Our risk assessment is reviewed regularly with stakeholders including trade unions, NGOs and suppliers. 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.. 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. Any attempt to interfere with the course of the audit through fraud, coercion, deception or interference is treated as a critical non-compliance and reported to Tesco. Tesco are active members of the steering committee. 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. 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. Yudha said his passport was confiscated once aboard the vessel, and that shifts lasted for 18 hours a day: There was no break, except for eating and only five minutes, said Yudha Sometimes, if a tuna came off a hook and the captain was angry at the missed catch, the crew would not eat at all. While Yudha, unlike many of his colleagues, did not pay with this life, his pay for ten months at sea amounted to only US$638. Tesco has taken a number of steps to ensure responsible recruitment and subsequent remediation in cases where abuses have occurred. Following this study we worked with the Issara Institute to build capacity with our suppliers and wider industry in Thailand. Integration of living wage into purchasing practices for banana suppliers, Liaising with suppliers and agreeing on the next steps following the outcomes of the, Number of open critical non-conformances identified through ethical audits, Actions and milestones relating to addressing risks of forced labour or modern slavery, Assessing gender equality within supply chains and identifying remediable actions, Actions and support being provided on worker representation and farmer organisations. We also believe that the development of robust action plans and identifying the specific roles and responsibilities of all stakeholders is a key step in our risk mitigation process. Our human rights strategy, which was updated in 2019, identifies four priority thematic areas: Further details are provided on each of these thematic areas in the Transform section below. No worker should have to pay for a job. Below weoutline of some of the issues in each category. Historically we sought to address human rights issues primarily through an ethical audit programme of our direct supply base. These are overseen by senior commercial stakeholders and, for strategic suppliers or for priority supply chains include specific Key Performance Indicators relating to human rights and broader responsible sourcing. For the most part, this purpose has had the effect of increased protection for marginal workers and the introduction of a legislative framework to ensure temporary services are indeed temporary and not exploitative in any way. was amended in 2014 to introduce protections for employees in precarious employment. We also cover greenwashing, boycotts, the climbing industry, tourism and other issues. They will be able to guide you through the process and ensure that youre complying with all the relevant laws. 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. Tesco is a founding member of Sedex and the majority of audit data is tracked through the Sedex platform. Where a collaborative project with other interested parties has come to its completion Tesco will frequently continue to support the objectives of the project. For example, minimum wages may not be enough to meet workers basic needs or national infrastructure (e.g. Unfortunately, there are many examples of unethical recruitment practices. Together with other companies, investors and business associations, calling on the UK government to introduce a Human Rights and Environmental Due Diligence (HREDD) law. . 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. Allegations and reports of human rights abuse are reviewed at Risk and Compliance Committee meetings in each of our operating markets and, at a group level, by the Group Risk and Compliance Committee chaired by the Group Chief Executive. Tesco had a pledge for zero discharge of hazardous chemicals by 2020, but this did not include electronics, only agriculture, textiles and leather. Necessary cookies are absolutely essential for the website to function properly. We know from our own experience as a large employer that establishing continuous feedback routes enables business to address potential issues before they materialise. More information about the training as well as the updated toolkit Grievance Procedures: A Best Practice Guideline is available here: https://siza.co.za/when-grievance-becomes-a-good-practice/. Instead, they strengthened the regulations to provide more excellent protection for workers placed in temporary employment services. Ethical auditing is predominantly focused on the first tier of the supply chain, i.e. 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. Although people despise a terrible boss, an unethical recruiter or hiring manager is just as bad. , 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. This unethical practice points to the evolution of recruitment in our modern world, where social media plays such a significant role. For example, the Oxfam and Ethical tea Partnership led programme Malawi Tea 2020 officially ended at the start of 2021. Wild fish: forced labour and worker representation. This pillar recognises that, although our trade provides opportunities and employment, there is still poverty associated with many different products and supply chains. In contrast, workers in lower skilled roles on temporary contracts and within lower wage industries would be at higher risk. Using the SEDEX platform we are also able to gather information on our suppliers and supply chain sites in one place and analyse this to inform our work and strategy. 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. Although we have a zero tolerance approach to critical breaches of the ETI Base Code, it is important to note that we do not abandon suppliers facing such problems. For example, we audit down to grower level for our fresh fruit and vegetables and do this in collaboration with our first-tier suppliers who cascade our requirements along the supply chain. The amendments did not ban labour brokering. what steps can we take to avoid, reduce or manage those risks. The recruitment process impacts the lives of real people, so it's crucial that we ethically conduct ourselves. However, this practice can present an opportunity for some suppliers to prepare sites and coach workers prior to an audit in an attempt to manipulate findings. These will therefore be our immediate priorities for the next three to five years: Outside of these key products and ingredients, we focus on an additional seven regions and issues because of the known risks associated with them and/or their commercial importance to our business: Once we have identified our priorities, we then seek to work collaboratively with our suppliers, wider industry, civil society and, where appropriate, policy-makers to mitigate human rights risks - i.e. As founding members of the Ethical Trading Initiative (ETI), we have been taking action on these issues since 1998. Examples of the projects included in the 2021/22 plans were: Responsible sourcing criteria are also integrated into core purchasing practices - annual supplier reviews, when new or updated contracts are set, and throughout the tender process. Our work will increasingly mean engaging strategic suppliers in the importance of worker representation via the ETI resources on Freedom of Association, Collective Bargaining and worker representation. 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. Its the morally correct way to conduct business, and it will help you build a strong reputation as an ethical recruitment company. PDF 2.9MB. We gave them a worst rating for toxics and the company lost a whole mark under pollution and toxics in our rating system. 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. In 2021 Reckitt Benckiser, one of our key suppliers, commissioned a set of guidelines for companies on how to improve their grievance mechanisms so that workers can raise grievances in a safe, trusted, and transparent manner. Its the only way to conduct business, and it will help you build a strong reputation as an ethical recruitment company. This show with the intention of Tesco doesn't comprise mind and a tough connection for/with their supplier. Disclaimer: This case study is intended to be used as an educational resource and does not indicate an independent evaluation or endorsement by FishWise. In addition, we will continue to support our suppliers to conduct HRIAs where it is more appropriate for them to lead (e.g. You can also check out The Advantages of Expert Industrial Relations if you found value in this article. healthcare) may be insufficient. To remediate each case, Tesco worked with suppliers to ensure that the workers were compensated. We are currently assessing the outputs of these pilots and working with &Wider on next steps. 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. This rude and unprofessional move can damage your reputation when candidates report on their experiences. Tesco is leading in this space by working with suppliers to understand and mitigate risks relating to recruitment and by remediating situations in which the rights of workers have been violated. We expect operational-level grievance mechanisms to be in place throughout our supply chain but we understand that, in some contexts, this may be harder to put in place for example where the broader socio-political environment adds complexity. Tesco also works with unions and NGOs across its supply chains on worker education and freedom of association. The amendments did not ban labour brokering. This includes: climate change, palm oil, environmental reporting, habitats & resources,pollutions and toxics, human rights, worker's rights, irresponsible marketing, animal rights, animal testing, factory farming,use of controversial technologies, political activities, and anti-social finance. Assessing the living wage or income gaps and identifying opportunities to support workers, farmers or communities to prosper. There are many laws governing recruitment, and if you break these laws, you could face severe penalties. in some commodity supply chains such as palm oil); shaping the scope and method as well as actively engaging with the findings. . This is because of the significant proportion of migrant workers in these sectors, in many of the countries we operate in, who may be less aware of their rights and more vulnerable to abuse. Guides to the greenest way to wash, clean, cook and more. Tesco contacted us to say that the Hong Kong and Cyprus holdings were in the process of liquidation, and emailed a statement to clarify that they were a responsible taxpayer. 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'. The Responsible Sourcing Director can ultimately reject a supplier if there is evidence to suggest they are not committed to upholding human rights. And progress against our modern slavery strategy can be found in ourModern Slavery Statement. This field is for validation purposes and should be left unchanged. Its our responsibility to ensure that we treat candidates fairly and with. 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. Read more on Hiring and recruitment or related topics Technology and analytics and Business ethics Ben Dattner is an executive coach and organizational development consultant, and the founder of . Collecting the gender breakdown of primary suppliers workforces including at management and supervisory levels. look like? Despite this, the company still held two subsidiaries based in places listed in our list of tax havens. INTRODUCTION These Principles for a Fair and Ethical Recruitment Process provide suggested best practices designed to ensure the highest standards of professionalism, fairness, transparency, and non-discrimination. . Whatever recruitment method researchers use, this should be fully documented in their ethical review application form (Word) with samples of adverts, social media posts or images attached to the application.. Ensuring sufficient capacity on the ground. More details of our worker representation work are detailed under this pillar above. All audits are conducted by specialists who are required by Tesco to go through an internal review of auditor experience and competency before completing any audits or interviews with workers in their own language. Based on reports from grievance mechanism, supplier visits, and other channels, Tesco found nine incidents at two sites in Thailand and Malaysia where workers were indebted to labor brokers through the payment of recruitment fees. Call operators speak a variety of languages, and in-call translation can be used. We are also working with &Widers worker voice technology on several pilots in high-risk sites in Spain, Turkey, Asia, and Africa. For priority products, a member of the Responsible Sourcing Team will additionally review each supplier and advise on supplier performance from a responsible sourcing perspective.

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