Le Minh Hoang Minh - s3748986 - Organization analysis PDF

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Assignment 2 - Individual Essay - CompanyAnalysisMARKS AND SPENCER(M&S)Student Name: Le Minh Hoang MinhStudent Number: sWord Count: 2471Table of ContentsI. IntroductionII. Company overviewIII. Analysis● Marks & Spencer CSR work**- Ethical - philanthropic responsibility Economic Responsibilit...

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Assignment 2 - Individual Essay - Company Analysis

MARKS AND SPENCER (M&S)

Student Name: Le Minh Hoang Minh Student Number: s3748986 Word Count: 2471

Table of Contents

I.

Introduction

II. Company overview III. Analysis ●

Marks & Spencer CSR work - Ethical - philanthropic responsibility - Economic Responsibility - Legal Responsibility

●

Stakeholders partnership - Primary stakeholders - Secondary stakeholders

IV. Recommendations V.

Conclusion

VI. References

I) Introduction Companies in this era of growth are increasingly aware that it is impossible to depend only on

maximizing profits, but the former sub-criterion Corporate Social Responsibility (CSR) also plays an important role in the long-term development of the company through market orientation and treatment of stakeholders. CSR can bring reputation and outstanding brand value to companies that use it well, and customers increasingly pay attention to the health and mental values that evaluate businesses through the feedback of their customers, employees, communities, and stakeholders so they need to take it seriously (Grayson D & Hodges A 2017) Marks and Spencer (M&S) company-a leading retailer is a perfect example of a business that has made a big impact on its CSR plan. In this report, Marks and Spencer’s CSR activities and further evaluation by practical examples of whether they adhere to the CSR philosophies outlined in the theory and provide recommendations for the company's CSR shortcomings.

II) Company overview Primarily, we must have a better understanding of a company's current situation and background before evaluating its CSR activities. The Mark and Spencer brand was founded in 1884 by the founders Michael Marks and Thomas Spencer in the UK and is currently leading the way in one of the largest retail companies in the world (Sabanoglu T 2019). Besides the main strong products such as food, household goods, and clothing, M&S is also known for its strong value in convenient transactions, excellent customer care, good relationship with distributor suppliers and employee protection policy (Grayson D 2011). However, due to explosive innovations in market speed and competitive pressure from rivals ( Asiamah F & Ghulam S 2019), it was not until 2003 that M&S really paid attention to CSR activities (M&S 2003 CSR Report). The company's plan (Alpha plan) consists of five main categories: environmentally friendly materials, climate, waste, social welfare, and association for long-term development. However, it was not until 2003, due to the explosive innovations in the market speed and the competition of competitors, the M&S company really paid attention to CSR activities. The company's plan is set up with 5 main categories: environmentally friendly materials, climate, waste, social welfare, and association for long term development. Furthermore, in order to enhance sustainable development and innovation features, M&S has actively discussed and exchanged knowledge with governmental and non-governmental organizations around the world. By 2020 the company has achieved significant achievements with its Alpha plan in its sustainable development goals.

Despite being entangled in a number of gender discrimination cases, M&S's 2025 goal is to create a deeply bonding relationship with customers, investors, and stakeholders for a sustainable future of the company ( Jones P & Comfort D 2018).

III) Analysis 1. Marks & Spencer CSR work

The concept of the Carroll’s Pyramid is a prime example of businesses contrasting their sustainability aspects. Carroll's synthesis encompasses the legal, philanthropic, economic, and ethical aspects of business towards society when combined to create business initiatives and plans for a partnership with inter-organization concerns ( Baden D 2016 ). Throughout the case of M&S, the organization focuses primarily on all four fields: ethics/ philanthropic, economic, and legal thus maintaining ethical enforcement without being compelled.

2. Evaluation

Ethical/philanthropic responsibility In terms of ethics, what the whole society recognizes is the transcendence of the barrier of normal economic profit while defining the philanthropic as the goals or activities of the company voluntarily doing to contribute to the community. Then in 2003, with the help of Schwarts, Carroll developed this hypothesis into three criteria: conventional, abiotic, and consequentialist. Based on the benefits that M&S brings to customers and the community in their CSR plans, which are often recognized at the end of the project, we can consider M&S as a consequentialist type of ethical ( Hoffman W 2001). This was highlighted in 2003 in the M&S CSR report on the implementation of this concept, with 3 main mandatory principles in the plan: creating a reasonable working environment, building a perfect symbiotic relationship with the community, and most importantly creating excellent service and product quality. With this principle, the company has been recognized as the company of the year by '' Business Community '' in 2006 after launching a social experience program to create opportunities for people of different ages and expertise. These include special circumstances such as homeless

people, people with disabilities getting a job, or the opportunity to return to work. M&S had in the report the importance of CSR when it was able to attract customers, attract the attention of potential investors, create profits for shareholders, and recruit quality employees. In short, if the company applies CSR effectively it not only generates ethical benefits but also promotes the economy greatly ( Windsor D 2006). Following the success, in 2013 after setting up the Alpha plan, the company mentioned in the CSR report the upgrade activities. The company focuses on product development based on sustainable catches such as 100% fish and wood with 80% recovery. However, they still find it difficult to find distributors because they are still hesitating with this project. Next, customers tend to spend money on `` green '' or recyclable products ( N Mohd Suki 2017) and thus the company develops an eco-friendly brand image. That positively affects their fashion items when using environmentally friendly materials such as polyester, natural silk, organic cotton, and recycled nylon ( Brown C 2018). The M&S also mentioned the effectiveness of waste prevention and reversing climate change in its Alpha Plan CSR report: they have reduced construction waste by 50%, saving 32% of energy consumption and reduced CO2 from the factory by more than 20%. The company has also developed the production of goods containing high levels of neutral carbon and in 2012 was the only company to control the idea. The company also attaches great importance to charitable activities with the environment and people, M&S has mobilized from the community over 12 years more than 19 million euros for patients with end-stage breast cancer (Smithers R 2012). Furthermore, they also donated 2.6 million Euro to Charitable organization Oxfam in 2009. These activities brought customer sympathy, strengthened relations with the community, and created a very good brand mark, generating an exponential jump for economic development and profitability.

Economic Responsibility

Positive activities that both indirectly and directly affect the economy of the company are included in the economic field of sustainable CSR ( Málovics G 2008). Moreover, indirect activities empowering employees' efforts and enhancing brand value while direct activities focus directly on increasing interest rates and sales revenue or minimizing litigation risk. Although the activities of the two economic and ethical sectors often contradict each other when objectively

stated that when investing in CSR-focused market expansion, the company still benefits from the brand. They also focus on building infrastructure, ensuring a working environment...etc, which is called ethical. On the other hand, investors and shareholders are mainly interested in profits from which the business must implement one of two solutions: using cheaper alternative materials or increasing product prices ( Blanchard O & Rhee C 1993). However, M&S decided to use a sustainable strategy and raise the brand to the community, and at the same time satisfy both the ethical and economic fields in an absolute legal manner. As a result, M&S earned 524.2 million euros in profit and 10.5 billion euros in pre-tax revenue in 2019 (M&S Annual Report 2019).

Legal responsibility

M&S has its own legal policy section on the company's website, most of which are based on UK law and the Consumer Contracts Regulations in 2013, which were updated and implemented in 2018. Policies designed to protect the interests of customers, avoid misleading and ensure the transparency of business with customers (M&S, 2018). M&S respects the privacy of its customers and handles personal data equally and legally. In addition, the company affirmed that all employees have the right to work legally and enjoy benefits in accordance with the legal provisions. The employees all claim that they volunteer to work for the company, not by coercion or illegal forced labour (Corporate Marksandspencer, 2019). Legal responsibility mainly belongs to state and the enforcement authorities, and after a range of tests and evaluations, the conclusion is that M&S performs all its activities on a legal basis.

IV) Stakeholders partnership Before assessing the impact of related party relationships with a company, it is important to understand the definition and theory of stakeholder impact on company performance. Organizations or individuals affected or directly affected by the economic and commercial activities of the company, are known as stakeholders (Jones TM 1995). To achieve sustainable success, company executives need to align and secure the rights of stakeholders. Especially, M&S is a big company that has affirmed its brand name and shares bought by many investors, and what they mainly need is profit. Stakeholders can be divided into two main groups: primary

and secondary, targeted at non-governmental organizations, employees, suppliers, and customers ( Vasi IB & King BG 2012).

1) Primary stakeholders When compared with the theory of employees' rights and obligations, they are the stakeholders with the most obvious influence in the company when it comes to directly contribute to the company's performance, becoming the massive asset of any business company. M&S mentioned that one of their three principles is to ensure an excellent working environment and facilities for employees. Then, based on ILO's rights and principles of working for workers and the Universal of United Nations human rights statement as international standards, the company has created a healthy and safe working environment. M&S's formar two-year goal is to raise the brand for gender equality protection, two of their potential strategic programs are 'Emerging Leader' and BSR's Herproject (M&S Alpha Report 2018). Reasonable salary for employees and listening to their opinions is considered an important criterion of M&S, from which there are regular surveys and consultation organized by the Board of Directors. Next, the consumer is the element that contributes to the company 's profits and therefore affects future plans. M&S concentrated on improving after-sales customer support while gathering feedback from consumers through surveys conducted by the Customer Service department. As mentioned in the Alpha plan, M&S has allowed customers to '' participate '' in their CSR campaign and stimulated the customer experience. Under the 18 dietary requirements of the UK Government Agreement with the Business conference board on Public Health Responsibility, M&S places the highest emphasis on customer satisfaction and wellbeing while obtaining 100 % organic food without artificial coloring and preservatives. In addition to increasing the efficiency of CSR, M&S also uses sustainable materials for its products to protect the environment for its customers. Finally, suppliers are another reason why businesses must take into account the needs of stakeholders. Selected by the Global Sourcing Association, M&S has been recognized as one of the top retailers in the world, then suppliers must not only comply with product quality but must also ensure that the manufacturing process protects human rights and does not affect the environment. As the M&S’s core principle in the 2003 CSR report is to produce the highest quality goods, but ethical and non-toxic to the community( M&S CSR Plan 2003). In order to meet the standard,

suppliers must commit to using energy in an economical manner, minimizing the amount of waste that affects the environment. In addition, M&S also organizes meetings and seminars to receive and update information on local laws to bring human rights into the most appropriate policy apparatus.

2) Secondary stakeholders

The definition of secondary stakeholders are the individuals or companies that do not participate in company activities but are still directly affected ( Clarkson M 1995). The government can be considered as a primary stakeholder because policies can change a company's situation directly. Since then, the policies of the British government and the EU Council for business to set goals to explain and find solutions to environmental and social problems have been established that by 2032, the world needs to grow 32% more water and double the amount of food and alternative energy ( Sample I 2009). In the nutritional composition of M&S food products The amount of salt and sugar, as well as fat, must meet the target of the British Food and Beverage Federation and the British Retail Association. They must also prove accountability to the UK Government Department of Public Health. M&S also expresses responsibility for the interests of secondary stakeholders - in the case of M&S, the non-governmental organizations Oxfam, WWF, and Green-peace, the company has donated to Oxfam by selling recycled clothing and has reduced garment waste annually, and the total amount raised is 2.3 million euros. WWF is also an important partner of M&S and, through the HACCP code of professional conduct, it ensures the sustainability of fish raw material sources. M&S's project providing facilities for homeless and disabled children is also supported by their good relationship with UNICEF as £ 630,000 has been generated through furniture and clothes hanger recycling.

V) Recommendations M&S mentioned in its 2025 Alpha plan, with more than 100 commitments in CSR projects to become the most sustainable retailer in the world, and they are doing really well ( M&S 2025 Plan). However, there are still weaknesses in their plans, especially in terms of conservation, treatment of animals and talent interaction. The main ingredients of M&S clothing are leather,

fur and cashmere, animal ingredients, the company can organize animal welfare programs ,for example: giving a customer on an animal farm tour, feeding cows or horses or shearing wool can be a great idea to connect with customers through CSR. Tesco is a direct competitor of M&S and they are also famous for their creative and assertive paths that influence the thinking and vision of society. Moreover, M&S can learn from Tesco community support programs such as seminars to help protect workers and secure jobs for people are mentioned in the support plan of the program ( Wintour P & Malik S 2012). Since then, M&S can also organize its own business seminars to retain employees, recruit more talents and gain social affection.

VI) Conclusion Through what has been analyzed, we can conclude that the M&S company has been very successful in applying the CSR plan to the company development program. They have ensured a balance between economic, ethical and development but still maintained absolute compliance with the law. In its principles, the company has established sustainable connections with consumers, employees, nongovernmental organizations, governments and suppliers. Nevertheless, the organization still needs to solve its animal care shortcomings to build socioeconomic spillovers without unemployment. The company's plan to 2025 will be successful if they still maintain the values of the culture in the company and develop to the maximum ability of the employees.

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