For supermarkets, the story behind a product does not end when it reaches the shelf. The conditions in which it was grown, manufactured or transported are becoming a bigger issue for retailers, particularly as pressure mounts to ensure that low prices do not come at the expense of workers or the environment.
Sainsbury’s, Asda, Aldi and Marks & Spencer are among the retailers supporting a call for tougher UK laws on business supply chains. They have joined a coalition of 32 businesses, trade unions and campaign groups urging the government to introduce mandatory checks on human rights and environmental risks.
The coalition has written to ministers calling for companies to take greater responsibility for abuses connected to their operations and suppliers. The British Retail Consortium (BRC), Ethical Trading Initiative (ETI) and Corporate Justice Coalition are among those backing the campaign.
The proposed legislation would require businesses to identify risks, take steps to prevent harm and respond when problems are discovered. Forced labour, poor working conditions, pollution and deforestation are among the issues the measures would seek to address.
The campaigners believe existing rules, including the Modern Slavery Act 2015, leave gaps in corporate accountability. Their argument is that voluntary promises cannot always deliver meaningful change when companies face pressure to keep costs down and maintain competitive prices.
The supermarket supply chain under scrutiny
For retailers, putting these requirements into practice could be complicated. A supermarket may buy a finished product from one supplier, while the raw materials used to make it come from several other businesses operating in different countries. Tracing responsibility across that network is not always straightforward.
The coalition argues that common legal requirements would make it harder for businesses to ignore risks and would help responsible retailers compete on more equal terms.
Research by the Fabian Society has put the annual cost to the UK economy of human rights abuses and environmental damage linked to supply chains at around £4.4 billion.
The BRC, ETI and Corporate Justice Coalition have previously supported mandatory due diligence, calling for stronger measures to improve transparency and address unethical sourcing.
ISN analysis: Cheap products can carry a hidden cost
Riad Beladi, ISN analyst, said: “The supermarket shelf tells customers what a product costs, but it rarely tells them the full story of how that product was made. Behind a price tag there may be several suppliers, different countries and working conditions that a retailer never sees directly. That is where the real challenge begins.
“Supermarkets cannot control every part of a global supply chain overnight, but they must know where the risks are and what happens when something goes wrong. Stronger laws could help move the industry away from promises on paper towards action that can be demonstrated.”
For the retail sector, the important question is not simply whether new rules will be introduced, but whether they will make a difference where it matters. Retailers will need to work more closely with suppliers, improve traceability and respond when standards are not met.
The government now faces a choice about how far businesses should be legally responsible for what happens throughout their supply chains. For supermarkets, the outcome could influence sourcing decisions, supplier relationships and the way responsible retailing is measured in the years ahead.