Businesses here are asked to comply with human rights due- diligence requirements as countries in Europe are ratifying corporate obligations in supply chains on this score.
The call came from a multi-stakeholder briefing session jointly hosted by Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and Bangladesh Employers' Federation (BEF) on 'Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chain' at MCCI's Gulshan office on Sunday evening.
"The objective of the session was to familiarize the business community with the latest developments in Due Diligence Obligations in Germany and their implications for Bangladesh," the MCCI stated in a press release issued Monday.
Recently, Germany enacted a law on Corporate Due Diligence Obligations in Supply Chains, while the EU came up with a proposal for a guideline on Corporate Sustainability Due Diligence. The German Act will come into effect in 2023, while the EU guideline was proposed in February 2022.
MCCI president Md. Saiful Islam pointed out that as the world moved towards stricter human rights due-diligence requirements, businesses in Bangladesh would have to respond accordingly.
He also emphasised the need for pursuing growth and progress amid increased costs which would arise out of complying with the new due-diligence obligations.
President of BEF Ardashir Kabir emphasised how the Bangladeshi employers valued their workers and were committed to protecting them.
He also praised the government for concentrating on human rights and their recent activities in pursuing those. He, however, believes that, "as a country where over 80 percent of its population work in the informal economy, Bangladesh would benefit from introducing the due-diligence obligations gradually".
Ambassador of Germany in Bangladesh Achim Tröster made the keynote briefing on the German Act and the EU proposal on Due Diligence Obligations.
After the briefing, an open discussion was held where grievance handling, reporting, and the overall mechanism were discussed. There were also talks about Bangladesh's road to GSP Plus, after its graduation from the LDC club.
The German envoy clarified that the new obligations would directly apply to the German companies. However, Bangladesh will have indirect implications owing to being the supplier country.
He also informed that German purchasers would inform their subsequent supply-chain members in Bangladesh about their requirements.
Country director of the International Labour Organization, Bangladesh, Tuomo Poutiainen praised the government for having a roadmap for change in implementing stringent levels of human rights due diligence. He thought Bangladesh was "ready to take ownership of the process of due-diligence implementation, but needed to improve its reporting standards."
Senior secretary at the Ministry of Commerce Tapan Kanti Ghosh clarified that although the German Act would not be directly applicable to Bangladesh, it would become a factor to address when its components were incorporated into the GSP- Plus incentive.
He believes Germany could help Bangladesh in complying with the obligations.
Secretary, Ministry of Labour and Employment, Md. Ehsan-E-Elahi mentioned the recent actions of the government in improving due-diligence standards in the country.
He reiterated government's "commitment to taking care of its working population and ensuring human rights".
The event ended with a vote of thanks from Mr Kamran T. Rahman, Senior Vice-President, MCCI.
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