The German retail sector has begun to develop policies on corporate social responsibility (CSR).
Seven large German clothing and textile retailers have signed up to a voluntary code of conduct produced by the country’s retail industry body, Außenhandels Vereinigung des Deutschen Einzelhandels (AVE), which has more than 1000 members.
The seven signatory companies are C&A, Dachmann, Karstadt, Neckermann, Otto Versand, Peek und Cloppenburg and Quelle.
The code commits them to minimum standards on a range of issues, including child labour and health and safety. Member companies are asked to monitor their trading partners and subcontractors for compliance.
Trading partners who fail to fulfil the terms of the code [of Conduct for the Procurement of Goods to ensure Protection of Welfare Standards] will be expected to enter into discussions with member companies.
If they fail to improve their social performance, the code suggests member companies do no further business with them.
The code was introduced partly, says AVE, as a result of pressure from non-governmental organizations and the media.
The Foreign Trade Association (FTA), the Brussels-based body that represents European importers, is also discussing the code. The British Retail Consortium, the British Importers Association and the Ethical Trading Initiative are among bodies involved in these discussions.
Dr Konrad Neundorfer, delegate general at the FTA, said: ‘Retailers are leading the way in corporate social responsibility issues in Germany.
‘This code of conduct is the first initiative on welfare rights at a national level. We hope that the new discussions will bring these issues to the European level’.
The next step, says AVE, is to monitor how companies are implementing the code, with results expected by the end of the year.
It initially expects member companies to monitor their own compliance, but in the long term believes external bodies should take over that role.
Stefan Coust, environment director at one of the member companies, Quelle, said the company was ‘aiming to develop our own code of conduct which will fit into our company philosophy in the next year’.
The code prohibits forced and child labour, and outlaws working conditions and hours that violate human rights or labour laws.
The Berlin-based association of German employers (BDA) published a statement of principles for global social welfare standards in January this year.