In today's globalized world, supply chains play a crucial role for companies in all industries. However, scandals and violations of human rights, environmental regulations, and working conditions in supply chains occur frequently. For this reason, supply chain laws in 2024 are more important than ever.
Why are supply chain laws necessary?
Globalization has led companies to outsource their production worldwide, resulting in complex supply chains where oversight is often lost. Supply chain laws are necessary to ensure that companies along their entire supply chain comply with social and environmental standards.
What supply chain laws exist in 2024?
In 2024, many countries have decided to enact supply chain laws to compel companies to comply with human rights and environmental regulations. These laws stipulate that companies must regularly check whether their suppliers adhere to the legal standards.
For example, the EU has introduced the Due Diligence in Supply Chains Regulation, which requires companies to check for human rights violations in their supply chain and take appropriate measures. Similar laws are also being planned or already in effect in the USA and other countries.
The impact of supply chain laws
The implementation of supply chain laws has already had noticeable effects on companies. Many companies are forced to review and potentially change their supply chains to comply with legal requirements. This can lead to higher costs and increased administrative efforts, but also to a better image and increased customer loyalty.
Conclusion
Supply chain laws are essential in 2024 to make global supply chains more transparent and sustainable. Companies that do not comply with legal requirements risk not only high penalties, but also a loss of trust and reputation. Therefore, it is advisable to familiarize oneself early with the applicable supply chain laws and take appropriate measures.
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