12.6 Responsible companies
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In 2014, the European Parliament and the member states of the EU adopted a directive to extend reporting of large capital market-oriented companies, credit institutions, financial services institutions and insurance companies (the so-called CSR directive). The aim of the directive is to increase the transparency of ecological and social aspects in companies in the EU.
Germany has transposed the Directive into national law (CSR Directive Implementation Act). The CSR Directive Implementation Act came into force on 19 April 2017.

The Global Compact was launched by the United Nations in 2000. It is a strategic and international platform for learning and dialogue on sustainable and responsible business, involving civil society organisations, business and national governments. Working with its partners, the Global Compact has shaped the international dialogue on sustainability and the development of business strategies and tools to achieve it. As a platform for multi-stakeholder learning and dialogue, the Global Compact convenes webinars, workshops, coaching, conferences and technical forums in its work. The Global Compact Network Germany (DGCN) brings together the German signatories of the UN Global Compact: there are currently around 660 companies – ranging from DAX corporations and SMEs to small specialist companies - and nearly 60 organizations from civil society, academia and the public sector. In the Network, they can get information about all the topics concerning corporate responsibility, the sharing of ideas and cooperation on practice-oriented solutions. The DGCN was founded on the initiative of German companies in 2000 as one of the first national platforms.

In 2016, the Federal Government adopted the National Action Plan for Business and Human Rights in the Federal Cabinet. In the action plan, the Federal Government for the first time anchors the responsibility German enterprises have for observing human rights in a clear framework. Companies are expected to comply with the human rights due diligence obligation and respect human rights along their supply and value chains. With the National Action Plan, the Federal Government aims to improve the global human rights situation and to shape globalization in a socially responsible way.

The Green Button is a government-run label for sustainable textiles. Since September 2019, the certificate sets binding requirements for the products and the entire company. To obtain the certification, companies have to meet high requirements regarding their production and working conditions. Therefore, they have to comply with 46 social and environmental criteria. Independent auditors conduct the necessary audits. The Germany Federal Ministry for Economic Cooperation and Development defines and owns the certification scheme. The Green Button provides orientation when buying socially and environmentally manufactured textiles. Thus, it aims at raising awareness of customers and companies on the topic of sustainable textile production and supply chains. With the assistance of an independent expert advisory council, the Green Button is continuously being developed further to be even more comprehensive in the future. 

The CSR Award of the Federal Government is intended to honour outstanding examples of social responsibility and motivate imitation: The prize is awarded to companies that implement exemplary fair business practices and employee-oriented human resources policies, use natural resources sparingly, protect the climate and the environment, get involved locally and also assume responsibility in the supply chain.

Companies based in Germany were able to apply in three different size categories and two special award categories for the 2020 round of the competition. Each participating company receives an individual evaluation for the continuous improvement of its own CSR commitment. The CSR Award of the Federal Government is an essential measure of the National CSR Strategy of the Federal Government. Within the Federal Government, the Federal Ministry of Labour and Social Affairs (BMAS) is in charge.