Giving special emphasis to local supplies from SMEs

To contribute to the economic and social development of the areas where it operates, the Carrefour group seeks local sourcing for a substantial portion of supplies and long-term partnerships with SMEs.
Many countries have thus developed own brand or banner brand lines that offer regional products: Reflets de France (France), Nuestra Tierra (Spain), Terra d’Italia (Italy), Souvenirs du Terroir (Belgium), Tierra de Colombia (Colombia).

Making our suppliers special partners

Ever since the launch of our own-brand lines, our approach has been to join forces, wherever possible, with small local firms, forming relationships based on the principles of long-term sustainability, transparency and a fair reward for the goods or services supplied. Among the 28 SMEs that participated in the launch of our own-brand products in 1976, 23 are still supplying us to this day.
In France, SME suppliers manufacture 80% of Carrefour products, accounting for some 35% of hypermarkets' turnover.
To develop special relationships with their suppliers, some countries have established supplier clubs (Carrefour Quality Line, Reflets de France) with liaisons systems to share know-how. Others organize forums or conventions with their suppliers every year.
The Carrefour Group draws on its expertise to help these SMEs improve their production process in terms of quality and safety through audit policies. Actually, these supplier audits conducted by Carrefour are followed by action plans arranged with suppliers to improve the production process.
In addition, based on the analysis of the claims reported to its customer services, the Group shares information with its suppliers on the points for satisfaction and improvement.
Finally, the Group also offers to its French SMEs partners export assistance, thus opening the doors for international growth.

Promoting supplier responsibility for the respect for social rights

As soon as 1997, the Group has decided to work in partnership with the FIDH ( International Federation for Human Rights) to implement a wide-ranging programme aimed at ensuring that our suppliers use neither child nor forced labour and that they adhere to appropriate standards of employee welfare. Furthermore, owing to the current political climate in that country, we have also stopped buying goods produced in Myanmar (Burma).

In 2000, the Carrefour group has adopted a Social Charter (revised in 2005) along with a set of benchmarks and an audit methodology so as to monitor suppliers. Three audit steps are planned:

1. an internal control conducted Carrefour’s quality teams
2. an external control conducted by professional auditors and set to include initial and regular re-audits
3. random check conducted via Infans, an association created through cooperation between Carrefour group and the FIDH where the latter represents the majority of interests

Thanks to re-audits, it is possible to assess genuine improvements with regard to commitments through the corrective steps implemented.
As of the end of 2005, 1,070 social audits had thus been conducted, among which 872 initial audits and 198 re-audits. In 2005 alone, the Group international Purchasing department ordered 474 audits in 10 countries. Emphasis was also placed on re-audits, which accounted for 23% of the total, representing 106 re audits.

The results of this approach are pooled with French retailers as part of the Social Clause Initiative (ICS), a plateform for exchange.
In 2005, the Group Carrefour took a position in favour of an international standard aimed at clarifying the scope of corporate social responsibility and the division of responsibility between government and private players in order to establish clear playing rules that are applicable to everyone.

Respect for the Kimberley process for diamonds sourcing

The Carrefour group ensures that the diamonds sold in its stores come from a legal source, in compliance with the United Nations resolutions, and that they are not "blood diamonds". This commitment to respect the Kimberley process* is included into all contracts signed by its suppliers.

* Kimberley process: initiated in 2000, it aims at developping ways to prevent blood diamonds from entering the legal markets. It took effect on 1 January 2003 and established an international system certifying uncut diamonds.

 

See the social Charter :