Corporate Strategy, Governance, and CSR at Marks and Spencer Report

This report examines the corporate strategy and governance of Marks and Spencer, focusing on the impact of corporate governance on the company's growth and the effects of Corporate Social Responsibility (CSR) on customer satisfaction and brand reputation. The report explores the various corporate social initiatives undertaken by Marks and Spencer, such as donations to charitable organizations, support for local communities, and commitment to environmental sustainability. It analyzes the company's approach to stakeholder engagement, including consumers, employees, suppliers, and the board of directors, and how these relationships contribute to the company's long-term success. The study uses literature review and critical analysis to assess the effectiveness of these initiatives, providing recommendations for improvement and a strategic action plan. This includes an exploration of Marks and Spencer's commitment to ethical practices, transparency, and accountability, and how these principles shape its overall corporate governance structure. The report also delves into the company's online business operations and the role of effective leadership in driving continuous improvement and maintaining customer trust.

CORPORATE STRATEGY AND
GOVERNANCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Aims and objectives...............................................................................................................3
Rationale of study...................................................................................................................3
LITERATURE REVIEW................................................................................................................1
DISCUSSION..................................................................................................................................4
CRITICAL REVIEW.......................................................................................................................5
RECOMMENDATIONS AND ACTION PLAN............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Corporate strategy and governance consists of procedures that are designed to structure
authorization, balance social control to provide accountability to shareholders. It includes
balancing profitability with sustainability. Recognition of external stakeholders is important
component of corporate governance which includes consumer, suppliers, vendors and group of
all those individuals who fall outside the internal working of an organisation (Klettner, Clarke
and Boersma, 2014). Building relationships with these people is the most concerned part of
company as they help increasing value on business and develop ability of organisation to
produce high quality and fairly priced product, which also helps in increasing customer
satisfaction.
Corporate governance structure also lays a focus on internal stake holders such as
workers, board of directors and administration. Building relationship with these people is
important for long term success and growth of company. It also provides accountability to both
external and internal stake holders; it includes management of obligation of individual stake
holder and company.
Corporal Social Responsibility is one of the methods of corporate governance, which
includes social and legal obligation towards environment where business is operating. CSR is
beneficial for both society and environment and company itself (McCahery, Sautner and Starks,
2016). It helps company in broadening relationship between individual and cooperation, boost
motivation and helps workers and employers to become more connected with each other. It also
helps in building relationship with consumers, stake holders, suppliers and board of management
in a company.
Corporate social initiatives of company include donations to charitable organisation,
organising workshops, seminars or exhibitions to serve environment, enterprise funded advocacy
campaigns, donations to charity organisations and providing goods on sale, funding any program
related to some disease or disorder to help people in fighting them, charity done by company to
behaviour change programs etc. All these initiatives help company in creating good status for
them and also helps in increasing their brand value (Mason and Simmons, 2014).
Many consumers have a belief that apart from making Profit Company should also be
engaged in social activities, which help arrangement in creating consumer loyalty and gaining
trust of customers, which affect business growth and also help governance in expanding their
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market. Company can also know more about consumer regarding their beliefs, taste, preferences
and liking. CSR also includes environment management, economic sustainability, authorised
stake holders, labour management and their working condition, communal group relations, basic
human rights, gender equality and improved reputation of organisation (Marks and Spencer
Corporate Social Responsibility, 2017).
Marks and Spencer company operates business in United Kingdom and have more than
one thousand outlets across country. Business entity follows corporate governance to fulfil the
expectation of its customer and deliver long term benefit to stake holders, co-workers and
environment in which they operate (Formentini and Taticchi, 2016). Company is also engaged in
following Corporate Social Responsibility towards environment in which they operate which
provide company with benefits like competitive advantage, such as increased access to capital
and markets, high growth in sales and profit, less expenditure in operation costs, increase in
productivity and efficiency of employees, strong human resource base, increase in quality and
features of products.
Marks and Spencer also operates business online and believed that an effective
governance are realised through leadership and motivation as working together ensures high
quality decision making in all areas concerning strategy, performance, responsibility and
accountability. These actions performed by company are sustained and controlled, which drives a
culture of continuous improvement in processes and performance. Corporate governance has also
helped company in building trust, which is developed by doing right things in right place and
ways (Filatotchev and Nakajima, 2014.). It has helped them in creating clear set of rules and
regulations in which stakeholders, board management and directors have aligned incentives
which has led to organisation success.
Marks and Spencer have always been responsible towards their consumers, employees,
suppliers and environment by taking care of every sensitive issue and doing charity for society,
problems related to weather change, utilising waste materials which has helped them in build a
good reputation and image for themselves. CSR activities like donation to charitable
organisations are done through company’s local store. They are also involved in donating used
clothes and surplus to charity new life which funds medical research, support and awareness
campaign of nurse and preparing equipment for disabled and handicapped child.
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Marks and Spencer also donate extra produced goods or garments as goodwill exchange
to local charity stores or shelters, which has helped in building goodwill for them across country
(Too and Weaver, 2014). They are also engaged in supporting their customers in every possible
way from recovering through disaster or serious climate change in country. They are also
engaged in an effective management of resources, which includes reducing waste products, use
of plastic carry bags and making sure that consumers throw rubbish in proper place without
sending it to landfill.
Organisation is also engaged in embracing all cultures, nationalities, races and religions
and also they do not support any country’s political or social body, which can create chaos in an
environment and also this strategy is applied to all products. They are also engaged in building
customer relationship by providing with quality products and services, which has helped them
to expand their market to increase sales across country (Amran, Lee and Devi, 2014).
Aims and objectives
 To explore the impact of corporate governance on growth of Marks and Spencer
 To investigate effect of corporate social responsibility on customer satisfaction
 To explore corporate social initiatives taken by Marks and Spencer
 To analyse effects of Corporate Social Responsibility on firm’s reputation
Rationale of study
Mark and Spencer has been involved in Corporate Social Responsibility to build relations
with customers but currently is facing a problem as they have lost core engagement with
consumers as competitors and substitutes are increasing. Organisation is aware of risk and
danger and engaged in developing products according to needs and wants of consumers. They
are also facing problems related to management of external and internal stake holders, which
helps company in creating quality and unique products (Ayuso and et.al., 2014.). For managing
them, a company is taking initiatives like allowing flow of informal communication would lead
to develop friendly relationship between them.
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LITERATURE REVIEW
Impact of corporate governance on growth of Marks and Spencer
According to (Chan, Watson and Woodliff, 2014). Corporate governance helps in
managing and directing employees, board of management and stakeholders of company. It helps
them in balancing individual, societal, economic as well as financial targets and objectives. They
also use it as a mechanism to create interaction between shareholders, suppliers and senior
administration of company which helps in shaping corporate performance and efficiency of
individual employees which also helps organisation in achieving business goals and targets.
However, Glass, Cook and Ingersoll, has analysed that Corporate governance also helps
company to make strategic decision and gives them ultimate authority and responsibility to
perform task and achieve their predetermined objectives. It has helped company in growing their
share in the market. It also includes transparency in transaction with investors, which ensures
strong and balanced economic development and also helps in creating good reputation in market.
It has also helped company in reducing capital costs, which makes them to save financial
resources for better development of product, which can satisfy consumer needs and wants. It also
assists company in enhancing leadership skill in workers, which has helped them to increase
their confidence and motivational level (Mason and Simmons, 2014). It also boosts morale of
employees to perform better.
Company has a policy to involve shareholders and employees in decision making process
of organization, which has helped them in gaining new and innovative ideas purposed by
members that has led to organisation growth and success. Also, good governance for them
includes better reward system whether monetary or non-monetary for workers, which helps them
in retraining talented employees in an organisation and has helped company in expanding their
market share across world. Company is also engaged in preparing products, which do not harm
religious and cultural sentiments of consumers, which will help them in building relationship
with them.
Creation of profit is main aim of company but for accomplishing this objective an
organisation also has to fulfil the interest of shareholders. Enterprise is involved in providing
fair return to external and internal stake holders those who has helped them in creating image of
good brand and has also increased sale of their product. It also helps its suppliers to cut cost,
increase their efficiency, and perform task ethically which help company in attracting more
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consumer and also organisation is involved in donating money and goods in charitable
organisation, extra production to small shops and shelters, which helped them in growing
(Formentini and Taticchi, 2016).
Effect of Corporate Social Responsibility on customer satisfaction
Corporate Social Responsibility towards consumer includes understanding of their needs
and creating products according to them. Organisation is involved in developing innovative and
unique goods for consumer to satisfy their demands, which has helped business entity in
increasing their sale of products. However, company is involved in building strong relationship
and building trust with customers so that they purchase their goods and also encourages more
people to buy commodity.
Most important concern for company is to gain customer satisfaction. From Corporate
Social Responsibility, company helps consumer to improve their living standards by delivering
high quality as well as treating customers equally in all aspects of business interaction.
Organisation must meet their expectation by delivering right products at proper time and place
(Too and Weaver, 2014). However, satisfaction can also be achieved by listening to complain
and queries of consumers, which are bothering them. Hearing feedbacks of individuals can help
organisation to increase trust and helps in creating consumer loyalty towards products.
Organisation should be engaged in fair and transparent dealing with people, they should not use
unfair practices and fraud methods to increase revenue, which can deteriorate their growth and
also creates a negative image in eyes of consumer.
For gaining customer satisfaction, company should produce and deliver product on time
and also should improve quality of goods produced by them. Suppliers should provide
organisation with good quality raw material and goods for producing the best quality
commodities and services. Consumer has diverse buying preferences but majority of them will
choose quality goods over non branded one and also it will help company in increasing sale of
their goods.
However, company should also focus on purchasing power of individuals, if prices are
set only to earn large revenue, people would buy other substitutes' product with same quality but
at lower prices. Customers buy products only when they think it can benefit them, so
organisation should meet expectations of people and design products, which creates value for
people. This will also help company to retain existing consumers and develop a brand image for
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their goods. They should also be provided with after sales services which is important for
business growth. Making sure that organisation is in touch with customer, which enables firm to
gain competitive advantage. Individual’s feedback is the most important for company as by this
they would be able to know about their strength and weaknesses.
Corporate social initiatives taken by Marks and Spencer
According to Ayuso Company has always taken responsibility to serve consumers,
workers, suppliers, partners and local groups, which shows their core value to individuals like
quality service, innovation and trust. Organisation has been engaged in many corporate activities,
which has led to growth of company and building good image of institution. They have taken
initiatives such as donating money or goods to charitable organisation. Enterprise is indulged in
distributing returned cloth and business surplus to small shops which has also helped them in
creating good brand value.
Company is also engaged in funding charitable organisation run for partially disabled or
terminally ill children. They donate their extra food to NGO's running for children and funding
those individuals who have been suffered due to natural calamities like flood, draught disaster
etc. (Glass, Cook and Ingersoll, 2016). However, organisation has also been a part of a five year
eco plans, which aims to help consumers and suppliers in reducing emissions. It includes
producing of low carbon products and services, which can help an individual to reduce energy in
their homes. This can also make them cut their cost related to energy supply.
Organisation has also taken initiatives like cut short the use of plastic poly bags to make
world a better place to live and ensuring that consumer dispose their clothing without sending it
to landfill. Making use of products, which can be recycled and ensuring that company use
recycled plastic to make various products related to home or clothing (Amran, Lee and Devi
2014). Company is also provides healthy work place to employees, which has supported them to
retain existing talented workers. They work with an aim of not hurting any religious or cultural
sentiments of workers and follows a relationship of transparency with them.
Effect of Corporate Social Responsibility in building good reputation
According to Mason and Simmons Corporate Social Responsibility includes where
company can explore market to survive in long term success, policies and practices through
which it is operating. However, organisation can build good image and reputation by facilitating
CSR activities. Organisation is engaged in providing donations to many charitable trusts,
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hospitals, NGO’s, or funding organisation, which is involved in treating disabled children that
has helped company in creating its brand value and positive image in eyes of consumer. To build
corporate brand image they need to provide quality service and product to customers at right
place and appropriate time (Chan, Watson and Woodliff, 2014).
Companies who are engaged in developing products should take care of consumer needs
and preferences. Products should be designed on basis of wants, likings, and demands of
customers which will help them in building good image in the market and as a result their market
share will also increase. Goods should be developed keeping in mind culture, religious
sentiments of consumer, no one should be hurt by use of products. To build image of popular
brand, an organisation should also provide their workers with safe and healthy working condition
where employees have an active participation in decision making process of company, which
would result in boosting their morale, increase in motivation level and will also help organisation
in retaining them. Less employee turnover will assist in building a good corporate image of
company in market.
According to Glass, Cook and Ingersoll, for building brand Image Company should be
indulged in listening to complain and queries of customers. Individual’s feedback is very
necessary for organisation to know about strength and weaknesses of its product. Delivering
them quality products will help in gaining customer loyalty and sale of goods will also increase
(Too and Weaver, 2014). Transaction between employers and employees, consumers and
suppliers should be done fairly, there should be no involvement of unethical practices by
organisation, which will help them in increasing brand value of their products and will also
reduce worker turnover, which would result in higher and better revenue.
DISCUSSION
Secondary and primary research undertaken to analyse issues and problems
Primary research of the company can specify all the information related to consumers and
potential customers. Data related to them is collected by interviews, which can be telephonic or
personal, surveys, questionnaires, visitors to competitors’ location etc. These type of information
are generally open ended and allows long interviews which involves small group of people. Data
collected is specific in nature. This type of research requires much time and generally includes
high cost as it involves personal interaction with other people.
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Secondary research is basically that information, which has already been collected,
gathered, unionised and published by specific companies. It includes data collected by
government authorities, trade unions or other business in dynamic and uncertain environment.
This information can also be obtained by using published journals, magazines, newspapers,
organisation publications etc. (Formentini and Taticchi, 2016). This type of data is easy to collect
and less expensive in comparison to primary research. Information can also be collected about
organisation through internet, or through use of authentic websites.
QUESTIONNAIRE
Q1. Do applicable corporate governance principles are used in companies’ act? Are they easily
available to shareholders and investors?
 Yes
 No
Q2. Is company continuously involved in CSR activities and does it benefited to employees,
stakeholders and suppliers?
 Yes
 No
Q3. Does CSR activities has improved organisations corporate image and given them a status
and symbol?
 Yes
 No
Q4. Do board of management have role to play in corporate governance? And how does it help
in differ them from other organisations.
 Yes
 No
Q5. Has industry clearly defined its dividend policy?
 Yes
 No
Q6. Do company have implied mechanism for resolving conflicts and misunderstandings
between employers, employee, stakeholders, suppliers etc.?
 Yes
 No
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Q7. Does your organisation is involved in providing ethic and corporate training to workers?
 Yes
 No
Q8. Do company work on its vision and mission related to corporate strategy and governance?
 Yes
 No
Theme-1 Corporate governance and principles
Do applicable corporate governance principles are used in
companies’ act? Are they easily available to shareholders and
investors? Frequency
Yes 13
No 2
Yes
No
Interpretation: From the above pie chart, it has been analysed that 13 employees agrees that
corporate governance principles are used by an organisation and are easily accessible to
shareholders and investors, who helps in retaining and attracting new funders. It has also been
seen that 2 workers are not agreed on above statement. Reasons for their disagreement may be
different from each other.
Theme-2 Companies involvement in CSR activities
Does company is continuously involved in CSR activities Frequency
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and has it provide benefits to employees, stakeholders
and suppliers?
Yes 10
No 5
Yes
No
Interpretation: From the above data analysis chart, it has been interpreted that 10 workers of
Marks and Spencer agrees with the fact that company has been continuously involved in
activities related to corporate social strategy, which has also helped in providing benefits to
shareholders, employees and suppliers whereas 5 workers also disagreed with above statement.
(Too and Weaver, 2014).
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