Bernadette Byrne, Bord Bia – Paris Office 

On the 6th November, representatives of French retail multiples and the agri-food industry launched the new Responsible Supplier Relations Label in the presence of the Minister for Agriculture, Stéphane Le Foll, and Pierre Pelouzet, the National Ombudsman for inter-company relations. The objective of the label is to distinguish French companies who demonstrate sustainable and balanced relations with their suppliers. It is the only label of its kind awarded by the Government, and is valid for three years. The Label is an extension of the ten responsible procurement commitments drawn up by the Charter for Responsible Supplier Relations in 2010, which defines best commercial practice. It is also based on a list of 36 bad commercial practices identified by the Volot report.

The Charter, which totaled 478 signatories at the end September, has a purchasing power estimated at €450 billion. The Charter has now been signed by the French Agri-Food Federation, The Cooperative Society, The Retailer Federation, Système U, Auchan, Carrefour and Cora. Intermarché and Casino are committed to signing soon, however, it is unlikely that Leclerc will get involved. The label commits the signatories to voluntary good practices, such as the "maintenance of local production", or "privileged mediation" to deal with disputes. Other key areas include protecting the interests of suppliers and subcontractors, the impact of procurement on business competitiveness, integrating environmental and social concerns into the procurement process, and establishing the right conditions for a strong supplier subcontractor relationship.

The good news for suppliers is that among the bad practices to be avoided are the cancellation of orders "without notice or compensation, except for legitimate reasons", and "long-term contracts without a price adjustment clause (raw materials, regulatory requirements, etc.)."

For more detailed information on the Charter click here.