Corporate Social Responsibility and Sustainability

The provided document is an assignment that delves into the concept of corporate social responsibility (CSR) and sustainability. It presents a selection of academic articles and research papers that examine the relationship between CSR and financial performance, as well as its impact on reputation and branding. The document also touches upon business model innovation, organisational values, and sustainable development within the context of the fashion industry and global markets. Furthermore, it includes a case study on H&M's sustainable fashion supply chain. The assignment aims to provide insights into the importance of CSR and sustainability in today's business environment.

CORPORATE STRATEGY AND
GOVERNANCE

TABLE OF CONTENTS
TITLE- Corporate governance and strategies issues.......................................................................3
Chapter 1: INTRODUCTION..........................................................................................................3
1.1 Overview of research ...........................................................................................................3
1.2 Overview of organisation......................................................................................................3
1.3 Problem Statement................................................................................................................4
1.4 Research Aim and Objectives ..............................................................................................4
1.5 Research Question.................................................................................................................5
1.6 Structure of research.............................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
2.1 Role of corporate governance policies and practices............................................................6
2.2 Relationship between stakeholder and financial performance of business...........................7
2.3 Ways by which Corporate governance policies can be implemented within Marks and
Spencer........................................................................................................................................8
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
CHAPTER 4: CRITICAL DATA ANALYSIS............................................................................14
4.1 Critical review on the basis of secondary research.............................................................14
Ways by which Corporate governance policies can be implemented within Marks and Spencer
...................................................................................................................................................15
4.2 Critical review on the basis of primary research.................................................................16
CHAPTER 5: RECOMMENDATION AND ACTION PLAN.....................................................25
5.1 Recommendation.................................................................................................................25
5.2 Action Plan..........................................................................................................................26
CONCLUSION..............................................................................................................................29
REFERENCES..............................................................................................................................30

TITLE- Corporate governance and strategies issues
Chapter 1: INTRODUCTION
1.1 Overview of research
An issue related to the corporate governance is the mutual balance between the
participants in the organization which is necessary to be maintained. There are different
participants interested towards the business operations and functions known as stakeholders
which includes shareholders, community staff member and executive staff etc. (Werani, 2018).
Corporate governance practices directly impact on the business profit and reputation of the
organization and having the poor policies that can expose the firms to loss of capital investment,
reputation damage etc. This research mainly defined concept of corporate governance and its role
in maintaining relationship among stakeholders.
1.2 Overview of organisation
Marks and Spencer is a famous British multinational retailer that came into existence in
middle of 1884. It was established by Sir Michael Marks and Thomas Spencer. This retailer
company in UK is listed one of the biggest brand and it is running more than 980 stores in near
about 57 countries and is also listed at London Stock Exchange. But from last performances of
their sales, it has analyzed that M&S faces some issues related to retain interest of its
stakeholders within business. It is arisen due to costly restructuring the corporate strategy for
maintaining sustainability at marketplace. This led management of M&S to think twice on
decision-making process which are concerning mainly upon future (M&S still feeling the heat as
winter approaches, 2019). Any such type of decisions and CG policies are majorly depended on
whether this firm is able to create changes in business. This would spread various negative
rumors about Marks and Spencer which adversely disrupted its image as well.
In this regard, it has been evaluated that every step which is taken by respective firm for
restructuring its business went wrong. This would lead to decrease market share of this company
more adversely. Along with this, it has also analyzed that idea of restructuring the infrastructure
has led M&S to face various issues. It includes near about sixty-two percent fall in profitability
of business annually. Due to this issue, respective company also fails to gain interest of
stakeholders and their financial support in implementation of further projects.

1.3 Problem Statement
Corporate Governance reflects relationship among Board of Directors, Management,
Shareholders, Employees and other stakeholders in a company. It deals with the ways by which
suppliers or investors who finance in corporations assure themselves, to get high return on their
investment (Quinlan and et.al., 2019). The issues of corporate governance will impact on the
financial performance of organization and also measure the accountability of different entities in
terms of policies, activities and operations. The researcher will find out the strong relationship
between the corporate governance practices and impact on the financial performance of
organization. In context with Marks and Spencer, as this company faces failure of corporate
governance. Therefore, this research will help in determining factors that is impacting on
following of CG practices of M&S. It will help in taking effective measures to minimize impact
and increase profits through CG practices. It also identifies ways by effective CG practices can
be implemented within business, by taking consideration the overall interest of stakeholders.
“Main issue which Marks and Spencer is facing is that they are not able to retain interest of
stakeholders” due to which their financial performance is impacted.”
1.4 Research Aim and Objectives
In order to conduct a research, the most essential task for researchers is to formulate proper
aims and objectives. The overall result and success of a project depends on both of these aspects.
It provides guidelines to research-team related to identify issues and address the main objectives
of research. In this regard, main aim and objective of present case study which is based on
Corporate Governance of M&S, are described as beneath:
Research Aim
“To investigate the impact of stakeholder relationship on financial performance of
business- A study on Marks and Spencer”
Research Objectives
 To identify role of corporate governance policies and practices in an organization
 To determine relationship between stakeholder and financial performance of business
 To recommend how corporate governance policies can be implemented within Marks and
Spencer

1.5 Research Question
 What is the role of corporate governance, policies and practices in an organization?
 What is the relationship between stakeholder and financial performance of business?
 How corporate governance policies can be implemented within Marks and Spencer?
1.6 Structure of research
This part describes overall structure of an assignment under which a research is going to be
carried out. It provides actions which are needed to be completed by project-makers for
improving and increasing effectiveness of a research (Bainbridge, 2016). Therefore, in this
regard, structure of present research can be described in following manner:-
Chapter 1: Introduction- This is the most important part of research which includes
overview of project and organisation which is undertaken for the same. It entails main purpose
behind conducting an investigation. In addition to this, it also consists specific aims and
objectives, on which entire research is based.
Chapter 2: Literature review- Under this part, secondary sources are taken to analyse the
perception of different authors and experts, who have already conduct research on same topic.
For this purpose, articles, books and journals have been accessed to collect relevant information
on chosen case study.
Chapter 3: Research Methodology- This part of research describes methodologies by
which project-makers can gather adequate amount of data (Clark, Feiner and Viehs, 2015). It
includes primary and secondary sources which helps in collecting specific information in precise
manner.
Chapter 4: Critical Data Analysis- It shows a critical discussion on information which has
been gathered under primary and secondary research. Here, discussion is made through view
point and perception of different authors in critical manner.
Chapter 5: Recommendation and Action Plan- Here, specific suggestions are provided
under recommendation part to a company, for resolving its issues. It provides ways by which a
corporation like M&S can enhance its reputation and improve its corporate governance policies.
Furthermore, it also highlights action plan which is used to conduct entire activities of chosen
research.

CHAPTER 2: LITERATURE REVIEW
2.1 Role of corporate governance policies and practices
According to Bainbridge, (2016) corporate governance is the most significantly visited
themes in the organizations. It has also managed and control the overall accountability of
organization in proper manner. An effective corporate governance has been required by the
directors that could be maintained the procedure and practices of companies in proper manner. It
encompasses that the executive members reporting to the broad members and aware about the
daily operation that performed in the organization. On the other hand, Accountability is an
essential factor for corporate governance and it helps in dividing top level and lower level
executive in the firm. As a result, it helps in maintaining the entire system of checks and
balances in effective manner. As per the view of Bainbridge, (2016) all the members of
executive board will be having ethical duty in way of making decision which will be based on
best interest of stockholders. However, corporation will be having ethical duty in protecting
social welfare of others including all stakeholders and greater community as well. Main policies
and practices developed by Corporate Governance of Marks and Spencer is to maintain a proper
balance between different stakeholders within and outside the company such as various
shareholders, management, customers, suppliers, distributors etc., Other than this, CG of the firm
has maintained Code of Ethics in their policies so that set behaviour while dealing with valuable
or other customers can be maintained. This will further aid in operating business in an effective
manner.
Most of the people believes that companies whether it is large, medium or small establish
their business with the help of many stakeholders so that maximum benefits can be availed.
Apart from this, reality is that for operating business in an effective manner good governance
plays a crucial role because its positive impact can be seen in the performance of an individual
working in an organisation. “Corporate Governance” is single headedly a very wider concept
and it further plays a crucial role in making policies and practices. Such as it helps organisation
in making laws based on corporate legislation, securities regulators, decisions of courts,
securities laws and policies etc., As a result, following laws will help company with numerous
benefits such as high performance of Board of Directors, thus, it is prime role of managers and
people included in Corporate Governance to better managed risks, strong internal controls with
accountable management, well monitored and better performance.

In terms of best practice with the help of Corporate Governance, if it is followed
effectively than board of directors can identify the gaps in context with ideal qualities employees
have with them. Other than this, better training can be provided existing skills and knowledge of
employees can be enhanced (Flammer, 2015). Along with this, through Corporate Governance,
certain roles and responsibilities of an individual are defined such as role of sub-group of
directors’ committee will include functions like compensation, nominating, audit etc., Another
practices which can be undertaken in Corporate Governance is that it helps in evaluating
performance so that effective decisions regarding compensation that is required to be given can
be made. While operating business there can be many risk that can face by companies so,
Corporate Governance helps in making effective risk management plan with the help of
establishing strategic leadership. Thus, managers of Marks and Spencer are accountable for
managing risk and monitoring the same so that effective decision can be made. Along with this,
directors have an overview and show their responsibility of determining short-term as well as
long-term goals and possible risk that can be faced by companies.
2.2 Relationship between stakeholder and financial performance of business
According to de França, Pereira and Vieira, (2018) the organization is also planning a
strategy for acting different role on internally and also select the suitable strategy for growth or
development. It is a process and task that involves facts and figure at their workplace for
executing stratagem or support to the employee related their job. Sometimes, the organization is
planning for strategy related the formulation but its fail for implementing the changes in
operations (Gregory and Whittaker, 2013). Stakeholders are the most important part of any
organisation as they are having power to impact decision making process within company and
ultimately impacting financial performance as well. The relationship of stakeholders is unique in
their ability to help firms to get their performance better.
Stakeholders plays a crucial role in increasing wealth and its capacity of an organisation.
This can further be classified into two categories internal: which includes employees, investors
etc., whereas, external stakeholders include customers. It is important that company maintains
better relations with both stakeholders because they are the ultimate source of generating
revenues and money for an organisation. For example: if Marks and Spencer wants to increase
their profit than it is important that firm provide services and facilities according to needs and
requirements of consumers. For instance: company must see benchmark of rival companies so

that improve products can be delivered. Therefore, this will aid company in attracting large
number of customers in a limited time frame. As a result, maximum profits can be gained by an
organisation. But before, Marks and Spencer has to think about issues which firm is facing like
maintaining better relation with it stakeholders and influencing them with new strategies so as to
pull attention of the same.
Furthermore, in relation with internal stakeholders Marks and Spencer must think of
providing effective training and development programme because it has an inter-relation with
performance of company (Hannington, 2016). If there will be skilled employees than they will be
able to provide excellent services because of which attracting customers will be easier. As a
result, it will aid in increasing sales and revenues as compared with previous years. Therefore,
companies who take much care and show responsibility towards stakeholders always increase
profit level of business. Thus, it is crucial that in order to increase financial performance
company must fulfil all the need and requirements of stakeholders. Henceforth, attaining goals
and objectives will become easier. Along with this, company will be able to establish positive
reputation at market area.
2.3 Ways by which Corporate governance policies can be implemented within Marks and
Spencer
According to Bell, Bryman and Harley, (2018) an organization must be accurately
collecting data in the form of report to identify their profits or losses. It makes sure to figure out
that those who invest money in the organization. Sometimes, the lack of transparency exposes
the fines from the regulatory agencies in the organization. Issues and problem arises when
corporate governance fails to perform it activities in an effective manner. For instance: with
Marks and Spencer, Stakeholders are pulling their hand from the company and this is happening
because of re-structuring of M&S as a result, firm ultimately faced huge loss. Therefore, in
context with Marks and Spencer, there are many ways through which Corporate Governance
policies can be implemented in an effective manner are explained below:
Appointment of Competent Board Members: It takes time in order to identify skilled
and knowledgeable persons who can be appointed as Board members. But company cannot fully
rely on this instead they must maintain a proper balance between people who are qualified
enough and who know organisation along with its activities. For Marks and Spencer, it is crucial
for board of members to understand the requirement of board so that skills that are required can

be identified and work can be done accordingly (Robson and Farquhar, 2014). Thus, whosoever
is being appointed must be aware of interpersonal skills acquired within himself/herself as it will
help in improving overall board performance. They will be the person who can assist Marks and
Spencer in implementing Corporate Governance policies such as Code of Ethics. Because there
is a saying that is rules and regulations are being applied by seniors or Board of directors that it
becomes mandatory for employees to follow the same. Therefore, it is important for Marks and
Spencer to build a strong Board of Directors who are competent enough in implementing and
observing the rules and regulations or Code of Ethics.
Streamlining the process: Marks and Spencer, has established its business with an
agenda of carrying out various activities. Therefore, with the help of this process company can
set down some kinds of objectives which can further be accomplished for achieving future goals.
Streamlining process can be used for implementing policies. As with a single document,
employees can get to know about things which are required to be followed by them so that better
working environment can be maintained.
Prioritise Risk Management: In business there are many risk that can be faced by a
company so it is important that proper strategies and plans are made because risk don't come
overnight. Risk are not only limited to compliance risk because they are of many types. For
example: Marks and Spencer is going through financial problem due to least interest of
stakeholders from the company so, it is important that management of M&S with the help of
effective strategy managers of the firm must try to grab attention of maximum number of
customers. Other than this, to manage risk, Marks and Spencer can maintain a proper balance
between various stakeholders so that working can be conducted on a smooth go.
Therefore, with the help of some above mentioned points Marks and Spencer can think of
implementing different kinds of policies in an effective manner.

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is a concept that is used by researcher for collecting, analysing
and managing the data in appropriate manner. It will be helpful for selecting the suitable
information that applicable in research areas.
Primary data- The researcher will use the primary data collection method to collect the
data through Questionnaire, conducting interviews etc. This will help in gathering fresh data and
information and analysing them through this it will be easy for researcher to attain aims and
objectives. Therefore, it can be said that it is a methodology which further used in order to gather
data and information that have not been used by any other researcher while doing their research.
Thus, it is very applicable in order to have in depth knowledge regarding a specific topic in
which investigator wants to master. Henceforth, main advantage of primary research is to come
up to a valid conclusion by searching for an effective solution. In relation with the present
research, company will get to know about the issues that firm is facing while operating their
business and gaining competitive advancement as well. Furthermore, different kinds of tools and
technologies is going to be used such as questionnaire, online and offline surveys, interviews and
many more. Thus, some of them are explained below for better understanding:
Interviews (telephonic or face-to-face): This is one of the qualitative method of data
collection. Therefore, it is used in order to gather information from large number of population
either by telephonic conversation or face-to-face interviews. Furthermore, so as to do the same
researcher can used. This kind of research methodology generally depends upon the capability
of researcher and the way he/she influence respondents for extracting data and information.
Therefore, in order to conduct this interview conversation, it is important that open end questions
are being developed which can only last for around 30 minutes. Thus, it can be said that
interview method if very effective when researcher wants to gather information in shorter period
of time. In relation with interview it is required that effective communication method is being
used because it will enable researcher in gathering appropriated information or responses from
respondents.
Online Surveys: With the change in course of time, many new methods had evolved and
online survey is one of them. In this, basically information are collected through mail, internet,
social media sites etc., so, generally researcher develops open end questions provided with few
options so that respondent can choose according to their choices and preferences. Therefore, in

this process once respondents gets the questions, answer them and sent it back to researcher. This
helps investigator in gathering information without going to respondent personally. But it has
some disadvantage as well because there might be a possibility that people may reject to give
answers of questionnaires.
Questionnaire: Among all, this is considered as the best method of collecting data and
information from respondents by formulating a questionnaire. Thus, questions need to be in a
structured manner starting with the understanding and ending with if any recommendation
researcher wants to provide on a given topic. In this all data and information are gathered in a
speculated time frame.
In relation with this research, project managers of Marks and Spencer will make use of
questionnaire by providing well structured questionnaire related to research topics. Along with
this, sample size which will be taken for gathering data is around 10 through random sampling.
Secondary data- This is an another method through which data and information are
collected from secondary sources such as books, journals, articles etc., This will give insight to
researcher about the topic moreover, by interpreting case studies relevant information will be
collected. For present study, researcher will use both methods to gather data.
Sampling- Sampling will be explained as specific principle that used for selecting the
particular members in the population. Researcher will use the 20 employees of M&S to target
population and researcher will have no choice of particular study within the population that reach
to their conclusion. The researcher will use simple random technique that gives chance of
members participating in the research study.
Analyses method- Data analysis method will help for transforming, cleansing and
modelling the data with discovering the specific goals and achievements. The researcher will use
the thematic data analysis of qualitative method for identifying the multiple approaches, facts
and figures etc.
Design- Research design will general plan about the answer in the research questions. It
included research method and strategies for analysing and collecting the data in proper manner.
It will be divided into two ways such as Exploratory and conclusive.
For further research, Exploratory research will use for determine the nature and problem
of research. It will explore the research topic with different level of depths. It will help for

researcher determining the design, methodology and data collections. Exploratory method will
generally study about the qualitative information and interpretation related to the subject.
Access and Ethics- Ethical consideration will be specified about the important part of
research.
 The researcher participants will not be subjected to harm the ethical in any ways.
 It will respect to the dignity of participants in the research subject or topic.
 The researcher should always maintain the privacy and protection of participants and
members.
 It ensures that the level of confidentiality maintain in the research data and information.
Questionnaire
Name:
Age:
Gender:
Q1) Do you think relationship of a company with its stakeholders’ impact on its financial
performance?
a) Yes
b) No
Q2) What is the main role of corporate governance within an organization?
a) Run business in ethical manner
b) Reduce chance of conflict of interest
c) Build effective relationship with stakeholder
Q3) What is the most effective CG practices of M&S?
a) Build relationship with stakeholders to improve financial performance
b) Develop strong brand image at international marketplace
c) Increase productivity of workers to gain competitive advancement
Q4) What is the main reason behind failure of corporate governance of M&S?
a) A move to restructure
b) Ineffective plans for international expansion
c) Inappropriate human resource allocation
Q5) According to you, which strategy helps in improving CG practices of M&S?
a) Prioritize risk management

b) Understand the concept of human resource allocation
c) Increase diversity
Q6) What are the main factors M&S needs to concern while developing corporate
governance?
a) Internal capabilities of business
b) Competitive strategies
c) Corporate goals
Q7) Which is the most effective CG practices that M&S needs to implement in its
business?
a) Importance of non-executive directors on the board
b) Increase percentage of non-British directors in board
c) Increase number of board meetings
Q8) Do you think M&S gains more competitive advantage as compared to its
competitors?
a) Yes
b) No
Q9) Provide recommendation for M&S in improving its CG practices for further
expansion of business?

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Online
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strategic-update-restructuring>.

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