Fat-cat Tesco: putting on the pounds at farmers' expense13 June 2003
A new Friends of the Earth report for Tesco's annual shareholder meeting reveals how the supermarket is putting profit before people and the environment, despite the claims made in its annual and corporate social responsibility reports.
Friends of the Earth was joined at the AGM by individual farmers and representatives from Bananalink, Corporate Watch, farm, Grassroots Action for Food and Farming, the Small and Family Farms Alliance, and the National Sheep Association, who all have concerns about the way the supermarket giant behaves.
The report includes personal responses from farmers, who say that Tesco has boosted profits at the expense of farmers, and who argue this has affected environmental and animal welfare standards. The report also highlights the environmental impacts of Tesco's global business, with fruit and veg flown around the world, increasing the need for packaging and contributing to climate change; and questions whether Tesco's Healthy Living range is as healthy as Tesco suggests.
Tesco is being targeted because of the power it wields as the largest UK supermarket with 1,982 stores in the UK. Company profits for 2002-03 stood at £1.4 billion, while Tesco boss Terry Leahy receives a pay package of £2.8 million - providing a sharp contrast to the average farmer's salary (including subsidies) of £11,107.
"Tesco claims to be committed to UK farming and to protecting the environment," said Friends of the Earth Real Food Campaigner, Sandra Bell. "But the reality is that it profits at the expense of farmers and the environment. It is time fat cats likes Terry Leahy were forced to face their responsibilities to stakeholders and be held accountable for the damage their companies cause."
Friends of the Earth is calling for changes in Company Law to force companies to be accountable to stakeholders as well as shareholders, with duties placed on directors to recognise these rights.
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