Tackling the defining challenges of the 21st century requires a collective effort across all parts of society. Neither policy-makers, nor the private sector, nor civil society can solve global challenges like climate change, the fight against poverty or the protection of human rights on their own. Alongside political action and civic engagement, it is, above all, responsible companies operating both at home and abroad that play a key role in solving society's problems. This is, for example, reflected in their compliance with internationally recognised social and environmental standards, even where the country of production has no corresponding legislation or fails to enforce it.
Promoting responsible business conduct
For many years, the Federal Government has been promoting corporate social responsibility (CSR) as part of its CSR policies with the Federal Ministry of Labour and Social Affairs being responsible for this matter within the Federal Government. In 2009, the Federal Ministry of Labour and Social Affairs established the National CSR Forum as a body in which stakeholders from all levels of society work together to address the issue of “corporate responsibility.” The forum has played a key role in supporting the Federal Government in developing a national CSR strategy. Based on its recommendations, the Federal Government adopted the CSR Action Plan in 2010. It was implemented in the following years, spreading CSR throughout Germany.
New focus: Corporate due diligence
Over the past few decades, the understanding of CSR has undergone significant changes both nationally and internationally, not least in the wake of tragic disasters at production sites of Western companies in emerging and developing countries. International requirements on corporate due diligence have become more stringent. For example, The UN Human Rights Council adopted the UN Guiding Principles on Business and Human Rights, and the OECD revised its Guidelines for Multinational Enterprises in 2011. As a result of these developments, there has been a stronger focus on corporate due diligence regarding compliance with labour, social, and environmental standards. The EU's definition of CSR, which emphasises “the responsibility of enterprises for their impact on society” (2011 EU communication), builds on theses changes in the understanding of CSR and has significantly influenced the national debate in Germany.
The Federal Government adopted the National Action Plan for Business and Human Rights in the Federal Cabinet on 21 December 2016. In the Action Plan, it anchored the responsibility German enterprises have for observing human rights in a clear framework for the first time. In 2016, the Forum set up the Business and Human Rights Working Group, which since then has been monitoring the implementation of the National Action Plan on Business and Human Rights.
Germany’s Act on Corporate Due Diligence in Supply Chains entered into force in January 2023. This is the first time that German companies' responsibility for respecting human rights in global supply chains has been regulated in a binding manner. In Europe, the EU Supply Chain Directive (Corporate Sustainability Due Diligence Directive, CSDDD) was adopted by the Council of the European Union in 2024. The Omnibus I Directive, which simplified the sustainability regulation of the CSDDD, entered into force on March 18, 2026. Member States must transpose the Directive into national law by July 26, 2028. This will then seamlessly replace the Supply Chain Act. There will be no period during which due diligence obligations are suspended.