Abstract
The entire text talks about Marks & Spencer’s Plan A and why it was started. It includes a thorough discussion of the five pillars of Plan A and their progress as of today. Defenses by the CEO for this plan are also included in the text. Also, the summary of the award won by the company is present.
Marks & Spencer: Plan A
Marks & Spencer, one of the United Kingdom’s largest retailers launched an environmentally proactive plan a year ago. The company invested £200 to be a socially responsible corporation. In a press conference, Stuart Rose (cited in Plan A Marks & Spencer’s ‘eco plan: 2) the CEO of the company said, “Every business and individual needs to do their bit to tackle the enormous challenges of climate change and waste…While M&S will continue to sell great-quality, stylish, and innovative products, our customers, employees, and shareholders now expect us to take bold steps and do business differently and responsibly. We believe a responsible business can be a profitable business. We are calling this ‘Plan A’ because there is no ‘Plan B.’”
Plan A has 100 specific points that are set up to be achieved by 2010. According to Mark Stuart’s statement in the press conference, he believes that people want to see someone take responsibility and help the environment and bring change to its current stagnant status in the business world. The company realizes that they need to work with both ends of the management chain: the customers and the suppliers. (About Plan A 2007) By 2010 the company will, “Become carbon neutral, send no waste to landfill, extend sustainable sourcing, set new standards in ethical training, and help customers and employees lead healthier lives” (Rose, cited in Harvard Business Review: 1).
The first of the 5 pillars of the plan focuses on climate change. They are implementing various strategies to mitigate a large carbon footprint. (Climate change stories 2007) From the construction process all the way to the operational aspect, Plan A resonates in the Marks & Spencer ‘eco-factory in Sri Lanka. The factory will use solar energy, use less electricity than the standard norms, and greenery will surround the entire site. Also, measures for cutting the water usage in half will be taken by utilizing rainwater and necessary fixtures. Anaerobic digestion, waste recycling, a comfortable environment and a medical centre will also reflect on the site’s overall ‘green’ concept making it an example for others to follow. (Our first ‘eco’ factory 2007).
Keeping with the climate change pillar, they are continuously working to shrink their carbon footprint by using fuel-efficient vehicles. To create a yin and yang like the balance between the carbon emissions they are unable to cut down they have planted “more than 30,000 trees at the College Valley Estate near Wooler, Northumberland.”(Delivering our promises 2007) They have worked closely with a forest carbon consultancy to plant the right kind of trees which will offset the carbon emissions to the maximum. (Delivering our promises 2007) The College Valley Estate responded to Marks and Spencer’s actions positively and Chairman of the Directors, Charles Baker-Cresswell(cited in Delivering our promises 2007) said, “We are delighted Marks & Spencer made the decision to join us in establishing this new woodland. They are helping us to achieve our goals to manage the Estate in a way that will enhance and maintain its value as a cultural, environmental, economic and scenic place of excellence. We look forward to people coming to enjoy this wood – and the rest of our forestry – for many years to come, together with the birds and animals which the trees will attract.”
“According to the Royal Commission on Environmental Pollution, retailers use 275-kilowatt hours (kWh) per square meter. That’s 3 times as much as commercial offices (85kWh), 3.5 times as much as warehouses (81kWh) and 6 times as much as factories (47kWh).” (cited in Greening the in-store environment 2007) To improve upon these epitomizing polluted statistics Marks and Spencer has refurbished various flagship stores to have proper ventilation, reduce leakage of heat or cooling done by the air conditioner, and replaced the old bulbs with more energy-efficient ones. (Greening the in-store environment 2007) After making the retail stores carbon-neutral, Marks and Spencers next aim is to form the appropriate relationships with its suppliers to reduce wastage and encourage recycling. They have implanted these ‘eco’ changes from the lighting fixtures to cushion stuffing’s and are using energy more efficiently. With each sub-plan, they are keeping with the true spirit of a corporate social responsibility program by collecting feedback and keeping the checks and balances system alive. (Our green factory 2007) Marks and Spencer’s partnered with other companies for a campaign to give the public a means to the end of a better climate. They found that lowering temperatures to 30 degrees C would “save enough electricity to light every street lamp in the UK for 10 months!” (Think climate wash at 30c 2007).
The second pillar of this plan focuses on the issue of waste and its negative outcomes if it isn’t stopped. They plan to send less waste to landfills by minimizing packaging their products unnecessarily, providing a way for the customers to recycle products, use a labelling system and charge customers for using plastic bags. To offset the 5p charge for the plastic bags the company provided free carrier bags for the consumers. (Waste stories 2007).
Their third goal is to “make sure [their] key raw materials come from the most sustainable sources available to [them]”. (Sustainable raw material stories 2007) They want to supersede their current high standards by switching to organic materials such as linen. Their animal welfare policy is award-winning and they pass the cruelty-free test. (Sustainable raw material stories 2007) They are also working to reduce water usage and boost sales for products made out of organic material including food and clothing items. They even go to the extent of using recycled wood for photocopying and printer paper. (Plan A Mark’s & Spencer’s “eco-plan” 2007: 2).
The fourth pillar focuses on their commitment to fair trade. By doing this they enable underdeveloped areas or small communities to earn what is their right and use it towards the overall improvement of the community and its welfare. “Basically, Fairtrade helps small-scale farmers and farmworkers in developing countries to invest in their communities, by guaranteeing them a fair and stable price and a Fairtrade Premium for investment in community development projects.” (Fairtrade in action 2007) Often times when bog corporations conduct trade overseas their worker are underpaid and the fairness of trade is missing because of the other country’s lack of law implementation. For this reason, many countries, although growing economically due to thriving business opportunities, suffer the consequences of unfairness. A big task of corporate social responsibility is to help the members of the community because the more responsibly a firm acts the more profitable it can be.
The health factor is the fifth pillar of Plan A and it hopes to improve the nation’s health by refining its products. They will use better and more transparent labelling so that the customer is always aware of what they will consume. To battle it even further they will produce more healthy products by using less unhealthy ingredients such as fats and sugars. They have created their own brand name products which filter all the artificial aspects and give the customer access to natural and healthy products for both kids and adults. (Health stories 2007).
The progress in the climate change department has been good during the first year. They have reduced “reduced energy-related emissions from… stores and offices by around 55,000 tonnes of CO2 since January 2007 – mainly by switching an additional 23% of our electricity to renewable sources, making 25% in total. In addition, over 80% of the electricity supply for our dedicated General Merchandise distribution centres now comes from renewable sources.” (Climate change 2008) They have reduced electricity use and started using renewable energy. They have adopted new methods and continuously revised their old methods to stay up to date and efficient in the matters of measuring a carbon footprint. They also have experimental ideas ongoing to find out what best can help climate change positively. They plan to implement the changes made to their flagship retail stores onto others because of the initial success. They’ve also experimented with different fuels in their vehicles and come up with better solutions. They’ve also started the trend of using hybrid or diesel cars for their employees use and that too only if it is necessary. They have conducted thorough research about their carbon ‘food print’ and are taking appropriate measures to reduce it. They have started to bring the supply chain home to reduce carbon footprint and have a full source of supply within reach in the future. They are also encouraging their partners to follow the same code of ethics they are currently indulging in because the responsible way is the best way to go. They have successfully conducted customer involvement campaigns and hope to pursue more of them.
In the waste department they “reduced the use of carrier bags by 11% across [the] business between April and December 2007 – a total of 37 million bags fewer bags given out. [They] achieved this by simply asking … customers: ‘Do You Need a Carrier?’ and by encouraging them to buy … Bags for Life. The sales volume of these Bags for Life has increased eightfold compared to 2006, with over 6.5 million sold.” (Waste 2008).
They are rolling out their previously tested and successful idea of charging customers money for using plastic bags in other retail locations. They have donated all the 5 pence per bag collections to a charitable local environmentally inclined organization. They have encouraged the recycling of hangers by simply communicating with the customers inside the stores and asking them questions that require positive responses and positive actions. In their progress statement, they(waste 2008) also say, “We’ve increased the proportion of recycled construction waste from our store refurbishment programme to 75% this year and will push for 85% in 2008. We’ve also increased the use of recycled materials in the consumables (e.g. cups) used in our operations from 12% to 41%. In addition, we will improve the recycled content of our stationery from 16% to 32% by April 2008. This includes switching our copier paper to one with 80% recycled content.” Although they have accomplished a lot they believe they are still far away from putting a stop to sending waste to landfills. They are continuously implanting recycling programs to beat that trend. They have reduced their packaging so it can physically appear to the customer that changes are being made. At the same time, they are awakening consciousness about recycling and packaging waste inside the customer. To aid this stimulus they have provided means for the customers to act upon the good deed of recycling. By engaging both the suppliers and the customers in a recycling rendezvous they have successfully created space for this sort of activity in the market. (Waste 2008).
All the sustainable raw material implementations have been rolled out successfully and have resulted in the increased sales almost by 50% in organic foods. After analyzing and evaluating their progress that has created a handbook that can come in handy for the following four years of this plan. Their current obstacles and challenges lie around the issue of minimizing their water footprint. (Sustainable raw materials 2008).
Progress is being made in conducting fair trade with some objections. The Fair partner report( Fair partner 2008) in the labour standards section stated, “During the autumn some social NGOs challenged our commitments. They acknowledged our existing risk management systems are good, but asked us to be more aspirational in our commitments to improve labour standards. We’ve recognized the need to push ourselves harder and to offer suppliers more support in their efforts to make improvements. We will do this by working with our suppliers in a way and to an extent that we believe is unique in the retail sector.” They have not been hesitant in collected feedback whether positive or negative and used it as a tool of learning and moving even further with their goals. Often when a foreign company invades local communities outside of its own country some criticism is faced. In this case, Marks and Spencer handle it well and offers to be supportive of the community after listening to their concerns. Their sales rose significantly in this area and were another key success in their step by step plan to give the customer what they want. They have let all their partners in on their plan and have encouraged them to follow in their footsteps by becoming proactive locally. (Fair partner 2008).
They have focused on being transparent about what’s inside the package so the customer is aware of what he/she is consuming. They have created their own brand name products and removed artificial and fattening ingredients. “Our original Plan A commitment was to use only natural colours in children’s sweets and confectionery by 2008. By September 2007 we had completed the removal of artificial colours from all our children’s food and extended our work to all foods (including soft drinks). By December 2007, 99% of our food was free from artificial colours and flavourings. We are on target to achieve 100% by the spring of 2008.” (Health 2008) Their continuous want to change things and implement Plan A in each functioning aspect of their corporation has helped them becomes successful in each department they plan to make ‘greener’ and more ‘eco friendly. Their products now contain fewer fats and unhealthy ingredients compared to their statistics from last year. They have continuously listened to customers and provided them with what they demanded in the area of labelling. Not only have they raised the standards of health but also satisfied their consumers inside out. They have given their employees appropriate training to guide customers towards healthy products and inform them about health-related issues. “For example, over the past year, we’ve worked with our store teams to encourage healthier lifestyles and have introduced Eat Well options into our staff restaurants. This is accompanied by nutrition ‘did you know’ on the recipes and information on how to eat five portions of fruit and vegetables each day. Our February 2008 employee magazine also sees the launch of a regular health feature for employees, which will focus on a different aspect of health and nutrition each issue.” (Health 2008) The key challenges for this year are to continue implementing their healthy standards and keep raising the bar. (Health 2008).
“On January 9, 2008, the London stock market reacted strongly to a 12-week Marks & Spencer trading statement: Same-store sales, excluding new space, were down by 2.2% compared with the previous year. Our share price fell 18%, taking £1.6 billion off the value of our business.” (Rose 2008) This temporary downfall in the market could have been the red light to all of the Marks and Spencer’s ‘green’ rendezvous’ but they stayed faithful to their new bride dressed in ‘green’. By doing this they proved to the world that they were serious and they were going to take this all way up to 2010 and would not stop until they completed their task. They rebottled by providing facts and justifications that their responsibility was leading to profitability, both for the company and the customer. “While we’ve estimated Plan A could cost around £200 million over five years, we haven’t actually done a hard cost-benefit analysis. What we know is that individual decisions within Plan A need to make financial sense. For example, various initiatives–recycling clothes hangers, reducing packaging, and encouraging reusable carrier bags instead of plastic–are saving us millions of pounds, reducing landfill waste, and decreasing electricity consumption.” (Rose 2008).
Their closing comment stated that stopping now would be a huge mistake because according to their research Britain is a nation with a deep interest in ‘green’. They mentioned that where they were unable to make economic stances they made valid symbolic ones and concluded that conducting business responsibility is the best way to do it right. (Rose 2008) CEO Stuart Rose (cited in Marks & Spencer CEO defends plan 2008) also stated in his defence of Plan A that, “There are compelling commercial – as well as moral – reasons to [stick with Plan A]. Take the early results it’s generating. Our ‘Wash at 30’ campaign, which encourages consumers to wash their clothes at a lower temperature than what used to be considered the norm, has saved an estimated 25,000 tons of carbon dioxide. We have reduced C02 emissions by an additional 55,000 tons by switching 23% of electricity to renewable resources. Toward our goal of zero waste to landfill, 75% of the construction waste from our store refurbishment program is now recycled.”
In 2008, Marks and Spencer received the WEC Gold Medal for International Corporate Achievement in Sustainable Development. The award was given to Marks & Spencer for “its comprehensive and close links with its extensive global supply chain of finished products, food products and raw materials…Marks & Spencer addresses virtually every substantive sustainable development issue and has received broad recognition for its willingness to take action and drive change across the broad global supply chain.” (WEC 2008).
Marks and Spencer focus on all aspects that make a company successful. They began with providing for their employees and building trust with their partners. They implemented a corporate social responsibility strategy and did not forget to examine and analyze any of the details and adjusted and moulded it carefully to fit perfectly into each aspect of its organization. They have published reports of their activities and kept the stakeholders aware of what their money is earning them and how it’s doing it. They have continuously innovated and upped the ante from their previous standards. The best part about Marks & Spencer’s is that not only have they come up with innovative ideas but they have implemented them successfully too. They realize that no huge task can be done alone and have sought out help from its supply chain. Their ethical trading system is exemplary and their partnership approach helps them succeed each time. (WEC 2008) “Marks & Spencer’s business model also achieves in a local level. Teaming with the Shell Foundation, investments have been made in India and Africa to meet their Fair Trade Standards, create jobs and protect the environment.” (WEC 2008).
Marks & Spencer’s is back and it’s greener than ever. It is faithfully complying with his vows to lady green and her well being and gaining the trust of consumers and suppliers everywhere. In its first year, Plan A has already made a significant change to Mother Earth and raised the health standard. During the implementation process, Marks & Spencer has paved a way for all corporations around the world to follow in its footsteps because it has created market opportunities for eco-friendly products and services everywhere. Not only has it set a positive example but it has made it easier for everyone else to follow including customers. Often times when a person knows better and does not have the means to act upon it and make things right he or she goes back to the old ways. Marks & Spencer has collected all the insight because it knows that educating and the customer or the supplier is not the only way to go about accomplishing a task successfully. They seem to know that providing a link that can lead to action is just as necessary. Telling the customers to recycle may educate them about why they should do it but to have the full-fledged results they must provide a hands-on, near the counter, near their home, easy to access way to recycle. CEO Stuart Rose will truly leave behind a legacy and inspire the rest of the world to follow in his footsteps. Imagining where the United Kingdom will be in 2010 only paints a positive picture in one’s mind. The strength to stick by their plan even during rough economic times will pay off for Marks & Spencer and the Earth – they will both be getting a lot of ‘green’.
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