RBC Multi-Stakeholder Forum:

Due Diligence in complex value chains

How Due Diligence can be ensured in complex value chains

In addition to the UN Global Compact and the ILO Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises are among the leading international standards for responsible business conduct (RBC) in a global context. As the OECD Guidelines are anchored in international law, multinational companies are largely required to comply with them.

The National Contact Points (NCPs) are important agencies in the OECD countries for companies regarding the adoption of the OECD Guidelines and related Due Diligence Guidance as they offer a dialogue platform and provide a remedy mechanism. The importance of the Austrian National Contact Point’s work is emphasized by the Austrian foreign trade strategy. The chapter " A foreign trade policy with a focus on values" includes the goal of supporting Austrian companies to meet their entrepreneurial responsibility and highlights the Austrian NCPs role in this context.

Due diligence in complex value chains

A key term in the OECD Guidelines for Multinational Enterprises is due diligence. Under the OECD Guidelines, due diligence is understood as a process, which is used to identify, prevent and mitigate actual or potential negative effects of business activities on the environment, workers, consumers, corporate governance, bribery and human rights. By the means of a comprehensive and risk-based due diligence process, those activities with the most serious risks are identified within the business and along the supply chain.

In view of increasingly complex and globally integrated supply chains, setting up a due diligence and comprehensive risk analysis is associated with a wide range of challenges for companies. Those who purchase parts of their products from emerging and developing countries, for example, not only have to pay attention to reliability, quality and necessary capacities in terms of quantities and logistics when choosing their suppliers, but also to determine whether these meet the responsible business conduct requirements.

In light of current legislative developments, such as the EU parliament's proposal for a directive on human rights due diligence, the due diligence legislations in France, the Netherlands and the recently passed “Act on Corporate Due Diligence in Supply Chains” in Germany, the topic becomes more relevant for Austrian companies and the need for action becomes stronger.

The following questions will be at the core of the event:

• How can Austrian companies successfully implement due diligence processes along complex value chains?
• What are the challenges of setting up a due diligence process in complex value chains for Austrian companies?
• What new requirements arise here especially for procurement, but also for Austrian suppliers to international companies?
• What are the risks for companies from the potential and actual negative effects of business activities in the supply chains?

Programme

9:00 am

Welcome

Federal Minister Margarete Schramböck | BMDW

Director General Cynthia Zimmermann | BMDW

9:15 am

Keynotes (in English)

Christine Kaufmann | OECD

Peter Bartsch | Lenzing

10:00 am

Panel discussion (in English)

Peter Bartsch | Lenzing

Christoph Buchta | Semperit

Mario Micelli | Austrian National Contact Point

Githa Roelans | ILO

Margreet Vrieling | Fair Wear Foundation

11:00 am

Case Study: Responsible Procurement (in German)

Harald Nitschinger | prewave

11:45 am

Wrap-up

12:00 am

End