Marks & Spencer

Bus 401
Sec: 06
Prepared For:
Barrister Saheen Ahmed
Course Instructor
North South University
Prepared By:
Zarin Tasnim Arshi 10!00"#!0$0
Muntasir Shams Neha% 101!0&'(!0$0
Na)ee* Mahmud 10!010(!0$0
Masud Imam 101!0''!0$0
Md+ Thashin Is%am 10!00#(!0$0
Nuru% A*im ,i)at 101!0'"-!0$0
Submission Date: 07-04-14
Company .vervie/0
Marks & Spencer is one of the UKs leading retailers. They offer stylish, high quality, great
value clothing and home products, as ell as outstanding quality food, responsi!ly sourced from
around ",### suppliers around the orld. $t has employees over %&,### people, in the UK and
a!road, and has around '"# UK stores, as ell as an e(panding international !usiness.
The ground of marks and Spencer ere laid !ack in &%%) !y Michael Marks and Thomas
Spencer ho started selling in small ton markets of *orthern +ngland. Marks & Spencer is the
,ritish largest retailer ith four main divisions- The target market of Marks & Spencer is middle
to high class consumers in ma.or cities. /rom &0&) onards the company made a lot of
technological advancements and !ecause of its high quality and medium prices Marks & Spencer
soon associated ith quality and value a!le !y its customers.
M&Ss CSR Vision:
Mark & Spencers one of the significant 1S2 vision is to !e the standard hich all others are
measured. $n all their products & services they are trying to make aspirational quality accessi!le
to all. Mark & Spencer is guided !y a commitment to quality, value, service, innovation & trust.
Mark & Spencers primary focus is on understanding and meeting the customers needs
consistently, in an increasingly competitive retail environment. M&S place real importance on
creating a place to ork that inspires and reards the colleagues & other co3orkers properly.
M&S ant their orkforce to reflect the diversity of the people that shop ith us. "'4 of the
employees are aged over '#, and "%4 under 5# and the ma.ority are female 67%48. 9verall, the
orkforce reflects the ethnic make3up of the UK population ith &54 coming from ethnic
minorities. The overall motive of the company to say in such retail !usiness-
Vision
The standard against hich all others are measured
Mission
Making aspirational quality accessi!le to all
Values
:uality, ;alue, service, innovation and trust
Mark & Spencer1s Corporate Socia%
,esponsi2i%ity 3a%ue 4roposition0
Marks & Spencer has a strong tradition of 1S2 and see it as integral to ho they do !usiness.
The founders of the company !elieved that !uilding good relationships ith employees,
suppliers and ider society as the !est guarantee of long3term success. This remains the
!ack!one of M&Ss 1S2 activities. Managing 1S2 ill allo the company to identify potential
risks to the 1ompany and respond to areas of performance here the company fall !ehind. More
importantly it also means the company can identify opportunities to differentiate it selves from
the competitors. 1S2 can help the company to dra shoppers to 1ompanys stores, attract and
retain the !est staff, make the company a partner of choice ith suppliers and create value for the
shareholders. The approach is !uilt around three principles and a frameork developed !y
1ompanys ,oard3level 1S2 1ommittee & these 5 principles are-
&. Taking care and acting responsi!ly in delivering high quality products and services.
". 1reating a great place & ork environment to ork.
5. <elp in making the communities good places in hich to live and ork.
1. Taking Care And Acting Responsibly In eli!ering "ig# $uality %roducts And
Ser!ices:
The ays in hich Marks & Spencer products and services connect ith people, the
environment and animal elfare ill alays !e one of the most demanding 1S2 challenges.
M&S ants to sho that the goods are produced in an ethically and environmentally responsi!le
manner. To do this and respond to the customers needs and e(pectations, M&S must keep sight
of the ide range of ra materials, production processes and countries of operation involved in
producing and selling the goods. =here the products carry the Marks & Spencer la!el, M&S
have the unique a!ility to practice good 1S2 across M&Ss product range. The diagram !elo
shos ho M&S influence the products at different stages of their >lives. M&S have direct
control over the to key parts of the !usiness ? distri!ution and selling. ,ut the company can
also influence most other aspects of the production and use of the products.
6M&S, "##)3"##'8
". Creating A &reat %lace & 'ork (n!iron)ent To 'ork:
,y producing, distri!uting and selling M&S products and services the company creates
employment opportunities in the UK and overseas. ,ut the company ants to do more than .ust
provide .o!s. The challenge is to provide a mi( of !enefits for everyone ho orks at Marks &
Spencer hile also supporting the operational needs of the !usiness. The company seeks to use
the employment policies to create @a great place to orkA, !ringing !enefits to the 1ompany,
employees and society as a hole. The company ants colleagues to feel part of a !usiness that
@does the right thingA. 1olleagues are no assessed and rearded against 1ompanys @ays of
orkingA principles hich encourage everyone in the 1ompany to-
B Think customer
B ,e passionate a!out product
B ,e one team
B 9n their part in delivering results
B ,e honest and confident, listen and learn
Cay and !enefits are clearly important to 1ompanys colleagues !ut so are good orking
relationships.
The employee representation forums ? knon as ,usiness $nvolvement Droups ? play an
important role in improving 1ompanys operations !y giving colleagues a say in ho M&S do
things. E program of staff surveys also provides a ay for everyone to say ho they think M&S
are doing. M&S ant to promote diversity and ork hard to make 1ompanys recruitment
inclusive. There is intense competition for talent and the company aim to !e an @employer of
choiceA to attract and retain the !est. Croviding a range of fle(i!le options for colleagues to
!alance their ork and home life helps to encourage diversity. M&S try to em!ed the same
approach to employment amongst 1ompanys suppliers, franchisees and other !usiness partners
through 1ompanys Dlo!al Sourcing Crinciples. =anting to !uild a longer3term relationship ith
M&S is urged to attain the more testing standards of the UKs +thical Trading $nitiative ,ase
1ode.
*. "elp In Making T#e Co))unities &ood %laces In '#ic# To +i!e And 'ork:
The company recogniFes the o!ligations to the communities in hich M&S trade. M&Ss
founding mem!ers of ,usiness in the 1ommunity and remain an active mem!er. The companys
relationship ith communities is interdependent. Successful retailing requires economically
healthy and sustaina!le communities. Et the same time, as a ma.or retailer in the UK and
orldide, M&S provide employment and products and services and often !ecome an important
part of the fa!ric of the high street. M&S place much emphasis on the stores, the location,
design, construction and activities. E >Store of the /uture pro.ect has helped to improve the
environmental standards M&S use to locate, !uild and refur!ish them. Gay3to3day operations are
managed ithin an overall compliance system that includes emergency planning, energy and
ater usage, health and safety, aste disposal, recycling, recovery of shopping trolleys and
donations of unsold food to charities. $n addition to a program of store self3assessments, parts of
the system are revised !y 1ompanys internal audit team !ased on here M&S think 1ompanys
performance might need improving. M&S are also active in a ider sense. 1ompanys
philosophy of @<elping others to help themselvesA is a!out trying to help people ho M&S
!elieve in turn ill pass the !enefits on to others. This approach guides 1ompanys choice of
community program as ell as the support M&S provide to employees ho ish to volunteer. E
recent development is 1ompanys groing cooperation ith suppliers and !usiness partners in
community programs. Marks & Start, 1ompanys ork e(perience programs for e(ample,
involves communities, employees and a groing num!er of suppliers, all orking together
toards a common goal.
Mark & Spencer1s Corporate Socia%
,esponsi2i%ity Con)i5uration0 67o/ the
Company Act80
Society is changing fast and M&S kno that it is not enough to rely on the 1S2 heritage. The
company must adapt continuously to changes inside and outside of the !usiness. 1orporate
strategies require commitment from the top and systems to ensure they can !e managed at every
level of the 1ompany. Thus the entities that are orking hard in making such responsi!ilities to
take in in real manner are descri!ed !elo-
CSR Co))ittee:
The 1S2 1ommittee ? one of four ,oard level 1orporate Dovernance groups ? provides
leadership on this agenda. $t meets at least three times a year and its activities have included the
development of the company 1S2 frameork and Crinciples, hosting a feed!ack event for
representatives of stakeholder groups, and identifying internal sponsors of key issues. Hooking
ahead, the 1ommittee aims to further integrate 1S2 systems across the 1ompany and to revie
performance on key initiatives. $t comprises- group chairman, e(ecutive director of finance,
group secretary and head of corporate governance, director of communications, creative director,
head of technology, and food division head of 1S2 secretary.
(,ecuti!e Co))ittee:
The companys +(ecutive 1ommittee, receives regular updates on 1S2 so that decisions can !e
made on any ma.or changes to operational policy. $t is the role of this committee to run the day3
to3day operations of the 1ompany and to help formulate strategy and action hat has !een
agreed ith the !oard.
CSR -oru)s:
To netorks of senior managers support the 1S2 1ommittee and help to drive the companys
commitment deeper into the !usiness. E ne, store !ased 2etail /orum met for the first time in
early "##) and has !een tasked initially ith overseeing the Marks & Start ork e(perience
program. $n future it ill revie and improve a ider range of 1S2 activities in the companys
stores. The <ead 9ffice /orum, formed to years ago, consists of representatives from across
head office !ased functions that have supported the integration of 1S2 across the 1ompany.
They also provided a >sign3off process for agreeing the contents of this 2eport. The /orum ill
continue to conduct further stakeholder research and engagement as ell as share !est practices
across the 1ompany.
i!isional and Area CSR Acti!ities:
To ensure our 1S2 efforts tackle the right issues in different !usiness areas, M&S have separate
strategies for /ood, 1lothing 6including ,eauty8, <ome, Money 6financial services8,
$nternational /ranchises and store design. The priority in the <ome division, for e(ample, is the
sustaina!le sourcing of ood. $n 1lothing, cotton and dyeing are high on the agenda. These
strategies are at different stages of completion ith some already supported !y action plans and
targets and others yet to !e formally agreed. $n "##)I#' the company aims to use these strategies
to develop action plans across all areas of the !usiness. This ill improve the companys a!ility
to assess ho they are performing against the e(pectations of the stakeholders.
CSR Tea):
M&S have a dedicated 1S2 team, hich helps to run the 1S2 1ommittee and /orums and
oversees the development and management of 1S2 strategies and key pro.ects. $n the last fe
years, this has included an e(tensive program of 1S2 customer research and consultation,
developing the content for this 2eport, managing a cross company revie of ood sourcing and
launching the Marks & Start ork e(perience program. The 1S2 team also takes the lead in
ena!ling consultation ith many e(ternal organiFations. $n "##)I#', the 1S2 team plan to
conduct and facilitate further stakeholder research and consultation.
CS, Activities o) Marks & Spencer0
Marks and Spencer cites in its reports a num!er of reasons hy >1S2 is integral to our !usiness
and informs everything e do in good times and !ad. $n particular, the company emphasiFes its
strong tradition of 1S2- >our founders !elieved that !uilding good relationships ith employees,
suppliers and ider society as the !est guarantee of long3term success. Eddressing 1S2 is
considered an intrinsic part of good management, alloing the company to identify potential
risks, respond to shortcomings and recogniFe opportunities to differentiate itself from
competitors. Marks and Spencer considers 1S2 management to !e !eneficial not only in creating
value for shareholders, !ut also in attracting shoppers, attracting and retaining staff and !eing a
partner of choice.
Marks and Spencer has structured its reports using the three principles of its approach to 1S2,
developed !y its ,oard level 1S2 1ommittee in "##"-
Crinciple &- Croducts ? relates to :uality Management SystemsJ Dlo!al Sourcing
CrinciplesJ ethical tradingJ animal elfareJ responsi!le productsJ sustaina!le sourcing.
Crinciple "- Ceople ? relates to orkplace Dlo!al Sourcing CrinciplesJ ethical tradingJ
community investment
Crinciple 5- Claces ? relates to energy, ater and asteJ transport
$n "##K they came up ith a ne a 1S2 policy named >Hook !ehind the Ha!el. Such >Hook
!ehind the la!el marketing campaign ran throughout the year. $t as designed to descri!e our
approach some ma.or issues such as sustaina!le fishing, animal elfare, healthy eating and
trading fairly. The aim of this campaign as to highlight to customers the various ethical and
environmentally friendly aspects of the production and sourcing methods engaged in !y M&S.
<oever they !ought a hole ne change in "##7 on the 1S2 activities they used to conduct
previously. Marks & Spencer initiated a hole ne concept of a 1S2 pro.ect called >Clan E
hich entails >doing the right thing. Clan E is a!out systematically making every aspect of the
!usiness, supply chain and customer use and disposal of M&S products more sustaina!le. Marks
& Spencer launched Clan E in Lanuary "##7, setting out &## commitments to achieve in ' years.
$t has no e(tended Clan E to &%# commitments to achieve !y "#&', ith the ultimate goal of
!ecoming the orldMs most sustaina!le ma.or retailer. Ell &%# commitments ere made
folloing consultation ith stakeholders and they tried to cover all of the social and
environmental issues facing the retail industry. Clan E initiative have 7 main pillars through
hich they desire to conduct their 1S2 activates in an unique ay than others. These are-
So far, they have achieved &50 ith 5& on plan, ' !ehind plan, ) not achieved and one cancelled.
These commitments are more ela!orated !elo-
1. In!ol!e Custo)ers in %lan A:
M&S recogniFes that the customers are at the core of their success to achieve Clan E in all
aspects. Thus they are orking hard to e(plain ho many of the M&S products customers !uy
contri!ute directly to Clan E, and making it easier for them to get involved in Clan E activities.
M&S desires to make sure that all of the ".7 !illion individual M&S products they sell each year
have at least one >Clan E quality !y "#"#. $n addition they are also determined to help & million
customers to create their on personal Clan E !y "#&' and 5 million !y "#"#. /urthermore M&S
ants to run a continuous program of Clan E marketing communications, to encourage
customers to take action.
.. Make %lan A "o/ M&S do 0usiness:
M&S desires to conduct their 1S2 activities included >the !usiness they do !y integrating Clan
E into every aspect of their operations including the products they develop and sell, the stores
they !uild and the ay they ork ith their suppliers and engage their employees. They have
integrated Clan E across many parts of their !usiness. This year they have opened their !iggest
greenest Sustaina!le Hearning Store to date at 1heshire 9aks and generated a net !enefit of
N&5'm from Clan E hich as availa!le to !e reinvested in the !usiness. To support this aim,
ere going to- engage their employees in Clan E, integrate Clan E into their systems and
processes, !uild Clan E into every aspect of the construction program, engage their !usiness
partners in Clan E and create a culture of innovation on sustaina!ility.
*. Cli)ate C#ange:
M&S recogniFes the increase threat of climate change and its haFardous impact in the
environment. Thus M&S aims to make their operations car!on neutral. This ill impact every
area of their !usiness from their stores and offices through to our arehouses, delivery fleets and
all !usiness travel in the region.
M&S plan to reduce energy consumption and ma(imiFe the use of renea!le supplies first, only
!uying car!on offsets as a last resort. ,ecoming car!on neutral ill !e the equivalent of taking
&##,### cars off the road. They ill ork to source as much food as possi!le, reduce air shipping
and develop energy efficient, lo3car!on products. M&S also aims to help suppliers and
customers to reduce their 19
"
emissions !y orking ith the *ational /ederation of =omens
$nstitutes, The 1limate Droup and ==/.
1. 'aste:
M&S also recogniFes their responsi!ility to the society !y having a desire to reduce the aste
they produce. They aim to send no aste to landfill from their stores, offices and arehouses
from all around the orld. This only includes all the construction aste from !uilding activities.
They ant to reduce our use of packaging and carrier !ags, and find ne ays to recycle and re3
use the materials they have. They also have committed to orking to cut the eight of non3glass
packaging !y a quarter, carrier !ags !y a third and to setting up schemes to generate energy from
unsold food. $n addition they have a longer3term am!ition that all of the packaging and products
they sell particularly used clothing ill !e recycla!le in most parts of the UK.
2. 3atural Resource:
M&S is also focused on having more sustaina!le natural resources means they aim to make
!etter use of the materials already availa!le to us. Their intention is to make sure that the key ra
materials are sourced in a ay that allos them to !e naturally replenished !y the environment.
$n case of the concern for animals they also have to uphold and improve standards of elfare.
They aim to triple their sales of organic food and launch ranges of organic cotton, linen and ool
clothing. They also look to make ranges of polyester clothes from recycled plastic !ottles rather
than oil. They also intent to convert all their fresh turkey, geese, duck and pork to free range, and
ensure that all their fish meet independent environmental standards. Similarly, they ant to make
sure that all the ood they use in our products and around the !usiness meets rigorous
independent standards. They also desire to help the farmers and livestock producers meet
independent environmental standards. $n the end they target to cut ater usage !y "#4 and ill
help suppliers make cuts too.
4. -air Trade:
M&S recogniFes the important of suppliers and la!ors in their 1S2 activities. They are
committed to support their suppliers in managing la!or standards in our supply chain. E ne
Supplier +(change ill help to develop and share !est practice and our suppliers of clothing and
home products ill !e given a gold, silver or !ronFe rating. M&S also aims to increase the
num!er of people they have !ased in countries of production and introduce unannounced audits.
They plan to e(pand our range of >/air trade food and clothing and convert "# million garments
to >/air trade certified cotton. Their Milk Cledge, offering farmers a guaranteed price ill !e
e(tended into other types of farming here possi!le. Their >Marks & Start ork e(perience
program ill continue helping disadvantaged people get into .o!s through ork placement in the
UK and overseas. M&S also aims to introduce ne initiatives on environmental education and
helping international communities. $n the end they ish to continue to support ,reakthrough
,reast 1ancer, the Crostate 1ancer 1harity and Shelter.
5. "ealt# and 'ellbeing:
,eing a versatile retailer M&S aims to increase their >+at =ell concept to represent half of their
food varieties, up from the current 5#4. They ill continue to ork to cut salt ahead of /SE
targets and use only naturally occurring colors and flavorings in kids seets and cakes. M&S
ants to replace displays of childrens confectionery at food tills ith other products. They aim
to !uild on the training given to our &,)## <ealthy +ating Edvisers so that everyone ho orks
in their food halls has a good level of knoledge to guide customers. They ill look to e(tend
traffic light nutritional la!els to all relevant food. They also have a am!ition to launch an M&S
<ealth and Hifestyle $nformation program, offering employees advice and guidance on ho to
live healthier lives. /urthermore they ill also maintain free !reast screening for female
employees over )#.
6!erall %lan A 6b7ecti!es
In!ol!e our custo)ers in %lan A
1. Eim for all our M&S products to have at least one Clan E quality !y "#"# 6'#4 !y "#&'8
and help our customers identify and !uy these products
.. <elp our customers make a difference to the social and environmental causes that matter to
Them
*. <elp our customers live a more sustaina!le life
Make %lan A #o/ /e do business
1. +ngage our employees in Clan E
2. $ntegrate Clan E into our systems and processes
4. ,uild Clan E into every aspect of our construction program
5. +ngage our !usiness partners in Clan E
8. 1reate a culture of innovation on sustaina!ility
(,tend our social and en!iron)ental co))it)ents across t#e 2 %illars o9 %lan A Cli)ate
c#ange
:. <elp our customers cut their car!on footprint
1; 2educe our operational car!on emissions !y 5'4 and make our operations car!on neutral
11. <elp our suppliers cut their car!on footprint
'aste
1.
.
1reate partnerships to help our customers reuse or recycle all our products and packaging
1*
.
Send no operational and construction aste to landfill and reduce our operational aste !y
"'4 and construction aste !y '#4
11
.
<elp our suppliers to reduce aste and send no aste to landfill
3atural resources
12
.
+nsure efficient use of natural resources in our operations
14 2educe the impact on the natural resources used to make our products
-air partners#ip
15. +nsure orkforces and communities !enefit in our supply chain
"ealt# and /ellbeing
18
.
Grive health and nutrition !enefits across our product offer
1:
.
<elp to facilitate !ehavior change through clear nutrition la!eling and information
.;
.
+ncourage our customers and employees to !ecome more active
CS, e))ects on the Stakeho%ders0
Oear after year, Marks & Spencer sets a high standard for environmental sustaina!ility in the UK
retail orld. $ts large scale and high level of social consciousness give it the unique position to
promote change throughout the industry. Es a part of its Clan E initiative, launched in Lanuary
"##7, M&S makes a varied range of responsi!ility efforts, from !each3cleaning and cancer
fundraising to recycling programs and organic produce.
Hets take a look at the yearMs most important changes and surprises, as revealed in the companyMs
recently released "#&5 Clan E 2eport-
&. The Clan E $nitiative has seven main pillars P the first is customer involvement. The
initiative continues to e(cel in this area, ith customers donating 5.% million articles of
clothing through M&SM @shoppingA campaign, N&.' million raised for ,reakthrough ,reast
1ancer, and NK0#,### raised for Macmillan 1ancer Support in the last year. ,ut in the
interest of also helping customers live more sustaina!le lives, M&S is developing an online
plan that ill help one million customers develop personal sustaina!ility goals !y "#&'.
Em!itious and tailored pro.ects such as this not only set M&S apart from its competitors !ut
also have the potential to change ho people make decisions, and the ecological effects of
those decisions.
". The second pillar focuses on integrating the ideas !ehind Clan E into the rest of the !usiness
P the driving tenet !ehind corporate social responsi!ility and ill soon !ecome a necessary
component of every companys !usiness model. =ith statistics including a 7%4 employee
engagement rate and N&5' million orth of net !enefit to !e reinvested !ack into the
!usiness, Clan E is certainly earning its 29$ in certain areas. 9ne area needing improvement
is in liaising ith other !usiness partners- Clan E is falling !ehind on requiring all food
suppliers to reach adequate levels in their on sustaina!ility frameork. 9nly )#4 of
suppliers are even achieving the !ronFe status or higher, ith a mere seven suppliers
reaching silver level P though there is progress !eing made toards energy efficiency ith
their clothing suppliers.
5. Marks & Spencer is also making developments in the third pillar of Clan E, hich focuses on
climate change. =ith an a!solute drop in car!on dio(ide emissions !y "54 since "##7 and a
574 decrease in car!on intensity, the effort is clear. Clan E credits more efficient electricity
use, reduced gas leaks, and !etter aste recycling levels in achieving this goal. To make
amends for hat it cannot change, M&S purchases high3quality car!on offsets. <oever, the
company has !een most successful in helping its suppliers decrease emissions. Es mentioned
in the previous section, the only place here M&S still struggles to achieve sustaina!ility is
ith its food suppliers. $f this is the only failure, it should !e noted that all of the nine other
goals have already !een achieved.
). The statistic from in the fourth pillar representing aste. 1urrently, Marks & Spencer sends
Fero aste to landfill. =hile it isnt entirely clear here all of this aste is diverted, it is
evident that %04 of food aste is !eing composted or anaero!ically digested for conversion
to !iogas, any clothing aste is !eing donated or recycled, and all construction aste is !eing
recycled. 9n top of this, the company reported a construction aste reduction of '#4.
'. =here Clan E is most critical of itself is in the fifth pillar concerning natural resources. The
highlights include an %%4 usage of sustaina!le ood and &##4 sourcing from sustaina!le
fisheries. /urthermore, the vast ma.ority of !eef is sourced from the UK, all of its coffee and
tea is certified /air Trade, and its sustaina!le cotton sourcing goals remain on target.
<oever, per its on admission, M&S is still @orking out ho to overcome a num!er of
challenges on soy, cocoa, and leather.A ,ased on its accomplishments in this area in "#&" 6or
rather the lack thereof8, it can !e agree.
K. The si(th pillar of Clan E covers Marks & Spencers fairness in partnerships. Much of the
focus is put on the important !ut dry topic of supply chain training and efficiency, for hich
M&S is on track to achieve all of its pro.ections. 9ne aspect that catches eye is the plan to
ensure that all employees in developing countries such as $ndia, Sri Hanka and ,angladesh
earn a liva!le age. =hile hard data are not yet supplied, the larger emphasis on /air Trade
and sustaina!le sourcing should go hand3in3hand ith achieving these o!.ectives !y "#&'.
7. The final pillar is the um!rella for health and ell!eing. To remain socially responsi!le in an
era here !ased on current trends K#4 of the UK population could !e o!ese !y "#'#,
nutrition needs to !e a main focus of any company involved in the grocery or food sales
industry. =ith many of Clan Es ellness goals already achieved 6such as salt reduction in
food, elimination of food coloring, online dieting e!sites and customer engagement, etc8,
the retailer is making great headay. <oever, M&S focuses primarily on nutritional
la!eling. 1alorie la!eling on packages as only introduced in 9cto!er "#&". /ortunately, this
is rapidly e(panding. =ith plans to improve la!eling, increase nutritional information on
non3packaged products, and initiatives to integrate sustaina!ility la!eling, Clan E seems to
kno hat needs to !e fi(ed and ho to fi( it.
$n the end the comments !y Lonathan Corritt a!out M&S, founder director of /orum for the
/uture, indicates ho ,ritish !usinesses have responded to sustaina!ility and social
responsi!ility scandals this year. /or him, Marks & Spencer has performed remarka!ly ell. /or
e(ample, even after proving to !e horsemeat3free, M&S has responded to the crisis !y doing
hat he calls @strategic de3risking.A Corritt manages to find a fe small criticisms here M&S
falls short of its competitors, !ut his final take3aay is perhaps the most important of all- Marks
& Spencer has truly !randed itself as the go3to retailer for large3scale sustaina!ility, and this eco3
consciousness is no insepara!le from the name Marks & Spencer.
:uality
;alue
Service
$nnovation
Trust

6Clan E report, "#&58
Stake#olders %erception
Stake#olders %erception
Impact o) CS, in M&S1 sustaina2i%ity and
pro)ita2i%ity0
The most knon 1S2 activity !y M&S as Clan E, 6descri!ed earlier in the pro.ect part8 hich
as mainly promoted for the sustaina!le future hich leads the companys sustaina!ility. Elso
the campaign @!ehind the la!elA assist company to !ecome more connected ith its customers,
engage the customers unlike the Clan E, make them trustorthy hich lead to a Fero turnover
customer rate even Fero employee turnover. <ence, the company gained the advantage of high
profita!ility ith loering don its cost and at end leads to !etter sustaina!ility.
CSR and Sustainability
E companys most valua!le asset is its a!ility to convert !rand poer into customer !uying
decisions. 9nly the company that shares relia!le information can !e a trustorthy @partner in
sustaina!ilityA for customers ho are ready to !uy. M&S differentiate itself through
transparency and customer engagement. =hen the company launched the Clan E, the company
reported a drop in the share price and net income. ,ut after the ' years of than Clan E, hen the
company achieved most of its commitment, these indicate the companys sustaina!ility.
,eing Gifferentiator !y transparency and customer engagement
Egainst this !ackdrop, and in response to pu!lic concern over sustaina!ility and tracea!ility,
M&S as an(ious to get in front of the issue and !etter understand hat as driving customer
concerns and !ehaviors. Their analysis revealed four consumer groups-
B "' percent erent interested in green or social issues at allJ most of these customers had lo
incomes and more pressing concernsJ
B 5% percent ere somehat interested in green or social issues !ut didnt kno if they could
make a difference themselves. These customers anted to !e sure if, for e(ample, their
individual recycling ould make a differenceJ
B "' percent ere fully engaged in the issues !ut did not ant to compromise on price and
qualityJ
B &" percent ere crusaders ? very passionate and looking to Marks & Spencer to !e an advocate
as ell.
,ased on these insights, M&S launched the @,ehind the Ha!elA campaign, hich educated its &K
million customers a!out all the things the company as doing around environmental and social
issues. The program as deemed a success, !ut competitors ere also doing some good things to
gain consumer trust.
CSR and %ro9itability:
The 1S2 activities actually need a lot amount of capital out flos. These in the first scene
seemed that company is losing its profits for some charity activities. Hike Marks & Spencers
overall annual contri!ution to community programs as N0.%m including N"'#,### to the victims
of the tsunami disaster in Sri Hanka. =e also agreed to send one of our managers to ork ith
1are $nternational 6UK8 to help affected communities in Dalle, Kulatara and Matara. $n addition,
ith the generous support of our customers and staff e helped to raise N".#m for victims of the
tsunami and N&.'m for ,reakthrough ,reast 1ancer Eareness. ,ute 1S2 is a process of
continuous improvement for the company hich in the later part turn !ack profits !y !eing used
as a promotional tool. Eccording to the report of "#&#, the officials of M&S said @Marks &
Spencer is no reaping the reards of Clan EA, claiming that the programme made it an e(tra
N'#m.
1ompanies are finding that many 1S2 initiatives, including those that reduce energy
consumption or !enefit the environment, help reduce overall cost structures or increase
productivity. The Clan Es !ecome a car!on natural concept, helps reduce the cost structure and
turned into profit. =hen looking at M&Ss achievements, e sa that its not .ust a!out
reducing food aste 6)# percent8, improving energy efficiency per sq. feet 6"% percent8.
Daining the trust of the customers are also leads to the profits. Es the traditional management
e(plains "#4 of its profit comes !y retention of the customers. Through the Clan E, the company
engaged its customers in the 1S2 process trough campaigns like Shopping. End !y this they
ere successful to retain their customers for longer period and make some positive impression to
the potential ones.
M&S orks very closely ith its stakeholders ? last year it included a supplier conference,
dialogues ith trade associations and meeting ith regulators, involving employees in ide
range of Clan E activities, e think though that M&Ss main strength is its a!ility to actually
listen to stakeholders, understand hat they ant and apply it accordingly. This ay M&S
knos for e(ample that @integrating social and environmental policies and performance into
financial reporting is an important issue amongst many investor groups,A and hence orks ith
stakeholders on integrated reporting. These help the company to had a uninterrupted flo of
investments.
Cositive nes flashes are having impact on the investors and help companies to hold a strong
position of their share price. The 1S2 activity like !ehind the la!el campaign, make a very
positive impression over the investors along ith the society and thus the share price as high on
the year "##K from the year "##'. The price appreciated to *4.1 pound from .:.1 pound hich
shos a huge impact of the campaign launched in year "##K. Moreover, M&S have made in )
years a net profit of <.84 million from Clan E.
Oear ended Turnover 6N M8 Crofit !efore ta( 6N M8 *et profit 6N
M8
,asic eps
6p8
*1 Marc# .;;5 %,'%%.& 05K.7 K'0.0 50.&
1 April .;;4 7,707.7 7)'.7 '"#.K 5K.)
. April .;;2 7,)0#.' '#'.& 5''.# "0.&
Source- Hondon Stock +(change
$n the year "#&&, the headline nes is that the overall financial !enefit of Clan E has increased to
N7# million per yearJ up from the N'#m profit effect hich many students ill have seen e( 1+9
Sir Stuart 2ose mention. The profit improvement arisen from more efficient use of energy in
shops and distri!ution centers saved the most money in "#&#3&&, netting M&S an N&5.' million
cost saving, folloed !y packaging reductions, hich saved N&& million.
7o/ they o2ey their CS, commitments0
Since the foundation of the 1S2 activities in the name of >Clan E till no M&S has represented
a tremendous success in fulfilling most of their success. Echieving most of the commitments in
such a limited time frame appropriately requires lots of aspects to act in favor in the same time as
ell. M&S has !een a!le to integrate all the aspects of the 1S2 activities in and appropriate
manner and !ring ell!eing to !oth the society and !usiness altogether. <o they ere fully
o!edient toards their commitments is given !elo-
Integrate Sustainability In T#e Co)panys Values:
Elthough the !usiness emphasiFes mostly a!out the !ottom line and !enefits, it all starts ith the
companys success to fully integrate sustaina!ility into its values and mission. @=e sell high
quality, great3value clothing and home products and outstanding quality food. =e source
products responsi!ly from over ",### suppliers around the orld. 9ver %&,### people ork for
M&S in the UK and orldide. 9ur core values are :uality, ;alue, Service, $nnovation and
Trust,A it says in the companys progress report. Es e can see, sustaina!ility is not e(plicitly
mentioned here, !ut its reflected in every ord in this statement, shoing ho it !ecame
integral to M&Ss strategy and culture.
Strategic Approac# And Magnitude Make A i99erence:
/rom the !eginning of Clan E, it as clear that M&S is going all the ay. @9ur intention hen
e designed Clan E as to integrate it into every aspect of ho e do !usiness,A Said Sir 2ose
!ack in "##7 and so it did, starting ith &## commitments ith a "#&" deadline that gre in
"#&# to &%# commitments ith a "#&' deadline. Unlike many companies that are cautious and
try to e(perience sustaina!ility one !it at a time, M&S understood from very !eginning that its
almost impossi!le to integrate sustaina!ility partially and do it ell. Through Clan E, M&S as
a!le to fully em!race sustaina!ility, reaching every part of the !usiness.
$n addition M&S adopted a strategic approach that helps it implement the plan successfully.
,ehind every achievement, from reducing non3glass packaging per item in "K percent to
launching car!on neutral chocolate and lingerie stands a colla!orative ork of different parts of
the organiFation. 9ne cant meet so many goals ithout having finance, logistics, operations,
procurement and other functions at the organiFation orking together and !eing on the same
stage.
-ully ()brace Stake#older (ngage)ent:
Hooking at M&Ss achievements, it can !e said that its not .ust a!out reducing food aste 6)#
percent8, improving energy efficiency per sq. feet 6"% percent8, or even !ecoming car!on neutral,
!ut also a!out engaging stakeholders. The company understood that to !ecome the most
sustaina!le ma.or retailer is not .ust a question of performance assessment or integration of
sustaina!ility measurements, !ut also a matter of stakeholder perception.
To esta!lish this perception M&S orks very closely ith its stakeholders ? last year it included
a supplier conference, dialogues ith trade associations and meeting ith regulators, involving
employees in ide range of Clan E activities, offering customers to get involved in Clan E
activities and campaigns like >Shopping, and so on. So, M&Ss main strength is its a!ility to
actually listen to stakeholders, understand hat they ant and apply it accordingly. This ay
M&S knos for e(ample that @integrating social and environmental policies and performance
into financial reporting is an important issue amongst many investor groups,A and hence orks
ith stakeholders on integrated reporting.
S#o/ S#are#olders Substantial Material 0ene9its:
+ven as other groups of stakeholders play a pivotal role in M&Ss success, shareholders still
have a poerful impact on shaping the companys strategy and priorities and hence its very
important to get them on !oard. End the name of the game is materiality. Es Lonathon Corritt,
/ounder Girector of /orum for the /uture e(plains, investors argued for years that they
understand sustaina!ility is important, !ut there are many more material things to take care of
first. *o, he says, M&S has created the case here sustaina!ility has a material impact on the
!ottom line, on top line groth and risk management. The result is that its much more difficult
for investors to use the non3materiality e(cuse and its easier to get their support for the plan.
Its 3ot =ust About Sa!ings:
M&S have made in ) years a net profit of Q"%K million from Clan E. Oet, as Elan Steart, M&S
1/9 e(plains, the company sees more !enefits !eyond the savings ? from tangi!le !enefits like
the creation of !usiness opportunities to intangi!le !enefits such as making the company more
attractive as an employer for employees and people ho seek to .oin it. $t is important for a
company to acknoledge and em!race all types of !enefits, !ecause a successful .ourney to
!ecome a sustaina!le company is not .ust a!out a !etter !ottom line, !ut a !etter triple !ottom
line eventually.
Controversies 9aced By M&S0
Co)pre#ensi!e Spending Re!ie/:
$n 9cto!er "#&#, chairman Sir Stuart 2ose as a signatory to a controversial letter to The
Gaily Telegraph hich claimed that RThe private sector should !e more than capa!le of
generating additional .o!s to replace those lost in the pu!lic sector, and the redeployment of
people to more productive activities ill improve economic performance, so generating
more employment opportunitiesR, despite recent .o! cuts of &,### staff. This prompted calls
for a !oycott of Marks & Spencer and the companies represented !y the other signatories to
the letter.
Contactless %ay)ent Issues:
Some Marks & Spencer customers claim that the chainMs contactless payment terminals have
taken money from cards other than the ones intended for payment. 1ontactless cards are
supposed to !e ithin a!out ) cm of the front of the terminal to ork. M&S investigated the
incident and confirmed the ne system had !een e(tensively tested and as ro!ust. $t had
recently rolled out the contactless payments system, provided !y ;isa +urope, to K)) UK
stores.
Musli) C#eckout>Sta99 %olicy:
$n Gecem!er "#&5, Marks & Spencer announced that Muslim checkout staff in the UK could
refuse to sell pork products or alcohol to customers at their till. The policy as announced
after at least one nes outlet reported that customers aiting ith goods that included pork
or alcohol ere refused service, and ere told !y a Muslim checkout orker to ait until
another till !ecame availa!le. The policy applied across all 7#5 UK M&S stores and
prompted a strong !acklash !y customers.
E company spokesman su!sequently apologiFed and stated that they ill attempt to reassign
staff hose !eliefs may impact their ork to different departments, such as clothing.
Conc%usion0
Marks and Spencer has managed conduct their 1S2 activities ith high am!ition and
determination. $t has managed to create a !enchmark for other retail companies to follo their
lead in conducting 1S2 activities and !ecoming one of the sustaina!le companies in the !usiness
sector. M&S competitors can learn a lot a!out stakeholder engagement, transparency and
materiality from the company. Under the headings of >Clan E each issue is !roken don into
targets set for the reporting year, performance in the current year and future goals. This approach
is highly effective in terms of presenting a clear and thorough picture of the !road scope of
Marks and Spencers 1S2 related activities. M&S has not only committed to these developments
toards societies !ut also has successfully implemented them. Under such 1S2 activities it is
also visi!le than they are not only heading toards a sustaina!le !usiness !ut also toards a
!usiness hich is also financially sta!le. Essurance is provided !y an independent third party, in
line ith !est practice. Surprisingly, in spite of achieving most of their targets in the
commitments toards the Clan E o!.ectives some aims of M& S is still facing some !ig and
challenging targets. Some of these are to meet sustaina!le sourcing standards for eight key ra
materialsJ to ensure all M&S products have a Clan E qualityJ to improve our suppliers
sustaina!ility performanceJ and to engage customers and employees in Clan E. Thus it is
desira!le that M&S ill quickly a!le to recover these shortcomings.
,e)erences0
&. ,arry, M & 1alver, H 69cto!er "7, "##08. Marks & Spencer describes its journey from
corporate social responsibility to sustainability. 2etrieved ) Epril, "#&) from http-II
.marketingmagaFine.co.ukIarticleI0)%&0%Imarks333spencer3descri!es3its3.ourney3corporat
e3social3responsi!ility3sustaina!ility
". ,eavis, H. 6May 5#, "#&"8. M&S- doing the right thing leads to change ? for the !etter. The
Guardian. 2etrieved ) Epril, "#&) from http-II.theguardian.comIsustaina!le3
!usinessI!est3practice3e(changeImarks3and3spencer3change3!etter
5. Dodelnik, 2. 6Lune &", "#&"8. 5 Lessons from Marks and Spencer on the Business Case for
Sustainability. 2etrieved ) Epril, "#&) from http-II.triplepundit.comI"#&"I#KI'3
lessons3mss3plan3esta!lish3!usiness3case3sustaina!ilityI
). <amed, ,. 6Luly 5, "#&58. The Top Thin!s "e Learned from Marks & Spencer#s $%&' (lan )
2eport. 2etrieved ) Epril, "#&) from http-II.sustaina!le!rands.comInesSandSviesIcomm
unicationsI%3most3important3things3e3learned3marks3spencers3"#&53plan3report
'. *o+ +e do business $%%, report. 6"##78. 2etrieved ) Epril, "#&) from http-IIcorporate.mark
sandspencer.comIdocumentsIpu!licationsI"##7I"##7Shd!Sreport.pdf
K. *o+ "e -o Business .eport $%&$. 6"#&"8. 2etrieved ) Epril, "#&) from http-IIplana.marksa
ndspencer.comImediaIpdfImsShd!S"#&".pdf
7. Kaye, H. 6Lune &&, "#&58. The "orld/s Most Sustainable .etailer0 Marks & Spencer/s $%&'
(lan ) .eport. 2etrieved ) Epril, "#&) from http-II.triplepundit.comI"#&5I#KImarks
3and3spencer3"#&53plan3a3updateI
%. Labor Behind The Label. 6n.d8. 2etrieved ) Epril, "#&) from http-II.la!our!ehindthela!
el.orgI.o!sIitemI%70
0. Marks and Spencer/s en1ironmental plan 2 has it paid off0. 6/e!ruary "', "##%8. 2etrieved )
Epril, "#&) from http-II.fsn.co.ukIchannelSkpiSenvironmentImarksSandSspencersSe
nvironmentalSplanShasSitSpaidSoff
&#. Marks & Spencer 1orporate Sustaina!ility 1onstruction Duidance. 6"#&"8. B.3. 2etrieved )
Epril, "#&) from https-II.!re.co.ukIpage..spTidU&700
&&. 9ur Clan E 1ommitments "#&#3"#&'. 6"#&#8. 2etrieved ) Epril, "#&) from http-IIcorporate.
marksandspencer.comIdocumentsIpu!licationsI"#&#Iplanacommitments"#&#
&". Cerformance Summary. 6"#&58. (lan ) $%&'. 2etrieved ) Epril, "#&) from http-IIplanareport
.marksandspencer.comImanagement3summaryIperformance3summaryI
&5. (lan ) .eport $%&'. 6"#&58. 2etrieved ) Epril, "#&) from http-IIcorporate.marksandspencer.
comIdocumentsIpu!licationsI"#&5IplanSaSreportS"#&5.pdf
&). 2evie of the Oear. 6"#&58. (lan ) $%&'. 2etrieved ) Epril, "#&) from http-IIplanareport.ma
rksandspencer.comIrevie3of3the3yearI
&'. The Marks & Spencer 1orporate Social 2esponsi!ility 2eport. 6 Lune &&, "##'8. 3thical
(erformer. .etrie1ed 4 )pril5 $%&4 from http677ethicalperformance.com7reports71ie+7$8'