Ethical trade and developing countries
Fairtrade pineapple farmer, Costa Rica
Introduction
Customer tastes are constantly changing, with growing demand for fruit and vegetables, the latest home entertainment technology, and the newest toys and clothes for the family. Tesco now buys billions of pounds’ worth of food and non-food products every year from thousands of producers and suppliers world-wide, from Bangladesh to Kenya and Costa Rica. Building our international supply chains has brought huge benefits to our business, and to our customers – but it has also brought some major challenges.
Developing countries are not simple places to do business. They can be politically unstable, have poor infrastructure and high rates of poverty and illiteracy. There can be discrimination against women and minorities and limited concern for the environment. Under such conditions, it is often difficult to gain a picture of what is happening several links down our supply chain. This year we have faced accusations of poor labour standards in some of the factories, farms and plantations that form part of our supply chain. Some NGOs have claimed that our low prices inevitably lead to worker exploitation.
Faced with these allegations, it would be easy to walk away from sourcing in the developing world and leave its problems to others. But we believe that international trade is the key to helping hundreds of millions of ordinary people escape poverty and build better lives for their families. Tesco has strong employment and environmental standards and we are confident that trading with us can be an important force for good anywhere in the world. We also understand that although our customers want low prices, they also want fair prices and decent standards.
Although we have a major economic impact, we alone cannot change the political and social conditions of the countries in which we do business. What we can and must do, however, is ensure that everyone involved in our supply chain – and the communities they live in – truly benefits from their relationship with Tesco.