Jump to accessibility statement (accesskey 0), Board, Board Committees and Executive Committee, Group statement of comprehensive income/(loss), Human Rights Impact Assessment within the Vietnamese Prawn supply chain, minimum standards on Responsible Sourcing, Simplified trade terms for Central European suppliers, Helping our clothing suppliers respond to Covid-19, Approximately 190 million women work in global supply chains, joint letter in 2020 to the Royal Thai Government, Environmental Justice Foundations Transparency Charter, https://siza.co.za/when-grievance-becomes-a-good-practice/, full list of first tier food and grocery non-food suppliers. It is our belief that where workers organise independently and select their representatives without management interference, most labour conditions will tend to be considerably better than in sites where there is no worker representation. It also lost half a mark under Anti-Social Finance because it didn't publish its directors' pay. Tesco has taken a number of steps to ensure responsible recruitment and subsequent remediation in cases where abuses have occurred. In contrast, workers in lower skilled roles on temporary contracts and within lower wage industries would be at higher risk. Helpline Advisors support potential victims and any member of society with concerns. Our ultimate aim is for all our supply chains to have effective operational-level grievance mechanisms as described above. Human Rights Impact Assessments not only seek to capture all relevant adverse risks to human rights but may look to also include an assessment of how business practices/policies have an impact on risks, direct engagement with all rights holders including civil society organisations and communities, disaggregated gender-based analysis, root cause analysis, understanding the political economy and national context and finally the development of recommendations and action plans. Following this study we worked with the Issara Institute to build capacity with our suppliers and wider industry in Thailand. More information on our sustainable livelihood strategy can be foundhere. Each candidate is eager to know more about the place where they will work, the culture, their tasks, and company goals. For example, minimum wages may not be enough to meet workers basic needs or national infrastructure (e.g. We believe that improving labour standards in the supply chain is a shared responsibility and our approach is to integrate the cost of doing business responsibly into the final cost of goods, rather than being an additional bolt-on or premium, where possible. Now all Tesco suppliers have free and fair elections by workers to elect their representatives and management holds regular meetings with worker representatives. In addition, we sometimes make entirely unannounced visits if we have particular concerns, including to validate audit findings. The negative impacts identified from the report were classified as minor including continuous use of short-term contracts, lack of policies covering sub-contracted labour, potential for indirect discrimination of female workers, and poor health and safety standards within a small number of areas of the workplace and accommodation. This threw up the UK's largest ever modern slavery ring in which some of its 400 victims worked for as little as 50p a day, working on farms, rubbish recycling centres and poultry factories. Being dishonest or misleading will only lead to disappointment and damage your reputation. In September 2019, the company received a worst rating from Ethical Consumer for its policy on the use of toxic chemicals in its electronic products - as they did not have a publicly facing policy. Although people despise a terrible boss, an unethical recruiter or hiring manager is just as bad. The Responsible Sourcing team conduct regular visits and worker interviews to both supplier and own-operations sites. There are many reasons why ethical recruitment is essential, but ultimately it comes down to doing the right thing. For example, both governments and businesses play an important role to ensure that small-scale producers are resilient and prosperous, can earn a living income, and receive a fair share of the value accumulated in food supply chains. Depending on the above analysis some recommendations have been provided for the company Tesco. The ETI report we prepare is scrutinised by trade union and NGO members of ETI (members include the Trades Union Congress,CAREandAnti-Slavery International) and feedback is provided to us to help us review our activities and improve. It will help you build trust, attract top talent, and avoid legal problems. SMETA, a SEDEX initiative, helps consumer brands and their suppliers reduce duplication and ensure better quality auditing by setting out a robust methodology and a common format for the audit report and its corresponding corrective action plan. We know that, together with remediation, they are key to tackling human rights exploitation and abuse. For example, its illegal to discriminate against candidates based on race, religion, or gender. For example, you should let them know if you consider them for a role theyre not qualified for. The process was developed in consultation with over fifty internal and external stakeholders, including suppliers, multi-stakeholder bodies such as the Ethical Trading Initiative, trade unions, civil society groups such as Unseen and Oxfam and government bodies. Fig1: Recruitment Process GRIEVANCES POLICY: Complaints are an important aspect of personnel policy, because it contains a provision on the factors that cause problems in the workplace because of the causes of stress, fatigue, personal problems, health problems and other social issues. Its the only way to conduct business, and it will help you build a strong reputation as an ethical recruitment company. We have a duty of care to candidates, and we should always strive to act in their best interests. In 2019, we initiated our first HRIA in the Vietnamese Prawn supply chain. For example, the Oxfam and Ethical tea Partnership led programme Malawi Tea 2020 officially ended at the start of 2021. In November 2020, Global Seafood Assurances realised a white paper documenting research undertaken to investigate grievance mechanisms in the fishing industry. Approval of recruitment - This is first step in selection process as approval from top management and finance department is necessary. Rather than exiting the relationship with the supplier, we seek to agree that workers are back paid at least three months of any missing salaries. We followed this up in 2021 with the publication of a list of direct suppliers in our tea supply chain. One such tool is Human Rights Impact Assessments (HRIAs). We will work with you to ensure that youre making the best possible recruitment decisions for your business. Tesco has continued to make good progress with their strategy, which has five elements, reflecting their four established areas of focus, and also Tesco's long-term commitments on community and environment. We also cover issues such as palm oil, soya, low carbon diets and labels. PDF 2.9MB. Our primary certification partner for a number of key supply chains is the Rainforest Alliance, who use the Sustainable Agriculture Network (SAN) standard. Our UK labour providers are registered with the Gangmasters Labour and Abuse Authority and prohibited from actively recruiting from outside of the UK without the prior agreement of Tesco, as recruiting people who have moved to the UK autonomously, and have the legal right to work here, reduces the risk of human trafficking and exploitation. Being fair and unbiased can ensure that youre making the best recruitment decisions and hiring the most talented candidates. The rating is based on a number of sources, including the International Trade Union Confederation (ITUC) Global Rights Index, the United Nations Development Programme (UNDP) Human Development Index, the Modern Slavery Vulnerability and Prevalence Indices compiled by The Walk Free Foundations Global Slavery Index (GSI), the United States Department of States Trafficking in Persons Report, Transparency Internationals Corruption Perception Index, Freedom Houses Freedom in the World index and UNICEF and the Global Child Forums Children's Rights and Business Atlas. This website uses cookies to improve your experience while you navigate through the website. For example, dont promise a higher salary than what the company is willing to pay. They will also inform Tesco of any issues that the supplier refused to acknowledge or that could not be verified. We have worked with ETI closely to address multiple cases of trade union discrimination in factories in Sri Lanka, India and Turkey. We also cover issues such as animal testing, plastics and toxic chemicals. Tesco say they are doing all they can on sustainability but how do the company's ethics really stack up? Historically we sought to address human rights issues primarily through an ethical audit programme of our direct supply base. In September 2019, Tesco scored Ethical Consumer's best rating for its supply chain management when we viewed the following documents on their website: 'Our Approach to Human Rights' dated 11/4/19; 'Modern Slavery Statement 2018/19'; and 'Supplier Code of Conduct'. Tesco can adopt following documentation process to select desired employee. Responsible recruitment addresses these issues by ensuring that workers are recruited through legal and ethical processes, that hiring processes include worker safeguards and transparency, and that workers do not pay fees to secure jobs. Where significant human rights issues are identified at new sites, the appropriateness of sourcing is reviewed alongside commercial colleagues. Following a commercial review process and when a new or updated contract is awarded, detailed commercial plans are developed and agreed with suppliers. We use our human rights due diligence requirements to help us decide which suppliers to source from. Theyre also more likely to refer others to us, which can help us grow our business. The objectives of this study were to evaluate the effectiveness of the different mechanisms, identify good practices and make recommendations to empower worker voice. Following the audit, suppliers are required to resolve all corrective actions identified in the audit report, addressing non-compliances with the ETI Base Code and local law. We also uphold standards on working hours and health and safety for workers. Migrant workers in particular are especially at risk of abuse. Our research highlights several ethical issues for Tesco and they are marked down in our rating system in many of the categories. Tesco has over 40 dedicated responsible sourcing specialists based in nine key sourcing countries who engage directly with suppliers, workers, and other stakeholders. We also cover issues such as e-waste, privacy, big tech and reducing our carbon footprint. According to the International Labor Organization (ILO), recruitment costs can amount to nine months or more of average monthly earnings.. Guides to bike, cars, petrol and outdoor pursuits. Partner with a trusted and ethical agency, If youre not familiar with the recruitment process or the law, its a good idea to partner with a trusted and. When there have been complaints of discrimination, Tesco actively encourages bilateral negotiations to take place to resolve the disagreements and promote management training to ensure better relations with trade union leaders. Around 86 % of all gross revenues are from the UK. Tesco also continued to sell other branded products from companies that did still test on animals. With Responsible Sourcing Managers based in many of our sourcing regions, we are often engaging NGOs and worker organisations directly as part of our broader due diligence approach. You can download our full human rights requirements for food and grocery non-food suppliershere. The amendments did not ban labour brokering. Tesco also works with unions and NGOs across its supply chains on worker education and freedom of association. We collaborate in a number of different ways to address specific, entrenched human rights issues which include our four themes. Going forward we are therefore looking at how HRIAs can be used to build on existing knowledge and explore answering a different set of questions. The team have significant expertise of identifying potential human rights abuses or worker welfare concerns. If we then believe that there is both commitment from the suppliers to avoid recurrence, and capability to do so, we will usually continue to work with them until and unless there is any repetition. Audits also assess if a majority of workers are aware of who their representatives are and if they are satisfied with their effectiveness. If word gets out that youre engaging in unethical recruitment practices, it can damage your reputation and make it difficult to attract top talent. Considering the specific context of the industry, country, and site to ensure mechanisms are meaningful is important and we recognise that access to grievance mechanisms may be more limited for women, migrant workers, and smallholders. Our team of 45 responsible sourcing specialists based across 9 key sourcing countries increase visibility into on-the-ground concerns. These are minerals mined in conditions of armed conflict and human rights abuses, notably in the eastern provinces of the Democratic Republic of Congo. Some examples of where we are exploring the use of HRIAs is in tea in East Africa and produce growers in Spain. The four themes in our strategy are helping to address some of these underlying issues. If you can show that youre an honest business, youre more likely to attract top talent. As outlined in the 2020 KnowTheChain Food and Beverage Benchmark Findings Report, Tesco found that passports and work permits of 13 Burmese workers were withheld at a factory in Thailand and the identity cards of 44 workers were held by a factory in India. Ethical recruitment is not only the right thing to do, but its also good for business. We believe this approach supports improvement and that a simple cut and run approach, as well as being bad news for workers when orders are cancelled, discourages transparency with suppliers about the challenges they face. In contrast, companies. Similarly, the most serious abuses as set out in the UN Guiding Principles on Business and Human Rights, including forced and child labour, can occur when workers rights fail to be protected and when trade unions are absent or weak due to restrictions on their activities. was amended in 2014 to introduce protections for employees in precarious employment. Addressing them requires an understanding of the root causes and collaboration with suppliers, other retailers, trade unions, NGOs, governments and other industry experts. In many cases, we often already have access to good sources of information on the risks associated with a particular geography, product and supply chain. In our banana supply chain, we are in regular dialogue with union representatives at the Ethical Trading Initiative, alongside representatives from the International Trade Union Confederation (ITUC), International Union of Food (IUF) and Trades Union Congress (TUC). We also have regular bilateral meetings with regional civil society organizations such as Banana Link and COLSIBA- the Confederation of Latin American Banana Unions. Our risk assessment framework for Own Brand products looks at five metrics, which have the potential to increase the vulnerability of workers: These risk metrics are then mapped end to end in our key supply chains, allowing us to identify the most salient supply chain risks, wherever they occur. In our non-food supply base, we launched an Ethical First initiative with internal colleagues and all Own Brand general merchandise and apparel suppliers. They will be able to guide you through the process and ensure that youre complying with all the relevant laws. We know from our own experience as a large employer that establishing continuous feedback routes enables business to address potential issues before they materialise. . Necessary cookies are absolutely essential for the website to function properly. Its the morally correct way to conduct business, and it will help you build a strong reputation as an ethical recruitment company. When situations of abuse, such as wage or document withholding are uncovered, companies must ensure workers receive remediation. This project will be coordinated by the Food Network for Ethical Trade (FNET) and implemented in collaboration with other retailers and industry stakeholders. Ultimately, ethical recruitment is about being honest, transparent, and respectful to candidates. Although people despise a terrible boss, an. Only after he left his village in Indonesia did he find out that his salary would be only US$300 and that he was required to pay a US$900 security deposit and a US$750 administration fee. Our Human Rights Requirements for Tesco UK Food and Grocery non-food suppliers are updated on an annual basis in consultation with internal and external stakeholders. In the, , Tesco was the highest-scoring company on the theme of Worker Voice, which assesses how companies seek to ensure that supply chain workers understand and are able to exercise their rights.. Written records are kept to ensure management address workers concerns and requests. The Social Responsibility Assessment (SRA) Tool, Illegal, Unreported, and Unregulated Fishing, Ethical Trading Initiatives Working Group for Italian Agriculture. We also cover greenwashing, boycotts, the climbing industry, tourism and other issues. We recognise that workers and farmers need to receive a fair share of the value they contribute to a companys products and be able to afford basic needs for themselves and their families. The company had a number of subsidiaries in tax havens, including one in Hong Kong, one in Cyprus, one in Jersey and one in Guernsey. We have discussed why ethical recruitment is essential, but what does unethical recruitment look like? Where applicable, we support suppliers to close non-conformances prior to supply. Ensuring sufficient capacity on the ground. Approximately 190 million women work in global supply chains in the factories, farms and packing houses that supply the worlds clothing, goods and food - yet these women are often found in low paying jobs with limited security and vulnerable to exploitation. Our collaborations fall into one of five models: More information on our human rights collaborations and multi-stakeholder initiatives is availablehere. Understanding and addressing the root causes of gender inequalities requires decisive and collective action. Companies that engage in unethical recruitment practices are more likely to experience legal problems, bad publicity, and high staff turnover. Its essential to be upfront with candidates about the recruitment process. This includes: As outlined in the 2020 KnowTheChain Food and Beverage Benchmark Findings Report, Tesco provides a concrete example of remediation of recruitment fees to supply chain workers.. If youre found to be breaking the law, you could be fined, imprisoned, or both. We have also worked with factories in Bangladesh, India and Turkey which supply to Tesco to engage in the ETI Social Dialogue Programme to empower worker representatives and ensure free election of worker representatives. Contact us today to find out more about our staffing and recruitment services. Transparency plays a key part in our human rights strategy and allows us to continually improve the way we source our products. To further emphasise to suppliers the importance Tesco places on worker representation, in 2022 we will be supporting the development and implementation of online supplier training aimed at increasing the number of effective worker committees in UK and global food supply chains. Example: Food Sector. Staffing decisions can make or break a company, which is why its so important to ensure that your recruitment process is ethical and fair. Our principle is that we will always look to work with suppliers to meet our responsible sourcing and ethical requirements. The supplier is responsible for completing all corrective actions on the CAPR within agreed timescales, and for obtaining verification of closure from the independent auditors. The recruitment process can be a minefield for businesses and agencies unfamiliar with the law. Internal reports are generated periodically and shared with our technical colleagues to manage with the supply base (with oversight by the responsible sourcing team). We are also working with &Widers worker voice technology on several pilots in high-risk sites in Spain, Turkey, Asia, and Africa. As part of our strategy, we are continually exploring supplementary tools to audits. All Rights Reserved. Despite this, the company still held two subsidiaries based in places listed in our list of tax havens. and why you should always strive to conduct ethical recruiting practices. Dont play favourites or show bias towards any particular candidate. Tesco are active members of the steering committee. Instead, they strengthened the regulations to provide more excellent protection for workers placed in temporary employment services. In situations where Tesco does not believe a supplier is committed to remediation or moving towards more responsible recruitment, it will end the relationship. Tesco is using technology that's track customers buying any products in its stores. These Principles are based on decades of collective experience. Guides to online and high street retailers from books to supermarkets. It is vital to helping us manage risk in our supply chains, share learnings and enable collaborations for greater impact and mitigation. An essential part of all audits are the worker interviews which gather concerns and suggestions and pass these on to management to ensure continuous improvement of labour conditions. We also investigate tariffs, carbon offsets and fracking. There are many laws governing recruitment, and if you break these laws, you could face severe penalties. Restricted Substances in Textiles Leather and Footwear. More details of our worker representation work are detailed under this pillar above. The company has more than 360,000 employees worldwide. This includes training staff to spot potential indicators of modern slavery. Responsible Sourcing Manual - Clothing and General Merchandise Suppliers. In our own operations and procurement, dedicated head office staff work closely with all service providers, as well as our internal People function, Distribution Centre and Security Managers to help address risks. Responsible sourcing sits within the quality pillar of the scorecard. We work collaboratively with our service providers to help ensure all temporary workers receive a reasonable number of paid hours each week and have the opportunity to transfer to permanent employment when vacancies arise. This show with the intention of Tesco doesn't comprise mind and a tough connection for/with their supplier. For example, the Employment Equity Act prohibits discrimination against job seekers and makes it illegal to ask specific questions during the recruitment process. Well also look at some of the most common unethical practices in recruitment and provide tips for avoiding them. In our own operations, Tesco conducts regular colleague feedback surveys which cover a range of welfare topics and provide a confidential forum to raise concerns. Guides to help you find ethical brands and retailers. Here are some of the most common: Dont make promises to candidates that you cant keep. Tesco is the UK's largest supermarket chain. We have a responsibility to respect the human rights of, and an opportunity to make a difference to, our colleagues, our customers, the communities we operate in and the people who work throughout our supply chain. Using employee reviews is an excellent way of . One of the most widespread issues in recruitment processes is the use of recruitment fees, which may lead to situations of debt bondage as workers have to work to pay off their debt. Are especially at risk of abuse that youre complying with all the laws. Key to tackling human rights strategy and allows us to continually improve way. 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