Watchdog safeguards collaborative economy - clipboard in front of business people

Watchdog safeguards the collaborative economy

Posted by David Hunt on June 28, 2013 11:47:00

Ramping up of grocers code is an inevitable step in the development of co-efficient trading.

New supermarket watchdog Christine Tacon certainly set her stall out when she announced her desire to fine retailers a percentage of their turnover for mistreating suppliers.

It was the latest pugnacious move from the rhetoric heavy Tacon who earlier revealed her determination to ‘make sure there is no bullying’ from the supermarket big-hitters.

But while it would be easy for the major supermarkets to see this latest statement of intent from Tacon as a potentially restrictive move on the part of the government and cause for concern the wider picture reveals this latest development as a milestone in the new collaborative economy of the 21st century. Beyond the tub-thumping and the emotive language of fines, at its heart this announcement represents a desire for more transparent and efficient trading for the benefit of all parties.

The central basis of the modern collaborative economy is that businesses and their trading partners must move forward as one. To this end the grocers code introduced three years ago does not seek to restrict, govern or control the prices retailers agree with their suppliers but is there ultimately to ensure and build trust and certainty between trading partners.

This is a natural evolution in the collaborative economy

This is a natural evolution in the collaborative economy that sees all parties working together for a more co-efficient and co-creative business landscape.

Indeed even Tacon herself has said talk of fines is really a last resort to be used as only the ‘ultimate deterrent’ and that she hopes ‘we don't get to that stage’.

Her initial actions will concentrate on recommending the rules governing when investigations should occur and maximum fines able to be imposed.

The latest recommendations will undergo a 12-week consultation and the new system must be in place before Christmas Day, before which MPs will have to approve the maximum fine.

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