Circular Economy and Sustainable Business Practices at M&S: A Report

This report provides a comprehensive analysis of the circular economy and sustainable business practices employed by Marks & Spencer (M&S) within the fashion industry. It begins with an introduction to sustainability and the concept of a circular economy, emphasizing the importance of resource u...Read More

REPORT ETHICS IN
CIRCULAR
ECONOMY

Table of Contents
INTRODUCTION...........................................................................................................................1
BODY..............................................................................................................................................1
M&S In Fashion Circular economy ............................................................................................1
Circular economy & Sustainable business initiatives..................................................................2
Introduction of the chosen brand its contribution to fashion industry.........................................4
Evaluate the current business practices of your chosen brand based on the Sustainable
Business Initiatives .....................................................................................................................5
CONCLUSION ...............................................................................................................................7
RECOMMENDATIONS ................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Sustainability is the process of maintaining change in a balanced environment.
Sustainability is a kind of development which focusses to satisfy the needs of the present without
adversely affecting the ability of future generation. As sustainable fashion blueprint is important
so that corporation can know the recent trend which is helpful to analyse the current fashion and
on the basis of it products are needed to be develop. It emphasis to bring balance in investment,
resources & technological development in order to develop harmony with clients. The British
Fashion Council provide support to the fashion industry in order to bring sustainability and it
contribute towards economy of United Kingdom. BFC is a non profit making corporation which
motives to provide support to the designers and help them to arrange sufficient resources so that
growth of fashion industry can boost. As per sustainable fashion blueprint this industry is world's
seventh largest economy which have more than 300 million persons across the value chain.
This report has discuss about the concept of circular economy so that maximum
utilisation of resources can be possible. To better understand this concept Marks & Spencer has
chosen which is a fashion brand of United Kingdom. In this report, there are following topics are
covered such as: relationship between CE and sustainable business, business practices of brand
based on sustainable business initiatives. Apart from this it also discuss about to provide
appropriate recommendations related to circular economy and blueprint related to business
activities.
BODY
M&S In Fashion Circular economy
Concept of CE
CE is the concept of extracting maximum utility from the products, parts & material in
the industrial system & trying to reconcile economic growth with the preservation of
environment.
The circular economy is an alternative to the traditional economy which focuses to make
maximum use of resources in order to provide maximum value to the clients (Circular economy.
2018). As BFS positive fashion logo celebrates the designers which are adhering to positive
fashion principles in its business and promotes the positive fluctuations in this sector. It
motivates the fashion industry to promote its products so that maximum number of consumers
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can attract towards the company. In this system the resources are utilise where reduction, reuse
& recycling of elements exist. This promotes to the uses of different biodegradable substantial
which possible in production of products- biological nutrients as a result environment does not
get affected. In some cases eco- friendly material can not be use so it facilitate a simple
uncoupling to provide a new life by reintroducing it into the production cycle. There are various
organisations which are using this concept so that resources can be reuse and cost will be
effective so that prices can be minimise (Wang and et. Al, 2018). As the economy of United
Kingdom is more competitive so it is necessary for the corporations to get the benefit of circular
economy so that business of company can grow and can sustain for a long run in the market. The
main problem is the scarcity of resources so it is important to use the material in effective
manner in order to get maximum output.
As circular economy is focuses on three basic things which are as: wastage become a
resource, second use and reuse. It is modelled by British environmental economists David W.
Pearce & R Kerry Turner in the year 1989. Idea of this type of economy appears in 1976 in a
research report of the European commission (Berndtsson, 2015). This economy has emphasis to
economic development, job creation, waste reduction etc. Theory of circular economy has
develop over the years in order to maintain sustainability so that growth can be increase. As the
requirement of high quality products are increasing so it is important to use the resources
effectively. The main aim of this theory is to maximum utilisation of resources so that cost will
be reduce and better products can be produce (Repo and et. Al, 2018).
Sustainable Fashion Blueprint is emphasis towards the fashion and analyse the recent
trends in the fashion industry and in he circular economy it is important to analyse the recent
fashion trend and demands. For an organisation it is important to determines the recent fashion
trend so that products can be develop on the basis of it and needs of consumers can be satisfy and
it will help the company to capture more market share by satisfy the needs of consumers.
Circular economy & Sustainable business initiatives
The report has emphasis on 6 basic business models that are used by brands to support
the environment & to adopt social strategies. The III section of FBR has focuses on extending
life that means products are needed to be produce with superior quality & longevity to stand the
test of time. The circular economy principles provide support it. As first principle is to preserve
& enhance natural capital and it can be done by managing finite resources & boost flow of
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renewable resources. As the second principle is about optimise yields which contribute economy
afloat, elements, products and emphasis to best possible use. The third principle is about foster
system effectiveness and helps to remove negative effects from manufacturing & product design.
So that damages can be reduce in context to health, security and food (Singh and Roy, 2018). It
is important for the fashion industry to protect the environmental and have emphasis to save
energy and water. Approx 8000 chemical are used in fashion industry so M&S should focuses to
minimize the uses of chemicals so that environment can be protected. The management of
company have to emphasis to reduce air and water pollution and install those plants which are
uses for recycling the wastage.
The production of superior quality of products are possible with the help of circular
economy so that effective utilisation of resources can be done. Circular economy has emphasis to
use of products for a long time so that sustainable development will be possible. There are huge
competition in fashion industry so it is important to produce high quality products in order to
satisfy the needs of consumers. Creativity and innovation is essential in fashion industry so that
maximum number of person can attract towards the corporation For that purpose relation in
sustainable development & circular economy has build as circular economy makes application of
resources in effective way which support to the sustainable development (Marsden, 2016). It
focuses to use the resources in best possible manner and minimize the wastage so that resources
can be save for the future generation. Quality products can be produce when material used in
better way and in the fashion industry it is very important so that more number of consumers can
attract towards the corporation. Marks and Spencer is belongs to fashion industry and it emphasis
to satisfy the needs of consumers so that market share can expand (Bressanelli and et. al, 2018).
As circular economy focuses to effective use of material in order to generate quality
output and promotes the sustainable development and growth. The main aim of sustainability is
to make available the resources for present & future aspects. As circularity and sustainability are
the distinct and it is not fair to judge that one is superior than another. This two terms can be use
together & at some context it is interchangeable. Sustainability is consider for future prospective
and helps to use the resources in best possible manner so that higher output can get. The
resources are limited and it has various usages so these are needed to be used effectively so that
in future it can be available. Sustainability involves economical, social & environment aspects.
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Circular economy is helpful to minimise the negative environmental effect so that products can
be use effectively and wastage will be reduce. Where as sustainability builds relation between
people and environment (Earley, 2017).
Circular economy is more sustainable as compare to the linear economic system. It is
beneficial to reduce the wastage of resources and create linkage and emphasis to minimize
pollution from the environment. As it has been reflected that circular economy & sustainable
business initiatives are associated to bring out fruitful results for an organisation and people and
also national & international level. The brand image of products can be improve by following the
concepts of circular economy and superior products can be produce that provide value to the
consumers.
As British Fashion Council has analyse 3 elements which are as mention below:
Sustainability: For the fashion industry it is important to emphasis on sustainable
development in order to secure growth of fashion industry & social environment. In the economy
of United Kingdom fashion industry contributes around £32.3 billion and create jobs for 890000
people.
Equality & diversity: As BFS set the specific standards for the fashion industry which
endeavour to present diversity & equality at global stage. It also promotes the ethics so that work
can be done effectively (Hagelüken and et. al, 2016).
Craftsmanship & community: In fashion industry creativity is most important &
craftsmanship supports the business. This element is focuses on to make connections and
understanding among designers & producers by taking atomistic approach. Innovative and
talented persons are required in this type of business (SHEN and LIU, 2012).
Introduction of the chosen brand its contribution to fashion industry
For the organisation it is required to make blue print of its fashion business so that it can
know the feasibility and it is help to prepare plans and effective strategies which support the
growth of business. If M&S find that any improvements are needed than it have to be analysed
and than implemented so that products can be produce as per the recent market trend in fashion
industry. Mark and Spencer is a British multinational company which deals in clothing, home
and food products. Its headquarter is in London and was founded in 1884. This company offers
its products all around the world. The company has its strong market in the fashion products like
different designed clothing products for men, women and kids. Apart from this company has
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valuable market share in the UK. Their customers are loyal towards the company's brand. In the
world wide area, company's fashion products have the goodwill and famous among the
customers. Specially in the UK their fashion products have significant impact on customer's
mind. Their fashionable products are popular in the different market segments (Stables and
Steve, 2015).
The company has around 852 stores in the UK in which their fashion brand products are
offered like kids wear, men's new design shirts and t shirt as well as women's tops etc. All these
products are innovative and new designed because company produce according to the new
technology and market demand. The success of company largely depends upon their unique
portfolio of products. They categorise their products in a portfolio which consists different
products according to the specification like styling cloths, casual cloths and party wear etc. This
helps the customers in choosing the product easily among large store. Due to this company has
around 33 million customers in UK. In addition they offers their products via online platform.
The company has significant impact on the fashion industry of UK and its economy. This
is why because they lead the market from front. It is company's strategy to attract more and more
customers so that they can cover the market of United Kingdom (Gosling and Case, 2013).In
2017, company generated £ 10622 million revenue in which they got £ 9441.7 million only in
UK, rest of revenue earned through other countries. It shows the strong impact of the company in
UK's market. In addition, company earns around 89% profit in united kingdom. Due to this,
company helps in the growth of UK's economy and development. They provides employment in
the country which increase the income level of population as well as improve the living standard.
There are plenty of other companies in country which are in same field but Marks and Spencer is
ahead from all of these and covering the huge area of market. The big reason of company's
success in UK is that they analyse all the factors like demographic, social etc. It helps them in
producing the fashionable products according to new trend ( Liu and et. al, 2012).
M&S company beats other international companies which try to establish their brand in
UK. Due to significant role of company, the fashion industry of united kingdom is leading in
comparison to other country's industries. Overall it benefits the country in all the way whether it
is economic development or improvement in fashion industry. Except from this, company is
planning to start 100 new fashionable stores till 2020 which will impact more effectively to the
market of united kingdom and its economic growth.
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Evaluate the current business practices of your chosen brand based on the Sustainable Business
Initiatives
As the chosen organisation Marks and Spencer belongs to the fashion industry and it has
various stores across the different nations. It is very famous clothing brand of United Kingdom
and contributes to the fashion industry. In the year 1999, organisation has earned profit of £1
billion and becomes the first the British retailer. For the company it is important to follow the
ethics which are made by fashion industry so that business of company can run for a long term as
a result higher revenue can be generated by the organisation. It is possible because of sustainable
business initiatives which is helpful to enhance the quality of products which are available in the
stores of company. By following this concept it focuses towards the maximum utilisation of
resources so that effectiveness can be increase and cost can be minimize. It also helpful to
minimize the wastage form the manufacturing process so that profits can be increase. The 3rd
section of FBR emphasis to extending life that means superior quality of products can be
produce so that needs of consumers can be fulfil. The management of Marks & Spencer has set
specific standard so that high quality products can be produce and wastage can be minimize
which shows that corporation is using the resources effectively (Clark and et. al, 2016). It deals
in different products such as: make-up, Hair and beauty products, clothes and its supportive
accessories. The manager of organisation has chose business practice which is based on
sustainable business initiatives and it benefited the company to satisfy the needs of consumers.
As per this concept, it focuses to minimize the wastage by maximum utilisation of resources so
that cost can be reduce and higher profits can be generated. Current business practices of Marks
& Spencer are based on some principles which are as mention below:
According to the first principle, the resources are limited and uses of these are very high.
This particular principle states that it is important for Marks and Spencer to utilise the available
resources in such a manner which leads higher productivity and support the business operations
of corporation. To achieve the goal of sustainable business initiatives it is essential for the
organisation to minimize the wastage from its manufacturing process. To compete in fashion
industry it is important to set benchmark so that products can be produce as per the specific
requirement of corporation.
As the second principle is about optimise yields which contribute economy afloat,
elements, products and emphasis to best possible use. It means the system has focused as a whole
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& designed to be created as a circular system. By following this principle, it is important for the
Marks and Spencer to produce durable products and design should be made according to it and
to achieve the goal of sustainable business initiatives it is essential for the organisation to follow
this concept.
The third principle is about foster system effectiveness and helps to remove negative
effects from manufacturing & product design. So that damages can be reduce in context to
health, security and food. It is important for the management of Marks & Spencer to minimize
side effects like: minimising water & air pollution, harmful toxic etc. The management have to
take initiative to use a Global Aquatic Ingredients Assessment in order to create healthy
environment for the persons.
These all steps are based on Sustainable Business Initiatives which contribute to the
growth of company (Ims and Zsolnai, 2014).
CONCLUSION
This project report has based on fashion brand and its evaluation in the terms of
Sustainable Business Initiatives. As Circular Economy is emphasis to make maximum use of
resources in order to provide maximum value to the clients. It focuses to minimise wastage so
that effective system can be developed and resources are utilise where reduction, reuse &
recycling of elements exist. In the fashion industry there are huge competition so it is important
for the company to produce the products as per the needs and expectations of consumers.
Sustainable Business Initiative has focuses to better utilisation of available resources so that it
can be available for the future aspects. As Marks & Spencer belongs to the fashion industry and
contributes to the economic growth of United Kingdom. The current business practices of
company's brand based on the Sustainable Business Initiatives in Section 3rd of the Sustainable
Fashion Blueprint.
In the fashion industry creativity and innovation is important so that corporation can
sustain for a long time in the market. Due to the huge competition, it is necessary for the
organisation to provide quality products so that desires of consumers can be satisfy which leads
to higher profit and growth.
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RECOMMENDATIONS
As a recommendation, it can be said that Marks & Spencer have to emphasis to its
operations because it is already concern to satisfy the needs of consumers by providing quality
products. From the last 10 years it has seen that various stores of company has been closed
reason being they are not managed properly and not changing as per the demand of fashion
industry. The manager should design the management operations in better way so that innovative
business concept can be introduced effectively as per the demand of fashion industry. It helps the
corporation to sustain in the market for a long term and generate higher profits. The
recommendations which are provided by Fashion Council are require to be follow so that
business of organisation can grow and get success. The legal laws and regulations are needed to
be follow so that firm can conduct its operational activities effectively. It is essential that
business of M&S should be sustainable so that it can run for a long time and beat the competition
in fashion industry as a result higher profits can be generated by the company. Components of
sustainability are: people, profit and environment.
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REFERENCES
Books and Journals
J. Ims, K. and Zsolnai, L., 2014. Ethics of social innovation. Society and Business Review. 9(2).
pp.186-194.
Clark, J. H. and et.al, 2016. Circular economy design considerations for research and process
development in the chemical sciences. Green Chemistry. 18(14). pp.3914-3934.
Liu, D. and et.al, 2012. Constructivism scenario evolutionary analysis of zero emission regional
planning: A case of Qaidam Circular Economy Pilot Area in China. International
Journal of Production Economics. 140(1). pp.341-356.
Gosling, J. and Case, P., 2013. Social dreaming and ecocentric ethics: sources of non-rational
insight in the face of climate change catastrophe. Organization. 20(5). pp.705-721.
SHEN, K. Y. and LIU, M. Y., 2012. Environmental Ethics of the Sustainable Development of
Golf Industry. Journal of Chengdu Sport University. 11. pp.26-30.
Stables, K. and Steve, K. eds., 2015. Environment, ethics and cultures: Design and technology
education’s contribution to sustainable global futures (Vol. 5). Springer.
Hagelüken, C. and et.al, 2016. The EU circular economy and its relevance to metal recycling.
Recycling. 1(2). pp.242-253.
Earley, R., 2017. Circular design futures. The Design Journal. 20(4). pp.421-434.
Bressanelli, G. and et. Al, 2018. Exploring how usage-focused business models enable circular
economy through digital technologies. Sustainability. 10(3). p.639.
Wang, N. and et.al, 2018. Evaluation of urban circular economy development: An empirical
research of 40 cities in china. Journal of cleaner production. 180. pp.876-887.
Berndtsson, M., 2015. Circular economy and sustainable development.
Repo, P. and et.al, 2018. Lack of congruence between European citizen perspectives and policies
on circular economy. European Journal of Sustainable Development. 7(1). pp.249-264.
Singh, M. P., Chakraborty, A. and Roy, M., 2018. Developing an extended theory of planned
behavior model to explore circular economy readiness in manufacturing MSMEs, India.
Resources, Conservation and Recycling. 135. pp.313-322.
Marsden, T., 2016. Exploring the rural eco‐economy: beyond neoliberalism. Sociologia Ruralis.
56(4). pp.597-615.
Online
Circular economy. 2018. [Online]. Available Through:
<http://www.wrap.org.uk/about-us/about/wrap-and-circular-economy>
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