What is OEKO-TEX® RESPONSIBLE BUSINESS?
OEKO-TEX® RESPONSIBLE BUSINESS is a management tool to meet due diligence requirements in the textile and leather industry. It certifies the management system of a company with a step-by-step approach to integrating human rights and environmental criteria into their management processes, allowing them to fulfil their due diligence obligations along their supply chains and identify risks at an early stage. It takes a step back from the production process and looks at whether the company has done everything in its best abilities to secure due diligence throughout the whole supply chain. The product is based on 7 modules.
What were the reasons that motivated OEKO-TEX® to create the RESPONSIBLE BUSINESS certification?
The UN Guiding Principles state that businesses have an explicit responsibility to respect human rights throughout their supply chain. They should “seek to prevent or mitigate negative human rights impacts that are directly linked to their operations, products or services by their business relationships, even if they have not contributed to those impacts”. Some argue that no treaty is needed, pointing out that the UN Human Rights Council already endorsed the UN’s Guiding Principles on Business and Human Rights in 2011. However, the reality is that governments and businesses have failed to comprehensively implement the guiding principles.
In February 2022 the EU adopted a proposal for a directive on corporate sustainability due diligence. The proposal aims to foster sustainable and responsible corporate behaviour throughout global value chains, which is based on the UN Guiding Principles and will become binding for EU member states.
A first step that is now really binding is the German Supply Chain Act, which has been in force since 1 January 2023. This legislation obliges German companies with more than 1’000 employees to implement due diligence in their whole supply chain. If the legal requirements are not met, large fines can be imposed as a consequence.
Many other countries have also recognised the importance of due diligence and anchored it in their laws. As a result of those developments, it became clear that OEKO-TEX® had to offer a solution that prepares and supports companies to fulfil these requirements.
How is RESPONSIBLE BUSINESS different from OEKO-TEX® STeP?
STeP, with its 6 modules, looks at how a facility manages its production processes, such as chemical management amongst others. In contrast, RESPONSIBLE BUSINESS takes a bird's eye view of the whole supply chain, so it complements the OEKO-TEX® portfolio very nicely.
Is RESPONSIBLE BUSINESS only for brands and retailers?
No, it is available for all businesses, but for the time being companies based in Germany or producing goods for the German market with more than 1000 employees are the main target group due to the German Supply Chain Act.
What are the benefits of RESPONSIBLE BUSINESS?
By completing a detailed assessment, companies can identify and improve potential weak spots. After a successful certification process, the company will receive a certificate showing their efforts and due diligence performance. This certification also serves as promotion of customer and supplier confidence. Companies can then use the certification and the RESPONSIBLE BUSINESS label to communicate their due diligence efforts in a transparent and credible way. The label can be displayed on all marketing material.
- Structured approach - as it’s a complex subject and substantial time and effort are needed to integrate the due diligence requirements into the company and into the management processes, RESPONSIBLE BUSINESS provides a very structured approach which facilitates the whole process.
- Keep up to date - legal requirements are constantly changing in terms of updates and legal compliance regarding EU policies. With RESPONSIBLE BUSINESS companies can automatically keep up to date with these changes.
- Reporting - RESPONSIBLE BUSINESS certification makes reporting to the authorities much easier.
- Transparent & credible communication - RESPONSIBLE BUSINESS makes it possible to communicate that the company has implemented due diligence through a independent and trustworthy certification in a transparent and credible way.
What are the main challenges of RESPONSIBLE BUSINESS?
Most companies are familiar with the topic of due diligence, however it can be a major challenge to implement. Often companies either do not know the current (legal) requirements, lack documentation, or do not know where to start in order to tackle this complex topic. It is often still given too little importance.
Tips on how to begin:
- Start with the self-assessment to see where your company stands and what still needs to done.
- Take a look at the implementation manual which comes with the self-assessment. It serves as a guidance on how to tackle each of the modules including helpful examples and best practice cases.
- Before beginning with the certification process, we recommend that any open points which have been identified in the self-assessment are resolved, and that all the necessary documentation is ready.
How is the cost of RESPONSIBLE BUSINESS certification structured?
Apart from fixed costs such as the certificate fee for 3 years, the final price is based on variable costs for the assessment evaluation, the on-site audit and the final report evaluation. While the certification is valid, a compliance audit is mandatory every 2nd and 3rd year, which is expected to make up around 50% of the initial certification costs.
The variable costs can be influenced by the size of a company but also where they stand in the implementation and their documentation of due diligence. Have they already begun with a risk analysis and implementation of appropriate actions, do they already have a complaint mechanism provided, and are their processes are well structured and documented? In this case certification will be smoother, faster and more cost-effective.
In addition to the certification, RESPONSIBLE BUSINESS offers a modular set-up which also gives a company the opportunity to just access the self-assessment questionnaire to evaluate its current status quo. An unverified report (without on-site audit) is issued by the institute. It is not intended for external communication but is a good starting point for companies who are new to due diligence.
Since this year, TESTEX has a new cost saving option: If a company is STeP certified and wants to apply for RESPONSIBLE BUSINESS, the certification fee for RESPONSIBLE BUSINESS will be considerably reduced. The same applies vice versa.
Where can you apply for RESPONSIBLE BUSINESS certification?
Fill out the simplified application form on our website where, in a first step, we only need your contact details and then we will be happy to get in touch with you.