CASE STUDY

Case Study - Legal, Ethical and Regulatory Implications of Marks & Spencer's advertising Campaign 'Doing the Right Thing'



Case Study - Legal, Ethical and Regulatory Implications of Marks & Spencer's advertising Campaign 'Doing the Right Thing'

Introduction

M&S and Plan A

Marks and Spencer (M&S) Group completed its 125th anniversary in 2009. For more than 125 years M&S has been a benchmark of high value and great quality products for its customers. This incredible journey started as a modest Penny Bazaar stall and with continuous improvements has enhanced its value as UK's leading retailer of quality clothing, food and home products. M&s has a customer base of more than 21 million UK customers and massive expansions into the global market encompassing over 43 national territories. M&S is supported by a strong team of 78,000 employees and more than 2000 suppliers. The aggregate efforts of all stakeholders of M&S ensure the brands continued offerings of quality, service, value, innovation and trust. In 2008-09, M&S recorded revenues of £9.1 billion and reaped profits before tax of £604 million. These massive revenues were generated from £4.25 billion food sales, £3.9 billion general merchandise sales and the remaining £898 million from international sales. M&S is UK's largest apparel retailer with 668 store outlets. M&S enjoy a market share of 11.2% (in terms of volume) and 3.9% of UK's food markets. The international businesses of M&S accounts for slightly less than 10% of the groups aggregated turnover. M&S is a public limited company listed on the LSE. It shares strong ties with trade associations including British Retail Consortium (BRC) and Confederation of British Industry (CBI). M&S is a founding member of Business in the Community (BitC) (M&S How We Do Business Report, 2009, pp. 2).

In January 2007, M&S launched Plan A. This plan set out 100 commitments on the most pressing ethical, social and environmental challenges facing the business. The plan is set to invest more than £200 million over five years to the 100 underlined commitments. The plan coincided with the global financial downturn of 2007. The targets for Plan A could easily have been placed on hold to recuperate the bottom lines of the affected business-side of M&S due to the economic upheaval. Though determination, compassion and resolution helped M&S fight to attain the objectives of its self-initiated plan. M&S is grateful to its loyal customers for being supportive of its brand for more than 125 years. The management is determined to give back to the community by maintaining quality and high standards in its products, while further streamlining the quality processes of M&S with more ethical, environmental and socially relieving product standards. M&S realize the importance of this plan for the business and for its long-term customers. These customers share the commitment of M&S and trust the company to do business with utmost ethical, environmental and socially sustainable considerations. In adhering to Plan A, M&S has realized its positive efficiency impacts on the business, through cost savings etc; as well as its input as a ...