Human rights & Audi: Taking action instead of looking the other way

Be vigilant, act reliably, don’t downplay risks: Human Rights Officer Daniel Patnaik reviews, analyzes and monitors Audi processes and activities that are relevant to human rights. A conversation about challenges, demands and his personal motivation.

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Daniel Patnaik, Audi Human Rights Officer

Mr. Patnaik, in what way are human rights an issue at Audi?

Patnaik: As a globally active car manufacturer, Audi bears a great deal of responsibility for the environment, for its own employees and for society as a whole – and therefore also for the people along the Audi supply chain who are at work for the company. We take this responsibility seriously.

We therefore consider it a matter of course to commit ourselves to respecting and observing human rights. However, we also realize: Our supply chains are complex. Risks of human rights violations do exist, and with tens of thousands of employees and suppliers, we can never rule these risks out one hundred percent. We work continuously to gain a precise understanding of the causes of risks, and then develop or refine measures to ensure that these risks do not occur in the first place – or that they can be dealt with and remedied effectively.

What does that mean for your daily work?

Patnaik: I’m the central point of contact at Audi for everything to do with human rights. My team and I review, analyze and monitor the activities of the Audi Group that are relevant to human rights. At a time when sustainability requirements are being questioned in political debates, it is more important than ever for us to examine where processes and preventive measures may need to be adjusted.

That the subject of human rights is firmly embedded in our established compliance management system is a major plus for our work.

From my perspective, it is also crucial that we create transparency regarding the fulfillment of our due diligence obligations. To this end, we report to our Board of Management and the Economic Committee, to employees, authorities and the public – to name just a few of our stakeholder groups.

Responsibility, openness, appreciation and integrity as core corporate values

What are the focal points of your work at the moment? 

Patnaik: As various sustainability requirements are being questioned at European and international levels, it is particularly important for us to act continuously. At the same time, it is essential for us to change our perspective and examine where, in the interest of our purpose – the protection of people and the environment – we can leverage synergies.

This change of perspective is a central pillar of our Audi human rights strategy – along with effectiveness and honesty. The strategy is based on the valuable work that was already done within the company before the LkSG came into effect, such as the identification and assessment of risks, the S-Rating – in other words, the sustainability rating for supplier companies – and the Supply Chain Grievance Mechanism, along with the resulting measures in the subsidiaries of the Audi Group. On this solid foundation, we are preparing for future legal requirements. And we’re enhancing our processes so that we can identify and resolve conflicting goals at an early stage based on a realistic view.

Daniel Patnaik brings more than 25 years of international experience as a company lawyer for Audi and Volkswagen to the role of Human Rights Officer. He reports directly to the Audi Board of Management.

Daniel Patnaik, Audi Human Rights Officer

Audi is well equipped to meet the requirements of due diligence legislation. What needs to be considered in light of the postponement of the European Supply Chain Directive (Corporate Sustainability Due Diligence Directive, CSDDD)?

Patnaik: Don’t let up! The German Supply Chain Due Diligence Act (LkSG) remains in force, even though the reporting obligation has been suspended. It seems as if the CSDDD will be very similar in content to the LkSG. The deadline by which EU Member States must transpose the CSDDD into national law ends in July 2028 and will likely be implemented through an amendment to the LkSG. The central question is: Which measures can we take to appropriately deal with – and ideally solve – which problem at which stage in which supply chain?

The complex, multi-layered nature of our supply chains means that we need to use the right tools for each risk and each problem. This is what the CSDDD calls for. Only then can we act appropriately at all stages of the value chain. This is a major challenge, but it also shows just how much positive influence our brand group is able to exert: For some time now, we have required more than 12,300 direct suppliers in 59 countries to accept our Code of Conduct for Business Partners and to pass it on to any subcontractors.

This Code of Conduct sets out our fundamental requirements with regard to human rights and the environment – as an unalterable part of our contracts. For the past five years, on the initiative of Audi Procurement, we have been using the sustainability rating for suppliers mentioned earlier, which forms the basis for a business relationship and verifies compliance with the Code of Conduct even before the contract is awarded. In addition, we have mandatory risk-based training courses on human rights and the environment. This action area is huge and will never be completed. It also requires a change in attitude and a focus on the people who are affected by our actions.

It goes without saying that we are committed to respecting and observing human rights and to taking as much responsibility as we possibly can.

Daniel Patnaik, Audi Human Rights Officer

Is the fact that Audi is a member of the Volkswagen Group an advantage in any way?

Patnaik: It’s a big advantage because we can take a joint strategic approach. One example of Audi’s contribution is its lead role in the procurement of aluminum. The reason behind this is that we have many years of experience in lightweight construction. Just think of the industry’s first-ever all-aluminum body, which we launched on our Audi A8 back in 1994. And that doesn’t just apply to aluminum. Another 18 risk raw materials have been identified in the Volkswagen Group, and there is a report on risk mitigation activities.

Not just demanding human rights, but standing up for them

Now that we’ve covered the professional side of things, I’d like to ask you a personal question: What motivates you to stand up for human rights? 

Patnaik: The foundation stone was laid many years ago. During my law studies, I had the chance to attend a meeting of the Human Rights Commission in Geneva. The discussions and commitment I witnessed there made a lasting impression. The topic has stayed close to my heart throughout the 25-plus years I’ve spent as a company lawyer at Audi and Volkswagen. So my work as Human Rights Officer at Audi now brings me full circle. That’s one reason.

And the other? 

Patnaik: When I was young, I traveled to India with my father, where he was very actively involved in educational projects. Through these projects, I came into contact with workers who hewed blocks of stone under the most adverse conditions to make gravel for use in road construction – adults as well as children. I saw and learned a lot of things at the time that still move me today. The fundamental rights that we have as European citizens – and that we often take for granted – are not necessarily enjoyed by people in other regions. That’s something we have to be aware of as a globally active company. And doing something about this is what drives me.

Guiding principles of action

More details

Audi has signed the Universal Declaration of Human Rights, the principles of the International Labor Organization (ILO) and of the OECD, the principles of the Rio Declaration on Environment and Development and the UN Convention against Corruption. In addition, after a break of several years, the company once again joined the UN Global Compact, the world’s largest initiative for sustainable corporate governance, in March 2022. This membership in one of the most active platforms for dialogue among industry, civil society and politics is an important pillar of stakeholder management for Audi.

At Audi, the Volkswagen Group Essentials and the Audi corporate values – trust, responsibility, courage and excitement – constitute the fundamental values and foundation of our corporate culture.

The guiding behavioral principles for the Audi Group’s employees are described in the Code of Conduct. The Code of Conduct supports employees in their daily duties in the company. It provides guidance, advice and support on correct behavior at the workplace, as a business partner and as a member of the company. The Code of Conduct is binding for every employee, regardless of his or her position in the hierarchy.

The Code of Conduct provides clear rules on correct conduct in a transparent and easily understood form and is constantly made accessible to all employees. The emphasis is on dialogue and exchange. Practical examples illustrate the individual subject areas and help employees apply the rules.

In addition, the Code of Conduct for Business Partners, which contains key requirements relating to human rights and environmental protection, applies. It has been an integral part of the contracts between Audi and its business partners for many years.

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