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The 5 LkSG Questions That Trip Up Every Small Supplier

Denis Mitov

After talking to dozens of small suppliers who received LkSG questionnaires, I've noticed the same five questions come up again and again as the ones that make people freeze. Not because the answers are complicated β€” but because the questions are written in a language that nobody outside a compliance department actually speaks.

Let me translate them for you.

1. "Describe your grievance mechanism"

What it sounds like: Some elaborate legal system with hotlines and ombudsmen.

What it actually means: Can your workers report problems?

That's it. If an employee has a concern about safety, harassment, pay, or anything else β€” is there a way for them to raise it? And will someone actually listen?

How to answer if you're a small company:

Most small companies handle this informally β€” workers talk to their manager or directly to the owner. That counts, but you should be able to describe it clearly:

  • Who can employees go to with concerns? (Manager, HR, owner)
  • How can they reach them? (In person, email, phone)
  • Is it possible to raise concerns confidentially?
  • What happens after a concern is raised?

If you don't have any formal process at all, consider setting up a dedicated email address (something like concerns@yourcompany.com) and letting your employees know it exists. That's enough to satisfy most questionnaires.

Example answer: "Employees can raise concerns directly with their supervisor or with management via email. All concerns are treated confidentially and addressed within a reasonable timeframe. Employees are informed of this channel during onboarding."

2. "Describe your human rights due diligence process"

What it sounds like: You need a human rights department and an annual audit program.

What it actually means: Do you pay attention to human rights risks in how you run your business?

For a small supplier, "due diligence" isn't a formal program β€” it's the common-sense practices you already follow: verifying worker ages, paying fair wages, maintaining safe conditions, and not doing business with companies that clearly violate these standards.

How to answer:

Describe the practices you have in place, even if they're informal:

  • How do you verify worker eligibility during hiring?
  • How do you ensure fair compensation?
  • How do you maintain workplace safety?
  • Do you have any process for evaluating your own suppliers?

Example answer: "The company conducts due diligence through its hiring processes (identity and age verification), regular workplace safety assessments, and compliance with local labor legislation. Key suppliers are evaluated during onboarding for adherence to basic labor and safety standards."

3. "Describe your risk analysis regarding human rights and environmental risks"

What it sounds like: You need a formal risk assessment framework with matrices and probability scores.

What it actually means: Have you thought about where problems could occur?

A "risk analysis" for a small supplier doesn't need to be a 50-page document. It's about being aware of the risks relevant to your industry and geography, and being able to say what you do about them.

How to answer:

Think about your specific situation:

  • What industry are you in? What are the common risks? (Manufacturing β†’ workplace safety. Textiles β†’ supply chain labor risks. Services β†’ data privacy, working hours.)
  • Where are your operations located? What are the local risks?
  • Where do you source materials or components? Are there known risks in those supply chains?

Example answer: "The company has identified the primary human rights risks relevant to its operations as workplace safety and fair labor conditions. These risks are mitigated through regular safety training, compliance with [country] labor law, and documented employment contracts for all workers. Environmental risks are managed through waste segregation and compliance with local environmental regulations."

4. "Do you have a Supplier Code of Conduct?"

What it sounds like: A formal legal document that you need a lawyer to draft.

What it actually means: Do you have expectations for your own suppliers?

If you buy raw materials, components, or services from other companies, the LkSG wants to know if you've communicated any standards to them. This doesn't need to be a formal "code of conduct" β€” it can be a set of basic expectations.

How to answer if you don't have one:

You have two options:

Option A: Describe your informal practices. "We evaluate suppliers based on quality, reliability, and reputation. We do not knowingly work with suppliers that engage in child labor, forced labor, or severe environmental violations."

Option B: Create a simple one-page document listing your basic expectations (fair labor, no child labor, environmental responsibility, regulatory adherence) and share it with your key suppliers. This takes about 30 minutes and immediately gives you a "yes" to this question.

Example answer: "The company maintains supplier selection criteria that include adherence to applicable labor and environmental standards. Key suppliers are expected to comply with local legislation regarding working conditions, fair wages, and environmental protection."

5. "Describe your preventive and remedial measures"

What it sounds like: You need a crisis response team and corrective action protocols.

What it actually means: What would you do if you found a problem?

This question is asking about two things:

  1. Preventive: What do you do to stop problems from happening? (Training, safety equipment, contracts, regular checks)
  2. Remedial: If something went wrong, what would you do about it? (Investigate, fix it, make sure it doesn't happen again)

How to answer:

Be practical and honest:

  • What preventive measures do you already have? (Safety training, employee onboarding, regular equipment maintenance, employment contracts)
  • If a problem was reported, what would happen? (Investigation by management, corrective action, follow-up)

You don't need to have dealt with an actual human rights violation to answer this. You just need to be able to describe what you would do.

Example answer: "Preventive measures include regular safety training, documented employment contracts with clear terms, and compliance with local labor and environmental legislation. In the event of a reported concern, management conducts an investigation, implements corrective measures, and documents the resolution. Affected parties are informed of the outcome."


The pattern you've probably noticed

Every single one of these questions is asking about something you likely already do in practice. The difficulty isn't the substance β€” it's the translation from "how a normal business operates" to "what a due diligence form expects to see."

If you can talk about your business for 10 minutes, you have enough material to answer all five questions. You just need to frame it correctly.

That's what KettenKlar does β€” asks you simple questions in plain English, then translates your answers into the formal business language your client's team needs to see. Start your document β†’

The 5 LkSG Questions That Trip Up Every Small Supplier | KettenKlar