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New Supply Chain Transparency Law To Affect Food Companies In UK

By Publications Checkout
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New Supply Chain Transparency Law To Affect Food Companies In UK

Supermarkets and FMCG suppliers trading within the UK will, because of new legislation, be required to publish on their websites detailed information about their supply chains, the Guardian reports.

The required transparency must come in the form of stated methods retailers and food companies are taking in order to avoid slave labour and exploitation within their supply chains.

It is hoped that the new legislation, which was passed in March of this year, will encourage businesses to adopt a more proactive approach towards remedying malpractice within their logistical networks.

Although the legislation does not force businesses to change their modes of practice, Jessica Burt, one of Britain’s leading food law solicitors, wrote in the Guardian that it will still spur companies into action, as a lack of supply chain transparency is generally damaging to how the public perceives brands.

She writes, “The government is expected to publish information on the size of companies that will be affected and the kind of information that this statement should contain in the next few weeks. The turnover range that has been consulted on is from £36m (which could include around 12,000 businesses) to £1bn (which could involve just over 700 businesses). This will apply globally to companies carrying out ‘any part of their business’ in the UK.

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“The intention is that scrutiny will come from the top, with the requirement that any statement should be signed off by the board. This will be a very public display of the responsibility and transparency the company adopts within its supply chains. Companies affected will need to disclose the steps they are taking to ensure that slavery does not occur anywhere in their operations.”

© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly.

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