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Boots turns its back on its ethical commitments

Labour rights campaigners accuse High street chemist Boots of turning its back on workers by abandoning its ethical trading commitments. After six years of membership, Boots has left the Ethical Trading Initiative (ETI), an organisation working to improve the pay and conditions of workers making goods sold in the UK.

"Any company can claim to be ethical. Membership of ETI means scrutiny of company claims, and their supply chains, by unions and non-governmental organisations [NGOs]", said Peter Williams, speaking on behalf of NGO members of Ethical Trading Initiative, including Oxfam, CAFOD, Christian Aid, CARE, Anti-Slavery International, and Homeworkers Worldwide. “We would question why a major retailer like Boots is leaving ETI if it is committed to improving labour standards. We fear it is turning its back on workers in its supply chain.”

56 companies, including major high street retailers, with a joint turnover exceeding £100 billion and six million workers in their supply chains, are part of ETI’s growing membership. Uniquely amongst Corporate Social Responsibility initiatives, ETI is "tri-partite", involving unions representing workers in supply chains in the UK and overseas, and NGOs with specialist expertise. ETI is a forum for companies to share learning and co-ordinate action, which is essential if the more intractable labour abuses are to be tackled effectively.

“ETI member companies make serious commitments to progressively raise conditions over time, and NGOs and unions are there to see that they honour those commitments. Companies need to be in this for the long haul. Now that a substantial part of its production has been outsourced to China and other developing countries, Boots needs more than ever to be a member of ETI, if it is to ensure pay and conditions of workers making its product meet international minimum standards”, Peter told MKFTF.

“It is not the right time for major brands to be rolling back their commitments on labour standards, given it is the world's most vulnerable workers who are bearing the brunt of the global downturn. Today's ethically aware consumers have higher expectations of companies than ever before, particularly brands they trust.”

This is not the first time that a retailer which has been taken over by a private equity company has left the ETI. The UK supermarket Somerfield was bought by private equity investors in 2005 and shortly afterwards (February 2006) left the ETI. Somerfield has since been broken up, and its stores taken over by Co-op and other rivals.

ETI Director, Dan Rees commented, “We hope that Boots will reconsider its position and take its place alongside the other leading UK retailers within ETI, so that together we can continue to drive up standards for workers.”

For more information on ETI http://www.eti-ten.org/

Background facts

ETI is a voluntary initiative set up with the support of the UK Department for International Development [DFID] in 1998 which aims to implement international minimum labour standards in the supply chains of companies trading in the UK.

Alliance Boots was bought up by US private-equity house Kohlberg Kravis Roberts in 2007.

Media exposes and campaigns around working conditions in supply chains are on the increase, as are consumer boycotts. Nearly half of shoppers polled in a 2009 Accountability survey stated that they would boycott a product even if there was no other choice. The Co-operative/Accountability (2009) 'What assures consumers in an economic downturn?'

ETI Response

ETI Director Dan Rees said:

“We are deeply disappointed that Boots have taken this decision, particularly at such a crucial time for the world’s most vulnerable workers, who are bearing the brunt of the global downturn.

“Boots have made an extremely valuable contribution to ETI during their six-year membership and we believe they could have a leading role to play in the future of ethical trade.

“The days when high-profile businesses could consider ethical trade as an optional extra are now gone. Today’s ethically aware consumers have higher expectations of companies than ever before, not least of a retailer like Boots, one of the most trusted brands on the high street.

“In our view it is not the right time for major brands to be rolling back their commitments on labour standards, nor does it make good business sense.

“It is also counter to the prevailing trend, which is seeing companies adopt the ETI Base Code in ever greater numbers. As we celebrate our tenth anniversary, ETI’s membership is increasing at a rate of 25 per cent a year.

“We hope that Boots will reconsider its position and take its place alongside the other leading UK retailers, so that together we can continue to drive up standards for workers.”