IMPLEMENTATION OF THE LKSG BY KIK IN BANGLADESH
The textile discounter KiK has long been subjected to severe criticism for its procurement practices. The company sources 50% of its goods from Bangladesh. Stern magazine reports on how the company is implementing the LkSG there (€); the focus is on a visit by the company's human rights officer, Jacqueline Thalmann, and CEO Patrick Zahn to Bangladesh. The article sheds light on many questions that arise when implementing the LkSG and the problems they are confronted with.
Some points:
At KiK, the sustainability department (which also includes the human rights officer) was initially located in purchasing. It now reports directly to the CEO because the company feared conflicts of interest (“It was a bit like asking the frog to drain the pond”).
KiK also relies on on-site inspections to monitor compliance with the LkSG. The human rights officer travels to Bangladesh three times a year and visits 15 factories each time. Nevertheless, it is often difficult to determine, for example, whether subcontracting has been carried out in breach of contract. The sustainability department is to be expanded from 15 to 20 employees.
The government in Bangladesh is not motivated to actually implement labor standards. The state control authority that is supposed to monitor compliance only has around a dozen inspectors. Corruption is widespread. The minimum wage in Bangladesh was recently increased to €97. A living wage would have to be twice as high. Many companies, including KiK, wrote a letter calling for a higher statutory minimum wage. But it never came. Two thirds of parliamentarians are entrepreneurs. They fear that wage increases could lead to foreign companies moving to other countries. 85% of Bangladesh's export earnings come from the clothing industry. The government is aiming to double export earnings from the clothing industry.
Companies in Bangladesh are hardly aware of the requirements of the LkSG. There is little capacity on the German side to publicise the law. The Bangladeshi government also lacks the will to support its implementation. Companies and politicians in Bangladesh are trying to improve the image of the location. They are also relying on certificates. However, the information provided is often not very meaningful.
The environmental damage caused by the textile industry is massive. Rivers are dying and Dhaka is one of the cities with the highest air pollution in the world.
To the article in Stern: