Ethical trading

Progress 2007 cont...

Working with others

We can do a lot to improve conditions in our supply chain through our improvement programmes and capability building. But tackling some of the complex and systemic problems in specific countries and industries requires working in partnership with others.

In 2007 we worked with these partners.

  • Ethical Trading Initiative (ETI)
    As well as setting out the core labour standards code which we seek to apply throughout our business, the ETI also provides a forum to investigate common issues in our supply chain. We play an active role by contributing to many of the ETI's working groups and projects. In 2007 these included the General Merchandise Group, Food Group, China Working Group, Wages Project, Homeworkers Group and Supervisor Training Working Group. Tesco chairs both the Food Group and the General Merchandising Group at the ETI.
  • Global Social Compliance Programme (GSCP)
    The plethora of labour standards codes adopted by retailers across the world has resulted in inconsistency in determining non-compliances, corrective actions and verification criteria. To address this, Tesco, initially with four other global retailers, formed the Global Social Compliance Programme in 2007. The GSCP has already agreed a draft Reference Code between the 25 leading retailers and manufacturers currently involved. The GSCP Reference Code has taken the highest standard from the many existing codes consulted to develop a 'code of codes', in preference to a lowest common denominator standard. Next steps involve the development of an audit checklist to ensure the Code is interpreted consistently around the world. Longer-term goals include closer collaboration and data sharing between members, joint efforts at capacity building with suppliers, and implementation of remediation plans across our common supply chains. Tesco chairs the GSCP board.
  • Sedex (Supplier Ethical Data Exchange)
    Tesco was instrumental in founding Sedex in 2004, and continues to play a central role in its development. Tesco staff sit on the Sedex board, Associate Auditor Group, and IT Development Working Group. Key developments in 2007 included the launch of the Sedex Members' Ethical Trade Audit Methodology (an important tool in driving convergence in standards), a review of the Sedex risk assessment tool, and a significant increase in members (see case study in Ethical trading - Monitoring ethical performance).

>> Case study: Working with the Environmental Justice Foundation (EJF)

Following a three-year investigation on Uzbekistan's cotton industry conducted by the EJF, which revealed the use of organised and forced child labour, our clothing team worked with the EJF to identify options for tracing cotton in our supply chain more rigorously, and for eliminating cotton supplied from Uzbek sources. In 2007 Tesco was the first UK retailer to announce that it was banning the use of Uzbek cotton by its suppliers. We hope the move, which has been followed by several other retailers, will put pressure on the Uzbek government to remove child labour from cotton farms and improve conditions for all workers. <<

KPI 2007/8  
Supply chain labour standards To carry out independent ethical assessments of 100% of our high-risk own-brand suppliers. Red disc img indicating: Below target
  To train 100% of our high-risk own-brand suppliers. Green disc img indicating: On target
  To ensure all commercial teams have received training on supply chain labour standards. Green disc img indicating: On target
Red disc image Below target
Yellow disc image Close to target
Green disc image On target
Blue disc image Above target
View the complete KPI table  
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