Under half of UK businesses carry out due diligence in their supply chain and almost a third have never done any checks, according to research from Ernst & Young conducted after the meat labelling scandal broke.

A survey of procurement managers and directors found that only 48% of UK companies carry out due diligence in their supply chain, with a further 30% never doing any checks. More than one in 10 (14%) did not know what third-party due diligence meant.

Only 6% of respondents told E&Y's fraud investigation and dispute services team they had ever been made aware of unethical activity in their supply chain.

John Smart, partner and UK head of E&Y's fraud investigation team, said: 'The current issues around contamination of products have highlighted the importance of understanding and ensuring the integrity of the supply chain, which is a big part of the DNA of many businesses. Companies are, in most cases, responsible for the actions of third parties acting in their name; however our research reveals that firms, across a range of sectors, are not carrying out basic checks.'

'Relevant laws and regulations, the approach of enforcers and public expectation mean it is crucial for companies to adopt the same risk procedures for third parties that they would routinely enforce in other parts of their business. Firms need to ensure they have an appropriate procurement policy embedded across the organisation,' Smart said.