business news in context, analysis with attitude

• In the UK, the Telegraph reports that an investor group is pressuring Tesco “to appoint an independent auditor to assess its ethics in trading with suppliers,” insuring that its suppliers’ employees are guaranteed “decent working conditions, a living wage, job security, freedom of association and collective bargaining.”

Tesco originally rejected the resolution when it was proposed by a single shareholder, so that investor then lined up 100 other investors to back him, when forced Tesco to take up the measure during its annual meeting next month.

Tesco responded with the following statement: "We will give full consideration to any submission he or any other shareholder might make. Fair treatment of workers in our supply chain is extremely important to us."
KC's View:
The fact is that these kinds of issues will become more and more important to both shareholders and shoppers, and it is critical for companies to take them seriously.