In this task 1 P2, I have been asked to explain the implications for M&S and its stakeholders of the business operating ethically. For task 2 D1, I have been asked by using example, to evaluate the effects (consequences) of M&S ethical behaviour on stakeholders and the business.
M&S does the right thing for their shareholders, customers, suppliers, colleagues, environment and their local communities. Their ethics outlines the behaviour that it holds as a business and conduct the organisation with the highest standards of honesty. The ethics code of M&S describes the company policy and procedures which reminds them of behaviours that are unacceptable.
M&S’s tool of success is their customers, without them they would not make profit and be successful in the business. Therefore, it is important for them to meet their customer needs and expectations, otherwise customers might leave M&S and look for other companies i.e. Debenhams from where they can get better customers service who is able to meet their needs and wants. M&S offers quality products at a reasonable price which customers can afford; this makes the customers happy and feels the value for the money, this force M&S customers to be loyal customers.
Marks & Spencer is owned by the individuals and organisations that hold their shares. They are committed to build shareholders value through growth and dividends. They keep honest and accurate records of their performance which will be provided to the shareholders. This is vital for both of them, because if M&S loses their shareholders they will not have the fund to develop and to improve the service, on the other hand their shareholders would like to be a part of M&S as they have good reputation and image.
It is an important issue for the stakeholder of M&S to behave ethical towards everything. Especially managers have to be ethically, if not they will create a poor image for the business. They must behave ethically and make sure they are fair to their colleagues. It is important that M&S follows the EU legislation and directives effectively in order to improve their business image and reputation. M&S’s managers have the responsibility to make sure their colleagues are doing what is required of them.
M&S believes that building a good relationship with suppliers, employees and wider society was the best way of long term success. They have built up a reputation as a trustworthy retailer. M&S works on environmental and social issues by providing gifts to charity work. The suppliers are external stakeholders of M&S, as they are sell their goods to Marks & Spencer and both are benefiting from it. It is very important for M&S to have a good relationship with their suppliers. M&S has to look after their suppliers in order to keep long term relationship. Suppliers are expecting M&S to have a secure contract and pay them on time. In this way, the suppliers will give more discounts and offer which means “better deal”.
It is vital for employees at M&S to listen to their managers or supervisor and do what is requested from them. If not, they are at the risk of losing their job. Employees following the rules of M&S will have to secure good career. M&S provides good pay as well as leave facilities. If M&S provides good working conditions for their employees, their employees will be happy and be loyal to their business. M&S provides right pay for their employees following the minimum wage and give pay rise depending on employees working conditions. All employees at Marks & Spencer work hard to achieve their aim of serving their customers. They all treat their employees with courtesy and respect. Everyone is treated equally regardless of age, gender and race. Marks & Spencer is committed to provide clear, honest and accurate communication directly to employees....