Corporate Social Responsibility Report

This report examines the corporate social responsibility (CSR) practices of Marks & Spencer, a leading British multinational retailer. It analyzes the company's approach to CSR, including its ranking, corporate actions, and the influence of CSR on purchasing decisions. The report also discusses the importance of CSR in the current business environment and provides recommendations for M&S to enhance its CSR initiatives.

CONTEXT OF
BUSINESS

EXECUTIVE SUMMARY
Corporate social responsibility is a term which determines various activities to improve
society in some way. This can range from presenting money to non-profits for implementing
environmental and friendly policies at the workplace. The CSR is crucial for the companies and
employees dealing business both in domestic and international market. As this intent to ensure
that the companies conduct their business in ethical way, as it considers the economic, social,
environmental impacts and thoughts of human rights. This can also involve the range of
activities like working in partnership with local peoples, improving condition of vulnerable
societies and more.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................5
The way company can rank itself with regards to CSR.........................................................5
Corporate actions that resulted in company's ranking............................................................5
Company's approach to CSR influence for purchasing decisions, with reasons....................7
ANALYSIS AND DISCUSSION...................................................................................................7
FINDINGS.......................................................................................................................................8
Recommendation.............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A''' Business context” is a linguistic context into which a specialise knowledge is
employed (Bell, Bryman, and Harley, 2018). This can be a bigger business ownership,
individualist organisation or may be a project. The business context basically sets the range for
requirement assemblage and correspondence. In this all consequent requirements gathering is
required to be designed by focusing on effectively satisfying purpose of business context.
Business context plays a key essential role in the business planning aspect. In this report
discussions have been made on, brief summary of the business selected for research, regards of
company with Corporate social responsibility, specific examples of corporate actions that results
in ranking of company, different approaches to CSR that influence the purchasing decisions of
the company and the need of CSR in current business environment.
Marks & Spencer is a British multinational retailer that is headquartered in Westminster,
London. They are involved in selling of clothes, home products and luxury food products. Marks
& Spencer was established in the year 1884 in Leeds, United Kingdom by Thomas Spencer and
Michael Marks. The first Asian store of M&S was opened in Kabul, Afghanistan. It is one of the
leading retailers of UK that has around 20 million customers worldwide. It is a successful
manufacturer of women's wear and men's wear. The main purpose of the research is to
understand the need of corporate social responsibilities in context of increasing productivity of
company (Jazdi, 2014). It is essential for companies that trade globally to develop their brand
image in front of others. These CSR activities conducted by various companies helps in
accomplishing this. Moreover, economic value of the company is also enhanced by involving in
welfare of society.

LITERATURE REVIEW
The way company can rank itself with regards to CSR
According to views of Bell, Bryman, and Harley (2018), it has ascertained that there are
different policies which are adopted by organisations and business for competing in highly
competitive market. CSR activities are initiated by companies to attract customers and gain trust
and loyalty of stakeholders (da Cunha Mattos and et.al., 2014). Marks & Spencer is a renowned
retailer that is offering services across the world. It is important for it to conduct CSR activities
and build its brand image and reputation in front of customers and stakeholders. In Marks &
Spencer they focus on environmental issues like green issues which are considered for setting up
of corporate social responsibility programmes. It is beneficial for businesses to develop social
value and environmental in order to enhance image and build company's name and fame.
Companies think that the cost is enhanced by activities of CSR, that is why they create a balance
on profits by using CSR activities for making money and profits. Such activities adopted in M&S
helps the company to increase the reputation of company and attract new customers and
stakeholders. The report helps the company to know about perception of CSR activities and how
they help in increasing sales and profits for the company.
Corporate actions that resulted in company's ranking
As per thoughts of Kozubíková, and et.al., (2015), it has evaluated that Corporate action
is an act which is initiated by a public company that brings actual change and affects its
shareholders. Also, a process initiated by a company that will bring change to its stock. It has a
significant impact on financial structure of company and stakeholders. The purpose of using
corporate actions are to return profits to shareholders and influence the share price (Cheng, Yang
and Sheu, 2014). Some examples of corporate actions include dividends, stock splits, mergers,
spin-offs and acquisitions. Corporate actions are of three types which are defined below:-
1. Mandatory corporate action- It is event initiated by board of directors of the company
which affect all shareholders either directly or indirectly. Shareholders participation is
mandatory for corporate actions. Mandatory corporate actions are subject to approval of
shareholders at annual general meeting. Some examples of corporate actions comprises of
stock splits, mergers, pre-funding, bonus issue, return of capital, asset ID change and
spin-offs . Some of examples are defined below:-

 Stock Split: This refers to corporate action when company's existing shares are
divided into multiple shares. For example Marks and Spencer do stock splits because
it helps in increasing liquidity of stock or make high priced stock more accessible to
small investors.
 Reverse Spilt: It refers to decreasing number of shares outstanding by exchanging
current shares for less shares of company. As, this leads to increase in share price. In
context of Marks & Spencer reverse split is done to meet price minimums for stock
exchanges and investors.
2. Voluntary corporate action- Shareholders are given option to elect or participate in the
action is known as voluntary corporate action. A response of shareholders is required for
corporation to process the action or decision. Shareholders may choose to take no action
so that their securities remain unaffected by corporate action (Jussila, Kärkkäinen and
Aramo-Immonen, 2014). The various examples of voluntary corporate actions include
right issue, buy back offers to shareholders and tender offer. Few of examples are
described below:-
 Buyback- It is action performed by company to reduce number of shares outstanding.
For example: Marks & Spencer offers buy back of shares of stock from shareholders
at attractive price as this will help in reducing outstanding shares and stake of
shareholders in company.
 Rights Issue: it is referred to offering of additional shares to existing shareholders of
stock (Wirtz and et.al., 2016). For example: Marks & Spencer for raising of capital
can be done by offering additional shares to existing shareholders at discounted prices
which help in expansion of business.
3. Mandatory with choice corporate action- Mandatory corporate action refers to action
when shareholders are given options to choose between several options. Shareholders can
submit their elected options and if not submitted than default option will be applied.
These corporate actions may be taxable. Few examples of this corporate action is stock
dividend and cash dividend.
 Dividend payouts: It refers to payment made to investors out of the profits earned by
company. It can be either stock or cash dividend. With reference to Marks & Spencer
funds, stocks and assets are distributed to shareholders as part of dividend.

 Different social activities: Marks & Spencer offers a variety of corporate social
activities for environment and people like charity and community funding donations,
donations of clothing samples to poor, food donation at charitable organisations,
making Christmas cards for needy people, fundraising for breast cancer patients,
supporting in disaster management and climatic hazards, waste management,
sustainable raw material, health camps, employee development, ethical programs, etc.
Company's approach to CSR influence for purchasing decisions, with reasons
It is analysed from the view point of Wirtz and et.al., (2016) that Marks & Spencer uses
various strategies related to corporate actions in their organisation. These are used for increasing
the brand image in front of public and it also helps in attracting the number of stakeholders and
investors. Such approaches of Marks & Spencer affect the purchasing decision of various
customers in a positive way. The strategies made in Marks & Spencer gives a clear vision of
organisation in outer world. It also increases the number of investors that help towards operating
different tasks and projects of the company. Marks & Spencer has taken responsibilities to keep
everyone satisfied including suppliers, partners, customers, employees and communities
(Bargiela-Chiappini and Nickerson, 2014). It is the responsibility of company to develop its
value by providing quality and innovation in products and services. This brand takes special care
of society by helping them in various issues like industrial waste management, climatic changes,
environmental issues and ethical issues of business. All such factors help in affecting mind of
customers and making them buy products of the company.
ANALYSIS AND DISCUSSION
It has been analysed that corporate social responsibility is defined as a business model that
helps the company to become socially accountable to stakeholders and public. It includes the
ways by which a company can enhance society and contribute in welfare of people or
environment. There are several voluntary standards given to companies that help them in
implementation of corporate social responsibility measures. As Business is very important part
for society, which is dependent for availability of inputs as well as for marketing of goods and
services (Popovič, and et.al., 2014). Therefore, managers of Marks & Spencer should have moral
responsibility to protect interest of society and look after welfare of different stakeholders apart
from providing goods and services.

FINDINGS
Through literature review, it has been summarised that CSR approaches and activities have a
positive impact on organisation. It helps to increase sales of the company and maintain goodwill
in marketplace. CSR activities help in building of trust and loyalty of people towards ethics of
company. People start believing that products and services offered by them is of good quality. In
this regard, by conducting market research, M&S and other retailers dealing in same sector can
develop strategies to run effective CSR activities for improving and enhancing living condition
of societies. As preference of customers and perceived value of business by them is generally
developed by ethical activities. Therefore, to influence purchasing decision of customers in
positive manner, M&S needs to concern on performing various CSR activities as well. This
would help in earning high retention of loyal customers for longer period.
Recommendation
From literature point of view it has been summarized that in globalized scenario,
company’s main objective is to maximize their profits without neglecting social interest or
responsibility. Therefore, it is recommended to M&S to gain strategic initiative and long term
success, its managers have not only need to focus on implementing effective business practices
to gain profitability but also towards high contribution in social responsibility. CSR is social
commitment of this company to behave ethically towards society by upholding social values. As
corporate social responsibility and business environment are relevant to each other therefore, for
maximizing profits, its managers must concern on fulfilling social interest. For implementing
CSR activities, some other recommendation for M&S are given as below:-
Employee Retention- For performing social responsibility in complex business
environment, managers of M&S need to concern on getting high retention of employees first. By
fulfilling every requirement of workers and satisfying emotional and social needs, Marks &
Spencer can retain its employees for longer period society. It will give opportunity to respective
company to leverage its corporate resources at their best and optimal use for running CSR
activities.
Enhanced Brand Image- CSR activities of business must be aimed towards welfare of
society, which would give opportunity to companies in building good image and reputation of
firm in market (Askariazad and Babakhani, 2015). In context of Marks & Spencer, by

implementing such strategy, it can enhance goodwill of business, through which it can attract
more customers because of positive image in society.
Survival and Growth- CSR is considered as vital strategy for companies to survive in
complex business environment. In context with retail industry, here customer preferences and
market shifts become even more complex and unpredictable. Therefore, implementing some
effective CSR activities like provide education to poor children, improve condition of vulnerable
people and more, helps M&S in getting survival and growth as well as dealing with complex
business environment.
CONCLUSION
It has been analysed from the above report that corporate social responsibility activities
and programs plays an important role in development and growth of the company. There are
various corporate social activities which a company can conduct and enhance it's brand image
like donations for needy people, providing food and clothes to poor, donation of books, health
camps, etc. All such social activities help to maintain the company's reputation worldwide.

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