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Co-op results - Producers
- Indicator 2.1
- Indicator 2.2
- Indicator 2.3
- Indicator 2.4
- Overall commentary and examples of good practice
- Supermarket comments
Indicator 2.1
Issue: Corporate commitment to trading integrity with the supply chain
Indicator: Board-level responsibility for trading integrity
Best in class
The Co-op’s Chief Operating Officer represents the retail part of the Co-op on the Executive Board, with responsibilities covering ethical trading in the supply chain. Responsible Retailing is addressed primarily through the retailing division under the head of the Co-op Brand and Technical team.
Indicator 2.2
Issue: Trading integrity with the supply chain
Indicator: Standards and codes of practice
Codes of practice on relationships with suppliers: The Co-op has signed up to the Department of Trade and Industry (DTI) Code of Conduct, though it was not obliged to (the Code was targeted at the ‘Big Four’ retailers with market shares greater than 8%). The Co-op has also developed its own code of conduct on supplier relations, which includes more rigorous language than the DTI Code. This is incorporated within the Co-op’s Code of Business Conduct, though unfortunately not in the publicly available summary version. Buyers are trained in the Codes and Co-op suppliers are regularly informed, but ‘first tier’ suppliers are not obliged to implement the code with their suppliers — generally smaller suppliers or farmers.
Country of Origin labelling. The Co-op has adopted the Food Standards Agency best practice guidelines for Country of Origin labelling, and has spelled out a supportive policy position (supplied to RTTT), committing the group to always indicate the country of origin of a product and “will not use any national flags, emblems, symbols and particular colour combinations on any product except where the product is manufactured and packed in the country concerned.”
Pricing of ‘sustainable’ products. The Co-op has a policy of not making higher profit margins from organic and Fairtrade produce compared to conventional produce.
Indicator 2.3
Issue: Fair trading relationships
Indicator: Integrity of the trading relationship with UK farmers and suppliers
The Co-op was one of only two companies, which participated in the RTTT supplier survey, designed and conducted by the Centre for Food Chain Research at Imperial College.
The 23 responses received from Co-op suppliers yielded a score below the median of results from the pilot year. This suggests that the Co-op has some way to go [before it has ensured that policies of equity and justice in trading relations feed through to company buyers.
Indicator 2.4
Issue: Support for smallholder producers in developing countries
Indicator: Availability of and promotion of Fairtrade Marked products
At the time of reporting, the Co-op stocked a total of 38 Fairtrade Marked products in 11 product categories, including 6 categories with own-brand Fairtrade products, with at least one product per category appearing in the bulk of the Group’s 1100 stores. These products are supported by a sustained effort of promotions, in-store advertising, special events during Fairtrade Fortnight etc. Even considering the Co-op’s ethical business constitution, this is a remarkable achievement and points the way for companies with a similar set of business challenges to go out and actively develop the Fairtrade sector.
Overall commentary and examples of good practice
Examples of good practice
The Co-op has been at the forefront of introducing Fairtrade-marked products into its stores, including own-brand, as a concerted campaign. This shows that developing the Fairtrade sector is not governed entirely by the income level of a retailers’ customer base. The Co-op:
- Is the first UK retailer to introduce Fairtrade bananas and Fairtrade mangoes
- Is the first retailer to launch and own-brand Fairtrade product—Co-op Divine milk chocolate, in partnership with the Day Chocolate Company; all Co-op block chocolate has been converted to Fairtrade
- Has developed own-brand Fair Trade roast and ground coffee, and own-brand fairly traded wine
- Has ‘done more to support Fairtrade Fortnight than any other grocery retailer’
- Has received the Retail Industry Award for Marketing Campaign of the Year 2001 for their Fairtrade campaign, and Retail Week’s In Store Promotion of the Year.
Areas for improvement
- Incorporate the company’s Code of Conduct on supplier relations in Terms and Conditions of Purchase from suppliers, so that the principles of the Code are transmitted ‘upstream’ to smaller suppliers and farmers.
- Include the company’s Code of Conduct in the Co-op ‘Code of Business Conduct’ and publicise that code on the company’s website and printed information
- Improve communication and collaboration between retail buyers and suppliers, and ensure that code of conduct become the spirit as well as the letter of trading relations
Supermarket comments
“Fairtrade products are now a core part of our Co-op Brand range, with the recent conversion of all Co-op Brand coffee to Fairtrade signifying our strong commitment and moving Fairtrade firmly to the mainstream of supermarket retailing. There is still scope for others to add their support to Fairtrade, and we would encourage both retailers and major brands to adopt Fairtrade within their ranges. The dialogue and close relationship with producers that Fairtrade develops brings additional strength to our relationship and to our products. Both are being developed, although the diverse nature and extent of our supply chain means that we continue to work to foster effective relations with suppliers. Our code of business conduct supports this and is an open and transparent commitment to delivering our values in this area of our activity.”