Marks and Spence’s achievements in this area are extensive and they have received considerable recognition. In particular, the introduction of “Plan A” (www. Plenipotentiaries. Com) has significantly enhanced recognition of the practices and policies that are possible and has altered how the company “does business”. 4 Among various awards and honors, in December 2007, Marks and Spencer was awarded the World Environment Centre Gold Medal for Sustainable Business. They are the top global retailer in the DOD Jones Sustainability Index and are equal to the top in the Carbon Disclosure Project.
They nave received awards trot Greenback and Compassion in World Farming, among others. Particular achievements include the following: Development of a coherent, extensive and challenging approach (Plan A) Integration of initiatives with significant partners, such as Sofas Recognition that corporate responsibility and sustainability involves changing business practices, leading radical initiatives and assisting consumers to take significant steps. Marks and Spencer has addressed 12 out of the 14 environmental elements that were identified as relevant in Phase 1 of the Greening Retail initiative.
The breadth of heir programs, their achievements to date and their goals for environmental improvement make them a pertinent company to study. Acknowledgements The Institute for Retail Studies at the University of Sterling has carried out the preparation of this case. We would like to thank, in particular, Mike Barry, Director of Corporate Responsibility at Marks and Spencer for his time and insights. All errors and omissions are, of course, ours alone. 2. 0 Corporate Background Marks and Spencer PL is a public company quoted on the London Stock Exchange.
It was founded in 1884 as a single market stall in Leeds, England and developed wrought the 20th century into an iconic British retailer. It remains one of Britain’s most important institutions. Much of the reputation of Marks and Spencer in the 20th century was based on selling only Bridesmaid products under its retail brand SST Michael. In the mid-asses the company became the first British retailer to make a El billion profit in a year, but soon after, they began to experience a decline in reputation and success.
The recent turnaround of the company has involved changing illimitableness practices and repositioning the company as an international retailer, fit for the 21st century. A salient feature is the environmental strategy articulated in Plan A in January 2007. Currently, Marks and Spencer has over 600 stores in the United Kingdom and almost 250 internationally. It is the largest clothing retailer in the U. K. , with a market share of 1 1. 0 per cent, and it also has 4. 3 per cent of the U. K. Food market. Within the U. K. , the business is almost equally split between food and non-food.
International operations can be found in almost 40 countries, accounting for nearly 8 per cent of group turnover. Sales in 2007/2008 were E billion in total, and 75,000 people are employed. Over 21 million people visit Marks and Spencer stores (on high streets, in shopping centers and retail parks, and as Simply Food travel-sited stores) in the U. K. Each week. The current business plan aims to turn Marks and Spencer into a customer-focused, fast-moving, world-class retailer, offering only the highest quality products, service and shopping environments. 5 The brand values speak to quality, value, service, innovation and trust.
The dive key areas for growth in the current corporate plan are as follows: 1. 2. 3. 4. 5. Core U. K. Retail business, by introduction of new goods and services U. K. Property portfolio M&S Direct (home shopping) business International business Integration of Plan A (their echo plan) into every aspect of how we do business, so that they grow in a sustainable way. 3. 0 Best Environmental Practices of Marks and Spencer 3. 1. 0 Corporate Policies, Structure and Reporting About Plan A Plan A is our five year, 100 point echo plan to tackle some of the biggest challenges facing our business and our world…
We’re doing this because it’s what you want us to do. It’s also the right thing to do. We’re calling it Plan A because we believe it’s now the only way to do business. There is no Plan B. ” (www. Plenipotentiaries. Com) Marks and Spencer has historically been seen as a good place to work and a good company with which to do business. From its staff welfare programs of the asses, through its recycling initiatives of the asses to the asses, to its first corporate social responsibility report in 2003, Marks and Spencer has been seen as a leader in this field.
Nonetheless, the pace of change in the last five years has been dramatic. The first corporate social responsibility in 2003 instigated the process that made major strides with the Look Behind The Label aiming of 2006 and culminated in the formal launch of Plan A in January 2007. Plan A is an echo plan that will impact on every part of the business during its lifetime (to 2012). It brings together and reports annually on 100 commitments in social, environmental and ethical performance. The plan is laid out with an integrated, holistic approach.
A summary of the progress in 2007/2008 and 2008/2009 is presented in Appendix 1 . Under Plan A, by 2012, Marks and Spencer aims to become carbon neutral, send no waste to landfill, extend sustainable sourcing, set new tankards in ethical trading, and help customers and employees lead healthier lifestyles. It is intended as an ambitious agenda, changing business operations forever. It is presented in 100 commitments organized under these headings: 6 Climate Change Waste Sustainable Raw Materials Fair Partner Health. 3. 1. Corporate Environmental Policies and Governance At the turn of the century, Marks and Spencer was undergoing considerable change arising from the problems in the late asses and from the desires of new management to rectify the reduced performance. In environmental terms, whilst mom small steps had been made, building on the company’s heritage, and the renowned Marks and Spencer concern tort product quality, most activities were comparatively small and uncoordinated. To some extent there was a “silo” mentality about environmental and sustainable activities despite the good efforts underway.
Individual initiatives were valuable but tended to be small-scale and restricted to a particular part of the business. When Stuart Rose Joined Marks and Spencer as Chief Executive in 2003, he challenged the business to spell out the distinguishing features developed by Marks and Spencer. From this initiative, Look Behind The Label was launched in January 2006 as a marketing and communications campaign to tell customers and employees the stories behind the products, many of them related to CARS actions. For the first time, this program provided coherence to the projects operating at Marks and Spencer.
Look Behind The Label generated considerable impact, within and beyond the business. It also raised expectations and allowed questioning of procedures. The response was an approach that was not a one-off or “greengage”, and it inspired openness about what worked and what did not. This legislation that environmental and CARS components were embedded throughout the business led to Plan A and its 100 commitments. Plan A was launched in January 2007 and is now seen as “the way Marks and Spencer does business. ” Organizationally, Marks and Spencer operates a How We Do Business Committee.
This meets approximately monthly to look at progress, to ensure consistency across the business, and to focus on the difficult tensions between sustainability and commercially. There are now two directors covering different areas: 7 The Director of Plan A (Richard Sillies) leads the Plan A delivery team and focuses on reject management for the 100 Plan A items. The Director of Corporate Responsibility (Mike Barry) is charged with innovation in the area. His team has a license to challenge the business and is focused on stakeholder engagement, relevancy of grand plan, problem-solving and communications.
Within the operations of the How We Do Business Committee, there are now five strategy groups each aligned with one of the pillars, plus another group focused on employees. Additionally, the Director of Plan A has three subcommittees managing strategy and monitoring progress and communications. It has been a Journey getting o Plan A, and no one believes it is complete. Some elements are proving problematic (for example, the use of befouls), whereas others may be insufficiently challenging (for example, labor standards in factories). Plan A is a work in progress.
At the highest level, the implementation of Plan A has affected a number of stakeholders across the organization: Benefits to business. Plan A is designed to both help and grow Marks and Spence’s business. Plan A provides both short-term cost savings and longer-term advantages. Plan A provides benefits in hard terms?savings?and in soot terms?reputation and loyalty. Employees. Individuals across the business need to be motivated to take the right actions. There are 570 Plan A Champions in the U. K. Stores who promote Plan A with special events and day-to-day operations. Customers.
By communicating Plan A effectively and by reinforcing the actions consumers can take to reduce their own impacts, Marks and Spencer has engaged customers in the plan. Pledges on the website to change behaviors, recycling clothes with Sofas and the removal of plastic carrier bags encourage customers to adjust their actions for mutual benefit. Partnerships. The Clothes Exchange with Sofas is one example of the partnerships that Marks and Spencer have encouraged. External partners assist and inspire: for example, the World Wildlife Fund (WFM) assists in sourcing, and Groundwork receives all the profit on the sale of carrier bags.
As noted above, Plan A is based on 100 commitments across five pillars of the business. These pillars contain the detailed commitments, but also have overarching objectives for 2012: 1 . Climate Change. Marks and Spencer seeks to make their own operations in the U. K. And the Republic of Ireland carbon neutral and to help customers and suppliers reduce their emissions. Waste. Marks and Spencer will stop sending waste to landfill from its U. K. And Republic of Ireland stores, offices and warehouses, and will reduce the use of packaging and carrier bags. Sustainable Raw Materials.
Marks and Spencer will ensure that key raw materials come from the most sustainable sources available to them. 2. 3. 8 4. Fair Partner. Marks and Spencer has increased their ranges of Firetrap food sales and cotton clothing and extended a Fairness Price Pledge to support some of their lamb and organic beef farmers. Health. Marks and Spencer will help customers and employees choose a healthier lifestyle. . Targets and achievements tort these areas are in the discussion below. 3. 1. 2 Company Culture Marks and Spencer has imbued its company culture with a set of values best illustrated in their provision of quality and value for consumers.
This is also viewed as “doing the right thing” by customers, staff and suppliers. Whilst in the late asses this took a knock as practices changed, particularly with respect to British-based suppliers, the essence of the culture remains. The historical approach has been blended with the current concerns articulated in Plan A. The plan is seen as embedded in the culture of the organization and as “doing the right thing” for consumers, staff and other stakeholders. It is also good business sense for Marks and Spencer. 3. 1. 3 Staff Training and Incentives Marks and Spencer staff can be divided into two component parts in environmental concerns.
Many head office staff, including product developers and other scientists, intuitively understand the issues in this area. At the store level, this is not always the case, but Plan A Champions at the store level are required to develop the awareness and attitude changes in the store and with the store staff. To some extent there is a culture of practical concern at this level. This is reinforced, for example, by Green Weeks for employees where the focus is on challenges and opportunities for staff at work and personally. Four online training modules have been introduced for staff education on healthy eating and nutrition. 3. 1. Corporate Social Responsibility (CARS) Reporting As indicated earlier, Marks and Spencer began its CARS reporting in 2003 with its first report, Corporate Social Responsibility Review 2003. This explained how the company was seeking to meet its social, environmental and ethical responsibilities and satisfy he expectations of those involved in the business. The review positioned the new emphasis on CARS in the context of the historical social responsibility ethos of the company. The review focused on three main themes: products, employees and community. This initial review was followed by the first CARS report covering 2003/2004.
