Big Tick winner

Company of the Year, Example of Excellence

Marks & Spencer - look behind the label

Impact on Society Award 2006 in association with Tomorrow’s Company

Two years ago, Marks & Spencer started to move from using Corporate Social Responsibility (CSR) to manage risk to using it to differentiate them from their competitors and drive innovation across its business. Focusing on areas such as sustainable fishing; chemicals in clothing; salt reduction; animal welfare and Fairtrade.

Processes

In January 2006 the retailer launched Look behind the Label – an integrated communication campaign to explain their position on the CSR issues of most concern to their customers. This is the first time a major high street retailer has engaged its stakeholders on these issues on such a scale and is delivered through national advertising, in-store décor, employee communication and the Marks & Spencer website.

Marks & Spencer is the largest own-brand retailer in Britain. Some 15 million people visit their 450 stores in the UK each week. They have 202 stores in 30 territories abroad, over 274,500 shareholders, 65,000 UK employees. They source approximately 30,000 different products from 1,900 suppliers who employ over 100,000 people in over 70 countries. They sell a wide range of clothing, food, home and beauty products that are developed against longstanding core values - quality, service, innovation, value and trust. By trust, they mean the bond they have with their customers, employees, shareholders and all those who care about what they do and how they do it. It is integrated within their business and is as important as their commercial priorities and drive for business success.

In the summer of 2004 the incoming management team, led by Paul Myners (Chairman) and Stuart Rose (Chief Executive), re-confirmed the company’s commitment to its core values and has actively used CSR as an integrated part of improving their commercial performance. For example, the Board was heavily involved in the development of the Look behind the Label campaign.

Each business unit within Marks & Spencer is required to develop its own unique CSR Strategy that addresses the specific risks and opportunities that arise from its market position, customer base, product range and supply chain. Their food unit, for example, has identified 16 separate core issues relating to their business, including packaging; health; food miles; labour standards and Fairtrade, and has developed clear positions on each. These reflect their current performance in these areas, how their competitors are positioned, what the risks/opportunities are to their business, where they want to be in the future and how they want to communicate their positioning. Each CSR Strategy is presented to the CSR Committee for review at least every two years. The Board level CSR Committee, which is overseen by the Company’s Chairman, meets three times a year and updates the company’s Executive Board regularly on CSR.

Marks & Spencer has produced a CSR report since 2003 and it remains the only annual UK retail CSR Report to be supported by independent assurance. They also maintain a CSR website which provides further information about their policies and activities.

Impact

  • Over the last twelve months Marks & Spencer:
  • became the first major retailer in the UK to introduce a range of Fairtrade cotton clothing to stores and convert all the coffee it sells to Fairtrade and is working to shift all its tea to Fairtrade too.
  • met salt reduction targets agreed between the retail sector and Food Standards Agency (FSA) four years ahead of schedule, removed additives such as hydrogenated fats from over 700 prepared products, and launched a range of prepared food that is totally additive-free.
  • assessed over 1,250 clothing, food and homewear suppliers against its Global Sourcing Principles.
  • led the development of a new approach to managing labour standards in supply chains called Supplier Ethical Data Exchange (SEDEX), allowing retailers to share audit results and better track issues.
  • introduced a unique ‘Milk Pledge’ which provides British milk farmers with security through a guaranteed price.
  • provided work experience for 2,500 people, including the homeless and disabled, with over 40%, twice the rate of similar Government schemes, entering employment after the placement.
  • converted sandwich packaging to cardboard sourced from well managed forests.

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