Corporate Social Responsibility Report 2003/04...4 Marks & Spencer CSR Report 2003/04 Overview of performance But we know that CSR is a journey and there is always more to do. Later,

Corporate Social Responsibility Report 2003/04

1 Marks & Spencer CSR Report 2003/04

Contents

Welcome to Marks & Spencer’s first Corporate Social Responsibility(CSR) Report, covering the period April 2003 to March 2004. Theinformation in this Report relates mainly to our UK business, whichaccounted for more than 90% of our turnover.

2 About this Report3 Introduction from Luc Vandevelde4 Overview of performance5 About us7 What CSR means to us9 Making it happen10 Listening and learning

11 Sustainable raw materials Field-to-Fork • Food miles and local sourcing •Organic • Fish • Wood • Peat

16 Responsible use of technologyChemicals • Pesticides • Dyeing • PVC •Genetically modified foods • RFID

20 Animal welfareFood • Clothing, Footwear, Home and Beauty

22 Ethical tradingGlobal Sourcing Principles • Clothing,Footwear, Home and Beauty • Foods •International franchise stores

27 Community programmesMarks & Start • Moving to Paddington •Employee volunteer awards • Breast cancerawareness • DebtCred

Summary of other issues31 Principle One: Products36 Principle Two: People39 Principle Three: Places

41 Assurance statement – Ernst & Young


About this Report

As our success depends largely on how we anticipate the needs of our customers, this year’s Report is structured around five CSRissues that customers have said they want moreinformation on:

• Sustainable raw materials• Responsible use of technology• Animal welfare• Ethical trading• Community programmes

For each of these issues, we describe ourchallenges and how we are working to meet them.Later in the Report we summarise our performanceand progress against targets for some of the otherCSR issues that Marks & Spencer faces. For all ofthe issues we are working on, we have outlinedperformance targets for 2004/05 and will reportagainst these in the future.

This Report has been produced in twoelectronic versions (pdf and html) available fromour website which we believe are the most usefulformats for its intended audience. We have alsoproduced a summary leaflet which will bedistributed with our 2004 Annual Review.

To show how we act on feedback, throughoutthis Report you will see comments that peoplemade on our CSR Review last year. These haveresulted in changes to the way we haveconducted our reporting this year.

You can find out more about our policies andpractice in the CSR section of our corporatewebsite (www.marksandspencer.com/thecompany).

This Report builds on last year’s Corporate Social ResponsibilityReview, which set out our approach to CSR and began to assessour performance against our social, environmental and ethicalresponsibilities. Our approach to CSR and what it means to us isdescribed on pages 7 and 8.


Introduction from Luc Vandevelde

As a customer-focused business, we believe themain value of CSR is in building and maintainingour customers’ trust. Where our products carry theMarks & Spencer label, we’re able to apply ourstandards across the range, not just to a fewselected lines. In this way, we can give ourcustomers the assurance they seek in areas such as safety, care for the environment andemployment practices among our suppliers. This Report is in fact based on concerns andexpectations voiced by our customers in aresearch and consultation programme carried out last summer.

Under our philosophy of ‘helping others tohelp themselves’ we have focused our communityactivities onto fewer projects that allow us tomake a bigger impact. In February 2004, welaunched Marks & Start, our flagship communityprogramme providing work experience for around2,500 people with disabilities, students, schoolchildren, the young unemployed and thehomeless. Our aim is that this will become thelargest programme of its kind in the UK andIreland. Not only does this approach help thecommunity but over 1,000 colleagues can benefitfrom the experience of being a ‘buddy’.

Overall, we’ve made progress that has beenrecognised by a number of awards and highrankings in CSR league tables. But we alsoacknowledge the challenges we face. Like allareas of the business, CSR is a never-endingprocess and we’re constantly looking to do more and do it better. We hope you find thispublication instructive and look forward toreporting further progress next year.

Luc Vandevelde Chairman

This has been a challenging year for Marks & Spencer and many parts of the businessare undergoing change as we seek to keep pacein a fast-moving and increasingly competitivemarketplace.

In these circumstances, you might be askingwhether difficult times have weakened ourcommitment to corporate social responsibility orCSR. The answer is emphatically no. We believethat the future success of our business dependson good corporate behaviour and ourcontribution to society as a whole. Far from beingan optional add-on, CSR is integral to ourbusiness and informs everything we do in goodtimes and in bad. Indeed, the way we respondwhen the going gets tough is perhaps the bestmeasure of how serious we are about goodcorporate behaviour.

The following report shows CSR alive and wellat the heart of our business. Last year, our initialCSR review described the broad principles thatgovern the way we behave as a company. Thissecond publication provides more by way of harddata and evidence of progress, which is why wecall it a CSR report. It shows the many ways weimpact society, the targets we’re setting and thesystems we’re introducing to plot how we’redoing. To speed our progress, each of ouroperating units has begun to include a CSRcomponent in its own business strategy in supportof the Company’s overall aims.

Another feature this year has been aprogramme of independent assurance. As well asbeing good governance, this ensures that weclearly identify our starting point in the areaswhere we hope to improve and can accuratelymeasure progress in the future. It also showswhere we can justifiably claim successes andwhere we still need to work harder.

We aim to be a force for good, not in addition to our day-to-day work but by integrating good corporate behaviourinto everything we do. In tough times as well as good, wecontinue exploring ways to be more effective, to measure our progress and to meet the expectations of all those involved in our business.


Overview of performance

But we know that CSR is a journey and there isalways more to do. Later, in ‘Making it happen’(see page 9), we explain how we are working tointegrate CSR into our activities at all levels of theCompany using strategies to address individualchallenges in each part of the business. Some arenow established with supporting action plans andsponsors; others are at an earlier stage.

Our aim is to integrate the management ofour CSR strategies more fully in 2004/05 and weare particularly keen to improve communicationon key issues, especially to colleagues andcustomers.

Reviewing our progress over the last year we have identified the following challenges:

• To make sure that Marks & Start fulfils its aims (see page 28).

• To build on the cross-company review of woodsourcing by developing a more rigorous systemfor products and packaging. This is a huge taskincluding the increased number of Marks & SpencerLifestore furniture suppliers and requires a phasedapproach (see page 15).

• To introduce better policies and systems touphold standards of animal welfare where clothingand homeware are concerned. Many of thesematerials such as leather and wool are traded ascommodities around the world. (see page 21).

• To work to establish an industry leadingposition on salmon feed following mediacoverage about contamination withPolychlorinated Biphenyl (PCB). Our currentposition is in line with the rest of the food industry.(see page 14).

• To ensure the expanded number of homeproduct suppliers (required for the launch ofMarks & Spencer Lifestore) are incorporated in ourethical trading compliance scheme (see page 23).

Our progress in addressing these challenges andany new ones that may arise will be discussed infuture CSR Reports.

Our achievements during the financial year ended3 April 2004 were recognised publicly. We wereranked as the leading retailer in the global DowJones Sustainability Indexes for the second yearrunning. In Business in the Community’s CorporateResponsibility Index we were rated as the leadinggeneral retailer, and overall were ranked 18th outof 139 companies, with a score of 93%.

Key achievements included:

• The launch of Marks & Start, our flagshipcommunity programme to provide workexperience to people of different ages and walksof life, many of whom are disadvantaged. Wehope this will become the biggest programme ofits kind in the UK and Ireland, providing supportfor parents who return to work, people withdisabilities, students, school children, the youngunemployed and the homeless (see page 28).

• An increase in the amount of organic cottonused in Marks & Spencer clothing. We launched asmall trial of organic cotton yogawear in our ViewFrom sports range manufactured from Agrocel®Pure & Fair cotton. The Agrocel® projectencourages small scale farming communities inrural India to convert to organic cotton production(see page 13).

• Steady progress in phasing out potentiallyharmful pesticides and in reducing residues onfruit, vegetables and salads. Our performance wasrecognised as leading other UK retailers by Friendsof the Earth’s Real Food Campaign (see page 17).

• The introduction of slower-grown Oakhamchicken to fresh chicken products and selectedprepared dishes. In the Bird Flu epidemic thataffected some Asian chicken production we couldre-assure our customers that no Marks & Spencerproducts were affected because of our policy ontraceability (see page 21).

• The setting up of ethical trading audits forinternational franchise partners and theirequipment suppliers (see page 26).

During 2003/04 we have worked to improve our performanceacross a wide range of corporate social responsibility issues.

FEEDBACK COMMENT

“I want informationabout the good and

the bad. If I don’tget the bad I’m

not going to believe the good.”

CSR journalist


About us

We believe many things differentiate us from ourcompetitors, not least our heritage of 120 years of retailing and our strong tradition of lookingoutwards to the communities we serve. We haveestablished a reputation for quality, value andservice and we work hard to protect and enhancethis. We try to meet the expectations of ourcustomers and wider society by striving forcontinuous improvement across all of ouroperations.

OUR SCALEThe scale of our operations – with sales of some£8.3 billion a year, total assets of £2.45 billion andapproximately 70,000 employees – provides uswith enormous opportunities. But we also facesignificant challenges in making sure we continueto grow and meet our obligations to stakeholders.

We source most of our food from the UK andEurope, but some 90% of our other products arenow sourced overseas. Our supply chain reachesto some 2,000 suppliers of finished products inmany corners of the globe. Our products arealmost entirely own-brand. This allows us tocontrol the quality of our products and servicesbut requires skilful management at all levels of theCompany and a commitment to high standardsthat are applied both by us and our suppliers.

In challenging trading last year, our operatingprofits grew to £866 million helped by tight costcontrol and a 3.5% increase in sales. You can findout detailed information about our financialperformance in our Annual Report and AnnualReview, both of which are published at the sametime as this report and available online atwww.marksandspencer.com/thecompany.

OUR VISION Our vision is to be the standard against which allothers are measured. In all our products andservices we are trying to make aspirational qualityaccessible to all. We are guided by a commitmentto quality, value, service, innovation and trust.

Our primary focus is on understanding andmeeting our customers’ needs consistently, in anincreasingly competitive retail environment.

We place real importance on creating a placeto work that inspires and rewards our colleaguesproperly. We want our workforce to reflect thediversity of the people that shop with us. 25% ofour employees are aged over 50, and 28% under30 and the majority are female (78%). Overall, ourworkforce reflects the ethnic make-up of the UKpopulation with 13% coming from ethnicminorities.

We are one of the UK’s leading retailers of clothing, food, home products and financial services.

Some 10 million customers shop with us each week, visiting our 375 stores. In addition,we have 155 stores managed under franchisein 28 territories around the world (mostly in Europe, the Middle East, Asia and the Far East), stores in the Republic of Ireland, nine wholly-owned stores in Hong Kong and we own the US supermarket group Kings Super Markets.


MoneyThe main focus for our Money division this yearhas been the launch of our ‘&more’ combinedcredit and loyalty card and there are now2.1 million ‘&more’ cards in active use, making us one of the UK’s top-ten largest credit cardproviders from a standing start. A similar numberof customers have our traditional store cardswhich can be used in our stores and on ourwebsite. As we develop our Money business weare looking to add other useful financial productslike our travel, motor and pet insurance. Moneynow accounts for 4% of our total turnover.

OUR BUSINESSOur business is divided into four main areas –Clothing, Food, Home and Money, our financialservices business.

Clothing Clothing, which accounts for 50.1% of our UKsales, is our biggest business and provides a widerange of clothing for women, men and children.We have an 11% share of the UK clothing market. Our priority is to provide high quality clothing at great value, with innovative, well-made andstylish products.

We are increasingly refreshing our overallrange with collections of clothing, like per una,Autograph, mw, Blue Harbour, Sp and DB07 David Beckham, which meet the specific fashionaspirations and attitudes of different groups ofcustomers. But we work just as hard to enhanceour core business, meeting our customers’demand for essential items that offer excellentquality at great value.

FoodWe have long established ourselves as a leadingprovider of quality food, with a 3.2% share of theUK market. We strive continuously to provide highquality fresh and prepared products which areaffordable and produced in a responsible way.

Our Food division, accounting for some 43.4% of UK sales, operates throughout our chain ofstores and also sells a selection of productsthrough 97 Simply Food outlets in key positionssuch as railway stations. In addition it is responsiblefor Café Revive, our in-store coffee shops.

Home We are developing our Home division, whichcurrently accounts for a relatively small 6.5% of ourUK sales and gives us a 2% UK market share. Thelaunch of the first Marks & Spencer Lifestore inGateshead this year is the first step towardsdeveloping a unique approach to selling productsfor the home which more closely reflects theeclectic way people live their lives today.


What Corporate Social Responsibility means to us

PRINCIPLE ONE:

Take care and act responsibly indelivering high quality productsand services

The ways in which Marks & Spencer products andservices connect with people, the environmentand animal welfare will always be one of our mostdemanding CSR challenges.

We want to show that our goods are producedin an ethically and environmentally responsiblemanner. To do this and respond to our customers’needs and expectations, we must keep sight of the wide range of raw materials, productionprocesses and countries of operation involved in producing and selling our goods.

Where our products carry the Marks & Spencerlabel, we have the unique ability to practice goodCSR across our product range. The diagrambelow shows how we influence our products atdifferent stages of their ‘lives’. We have directcontrol over the two key parts of our business –distribution and selling. But we can also influencemost other aspects of the production and use of our products.

Marks & Spencer has a strong tradition of CSR and we see it as integral to how we do business.

Our founders believed that building goodrelationships with employees, suppliers andwider society was the best guarantee of long-term success. This remains the backbone ofour approach to CSR.

Managing CSR well will allow us to identifypotential risks to the Company and respond to areas of performance where we fall behind.More importantly it also means we can identifyopportunities to differentiate ourselves fromour competitors. CSR can help us to drawshoppers to our stores, attract and retain thebest staff, make us a partner of choice withsuppliers and create value for ourshareholders.

Our approach is built around three principlesand a framework developed by our Board-levelCSR Committee during 2002.

Practising Corporate Social Responsibility across the product life cycle

We have direct control herethrough our stores

and distribution centres

We have influence herewith our suppliers

We have influence herewith our customers

We control through:Store design and operation which include:

Acting as a good neighbour (page 39).Reducing energy, water use and waste (page 32).

Respect of privacy (page 34).Responsible financial services (page 35).

Health & Safety protocols (page 38).

We influence through:Our quality management systems

which include:Global Sourcing Principles (page 23).

Standards and Codes of Practicecovering sustainable raw materials,

responsible use of technology, animalwelfare and ethical trading (pages 11-26).

We influence through:Our systems covering:

Easy to understand labels andinformation (page 33).

Reducing waste from packaging andproducts (page 31).

Choice of nutritious and healthy foods (page 34).

Raw materials Production Distribution Selling Use Disposal


PRINCIPLE THREE:

Help make our communitiesgood places in which to live and work

We recognise our obligations to the communitiesin which we trade. We were founding members of Business in the Community and remain anactive member.

Our relationship with communities isinterdependent. Successful retailing requireseconomically healthy and sustainablecommunities. At the same time, as a major retailerin the UK and Ireland, we provide employmentand products and services and often become animportant part of the fabric of the high street.

We place much emphasis on our stores, their location, design, construction and activities.A ‘Store of the Future’ project has helped toimprove the environmental standards we use to locate, build and refurbish them.

Day-to-day operations are managed within an overall compliance system that includesemergency planning, energy and water usage,heath and safety, waste disposal, recycling,recovery of shopping trolleys and donations of unsold food to charities. In addition to aprogramme of store self-assessments, parts of this system are reviewed by our internal auditteam based on where we think our performancemight need improving.

We are also active in a wider sense. Ourphilosophy of “Helping others to help themselves”is about trying to help people who we believe in turn will pass the benefits on to others. Thisapproach guides our choice of communityprogrammes as well as the support we provide to employees who wish to volunteer.

A recent development is our growing co-operation with suppliers and business partners incommunity programmes. Marks & Start, our workexperience programme for example, involvescommunities, employees and a growing numberof suppliers, all working together towards acommon goal.

PRINCIPLE TWO:

Create great places to work

By producing, distributing and selling ourproducts and services we create employmentopportunities in the UK and overseas.

But we want to do more than just providejobs. Our challenge is to provide a mix of benefitsfor everyone who works at Marks & Spencer whilealso supporting the operational needs of thebusiness. We seek to use our employmentpolicies to create “a great place to work”, bringingbenefits to the Company, employees and societyas a whole.

We want colleagues to feel part of a businessthat “does the right thing”. Colleagues are nowassessed and rewarded against our “ways ofworking” principles which encourage everyone in the Company to:

• Think customer• Be passionate about product• Be one team• Own their part in delivering results• Be honest and confident, listen and learn

Pay and benefits are clearly important to ourcolleagues but so are good working relationships.Our employee representation forums – known as Business Involvement Groups – play animportant role in improving our operations bygiving colleagues a say in how we do things. A programme of staff surveys also provides a wayfor everyone to say how they think we are doing.

We want to promote diversity and work hardto make our recruitment inclusive. There is intensecompetition for talent and we aim to be an“employer of choice” to attract and retain thebest. Providing a range of flexible options forcolleagues to balance their work and home lifehelps to encourage diversity.

We try to embed the same approach toemployment amongst our suppliers, franchiseesand other business partners through our GlobalSourcing Principles (see page 23). Those wantingto build a longer-term relationship with us areurged to attain the more testing standards of theUK’s Ethical Trading Initiative Base Code.


Making it happen

CSR ForumsTwo networks of senior managers support the CSRCommittee and help to drive our commitmentdeeper into the business. A new, store basedRetail Forum met for the first time in early 2004and has been tasked initially with overseeing theMarks & Start work experience programme. Infuture it will review and improve a wider range ofCSR activities in our stores.

The Head Office Forum, formed two yearsago, consists of representatives from across headoffice based functions who have supported theintegration of CSR across the Company. They alsoprovided a ‘sign-off’ process for agreeing thecontents of this Report. In 2004/05, the Forum willcontinue to conduct further stakeholder researchand engagement as well as share best practicesacross the Company.

Divisional and Area CSR ActivitiesTo ensure our CSR efforts tackle the right issues in different business areas, we have separatestrategies for our Food, Clothing (includingBeauty), Home, Money (financial services),International Franchises and store design. Thepriority in our Home division, for example, is thesustainable sourcing of wood. In Clothing, cottonand dyeing are high on the agenda. Thesestrategies are at different stages of completionwith some already supported by action plans andtargets and others yet to be formally agreed.

In 2004/05 we aim to use these strategies todevelop action plans across all areas of thebusiness. This will improve our ability to assesshow we are performing against the expectationsof our stakeholders.

CSR TeamWe have a dedicated CSR team, which helps runthe CSR Committee and Forums and oversees thedevelopment and management of CSR strategiesand key projects. In the last 12 months, this hasincluded an extensive programme of CSRcustomer research and consultation, developingthe content for this Report, managing a cross-company review of wood sourcing and launchingthe Marks & Start work experience programme.The CSR team also takes the lead in enablingconsultation with many external organisations. In 2004/05, the CSR team plan to conduct andfacilitate further stakeholder research andconsultation.

Corporate strategies require commitment fromthe top and systems to ensure they can bemanaged at every level of the Company.

CSR CommitteeOur CSR Committee – one of four Board levelCorporate Governance groups – providesleadership on this agenda. It meets at least threetimes a year and its activities have included thedevelopment of our CSR framework andPrinciples, hosting a feedback event forrepresentatives of stakeholder groups, andidentifying internal sponsors of key issues.

Looking ahead, the Committee aims to furtherintegrate CSR systems across the Company and toreview performance on key initiatives. It comprises:

Luc Vandevelde, Group Chairman (Chair)Alison Reed, Executive Director, FinanceGraham Oakley, Group Secretary and Head ofCorporate GovernanceJack Keenan, Non-Executive DirectorPaul Myners, Non-Executive DirectorFlic Howard-Allen, Director of CommunicationsYasmin Yusuf, Creative DirectorDavid Gregory, Head of Technology, Food DivisionEd Williams, Head of CSR (Secretary)

Executive CommitteeOur Executive Committee, chaired by the ChiefExecutive Roger Holmes, receives regular updateson CSR so that decisions can be made on anymajor changes to operational policy. It is the roleof this committee to run the day-to-day operationsof the Company and to help formulate strategyand action what has been agreed with the Board.

Society is changing fast and we know that it isnot enough to rely on our CSR heritage. Wemust adapt continuously to changes inside andoutside our business.

FEEDBACK COMMENT

“I think it’simportant to show

the CSR Committeeas senior people

because this shows a serious

approach.”

Non governmentalorganisation


Listening and learning

The table below outlines who our stakeholders are and the many differentways that we listen and learn from them. We constantly use the feedbackgathered to help us shape our CSR activities. For example, feedback on our2003 CSR Review has contributed significantly to the development of thisyear’s Report and our CSR programme.

In 2004/05, we will start to survey employees every six months to assesstheir awareness and support for our CSR initiatives, concentrating initially onthe Marks & Start programme.

WHAT OUR CUSTOMERS SAYLast year we ran a series of CSR research and consultation exercises withcustomers. We initially used six consultation groups and then tested theirfindings on a sample of 500 customers. Results were measured and cross-checked against similar work being done by our Food and Money divisions.

Our customers saw CSR activity as falling into four levels of importance,and expect us to be most active in the top two:

1. How we make money – our day-to-day business behaviour2. What we put back in to society and the environment3. Support for good causes4. Sponsorship and funding for public events.

In particular they identified five issues that they considered important enoughto want more information on. These issues are the focus of this Report.

Stakeholders How we listen and learnCustomers Sales information

Monthly monitoring of views Annual independent CSR SurveyCSR customer consultation and research programme

Employees Business Involvement Groups/ Works Council – representing employees locally, regionallyand nationally throughout the CompanyConfidential help line‘How are we doing?’ – a programme of employee surveysInternal communications including an employee magazine, regular business updates and team briefings

Shareholders Annual General MeetingCollation of feedback questions from individual shareholdersRegular meetings and presentations with institutional investorsProgramme to survey institutional shareholder satisfactionParticipation in Social Responsibility surveys and benchmarking, such as the Dow JonesSustainability Indexes and FTSE4Good

Suppliers, including franchisees Regular visits, meetings and discussionsProgrammes to survey key supplier and franchisee satisfactionAttending major UK agricultural shows and running farmers’ listening groupsDirect relationships with important raw material suppliersTaking part in the Ethical Trading Initiative

Community Regular meetings with key charity partnersPartnership initiatives to address issues of employability and education

Environment and animal welfare groups Regular meetings and discussionsActive participation in benchmarking and surveysPartnership initiatives across a wide range of issues such as wild fish, fish farming, freerange eggs, food pesticides and food miles

Government and regulators Regular meetings with bodies such as the Food Standards Agency, Health and SafetyExecutive, environmental regulators, Financial Services Authority and key governmentdepartmentsLocal authority partnership initiatives on environmental health, fire safety and trading standards

To develop informed and confident CSR policies it is importantthat we listen to the opinions and views of our stakeholders –the people who influence the way we do business.


Issue One

Sustainable raw materials

As worldwide rates of consumption and disposal increase, many types of raw materials are being used faster than they can be replenished or are produced in a way that damages theenvironment. This is clearly unsustainable. If no action is takento address these concerns the stark reality is that some rawmaterials and natural habitats will dwindle or be lost altogether.


ISSUE ONE SUSTAINABLE RAW MATERIALS

FOOD MILES AND LOCAL SOURCING“Food miles” is a relatively new idea in thedebate about sustainability. Typically it is taken tomean the distance travelled to move food fromthe place it is produced to the store where it’sbought. But increasingly the definition goes wider,to include issues like locality, freshness, use ofpreservatives, packaging, choice, support for UKfarmers and quality. Many environmental groupsattach particular importance to food beingproduced close to where it is sold.

We are contributing to this important debateby funding a four-year post-graduate researchproject on food miles at the University of Surrey.This is now in its second year and is focused onidentifying and measuring the environmentalimpact of our sourcing policies across a range of foods. It will go on to study social andeconomic impacts and we hope to use thefindings to improve how we source products andcommunicate to customers about the decisionswe have made.

As a retailer, we use a huge range of raw materialsto produce our goods. Because of this, it is criticalwe manage our use of these materials sensitivelyand pay proper regard to how we affect naturalhabitats and bio-diversity.

But making a difference here is not as simpleas we would like. It requires new types ofstandards to be set and adhered to across theworld. As some materials – such as cotton andpalm oil – are traded globally, our ability to affectchange may at times be modest. We need towork closely with suppliers, government bodies,environmental groups and local communities topromote sustainability.

This section covers the progress we havemade in working to ensure some of our mostimportant raw materials are sourced in a moresustainable way. Our action to address theseissues falls within Principle One of our CSRframework (see page 7).

FIELD-TO-FORKIn November 2003 we launched a new over-arching set of standards to cover themanagement of our supply chain for fruit,vegetables and salads. These were drawn up afterconsultation with suppliers, government bodiesand other organisations and covers aspects ofproduction from “field-to-fork”.

We have commissioned independent researchto look at similar systems around the world. As aresult, we believe our Field-to-Fork scheme goesbeyond the British and European assuranceschemes used by other retailers, being the first toinclude such a wide range of requirements. Ourstandards cover traceability, minimising pesticideuse, ethical trading, support for non-GM foodsand food safety. They also recommend oursuppliers move towards recognised best practiceschemes on issues such as protecting theenvironment by adopting LEAF (Linking theEnvironment and Farming) Marque, whichprovides independent certification that standardshave been met (see www.leafmarque.com/leaf/ formore information). We have shared these newstandards with the National Farmers Union andthe national food press.

Over the next 18 months, we plan to work withdirect suppliers to extend full implementation ofthese standards to the many thousands ofgrowers and farms that supply us indirectly. Weaim to support this with auditing to help usidentify those areas where the challenge ofmaintaining standards is greatest.

Supporting UK farmersOur customers are taking a much greaterinterest in where the food they buy isproduced. To help them we have started toidentify the farmer or grower and theirlocation on the labels of all British produce.

This year we also started bringing oursuppliers and our customers together.During the Autumn and Winter we ran a“meet the farmer” initiative so thatcustomers could talk to some of the peoplewho share our passion for supplying thefreshest, best produce we can find.Following a pilot at our Bluewater store inKent, dozens of suppliers were invited tomeet customers in 25 of our larger stores.We also held a media event at our Londonhead office to introduce suppliers andgrowers to the press to demonstrate whatmakes Marks & Spencer food special.

CASE STUDY

FEEDBACK COMMENT

“I was reallypleased to see

that you’d includedfood miles and that

you’re right – it’smore complex than

many think. Localproduce doesn’t

always meanenvironmental

efficiency.”

Government agency



sales significantly outstripped the rest of our foodbusiness and the industry as a whole in 2003/04.

We have received awards for our organicfoods. Our organic Parmesan was category awardwinner in the food industry’s Q Awards 2003 andour Somerset Brie won the Organic award at theRoyal Bath and West Show.

We believe we have a role to play inexplaining organic farming to our customers anddistributed a leaflet on the subject at our largeststores in October’s Organic Week 2003. The SoilAssociation verifies the majority of our organicfoods and also attended one of our ethical tradetraining days to help develop its own policies inthis area.

ClothingWe believe the arguments in favour of organicfarming apply as strongly to non-food crops suchas cotton as they do to food crops.

During 2003, we increased our use of organiccotton to 3,000kgs. Although still a very smallproportion of what we use, this is part of a long-term target to make sure at least 5% of all thecotton we use is organic by 2010. Our approach isto develop specific ranges of best quality organiccotton and also to blend it with ordinary cotton toencourage more producers to turn organic.

ORGANIC PRODUCTSOur aim is to provide a choice of organicallyproduced goods that meet our standards onquality, safety and ethical trading.

Organic production aims to cut down the useof chemicals like pesticides, fertilisers and growthregulators. It’s about maintaining the health of theenvironment so that it can stay in good shape tosupport the further production of food and crops.

Strict regulations govern organic farming.Growers can’t just declare themselves organiconce they’ve stopped using certain chemicals.Every field must be farmed organically for twoyears before any crop or animal raised on the landcan be sold as organic.

FoodOur range of organic food was re-launched in2003 to ensure we meet customer needs with thebest mix of products. There are now 180 productsin the range and we estimate some 60% of themare sourced in the UK. We’ve also extended ourcatalogue into new areas like Prepared ReadyMeals and Prepared Christmas Turkey joints.

Organic foods are more expensive toproduce. But to ensure our range remainsaffordable, to date, our approach has been toonly make the same cash profit margin on organicas we do on equivalent conventional products,rather than a straight percentage. Organic food

A new commitment to UK applesWe have increased the amount of UK-grownGala apples in the September to FebruaryUK season this year from 40 to 95%. Ouraim is to stock 100% UK-grown Gala applesthroughout the season in 2005.

Making this shift involved close workwith 14 selected growers in Kent, Suffolk,Worcestershire and Essex. We also stockother popular UK apples such as the Cox,which is the most popular UK apple,accounting for nearly 50% of our UK applesales. Another popular apple, the Braeburn,will increasingly be sourced from UKgrowers in season rather than orchards inFrance, Germany and Italy. We startedselling Braeburns grown in Kent, where thegrowing season is longer, in 2001. Oureventual aim is to supply all Europeanseason Braeburns from England.

CASE STUDY

Organic yogawearView From, Marks & Spencer’s exclusivesportswear brand, launched a new range oforganic cotton yogawear in 10 stores inFebruary 2004.

The range, produced with a specialistUK yogawear supplier, Gossypium, usesAgrocel® Pure & Fair cotton which isproduced organically and is traceable backto individual farms in India.

The farmers were paid 8% more fororganic cotton. A further 1% of everypurchase price goes to support the Agrocel®

Pure & Fair Cotton Project in rural India, setup to support small farm communities earna living by increasing the scale of organiccotton farming (see www.agrocel-cotton.com/english/en_home.html for more information).

CASE STUDY



catching of cod can be reduced by choosingfishing grounds carefully and rigging nets to takeadvantage of the fact that haddock trying toescape swim upwards whereas cod tend to swimdown. If these early findings prove correct, we willintroduce the techniques to all the boatssupplying us with Scottish haddock.

The Society has put a list of 32 threatened fishout for consultation and we plan to check our ownlist against this latest version in 2004/05.

Salmon farmingIn the last 30 years salmon has moved from beinga luxury reserved for the wealthy, to a fish whichmany more can afford to enjoy, thanks to thedevelopment of salmon farming.

But more recently, environmental groups haveraised concerns about salmon farming includingpollution, contaminated feeds and the risk ofescaped fish spreading disease to wild stocks.

We buy most of our salmon from farmsbecause we believe this is the best way to protectdepleted wild stocks. Most of our salmon comesfrom Scottish farms, a small quantity for Irelandfrom local farms and a small amount of MSC-certified wild salmon.

We have a Code of Practice for our fish farms to ensure salmon is farmed and fed to ourstandards. We require that our suppliers audittheir farms against this Code and this year plan to further improve our system of checks.

Our finished product suppliers are required toaudit feed suppliers as part of our Code ofPractice. Feed suppliers are in turn legallyrequired to check the oil they use in feeds forlevels of dioxins, as well as PolychlorinatedBiphenyl (PCB). Any batches of oil that breech EUsafety levels are not used in feed.

Independent research in January 2004 raisedconcerns about the levels of PCBs in Scottishfarmed salmon. We aim to work towardsdeveloping a unique feed formulation in 2004/05.

PrawnsThe Environmental Justice Foundation (EJF) iscampaigning against the poor environmental andsocial conditions on farms producing “warmwater” prawns in tropical countries.

We have met with them to discuss theirconcerns and the current standards and checks wehave in place covering ethical trading, feed, use ofchemicals, waste management, animal welfareand protection of the environment.

We will continue to discuss how these issuesare best addressed with our suppliers and groupsincluding the EJF.

FISHSome 60% of the world’s sea fish is now thoughtto be under threat from over fishing. To counteractthis, the European Commission has cut thenumber of fish that can be caught in Europeanwaters. We are committed to protecting fish stocksand to the long-term survival of the fishing industry.

We work with the industry to address thisproblem. We avoid buying fish where the origin ofthe catch is unknown and, since 1998, have beenworking with the Marine Stewardship Council(MSC), a charity dedicated to preserving fish stocks(see www.msc.org for more information). We sellfish approved under the MSC environmentalassessment scheme and co-operate with theCouncil on key projects. In March 2004 ourchairman, Luc Vandevelde hosted an MSCfundraising event where artwork from 49 leadingUK artists was auctioned raising over £60,000.

Conservation is one of our main concerns whenwe source fish. To guide us we compare ourranges with the Marine Conservation Society’sGood Fish Guide, which lists 20 popular fish theSociety believes retailers should avoid selling (seewww.mcsuk.org for more information). The MSCguide includes all rays and skate because sometypes are considered to be under threat andhaddock, because endangered cod is accidentallycaught when it is fished. As a result of this wehave added Thornback rays to our own bannedlist and taken steps to improve the fishing ofhaddock. On the suggestion of one of ourfishermen, we worked with the Seafish IndustryAuthority to place observers on vessels to see ifthe problem of accidentally caught cod could beaddressed. The initial trials indicate that accidental

Invest in FishWe are working with the World WildlifeFund UK and the National Federation ofFisheries Organisation to develop the Investin Fish initiative. This aims to tackle over-fishing while protecting the needs of thediffering communities who depend on thesea. Based in the South West of England,the project started in early 2004 andinvolves scientific research and consultationswith groups such as local communities, the fishing and food industries, restaurantoperators, environmental groups, seaanglers and retailers. The aim is to agreerecommendations by 2005 to safeguard fish stocks and the livelihoods that dependon fishing.

CASE STUDY



PEATWe know how important protecting peat, and thebiodiversity it supports, is for many groups,including the Royal Society for the Protection ofBirds. We use peat in growing flowers, plants,tomatoes and mushrooms but we take steps tominimise the environmental impact of this.

But we know the best approach is to searchfor alternatives. Last year we announced plans toreduce gradually the amount of peat we and oursuppliers use to grow flowers and plants, currentlyaround 11,000m3 a year. Finding alternatives thatboth protect the environment and allow us tomaintain the quality of products is challenging.Those we do find are assessed with the help ofresearchers from Reading University who checkquality and ensure that switching to alternativeswill not damage the business of our suppliers.

By December 2003 we had increased theamount of non-peat growing media (like bark andwood fibre), that we use in growing plants andflowers from 15 to 25% according tomeasurements made by the independentconsultancy, ADAS. We plan to double this figurein the next 18 months and then to set furthertargets with our suppliers.

Reducing peat usage – targets and performance

Usage by Usage by Usage byDecember 2002 December 2003 December 2005(actual) (actual) (target)

% of growing medium for flowers and plants made from peat 85% 75% 50%

WOODWood is a versatile raw material and whenmanaged effectively is a renewable resource thatcan help support natural habitats and absorbdamaging greenhouse gases. Badly managedforestry can destroy habitats and endanger thesurvival of wildlife, however.

We use wood extensively throughout ourbusiness. Last year we reviewed wood sourcingpolicies across the Company. These range fromsourcing the wood used in the furniture we selland in our store and office fittings to packaging,paper used for credit card statements, magazinesand books and even in women’s clothing whenthe fabrics are made from wood-based fibres.

The review pinpointed areas where oursourcing is acceptable but also highlighted someareas for improvement. This is a major challengefor us as the launch of the new Marks & SpencerLifestore has brought an additional 450 suppliersto our base, many using wood in their products.

We are making changes. For example, thefindings of the review were a contributing factor inthe decision to end the relationship with our mainIndonesian supplier of garden furniture. We havealso formed a partnership with Tropical ForestTrust who will help our main Indonesian furnitureproducers to improve the wood sourcing fromtheir own suppliers.

Our focus for 2004/05 will be to improve thesourcing of:

• Wood furniture suppliers in the Far East• Cardboard packaging for foods

WJ Findon tests peat-free optionsFindons, a major supplier of bedding andpot plants to Marks & Spencer, has beentesting different growing mediums toreduce the use of peat.

Mixes between 40% and 100% peat-freehave been tested on bedding plants likebegonias, geraniums and lobelia withgenerally good results. Many plants grewbetter without peat, although needed morefrequent watering. Some, like begonias andmarigolds, grew less well with less than 75%peat. As a result, the Bradford-upon-Avoncompany will be using a 40% peat free mixfor most of our products in the year ahead.

CASE STUDY


Issue Two

Responsible use of technology

We believe that it is as much the role of science to alert theworld to risk, as it is to uncover remarkable new discoveries.This is true, for example, with technologies such as geneticmodification or some chemicals which are now regarded asunacceptably risky by some parts of society.


ISSUE TWO RESPONSIBLE USE OF TECHNOLOGY

Legislation also limits the maximum amount ofresidues that can be present, called MaximumResidue Levels (MRLs). Marks & Spencer tests for a minimum of 129 different pesticide residueson products.

We believe it is responsible to try to balancethe need for sufficient quantities of high qualityfoods with meeting environmental concerns.During the last year, we have argued this case in meetings and consultations with suppliers,pesticide manufacturers, and environmentalgroups.

In practice, we have set ourselves two main goals on fresh fruit, vegetables, potatoesand salads.

Firstly, to use minimum amounts of pesticidesthat customers and society trust, and, eventually,to eliminate the residues that are sometimes leftin small quantities. As a first step we have setinterim pesticide residue-free targets. To monitorthis, we work with suppliers, growers and anindependent consultancy service to test produceat different stages between production and sale.You can see how we are progressing against thistarget in the table over page. In 2003, werecorded an overall score of 72% residue-freefoods. We are pleased with our overall progressbut are working with suppliers to increase thepercentage of pesticide residue-free fruit.

Secondly, we have acted to ban or replace 79 types of pesticides after consultation withsuppliers, and environmental groups. Sixty ofthese have already been replaced and 19 are inthe process of being phased-out. Applying thesestandards not only in the UK but also around theworld is a major challenge.

Every year we sit down with suppliers todiscuss their performance over a wide range of issues and during 2003 we started to includeimprovements in pesticide reduction as part ofthis review. In search of worldwide best practice,three of our technologists also attended aspecialist independent course on pesticidemanagement in Kenya which in turn has beenshared with colleagues in a training workshop.This enables us to provide better advice tosuppliers. Friends of the Earth rated us the bestUK retailer for managing pesticides in 2003.

We believe it will become increasingly importantfor retailers and other companies to demonstrateto customers and other stakeholders they can betrusted to use new technologies.

While current scientific knowledge isimportant to our decision-making, it is only part ofit. Our approach broadly follows what Sir WinstonChurchill called: ‘science on tap – not on top’. Weuse science but also take account of the views ofcustomers and other parts of society to informwhat we do.

This section provides an update on some of the most important technological issues ofrelevance to Marks & Spencer products. As withthe preceding issue, our action in this area fallswithin Principle One of our CSR framework (see page 7).

CHEMICALSChemicals are used in the production of everyproduct we sell. Our approach of “science on tap,not on top” helps us to balance views and adviceand then place each chemical in one of fourcategories:

• No concerns – no action required.

• Banned – either altogether or in certain uses.

• Being replaced – a lower level of concernleading to phase out.

• Monitoring – when no definite evidence yetsuggests a chemical should be replaced orbanned but there are some concerns or scientificresearch that suggest we need to watchdevelopments carefully.

Our annually updated Chemicals Strategy lists thechemicals we have banned, where we are workingto find replacements and where we are keeping awatching brief and is available on our websitealongside other related information.

We believe that a robust system of regulationcovering the use of chemicals will be to everyone’sbenefit. Keen to maintain customer confidence,we contributed extensively and publicly during2003/04 to the European Union’s proposed newregulatory system, Registration, Evaluation andAuthorisation of Chemicals (REACH).

PesticidesPesticides – man-made or natural – help ensure aplentiful food supply by destroying the pests anddiseases that damage crops. By law in the UK andmany other parts of the world, their use must bemanaged and monitored very carefully.



approach proved to be very complex andprobably not capable of providing the range ofinformation we will require in the future. We arenow looking at the different available systems thatcould help us do this more efficiently.

PVCPVC, or polyvinyl chloride, is a type of plastic.When items made from PVC are manufacturedand disposed of – either by incineration, landfill or recycling – chemicals are released. Theseemissions cause environmental concerns. TheEuropean Commission has published a series ofreports and a Green Paper on the possible causesof pollution and risks linked to the disposal of PVC and it is debating what actions it might takein the future.

As it is possible to replace PVC packagingwith alternatives we decided to act immediatelyand, by the end of 2002, had made substantialprogress across the Company, replacing around99% of PVC packaging on food products, ourmost substantial use.

Generally, our remaining use of PVC in foodpackaging is where it is required for reasons of safety such as to seal jar and bottle caps.

We are also looking for safe alternatives wherewe continue to use PVC. However, we have notyet been able to find suitable alternatives forsome items of footwear, luggage and store andcredit cards.

GENETICALLY MODIFIED FOODSGenetic Modification (GM) is the science ofextracting a gene from one type of livingorganism and adding it to the genes of another to create particular qualities like better resistance

2003 Reducing pesticide residues – targets and performance

Residue free Interim targetsSample (at or above 0.05 % Residue for %size parts per million) free residue free

Vegetables* 82 74 90% 90%Potatoes 17 12 71% 80%Salads 54 41 76% 80%Fruit 72 28 39% 60%Organics** 27 26 96% 100%Other foods 25 18 72%Totals 277 199 72%* During 2003, one sample of fine beans was found to contain a residue in excess of the MRL. We have stopped buying

from this grower. ** On investigation the residue detected in one sample of organic produce was considered by the independent laboratory to have

come from a natural source rather than an application of pesticide.

DyeingDyeing and finishing involves chemical processesthat can have a big impact on the environment.We need to monitor and assess our use of dyesconstantly as processes change regularly to reflectfashion seasons and new trends in fabric typesand colour.

Our approach is developing. OurEnvironmental Code of Practice on Dyeing,Printing and Finishing, last updated in 2001, detailsthe chemicals that are banned or require carefuluse and is available from our website. We plan toupdate this Code of Practice during 2004/05.

To ensure the fabric we use meets thesestandards we conduct independent tests onfinished garments.

In 2003/04 we also conducted 14 independentaudits of supplier self-assessments (accounting foraround 15% of our most important dye houses), tocheck on-site management of dyeing, printingand finishing chemicals. While successful inmeasuring performance at individual sites, this

Awards for innovation We try to encourage innovative ways tominimise pesticide use and some of thesehave led to awards for our suppliers.

Homegrown, a Kenyan supplier offlowers, runner beans, mange tout andsugar snap peas, took first prize in the 2002 Worshipful Company of FruiterersEnvironmental Awards for developing anatural pest control systems using waspsand other insects.

Scottish vegetable supplier, KettleProduce, was highly commended in the2002 Worshipful Company of FruiterersAwards for developing a system to controlcabbage root fly pests on Marks & SpencerSwede. The system uses netting and garlicgranules instead of organophosphates.

CASE STUDY

Children’s clothingIn late 2003, environmental groups targetedretailers – including Marks & Spencer – sellingchildren’s clothing containing chemicals theybelieved to be harmful. These chemicals(phthalates and alkylphenol ethoxylates) areused in motif transfers and printed panels.We were able to explain that we had started aprogramme to find replacements nearly twoyears ago and now estimate that around70% of our children’s clothing in thiscategory is free of these chemicals. We aim to replace all these applications byAutumn 2004.

CASE STUDY



RADIO FREQUENCY IDENTIFICATIONDEVICESRadio Frequency Identification Devices (RFID) tags – small micro-chips that hold information andcan be read using radio frequency scanners – arethe next step on from paper barcodes. We startedto introduce this technology into our fooddistribution systems in 2002 to increase the efficiencyand accuracy of delivering products to stores.

Using RFID tags to improve stock control instores is the next logical use of the technology.However, a number of civil society groups haveconcerns that it could then be used unethically to track people and their behaviour. We helddiscussions with the National Consumers Counciland Caspian to understand their worries and have developed responses for a number of theirconcerns. For example, any RFID tags used on products are made very visible and easilydetachable. It is our intention to continue thesediscussions.

In October we tested the potential benefits of better stock management using RFID tags on10,000 items in our High Wycombe store. The trialshowed we could use the technology to orderreplacement products automatically as items soldfor next delivery. A larger scale trial will be carriedout on men’s suits and shirts in parts of the SouthEast in early 2004/05. We see great potential inRFID technology and are committed to ensuringwe use it in a way that is acceptable to ourcustomers and wider society.

to disease. Our customers expressed strongconcerns about eating GM foods and in 1999 we decided not to sell foods made with GMingredients or derivatives.

We reviewed our food catalogueconcentrating on where GM ingredients andderivatives were most likely to be used. Where it was necessary, audits were conducted by suppliers, independent specialists or Marks & Spencer personnel. Our technologiststravelled the world to find non-GM sources of raw materials and then set up traceability schemesso that we could track ingredients from source to shelf. Traceability is being further improvedusing a system which will include assessments byindependent specialists. This gives us confidencethat our food products are made with non-GMingredients and derivatives.

We also recognise that these concerns extendto animal feeds. So after addressing ingredientsand derivatives we looked to see where we couldensure the use of non-GM feeds. Animals used in the production of a wide range of our freshfoods are now fed on non-GM diets (see table).Using non-GM feeds for animals that producefood ingredients is a much greater challenge. For example, to introduce non-GM feed to herdsthat produce milk used as an ingredient in dairyproducts requires us to develop solutions to somecomplicated issues.

In the future we anticipate that the availabilityof non-GM crops for both food ingredients andanimal feed will become a challenge for us ascountries move over to growing GM varieties. In light of this, we are reviewing how we cancontinue to meet our customers concerns on GM foods.

In August 2003, Greenpeace rated our actionson the issue of GM ahead of all other foodretailers.

Our use of non-GM foods and animal feeds

Non-GM?

Food ingredients and derivatives YesFeed used in fresh beef, pork, poultry and lamb production YesFeed used in fresh egg production YesFeed used in farmed fish production YesFeed used for fresh milk production YesAll other animal feeds No


Issue Three

Animal welfare

People hold a wide range of views on animal welfare. Somepeople believe it is never ethical to use animals in making any product while others argue for the highest standards of welfare possible.

Our customers have told us that upholding goodstandards of animal welfare is very important,particularly in the production of foods (althoughthere are also issues to be considered with someClothing, Footwear, Home and Beauty products).We work with our suppliers and selected animalwelfare groups to improve standards within ourquality management systems. All of our work inthis area fits within Principle One of our CSRframework (see page 7).

FOODFood products are our customers’ greatest animalwelfare concern, so we work hard to meet theirexpectations across our product range.

In 1997, Marks & Spencer became the firstmajor UK retailer to exclusively sell free-rangeeggs. Building on this, in September 2002, webecame the first major UK retailer to use only free-range eggs in all our food products. This covers250 million eggs a year, laid by 700,000 chickens.Animal welfare groups welcomed the move, andmarket research suggests that our customersassociate this type of initiative with Marks & Spencer.


ISSUE THREE ANIMAL WELFARE

Improved porkIn 2004/05 we plan to work closely with a Scottishsupplier to move all our fresh pork over to a typeof pig that has been selected for its improvedtaste. As part of our monitored Select Farmstandards, the animals will be bred outdoors and benefit from more space and straw bedding,allowing them to live and behave more naturally.

CLOTHING, FOOTWEAR, HOME AND BEAUTYIssues of animal welfare in non-food products,such as clothing, are more difficult for us to trackand influence, as materials such as leather andwool are traded as commodities around theworld. Nevertheless, we have reviewed our animalwelfare policies on Clothing, Footwear, Home andBeauty products over the last 12 months. Forexample, we require feather and down fillings,used in home products such as cushions andduvets, to be sourced as by-products from thefood industry.

For raw materials made from animal skins,such as leather and sheepskin, we try to sourcefrom locations that depend on food production as a main source of income. We believe that manyof our positions on animal welfare such as notselling any product made from fur have beenpracticed for many years. However, during2004/05 we plan to formalise and develop thesepolicies. We are now engaging with a number ofanimal welfare groups and suppliers to help usencourage higher standards.

In beauty products, our customers’ mainanimal welfare concern is testing. Marks & Spencerhas not commissioned any animal testing, or askedsuppliers to carry any out, since 1988. Instead, weconsistently use human tester trials and othertypes of safety checks.

But our free-range egg policy is just part of whatwe do. In our submission to animal welfare groupCompassion in World Farming, we identified more than 20 other projects, including work onimproving welfare for chickens and best practiceon pig farms. This achievement earned us theaccolade ‘Welfare Ideal – Most AdvancedSupermarket’ (see www.ciwf.co.uk for moreinformation).

Tastier, slower grown chickenFor some time now, concerns have beenexpressed about health and welfare problemscaused to chickens by the routine use ofantibiotics to increase growth rates. We sharethese concerns and set out to establish a betterbalance between the welfare of the birds and theneed for efficient food production.

From March 2003, all our free-range chickenproduction moved to Oakham Gold. This chickenis 10% slower growing than others. Livingconditions are improved with the use of lowerprotein diets – high in maize and free from growthpromoting antibiotics – access to straw bales, andthe provision of external ‘wigwam’ shelters madefrom conifer branches.

In November 2003 we adopted a similarapproach to our standard non-free range freshchicken, moving them to Oakham White which is also 10% slower growing. An improved non-GMdiet free from growth promoting antibioticscombined with living conditions that include strawbales for perching and resting, all help to producewhat we believe to be better-tasting meat. TheOakham White is also being used in selectedprepared recipe dishes.

All our whole fresh Oakham chickens are alsolabelled with the name of the farmer and countryof origin. With sales of 145 million birds a year, webelieve this is an important move forward.

Select farmsAll our fresh meat, poultry, eggs and farmed fish come from suppliers who work within theMarks & Spencer Select Farm scheme ofstandards. In addition to our farmers and suppliers,we have invited a team of external specialists onfeed, nutrition, health, medicine, animal welfare,transport, slaughter and environment to help usreview standards during 2004/05.

FEEDBACK COMMENT

“Your 2003 CSRReview underlinesthe progress you

have made and theimportant role aretailer can and

should play inchanging consumerattitudes on animal

welfare.”

Animal welfare group

20˚

120˚

110˚

30˚

30˚


Issue Four

Ethical trading

We live in a global marketplace where goods and services are often made in one part of the world and sold in another.This demands awareness and vigilance in our sourcing andethical trading policies.


ISSUE FOUR ETHICAL TRADING

This approach allows us to tackle issues of fair payfor workers and decide whether it’s right to sourceproducts from a particular country or not.

We get the best results through co-operationand sharing knowledge. We have published self-help guides in 11 different languages as well asdetailed briefing notes on the employmentlegislation of 60 countries. In 2003 we held aseries of one-day local language workshops withsuppliers on our requirements and supportedbenchmarking groups in a wide range of countries.

We also provide practical tuition on ethicalauditing to enable our employees and suppliersbecome accredited ‘social auditors’, trained torecognise and act on areas of their operations whichfall short of expectations. For the first time, in 2003,we invited eight members of human rights groupsto participate and we intend to do this more often.

Supplier performance against our GlobalSourcing Principles and the ETI Base Code isassessed through a system of audits. The majorityof these audits are supplier self-assessments,although these are backed by a lesser number ofMarks & Spencer and independent assessments.As our confidence in the information we receiveback from suppliers grows, our intention is to relymore on self-assessments and to reduce theoverall number of Marks & Spencer assessmentsand independent checks.

CLOTHING, FOOTWEAR, HOME AND BEAUTYMost Marks & Spencer Clothing, Footwear, Homeand Beauty products are sourced from abroad.

Every quarter, we meet our largest suppliers(representing around 85% of the non-food,overseas products we sell), to share best practiceand ensure a consistent approach. To date around80% of the suppliers that produce our garmentshave been assessed.

We have always included our Home productsuppliers in our ethical trading system, but theneed to source from around 450 additionalsuppliers to provide products for Marks & SpencerLifestore has been a significant challenge. It wasnot possible to audit all of these thoroughly priorto ordering. In some cases we assessed the qualityof the factory and health and safety practices aswell as identifying and agreeing any potentialrequirements to improve wages, hours andbenefits if we place further orders in the future.

The global market can be very efficient, buthuman rights groups and trade unions areconcerned that, in some parts, internationalstandards of working are inconsistent, low andpoorly implemented. The issue of ethical tradingis made complex both by the distances involvedand because different political and regulatoryregimes, some often under-developed, apply indifferent places.

Our efforts to ensure ethical trading in oursupply chain is about creating great places towork, the second Principle of our CSR framework(see page 8).

GLOBAL SOURCING PRINCIPLES To address the complexities of ethical trading, wedeveloped a set of Global Sourcing Principles inpartnership with our suppliers. First published in1999, they can be found on our website and aredesigned to be applied when we buy productsand services.

These Principles set down our requirementsfor suppliers to comply with all relevant local andnational laws, particularly on: working hours andconditions, health and safety, rates of pay, termsof employment and minimum age of employment.All our products must be labelled with the countryof production and many food products havefurther information about raw materials. This initself is a unique approach for a large-scaleretailer. It means that customers have thenecessary information if they want to avoid goodsproduced in a certain country because of politicalor social beliefs.

As our relationship with a supplier develops,we expect them to improve working conditions inline with the more demanding standardspromoted by the Ethical Trading Initiative (ETI), a collaborative group of companies, trade unionsand human rights groups set up by the UKGovernment. Marks & Spencer joined the ETI in1999. These standards, known as the ETI BaseCode, can be found on our website.

Our approachWe have approximately 2,000 direct suppliers offinished products (1,500 non-food suppliers and500 food suppliers). All of them are expected tomeet our Global Sourcing Principles and toencourage their own suppliers to implementthem. New suppliers generally have to pass ouraudits on key issues such as underage labour, pay,working hours and health and safety. In 2003, atleast 40 potential new suppliers were rejected onthese grounds.



local communities with significant benefits inlowering absenteeism. In India the group hasconcentrated on providing work experience andjobs for graduates of a local school, which teachesboth academic and practical skills to deaf, dumband blind children.

In Turkey, Marks & Spencer suppliers haveworked together to find creative ways of providingchild care facilities. Suppliers find this a particularchallenge, not least because they areunderstandably concerned about the health andsafety of having children near a factory. Workingwith newly created worker’s committees, solutionsrange from building an entirely new facility in alocal town to contracting with a local nursery. Thebenefits for employers have included a markedreduction in the turnover of skilled workers.

The worldwide increase in trading with Chinahas opened up issues of poor productivity andassociated problems with long working hours, lowwages and poor quality standards. With this inmind, we formed a benchmarking group of 30 of our Chinese suppliers last year. The initial focuswas on improving health and safety systems andMarks & Spencer met the costs of local expertsteaching the group basic skills in setting these up.Now attention is on productivity gains, with theaim to help cut hours of work whilst maintaining orincreasing wages. Much of this skill will come fromconsultants, again funded by Marks & Spencerand our suppliers.

Chart 1 illustrates how many non-food supplierswere either self or independently assessed lastyear. From these assessments, 407 significantcorrective actions were identified to be carried out by suppliers. The significant increase in totalnumbers of suppliers assessed between 2002 and2003 was a direct result of the increase in suppliersof products for Marks & Spencer Lifestore. Fewerexternal assessments were required last year thanthe year before as we grew more confident aboutthe quality of information received from suppliers.

Our target in 2004/05 is to involve human rightsgroups more in our work in India, Morocco, Sri Lankaand Indonesia. Such groups bring a uniqueperspective on what we can do to make a realdifference to the lives of the people who make ourproducts. Our training programme is set to increase,with a total of six audit skills courses plannedaround the world and an increase in the numberof local language workshop training days to 12.

BenchmarkingOur greatest success comes from helpingsuppliers to help themselves. The setting up oflocal benchmarking groups has really helped oursuppliers make improvements. In Morocco, forexample, a benchmarking group has been directlyresponsible for 1,000 workers completing literacytraining. A benefit to the employers andemployees alike, this has increased productivity by as much as 15% in some factories whereoperators can now read instructions rather thanrely on close supervision.In Indonesia our benchmark group hasconcentrated on improving the health care of

2001

673

210

2002

749

271

2003

1,21

017

4

2004target

1,00

013

0

Total assessed

Chart 1: Ethical trading assessments of non-food suppliers, 2003Number of suppliers

Total independently assessed



Every quarter we meet with our four largestsuppliers together (accounting for 45% of our totalfood sales), to discuss ethical trading. We haveapproximately 500 food suppliers in total. By theend of 2003 over 80% of our suppliers of finishedfood products had been assessed against our ownprinciples and the ETI Base Code. The priority for2004/05 is to cover the rest.

Chart 2 illustrates the number of direct foodsuppliers assessed last year. Our programme ofethical trading was initially started in our Clothingdivision. We have been developing our approachon foods over the last two years. 2003 was themost significant year of implementation to date,resulting in 163 significant corrective actions beingidentified to be carried out by food suppliers.

We are aware that our greatest challenge onfoods is labour standards on farms. To improvecollation of information we have developed withother retailers and our four largest food suppliers,the Supplier Ethical Data Exchange (SEDEX), aweb-based data management system. SEDEXallows suppliers including small farms to shareETI-based audit information with retailers cost-effectively. The annual user fee is only £25 and theETI acts as an advisory body.

Poor employment practices can be an issueanywhere in the world, including the UK. In 2003,the activities of some gang masters – agentsproviding seasonal labour to farms, packers andproducers – were covered in the media. We

Other aims for 2004/05 include establishingsupplier best practice benchmarking groups inIndia and Vietnam.

FOODIn many ways, ethical trading in the food industryis more complex. Some foods are sold ascommodities around the world. A fruit supplier, forexample, might provide both finished products aswell as ingredients for other foods and hundredsof individual farms worldwide might togethersupply our needs for a particular product.

Health care and training in IndonesiaPT Dewhirst, a long-standing clothingsupplier, set up a factory in Indonesia in1998 which now employs 4,300 people. The factory had its own health clinic, but itbecame quickly clear that inadequate localfacilities and a lack of basic health educationwere preventing desired improvements inworkers’ health. Dewhirst’s started workingwith a local health training group, YayasanKusuma Buana, to educate employees andtheir families on health matters. In 2003 webecame involved, helping to fund a newclinic in the local town where people couldbe treated, as well as learn about healthcare and basic hygiene. By the end ofDecember more than 1,000 employees andtheir relatives were registered there as wellas members of the wider community.

CASE STUDY

FEEDBACK COMMENT

“What I want to seeon ethical trading is

what you want toachieve, examplesof the benefits for

those involved, howfar you’ve got andwhat the problems

are. I don’t want just good news.”


2001

171

24

2002

287

36

2003

423

58

2004target

450

65

Total assessed

Chart 2: Ethical trading assessments of food suppliers, 2003Number of suppliers

Total independently assessed



One of our key areas of concern was thestandards of third party suppliers and serviceproviders to our franchise partners, for example,local manufacturers of carrier bags and storeequipment. In response we have now developeda complete social audit programme that has beenused to train CSR Co-ordinators across ourfranchise operators. In February 2004,representatives from 20 of our franchise partnersattended a training workshop run by externalsocial auditors in Dubai, partly funded byMarks & Spencer. Our aim is that our partners will have carried out social compliance audits on60 key suppliers and service providers by July 2004,to create jointly agreed action plans addressingany non-compliance issues.

outlined our concerns on this in evidence to theEnvironment, Food and Rural Affairs Committee.We have had guidelines in place since 2001requiring our suppliers to seek confirmation that theagencies they use have good operating practices inplace. Through the ETI we supported the setting upof a working group to develop a code of practice,which was tested in Spalding, Lincolnshire. TheGovernment plans to report on the trials in May andwe support the need for legislation in this area.

INTERNATIONAL FRANCHISE STORESOur international franchise business currently has 155 stores in 28 countries. These sellMarks & Spencer products, but they are ownedand operated by our overseas franchise partnersunder strict guidelines from the UK business.

The commercial and operating standards ofour franchisees are subject to careful monitoring,and frequent visits combined with thedocumentation of standards form part of our legalagreement with each partner.

In February 2004, our standards were revisedto incorporate the Marks & Spencer GlobalSourcing Principles and to reflect therequirements of the ETI more closely. Our partnerswere then asked to complete a detailed self-audit,covering 10 key areas (listed below) and 71separate measures.

• Employee wellbeing• Work-life balance• Reward• Skills and learning• Communicating and consulting• Equality and diversity• Business operations and conduct• Community and customer involvement• Health and safety• Environment

The self-audits were returned to an independentcompany to be collated and the results werepresented to Marks & Spencer. Each audit wasthen checked against our standards and areas ofconcerns were highlighted for action. We aim tohave implemented, or agreed timescales, forthese improvements by November 2004.

Applying our standards in franchise storesSome franchise operators are already takingaction to ensure that work practices at thirdparty suppliers and service providers meetour standards.

For example our franchise partner in theGulf, Al Futtaim, – with stores in the UnitedArab Emirates, Bahrain, Oman, Qatar andKuwait – is ensuring that its suppliersinclude our CSR standards into their ownoperations. Ethical trading requirementswere included in the recent process toappoint a company to run an in-store coffeeshop in Dubai. All the interested companieswere asked for written guarantees that theywould meet our ethical trading standards.

CASE STUDY


Issue Five

Community programmes

All companies affect the communities in which they operate.Responsible companies have for many years invested in society,but investment can take many forms. It can be in money, goodsor the time and expertise of their employees. Companies canconcentrate on issues which relate to their business or look tomake a difference elsewhere. Our community aspirations andactions are led by the third Principle in our CSR framework (see page 8).


ISSUE FIVE COMMUNITY PROGRAMMES

Initial resultsIt’s early days. But we’ve already conductedresearch on work placements for the homelessand young unemployed. The Work Foundation,who conducted this research on our behalf,concluded that: “Both programmes are working well. They aremeeting their objectives – and in some cases,exceeding them. There have been some internalmanagement and process challenges, but thesehave been identified and are being dealt with.”

We plan to measure and monitor theprogramme regularly, reviewing performance withour partners. These include the Prince’s Trust,DisabledGo, Business Action on Homelessness,and One Parent Families and Parentline Plus.Many of our employees are getting involved tooand we expect over 1,000 employees a year willtake part.

Work placements for the homelessThere are around 400,000 homeless people in the UK and the Republic of Ireland. Some 85%are estimated to have been in work previously. Butmany face prejudice in searching for a job, whichin turn leads to low self-confidence.

We know that work experience can helphomeless people become independent and findlong-term employment. Since 2002, almost 600homeless people have been offered a placement.Of the 274 that completed it, a third have sincestarted work. This early success was commendedin the Business in the Community's Excellenceawards and won the Lord Mayor of London'sDragon Award for community partnerships. Nextyear we aim to provide 200 placements forhomeless people.

Business in the Community (BitC), a businessfunded charity that promotes best practice in CSR,believes it’s best if community programmes fitwith a company’s day-to-day activities (seewww.bitc.org.uk for more information).

Over the last few years our communityprogrammes have changed. Instead of providingsmall-scale, philanthropic donations we haveconcentrated on four key issues – employability,education, health and community safety. Ouroverall philosophy is: Helping others to helpthemselves. The aim is to assist those who in turnwill be able to pass on benefits to society at large.In the coming year this focus will further tightenaround our employability programme.

We were founding members of BitC and ourinvolvement today is as strong as ever. We aremembers of their PerCent Club – which commitscompanies to investing at least 1% of pre-taxprofits in community projects. During 2003/04 ourtotal investment in the UK, Ireland and ex-HongKong China was £7.2 million. In 2004/05 we planto improve the way we record all the employeetime and products we contribute to communityprojects.

MARKS & STARTMarks & Start is our new flagship communityprogramme. It builds on our existing activities tooffer work experience to people of different agesand walks of life. This major programme aims toenable over 2,500 people each year, many facingreal barriers in getting a job, to prepare for theworld of work. It is aimed at the homeless, peoplewith disabilities, the young unemployed, schoolchildren, including those in deprived areas,students who are the first in their family to aim forhigher education, and parents wanting to returnto work.

Each part of the programme is tailored differently.But every participant will receive:

• A two to four week placement in either a Marks & Spencer store or office in the UK or the Republic of Ireland.

• A ‘buddy’ (a Marks & Spencer employee) to help them adjust to the world of work.

• Travel expenses, lunch, a uniform (wherenecessary) and a reference (where requested).

In designing Marks & Start, we carried outwidespread consultation within the Company, withcustomers and CSR professionals. To demonstrateour commitment, a Marks & Spencer director orBoard member sponsors each part of theprogramme.

Gary’s storyIn 2002 Gary was homeless in Cambridgeafter his relationship broke up. He met aBusiness in the Community worker at thehostel where he was staying who told himabout a two-week work placement schemewe were running in our local store. Hejoined the scheme and after a fortnight of working with a buddy had learnt somenew skills, written a CV with our help and received a written reference. On thestrength of this he was offered a threemonth contract and later a full-time post in the store. Now a member of the store’sBusiness Involvement Group, Gary has been promoted to Section Manager. He now has accommodation, transport and a full-time job.

CASE STUDY

FEEDBACK COMMENT

“CSR is not aboutthrowing money at

good causes – it’sabout how you dobusiness. Donatingthe money on theseventh day from

what was earned inthe previous six is

not CSR. It’sphilanthropy and it

doesn’t supportbusiness strategy.”


FEEDBACK COMMENT

“In many waysbeing able to

communicate CSR is about scale. The

moment 20 workplacements became

600 it was real news and moved

the whole agendaforward with othercompanies wanting

to copy you.”




Work experience for school studentsEach year about half a million UK school children,aged between 14 and 16, do one or two weekswork experience. From September 2004 workrelated learning will be a statutory entitlement forevery child in England.

Work experience placements for schoolstudents are now part of our Marks & Startprogramme and we offer around 2,000 places peryear. We are working with the Department ofEducation and Skills to improve the programmeby focusing on children who have special needs orcome from disadvantaged communities. Studentsare helped to develop communication andproblem solving skills through specific projectslike creating a store newsletter or completingmarket research. At the end, each student isdebriefed on progress.

Student SupportOur new Student Support programme is aimed attalented students who are the first in their familyto aim for higher education. We aim to provideplacements for 35 students next year.

We plan do this by providing yearly studygrants. We will also help them gain new businessskills so they are more likely to be employablewhen they graduate, whether or not they chooseto work with us.

Students will be able to work in our storesduring holidays, weekends and in term time ifcollege commitments allow. We are planning a structured management-training programmepreparing them to become managers in retail or general business. Each will receive a record of skills acquired. A ‘buddy’ at the store nearest to their university will also act as their mentor.

MOVING TO PADDINGTONMarks & Spencer is moving its London head officefrom Michael House to a network of head offices,including a new building at Paddington Basin inmid-2004. We have set up a programme todevelop relationships with local businesses andour new neighbours. This includes:

• hosting six half-day tours involving around 100colleagues – called ‘Changing Places, ChangingFaces’ – with community groups and local projectsin the Paddington area. Following these toursemployees have developed action plans for futureinvolvement, partnership and contribution tothese groups;

Work placements for people with disabilitiesThere are 2.6 million people in UK with disabilitiesthat are unemployed and 1 million of these wouldlike to work.

On average, people with disabilities makemore than twice as many job applications aspeople without, yet get fewer job offers. We hopewe can improve this situation. In the first twomonths of opening this scheme, over a quarter of the 20 people taking part in the pilot got a jobwith us or another employer within 13 weeks oftheir placement. Next year we aim to provide100 placements for people with disabilities.

Work placements for parents returning to workMarks & Spencer plans to provide parents whohave been away from the workplace while raisingchildren the chance to update skills and re-buildconfidence. The programme aims to help themdecide if returning to work is right for them,prepare them to come back and may lead themto jobs or other training opportunities. A smallnumber of pilot placements are underway and weaim to increase this to 200 placements in 2004/05.

Work placements for young unemployed peopleThere are hundreds of thousands of unemployedyoung people in the UK and many feel held backby a lack of qualifications or confidence. Followingour ten-year involvement in The Prince’s Trust Teamprogramme we are now offering work placements.Since October 2003, three of the seven taking parthave found a job with us or another employerwithin 13 weeks of the placement. We aim to offer100 placements next year.

Veronica’s storyWhen Veronica was at school few peopleunderstood dyslexia. It wasn’t diagnoseduntil she was in her thirties by which timeshe had lost the confidence to go for well-paid jobs. But she joined an adult educationclass where she began to find ways to readmore easily and went on to join a make-upartist course. She found out about our workplacement scheme for people with disabilitiesthrough the charity, Project Employ. She gota four week placement in the beauty sectionof our Marble Arch store in London whereshe was supported by a buddy. AfterChristmas she got a permanent post inlingerie and now works four days a week.

CASE STUDY



• donating a percentage of sales of a specialrange of products;

• mastectomy workshops held in stores withsupport from Breast Cancer Care and St Ann’sHospice; and

• published leaflets for women on how to checkthemselves for the disease.

We intend to do more next year, including selling“Fashion Targets Breast Cancer” goods, for whichwe have commissioned a special range ofwomen’s wear and lingerie. We also aim to sell450,000 Fashion Targets pins.

DEBTCREDMarks & Spencer believes it has a role to play insupporting financial education among youngadults.

Last year, we worked in partnership withMBNA Europe Bank Limited, DebtCred, CheshireCounty Council and the University College ofChester, to support a small pilot scheme in theCheshire and district area. Led by the High Sheriffof Cheshire, its aim was to improve the moneymanagement skills of school and college studentsbefore they moved into work or further educationand to increase their understanding of financialproducts.

The scheme ensured that over 13,000 schoolleavers and students received copies of the“Guide for School Leavers in Cheshire & District”;a guide billed as “essential reading for everyonewanting to handle money wisely”. Also, at 10 pilotschools across the county, volunteer educatorsfrom Marks & Spencer Money and from MBNAtalked to pupils about a whole range of moneymanagement issues.

• working with our business partners and thelocal employment agency Paddington First torecruit local people;

• meeting with community leaders and joiningthe Paddington Waterside Partnership to forgelinks with our new neighbours and to help supporta successful local community and business sector;

• recycling initiatives raised £50,000 for localcharities;

• furniture donations through Green Works, a not-for-profit organisation dedicated tominimising waste by refurbishing and distributingequipment to community groups; and

• channelling regular donations of food andclothing to the charity organisations Shelter andFareShare.

EMPLOYEE VOLUNTEER AWARDSNearly 100 people attended our fourth annualVolunteer Awards at Kensington Roof Gardens torecognise the contribution employees make tothe wider community.

Overall Best Volunteer was Ian Martin, teamleader of Credit Services Account Support fromMarks & Spencer Money, Chester. Ian is pressofficer, fundraiser, secretary and publicity organiserfor the Welsh Association for Cricketers with aDisability, a charity giving people with disabilitiesthe chance to play friendly and competitive cricketand coaches children with special needs.

Next year we aim to raise greater internalawareness of these awards, make them easier toenter and introduce Marks & Start buddy awards.

BREAST CANCER AWARENESSIn the UK, one in nine women develops breast

cancer in their lifetime and 1,000 die from thedisease each month. With many female customersin the breast cancer ‘at risk’ age group,Marks & Spencer has been naturally drawn to this cause.

Selling products raised £700,000 during the year, bringing the total to over £1million since 2001.

In partnership with Breakthrough BreastCancer, we raise funds and support this cause in the following ways:• selling pink ribbons in our stores and offices,including challenging our stores to raise £1,000each as part of the Breakthrough £1000 Challenge;

• Head Office annual fundraising ball withsuppliers;

WHAT WE AIM TO DO IN 2004/05

• Monitor the planned implementationof European Union ‘take-back’/recycling legislation on batteries and electrical equipment.

• Develop an action plan to improvethe environmental performance offood packaging.

• Work with potential suppliers of the sustainable plastic carrier bag to improve the version trialled.

HOW WE DID

Clothing Recycled returned/rejectedchildrenswear items through the BirthDefects Foundation. Commissionedresearch into potential sustainable uses of used clothing.

Carrier bags Two schemes piloted inSummer 2003 to find a sustainable solutionto the carrier bag debate. Successfullytrialled a ‘durable shopper’ (a bag designedto be re-used), which has since beenextended across the chain with theexception of Simply Food stores. Mixedresults from a trial of a more sustainableplastic carrier bag made from a materialincluding cornstarch and vegetable oils.This bag is potentially renewable, as well asbiodegradable. It was welcomed by bothcustomers and colleagues but requiresimproving.

Total Packaging Usage Last year Marks & Spencer UK used 134, 221 tonnesof packaging materials. A breakdown ofthis volume by type of materials is shown in Chart 3. 58 million coat hangers were re-used or recycled.

Packaging project Consultation event heldin 2002 with product suppliers, packagingsuppliers, environmental groups and localgovernment to identify possibleimprovements we could make to ourpackaging. In 2003/04 a furtherconsultation was carried out to gather theviews of people in our Food Division.


SUMMARY OF OTHER ISSUES

Principle One

Products

The issues addressed in this section fit within Principle One of our CSR framework, together with our responses to thefollowing Issues: ‘Sustainable raw materials’ (pages 11-15),‘Responsible use of technology’ (pages 16-19), and ‘Animalwelfare’ (pages 20-21).

Principle One requires that we take care and act responsibly in delivering high quality products and services.

The amount of waste going to landfill is rising by 3% a year in the UK. It’s a majorchallenge to reduce this.

Since 1998, legislation has maderetailers and other parts of industryresponsible for the costs of recyclingpackaging. We pay a levy (worked out onthe basis of how much we use), to helpfund efforts to meet a UK recovery targetwhich includes both recycling and otherways of re-using waste. For 2004 this targethas increased to 63%. Over the next fewyears, this type of legislation will beextended to other products, starting withelectrical goods.

Whilst complying with this legislationwe’re also looking to get ahead on theissue of clothing re-use and recycling.

A specific packaging issue facingretailers is the debate about plastic carrierbags. Around 10 billion plastic bags areused in the UK every year. The alternativeto plastic is paper bags. However, thesecarry their own environmental issues,including higher energy consumption andincreased transportation in production.

WHAT WE SET OUT TO DO LAST YEAR

• Conduct pilots to find sustainableuses for recycled clothing.

• Launch project to improve theenvironmental performance ofpackaging.

• Test renewable and biodegradableplastics for packaging and products.

REDUCING WASTE FROM PACKAGING AND PRODUCTS

Chart 3: Packaging used by material type, 2003

A Paper 20.6%B Glass 34%C Aluminium 3.7%D Steel 2.6%E Plastic 38.3%F Wood 0.1%G Others (such as ceramics) 0.7%

A

B

CD

F

E

G

The use of energy and its contribution toclimate change is arguably the biggestenvironmental challenge we face.Resources such as energy and water, andthe issue of waste, are increasingly thetargets of legislation to ensure that theircosts more accurately reflect the impactsthey have. For example, in 2002 the UKintroduced an environmental tax on energyknown as the Climate Change Levy.

We operate a wide range ofprogrammes to improve the environmentalefficiency of our stores and other buildingsincluding the half hourly monitoring ofelectricity usage in most of our locations.

We also use re-usable packagingsystems that reduce waste for transportingour fresh foods and some types of clothing.


• Establish a target to purchase 10% ofelectricity from renewable sourcesfrom April 2004.

• Recycle obsolete plastic food deliverytrays into more efficient metric versions.

HOW WE DID

Energy All electricity contracts for ourstores and offices in England, Wales andScotland include the requirement that 10%be generated from renewable sources fromApril 2004. This will result in an 8% reductionin total electricity related emissionsthroughout the year (saving around 30,000 tonnes of CO2). Total electricityconsumption for our UK stores (excludingoutlet stores) in 2003/04 was down by 3.5%despite a continued expansion in footageand services such as bakeries and coffeeshops (see the table below).

Other activities last year includedrenewing our Energy Institutes EnergyEfficiency accreditation, and participating in the Government’s Carbon Trust initiativeto identify ways of improving efficienciesand reducing carbon emissions.

Water Measured water consumption for ourUK stores and offices (excluding outletstores) was around 903,000m3. Data accuracyneeds to improve before we can set targets.

Waste Waste collection services for all UKstores now administered through a central


PRINCIPLE ONE PRODUCTS


• Use Carbon Trust findings to makefurther improvements in managingenergy usage.

• Revise and re-launch energy savingincentive scheme for stores.

• Work with suppliers and estatesmanagers to improve the accuracy of data collation on water usage.

• Use centralised management of wastecollection to develop improved levelsof information and efficiency.

• Introduce separate collections ofunsold uncooked meat, poultry andfish products to meet new legislation.

management system to ensure legalcompliance, cost efficiency andenvironmental improvements. Estimatedstore waste outputs are around 30,000tonnes. Conducted trials on the mosteffective way to meet new European Unionlegislation that requires the separatecollection and disposal of unsold uncookedmeat, poultry and fish products. Replacedmajority of food delivery trays usingmaterial recycled from obsolete olderversions. Some of the older trays were soldto suppliers for their own use.

Electricity and gas consumption and resulting CO2 emissions in 2003/04 2002/03Marks & Spencer UK stores and office (excluding outlet stores) Actual Actual

UK stores electricity usage in MWhs 683 709UK offices electricity usage in MWhs 37 35UK stores and offices gas usage in MWhs 231 209Total UK Marks & Spencer electricity and gas usage in MWhs 951 953Total resulting C02 emissions in tonnes* 350,000 360,000*Based on DEFRA guidance

REDUCING ENERGY, WATER USE AND WASTE




• Include best practice specifications as stores are built or refurbished.

• Complete the fourth year of HCFCstore refrigeration programme;resulting in the replacement of HCFC refrigeration gases from afurther 10% of stores.

• Further extend remote monitoring of heating, ventilation and airconditioning systems currentlyoperating in 146 stores.

Managing energy, water and waste, andensuring compliance with legislation areimportant issues for all companies.Environmental issues sit within our overallstore compliance management system.


• Participate in development ofBuilding Research EstablishmentEnvironmental Methodology (BRE-EAM), a Government sponsored bestpractice initiative on the design andoperation of stores.

• Continue third year of programme to replace older HCFC storerefrigeration systems with moreefficient units using more ozone‘friendly’ gases.

• Food distribution centres workingtowards international managementsystem standards.

HOW WE DID

Non-compliance Received an EnvironmentAgency caution relating to a diesel spillagefrom a standby generator in one of ourstores. Another incident concerning anaccidental spillage of unsold milk also beinginvestigated. Policies have been reviewedand amended as a result. No prosecutionsor fines received to date.

BRE-EAM Conducted a pilot study usingthe BRE-EAM system in Marble Arch store, London to test its scoring. ‘Store of the Future’ project used to identify best practice on a wide range ofenvironmental issues.

Refrigeration Completed the third year of a programme to replace HCFC storerefrigeration. 50% of all stores have hadHCFC systems replaced. Refrigeration in allstores is now monitored remotely to ensurefood safety, energy efficiency andmaintenance.

Food distribution centres Environmentalperformance has been included in theoverall quality management systems offood distribution centres.

MANAGING ENERGY, WATER USE AND WASTE


• Phase-in new labelling policies on food products supported bytraining for suppliers andindependent checking.

• Monitor customer feedback and changes to legislation.

The labels on our products need to be clear and relevant so that people can makeinformed decisions about what they buyand how they use it. We sell a wide rangeof products and our customers may want to know about ingredients, production andusage. Our aim is to provide ‘open andhonest’ labelling.


• Continue to ensure that labelling and information meets customerneeds.

HOW WE DID

Revised policies on food labelling. Providedtraining for those involved in developingand labelling food products. Introduced anindependent system of checking our foodlabels against Marks & Spencer policy andlegal requirements.

Continued to label all products with the country in which they were produced.Further information about the origins ofingredients such as meat and fish wereincluded on some food products.

EASY TO UNDERSTAND LABELS AND INFORMATION




• Review and develop ‘Count on Us’range to ensure it continues to meetchanging customer needs.

• Further develop our nutritionalguidelines on foods for children.

• Extend the 5-a-day (fruit andvegetables) message to other foodsthat meet our nutritional criteria.

• Investigate different ways of reducing the fat and sugar content of our foods.

• Continue to reduce salt, especially inthe types of food which contribute the most salt to people’s diet.

• Track progress using our productdatabase.

The food we choose to eat plays a crucialrole in determining our health, vitality andwellbeing.

Heart disease and cancer are the majorcauses of death in the UK, accounting for60% of all premature deaths. One third ofdeaths from heart disease and 25% ofdeaths from cancer are attributable todietary factors.

For these reasons the Government isdeveloping the food and health action plan;its primary objective is to reduce salt, fatand added sugar intakes and increase theconsumption of fibre and fruit andvegetables.

We sell a wide range of foods. Someare indulgent treats, others healthieroptions. We believe our role is to assist ourcustomers in achieving a healthy diet byproviding them with the information theyneed to make informed choices. Within ourproduct ranges we aim to offer options forcustomers with specific needs, for example,children and those on a diet.


• Continue to develop and promote a wide range of healthy foods like ‘Count On Us’, ‘5-a-day’ andhealthier options.

HOW WE DID

Launched an innovative ‘eat well, feelgreat’ pack in 40 stores used by our mosthealth conscious consumers. Developed asa non-profit making product the £4 packprovides a wide range of informationcovering healthy eating, managing yourweight, leading an active lifestyle andcombating stress. The pack is supported by an on-line personal health assessment.

Added around 50 products to ‘Counton Us’ diet range. Extended and developedthe Diet & Health sections of our FoodMagazine website to offers more informationon topics affecting diet and healthincluding menu planning (seewww.marksandspencer.com/foodmagazine/insidestory/index for more information).

Carried out research with ourcustomers to better understand theirneeds. Started to label packaged fruit,vegetables and fruit juices with our 5-a-daylogo in January.

CHOICE OF NUTRITIOUS AND HEALTHY FOODS


• Continue to monitor systems and respond to any stakeholderconcerns.

The public in general, and civil libertiesgroups in particular, are increasinglyworried about companies and otherorganisations holding personal informationon people. They are concerned it might be‘sold-on’ to other companies or used for anunauthorised purpose. There are alsoconcerns that people should have morechance to amend incorrect information thatmight be used to make decisions likegaining credit.

We’ve tried to make it as easy aspossible for colleagues to access personalinformation. We want to act in an ‘openand honest’ manner with informationrelating to our customers.


• Continue to review systems.

HOW WE DID

Action on this issue (relating to RadioFrequency Identification Devices), isdiscussed in the chapter, ‘Responsible Use of Technology’, see page 19. Alsodistributed an on-line Data Protection Actawareness training exercise to all headoffice colleagues in early 2004.

RESPECT OF PRIVACY




• Develop an action plan to improveCSR performance and conduct further consultation and research with customers and government.

The growth in consumer borrowing and therise of debt among people who can’t affordit is a major social and economic worry. TheBank of England has recently said it will useinterest rates to restrain the growth inpersonal debt. The Government andFinancial Services Association are lookingto ‘standardise’ and regulate the provisionof financial services.

We launched our Marks & SpencerChargecard in 1985 and have beendeveloping our range of financial servicesproducts since then. Last year weintroduced the &more credit and loyaltycard. To help customers understand thecosts of credit, we have a policy of nohidden fees. We do not disclose customerdata or information to third parties for thepurposes of onward selling.


• Consult with stakeholders about CSR in financial services.

• Build our portfolio of products thatremain socially responsible in today’scredit driven society.

HOW WE DID

Conducted a series of CSR research andconsultation initiatives with customers,regulators, industry bodies and consumergroups to identify priorities for the future.

Adjusted the way we offeredChargecard customers the chance tochange to the ‘&more’ card, following arequest from the Office of Fair Trading(OFT). The OFT confirmed that we, in linewith principles of responsible lending, hadtaken care to make a proper creditassessment of individual cardholders beinginvited to change to the ‘&more’ creditcard and on deciding credit limits.

Adopted the use of the ‘Honesty’(Schummer) box before it becomesmandatory. This box is a clear andstandardised way of communicatinginterest rates, fees and charges.

RESPONSIBLE FINANCIAL SERVICES


Principle Two

People

The issues addressed in this section fit within Principle Two of our CSR framework, along with our response to the Issue,‘Ethical trading’ (pages 22-26). Principle Two requires that wecreate great places work.


• Consult with colleagues during theimplementation of business changeprogrammes.

• Develop and implement a three-yearplan to establish and improve theoperation of BIGs.

• Conduct one full ‘How Are WeDoing?’ survey and one smallerfollow-up concentrating on areas that enable better participation on important issues.

Communicating and consulting with our63,000 UK employees is an important partof maintaining relationships and efficiency.We operate employee representationforums called Business Involvement Groups(BIGs) in every store and office area. Wealso conduct regular ‘How Are We Doing’employee surveys to pinpoint areas forimprovement.


• Launch national BIG forum chaired byChief Executive.

• Continue to monitor and improveinternal communications.

• Continue to develop action plans inresponse to ‘How are We Doing?’surveys.

HOW WE DID

First national BIG meeting held in April2003 with 13 employee representatives andhas continued to meet every three months.With the addition of three representativesfrom the Republic of Ireland, the nationalBIG also doubles as the European Council.

Continued to monitor the effectivenessof our internal communications using anInternal Communications Forum comprisingcolleagues with communicationsresponsibilities, and BIGs.

80% participation rate in the mostrecent ‘How Are We Doing?’ employeesurvey conducted in August 2003. Overallscores showed a slight decrease. Strongratings for ‘customer focus, clarity anddirection’ were offset by ‘work to do’ in theareas of reward, involvement andrecognition.

Started to develop a strategy on howto improve actions that result fromemployee surveys.

COMMUNICATION AND CONSULTING


• Review the progress of a new three-year strategy introduced to enhance individual, team andcorporate performance.

• Monitor feedback from colleaguesabout our pay and benefits.

• Consult with colleagues through BIGs.

Pay and benefits are importantconsiderations for everyone. Providing theright level of total reward is particularlyimportant to retailers who compete witheach other as well as different industrieswhere remuneration for the best peoplecan be seen as more attractive.

We aim to provide a total rewardpackage that is competitive, flexible,rewards superior results and supportspersonal lifestyle choices. All colleagueshave reward packages that include elementsof fixed pay, a wide range of benefits andvariable performance related pay.


• Continue to find ways to rewardsuperior individual as well as teamperformance.

• Continue to consult with employeeson reward policies and systems.

HOW WE DID

Offered all colleagues the chance to berewarded for performance related to our‘ways of working’ principles, a set ofbehaviours we want to promote to helppeople achieve personal goals within thebusiness (see page 8).

Revised changes to customary holidays,unsocial and overtime payments for non-managerial staff following consultation withBIGs. Introduced pay scales, including ahigher basic rate and a new mix of unsocialand overtime payments for new employeesto help attract the right employees andcompete with other retailers. Introducednew benefits, including additional holidays.

REWARDED FOR SUPERIOR RESULTS


PRINCIPLE TWO PEOPLE


• Continue to align all training activityto business priorities.

• Communicate internally theinvestment in training by includingtraining spend and average numberof training days per employee in theinformation provided to seniormanagers.

In today’s marketplace everyone needs aflexible and diverse range of skills. This istrue whether someone joins us for a shortperiod of time or to pursue a long-termcareer. To help colleagues fulfil their careerambitions, the training we offer is designedto develop individual talent and capability.


• Launch the Retail Academy toimprove the quality and consistencyof our training programmes.

• Develop partnerships with externalorganisations to ensure high quality,consistent training programmes.

HOW WE DID

Launched the Retail Academy, including the opening of six Retail Academy Centresgeographically positioned for all Stores to access. A new team of training expertsdelivering the right training solutionsconsistently across the UK and Ireland.

Continuing Professional DevelopmentScheme for food technologists became thefirst of its type to be accredited by theInstitute of Food Science and Technology.

BUILD ON STRENGTHS AND DEVELOP SKILLS


• Diversity action plan agreed andimplemented.

• Complete and distribute new diversityand lifestyle options booklet to allcolleagues and monitor feedback.

Attracting and retaining a culturally andsocially diverse workforce enables us torecruit the best people and meet the needsof the communities in which we trade. Wehave written commitments to equalopportunities covering age, disability, race,marital status, political opinions, colour,gender, hours of work, national origin andreligious beliefs.

We provide a mix of flexible workingarrangements including leave for paternity,adoption and IVF treatment, as well as childbreaks and career breaks. These helpencourage workforce diversity.


• Continue to review policies andprocesses.

• Continue to ensure that policies meet the needs of individuals and the Company.

HOW WE DID

Detailed store audits and trainingdeveloped to ensure that we meet therequirements of Section III of the DisabilityDiscrimination Act which passes into law inOctober 2004.

Our system for monitoring diversitydata was updated. Data is collected everythree months and reported to seniormanagers across the Company. Overallethnic diversity is in line with the UKpopulation.

As a member of a wide range ofdiversity organisations including EmployersForum for Disability, Gender Trust,Employers Forum Age, Parents at Workand Diversity UK we compared our policieswith other companies to reflect the latestdevelopments in our Diversity Action Plan.We also started revising our employeebooklet on diversity and lifestyle options.

DIVERSITY AND OPPORTUNITY: RESPECTING THE BALANCE BETWEEN LIFE AND WORK


PRINCIPLE TWO PEOPLE


• Develop a set of ‘Marks & SpencerPrinciples’ for communication acrossthe Company by March 2005.

All employees are expected to behaveethically when working on behalf of theCompany. Business ethics help shape ourpolicies and provide guidance when acolleague is confronted with a new issue onwhich we have yet to develop a policy.

We have policies in place covering awide range of ethical issues including thegiving and receiving of gifts and dealing inCompany shares. However, followingconsultation with colleagues and externalspecialists, we have identified the need to devise a set of overarching ‘Marks & Spencer Principles’ to guidespecific policies.


• Review Business Ethics policy.

HOW WE DID

Internal workshop in October 2003, run bythe Institute of Business Ethics, to gatherviews on the format and timescale of a setof Business Principles. Introduced a newGroup Fraud Policy in February.

BUSINESS ETHICS


• Continue ‘WorkWell’ training for linemanagers.

• Introduce programmes to reducework related ill health absencesincluding rotation of sales advisor jobroles and rehabilitation programmesto bring colleagues recovering fromphysical or mental health illnessesback to work in a gradual manner.

• Introduce the measurements of Fire, Health and Safety performanceto judge the success of our storemanagers.

• Ensure all Fire, Health and SafetyOfficers attend CIEH Level 2 course,with all regular deputies to attendduring 2005/06.

• Revise policies on Fire Safety inreadiness for new legislation.

• Launch accident reporting systemsand asbestos and control ofhazardous substances databases on our intranet.

• Develop our relationship with theHealth and Safety Executive and Lead Authority Partners further.

Companies have a legal and moralresponsibility to protect the health andsafety of their employees and the peoplewho enter their places of business. Weoperate a system to ensure workplacehealth and safety is safeguarded and weprovide a range of occupational healthservices to colleagues.


• Develop “WorkWell”, a targetedstress management interventionprogramme.

• Continue to improve Health andSafety performance linked to annualaudits.

HOW WE DID

Around 1,500 line managers (half of the total) completed WorkWell trainingmodules to help people identify and dealwith workplace stress. Launched theOccupational Health Target ReportingAdministration (OHTRA), a system thatcollates work-related ill health issues andabsences reported to our OccupationalHealth Advisers. Currently around 60% of these absences are due to physicalstresses and strains (muscular and skeletal)and around 30% are for reasons of mental health.

Introduced a new system of annualindependent Health, Safety and Fire audits in stores – supported by store self-assessments, monthly monitoring of accidents, visits by officials, training and test evacuations.

Revised the job descriptions of our Fire,Health and Safety Officers and linked therole and its reward package to completionof the Chartered Institute Of EnvironmentalHealth’s (CIEH) Level 2 “Supervising Health and Safety” five day course andexamination. Began working with our LeadAuthority, West Midlands Fire Service, tointroduce a new system to identify whatimprovements are required to meetrevisions to Fire Safety Legislation in 2004.

HEALTH, SAFETY AND WELLBEING


Principle Three

Places

The issues addressed in this section fit within Principle Three of our CSR framework, along with our response to the Issue,‘Community programmes’ (pages 27-30). Principle Threerequires that we help make our communities good places in which to live and work.


• Complete fourth year of programmeto convert delivery fleets to Euro IIIstandard or better.

• Assess the performance of the newaerodynamic delivery vehicles.

• Investigate opportunities for use ofrail freight for clothing, home andbeauty products.

Our stores are often located in town andcity centres and their operations affectresidents and other businesses. Inoperating our stores we have aresponsibility to act as a ‘good neighbour’.Aiming to minimise the potential noise andpollution caused by deliveries is animportant part of this.

The size of our delivery fleets isdesigned to provide seasonal flexibility andwhenever we ‘save’ capacity, we look tomake use of this space by using it for othertypes of work (such as moving loads onbehalf of suppliers). For this reason, we areunable to set absolute distance or fuel usereduction targets for our fleets as somesavings register on supplier transportactivities.

WHAT WE SET OUT TO DO

• Continue with third of a five-yearprogramme to upgrade distributionfleets to less polluting Euro IIIemission standards.

• Develop further distribution transportinnovations.

• Continue to participate in localauthority best practice initiatives.

• Extend use of rail freight.

HOW WE DID

UK and Eire distribution fleets for food and non-food deliveries to our stores covered78 million kilometres and used 24 millionlitres of fuel.

Completed the third year of aprogramme to upgrade delivery vehicles to less polluting Euro III engines. Currently,63% of our fleets are now Euro III or better.

Helped develop new aerodynamicdelivery vehicles, (designed using Formula 1technology and offering potential savings in fuel use and emissions). Continued toparticipate in local authority ‘QualityFreight Partnerships’.

Succeeded in diverting a significantamount of food road freight per year ontorail. Most of this was formerly distancescovered by suppliers’ own heavy goodsvehicle delivery fleets.

ACTING AS A GOOD NEIGHBOUR


PRINCIPLE THREE PLACES


• Work with DisabledGo to identifyways of improving access to ourstores for people with disabilities.

• Continue to drive our local food store programme.

We want to improve access to our productsand services. Barriers to this can be price,the physical location of stores, andinadequate facilities to enable people withdisabilities to shop in our storescomfortably.

WHAT WE SET OUT TO DO

• Continue to support the developmentof DisabledGo Internet guides (seewww.disabledgo.info for moreinformation).

• Increase the number of smaller localfood stores.

HOW WE DID

Took steps to ensure our stores meet therequirements of Section III of the DisabilityDiscrimination Act, which passes into law inOctober 2004.

Continued to increase the number ofsmaller local food stores, opening 52 in thelast year. We closed one Simply Food storein Barnet, London, and offered allcolleagues alternative employment withinthe Company.

Responded to press allegations inSeptember that we operate a North/Southpricing policy in Simply Food stores. Wecharge a small premium on selected lines inplaces where operational costs aresignificantly higher, including all railwaystation and London stores.

ACCESSIBILITY

The Corporate Social Responsibility Report 2004 (the Report) has beenprepared by the management of Marks and Spencer plc, who are responsiblefor the collection and presentation of information within it. In accordance withMarks & Spencer management’s instructions we have reviewed the Report, asoutlined below, in order to provide assurance on the accuracy of claims maderegarding Marks & Spencer’s Corporate Social Responsibility (CSR)performance and the overall balance of the Report.


Assurance StatementTo the management of Marks & Spencer

Our responsibility in performing thiswork is to the management of Marks & Spencer only and inaccordance with the terms of referenceagreed with them. We do not thereforeaccept or assume any responsibility forany other purpose or to any otherperson or organisation. Any reliance any such third party may place on theReport is entirely at its own risk.

WHAT DID WE DO TO FORMOUR CONCLUSIONS? Our review consisted of the activitiesoutlined below: • Interviews with management andfunctional staff in London and Chesterto understand their approach to CSR. • Testing claims made with respect to CSR performance in the Report by reviewing relevant evidence andinformation provided by Marks & Spencer.• Reviewing selected CSR data captureprocesses at the company-level andtesting that data has been correctlytransferred from them into the Report.Our review included the following 2003data sets: energy & water consumptiondata, ethical trading data, packagingdata, transport data (generalmerchandise and food), diversity data,pesticide residue data and communityinvolvement data.

• Testing the balance of the Report incomparison with:

– Issues raised in the CSR Forum andCSR Committee minutes, – Outputs of the ‘customerexpectations survey’,– Topics raised in a selection ofexternal media sources, and– Targets set out in last year’sCorporate Social ResponsibilityReview 2003.

WHAT ARE THE LIMITATIONSOF OUR WORK? We did not test the claims made in the‘Introduction from Luc Vandevelde’,which can be found on page 3 of theReport. We did not interview Marks & Spenceremployees at stores to assess CSRperformance. We did not test the accuracy andcompleteness of data sets (which areoutlined above) by walking through thedata from the point of origin to thecompany-level. Therefore, we have notmade conclusions on the data accuracyand completeness.


Assurance Statement continued

To the management of Marks & Spencer

• Progress against the majority of thetargets set out in last year’s CorporateSocial Responsibility Review 2003 havebeen reported upon. The targets thatreferred to increasing the websiteinformation are met by the Report itselfbeing available on the website. Progressagainst the following targets have notbeen covered in the Report:

– Development of sustainabilitystandard for wool.– Testing the renewable andbiodegradable plastics for products.

Did we find any areas forimprovement? Our observations and areas forimprovement have been raised in a report to Marks & Spencer’smanagement.

OUR INDEPENDENCE ANDCOMPETENCEErnst & Young currently provides someinternal financial audit and tax servicesto Marks & Spencer. This has notaffected our impartiality with respect tothis work. Ernst & Young has notpreviously advised Marks & Spencer onany aspects relating to theorganisation’s approach to CSR or anybusiness processes relating to themanagement of the issues discussed inthe Report.

Our assurance team has been drawnfrom our global environment andsustainability network, which undertakessimilar engagements to this with anumber of significant UK andinternational businesses.

Ernst & Young LLPLondon, April 2004

WHAT ARE OUR CONCLUSIONS? Based on our review (described above)our conclusions on the accuracy andbalance of the Report are outlined below.

Is there evidence behind the CSRperformance claims made in theReport? Evidence and information obtainedthrough our work supports the CSRperformance claims made in the Report.Where evidence could not be provided,or where the statements made wereinconsistent with the evidence available,the text was amended by Marks & Spencer.

Has the data been accuratelytransferred from the company-leveldata collation processes to theReport? The data contained within the Reporthas been accurately transferred fromcompany-level collation processes intothe Report. The quality of supportingdocumentation and the quality ofinternal assurance on data accuracyvaried across the data sets reviewed.This is an area for future improvement.

Is the Report balanced? The Report covers:• The key issues raised in the minutesof the Marks & Spencer’s CSRCommittee and CSR Forum. • The five CSR areas of interesthighlighted by the independent‘customer expectations survey’.• Most of the issues raised by ourmedia search. Topics that could havebeen covered or covered in greaterdetail are: employee disputes,operational efficiency, pricing policy andexecutive pay. We have been informedthat the topic of executive pay will becovered in the 2004 Annual Report andAccounts.

Documents

Corporate Social Responsibility Report 2003/04...4 Marks & Spencer CSR Report 2003/04 Overview of performance But we know that CSR is a journey and there is always more to do. Later,