Tesco pushes forward with ethical initiative

As Fairtrade Fortnight, which runs from February 25 to March 9, began, Tesco was urging firms to back an initiative to improve the conditions of workers in the global supply chain.

International trading law and technical director for Tesco, Terry Babbs, has encouraged others to sign up to the Global Social Compliance Programme (GSCP). The scheme is a business-driven initiative for companies seeking to harmonise standards and the working conditions of those employed in the global supply chain. Tesco boss Sir Terry Leahy is among several leading retail bosses who have signed up.

Babbs said Tesco's global sourcing strategy complicated supply chains and entailed more risks. "We understand the risks in food safety," said Babbs. "But what about working conditions and labour standards, law and practice in these countries?" Other contentious areas included child labour, discrimination and freedom of association.

Meanwhile, shoppers wanted more processed foods with the Fairtrade mark, or at least containing fairtrade ingredients, according to consumer research by brand agency Dragon Brands.

"There's huge enthusiasm for the concept of Fairtrade and consumers want to see the label on products that don't just contain one ingredient like coffee or bananas," said Dragon consultant Luke Vincent. "This could include labels such as 'this contains Fairtrade chocolate', even if they can't ensure that every ingredient is Fairtrade."

However, he said consumers were wise to big brands simply jumping on a bandwagon rather than devising wider ethical or environmental strategies.