How to implement the complaints process in the Supply Chain Act with the BKMS® System

The German Supply Chain Due Diligence Act (LkSG) was enforced in Germany on January 1, 2023. It stipulates that companies with more than 3,000 employees must now comply with various due diligence requirements to ensure human rights and environmental standards along the supply chain.

Find out how the BKMS® System supports you in implementation.

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Who does the law apply to?

Effective January 1, 2023, it will apply to companies headquartered in Germany with more than 3,000 employees, including foreign companies headquartered in Germany. Starting in 2024, companies with more than 1,000 employees will also be affected by the law.

The establishment of a complaints process is one of the key requirements of the LkSG. It is intended to give people the opportunity to report human rights violations or environmental violations attributable to the actions of a supplier to the supplied company.

What requirements must be implemented for the complaints process?

A reporting system with the following requirements must be established:

Publicly accessible for complaints along the entire supply chain

Guaranteed identity protection of the reporter

Linguistic accessibility, available in all necessary languages and easily formulated

Confidentiality and independence of the person responsible for the complaints process

Guaranteed protection against reprisals

Possibility of receiving reports & discussing the facts with reporters

The German Supply Chain Due Diligence Act requires complete documentation on the implementation of due diligence in compliance with the GDPR and trade secrets:

Publicly available reports while safeguarding personal data & business secrets​

Annual report on compliance with due diligence obligations, in particular reports and follow-up measures

Seven-year retention of documentation

Annual effectiveness review of the complaints process

The due diligence obligations require that employees and suppliers are informed and trained:

Availability of the rules of procedure in writing

Provision of information about existence & accessibility of the reporting channel

Publication of who is responsible for the complaints process

How to fulfill the requirements of the complaints process with the BKMS® System

You implement a secure reporting channel along your supply chain

The BKMS® System provides a publicly accessible and certified barrier-free reporting process with the option to report anonymously. It is operated in a Tier 3+ high-security data center and is available in more than 60 languages. In addition, the BKMS® System enables a dialog function with the reporter, including reminders for feedback deadlines.

You process incoming reports anonymously and in a tamper-proof manner

A report processing function for continuous storage and documentation of reports is integrated in the BKMS® System. You also have the option of removing sensitive data from reports and making them anonymous. Reporting and real-time statistics are also available.

You can easily communicate your actions to employees and suppliers

In the BKMS® System, you can refer to the rules of procedure on your website or list them directly in the system. You also benefit from our EQS service, which allows you to receive communication materials and participate in communication workshops.

You decide how you want to set up your reporting channel

Regardless of whether you are already using the BKMS® System in your company or intend to implement it: We offer you several options on how to handle compliance and LkSG-relevant topics in the reporting channel:

  • Option 1: You use two completely separate reporting systems for report submission and processing.
  • Option 2: You use two separate systems for report submission with a central report processing module.
  • Option 3: You useonly one reporting channel with a central report processing module.

We will support you in the implementation of the German Supply Chain Due Diligence Act complaints process. Get your demo now and see why the BKMS® System is the best solution for you!