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Press Release

Leading supermarkets are neglecting responsibility for supply chain working conditions - international consumer group study reveals

Leading supermarkets are neglecting responsibility for supply chain working conditions - international consumer group study reveals

A new study of the corporate social responsibility (CSR) policies of Europe's leading supermarkets has revealed an inadequate and, at times, contradictory approach to addressing unacceptable labour conditions in the developing world.

Consumers International (CI), the global federation of consumer organisations, is calling for supermarkets to address this issue as part of their responsibility towards sustainable consumption and production.

To be launched on 30 March at UN headquarters in New York, Checked Out examines the policies of leading supermarket chains in eight EU countries. The study focuses on labour conditions and trading relationships in the food supply chain. It reveals that, whilst many consumers are willing to pay a premium for fairly traded goods, there is a lack of genuine commitment to address this issue by supermarkets.

Checked Out found that, whilst many supermarkets proclaim a commitment to sustainability and improved working conditions further down the supply chain, there are inadequate measures in place for the monitoring and training of suppliers.

Europe's leading supermarket chains are also failing to demonstrate practical measures to ensure they do not squeeze suppliers on price and ultimately make labour conditions worse.

The study acknowledges that, in the right conditions, international trade has the potential to make a major contribution to sustainable social and economic development. However, despite some examples of good practice Checked Out goes on to provide evidence that overall:

• Existing policies on labour standards are not applied and monitored consistently throughout the supply chain
• Pressure on suppliers for lower prices and additional requirements can undermine their ability to deliver better labour conditions
• The promotion of sustainable products to consumers is limited and variable

CI Director General, Joost Martens, said:
"Consumers want responsible trade and many retailers are responding to this. But whilst supermarkets increasingly see the appeal of appearing to care about sustainability further down the supply chain, consumers risk being misled into believing enough is being done to improve working conditions in the developing world.

Supermarkets are powerful players in the supply chain. They need to take more responsibility for labour conditions by working together with suppliers to improve standards. This means implementing and monitoring socially responsible policies without undermining a supplier's ability to deliver.

"It is crucial that companies focus on achieving real progress towards sustainable consumption and production and not simply on improving their image in the eyes of consumers."