Ethical Co-operative Policy for Business Activities

This policy is in place to ensure that our Trading Groups follow the letter and spirit of our ethical values when making business decisions including procurement, supplier engagement, and any business developments.  We expect all Trading Groups to conduct their activities in a manner consistent with the Society’s policies, procedures and co-operative values. This policy explains how these values should be put into everyday practice.

Key points covered:

Our DOES Values and how these values should be applied in day to day business activities:

• Democracy

• Openness

• Equality

• Social responsibility

Members

As a co-operative we are owned by our members.  We aim to involve members in supporting issues that are relevant to where they work, live and learn. As a Co-operative Society, we are stronger when our members, influence, connect and co-operate in joint activities that benefit us, them and our communities.  Engaging members in democratic and economic participation is core to any consumer co-operative, and our focus is to ensure that we have a programme in place that rewards our members for their engagement.  Trading Groups are expected to carryout the following member led approach;

• Ensure that ‘the member is in the room’ when making business decisions and considering products and services 

• Promote the benefits of Membership to all relevant stakeholders

• Support the Society’s Member Reward Programme by striving to provide a fair and rewarding economic return to members, aiming to maximize member trade

• Provide information to members necessary to enable them to participate in the affairs of the business where applicable

• Educate members about the principles of co-operation

• Encourage and use Member insights to effectively and directly reflect the views of our members as owners

• Enable opportunities for members to influence business decisions, and values led products and services

 

Influencing and Capacity Building

A further feature of successful co-operation is to contribute to wider influencing and capacity building at a national and international level, to help bring effective co-operative solutions to the fore for business and societal benefit. This is why Midcounties has positive relationships with a range of organisations including: The Association of Convenience Stores; Business in the Community; Confederation of British Industry; the Chamber of Commerce; FRTS Board and numerous influential relationships within the co-operative sector itself.

Such influencing is a crucial component of showing the co-operative difference in action; evidencing the potential of successfully placing values at the heart of all manner of decisions and solutions.  We will use these networks to broker opportunities and events where members can discuss and engage together with both co-operators and other co-operatives on matters of mutual support

Society Performance metrics:

• Monitor and report the number of members we engage with both economically and democratically year on year

• Engage the next generation of co-operators through our Young Member Network

• Monitor and report on the total number of our members overall, and split by demographics and geography   

• Monitor and report our annual value invested in supporting the Co-operative Movement (£)

• Monitor and report member trade % across the Society

• Deliver member engagement events to influence Society decisions, and values led products and services

 

Customers

Providing customer satisfaction across the communities that we serve is imperative across all our businesses.  Therefore, we are committed to measuring customer satisfaction and taking action to provide continuous improvement.      

Performance metrics:

• Measure and publicly report customer satisfaction through our customer loyalty index  

• Monitor and report the number of customer compliments and complaints recorded

• Monitor and report the % of customers who agree we responded well to complaints  

 

Key questions that our Trading Groups should consider from a Democracy perspective when making business decisions include;

• How could you possibly ensure that members see your trading group as reliable, principled & genuine, trusting you to deliver what they need in the way that they expect?

• How could you possibly use member insight to deliver Values led products and services within your trading group?

We believe that a responsible business is one that maintains an open and collaborative dialogue with its key stakeholder groups. For our Society, these include: young co-operators, members, colleagues, customers, regional and national communities, the co-operative movement, and suppliers. This not only reflects our support for a connected future, but reflects developments evident within the mainstream business community internationally.   

 

Transparency

In line with our Co-operative Values, being transparent with our members around our business activity and our supply chain are core aspects of our ethical practices.  Whether it’s food provenance and animal welfare through the Best of our Counties in Food Retail, investing in ethical practices, paying the right amount of tax, or reporting on our colleague engagement levels and diversity and inclusion activity, we expect our Trading Groups to be open and transparent around our business practices and carryout the following;

• Ensure that Trading Practices are fully monitored through the supply chain, ensuring transparency of where the products / services / goods come from

• Ensure that responsible advertising is always carried out including considering how we are marketing to vulnerable groups and ensuring that we are placing advertisements responsibly

• Ensure that any investments made (i.e. pensions etc..) are sustainable by positively supporting investments in sustainable ventures and through establishing restrictions on some types of investments, including restrictions on investing in companies or ventures associated with producing tobacco, armaments, or those  whose policies, practices and record on human rights and labour standards fall below the recognised standard.

• Publicly reporting against our commitments to help tackle Modern Slavery in line with our annual Slavery and Human Trafficking Statement

• Promote two-way communication and interaction opportunities amongst our stakeholders ensuring that colleagues and members feel comfortable to have their say through the various communication channels available

• Provide a workplace culture that is open, honest, innovative, and empowered

• Recognise the contribution of each individual in helping to create a successful business

• Provide clarity to colleagues regarding their rights and responsibilities to deliver our DOES Values

• Ensure policies are in place to drive greater openness with our members on key business decisions

 

Performance metrics:

• Monitor and report the number of our local suppliers we are working with, providing transparency in the food supply chain

• Monitor and report levels of colleague engagement from the pulse employee engagement surveys

• Monitor and report key diversity metrics across our colleague base

• Report annually on the colleague gender pay gap, plus report actions that have been taken to address inequalities identified

• Monitor % attendance rate by colleagues at our Society Colleague Council meetings

 

Key questions that our Trading Groups should consider from an Openness perspective when making business decisions include;

• How could your trading group possibly help us showcase our ‘Values in Action’ to help build the Society’s brand identity?

• How are you ensuring that policies and procedures relating to your Trading Group activity reflect and are in line with our Values, enabling all colleagues within the Society to apply DOES values in practice on a daily basis?

• One of the key co-operative principles is ‘co-operation amongst co-operatives’. How are you fulfilling this principle within your Trading Group?

People

We are committed to ensuring that the people and communities providing the products and services we buy and sell are treated fairly, and that their fundamental human rights are protected and respected. 

 

Modern Slavery and Human Rights

It is the responsibility of everyone working for The Midcounties Co-operative to support with the prevention, detection and reporting of modern slavery and breaches in human rights in any of our businesses or supply chain.

Modern slavery is a crime and a violation of fundamental human rights. It takes various forms, such as slavery, servitude, forced and compulsory labour and human trafficking. The Society has a zero-tolerance approach to modern slavery and we are committed to safeguarding against the possibility of slavery or human trafficking taking place within the Society or our supply chain.

Our Society has a commitment to provide employment for vulnerable people where possible and we are a founding member of the Bright Future Co-operative, providing work placed opportunities for survivors of modern slavery.    

We expect all Trading Groups to comply with the Society’s Modern Slavery and Human Trafficking Policy, and ensure that the following aspects are upheld when carrying out any business activity;

• Avoid any activity that may lead to a breach of our Modern Slavery and Human Trafficking Policy  

• Report any concerns that you identify relating any breaches of human rights and modern slavery

• Raise concerns about any issues or suspicion of modern slavery in our supply chain

• Ensure that you follow the supplier ethical code of conduct when engaging with suppliers

• Provide a clean, healthy and safe work environment in line with best practice

• Support employment opportunities for Modern Slavery survivors through the Bright Future programme

In putting these commitments into practice, we focus on protecting the fundamental rights of workers, such as fair reward, safe and decent working conditions, and protection from forced labour and modern slavery.

 

 Performance metrics:

• Monitor and report the number of own brand supplier site audits completed through FRTS using a risk-based approach determined by supplier responses to SEDEX (Supplier Ethical Data Exchange) questionnaires, worker profiles, country of origin and sector analyses

• Monitor and report the amount of Modern Slavery survivors that are supported into the workplace as Midcounties colleagues through the Bright Future Co-operative programme 

 

Ethical trade and responsible sourcing

As a responsible retailer, we are committed to building fair and sustainable relationships with our suppliers across all businesses. We recognise the essential contribution that our suppliers can make in achieving our social responsibility aims and we expect all Trading Groups to ensure that their suppliers adhere to the Society’s ‘Supplier Ethical Code of Conduct’, with the below as a minimum requirement;

• Provide safe and hygienic working conditions

• Ensure working hours are not excessive

• Prohibit any harsh or inhumane treatment

• Ensure no breaches of human rights, modern slavery or human trafficking is taking place

• Adhere to all environmental legislation relevant to their business

• Ensure there is no colleague discrimination in hiring, compensation, access to training, promotion, termination or retirement and any other relevant activities

 

We expect all Trading Groups to monitor and report on their engagement with their suppliers in line with the above-mentioned requirements.  

We champion and campaign on ethical trade including helping support better working conditions and fair terms of trade for farmers and workers through Fairtrade, actively seeking to source power from community energy projects, and championing transparency in tax dealings through the Fair Tax Mark. 

We expect all Trading Groups to embrace ethical trade opportunities, and always consider the ethical consequences of any trade that they undertake.  We strive to ensure that we have an effective supply chain in place, working with FRTS and also direct sourcing where possible, to develop secure ethical supplier partnerships.   

 

Performance metrics:

• Ensure that all aspects of the supply chain are in line with our overall ethical practices, outlined in the Society’s Supplier Ethical Code of Conduct, and through FRTS monitor and report relevant supplier data

Specific to animal welfare in the supply chain, any food supplier’s core activities should recognise the necessity of maintaining good standards of animal welfare.  Relevant Trading Groups should seek to support companies and activities that protect animal welfare by:

• supporting British farming

• supporting the development of alternatives to animal experimentation

• reducing the reliance on animal testing of cosmetic and household products

We expect our suppliers and partners to share our commitment to sustainable development, and to help us meet these commitments by carrying out their business in a sustainable way and through the products and services they provide.

Our principles and commitments on ethics, sustainability and human rights inform the way we carry out our business. We consider these issues in our selection of products and services, and we expect our Trading Groups to operate to the highest professional standards in procurement activities, seeking to:

• ensure fairness and consistency of approach

• pursue mutually beneficial long-term relationships with our suppliers

• establish effective two-way communication with suppliers

• pay our suppliers on time, according to agreed terms of trade

• support local suppliers, localised procurement and social enterprises where relevant and possible

 

Performance metrics:

Through FRTS we will monitor and report the following;

• Through FRTS we will monitor and report performance data associated with animal welfare

• Through FRTS we will monitor and report on own brand products that carry the Fairtrade Mark

 

Colleague Engagement

Colleague engagement is a core focus for our Society, helping to attract colleagues to our business, and retain those colleagues that we have.  Diversity and Inclusion, Wellbeing, Agile Working, Colleague Rewards and communications are key to us achieving high engagement levels.  Celebrating and recognising the success of our colleagues and accelerating talent development are core to our businesses maintaining positive colleague engagement levels.  Our Society is also committed to supporting vulnerable members of society through employability skills and employment opportunities. 

To support this, we expect all Trading Groups to comply with the Society’s ‘Ways of Working’, Wellbeing and associated policies in the first instance. We expect any Trading Group activity to support the following;

• Ensure that colleagues are treated with respect and dignity in a fair and consistent way

• Enable access to learning and development opportunities that are appropriate to colleagues’ development, and support the broader Society focus on developing all parts of the career pathway including co-operative education and understanding of membership

• Support opportunities to accelerate talent development and ‘promote stars’

• Ensure that everyone is treated fairly and without bias in recruitment, secondment, promotion and progression

• Have a fair and relevant review of performance for all

• Commitment to providing a supportive working environment that maintains and promotes the health and wellbeing of all colleagues, and agile working opportunities where appropriate  

• Commitment to promoting equal opportunities in employment

• Ensure that all colleagues protect, access and process data in accordance with our Data Protection Policy and in line with General Data Protection Rules (GDPR)

• Ensure that all colleagues observe all established Society policies, practices and control procedures

• Champion the Society’s wellbeing program to encourage both colleagues and members to take responsibility for their own well-being

• Support vulnerable members of society through internship placements and employment where possible. 

• Celebrate and recognise the success of our colleagues wherever possible

• Support the Society’s approach of developing a recruitment talent pipeline through efficient, effective and quality talent attraction techniques

 

Performance metrics:

• Monitor and report the Society’s Diversity and Inclusion progress through our Diversity and Inclusion Steering Group

• Monitor and report the Society’s controllable colleague turnover (%)

• Monitor and report % of our Colleagues who have a level 2 qualification or above

• Monitor and report % of our colleagues receiving annual performance reviews

 

Key questions that our Trading Groups should consider from an Equality perspective when making business decisions include;

• How could your trading group possibly ensure that flexible ways of working are implemented to continually drive equality, efficiency, retention & attraction of the best colleagues?

• How could your trading group possibly become an industry leading example of best practice in your trading sector for Diversity & Inclusion, including being representative of the communities in which you trade?

• How will you identify opportunities and provide support to vulnerable members of the communities in which you trade through both employability opportunities as well as through your products and services?

We recognise that there are physical limits to our planet’s resources, and that any business activity that exceeds these limits is unsustainable in the long term. 

There are also ethical and social aspects of sustainable development which businesses should be accountable for, and which go beyond legislative compliance, including supporting the community places that we trade in, providing inclusive and good work for people from our local communities, and engaging our members as owners and participants of our Society.

Our Social Responsibility programme is focused on ensuring the Society achieves its ethical objectives against the four P’s – Planet, Places, People and Participation.

• People: Our commitments to Human Rights, ethical trade, inclusive employment and good work for all ensure that the people and communities providing the products and services we buy and sell are treated fairly, and that their fundamental human rights are protected and respected  

• Planet: Our commitments on environmental sustainability ensurethat wemake positive environmental change through championing and campaigning on environmental issues

• Places: Our support for local communities, education and developing young people, ensures that we involve members and colleagues in supporting issues that are relevant to where they work, live and learn, and ultimately to help build strong local communities

• Participation: Our Co-operative values and guiding principles are core to any business activity and development, ensuring that we are transparent, and our members as owners are at the heart of our Society. 

Through our social responsibility programme we ensure that our Society connects with the broader Co-op Movement and the business community to share best practice and deliver co-operative solutions.   We strive to effectively communicate and showcase our co-operative difference, including large scale PR activity and complementing our Society brand campaigns.   

 

Building Strong Local Communities  

At its heart a true co-operative organisation is socially responsible and effectively engaged with the communities it serves. We aim to involve members and colleagues in supporting issues that are relevant to where they work, live and learn, and ultimately to help build strong local communities.  We focus on supporting local communities through our Regional Community and Keeping it local programme, whilst striving to connect our members and community groups together to provide hyper-local solutions through online and physical networks.

We expect all Trading Groups to comply with the Society’s Community policies in the first instance, and to consider the following when making business decisions and carrying out business activity;

• Seek to do business in a way that supports, empowers and enriches the communities in which we buy and trade

• Seek to support co-operatives and other social enterprises

• Support the Society’s community programme through Regional Communities and Keeping it local sites, ensuring colleagues are engaged and involved in these programmes

• Support the Society’s broader community volunteering programme by engaging colleagues to take part in community volunteering opportunities

• Consider the impact in the local community when making business decisions

• Support Society campaigns in the community and help champion the Society’s co-operative difference and brands in the communities that we serve through effective communications and positive PR

• Connect with local communities for the benefit of our Society and the broader community

We work with local schools, colleges and youth services across our trading area by offering extensive activities to engage and inform young people about the values and benefits of co-operation.  We expect the following from Trading Groups to support this;

• To consider partnership opportunities with schools and educational establishments when developing business ideas, products or services, and to consider the impact on these stakeholders when making business decisions

• Champion the Society’s school’s engagement programme in the communities that we serve, helping to attract future colleagues, members and customers

• Support our school and education campaigns in the community to help showcase our Society’s co-operative difference

 

Performance metrics:

• Monitor and report the social and business impacts of the Society’s community activity

• Monitor and report on the number of young people we positively engage with

• Deliver, monitor and report in-work colleague volunteering hours, whilst maximising participation in volunteering across our Society

• Monitor and report the total number of community projects supported

• Publicly report total annual value invested in supporting the community (£)

 

Environmental Sustainability

Concern for the environment is a key element of our social responsibility agenda and we believe that being environmentally responsible plays an important part in our Society’s overall success.

The UN SDGs include a target to take urgent action to combat climate change and its impacts, which include biodiversity loss. Climate action includes helping develop affordable and clean energy, and to preserve life on land and below water.

We are committed to reducing the environmental impact of our operations, and we aim to make positive environmental change through championing and campaigning on environmental issues and promoting co-operative solutions.

We focus on the most significant environmental impacts from our business, which are reducing Greenhouse Gas (GHG) emissions and reducing waste.  We expect all Trading Groups to comply with the Society’s Environmental Policy and associated policies in the first instance, and to consider the following in day to day activity;

• Continuously identify ways to save energy, increase recycling, reduce waste in day to day operations, and ultimately reduce our total Greenhouse Gas (GHG) emissions across our operations

• Consider opportunities to ensure that our products and services are environmentally friendly, considering elements such as recyclability and the elimination of single use plastics where possible

• Remove single use plastics from any day to day operations and ensure that waste materials are being recycled

• Encourage colleagues to reduce their carbon emissions and waste, and increase recycling in the workplace

• Champion the Society’s sustainability initiatives to members and communities   

• Support the Society’s focused activity on increasing awareness and supporting action from all stakeholders to meet UN Sustainability Development Goals  

 

Performance metrics:

• Monitor and report on our total GHG across our operations, and year on year reductions

• Monitor and report on the total amount of community renewable energy projects supported through Co-op Community Energy, by working with local energy groups up and down the country and buying sustainable power off them at a fair price

• Monitor and report on our total waste recycled and total waste reduced through our operations, aiming to maximize recycling and reduce waste produced 

• Monitor and report the amount of single use plastic reduced across all our operations

• Through FRTS monitor and report the % of own brand packaging classed as easy to recycle, and report the amount of single use plastic eliminated through own brand packaging

 

Key questions that our Trading Groups should consider from a Social Responsibility perspective when making business decisions include;

• How do you intend to ensure that your trading sites are at the heart of their local communities, connecting members and helping to build strong local communities?

• How are you ensuring that environmental sustainability is embedded throughout your business including tackling single use plastics, reducing waste and saving energy across your operations?