Everyone has rights
Companies operating globally have a responsibility and obligation to respect human rights in their business relationships and at all locations worldwide. Jasmin Lotze, Compliance Consultant for Business and Human Rights, and Sarah Schwellinger, who is responsible for ensuring compliance with sustainability criteria in the Audi supply chain, told us how Audi is putting this into practice.
“Audi has more than 40 organizations worldwide, with more than 80,000 employees and tens of thousands of business partners – so the company bears extremely great responsibility.”
Jasmin Lotze, Compliance Consultant for Business and Human Rights
Consistent respect for human rights is in keeping with the Audi self-image. It is therefore embedded in the Audi Code of Conduct, which is binding for all Audi employees. “Our goal is to take respect for human rights into account in all processes. The Audi Compliance Management System (CMS) helps us implement this systematically – for example, by creating and facilitating a compliance and integrity culture, risk analyses and raising awareness among employees and partners through training,” explains Jasmin Lotze.
Prioritizing according to risks
“In fact, the term ‘human rights’ covers a wide range of issues, including the right to health and safety at work, the right not to be discriminated against and, naturally, the prohibition of child and forced labor as well,” says Jasmin Lotze.
The globally operating automotive industry is considered a high-risk industry with respect to human rights. Audi is therefore actively involved in the “Sector Dialogue Automotive Industry” on respect for human rights in global supply and value chains – together with representatives from science, politics and civil society. For example, industry-specific guidance on the core elements of human rights due diligence was developed collaboratively within this framework and published on the BMAS website. The implementation of human rights due diligence is also relevant along the value chain.
Living a shared value system
In the age of globalization and an increasingly complex supply chain, the company influences the working conditions of employees worldwide. Sarah Schwellinger, who is responsible for compliance with sustainability criteria in the supply chain at Audi, explains: “We usually have indirect influence – sometimes even direct influence – on all people involved in the supply chain, their work, lives and families.” That is a great responsibility.
The challenges in the supply chain are great: More than 12,300 suppliers from 59 countries around the world must be integrated and managed within a shared value system. The Code of Conduct for Business Partners of the Volkswagen Group summarizes the expectations we place on our partners in the process.
S-Rating as an audit tool
The Sustainability Rating (S-Rating) is a key tool used to assess compliance with defined requirements, including those relating to human rights, working conditions, occupational health and safety, business ethics, environmental aspects and supply chain management. A positive S-Rating is generally a key prerequisite for establishing or continuing a business relationship, subject to the applicable Group internal requirements and processes.
If, for example, an on-site audit reveals that no precautions have been taken in fire protection, that fire extinguishers were defective or incorrectly installed, or that escape routes are blocked, this leads to a negative rating. “This is no small matter – it endangers people’s lives in an emergency,” explains Sarah Schwellinger. Sources of danger like these must be eliminated immediately. Appropriate documentation of this must be provided. If these shortcomings cannot be rectified, Audi may terminate its cooperation with the supplier. “It is not just a matter of revealing problems but also of solving them together,” she clarifies.
“It is important that those who are affected or their representatives are also present in these initiatives.”
Tackling shortcomings together
To embed human rights in the supply chain, Audi relies not only on contractual requirements, risk-based assessments and review processes, but also on alliances and collaboration with other companies, civil society and rights holders.
That is why Audi is a member of the Aluminium Stewardship Initiative (ASI), which is concerned with protecting human rights in the mining of bauxite, for example. After all, the automotive industry is dependent worldwide on raw materials such as bauxite, lithium or copper, which are mined in regions with weak government regulation, among other things. In a network of renowned companies, solutions are developed and measures are adopted that can only be jointly implemented. “It is important that those who are affected or their representatives are also present in these initiatives,” explains Sarah Schwellinger. “At the end of the day, our activities must focus on listening to the concerns and perspectives of potentially affected groups and taking them into account when assessing risks and defining appropriate measures. At ASI, representatives of indigenous peoples are an integral part of the organizational structure. But communication with trade union representatives also plays an important role,” explains Sarah Schwellinger.
Risks and indications of potential violations
Despite extensive guidelines and control measures, risks or violations of human rights or environmental standards can arise in complex supply chains. “We can’t monitor everything. For this reason, it's important to us to remain open to potential problems in our supply chains,” adds Sarah Schwellinger. Indications of potential violations of the Code of Conduct for Business Partners can be reported via the Audi Whistleblower System – this option is open to anyone and can also be used anonymously Together with a team of experts, we then search for appropriate measures and solutions on a case-by-case basis.
Jasmin Lotze is well aware that all these measures to respect human rights within the context of corporate responsibility require long-term and relentless commitment: “As a globally active company, we must of course ensure that we design processes in our own sphere of activity in such a way that they are in line with international conventions for the protection of human rights. Ultimately, it is a matter of putting the focus on the human being and on respecting their rights.”
Audi offers the following options for submitting complaints and reporting potential violations of human rights:
