Jointly for higher Standards
An increasing number of international standards in our globalised economy guarantee that manufacturers fulfil quality, social and ecological minimum requirements. A programme shaped by Migros now ensures more efficiency and transparency in this system.
Migros offers some 40'000 items, many of which come from abroad and overseas. How can the retailer ensure that these products are made under correct conditions? This is ensured by international standards that govern in a unified way the requirements which the products must meet. Migros demands from its suppliers of fruit, vegetables and flowers/plants the GlobalGAP or SwissGAP standard (GAP: Good Agricultural Practice). GlobalGAP is a global standard for good agricultural practice, SwissGAP is an adapted version for Switzerland. As of last year, this standard can also be applied to sea production from aquaculture. GlobalGAP ensures that producers worldwide comply with uniform standards in food safety and environmental protection. With GRASP (Global Gap Risk Assessment on Social Practices), a supplement to GlobalGAP in the social area, acceptable working conditions are now also guaranteed. In 2010, 98% of fruit and vegetable suppliers and 85% of flower and plant suppliers were certified by GlobalGAP or SwissGAP standards.
BSCI: Regular inspections
Migros wants to be sure that its goods are produced under humane conditions, i.e. without child labour. For this reason, it created a code of conduct in 1997 that commits its business partners to comply with minimum social requirements. Migros has also paved the way for other companies: the rules were later included in the BSCI standard (Business Social Compliance Initiative), which has become commonplace. Business partners must not only commit to observing the standards in writing, they are also inspected. Independent companies conduct regular inspection visits, so-called audits. 190 Migros suppliers had to undergo an audit last year. As of 2010, all national fresh food suppliers are also included in the process.
Implementation of BSCI Code of Conduct 2009 - 2010 (estimates)
Non-Food 2009 | Non-Food 2010 | Food + Freshness 2009 | Food + Freshness 2010 | |
Signing the Code of Conduct | 92% | 95% | 75% | 90% |
Selfassessments | 133 | 75 | 6 | 9 |
Audits (+Reaudits) | 186 | 180 | 5 | 10 |
GSCP: A new reference system for social and environmental standards
The standards are a model of success: they are expanded continuously and an increasing number of companies are applying them. But their success has become a problem. Because so many standards have been created, they overburden both traders and manufacturers. Experts estimate that more than 1'000 standards exist globally today. To shed some light on this jungle, Migros took the initiative. In 2006 it created the Global Social Compliance Programme (GSCP) with the world's four biggest retailers to harmonise the numerous individual initiatives and standards. The companies associated with the GSCP now represent total annual sales of some EUR 1'000 billion. Thanks to its experience with standards, Migros takes a leading role on the Executive Council. The GCSP defined a reference system last year with which the standards can be compared. This hugely increases transparency in the procurement market and allows manufacturers to cooperate far more efficiently with dealers.
Eco: Environmentally friendly textiles
The global textiles industry is particularly strongly decentralised, and many production steps are required to achieve the finished article. To ensure orderly environmental conditions in this sector, Migros applies the Eco standard. It prohibits the use of hazardous and polluting substances in production. In every production step – from weaving to tailoring – the chemicals are documented and checked for their harmlessness. Currently, some 60 per cent of all items of clothing and home textiles at Migros meet the Eco guidelines – some 5'500 products. But it is not always the chemicals that cause problems. Sand blasting, which is used for jeans, in particular, to achieve a worn appearance, came in for criticism last year. If this technology is applied manually and without safety precautions, hazardous dust particles can enter workers' respiratory tracts. Although Migros is not aware of any abuse by its own suppliers, it decided to no longer buy any of the controversial products beyond the Eco standard. By autumn 2011, it will have removed all sand blasted jeans from its range.