German Companies to Face Fines If Suppliers Abuse Human Rights

Photographer: Krisztian Bocsi/Bloomberg
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German companies from BASF SE to Volkswagen AG risk fines if their suppliers around the world breach human rights.

Under new legislation agreed to by Chancellor Angela Merkel’s government on Friday, companies will have to ensure their partners don’t engage in harmful practices and exploitation. In addition to penalties, German firms can also be excluded from public contracts.