Retailers monitor ethics data online

Some of the UK's leading supermarkets and food suppliers are working together to improve ethical trading standards using secure web technology.

The Suppliers Ethical Data Exchange (Sedex) allows manufacturers to share information such as working conditions, hours, pay and use of child labour with retailers, so they can make improvements to their supply chain.

Tesco, Marks & Spencer, Safeway and Waitrose created the system with food manufacturers Geest, Northern Food, RHM and Uniq, to cut down on the duplication of the ethical assessments and audits manufacturers are asked to complete.

'If we can get rid of duplication we can all focus our attention and resources on improving ethical standards,' said Terry Babbs, Tesco's head of ethical trading.

Currently manufacturers have to complete multiple audits for the different retailers they sell to, but the new web portal means participating supermarkets can adopt similar assessment criteria.

'Sedex will provide suppliers with an immensely valuable tool enabling them to operate a single, co-ordinated approach to auditing across their customer base,' said Louise Nicholls, ethical trading manager for food at Marks & Spencer.

'Ultimately this means suppliers can meet the expectations of their customer in an efficient and cost effective way,' she said.

The Sedex secure web portal, based on software from supplier CODASciSys, uses an electronic document management system, collaboration tools and an audit trail, with manufacturers governing who has access rights to their information.

Babbs says Sedex is also helping Tesco manage its ethical trading programme, by pulling together much of the auditing data from its global suppliers into a single online reporting structure.

He says Tesco is asking all its suppliers to register to the not-for-profit system and also welcomed other supermarkets to join the scheme.

'Sedex is open for everyone,' he said.

What is ethical trading?

Ethical trading covers business practices promoting environmental and socially responsible commerce.

Consumers and lobby groups are increasingly putting pressure on food and clothes manufacturers, with large global supply chains, to guarantee decent working conditions for the people making their products.

Many retailers are auditing their supply chain partners to ensure they meet ethical trading standards.

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