Dixons threatens to ditch firms for ethical failures

21 May 2003
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22 May 2003

High-street electrical retailer Dixons has told almost half of its Asian suppliers to improve their ethical standards or lose all future business.

At least 35 suppliers of own-brand products to the group, which includes Dixons, Currys, PC World and The Link, failed inspections of working conditions in their factories conducted last year as part of a new ethical purchasing policy.

Under the terms of the charter, suppliers that fail inspections are given a month to produce a plan of action to raise their standards.

If they fail to meet Dixons' demands within a year, they can be struck off its approved list. Those that have failed in the first year of factory audits have signed up to a corrective programme to improve in areas such as machine safety, pay and working hours.

The suppliers, based in countries including China, Taiwan, Korea, Malaysia and Japan, produce everything from kettles to televisions for sale in the group's 1,370 European stores.

SMmay2003

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