Tough Decisions at Marks and Spencer

Posted: 7 May 2012

See all articles by Robert G. Eccles

Robert G. Eccles

University of Oxford - Said Business School

George Serafeim

Harvard Business School

Kyle Armbrester

Harvard University - Business School (HBS)

Date Written: April 2, 2012

Abstract

In 2007, under the leadership of CEO Stuart Rose, the iconic British retailer Marks and Spencer, with great fanfare, announced its "Plan A" initiative. Based on the five essential pillars of climate change, waste, sustainable materials, fair partnership, and health, the plan sought to transform the company's practices. By 2012, the program's aim was to ensure that M&S was carbon neutral and sent no waste to landfill. It also aimed to help its customers and employees achieve a healthier lifestyle, and to improve the lives of all involved in the company's supply chain with fair wages, as well as improved working hours and conditions. Called Plan A "because there is no Plan B," the company identified 180 projects to improve the sustainability of its operations and business practices in anticipation of the need for a very different business model in the future. Key aspects of Plan A included more sustainable sourcing and influencing the business practices of the company's supply chain; communication to employees, customers and investors; and employee engagement. The case concludes with the tradeoffs involved in the decision of whether or not to install refrigerator doors in the grocery section of its stores. While the energy savings and reduced carbon emissions are relatively clear and easy to measure, the impact on customers and revenues is harder to assess.

Learning Objective: This case illustrates the opportunities and challenges when a company seeks to make environmental and social sustainability core to its corporate strategy in anticipation of the necessity for a very different business model in the future.

Suggested Citation

Eccles, Robert G. and Serafeim, George and Armbrester, Kyle, Tough Decisions at Marks and Spencer (April 2, 2012). Harvard Business School Accounting & Management Unit Case No. 112-062, Available at SSRN: https://ssrn.com/abstract=2053313

Robert G. Eccles (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

George Serafeim

Harvard Business School ( email )

Boston, MA 02163
United States

HOME PAGE: http://www.hbs.edu/faculty/Pages/profile.aspx?facId=15705

Kyle Armbrester

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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