In the thyssenkrupp AG a cross-functional working group is responsible for evaluating the relevant requirements towards thyssenkrupp with regard to Human Rights and to develop recommendations for policies and processes. The working group consists of the functions Legal, Compliance, Procurement & Supply Management, Human Resources Strategy, Communications as well as Technology, Innovation & Sustainability.
thyssenkrupp has implemented several processes to support the respect for Human Rights:
International Framework Agreement
In 2015 the thyssenkrupp AG, the Group works council, the metalworkers' union IG Metall, and the global union federation "IndustriALL Global Union" entered into an International Framework Agreement (IFA) on global minimum labor standards in the Group. The IFA includes principles on occupational safety and health, opportunities for career and personal development, the right to fair pay, and the prohibition of child and forced labor and all forms of discrimination.
To record possible infringements, an online reporting system is available. All employees and third parties can use the system – with or without revealing their identity – to report cases where standards and principles are not being observed.
An International Committee with representatives from the Group Works Council, the European Works Council and the union is authorized to intervene in the event of infringements or disputes which cannot be resolved locally. In accordance with the International Framework Agreement, incoming reports will be processed in consultation between the International Committee and thyssenkrupp AG.
In the thyssenkrupp Supplier Code of Conduct (SCoC) we outline the expectations we have towards our suppliers with respect to human rights and labor conditions, health & safety, environmental protection and business ethics. We strive to only work with suppliers whose business activities fully comply with the principles of the thyssenkrupp Supplier Code of Conduct and who signed the related documents.
We regularly conduct risk analyses for our supplier base where we consider country and sector risks as well as other criteria. If this analysis shows that there is an elevated risk level regarding specific suppliers, then we strive to conduct a risk-based sustainability audit. It is one of our group wide Indirect Financial targets to conduct a minimum of 100 supplier sustainability audits annually regarding policies, management practices and performance in all topics of the thyssenkrupp SCoC. The audits are being performed by an independent and specialized audit company.
The audit results are the fundamental part of our supplier development. In case of deviations from the standard corrective action plans are defined and the supplier needs to prove that effective measures have been taken to fulfill the expectations. In case of significant findings a re-audit has to be conducted. If a supplier is not willing to implement improvement measures the consequence can lead to a termination of contract.
thyssenkrupp participates in working groups and best-practice-exchange with regard to business and human rights at econsense, the German Global Compact Network as well as several associations and organizations.