the Labor Code.pptx
Termination of Employees under the Labor Code.pptx
 
HOW LAW FIRMS CAN SUPPORT MILITARY DIVORCE CASES
HOW LAW FIRMS CAN SUPPORT MILITARY DIVORCE CASESHOW LAW FIRMS CAN SUPPORT MILITARY DIVORCE CASES
HOW LAW FIRMS CAN SUPPORT MILITARY DIVORCE CASES
 
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单原件一模一样
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单原件一模一样一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单原件一模一样
一比一原版(ASU毕业证书)亚利桑那州立大学毕业证成绩单原件一模一样
 
Dabholkar-matter-Judgement-1.pdfrefp;sdPp;
Dabholkar-matter-Judgement-1.pdfrefp;sdPp;Dabholkar-matter-Judgement-1.pdfrefp;sdPp;
Dabholkar-matter-Judgement-1.pdfrefp;sdPp;
 
IRDA role in Insurance sector in India .pptx
IRDA role in Insurance sector in India .pptxIRDA role in Insurance sector in India .pptx
IRDA role in Insurance sector in India .pptx
 
Asif_Sultan_Syeda_vs_UT_of_J_K.pdf op[ke[k
Asif_Sultan_Syeda_vs_UT_of_J_K.pdf op[ke[kAsif_Sultan_Syeda_vs_UT_of_J_K.pdf op[ke[k
Asif_Sultan_Syeda_vs_UT_of_J_K.pdf op[ke[k
 
How Can an Attorney Help With My Car Accident Claim?
How Can an Attorney Help With My Car Accident Claim?How Can an Attorney Help With My Car Accident Claim?
How Can an Attorney Help With My Car Accident Claim?
 
一比一原版(Indiana State毕业证书)印第安纳州立大学毕业证成绩单原件一模一样
一比一原版(Indiana State毕业证书)印第安纳州立大学毕业证成绩单原件一模一样一比一原版(Indiana State毕业证书)印第安纳州立大学毕业证成绩单原件一模一样
一比一原版(Indiana State毕业证书)印第安纳州立大学毕业证成绩单原件一模一样
 
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单原件一模一样
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单原件一模一样一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单原件一模一样
一比一原版(UC Berkeley毕业证书)加利福尼亚大学伯克利分校毕业证成绩单原件一模一样
 
Respondent Moot Memorial including Charges and Argument Advanced.docx
Respondent Moot Memorial including Charges and Argument Advanced.docxRespondent Moot Memorial including Charges and Argument Advanced.docx
Respondent Moot Memorial including Charges and Argument Advanced.docx
 
2024 Managing Labor + Employee Relations Seminar
2024 Managing Labor + Employee Relations Seminar2024 Managing Labor + Employee Relations Seminar
2024 Managing Labor + Employee Relations Seminar
 
(Hamad khadam ) ENGLISH LEGAL 2.0.docx
(Hamad khadam )   ENGLISH LEGAL 2.0.docx(Hamad khadam )   ENGLISH LEGAL 2.0.docx
(Hamad khadam ) ENGLISH LEGAL 2.0.docx
 
Does Apple Neurotechnology Patents Go To Far?
Does Apple  Neurotechnology Patents Go To Far?Does Apple  Neurotechnology Patents Go To Far?
Does Apple Neurotechnology Patents Go To Far?
 
Essential Components of an Effective HIPAA Safeguard Program
Essential Components of an Effective HIPAA Safeguard ProgramEssential Components of an Effective HIPAA Safeguard Program
Essential Components of an Effective HIPAA Safeguard Program
 
From Scratch to Strong: Introduction to Drafting of Criminal Cases and Applic...
From Scratch to Strong: Introduction to Drafting of Criminal Cases and Applic...From Scratch to Strong: Introduction to Drafting of Criminal Cases and Applic...
From Scratch to Strong: Introduction to Drafting of Criminal Cases and Applic...
 

Best Advocates in Mumbai - Khaitan Legal Associates.pdf

  • 1. CHAIN ACT GERMAN SUPPLY WHAT DOES THIS MEAN FOR INDIA?
  • 2. Introduction of GSCA is an affirmative legislative step by the German Parliament to identify and assess environmental, social and governance (“ESG”) issues, including potential human rights violation within their supply chains (direct and indirect and across jurisdictions), and establish effective risk management systems. The basis of the Action Plan and the new national requirements is the due diligence standard of the 2011 UN Guiding Principles on Business and Human Rights. INTRODUCTION
  • 3. 1. ensuring that the suppliers act in compliance with the parameters set out by GSCA. 2. respecting human rights and environmental obligation throughout the supply chain. 3. establishing risk management system and regular risk analyses. 4. adopting standard policy statement and preventive measures within the own business vis-a vis suppliers. 5. establishing complaints procedure and regular reporting requirement. IN-SCOPE COMPANY’S DUTY OF CARE AND OBLIGATION
  • 4. 1. Termination of contract leading to direct business loss. 2. Reputational risk and loss of Germany based business opportunities. 3. Increased contractual risks including higher indemnity exposure. 4. Requirement of enhanced director & officers insurance and other insurance policy cover. 5. Cost impact at multiple levels- compliance, ongoing standard operating procedures, risk management tools. 6. Exclusion from low cost financing. 7. Loss of competitiveness vis a vis suppliers from other countries. IDENTIFIED RISKS FOR DIRECT AND INDIRECT SUPPLIERS TO GERMAN COMPANIES
  • 5. 1. Introduction of a self-certification mechanism for validating compliance by Indian suppliers within the ambit of due diligence which gives comfort to both the countries. 2. Mandatory gap analyses in supply chain. 3. Mapping of Indian law to the requirements of GSCA. 4. Infrastructure support to MSME sector in India to meet the GSCA requirement EXPECTATION FROM INDIAN GOVERNMENT
  • 6. FOR MORE INFORMATION VISIT www.khaitanlegal.com