M&S (B) M&S has always had an ethical dimension. It started offering staff welfare services that provided pensions, subsidised staff canteens, health and dental services, hairdressing, rest rooms and camping holidays back in the 1930s. In 1999 it published its own code of practice on Global Sourcing as a minimum standard for all suppliers in an effort to improve conditions for workers overseas. Since 2003 M&S has produced a Corporate Social Responsibility Report. In that year it was ranked top retailer and one of the top UK companies in Business and the Communities First Corporate Social Responsibility Index. Stuart Rose has taken this even further and started building it into the M&S brand identity. In 2006 the Look Behind the Label marketing campaign was introduced with the aim of highlighting the range of ethical and environmentally friendly policies M&S had. These included: Fairtrade products all coffee and tea sold by M&S is Fairtrade and it also offers clothing lines made from Fairtrade Cotton. Sustainable fishing M&S sell only fish from sustainable sources. Healthy foods M&S has removed 90% of its foods containing hydrogenated fats and oils and has cut salt across its food range. Support for charities M&S supports a number of charities. For example at Christmas 2006 it introduced a range of products to support the housing charity Shelter predominantly in the food to go range including a range of seasonal Christmas sandwiches. Environment friendly emphasising the use of environmentally friendly textile dyes and use of environmentally friendly materials for store fit-outs such as flooring made from natural rubber as well as looking to source electricity from environmentally friendly sources. However, in 2007 M&S went one very significant step further. It launched its Plan A, an ambitious 100-point plan to help combat climate change, reduce waste, safeguard natural resources, trade ethically and promote healthier lifestyles. The business-wide action plan will cost 200 million. By 2012, M&S aims to: Become carbon neutral minimising energy use, maximising renewables and using offsets as a last resort. Send no waste to land fill sites reducing packaging, recycling and reusing materials. Extend sustainable sourcing using recycled materials, extending free range and organic food products, only selling fish from sustainable supplies. Set new standards in ethical trading leading in labour standards and extending Fairtrade products. Help customers and employees live healthier lifestyles through producing healthier foods and extending health and lifestyle support for employees.

The ambitious plan, which was widely welcomed by environmentalists, will transform the way M&S operates. M&S will set up a Supplier Exchange to share best practice and innovation. The economics of local and ethical sourcing are less straightforward than they might seem. A surprisingly high proportion of a products vehicle miles come from the shoppers driving to their local store. However, the move back to UK sourcing, at least for food, and the emphasis on identifiable, free range, often organic and free trade produce undoubtedly hits a cord with many middle class shoppers M&S target market. And the M&S brand claims influence over 2,000 factories, 10,000 farms and 250,000 workers, so if it works its influence will be considerable albeit on a global scale tiny. Becoming more sustainable is not just about philanthropy, it also make good competitive sense at least for some businesses. Nevertheless the turnaround of M&S is far from complete. Questions 1. How embedded within M&S is CSR? 2. What is the role of CSR in the turn around of M&S? 3. Visit their web site to assess the progress of Plan A.