🇩🇪Germany

LkSG-Sorgfaltspflichtenkosten und Bürokratieüberhang

1 verified sources

Definition

LkSG mandates human rights officer, reporting, and due diligence, with bureaucratic costs persisting despite planned reductions; ties into compliance reviews for international trade.

Key Findings

  • Financial Impact: €50,000-200,000/year in admin overhead (human rights officer, reporting); fines up to €800,000 or 2% turnover for severe violations
  • Frequency: Annual reporting cycles; per audit
  • Root Cause: Manual due diligence and reporting under LkSG bureaucracy

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting International Trade and Development.

Affected Stakeholders

Compliance Officer, Supply Chain Manager

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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