Given the recent market share problems and competition facing M&S, what are the two highest risks of embarking on a voluntary program of social responsibility at this time?
Marks & Spencer is a retailer in the United Kingdom that sells a variety of clothing, furnish-
ing, household goods, and food ranges. The business had humble roots. In March 2013 they re-
turned to their roots and opened a stall at Kirkgate Market in Leeds, the same place that Michael
Marks opened the first Penny Bazaar stall in 1884 (Our Heritage, 2016). Since 1884, Marks &
Spencer has created a long-established business whose competitors copy their brand image.
Like every company, they were faced with diminishing sales and consumers but overcame this
dilemma by differentiating themselves from their competitors by focusing on sustainability. In
2007, Marks & Spencer came up with ‘Plan A’ which lasted an ambitious five years. ‘Plan A’
was aimed at addressing the social and environmental impacts of the retail business and to draw
customers’ and employees’ attention to policies and opportunities to supper the business in fairer
trading, positive impacts on climate change, and the way the business uses natural resources and
manages wastes (Richardson, T., 2015). The company became well-known for the companies
success because of their well-detailed planning and great ideas.
Marks & Spencer wanted to provide their customers with high-quality products that are
still affordable to the common family. The company wanted to stay close to the community be-
cause they want to build long-lasting relationships with their customers. “By the 1930s, the
name Marks and Spencer was synonymous with trust, quality, and significantly, as an employer
who looked after their employees, going beyond the minimum standards for wages, benefits, and
care (Richarson, T., 2015). Marks & Spencer has explored many risks when embarking on a
voluntary program of social responsibility. With that being said, I will explain those risks and
give recommendations for cultivating engagement with the program among employees and the
local community.
Marks & Spencer knows that risks exist but they need to be managed. Because of this
company’s size and caliber, they have in place a risk management policy, a system of regular re-
views, and a number of high-level committees tasked with monitoring the risks that the business
has identified (Wheatley, M., 2012). The risks M&S faces range from food safety to reputational
risk. One of the highest risks when embarking on a voluntary program of social responsibility at
this time is the economy. Marks & Spencer’s ‘A Plan’ revolves around corporate and social re-
responsibility. They have an international presence but only 11% of their revenue comes from
overseas, the majority of their sales is from the United Kingdom and right now the consumers in
the United Kingdom are in a difficult situation debating if they can still afford Marks &
Spencer’s high-quality, upmarket, socially responsible products or buy cheaper stuff of less-as-
sure provenance. The risk is if the conditions of the economy worsen, it will largely impact the
consumers and the ability of M&S to achieve their ‘Plan A’. Consumer spending is the heart of
the economy. When consumers spend less the economy gets worse, and the government needs to
start spending to stimulate the economy. The most obvious explanation for subdued spending is
that consumers are still paying off debts and rebuilding their savings (Tritch, T., 2015). If this
occurs, a recession may occur. Marks & Spencer is always reviewing and monitoring the effect-
the liveness of the pricing and promotional strategies across both its general merchandise and food
businesses, and tailoring its consumer offerings where appropriate (Wheatley, M., 2012). Also
they are constantly thinking about the consumer’s disposable income and how it is affected by the
economy and the inflation of prices.
Another risk when embarking on a voluntary program of social responsibility at this time
is the loss of engagement with its core customers. Marks & Spencer’s demographic is focused
on women aged fifty-five and older. Fashion changes during each season and the risk that
M&S face is becoming the laughingstock of the industry. As Marks & Spencer notes: “As we seek
to enhance the M&S brand and make our sub-brands more distinctive, it is important that we
continue to address our core age 55+ customers’ specific needs in an increasingly competitive
and economically uncertain market” (Wheatley, M., 2012). It is important to monitor the cus-
timers reactions and experience in the store to get a better insight on what their consumers like
the most. The fashion industry is highly competitive and those competitors may be able to adapt
to changes in consumer demand more quickly, devote greater resources to establishing brand
recognition or adopt more aggressive pricing policies than we can. The fashion industry contains
a high level of uncertainty.
There are plenty of other risks M&S will face throughout the life of their business but it
is important to recommend some solutions for cultivating engagement with the program among
employees and the local community. According to engageforsuccess.com, employee engagement is defined as a workplace approach resulting in the right conditions for all members of an organization to give their best each day, committed to their organization’s goals and values, motivated to contribute to organizational success, with an enhanced sense of their own well-being (2016). An engaged employee actually cares about the organization and its goals and will go
above and beyond the job requirements. For M&S is engage more employees, they want to feel
rewarded and recognized. An employee that knows there are higher compensations and/or pro-
motions in the future to those who deserve the recognition will be engaged. So a company that wants
its company to grow, prosper, and have a stronger community at the workplace should recog-
size their employees when they are outperforming their competition. Another recommendation
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