The Oxford-Achilles Working Group
on Corporate Social Responsibility

Abstract: 'Plan A' is a business-wide £200 million plan for social and environmental responsibility. Ms. Stafford described the complexities of implementing the initiative. With more than 500 stores in the UK alone and almost 2000 direct suppliers employing half a million people around the world, ensuring responsibility throughout the business is a logistical challenge. This was illustrated by looking at what lay behind various parts of the marketing campaign used to launch Plan A. Promises of fully bio-degradable sandwich packaging, for example, requires contracting with a single supplier of packaging certified by the Forest Stewardship Council (FSC), ensuring that chemicals used for labeling comply with FSC standards, and developing a biodegradable 'window' for the sandwich packaging made of corn starch. All of the steps involved in this and other parts of the campaign requires ongoing collaboration with NGOs and certifying agencies, as well as a system of monitoring and assisting suppliers around the world.

Ms. Stafford discussed in detail the way that M&S works with its supplier base. She cited the difficulties of relying solely on auditing to ensure that suppliers meet the company's standards. Producers are often subject to hundreds of audits from different firms, each of which have their own standards. This is not only costly for suppliers but it has also given rise to a culture of working around the auditors whereby producers prepare for audits but in doing so make few substantive changes to their practices. M&S uses unannounced audits and has developed systems to benchmark and reward good practices by suppliers. The company also engages with small suppliers and uses proactive remediation programs to assist them in meeting standards. These practices help to get around the fact that suppliers often are reluctant to substantively improve labour or environmental standards for fear that it will raise prices and drive away buyers. M&S is also giving attention to the practices of its buyers. A common problem with CSR programs is that while a large company's CSR division might encourage suppliers to meet standards for responsibility, its buyers will still be driven to meet margins and timely delivery and may thereby pressure suppliers to violate standards on overtime and labour conditions in the process. M&S has thus focused on the way that it rewards and evaluates buyer practices. Ms. Stafford described how CEO Stuart Rose encouraged this change by challenging buyers directly to have knowledge about the full supply chain in their product and how their suppliers were meeting sustainability measures. Ms. Stafford emphasized that Plan A is not an altruistic program. "CSR used to be about how a company gave away profits. Now it is about how you make profits." Mark and Spencer's responsibility plan is indeed inspired by the personal beliefs of CEO Stuart Rose. However, a sound business case exists for Plan A, which is targeted at bolstering the M&S brand and responding to customers' interests and demands for more responsible products. Implementing Plan A has required a widespread cultural change throughout Marks and Spencer since every division in the company has to evaluate its practices for the plan to succeed. In order to achieve its ambitious goals for the future, such as reducing all food packaging by 25%, M&S will have to continue to research and develop sustainable products and practices, and continue fostering collaboration with NGOs and suppliers.

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