Experts at a briefing session on Monday pointed out that as the world moved towards stricter human rights due diligence requirements, businesses in Bangladesh will have to respond accordingly.
They also emphasized the need for pursuing growth and progress amid increased costs, which would arise out of complying with the new due diligence obligations.
Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and Bangladesh Employers’ Federation (BEF) jointly organized the briefing session on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chain at MCCI’s Gulshan office on Monday. The objective of the session was to familiarize the business community with the latest developments in Due Diligence Obligations in Germany and their implications for Bangladesh.
Recently, Germany has enacted an Act on Corporate Due Diligence Obligations in Supply Chains, while the EU has come up with a proposal for a guideline on Corporate Sustainability Due Diligence.
The German Act will come into effect in 2023, while the EU guideline was proposed in February 2022.
Md. Saiful Islam, President, MCCI pointed out that as the world moved towards stricter human rights due diligence requirements, businesses in Bangladesh will have to respond accordingly.
Ardashir Kabir, President, BEF, emphasized how the Bangladeshi employers valued their workers and were committed to protecting them.
He also praised the government for concentrating on human rights and their recent activities in pursuing those.
He, however, believed that, as a country where over 80 percent of its population worked in the informal economy, Bangladesh would benefit from introducing the due diligence obligations gradually.
Achim Tröster, the Ambassador of Germany to Bangladesh, made the keynote briefing on the German Act and the EU proposal on Due Diligence Obligations.
After the briefing, an open discussion was held where grievance handling, reporting, and the overall mechanism were discussed. There were also talks about Bangladesh’s road to GSP Plus. The Ambassador clarified that the new obligations will directly apply to the German companies. However, Bangladesh will have indirect implications owing to being the supplier country.
He also informed that German purchasers would inform their subsequent supply chain members in Bangladesh about their requirements.
Tuomo Poutiainen, Country Director, International Labour Organization, Bangladesh, praised the government for having a roadmap for change in implementing stringent levels of human rights due diligence.
He thought Bangladesh was ready to take ownership of the process of due diligence implementation, but needed to improve its reporting standards.
Tapan Kanti Ghosh, Senior Secretary, Ministry of Commerce, clarified that although the German Act will not be directly applicable to Bangladesh, it would become a factor to address when its components were incorporated in the GSP Plus incentive.
He believed Germany could help Bangladesh in complying with the
obligations.
Md. Ehsan-E-Elahi, Secretary, Ministry of Labour and Employment, mentioned the recent actions of the government in improving due diligence standards in the country.
He reiterated the government’s commitment to taking care of its working population and ensuring human rights.
