Human rights
We have established a process to fulfill our human rights due diligence. The starting point of our due diligence processes is our Human Rights Declaration. It expresses our values and our attitude towards human rights and explains how we implement our duty of care.
The United Nations' Guiding Principles on Business and Human Rights (UNGPs) were adopted by the United Nations in 2011 and provide the framework for corporate responsibility regarding human rights. The Otto Group has established its due diligence process in accordance with the UNGPs.
"The Otto Group is committed to safe working conditions and promotes a working culture that values diversity and respect. We collaborate with various partners to protect human rights, continuously work to improve the situation of people at our locations and in our supply chains, and optimize our business processes to fulfill our human rights due diligence obligations.“
Petra Scharner-Wolff, CEO of the Otto Group
Our human rights due diligence process
Declaration
The Human Rights Declaration of the Otto Group defines our approach to respecting human rights within our companies and throughout our value chains. Upholding human rights is an integral part of our business practices. It is our responsibility, and that of our business partners, to work together to ensure compliance with them. Our Declaration is based on internationally recognised reference instruments, including the United Nations Universal Declaration of Human Rights (UN-UDHR). It also provides an overview of the key processes we have implemented across the Otto Group to fulfil our human rights due diligence obligations.
Risk analysis
We regularly analyze and identify potential risks and violations of human rights throughout our entire value chain. To do this, we use various information sources to assess risks based on their expected severity and likelihood of occurrence: in addition to the results from our strategic materiality analysis and various risk indicators, we also consider information from our Group companies as well as insights and findings from programs in the supply chains. Furthermore, we engage in dialogue with civil society and political players, other companies, associations, and trade unions, primarily within the framework of multi-stakeholder initiatives. A data-driven approach enables us to derive measures and decisions and to track the development of working conditions.
As part of the risk analysis, we identify and prioritize the so-called "salient issues," which are defined as particularly severe risks. For the Otto Group, these are especially prevalent in the supply chains. Our key challenges and risks relate to areas such as occupational safety, child labor and forced labor, remuneration and working hours, as well as freedom of association and discrimination in the deeper supply chains. At the same time, we see it as our responsibility to continuously evaluate and improve our processes concerning our own employees, for example, by promoting anti-discrimination initiatives. As a global digital corporation, issues of privacy and data protection, as well as data security, are also of central importance across all business models for the Otto Group.
Measures
For the risks we have identified, we derive targeted measures to address them. A particular focus is placed on the supply chains of our own and licensed-brand products, where we have identified significant opportunities to influence practices and outcomes. These measures are designed to drive continuous improvement and range from the use of preferred raw materials to social audits and certifications, as well as training programs at factory level. We actively participate in industry alliances and initiatives, including amfori, the "Dialogue and Impact for Sustainable Textiles" (formerly the German Partnership for Sustainable Textiles), Fashion for Good, and the International Accord for Health and Safety in the Textile and Garment Industry. For many years, we have also supported the development of improved processes in the cultivation and production of raw materials, for example through the Aid By Trade Foundation and its Cotton made in Africa initiative. Finally, we embed our commitments in internal policies and guidelines to ensure their long-term implementation, including our Code of Conduct, Business Partner Declaration, Responsible Purchasing Declarationm and Code of Ethics.
Complaints
In case human rights violations occur despite our measures and efforts, our whistleblower system is available to receive complaints. These can be reported by anyone connected to the Otto Group, whether they are workers in the supply chains, Otto Group employees, customers or affected local residents. All indications are carefully followed up. Additionally, through our memberships in amfori BSCI and the International Accord, as well as with our commitment to the "Dialogue and Impact for Sustainable Textiles" (formerly known as the German Partnership for Sustainable Textiles), we significantly contribute to finding industry solutions as well.
Reporting
We are aware that human rights due diligence is an continuous process. For this reason, we are constantly working on our own processes and adapting them to the given circumstances. We regularly report on our progress in our Annual Report and on the websites of the individual Otto Group companies.
Further information on reports, policies, and commitments can be found here.