Corporate Social Responsibility Review 2003
Corporate Social
Responsibility
Review 2003
Vision Mission Values
The standard against which Making aspirational quality Quality, value, service,
all others are measured accessible to all innovation and trust
Contents
1 Introduction from Luc Vandevelde
Our philosophy and principles
2 Our heritage
Social responsibility in Marks & Spencer
3 Governance
Corporate Social Responsibility Committee
4 Listening
How we listen to our stakeholders
6 Our principles in action
Introduction
7 Principle one – Take care and act
responsibly in delivering high quality
products and services
Introduction
Review of progress and priorities for next year
Product safety
Sustainable raw materials
Animal welfare
Reducing waste from packaging and products
Reducing energy, water use and waste
Responsible financial services
18 Principle two – Create great places to work
Introduction
Review of progress and priorities for next year
Ethical trading
Communication and consulting
Rewarded for superior results
Build on strengths and develop skills
Health, safety and wellbeing
25 Principle three – Help make our
communities good places in which to live
and work
Introduction
Review of progress and priorities for next year
Community involvement
Summary
www.marksandspencer.com 1
Introduction
Luc Vandevelde Chairman
Welcome to our first publication our CSR heritage and tried to make principle to a third aspect of our
on Corporate Social Responsibility – it fresh, relevant and effective. And CSR activities – our work in the
or CSR for short. It explains how just as we listened to our customers community. Under the philosophy
we as a company are seeking to to get our products right, we’ve of helping others to help
meet our social, environmental taken our CSR priorities from the themselves, our aim is not simply to
and ethical responsibilities and to things that you, our stakeholders, give money but to try and tackle the
satisfy the expectations of all those have told us are important. root of the problem. A case in point
involved in our business. is our decision to offer two-week
This process has focused our
work placements in our stores to
Our approach to CSR is not just attention on three main themes
600 homeless people over the next
to tick off boxes to say we’ve that have always been at the heart
two years, so helping to break the
complied. Instead, we’ve done of our business.
cycle of no home, no job, no home.
some hard thinking on how we
The first is the products we sell. We
can genuinely contribute to the This publication addresses each
know that many of our customers
societies in which we operate. of those three themes in more
are concerned that their purchases
detail. As Chairman of the
We start with the great advantage are produced in an ethically and
Marks & Spencer CSR Committee,
that Marks & Spencer has always environmentally responsible
I hope it provides the kind of
been a socially responsible manner. We want to meet that need
information you find most useful.
business. This ethos showed itself – and are well placed to do so
I’m also concerned that we measure
in the Company’s determination to because we have total control of our
the impact of our CSR activities.
offer quality products by dealing products. That’s why, for example,
While this review is mainly about
directly with manufacturers, we now guarantee that all the eggs
philosophy and principles, future
to provide excellent working in our food products are free-range.
publications will contain more by
conditions for its employees and
The second theme you’ve told us way of hard data to demonstrate
to make local communities better
is important is the way we relate our progress.
places to live and work.
to our employees. A key feature
CSR is a matter of continuous
Despite the tough conditions we’ve of our recovery was creating an
evolution. As in all aspects of our
faced in recent years, these values environment that allows people
business, we’re keen to listen and
have persisted and are deeply to be at their best. This adult-to-
ready to improve. We welcome your
ingrained in the way we run our adult relationship between the
comments and will do our best to
business. Everything we do is Company and its employees makes
keep meeting your expectations.
influenced by the notion of good Marks & Spencer a better place
corporate behaviour. to work while also producing
superior results.
We initiated our commercial
recovery by going back to the Having seen that this approach
fundamentals of the business. In the can make a real difference to our Luc Vandevelde
same way, we’ve looked again at business, we’re applying the same Chairman
2 Marks and Spencer Group p.l.c.
Our heritage
‘We realise the main prop of our 1933 1996
organisation is the goodwill of our Chairman Simon Marks commissioned Fleet of liquefied and compressed
Flora Solomon to set up a staff welfare natural gas food delivery vehicles
public. This goodwill can only be
programme providing pensions, launched.
maintained and extended by giving
subsidised canteens, health advice,
our customers the satisfaction of Marks & Spencer becomes a founding
hairdressing, rest rooms and camping
member of the Business in the
knowing that to shop in our stores is holidays.
Environment Index, and is the highest
to purchase goods of outstanding 1934 ranked retailer.
value and merit, and to gain the Marks & Spencer established a
1999
benefits of our long experience in scientific laboratory to improve
Marks & Spencer published its Global
retailing. We are never satisfied with products.
Sourcing Principles.
our achievements. We believe we 1941
2000
can still, by helping to bring about Staff raised funds for the war effort.
Marks & Spencer joined the Ethical
more scientific production and by 1959 Trading Initiative.
further economies in our costs of Marks & Spencer became the
‘Count On Us’ healthy option foods
distribution, improve the standards, first British retailer to introduce
launched and pilot ranges of organic
values, and prices of our goods, No Smoking rules.
cotton clothing introduced.
and so increase the number of our 1970s
Children’s Promise Millennium
customers and our turnover.’ Donations of unsold foods to local
campaign raised £21m for
charities started, and reusable plastic
disadvantaged children.
This could easily be a comment trays for food deliveries to stores are
from this year’s Annual Report, yet introduced. 2001
it was actually made by a former Company-wide employee
1975
representation forums known
Chairman of Marks & Spencer over Scheme for recycling unwanted coat
as Business Involvement
70 years ago. It represents what hangers is introduced at all stores.
Groups launched.
we might call the enlightened self 1980s
Marks & Spencer announced
interest that has always been a Marks & Spencer became a founding
targets to work towards fruit,
keystone of the Marks & Spencer member of Business in the Community
salad and vegetables free from
philosophy. Since our beginnings following urban riots, based on
pesticide residues.
philosophy of ‘healthy high streets
in 1884 we have always believed
need healthy back streets’. Included in first and subsequent
that employing business practices revisions of FTSE4Good ethical
1985
which benefit society as a whole company index.
Marks & Spencer Chargecard
will contribute to the Company’s
launched. 2002
long-term performance. First major UK retailer to sell and use
1991
1884 free-range eggs in all food products.
First ranges of organic foods
Michael Marks, a Russian-born Polish introduced. Launch of fuel efficient ‘Urban Delivery
refugee opened his first stall in Vehicle of the Year’.
Kirkgate market. 1992
Marks & Spencer published its first ‘Rainbow of Hope’ Queen’s Golden
1894 brochure detailing environmental Jubilee campaign in support of
Tom Spencer became Michael Marks’ activities. national I-CAN charity.
retail partner.
1994 Ranked as retail sector leader in
1920s Reusable packaging systems for worldwide Dow Jones Sustainability
Company started buying directly delivering clothing to stores Index.
from manufacturers to ensure quality introduced.
and value. Opening of first new format Simply
1995 Food stores.
1930s First Environmental Code of Practice
First food department opened. 2003
covering the chemicals used in
Café Bars are introduced to Ranked in top 24 companies in
clothing production introduced.
provide nutritious mass catering for Business in the Community’s first
customers and subsidised canteens Corporate Responsibility Index.
for employees. First Corporate Social Responsibility
publication.
www.marksandspencer.com 3
Governance
One of four Board-level Corporate Marks & Spencer personnel who
Governance committees provides gather information relating to our
leadership on Corporate Social Corporate Social Responsibility
Responsibility, meeting at least performance, work with external
three times a year. specialists, where required, on
issues such as energy consumption
Supporting this committee is a
and pesticide residue testing.
network of key managers, known
collectively as the Corporate Social Risk assessments are carried out
Responsibility Forum. three times a year in all areas of
the Company, with an additional
All directors receive induction
assessment of non-financial
training on Corporate Social
performance risks every six months.
Responsibility and are kept
informed of progress by monthly
newsletters and regular
operational reviews.
Corporate Social Responsibility Committee
Yasmin Yusuf
Luc Vandevelde Jack Keenan Creative Director for
Chairman Non-Executive Director Clothing
Flic Howard-Allen
Alison Reed Paul Myners Director of
Finance Director Non-Executive Director Communications
Graham Oakley
Justin King Group Secretary and Head Ed Williams
Executive Director, Food of Corporate Governance Head of CSR
Key Facts:
● 335 stores in UK & Ireland
●
Franchise operations in
26 countries
● 5 million Chargecard holders
●
30,000 product lines
●
1,500 suppliers in over
70 countries
●
67,000 employees
● 330,000 shareholders
4 Marks and Spencer Group p.l.c.
Listening
In many ways, Corporate Social affect. As well as shareholders, Understanding exactly what our
Responsibility describes the customers, employees and suppliers stakeholders expect is central to
standard of behaviour expected this also includes a wide range of developing informed and confident
of companies by their stakeholders. research and campaign groups policies. Listening and learning
who represent issues such as will continue to be our highest
Stakeholders are all the people and
the environment, human rights Corporate Social Responsibility
interests an organisation might
and animal welfare. priority, now and in the future.
This table summarises our stakeholders:
Environment
Communities Employees
groups
Customers MARKS & SPENCER Suppliers
Government/ Animal welfare
Shareholders
regulators groups
www.marksandspencer.com 5
Our stakeholders How we listen
Employees • Business Involvement Groups – representing employees locally,
regionally and nationally throughout the Company.
• Confidential helpline.
• ‘How are We Doing?’, a regular employee survey.
• Internal communications including an employee magazine, regular
business updates and team briefings.
• Listening Groups that senior management hold during regular
store visits.
• Three month CSR consultation programme during 2002.
Customers • Sales information.
• Weekly and monthly monitoring of views.
• Surveying customers at new and refurbished stores.
• Customer panels.
• 350,000 communications to Head Office.
• Two million communications to Financial Services business.
• Annual independent Corporate Social Responsibility survey.
Shareholders • Annual General Meeting.
• Regular meetings and presentations with institutional investors.
• Regular surveys of institutional investor satisfaction.
• Participation in Corporate Social Responsibility surveys and
benchmarking such as FTSE4Good.
Suppliers including franchisees • Regular visits and meetings.
• Regular surveys of supplier and franchisee satisfaction.
• Attending major UK agricultural shows and running farmers’
listening groups.
• Direct relationships with important raw material suppliers.
• Taking part in the Ethical Trading Initiative.
Communities • Working on a wide range of urban initiatives like quality freight and
crime prevention.
• Regular meetings with key charity partners.
• Partnerships initiatives to address issues of health, community safety,
education and employability.
• ‘One Community’ pilot, working through our employees, customers
and neighbours.
Environment and animal welfare groups • Regular meetings to discuss key issues.
• Active participation in benchmarking and surveys.
• Partnership initiatives across a wide range of issues such as wild fish,
fish farming, free-range eggs, food pesticides, safer chemicals and
food miles.
Government/regulators • Regular meetings with bodies such as the Food Standards Agency,
Department for Environment, Foods and Rural Affairs, Health & Safety
Executive, environmental regulators, Financial Services Authority and
key government departments.
• Local authority partnerships on environmental health & safety, fire and
trading standards.
6 Marks and Spencer Group p.l.c.
Our principles in action
This review examines our progress as a more detailed explanation Community’s Impact on Society
on Corporate Social Responsibility of certain issues for our UK and website and the London
within our three fundamental Ireland operations. We have set out Benchmarking Group. Our website
principles: the Corporate Social Responsibility currently contains performance
issues we cover by referring to the reports on many issues, based on
• Take care and act responsibly in
United Nations Global Reporting Business in the Community’s
delivering high quality products
Initiative, an international template ‘Impact’ model.
and services.
for best practice.
For more information please visit:
• Create great places to work.
Over the next few years we aim to http://www2.marksandspencer.com/
• Help make our communities good report our progress across all these thecompany/ourcommitmenttosociety/
places in which to live and work. issues. On some aspects of CSR we index.shtml
already report performance, such
Each section contains an overview
as our involvement in the Ethical
of our progress and plans as well
Trading Initiative, Business in the
Business in the Community’s
‘Impact’ based reporting
model includes:
Marketplace
Community
Workplace
Environment
Supply chain
www.marksandspencer.com 7
Principle one – Take care and act responsibly in delivering
high quality products and services
What we mean by this Marks & Spencer purchases have We exercise direct control over the
• Recognising that when we been produced in an ethically and middle two sections of the life of
make a profit we also accept environmentally responsible manner. our products, during distribution
a responsibility. and selling. However, as a 100%
The ways our products and services
own brand retailer we also
• Striving to achieve the best affect people, the environment and
influence most other aspects of the
balance of quality, value for animal welfare, present many of
production and use of our products.
money, social wellbeing, our toughest Corporate Social
environmental protection Responsibility challenges, and we’re We believe our role is to help
and animal welfare. constantly having to ask ourselves everyone get the best out of
what responsible behaviour means, Marks & Spencer products as
• Listening and responding to the
as the range of concerns continues responsibly as possible. We can
needs of our stakeholders openly
to grow. The greatest challenge for only achieve this by working with
and honestly.
us is the sheer diversity of raw a wide range of stakeholders to
Anticipating customer needs and materials, production processes, agree what is, or isn’t, acceptable
acting in their interests is how we chemicals and countries of and how we can help to make
aim to meet their expectations. operation involved in producing improvements.
We want to be able to reassure Marks & Spencer goods.
our customers that all their
Product lifecycle
Raw materials Production Distribution Selling Use Disposal
8 Marks and Spencer Group p.l.c. / Principle one – Take care and act responsibly in delivering high quality products and services
Principle one – Review of progress and priorities for next year
Issue Progress Priorities for next year
Product safety • Comprehensive systems for ensuring quality • Website Chemicals Strategy to be updated
and safety developed over many years. annually in line with latest scientific research
and stakeholder views.
• Independent safety specialists for clothing,
footwear, home and beauty products • Conduct pilots to audit on-site management
regularly consulted. of dyeing, printing and finishing chemicals.
• Use of standards to avoid skin contact with • Publish progress updates on our website on
materials that can cause allergic reactions moving towards fruit, salad and vegetables
when clothing is worn. free from pesticide residues.
• Policy of using non-GM food ingredients • Monitor developments on Genetically
and derivatives in 100% of Marks & Spencer Modified materials.
foods.*
• Consult with suppliers, trade associations
• A non-GM policy for key animal feeds.* and environmental groups on ways of
improving safety.
• Chemicals Strategy made publicly available
on our website, identifying chemicals of
concern and actions.
• Environmental code of practice covering
chemicals used in dyeing, finishing and
printing of textiles implemented.
• Implementation of programme to phase-out
the use of 79 potentially harmful pesticides
in the production of fruit, salad and
vegetables.
• Setting of long-term goal to sell fruit, salads
and vegetables free from pesticide residues.
Sustainable raw • Introduced all available and suitable Marine • Develop sustainability standards for cotton,
materials Stewardship Council approved types of fish wool, agricultural produce, renewable
and participating in WWF’s Invest in Fish plastics and horticultural growing media.
initiative.
• Continue to improve existing sustainability
• We do not sell 19 of the 20 species on the standards on wood, farmed fish and sea fish.
Marine Conservation Society’s blacklist.*
• Launch range of o/organic beauty products
• Implemented schemes to improve made from at least 70% organic ingredients.
environmental standards of salmon farms
• Continue to promote and develop ranges of
and restocking of natural species.
organic foods.
• Major sources of wood used in the
• Participate in further research projects to
production of fabrics and furniture identified
identify future best practices.
along with supporting forestry certification.
• Improve the quality of information available
• Organic foods relaunched in 2002 and
on our website.
intention to further extend ranges whilst
maintaining level of sourcing from the UK
at 60%.
• Lifecycle assessment studies carried out on
clothing, packaging and some aspects of
food sourcing to identify future
improvements.
• Funding postgraduate research project into
sustainable food sourcing.
• Website publication of performance on
sustainable raw materials.
*Updated since publication
www.marksandspencer.com 9
Issue Progress Priorities for next year
Animal welfare • Exclusive sale and use of 100% free-range • Continue to identify ways we can help to
eggs in all food products introduced from improve standards of animal welfare.
September 2002.
• Consult with stakeholders about the effects
• System for ensuring use of free-range eggs of new European chemicals safety
reviewed by independent specialists. legislation.
• Application of comprehensive animal • Continue to develop Key Production
welfare standards for all Marks & Spencer Indicator/Key Welfare Indicator
foods covering housing, feed, care and measurements.
transport.
• Improve the quality of information available
• Operation of Marks & Spencer Select Farm on our website.
schemes for all fresh meat, poultry, eggs
and farmed fish.
• Piloting of Key Production Indicator/Key
Welfare Indicator monitoring of chicken.
• Policy of not conducting or commissioning
animal testing since 1988.
• Start of programme to work with other
companies, Government and animal welfare
and environmental groups on the best way
to implement proposed legislation on
ensuring the safety of chemicals.
• Policy and performance information
available on our website.
Easy to understand • All clothing labelled with country of origin. • Continue to ensure that labelling and
labels and information meets customer needs.
• Revised food labelling policy launched in
information autumn 2002 including origins of all main
meat, poultry and fish ingredients.
Reducing waste from • Annual packaging usage calculated and • Conduct pilots to find sustainable uses for
packaging and recycling levy payments made since 1998. recycled clothing.
products
• Operation of recycling scheme for unwanted • Test renewable and biodegradable plastics
coat hangers in all stores. for packaging and products.
• Search facility on website to help find local • Launch project to improve the
recycling banks. environmental performance of packaging.
• Introduced use of recycled cardboard in
many types of food packaging.
• Conducted extensive packaging stakeholder
consultation event with the Environment
Council.
• Sponsorship of Community Recycling
Network annual conference and RECOUP
who recycle plastic packaging.
• Comprehensive performance information
available on our website.
10 Marks and Spencer Group p.l.c. / Principle one – Take care and act responsibly in delivering high quality products and services
Issue Progress Priorities for next year
Reducing energy, • Operation of energy and water usage • Recycle obsolete plastic food delivery trays
water use and waste management programmes at all locations into new more efficient metric versions.
including half hourly monitoring of electricity
• Continue with second year of programme
consumption and monthly performance
to replace older HCFC store refrigeration
audits.
systems with new more efficient units.
• Participated in the first UK emissions trading
• Participate in development of Building
scheme.
Research Establishment Environmental
• System for energy and water management Assessment Methodology for stores.
reviewed by independent specialists.
• Target to purchase 10% of electricity from
• Implementation of programme to replace all renewable sources from April 2004.
remaining HCFC refrigeration systems and
• Food distribution centres working towards
develop alternatives to HFCs.
international environmental management
• Operation of reusable packaging systems system standards.
for delivering products to stores, and
internal recycling systems for cardboard,
polythene, paper, uniforms and computer
equipment.
• Scheme to donate maximum feasible
amounts of unsold foods to local charities
operating in all stores since the early 1970s.
• Participation in Government sponsored
ACORN project encouraging suppliers to
improve their environmental performance.
• Comprehensive performance information
available on our website.
Responsible financial • Use of rigorous system of credit scoring to • Consult with stakeholders about Corporate
services ensure a responsible approach to money Social Responsibility in financial services.
lending.
• Build our portfolio of products that remain
• All information designed to be easy to socially responsible in today’s credit driven
understand. society.
• Policy of no hidden charges implemented.
• Programme of sensitive debt management
operated.
• Co-sponsoring of Money Advice Trust call
centre.
Choice of nutritious • Using the expertise of nutritional specialists • Continue to develop and promote a wide
and healthy foods when developing recipes and labelling. range of healthy foods like ‘Count On Us’,
‘5-a-day’ and ‘healthy options’.
• Providing a wide range of healthy option
foods.
Respect of privacy • Comprehensive data protection policy, • Continue to review systems.
systems and training in place.
• System to allow employee access to
personal data introduced.
www.marksandspencer.com 11
Product safety of legislation, and have worked on
implementing this with the help of
systems of traceability for food
ingredients.
Our customers expect the best suppliers and environmental groups.
This approach means we can
from Marks & Spencer products. An overall Chemicals Strategy is
respond to current customer
We employ around 150 specialist publicly available on our website
concerns over genetically modified
technologists to set and develop as are the environmental standards
foods by ensuring that none of our
quality standards, and work with used in the dyeing, printing and
foods use GM ingredients, including
our suppliers to make sure we meet finishing processes of our clothing.
feeds for our fresh poultry, lamb,
them. Alongside traditional types of Our greatest chemicals challenge
beef, farmed salmon and
product quality, such as the taste of for foods is the use of pesticides.
milk-producing dairy herds.
food or the fit of clothing, we also We have set a long term goal to
take a serious approach to safety eliminate all pesticide residues Our clothing, footwear, home
issues that affect the wider world. from fruit, vegetables and salads and beauty ranges are assessed
as well as phasing out the use of by specialists to ensure the safety
Chemicals are the building blocks 79 potentially harmful pesticide and suitability of products for their
of life, and therefore an ingredient chemicals. Since the start of 2002 intended customers. For example,
used in the production of every we have been publishing our our range of ‘angel’ underwear for
product we sell. For this reason we progress on our website. At the end girls under 16 years of age has been
take an approach to chemicals that of 2002 Friends of the Earth rated endorsed by the National Society for
responds to both known science our actions on pesticides ahead of the Prevention of Cruelty to Children
and stakeholder concerns. We all other UK food retailers. (NSPCC) and Kidscape. We also
were one of the first companies avoid the use of materials that can
to commit to Friends of the Earth’s For food products, we believe
cause allergic reactions, such as
Pledge on Chemicals, to replace that safety is dependent on high
nickel or latex, next to the skin.
potentially harmful chemicals ahead standards of raw materials. For this
reason we operate comprehensive
safer
Eleven consecutive Government surveys have
given Marks & Spencer a clean bill of health in
meeting the guidance levels set for pesticide
residues. No other major food retailer has achieved
this, but that is no reason to be complacent and
with help from suppliers and environmental
groups we are still working hard to
meet our long term goal of selling
fruit, salads and vegetables free
from pesticide residues.
Main Heading
fresher
All fresh salmon on sale
in our stores comes from
Marine Stewardship Council
approved sources or
Marks & Spencer Select
Farms. This means
customers can be sure
the salmon they buy
meets the highest
environmental standards.
Sustainable raw Support the best: We sell as many
as we can of the suitable and
We intend to apply this approach
to cotton, wool, renewable plastics,
materials available types of fish approved by agricultural produce and
the Marine Stewardship Council replacements for peat over the
Marks & Spencer products rely on (MSC); next two years.
the plentiful supply of high quality
Avoid the worst: We do not sell 19 Our sourcing of wood is also critical
raw materials. This means that we
of the 20 species on the MCS’s in ensuring that we support good
have a commercial need to secure
blacklist.* For the 20th, Scottish standards of forestry management
long term supplies of these materials
Haddock, we are working on a around the world. Most of the wood
and a social responsibility to protect
research project to identify more we use goes into fabrics, such as
the natural environment.
sustainable fishing methods. viscose for clothing, and we have
The current crisis in world fish identified all the main sources of
Improve the rest: By supporting
stocks, threatening an estimated this timber and their respective
WWF’s Invest in Fish project, we’re
65% of commercial fisheries, is one forestry programmes. We support
helping to fund research into the
of many challenges that will affect the best schemes like the Forestry
best ways of restoring fish stocks
us all. Marks & Spencer is not going Stewardship Council (FSC), avoid
around the UK. Farming fish can
to be able to solve these problems badly managed forestry regions and
provide both solutions and a new
on its own but we are prepared to are working to improve our use of
set of environmental challenges, so
take a lead, which we’re doing in other forestry schemes. Wood for
we launched a scheme requiring all
three ways: our furniture comes entirely from
our salmon growers to reduce the
known regions with good standards
environmental impacts of their
of forestry management.
operations. We’re also supporting
a project at Inverness College to
restock the population of wild
salmon. *Updated since publication
www.marksandspencer.com 13
For organic food and beauty Another aspect of sustainable raw In the 7th annual Business in the
products we’ve had to adopt materials is the relatively new term Environment Index published in
a slightly different approach of ‘food miles’. Although it’s usually March 2003, Marks & Spencer
recognising the need to meet both taken to mean the distance and was rated as the best performing
our own standards of quality as expense of transporting food from general retailer, finishing 32nd out
well as those of organic production. source to store, food miles decisions of more than 200 companies.
However, one of the reasons we’re also include elements of locality,
very keen to extend our choice freshness, use of preservatives,
of organic foods is because packaging, choice, support for UK
organic techniques help promote farmers and quality. We’re currently
more environmentally sustainable funding a four-year, post graduate
methods of farming. research project into Food Miles
with the University of Surrey in
order to improve our understanding
of best practices and performance.
sustainable
Wood is an enormously
versatile material – used
in products ranging from
furniture to clothing.
Managed effectively, timber
is a renewable resource –
contributing to the
development of natural
habitats and absorbing
damaging greenhouse
gases. Marks & Spencer
products are always made
with wood sourced from
known locations using good
standards of forestry.
14 Marks and Spencer Group p.l.c. / Principle one – Take care and act responsibly in delivering high quality products and services
Animal welfare • Developing alternatives to veal
crates and stall and tether housing
In 2002 we received Compassion in
World Farming’s Compassionate
There is a wide spectrum of views for pigs. Supermarket of the Year award.
on animal welfare, from those who We base our standards of animal
believe it is ethically wrong to use Farm Animal Welfare Council
welfare on the ‘Five Freedoms’ of Five Freedoms:
animals as a source of produce at the Farm Animal Welfare Council. • Freedom from hunger and thirst
all, to a broader consensus about All our fresh meat, poultry, eggs and • Freedom from discomfort
promoting higher welfare standards. farmed fish comes from suppliers in • Freedom from pain, injury
Food products the Marks & Spencer Select farm and disease
Over the years we’ve worked scheme, working to our own unique • Freedom to express normal
standards covering housing, feed, behaviour
closely with our suppliers, the vast
care and transport. As well as • Freedom from fear and distress
majority of whom are UK based, on
a variety of initiatives including: visiting farms and suppliers, we
are piloting a welfare monitoring
• Moving to free-range eggs for all scheme for chickens by regularly
food products. assessing certain important
• Improving standards of animal measurements, known as
husbandry. Key Production Indicators/
Key Welfare Indicators.
• Promoting free-range poultry.
• Only using antibiotics for
veterinary purposes.
free-range
In 1997 Marks & Spencer
became the first major UK
retailer to sell exclusively free-
range eggs. In September 2002
this policy was extended to the
250 million eggs we use as
ingredients in products like
quiches, cakes, pasta and
biscuits. As a result, 700,000
birds are now living in free-
range conditions.
www.marksandspencer.com 15
Beauty products Marks & Spencer has for many years Clothing, footwear and home
All chemicals for human use have supported the search for new types products
to pass safety tests traditionally of testing which don’t use animals We have introduced policies
conducted on animals. and we were one of the founder designed to protect the welfare of
Marks & Spencer has never corporate members of the Fund For animals. For example, we specify
commissioned any animal testing or Replacement of Animals in Medical that down used in duvets, pillows
asked our suppliers to carry it out Experiments (FRAME). Over the next and cushions is not obtained by
for us, a policy we formalised few years we will work with other ‘live plucking’. However, we are
in 1988. companies, Government, and keen to help further improve animal
animal welfare and environmental welfare standards in our leather
Concerns over the legal standards
groups to agree the best approach sourcing.
used to assess safety have resulted
for ensuring human safety whilst
in European Commission proposals
avoiding the needless suffering
to re-test many chemicals to
of animals.
new standards.
organic
Developed over three years, O/ORGANIC EXTRACTS
is made from at least 70% organic ingredients
and is free of genetically modified materials and
artificial colours or fragrances. In keeping with
all Marks & Spencer Beauty products, the range
contains no animal derivatives and is not
tested on animals.
16 Marks and Spencer Group p.l.c. / Principle one – Take care and act responsibly in delivering high quality products and services
Reducing waste from Over the next year we will be Reducing energy, water
packaging and products working with a wide range of use and waste
stakeholders to agree the best
The disposal of used packaging and overall solutions. In common with Suppliers producing our products,
clothing contributes relatively small all retailers, Marks & Spencer has and customers using them, consume
but still significant amounts of the paid a levy on packaging since 12 times more energy than the
materials sent to landfill in the UK. 1998 to help fund national levels running of our stores. For this reason
of recycling. In addition we support we’ve concentrated our efforts on
Packaging plays an important role
groups such as the Community improving the environmental
in reducing waste by protecting
Recycling Network, and RECOUP performance of our products.
products from damage, and we try
who recycle plastic packaging. However, we still operate a wide
to choose the type of packaging
range of internal efficiency
that will result in the best overall As the UK’s largest retailer of
programmes.
performance. These decisions are clothing we are investigating and
not as straightforward as they might piloting projects to find uses for We measure energy consumption
appear. For example, apples sold in recycled clothing. every half hour, in all locations,
packaging generate no more waste with monthly audits and incentives
Our new reusable packaging system
in total than loose apples which to promote reductions in use. From
for delivering cut flowers won the
suffer higher levels of damage April 2004, we will obtain 10% of
Business Initiative category at the
during transportation and handling.
2003 Grower of the Year Awards
for saving over 2,000 tonnes of
cardboard per year.
reuse
For nearly thirty years, we
have reused or recycled some
50 million coat hangers a year,
saving around 2,000 tonnes
of waste. The use of reusable
plastic trays to deliver food
products saves a further 30,000
tonnes of packaging a year.
These trays are now fitted with
Radio Frequency Identification
tagging for more efficient
delivery to stores.
www.marksandspencer.com 17
our electricity from renewable Responsible financial take on our loans and credit
supplies. We’ve also taken part in services facilities. All our financial services
the UK’s first emissions trading products are designed to offer
scheme by making commitments to Trust is an important factor in competitive pricing with no hidden
reduce energy consumption in our choosing a provider of financial charges. Supporting literature is
head office. Our programme to services. Our aim is to provide the written in plain English and avoids
replace older store refrigeration same levels of assurance and using small print. We maintain our
containing ozone depleting HCFC integrity that customers would growing savings and investments
gases, with modern, efficient ozone- expect from other Marks & Spencer portfolio with a wide range of UK
friendly units, is well ahead of purchases. and international investments,
legislation. We also operate a wide managed by a team of specialists.
range of reuse and recycling We want positive relationships These experts build relationships
schemes for cardboard, polythene, with our customers, and have strict with the companies in which they
paper, coat hangers, uniforms and lending practices to ensure we do invest, in order to achieve best
computer equipment. And all our all we can to assist them to manage value and optimum returns for our
stores have donated unsold foods to their money effectively. We use customers, within a socially and
local charities since the early 1970s. thorough and reliable credit scoring environmentally responsible
processes and use external credit framework.
reference agencies to ensure we sell
only to people who can afford to
responsible
All our financial services
products are designed
to offer competitive
pricing with no hidden
charges. Supporting
literature is written in
plain English and avoids
using small print.
18 Marks and Spencer Group p.l.c.
Principle two – Create great places to work
What we mean by this Marks & Spencer, in the eyes We were placed 13th in the Irish
• Employees and suppliers feel of those who know best – our Independent’s ‘Best Company
engaged in helping to grow a employees. They reported that to Work for in Ireland’ survey.
good and responsible business. working as a valued member of a
In 2002 we won the Personnel
close-knit team, who get results and
• Valuing the quality of our Today ‘Age positive at work’ award.
enjoy each other’s company was the
relationships with each other and This recognises our commitment to
most important part of working for
our stakeholders. attracting employees of all ages
us. It’s an aspiration we aim to back
through policies designed to reflect
• Encouraging the growth of up with our policies.
the varied lifestyles of today’s
diversity and responding to
As well as our responsibilities on working population. As well as
better work/life balances.
issues like Health & Safety and removing the official retirement
• Working with business partners freedom from discrimination, our ages for both men and women, we
who share our aspirations beyond employees have also told us they have increased the use of flexible
our Global Sourcing Principles. believe a ‘great place to work’ working and introduced flexible
needs to offer: retirement options.
Creating great places to work
is a principle we apply across • Communication and consulting – In May 2002 we received the
Marks & Spencer but it’s also an to understand, from clear and Opportunity Now award for gender
aspiration we have for others, concise communication, what the equality in management.
whether suppliers, franchisees or Company is striving to achieve,
business partners. It’s an approach and to be actively involved.
we believe creates shared benefits
• Reward for superior results – to
for the Company, employees and
feel rewarded and recognised for
society as a whole.
achieving results.
During 2002/03 we carried out a
• Development of skills – the
wide range of consultation projects
importance of feeling equipped to
to define what it means to work for
perform current and future roles.
participation
The Sunday Times rated us as one
of the ‘100 Best Companies to Work
For’ in the UK in 2003. In the first
year of our participation in this survey,
where 80% of the marks are based
on confidential employee feedback,
we finished 76th out of over
200 companies who chose to enter.
www.marksandspencer.com 19
Principle two – Review of progress and priorities for next year
Issue Progress Priorities for next year
Communication and • Priorities for the coming year linked to the • Launch national Business Involvement Group
consulting Company’s vision, mission and values forum chaired by Chief Executive.
communicated through annual ‘cascade’
• Continue to monitor and improve internal
programme.
communications.
• Teamwork, listening and learning promoted
• Continue to develop action plans in
as the bedrock of all our relationships.
response to ‘How are We Doing?’ survey
• Developed new policy to ensure that results.
employees hear important business
decisions direct from their employer.
• Introduced Company-wide local, regional
and national employee representation
forums known as Business Involvement
Groups.
• Operation of confidential employee Welfare
Helpline offering advice on a wide range of
employment, legal and personal concerns.
• Regular ‘How are We Doing?’ surveys
conducted with results communicated to
all employees.
• Improved range of internal communications
including an employee magazine, daily store
team briefings, roadshows, videos and team
events.
Rewarded for • Reward and recognition systems • Continue to improve policies that provide
superior results redesigned to support business goals. more opportunity to reward superior
individual as well as team performance.
• Benchmarking of reward packages against
comparable jobs in other companies. • Continue to consult with employees on
reward policies and systems.
• Reward packages comprise of fixed pay,
variable performance related pay and
benefits.
• Revised contributory pension scheme
launched for new employees in 2002.
Build on strengths • New approach to training and development • Launch Retail Academy to improve key
and develop skills launched. selling skills.
• Integration of new system to train and • Develop partnerships with external
develop employees across the Company. organisations to ensure high quality,
consistent training programmes.
Diversity and • Developed clear policies covering all • Continue to review policies and processes.
opportunity aspects of equality.
• System for ensuring diversity and
opportunity reviewed by independent
specialists.
• Active membership of Opportunity Now,
The Employers Forum on Age and Disability.
20 Marks and Spencer Group p.l.c. / Principle two – Create great places to work
Issue Progress Priorities for next year
Respecting the • Introduced flexible approach to retirement, • Continue to ensure that policies meet the
balance between life allowing employees, if they wish, to work needs of individuals and the Company.
and work past 65.
• Founding members of the Employers for
Work Life Balance Alliance.
• Provision of a wide range of work life
balance options offered including: child
breaks, enhanced maternity/paternity,
adoption, fostering, IVF treatment and
dependency leave benefits.
• Basic diversity information available on our
website.
Health, safety • Provide a wide range of employee • Develop ‘WorkWell’, a targeted stress
and wellbeing occupational health support including access management intervention programme.
to Occupational Health Adviser and physician,
• Continue to improve Health & Safety
breast screening, private medical and dental
performance linked to annual audits.
insurance and cash back health plan.
• Independently audited Health & Safety
system.
• Participate in Local Authority Partnerships
Programme – working with five different
authorities to develop best practice systems
and nationally recognised standards.
• During 2002 all employees received a
personal security alarm key ring, and a
booklet advising on personal safety.
• Founding members of Mindout for Mental
Health, a charity aiming to help those with
mental health problems in the workplace
and Tommy’s Pregnancy risk assessment
accreditation service.
• Health & Safety performance information
available on our website.
Ethical trading • Active membership of Ethical Trading • Continue to gather proof of compliance with
Initiative (ETI) including annual submission our Global Sourcing Principles by all
of performance report. suppliers.
• System for ensuring ethical trading reviewed • Continue to improve performance within the
by independent specialists. Ethical Trading Initiative.
• Participation in nine ETI pilot programmes • Provide further assistance for suppliers
including projects focusing on China, Sri working towards the Ethical Trading Initiative
Lanka and banana plantations in Costa Rica. code.
• Use of non-Marks & Spencer specialists to • Participate in SEDEX project to reduce food
advise on improvements. suppliers’ workload and costs in providing
ethical trading information to retailers.
• Comprehensive training provided for
suppliers.
www.marksandspencer.com 21
Issue Progress Priorities for next year
Ethical trading • Self Help Guides produced in nine • Develop franchisee audits in line with
continued languages for suppliers. approach to Ethical Trading Initiative.
• Detailed briefing notes developed for • Improve quality of information available
60 countries. on our website.
• Suppliers helped to set up local best
practice programmes.
• Supporting adult literacy classes in Morocco,
family open days in Sri Lanka and health
care training in Indonesia in partnership with
suppliers.
• Audit programme covering franchise
operations.
Business ethics • Introduced policy of not making financial • Review Business Ethics policy.
political donations in 1997, however, we
will continue to support our employees who
wish to play an active role in democratic
political life.
• Long-standing Government Affairs
programme.
• Operation of business ethics policy on gifts
and insider trading.
22 Marks and Spencer Group p.l.c. / Principle two – Create great places to work
Ethical trading 70% from the UK and Ireland, with by strict sanctions when standards
20 suppliers accounting for 70% of are not met. Most of our suppliers
Providing the best quality and value all the foods we sell. have suppliers of their own, who
products to our customers involves in turn may themselves be supplied
For many years Marks & Spencer
working with nearly 1,500 suppliers by others. Ensuring the working
has sought to ensure that our goods
in 70 countries around the world. conditions of the vast number of
are produced in good working
We believe that global trading can people who contribute in some
conditions. This supports our core
benefit everyone when conducted way to what eventually becomes
principles of providing our own
within a set of principles to ensure a Marks & Spencer product is very
workforce with meaningful jobs
ethical trading. challenging. In 1999, we therefore
and providing customers with
published our company-wide
In the late 1990s the competitive high quality products. We and
Global Sourcing Principles. These
clothing market required us to work our suppliers have found from
principles require all our direct
with our suppliers to establish experience that when people are
suppliers i.e. those whom we
overseas manufacturing facilities. treated with respect, in decent
directly contract for both goods
Today, over 80% of our clothing is working conditions and with fair
and services to ensure they
manufactured overseas but the rates of pay, then both they and
meet with what we believe to be
importance of supplier relationships their companies benefit from
acceptable standards, and to be
remains. Our top 15 clothing increased commitment and
continually improving. We enforce
suppliers account for over 80% of productivity. Customers benefit too
these principles firmly using a
our clothing business, and many of from goods offering better quality
combination of independent and
these are UK companies sourcing and value. We aim to achieve this
Marks & Spencer audits, and
from overseas. objective through the use of agreed
supplier self-audits. We also
standards developed between
For our foods we search for the best encourage our suppliers to adopt
ourselves and suppliers, a regular
quality available in the world, but this approach with their own
pattern of visits and a policy of
always choose UK produce first if suppliers.
continual improvement – backed up
the quality is right – we get around
ethical
Ensuring good working conditions for
all the people involved in producing
Marks & Spencer products is an important
challenge for us. In 1999 we published our
company-wide Global Sourcing Principles
as a way of communicating the minimum
standards we require. We use a combination
of independent, Marks & Spencer and
supplier self-audits to ensure that our Global
Sourcing Principles are complied with and
that progress is being made towards the
international standards promoted by the
UK Government’s Ethical Trading Initiative.
sharing
We believe that listening, learning
and working as a team are the
bedrock of Marks & Spencer. In
stores, we hold daily briefings
and weekly updates, whilst e-mail
updates and our staff magazine
On Your Marks keep all staff in the
picture. In addition, we run regular
‘How are We Doing?’ surveys to
gauge morale and pinpoint areas
for improvement.
We take great care in choosing the We encourage the open sharing of Communication and
companies who supply us directly best practices amongst suppliers in
consulting
with goods and services and with countries as diverse as Morocco,
whom we aim to build long term Indonesia, Sri Lanka, India, Turkey,
Over the last two years we’ve
partnerships. From the start we Egypt and Vietnam. In Morocco,
developed a set of ‘ways of working’
require each supplier to implement where only 45% of women over the
to define and promote practices
our Global Sourcing Principles, age of 25 are literate, all factories
such as teamwork, listening and
requiring compliance with all producing our goods now work with
learning. We believe these form the
relevant local and national laws, the Government to provide literacy
bedrock of all the relationships that
particularly with regard to: working training for both men and women.
make Marks & Spencer work –
hours, health & safety, conditions, So far 300 workers have completed
between the Company and
rates of pay, terms of employment the literacy course and gained a
employees, among employees
and minimum age of employment. diploma. In Sri Lanka, where
working together, and between
But as our business relationship families are often concerned about
employees, customers and suppliers.
develops, we expect the supplier the safety of sons and daughters
steadily to raise standards and who leave home to find work, we’ve We have taken steps, as far as
improve working conditions, taking encouraged our suppliers to hold possible, to make sure our
account of the internationally open days. Whilst in Indonesia, colleagues hear important business
recognised standards promoted by one supplier works alongside local information direct from their
the Ethical Trading Initiative (ETI), a health groups to offer a health employer. As most of our employees
group set up by the UK Government, education programme, which are also shareholders and customers
of which we are a member. benefits not only their employees we also take care to keep them up
and their families, but also the to date on business performance.
To help suppliers achieve this, we
business. In stores, we hold daily briefings
fund training programmes alongside
and provide weekly updates on
Self Help Guides in nine languages.
operational news. We use printed
By the end of 2002 we had assessed
and electronic updates, including
over 70% of our finished product
On Your Marks – a regular magazine
suppliers worldwide against both
for and about employees, as well
our Global Sourcing Principles and
as offering team events, telephone
the ETI’s standards.
conferences, roadshows and videos.
24 Marks and Spencer Group p.l.c. / Principle two – Create great places to work
We regularly ask employees what performance which may increase Health, safety and
they think about different types of on an annual basis. wellbeing
communication to make sure we
Benefits A comprehensive
meet their needs. We aim to actively protect the
range of benefits including a
Our regular ‘How are We Doing?’ 20% Marks & Spencer discount, health and safety of our employees,
surveys gauge Company morale and interest-free loans for public with safety officers in each store and
pinpoint areas for improvement. transport season tickets, preferential annual audits by an independent
These surveys have very high loan rates from Marks & Spencer specialist. Over the last year we
response rates, and we share results Financial Services, save-as-you-earn have focused training on managers
with employees and action plans share options, access to preferential and store safety officers. We’ve
for improvements developed. The car leasing, profit sharing and also used our programme of store
Company also communicates generous pension scheme. renewal to look at ways of making
directly with employees through our sale floors safer.
Variable Pay A sliding scale of pay
Business Involvement Groups, Our major causes of workplace
based entirely on business and
which grew out of existing accidents are slips, trips, falls and
personal performance.
employee consultation forums in being struck by moving objects
2001/02. Employees developed Marks & Spencer reward on sales floors and we have
these groups themselves, building packages are designed to provide concentrated this year on reducing
on a recognised need for stronger remuneration which compares to these sorts of injuries.
consultation. Representatives, that of similar companies, but allows
elected by their peers, have two employees to aim for earnings in the We also provide a full range of
hours a week allowance for this top 25% of comparable jobs. occupational health services
activity, and attend a training including access to occupational
The challenge for us is to get the health advisers, breast screening,
programme created with the
balance right between promoting private medical insurance and a
Institute of Management. We have
teamwork and rewarding individual cash back health plan. Over recent
Business Involvement Groups in
achievement. years we’ve changed our approach
every store and office area, with
head office and regional forums, to from supporting primary health
review shared issues. After running initiatives to occupational support.
these for over a year we’re also Build on strengths and Last year we started to record and
launching a national forum, which develop skills collect information about employees
our Chief Executive will chair. These who became unwell at work. We
forums aim to encourage employees In today’s marketplace everyone discovered that 60% of workplace
to share knowledge and promote needs a flexible and diverse range of illness relates to muscular stresses
debate about the business. skills. This is true whether someone and strains, emphasising a need to
joins us for a short period of time or improve the way we train people
as a long term career. to handle goods and equipment.
The second highest cause was
Rewarded for superior To help people fulfil their
anxiety and depression. During
results career ambitions, we have a
2002/03 we’ve provided extra
comprehensive system to train
training to our occupational health
The success of our business depends and develop employees – what we
advisers on this issue, supported
on the contributions of talented call ‘performance management’.
by a stress awareness programme.
and capable people. In 2001, in Specialists across the Company help
consultation with employees, we team leaders develop career plans During 2002, we gave all our
designed a three-part reward for all employees. Every year our employees a booklet advising them
structure to offer greater incentives employees can review progress with on personal safety together with a
for personally achieving superior their line manager, using agreed personal security alarm.
results. It includes: objectives as a basis for
performance pay awards.
Fixed Pay A basic salary plus
an extra amount for personal
www.marksandspencer.com 25
Principle three – Help make our communities good places
in which to live and work
What we mean by this We’ve always been committed to Our Children’s Promise millennium
• Being at the centre of all the meeting the needs of our customers campaign was highly commended by
communities in which we trade by providing a balanced approach Business in the Community’s 2000
and making a positive contribution to high street, suburban or edge-of- Awards for Excellence.
town shopping. Over 80% of our
• Supporting the involvement of our In 2000, the introduction of car
stores are in traditional town and
employees in their communities sharing as part of a Green Transport
city centres, which we’re adding to
Plan reduced the number of cars
• Acting as good neighbours in our growing chain of Simply
commuting to Marks & Spencer
Food stores. These locations are
As a major retailing presence in the Financial Services, on the outskirts
convenient for people living and
UK and Ireland, Marks & Spencer of Chester, by 30%. Special software
working in town and city centres
stores provide employment, a wide helped match potential partners,
and offer customers and employees
range of products and services and and participants received incentives
ready access via public transport.
often act as an important part of the such as car tax vouchers.
Operating in these partly residential
fabric of many high streets. Retailing
locations inspired many of our In 2002 we received Motor
depends on economically healthy
innovations, developed in Transport Magazine’s Urban Delivery
and sustainable communities.
partnership with suppliers, like vehicle of the year award for our
Helping others to helps themselves
‘quiet’ nitrogen chilled food delivery development of delivery vehicles
is an expression of enlightened self-
trailers and gas-powered tractors. that halve fuel use and emissions.
interest, providing assistance to
those who need it, and who in turn Following the Brixton, Moss Side, In 2002 we received the Deafblind
will pass on the benefits to society St Pauls’ and Toxteth riots of the High Street award for accessibility.
as a whole. early 1980s, Marks & Spencer,
together with a number of other
Over the years we’ve participated in
businesses, took responsibility for
projects up and down the country
finding ways to contribute towards
designed to help improve the
a better society. This led to us
quality of town and city centres,
becoming a founding member of
addressing issues as diverse as
Business in the Community and
public transport access, parking,
later helped to set up the PerCent
traffic management, lighting,
Club – a group of companies
security, disability access, provision
committed to putting at least
of recycling facilities and assisting
1% of pre-tax profits back into
sections of the community who feel
the community. Since then our
excluded.
approach to community investment
has continued to evolve, matching
projects with business needs to
deliver more widespread benefits.
26 Marks and Spencer Group p.l.c.
Principle three – Review of progress and priorities for next year
Issue Progress Priorities for next year
Community • Founding and continuing members of • Launch of major ‘flagship’ initiative to raise
involvement Business in the Community’s PerCent Club – stakeholder awareness and engagement in
companies committed to investing at least our community activities.
1% of pre-tax profits in community projects.
• Increase scale of priority community
• Annual participation in London projects.
Benchmarking Group to measure
• Develop improved ways of measuring
community benefits of initiatives.
benefits to the community.
• Operation of a wide range of community
• Implement a community involvement
involvement activities designed to ‘Help
programme around the relocation of our
others to help themselves’ focused around
head office.
health, community safety, education and
employability. • Improve quality of information available
from our website.
• Annual sponsorship of Sieff Award to
recognise the achievements of individuals
or organisations in the community.
• Provision of support for employee
volunteering in the form of awards,
matching funds, part-time secondments,
payroll giving and ‘Cares’ one-day team
building challenges.
• Provision of ‘Seeing is Believing’ tours for
senior management to visit key community
initiatives.
• Policies and examples of initiatives available
on our website.
Acting as a good • Introduced a wide range of distribution • Continue with second of five year
neighbour transport initiatives including use of gas- programme to upgrade distribution fleets to
powered food delivery vehicles, ultra-low Euro III emission standards.
sulphur diesel, continuous recycling traps
• Develop further distribution transport
and rail freight.
innovations.
• Collection and transporting of recyclable
• Continue to participate in local authority
materials back to Distribution Centres.
best practice initiatives.
• Provision of interest free loans to employees
• Extend use of rail freight.
for public transport season tickets.
• Participation in local authority Freight
Quality Partnerships.
• Contributing to a wide range of town centre
management and improvement initiatives.
• Performance information available on our
website.
Accessibility • Supported Disabled Go partnership to • Continue to support the development of
promote high standards of accessibility in Disabled Go internet guides.
public buildings.
• Increase the number of smaller local food
• Operation of programme to ensure that stores.
stores are accessible to disabled people.
• Development of programme to open local
Simply Food stores.
www.marksandspencer.com 27
Community Breakthrough Breast Cancer Rainbow of Hope – Our charity
involvement Challenge – Raising awareness and for the Queen’s Golden Jubilee
funds for breast cancer by selling was I-CAN, the national charity for
Over the last few years our special ribbons and providing children with speech and language
community involvement activities information in our lingerie difficulties. From 8 May to 8 June
have moved away from providing departments during October 2002. 2002 all Marks & Spencer stores
many small scale, philanthropic featured a striking Rainbow of Hope
Marks & Spencer British Community
donations. Today, we prefer to work display inviting children to pin up
Safety Awards 2002 – In partnership
in partnerships providing larger their hopes for the next 50 years.
with Crime Concern, we ran a
scale support for fewer projects. Our national awards scheme to Ready for Work – Following a
community involvement programme recognise the best crime prevention successful pilot scheme, a two-year
has two main thrusts – working at and community safety projects. project in partnership with Business
Company level on key initiatives, in the Community to provide two-
and supporting employees in Are You What You Eat? – A free
week work placements with
individual local activities. resource pack for secondary school
Marks & Spencer for 600 homeless
teachers called ‘Are You What You
1. Company initiatives people across the UK and Ireland.
Eat?’ to promote better child
We aim to create community nutrition across the UK, voluntarily Disabled Go – A partnership to
benefits on key social issues that taken up by 38% of schools. develop internet guides to venues
relate directly to our business by and services which are accessible
helping others to help themselves. A fresh look at foods and packaging
to people with disabilities aiming to
We’ve concentrated these activities – A free resource to support the
cover 75 UK towns and cities by the
on three main areas: Health, teaching of science, design,
end of 2005 (www.disabledgo.info).
Community Safety, Education technology and health education
and Employability: for children aged 5-11 years. Charity Christmas Cards – Half of
our Christmas card sales help
support charities including Mencap,
community
Following a successful pilot
scheme, Marks & Spencer
has now launched Ready for
Work – a two-year project in
partnership with Business in the
Community to provide two-
week work placements in our
stores and head office for
homeless people across the
UK and Ireland.
28 Marks and Spencer Group p.l.c. / Principle three – Help make our communities good places in which to live and work
National Autistic Society, Rethink actively involved in their opportunity to take part in one-off
Severe Mental Illness, Samaritans communities in this way. We volunteer action days. As well
and Shelter. promote this in our employee as involving employees in the
magazine and at national events. community, it develops skills such
Share restructuring – In 2002,
Here’s what we do to support those as teamwork and communication,
we also gave our shareholders
who want to get involved: and boosts motivation and morale.
the chance to take part in our
community activities during the Matching Funds – We match any Payroll Giving – We enable
Company’s financial restructuring funds our employees raise, pound employees to donate to their
which returned approximately for pound, up to a maximum of favourite charities through their
£2 billion to shareholders. We £10,000 each financial year salary, the most effective method for
replaced existing shares with new per store. the charities.
ordinary shares and fixed value
Helping Hands and Individual Employee Volunteer Awards – We
B shares. Under our specially
Fundraising Awards – We provide held our third awards ceremony in
arranged share dealing facility,
our fundraising or volunteering September 2002, recognising and
shareholders could choose for the
employees with £250 each celebrating the achievements of our
proceeds of their sale of B shares
financial year, to help the charities employees who volunteer in their
to go to charity.
they support. community.
In 2002 we received a 20th
Part-time Secondments – We
anniversary award from the Terence
encourage our employees to
Higgins Trust, an HIV/AIDS charity,
develop skills such as team building
for our continued support.
and communication through
valuable community work. It’s
2. Employees
something that benefits them, as
Many of our employees willingly
well as our community partners.
give up their spare time to raise
money and volunteer for a wide Marks & Spencer ‘Cares’ – The
range of charities and local ‘Cares’ programme arranged by
organisations. We are keen to help Business in the Community
employees who wish to become gives teams of employees an
Summary Feedback
(Please tick all boxes that apply)
Leadership Additional copies & audio tape
A Board level Corporate Social Responsibility Additional copies, or an audio tape giving highlights,
I am a:
Committee led by the Chairman provides leadership can be obtained by calling freephone 0800 591 697. Marks & Spencer shareholder
supported by a Forum of key managers from across Marks & Spencer employee
the Company. Marks & Spencer customer
Marks & Spencer supplier
Listening to Stakeholders
NGO staff member
We have carried out stakeholder ‘mapping’ to identify
CSR/environmental consultant
all stakeholders and how we listen to their expectations. Financial analyst
Listening and learning will continue to be our highest Investor
Corporate Social Responsibility priority, now and in Journalist
the future. Student or schoolchild
Other (please specify):
Important Issues
We have used our understanding of stakeholder
expectations to identify the most important issues,
known as ‘materiality’. We have identified a full range Your information needs
of CSR issues with reference to the United Nations I am interested in:
General background information on Marks & Spencer and CSR
Global Reporting Initiative, and grouped them under
Information on particular topics (please specify):
20 headings.
Integration
Every area of the Company is currently developing its
Did you find the information you were looking for?
own Corporate Social Responsibility action plan to
meet our overall responsibilities. Existing management Yes No
systems include requirements for Corporate Social
Responsibility action. Overall impression
Indicators
I think the CSR Review is:
Our aim is to provide comprehensive and useful Excellent
measurements of our progress on Corporate Social Good
Responsibility, and we already use a wide range of Average
indicators for this. Poor
Assurance
Internet version
Information relating to our Corporate Social
Do you have internet access at home or work?
Responsibility performance is currently collated by
Marks & Spencer personnel with the assistance of Yes No
external specialists where required. In 2002, an external
assurance provider conducted a review of key systems Would you be happy, in principle, to access an internet version
and performance. We are currently developing plans to of our forthcoming CSR Report instead of a printed copy?
provide suitable levels of assurance in the future.
Yes No
Reporting
Marks & Spencer already reports progress on a wide Any comments?
range of Corporate Social Responsibility issues through We welcome your thoughts about the CSR Review.
Business in the Community’s Impact on Society website,
the Ethical Trading Initiative, London Benchmarking Design and production
Group and our own website. In June 2004 we plan to Designed and typeset by Pauffley, London
produce our first CSR Report.
Printed by The Beacon Press using their
environmental print technology. The paper is
Feedback Mega Matt, 50% totally chlorine-free pulp from
We welcome your views on this publication, its content sustainable forests and 50% recycled fibre.
and our plans for the future, and have attached a Beacon Press is a Carbon Neutral® company.
feedback form over the page. is a Millennium Product.
BUSINESS REPLY SERVICE
Licence No. NAT 13067
2
Corporate Social Responsibility Department
Room D147
Marks and Spencer Group p.l.c.
Michael House
47 Baker Street
LONDON
W1E 1BR
2000
ENTERPRISE INNOVATION
THE QUEEN’S AWARD FOR
2003
ENTERPRISE INNOVATION
THE QUEEN’S AWARD FOR