In the context of supply chain risks and corporate social responsibility, the lawsuit featured below heard before the German courts in Dortmund is of broader interest.
The lawsuit was filed due to a deadly fire at a Pakistani manufacturer‘s facilities. While the first instance court dismissed the action under Pakistani law, the issues remain and are relevant beyond the specific case.
For example, what liability - if any - might the company have regarding work safety (and other) standards maintained by suppliers. Companies increasingly need to address such potential liability risks in their supply chain risk management. Similarly, this development is also relevant for insurers providing liability cover.
The Karachi factory reportedly had only one exit along with barred windows that prevented escape in the event of an emergency. Another one of the plaintiffs' lawyers, Remo Klinger, said before the hearing that KiK had neglected fire safety regulations and hence shared responsibility for the high number of casualties.