Analysis of Stakeholder Engagement Strategies: M&S & Sainsbury's

This report provides an in-depth analysis of stakeholder engagement, focusing on Marks & Spencer (M&S) and Sainsbury's. It begins with an executive summary and introduction to stakeholder theory, exploring its significance for businesses and the importance of stakeholder participation. The report details stakeholder determination, engagement strategies, and the processes both companies employ. It then presents a comparative evaluation of M&S and Sainsbury's stakeholder engagement practices, considering their sustainability plans and approaches to communication with stakeholders like customers, employees, and investors. The report highlights the merits and challenges of stakeholder engagement, including standards and best practices. The report also includes a detailed discussion of the methods that M&S and Sainsbury's use to engage with their stakeholders. Finally, the report concludes with an assessment of the effectiveness of their engagement strategies and the overall application of stakeholder theory in a business context.

Marks & Spencer and
Sainsbury’s (engagement with
its stakeholders)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Executive summary ....................................................................................................................3
Introduction ................................................................................................................................3
Stakeholder theory......................................................................................................................4
stakeholder determination and engagement ...............................................................................6
Explaining stakeholder engagement of Marks and Spencer 300 words.....................................8
Explaining stakeholder engagement of Sainsbury's ...................................................................9
Evaluation of stakeholders engagement of both the firms .......................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Executive summary
The report will throws a deeper insights towards the stakeholder theory and its
significance for the companies in running their business operations smoothly. The study will
present a detailed analysis on the ways that an enterprise should adopt for gaining their
stakeholders participation in their business affairs and holdings. From the study, researcher can
gain a deep knowledge regarding stakeholder engagement and also the strategies that M&S and
Sainsbury's has adopted in terms of their stakeholders. Furthermore, report includes highlights in
relation to procedure that is been followed in engaging stakeholders within the activities of the
business so that decisions and operations can be taken or performed as per the desire or
expectation of the consumers, employees, government, community, investors etc. An evaluation
will also be made relating to the sustainability plan of both the companies that includes all the
factors which have to be counted for achieving more and more stakeholders interest in the
specific project within which their investment has been made. An investigator, by studying this
report will develop an understanding regarding the stakeholders theory and its application in the
business state.
Introduction
Stakeholder engagement refer to the process by which an enterprise involves people who
might be affected by decisions that the company makes or influences execution of their
decisions. Stakeholder engagement considered as the formal strategy that is developed in
communicating with the stakeholders of the project for the purpose of achieving support in
completion of the project in terms of funding. This strategy is been created in the beginning and
updated on a frequent basis as the communication needs of the stakeholder changes. The report is
based on Marks and Spencer, a retailer within United Kingdom had around 1380 stores across
the world ((Herremans, Nazari and Mahmoudian, 2016)). This company sells lingerie, beauty
products, kidswear and women-wear serving the customers by around 300 full line outlets and
has an online website named as M&S.com. The study also reports for Sainsbury's counted as
largest chain of the supermarkets within UK with having a 15.3% share of supermarket segment.
It functions as the hypermarket, convenience shop, superstore etc. Furthermore, the study throws
a deeper insights towards the stakeholder theory, the ways in which the company engages with
its stakeholders. Moreover, the evaluation and comparison has been made regarding the
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stakeholder engagement in between both the corporations (Barrett, Oborn and Orlikowski, 2016).
The report also provides for importance of the stakeholder management within an organization
and different strategies adopted by an entity towards engaging the stakeholder in the business
affairs and the decisions with respect to a particular project.
Stakeholder theory
An organization have the obligation not only towards a single group of constituents who
are been affected by the business activities of the firm. Group of the stakeholders are seen as
diverse who are having their own duties and an obligation in respect of their stakeholders.
As per Friedman, it has been argued that, only human are having moral responsibility in
terms of their actions and stated that it is the main responsibility of the mangers for acting solely
in interest of the shareholders. However, on the other side, Freeman reviewed that mangers are
having a fiduciary responsibility so they must have to integrate an interest of the other
stakeholders as well.
The two main model of stakeholder theory involves stakeholder and Network model
where the stakeholder model indicates companies having the responsibility towards various
parties that could affect and can be highly affected by the activities. Diverse model considers role
of the stakeholders that are associated with the company.
Stakeholders attributes involves power, legitimacy and urgency through which it could
exert an influence on an enterprise, conforms to norms, belief and the values of wider
community. Urgency attribute represents stakeholder demand needs an immediate attention from
an entity.
There had been seen critical changes in the business affairs since stakeholder theory had
came into the market. Stakeholders are been defined as an individuals, organizations, groups that
are having an interest within the processes and an outcome of an entity on which the company is
highly dependent in achieving its goals. They major stakeholders includes managers, employees,
customers, suppliers, investors etc. Stakeholders theory reflects a practical, effective, ethical and
an efficient way in managing the firm in highly turbulent and the complex environment. It is
counted as the practical theory as all the firms needs to manage their stakeholder in an efficient
way as the stakeholders are been treated well then they will be showing a positive attitude and a
behaviour towards an enterprise like sharing of the valuable information, providing incentives,

facilitating better financial profits , buying more and more stock etc. It is said to be effective
because it directly harnesses an energy of the stakeholders towards attaining of an organizational
goals.
This theory is considered as most useful in the complex and a turbulent environment
because an enterprise that manages fro providing better information to the stakeholders can
achieve competitive edge against their competitors in the overall market. This theory indicates
managing the business conduct in the best interest of the stakeholders and their well-being. The
most critical element of the stakeholder theory is that it is very comprehensive in the approach
that is it indicates that treating all the stakeholders with the fairness, integrity and honesty. An
organization that aims for managing the stakeholders allocates more and more resources fro
satisfying needs and demands of their stakeholders by retaining their participation in the
productive activities of an enterprise.
On contrary to it, development of the stakeholder theory leads the business to be
successful as it creates value for all of its stakeholders by creating effective strategy that results
in wealth maximisation. However, emphasizing only towards the shareholders, management of
the business operations or processes can be disrupted and also creates a conflict of interest
among the stakeholders. There are many limitation in attaining the satisfaction of each and every
stakeholders because the personal objectives of various stakeholders will get overlap.
Furthermore, shortcomings will also taken into account in identifying stakeholders of an entity as
identification is entirely subjected to business conduct and hence the obligations of an enterprise
could not be full determined. Moreover, execution of the stakeholder theory in managerial
capture is considered as the another major limitation. This could be defined that at the time when
amount of the stakeholder inclusion could be controlled by the management through assembling
the information regarding the firm for developing the corporate strategy in advance instead of
being transparent towards the community.
stakeholder determination and engagement
Stakeholder engagement referred as the process that is been used by the firm for engaging
the relevant stakeholders for the clear purpose in achieving the agreed results or outcome. It is
been recognized as mechanism of fundamental accountability as it oblige an enterprise for
involving the stakeholders in determining, responding, understanding to the sustainability
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concerns and the issues for reporting to the stakeholders for the making decisions, performance
and action.
An organization adopts different ways for communicating or interacting with their stakeholders
that are as follows- Scheduling meeting- Stakeholder meeting is counted as most common method of
interaction as it saves time fro conveying message to large people. In meeting several
ways are been adopted in communicating message is powerpoint, software solutions,
prezi etc. Meeting helps in avoiding the misinterpretation issues with that of the
stakeholders all are present under one roof. Sending newsletter- Using collaboration platform and Intranet, company could
proactively defines a newsletter that is to be sent to the stakeholders within the specific
time periods. Through this even those stakeholders can also be engaged who cannot
involved directly with respect to the project.
 Scheduling conference call- It is also counted as most common situations where issue is
very urgent for the meeting. Therefore, in case there is an obstacle which is to be resolved
on an immediate basis, conference call can be scheduled which could be arranged tin
matter of hours or the minutes.
Process of stakeholder engagement- Engagement strategy- In the first step, vision and ambition level is been set for the future
engagement and in reviewing the past engagements. Stakeholder Mapping- Defining criteria in determining and prioritizing the stakeholders
and also in selecting the engagement mechanism. Preparation- Emphasizing on the long run goals in driving an approach, determining
logistics for engagement and setting rules. Engagement- Conducting engagement itself, by ensuring an equitable contribution to
stakeholder and in mitigating the tension at the time of remaining focused on the
priorities.

 Action plan- Identifying opportunities through feedback, determining actions, planning
steps, revisiting goals for future management and follow-up.
Merits and the challenges stakeholder engagement
Benefits
It helps in ensuring that projects plans are considered as the reflection of real priorities
and the needs. Stakeholders participation develops trust environment by allowing voices of
stakeholders to be heard and the issues that are to be known. It assist in knowing the opinion of
the stakeholders and seeking for increasing trust level within the relationships (Sierra‐García,
Zorio‐Grima and García‐Benau, 2015). It promotes transparency within actions of project and in
ensuring that projects is been held accountable fro their actions.
The major challenges that are involved in stakeholder engagement is time, finding out the
right people, training and the resources, balancing various inputs in the systematic review
procedure.
Stakeholder engagement standards
The standards includes defining the scope and must have an agreed process of decision
making by focusing on the issues material towards an enterprise and stakeholders (Esmail,
Moore and Rein, 2015). Creating several opportunities for the dialogue that is integral to the
organizational governance, transparent, flexible, timely and in creating a value for both
companies and their stakeholders.
Explaining stakeholder engagement of Marks and Spencer 300 words
In order to gain stakeholder participation Marks and Spencer provides for transparency
by understanding and analysing the expectations of their stakeholders, identifying the major
issues that are been faced by its stakeholder and determining opportunities for improving
communication and engagement around the transparency (Heath, 2016). Marks and Spencer
stakeholder analysis provided M&S with necessary insights in relation to the improvements and
in helping for integrating transparency in their overall plan A priorities and the strategy. Plan A
team of M&S facilitates an improved structure relating to the forthcoming plan A report for the
year 2015 and beginning to refresh plan A in making it easier for the stakeholders in finding an
information which is of most interest for them (Moratis and Brandt, 2017). The company had
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launched plan A 2020 that reflects innovation challenges that invites the people in retail,
academia, business fro enabling to solve real life challenges faced by M&S regarding its journey
towards sustainable business. An organization had also published details relating to Plan A
product characteristics that are been measured and determined. Commenced for the review of the
business in identifying the opportunities for an improved transparency. Marks and Spencer
engages with their stakeholders by way of doing business as it have around 150000 registered
shareholders, 32 million of customers, 80000 colleagues (Vracheva, Judge and Madden, 2015).
The firm sources their products from the suppliers across the world and had made investment in
development or participation of stakeholders communities as they believe that it is the right
thing for doing not just for their stakeholder but also for their business. Towards different
shareholders, M&S uses different approaches as follows-
Shareholders- over the past period the team met with the approx 270 investors from over
170 institutions and had participated in dozen of industry conferences and the roadshows. In
course of its meetings, the team get engaged with the investors representing well over the half of
their issued capital.
Colleagues- Positive feedback from our colleagues and enthusiasm fro transformation
initiatives have been spurred us in driving towards maintaining programme of the changes
throughout business.
Customers- The company had considered the way in which their transformation
programme had enabled them in improving their operations and efficiently improving experience
of their customers.
Community- In continuation with their store closure process, an entity had counted the
views of every store communities of it and taken appropriate measures in addressing the needs
with improved store offerings to them.
Suppliers- The company reviewed their major suppliers and in engaging the new
suppliers which represent their ideal and equipped in assisting transformations.
Explaining stakeholder engagement of Sainsbury's
Since the company had set up in the year 1869, they have always considered for
stakeholders participation fro attaining success sustainably at world level (Xu and Saxton, 2019).
The values of the company strengthen their relationship with stakeholders in building trust,

mitigating risk, reducing the operating cost, attracting the talent and retaining of the right talent
in the overall marketplace.
Shareholders-Sustainability plan of Sainsbury's reflecting their shareholders engagement
in order to build a more and more sustainable future. It had believed that more and more
sustainable practices could be provided a nutritious food for their growing population and the
support for rural development at the time of protecting an environment (Bellucci, Biagi and
Manetti, 2019).
Colleagues- It seeks for growing colleague engagement by providing them an education
regarding the way in which the carbon emission from the business has to be reduced and
encouraging them in minimising wastage of food, developing for food donation and supporting
the colleagues in relation to what type of food they could donate.
Customers- This company makes it easier for their customers in making healthy choices
which means by increasing range of the healthier food, cutting small amount of a salt, saturated
fat, sugar fat in their own branded products and also inspiring the kids to live for healthy and
balanced lifestyle.
Community- An organization has promoted their inclusive growth in an economy,
equality and jobs for creating better lives for the communities and the people throughout their
value chain and also across the globe. Sainsbury's is been seen as highly committed in reducing
carbon emissions and in investing within low carbon techniques which in turn resulted 14%
reduction for this year.
Suppliers- The company opted for cutting down wastage of food by making use of their
materials in an effective way and also increasing the supply efficiency of their supply chain by
growing the network along with the charity food foundation.
Evaluation of stakeholders engagement of both the firms
Shareholders- Both the companies are communicating with their respective shareholders
in an appropriate manner. Both organizations are conducting general meeting, annual reports and
the publications. M&S go for an extra mile by giving liberty to their shareholders for
recommending innovation ideas for the firm. Similarly, Sainsbury's also permits their
stakeholders in raising their opinions but there does not present any evidence relating to it.
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Customers- M&S is been facing many of the hurdles because of their rivalry which had
caused them for consistently trying for investigating the areas in which they require an
improvement. On the other side, Sainsbury's always had come up with the new products and an
improvements in all the sectors fro producing high quality food and selling it at low price which
in turn makes them more successful.
Suppliers- Sainsbury's majorly tries for communicating with their respective suppliers by
being a part of the multiple initiatives and in facilitating the standards for suppliers that need to
be followed. M&S faces difficulty against its competitor in engaging with their suppliers as
they need to ensure that the suppliers produces products with highest quality.
Employees- Both the firms understand necessity in context of involving their employees
by empowering them in understanding their problems and the concerns in a better way. M&S
aims for increasing their wages and an employment opportunities for the woman while
Sainsbury's has noted fro remunerating the woman poorly.
Pressure groups- M&S has an evidence for responding to the pressure groups and in
understanding needs of the pressure groups. However, Sainsbury's does not have any record of
an interaction with the pressure groups which clearly shows that they does not created
engagement with their pressure groups.
There are various standards or the indicators that are being set by stakeholders,
constituents, governance bodies and owners who had developed objectives, principles,
performance criterion, practice , application guidance for the sustainability. Marks and Spencer
leads the survey regarding with Sainsbury's with regards to the sustainable food. It made use of
three indicators that involves trust, transparency and traceability (Fasan and Mio, 2017). M&S
utilises materiality assessment relating to its sustainability reporting and this concept is stated as
most fundamental for the firm because it acted as the guiding principle that is been used in GRI.
However, Sainsbury's adopted farm promise scheme that helped in supporting the market for
transforming it into the sustainable and an organic dairy segment.
The development group in relation to dairy comprises of the four major priorities that are
animal welfare, farm efficiency, collaboration improvement, facilitates herd management support
and reduces the farm relating carbon emissions. M&S had developed a process where in the first

step it looks for determining and prioritising the stakeholders such as investor group, employees,
NGOs, media, consumers so that clarity could be gained in relation to the responsibility against
each stakeholder. Thereafter, it prioritise main indicators regarding sustainability referring to
significant stakeholders (Burgess and Clark, 2017). After this, a survey is been conducted with
major stakeholders in ranking major sustainability indicators at mainly two levels that is
importance and impact. Lastly an enterprise ranks its sustainability indicators on matrix by
making use of two axis that is one at importance and the other for a impact. On the other hand,
Sainsbury's has its private schemes regarding quality assurance and requests its suppliers in
joining for the network. This company sells for locally delivered 100% poultry, fish, egg, milk
and organic meat along with the seasonal fruits vegetables and fruits (Luoma-aho, 2015). It is
been planning for running lorries that will be running on the methane gas which had been
obtained from the landfill waste aiming for utilising 20% of the electric vans for the purpose of
online delivery. Sainsbury's is counted as the largest and first retailer that sells certified products
in respect of content and uses a fair-trade fruits. It also introduced an award schemes for the
employees so as in acknowledging and encouraging positive steps towards the sustainability
intelligence.
There are some areas where M&S requires improvement towards turning their stores
more and more sustainable with chain of working hard beside such stores. The firm had faced
many challenges like reducing wastage, creating for energy efficient products, switching to the
renewable energy (Dawkins, 2015). The firm need to conduct more and more research as
compared to Sainsbury's in terms of waste generated as its competitors has made an effective
strategies for engaging the employees in an effective and efficient manner (McClelland, 2016).
For addressing this problem, innovations needs to be made that helps in targeting this problem in
particular manner.
Thus, it is indicated as the challenge for the retail segment that arises in shipment of the
product, beginning from supermarket to delivering it to the ultimate consumers. An enterprise
requires to focus on its resources not only for just securing their sources that fulfil criteria of the
minimum standards. There present few constraints in making furthermore attempts for improving
stakeholder participation of M&S includes time and financial cost, high uncertainty level,
complexity and shortage of the agreed methodology (Viglia, Pera and Bigné, 2018). The retailers
requires more support in context of prioritising the environmental influence and developing
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guidelines that support the decision making in mainly four major areas where an environmental
improvement in the products could be done.
Thus, both the companies engages in the sustainable activities that in turn brings
stakeholders participation worldwide, though there are many challenges and problems are
present which had to be faced by the firms but such factors build reputation and well being of an
enterprise.
CONCLUSION
By summing up the report it has been assessed that stakeholder engagement helps M&S
and Sainsbury's in translating the needs of the stakeholder into the organizational goals and in
creating basis for effective development of strategy. With discovery of the consensus points or
the shared motivation enables the shareholders group in arriving at the decision and in ensuring
an investment in the meaningful results. It has also been analysed that stakeholder participation
of Sainsbury's is better than Marks and Spencer because it had made a good sustainability plan
that includes all the aspects that meets the expectation and the needs of all the stakeholders. For
gaining maximum participation of the stakeholders , company had faced many challenges but it
also considered as the medium through which an entity gained a growing success for its future
periods with determining the corrective actions that could be taken for improving the
sustainability plan with respect to the betterment of stakeholders.

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