Social Responsibility Bill

Reporting
- The due diligence process must be carried out at least once a year
- Large companies that are obliged to publish non-financial reports according to Austrian law (according to the NFRD) must include SZVG in their reports; other companies are not obliged to report
- Companies must hand over their internal documentation to certain organisations enumerated in the law (the Austrian Trade Union Federation and a consumer advocacy group called VKI are among them) if asked to do so
Due Diligence
- Companies must carry out regular checks along their supply chains to identify where risks regarding Child Labour and Forced Labour exist; the due diligence process must be carried out at least once a year
- Companies are obliged to take due diligence measures for Child Labour and Forced Labour by eliminating risks or minimizing them to the relevant extent
- The bill does not refer to the UNGPs or the OECD guidelines for multinational enterprises; the commentary to the bill mentions the UNGPs
- Includes risk analysis, follow-up measures and stakeholder involvement
- Companies are not required to establish an “early warning system”
- Companies are not required to define in advance how violations or complaints will be dealt with
Other
- Internal documentation is required

Own Operations
Subsidiaries
Direct Suppliers
Indirect Suppliers
- The proposal seeks to cover the entire supply chain
- The risk analysis must be carried out “in an appropriate manner”, the appropriateness depending on various factors laid down by law
Full Value Chain

Large Companies
SMEs
Applies to all companies that place products on the market in Austria that meet at least two out of following three criteria:
10 million euros annual turnover
5 million euros total assets
50 employees
The bill covers SMEs as defined in EU law
All sectors
- Specifically covers the garment industry (including shoes and textiles)

Monitoring
Administrative Sanctions
Other
- Seeks to establish a “Corporate Social Responsibility Fund” through which organizations entitled to file civil actions against companies based on the SZVG are eligible to receive financial support by the fund, as well as corporations and individuals that contribute to corporate social responsibility in Austria

Civil Liability
Facilitating Access to Justice
Other
Certain organizations enumerated in the law (the Austrian Trade Union Federation and a consumer advocacy group called VKI are among them) are entitled to file civil actions against companies. If successful, the civil action will result in:
(1) a ban of placing on the market of the product and/or
(2) a skimming of excess profits (the money goes towards the “Corporate Social Responsibility Fund”)