On this page, you will find information on appropriateness and effectiveness.
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The principle of appropriateness and the corresponding requirement to implement due diligence obligations appropriately is a core principle of the Supply Chain Due Diligence Act (LkSG).
The principle of appropriateness gives companies the necessary discretion and scope of action to implement their due diligence obligations, for example when selecting and designing measures or the resources required.
In this context, no unreasonable expectation are placed on companies. The intensity of their efforts can and may vary depending on the nature and extent of their business activities, the ability to influence the party directly responsible, the severity and probability of of the occurrence of violations and the nature of the company’s causal contribution.
The principle of effectiveness arises from the fundamental objective of the LkSG to improve individual human rights protection, the human rights situation at international level and to protect the environment.
Effective measures make it possible to identify and minimise human rights and environment-related risks and to prevent, end or minimise violations of human rights or environment-related obligations.
Companies must address risks and violations effectively. To ensure this, companies are required to regularly check whether their own measures are actually achieving the desired effect and to make adjustments if necessary. Accordingly, a company's overall risk management, risk analyses and complaints procedures must also meet the requirement of effectiveness.
Companies that comply with their due diligence obligations focus on the interests of their own employees, employees within the supply chain and those who may otherwise be affected by the business activities of the company or a company in its supply chains.
The LkSG provides clear guidance on the criteria that are relevant for determining appropriateness: the nature and scope of the business activity, the company's ability to influence, the severity and probability of occurrence of risks and violations and the contribution to causation.
These criteria must therefore be taken into account when designing and reviewing risk management, identifying, weighting and prioritising risks, identifying violations, developing and implementing preventive and remedial measures and establishing an appropriate complaints procedure.
In order to help you with implementation, we offer you the Guidance on appropriateness.
