The twenty-first century is the most globalized era in Human history. Free movements of goods and services have led to deepened economic interdependence between countries all around the world. However, economic interdependence does not automatically bring greater global prosperity. Achieving this represents a particular challenge, especially if human rights and environmental standards are to be observed in global supply chains in line with the Corporate Due Diligence. Over the past years, this has led to a clear shift in consumers demanding these standards throughout the whole production cycle. Germany, the US, France and other governments have already codified these demands into laws. More countries are following. The Friedrich Naumann Foundation for Freedom (FNF) Sri Lanka has taken this opportunity to introduce, educate, and encourage the practice of due diligence.
Sri Lankan Delegation visit to Berlin
Since 2020, FNF Sri Lanka has created awareness about the importance of Corporate Due Diligence in Supply Chains. Compliance with these standards is not only a value in itself; it is also good for business. It strengthens productivity, enhances product quality and it is crucial for exports into western markets, especially the German market with regard to the German Act on Corporate Due Diligence in Supply Chains. The act requires companies to monitor human rights and environmental risks in their supply chains. Due to the heightened interest by the local businesses, FNF Sri Lanka expedited on a visiting programme to Germany with key stakeholders of Sri Lankan Export Industry, Economists, research analysts and journalists in August 2022.
During the launch of Sustainable Supply Chain initiative in Sri Lanka
As a result of the visit to Germany, a new awareness-raising project was initiated in Sri Lanka by business representatives and the Sri Lankan government. The project raises awareness and aims to reward those companies that strive to implement Corporate Due Diligence in Supply Chains. The encouraging results in Sri Lanka have already led to similar first steps in Bangladesh and are to be extended to the entire region and worldwide in the spirit of globalization.
Logo of Sustainable Supply Chains Initiative in Sri Lanka