Marks and Spencer

Background

Marks and Spencer describe themselves as 'one of the UK’s leading retailers, with over 21 million people visiting our stores each week'. Their products are sourced from approximately 2,000 suppliers globally, they have over 600 stores in the UK and they employ 75,000 people in the UK and abroad.

They operate 285 stores in 40 'territories' worldwide, from Bermuda to Bahrain, Hungry to Hong Kong, Spain to South Korea and Poland to the Philipines to name just a few

They claim to be 'the number one provider of womenswear and lingerie in the UK', with their clothing and homeware sales accounting for 49% of their business. The remaining 51% of their business relates to the sale of food produce and products.

For the financial year 2007/08, M&S reported revenues of £9022 million, up from £8558 million in 2006/07. Their recorded profits also increased from £659.9 million for 2006/07 to £821 million for 2007/08

Child Labour

In 2007, BBC's Newsnight is reported to have exposed the use of forced child labor in the Uzbek cotton industry that had become a "deliberate state policy" aimed at "acquiring extra profits." Uzbekistan is the world's third-largest cotton exporter and whilst child labour had for many years been an issue there, it was reported that 'in recent years forced child labor has spread on a "mass scale," and that working conditions for thousands of minors who toil in Uzbek fields have worsened'. Children as young as 9 were described as being accompanied by police as they were sent to work in the fields. They were being paid just 2 pence per kilogram of cotton, which according to officials, is 40% less than pickers were paid.

The cotton was being used for making clothes sold in Britain and following the BBC's expose, M&S are reported to have said they would stop buying Uzbek cotton. This action was praised by some campaigners, yet it also begs the question of why did it take a very public expose in the British media before M&S took action, when child labour had been an issue in the country for many years?

Marks & Spencers document entitled 'GLOBAL SOURCING PRINCIPLES' may shed some light on this question. The aim of the document is to set out standards which suppliers for M&S are asked to follow. In the document, which sets the minimum age for workers to be at least 15 years old, it states that all production sites are visited and regularly assessed to ensure compliance. It does, however, go on to admit that it 'would be impossible for us to monitor or control the working conditions of each individual who contributes to what ultimately becomes a Marks & Spencer product' due to the complexity of supply chains. They exonerate themselves by stating that 'we establish a set of standards which includes specifications appropriate to the industries and countries manufacturing the products. It is the supplier’s responsibility to achieve and maintain these standards'.

Biographical Information

History

Michael Marks, a Russian born Polish refugee who was a founding member of M&S began trading in 1884 when he opened a stall at Leeds market. In 1894 he began looking for a partner and was joined by Thomas Spencer. In 1903 Marks and Spencer Ltd became registered as a firm.

Ethical Trade?

Marks & Spencer claim that they have always taken their 'responsibilities to customers, employees, partners, suppliers and local communities seriously' and they are a member of the Ethical Trading Initiative (ETI) which operates a 'base code' for how its member businesses should operate . The ETI describes how it aims to develop good practice and provide a generic standard for company performance through its code which states its aims as to ensure that. :

• Freedom of association and the right to collective bargaining are respected
• Working conditions are safe and hygienic
• Living wages are paid
• Working hours are not excessive
• No harsh or inhumane treatment is allowed
• Child labour shall not be used
• No discrimination is practised
• Employment is freely chosen

Yet Marks & Spencer was named by Ethical Consumer magazine as the UK's 3rd least ethical place to buy clothes in 2005 which is a glaring contradiction. People and Planet may be shedding some light onto this when they state that a 'company’s membership of the ETI is no guarantee that conditions for its workers are acceptable. Retailers do not have to meet minimum standards to be members - they just have to commit to working towards these standards'.

In 2006, The Institute of Development Studies published the results of a study it had undertaken into the ETI. It is reported that the ETI 'has had little impact' and has 'failed to stop the exploitation of workers who produce the bulk of the products sold in UK shops'. Verkaik of The Independent describes how the report 'shows that while some working conditions have improved, in most cases the agreement has made little or no difference'. Workers continue to 'remain on low incomes, have no union representation and in some cases are harshly treated by their bosses'.

People

Stuart Rose became Chairman and Chief Executive in 2008.

Publications, Contact, Resources and Notes

Contact

Address:

Marks & Spencer Head Office

Waterside House

35 North Wharf Road

London W2 1NW

Phone:

Email:

Website: