Marks & Spencer: Social Implications of Business Ethics

Question 1:

Marks &Spencer

Marks and Spencer is a Private Limited Company based in the United Kingdom. It is also referred as “M&S”. The company specializes in dealing with clothing and luxury food items. Currently, M&S has 703 stores in the United Kingdom and over 360 stores all over the world in 40 countries. The headquarters of the company is located in Westminster, London. It was founded in 1884 by Mr. Michael Marks and Thomas Spencer in Leeds.

It became the first British retailer to make pre-tax revenue of over £1 billion in 1998. However, the revenues were followed by a sudden economic turmoil which lasted for several years. Around a decade later, a major change was made in the company and Mr. Marc Bolland from “Morrisons” took over as the Chief Executive of the company; replacing Chairman Stuart Rose. The company enjoys its distinct position in the global market and is listed on the London Stock Exchange; and is a prime constituent of the FTSE 100 Index (Hall, J. 2010).

M&S Business Ethics Policy

The company has managed to retain its values, service and quality since its inception. Due to the quality of their services and their trustworthy image in people around the world, they have managed to rule the retail market. The incorporation of high values, innovations, quality services and trust differentiates their products and services from their competitors.

The general public's trust is further enhanced due to their honesty and business ethics. The company believes “We all have a responsibility to protect the Company's reputation in everything we do and say”. Hence, it includes adherence and compliance to the state and country laws, adequate following of the regulations and standard procedures. They also believe in conducting themselves in a professional manner and to be able to provide the highest imaginable standards of service (Potter, 2010).

Question 2

Social Implications of M&S and their Ethics

Finance

According to the “Code of Ethics: Mark & Spencer” (2010), It is among the top retailers in the world; faces the grim challenge of financial corruption and discrepancies. The social implications of such nature can heavily damage the company's reputation and can also result in irreparable losses.

The first ethical challenge comprises of stopping the unethical payments for personal gains. Secondly it also involves dealing with 'personal gifts' for individual benefits. M&S in their dealings with the suppliers; make it clear initially that payments and the services would be offered in proper accordance with the specified obligations.

Hence, the employees and other associated people are made clear about the company's financial policy. They are informed in advance about the consequences of such involvements and actions. The employees of M&S cannot indulge in any transaction that serves their sole benefit and contributes to the company's losses.

Also, the managers and other executives are also informed about the wrong use of their authority for financial benefits. M&S employees are not allowed to offer or to receive discounts from the suppliers/contractors unless M&S as a ...