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Ideas for Leaders #039

Embedding CSR and Sustainability: Marks& Spencer

Key Concept

Using Marks & Spencer as an example, there arecertain practices other organizations can similarlyapply to improve focus on corporate responsibility andsustainability. The UK retailer has made a number ofsuccessful moves towards embedding social andenvironmental awareness and practices into itseveryday strategic vision. In this Idea, these areanalyzed and discussed, offering companies tips theycan similarly apply.

Idea Summary

Sustainable business practices are in the spotlightmore than ever before, as awareness of theenvironmental and economic aspects to resourcemanagement keeps increasing. It’s changing the waybusinesses work and strategize, bringing a new way todeliver competitive edge to the table.

The case for incorporating sustainability practiceswithin an organization is constantly expounded. In thisIdea, the example of British retailer Marks & Spencer(M&S) provides insight into how to do so based ontheir success. By setting itself the ambitious goal ofbecoming “the most sustainable major global retailer”by 2015, the company has placed itself in a positionwhereby others can learn much from them in thiscontext.

Though the M&S has always had strong values and a‘paternalistic’ approach to doing business, it could notavoid hitting a low during the late 1990s. A hostiletakeover bid in 2004 led to a change in leadership butthe bid was eventually fought off; however, this alsosparked a general overhaul, and it began movingtowards embedding higher standards ofenvironmental and social performance across theorganization.

Most significantly, ‘Plan A’ was launched, whichdemonstrates all of the six core behaviours identifiedby the 2010 Accenture/UNGC Survey of CEOs as key toembedding corporate responsibility and sustainability

ShareAuthors

Grayson, David

Institutions

Cranfield University School of Management

Source

Journal of Management Development

Idea conceived

2011

Idea posted

January 2013

DOI number

Subject

Corporate StrategyCorporate Social ResponsibilitySustainable DevelopmentValuesPublic Relations and PublicityRetail

9/8/2015 Embedding CSR and Sustainability: Marks & Spencer | Ideas for Leaders

https://www.ideasforleaders.com/ideas/embedding­csr­and­sustainability­marks­spencer 2/4

embedding corporate responsibility and sustainabilitywithin a company. These are:

1. These issues should be fully embedded into the strategy andoperations of a company;

2. Boards should discuss and act on these issues;

3. These issues should be fully embedded into the strategy andoperations of subsidiaries;

4. Companies should embed these issues through their global supplychain;

5. Companies should engage in industry collaborations and multi-stakeholder partnerships to address development goals; and

6. Companies should incorporate these issues into discussions withfinancial analysts.

Business Application

The manner in which Marks & Spencer has proceededto implement ‘Plan A’ can be broken down to provideother organizations significant insight on doing thesame. For example:

Commitment to the plan (or intention to embed sustainablepractices within the company) should come from the topleadership in the organization. Executives in charge of alldepartments should be involved and motivated to demonstratetheir commitment. One example from M&S in this respect is that apercentage of senior executives’ bonuses is related to delivery oftheir Plan A-related Key Performance Indicators.

A body/committee should be set-up to oversee and reviewstrategic and investment decisions taken by the board. At M&S, thisis done by “The How We Do Business Committee” which meetsmonthly.

Rather than ‘bolt-on’ environmental and social commitments, theyshould be integrated into operations and strategic business units.

Engaging the value chain has been a key feature of M&S’s Plan A.For example, they set up an online Knowledge Exchange for thecompany’s 2,500 suppliers to learn from each other.

Employee engagement is also crucial. There is a concentrated driveat M&S to engage all 75,000 employees with, for example,volunteering activities. Moreover, the company offered its loftinsulation service to its employees first before it was madeavailable to the public.

Other actions include detailed annual progressreports, identification of achieved targets, reporting tokey external sustainability stakeholders, anddeveloping traditional company-charity relationshipsinto mutually beneficial partnerships.

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9/8/2015 Embedding CSR and Sustainability: Marks & Spencer | Ideas for Leaders

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References

Embedding Corporate Responsibilty andSustainability: Marks & Spencer.David Grayson. Journal of ManagementDevelopment (2011). DOI: 10.1108/02621711111182510

Further Reading and Relevant Resources

David Grayson’s profile at Cranfield University School ofManagement

Cranfield University School of Management’s ExecutiveEducation profile a IEDP

9/8/2015 Embedding CSR and Sustainability: Marks & Spencer | Ideas for Leaders

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