When M&S chief executive Stuart Rose was knighted in the New Year’s Honours List, the accolade was awarded for services to retail industry (no surprise there) and to corporate social reponsibility.
His CSR credentials were burnished most recently – and most impressively – when he balanced the customer-empowering “Your M&S” campaign with the “Plan A” environmental initiative (so called “because there is no plan B”). The twin strategy has done much to brush up what had become a rather haggard-looking corporate image and M&S now tops Management Today’s Most Admired Companies poll with the highest-ever score.
Yet the strategy was not merely an image-enhancing exercise. Despite today’s gloomy share-price news, M&S has still enjoyed a positive change in its financial fortunes and in doing so has illustrated very clearly that “profit” and “principles” are no longer mutually exclusive concepts (if, indeed, they ever truly were). In fact, these days they can make very comfortable bedfellows.
According to the Co-op Bank’s ethical consumerism report 2007, the total ethical market in Britain is now estimated to be worth £32.3 billion – up 9% on the previous year – and growing. What’s more, companies taking the lead on environmental, social and governance performance have outperformed the stock market by 25% over the last two years. Conversely, companies deemed unethical can suffer: Nike, Nestlé and Barclays Bank have all been hit by boycotts over allegedly unethical practices.
The fact is that consumers increasingly value values – and not just low prices. Given the rewards available to companies with strong ethical positions – and the penalties awaiting those who ignore the ethical aspect of modern business life – there is more reason than ever to adopt a robust CSR agenda. As Dr Emma Harvey of CSR Consortium member SaltaSustainable points out, “There’s really no excuse not to.”
His CSR credentials were burnished most recently – and most impressively – when he balanced the customer-empowering “Your M&S” campaign with the “Plan A” environmental initiative (so called “because there is no plan B”). The twin strategy has done much to brush up what had become a rather haggard-looking corporate image and M&S now tops Management Today’s Most Admired Companies poll with the highest-ever score.
Yet the strategy was not merely an image-enhancing exercise. Despite today’s gloomy share-price news, M&S has still enjoyed a positive change in its financial fortunes and in doing so has illustrated very clearly that “profit” and “principles” are no longer mutually exclusive concepts (if, indeed, they ever truly were). In fact, these days they can make very comfortable bedfellows.
According to the Co-op Bank’s ethical consumerism report 2007, the total ethical market in Britain is now estimated to be worth £32.3 billion – up 9% on the previous year – and growing. What’s more, companies taking the lead on environmental, social and governance performance have outperformed the stock market by 25% over the last two years. Conversely, companies deemed unethical can suffer: Nike, Nestlé and Barclays Bank have all been hit by boycotts over allegedly unethical practices.
The fact is that consumers increasingly value values – and not just low prices. Given the rewards available to companies with strong ethical positions – and the penalties awaiting those who ignore the ethical aspect of modern business life – there is more reason than ever to adopt a robust CSR agenda. As Dr Emma Harvey of CSR Consortium member SaltaSustainable points out, “There’s really no excuse not to.”
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