Economy for the common good calls for a strong supply chain law

Companies with a balance sheet for the common good prove that transparent supply chains are possible and beneficial.

The Austrian Economy for the Common Good continues to advocate for a European supply chain law. We have been working for years with companies oriented towards the common good that rely on transparent and sustainable supply chains and are therefore increasingly successful with consumers, employees and donors.

The agreement between the European negotiating teams in Brussels on the supply chain law in December was a crucial step. But there is a risk that the law will be blocked again a few days before its planned confirmation on February 9th, as some parties such as the FDP and the ÖVP have announced their veto. Numerous environmental protection organizations, non-governmental organizations and political representatives are urging Economics Minister Martin Kocher (ÖVP) to agree to the compromise reached in December on Friday.

A supply chain law not only improves the protection of human rights and environmental standards, it also strengthens Austria's business location. An outstanding Austrian example of exemplary practices is SONNENTOR, which has achieved excellent results in terms of public welfare and relies on suppliers that act in a socially and ecologically responsible manner. This lived transparency and responsibility has been a key success factor for Sonnentor Austria and other pioneering companies in the GWÖ for years.

SONNENTOR CSR manager Florian Krautzer explains the practice:

“We build long-term supply relationships and promote regional structures around the world. Our organic farmers grow around 200 organic herbs, spices and coffee worldwide. We source around 60% of the raw materials from direct trade. This means that we either buy directly from individual organic farms or source from farming partners that we know and where we have personally been. In this way, we avoid middlemen and unnecessary price speculation and enable suppliers to build a long-term existence.”

The company has a clear position regarding the supply chain law:

“We see the absolute necessity of these requirements for our economy. Clear rules are needed to enable companies to fulfill their responsibilities in supply chains and to further develop them in a structured and fair manner,” emphasizes Florian Krautzer.

The rejection of the Supply Chain Act is not only difficult to understand for ethical reasons, it also harms the business location, especially since future-oriented and responsible companies without such rules suffer a competitive disadvantage and are slowed down in their innovative progress.

“The supply chain law, combined with sustainability reporting, would give small and medium-sized companies in particular a clear competitive advantage. “The balance sheet for the common good does both; it could be more strongly supported by the Austrian legislature,” says Christian Felser of the common good economy. “The supply chain law would not only improve the protection of employees and the environment, but also strengthen the reputation and competitiveness of Austrian companies. “Today, doing business innovatively means protecting the planet, society and human rights and being able to document this in a binding way,” concluded Felber.

You can read more about SONNENTOR's collaboration with organic farmers worldwide here: https://www.sonnentor.com/de-at/ueber-uns/weltweit-handeln

Photo material: https://sonnentor.canto.de/b/G0F74 – Credit: © SONNENTOR

More information about the cultivation projects shown can also be found on the SONNENTOR website:

• Peru: www.sonnentor.com/peru
• Tanzania: www.sonnentor.com/tanzania
• Albania: www.sonnentor.com/weltweit-handeln