RESPONSIBILITY IN SUPPLY CHAINS
Responsibility in Supply Chains
The German Act on Due Diligence in Supply Chains (LkSG), which became effective on January 1, 2023, aims to enhance the safeguarding of human rights in worldwide supply chains. This marks the inaugural inclusion of mandatory and consistent directives for companies to adhere to due diligence responsibilities concerning human rights within the legal framework. Starting 2024, the legislation is relevant to companies with a minimum of 1,000 employees and a principal office, administrative center, registered office, or branch office in Germany.
Due Diligence Obligations
The recently enacted Supply Chain Act serves as an encouragement for Vishay to continue its longstanding journey toward sustainable and responsible management. Our commitment to considering human rights and environmental impacts is integral to our business decision-making process.
The fundamental components of the resulting due diligence responsibilities include establishing a risk management system to identify, prevent, or minimize the risks associated with human rights violations and environmental harm. Furthermore, the Act mandates companies to implement preventive and corrective measures, establish a transparent complaints procedure, and provide regular reporting. These due diligence obligations extend to our own business operations, the activities of contracting parties, and, when necessary, the actions of additional indirect suppliers. Vishay diligently fulfills all these obligations, underscoring our dedication to upholding human rights.