The RSPCA Alternative awards will be open to firms in the fast-food, supermarket, fashion, cosmetics and restaurant sectors. The winners will receive a marque, which they will be allowed to display on their products.
Questionnaires will be sent to 6000 companies this week and the awards will be judged by a panel including Red or Dead founder Wayne Hemingway, British Retail Consortium director Kevin Hawkins, and Richard Johnson, presenter of BBC TV show Full on Food.
The closing date for entries is 15 August, with the awards presented on 12 October at the Natural History Museum.
The rationale behind the awards is based on research by MORI which highlighted consumer concern about how animals are treated in the manufacture of products.
The research found that more than half of all UK consumers were prepared to pay more for products manufactured by brands with a good animal welfare record.
RSPCA head of external affairs David Bowles said he hoped the awards would 'motivate companies to review their animal welfare policies for their own good, as well as for the animals in their supply chain'.