How are companies approaching ambiguous legal requirements in their global supply chains? – Risk management & sector-specific approaches

Abstract

In light of increasing mandatory Human Rights Due Diligence (mHRDD), this study examines how companies navigate ambiguous legal obligations under the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG). Through a qualitative single case study of the implementation of the LkSG’s living wage requirements by German firms, drawing on interviews, document analyses and conference observations, we find that some companies collaborate with stakeholders and implement pilot programmes, while others adopt minimal compliance. The findings show that legal ambiguity gives flexibility for tailored solutions but also allows superficial measures, emphasising the need for clearer legal guidance and sector-specific support.