It was supposed to be a salvation, but now it is beginningless. In a letter to Swiss parliamentarians, the Migros boss praised his company as a signatory to the UN’s responsible trade agreement. Problem: Migros has not been a member of this agreement since 2019, partly due to costs.
The cooperation between Migros and Socar lies behind the Zumbrunnen gaffe. Migrolino, a subsidiary of Migros, has signed a franchise agreement with the state-owned Azerbaijan oil company for the operation of approximately 70 Migrolino stores at Socar gas stations. This means that Migrolino stores are run by a Caucasian state company, profits go to Azerbaijan.
Socar received negative attention on social media
Collaboration is sensitive. Azerbaijan is a totalitarian autocracy. Ruler Ilham Aliyev is waging war against Armenia in the Nagorno-Karabakh region. Socar, on the other hand, attracted attention on social media with his war propaganda.
On September 16, National Council Member Stefan Müller-Altermatt wrote a letter to Migros boss with his deputies. In it, he accuses him of financing the war against the neighboring country of Azerbaijan with the cooperation of Socar. And she asks him to stop working together.
Just a week later, Zumbrunnen responded. In an email to politicians, he defended his cooperation with Socar, but stressed: “Migros fundamentally condemns all human rights violations.” Respect for human rights all over the world is very important for the cooperative. Then comes the sensitive sentence: “As a signatory to the UN Global Compact (…), we are voluntarily committed to implementing high social and environmental standards in our supply chain.”
Migros is not on the UN list
Everyone who signs the UN treaty commits to minimum social and ecological standards. Currently 207 Swiss companies are participating, including UBS, Novartis and Glencore. However, Migros is not on this list.
The retailer, like Coop, left in 2019. Up to this point, signatory companies were free to decide if they wanted to make a financial contribution. A membership fee was then requested.
The amount of the contribution depends on the turnover. In the case of Migros, approximately 10,000 francs will be paid annually. Migros never paid the price for this. And it was removed from the list of signatories.
CEO claims otherwise
Why does CEO Zumbrunnen claim otherwise in his letter to parliamentarians? Migros Spokesperson Tristan Cerf: “We wrote in the letter that Migros signed the agreement. This statement expresses the commitment of 2006, when Migros officially adhered to the principles of the UN Global Compact.»
At the same time, Cerf admits that Migros decided against the paid membership that was put into effect at that time in 2018. The reason: “Because the issues focused there, such as the environment, human rights, social standards and corruption, are already extensively covered by other key initiatives.” Regardless of its membership, Migros remains committed to the principles of the UN Global Compact.
Central National Councilor Stefan Müller-Altermatt was not satisfied with this answer. “A CEO can no longer forget that he is not on the list. This does not suit Migros.”
Migros causes irritation
Green State Councilor Lisa Mazzone, who signed the letter to Zumbrunnen, is also offended: “Obviously Migros is uncomfortable working with Socar. Otherwise, Mr. Zumbrunnen would hardly have spread unconfirmed information. » Politicians demanded Migros reconsider its decision to withdraw from the UN agreement. it does.
Zumbrunnen won’t be able to deal with that much anymore. He announced his resignation.
He will step down as CEO at the end of April 2023.