Recommended Actions for the Strategic Planning and Controlling in Companies affected by the German Supply Chain Due Diligence Act

Abstract

In today's economy, nearly half of global trade happens in Global Value Chains, which Multinational Enterprises lead. With the growing awareness of the underlying asymmetrical governance and the negative impacts on society and the environment, more and more states follow the proposal of international organisations to establish public governance solutions. With the Act on Due Diligence Obligations in Supply Chain, Germany passed a due diligence policy that has the potential to impact and steer businesses within Global Value Chains. This thesis aims to provide recommended strategic actions for affected companies. For this purpose, the following research question is posed: How should the strategic planning and controlling in companies react to the act on due diligence obligations in supply chains? In order to answer the research question, a qualitative research approach was conducted. The qualitative study showed that the Act on Due Diligence Obligations in Supply Chains is a regulation that companies should not only comply with but anchor in their core business strategy. The anchoring of due diligence obligations makes it possible to profit from a broad range of positive financial and non-financial effects sustainable supply chains generate.