Features Management in the Wider Environment - Essay Example

Module of the Assignment: of the Number: Introduction The term globalisation is commonly viewed in economic terms particularly in regards to the predominance of transnational corporations (TNCs) internationally. Consequently, modern corporations are increasingly being viewed as major drivers of economic growth influencing societal and ecological status of local communities. Future economic development will be the ‘litmus test’ by which society assess the worth of transnational corporations including the source and procurement of their merchandise among other considerations (Burns, 2003). Corporations are therefore being pressurised to consider the welfare of the communities within the environs of their operations particularly among the economically and physically challenged communities as part of their corporate social responsibility (CSR) initiatives. Among the developing countries, TNCs are looked upon as the critical stimulus for growth with far more essential impact than local governments often mired in corruption and mismanagement. Background: What is Globalization? The Britannica Concise Encyclopaedia defines globalisation as ‘the process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world (Britannica.com, 2009). The Bankingdictionary.com describes it in financial terms as the ‘interdependence of buyers and sellers of financial instruments in financial centres around the world.’ The Small Business Encyclopedia however gives it a broader meaning, describing it as ‘the process by which the economies of countries around the world become increasingly integrated over time. This integration occurs as technological advances expedite the trade of goods and services, the flow of capital, and the migration of people across international borders.’ (Bhagwati, 2004) According to a World Bank definition, Corporate Social Responsibility (CSR), ‘is the commitment of businesses to behave ethically and to contribute to sustainable economic development by working with all relevant stakeholders to improve their lives in ways that are good for business, the sustainable development agenda, and society at large’ (World Bank, 2001). Product Portfolio: Marks & Spencer Plc Marks & Spencer (M&S) is a UK based retailer with 895 stores in over forty countries though only a third overseas. Its main product lines include garments, foodstuff, household goods, hospitality, furniture, apparatus, beauty, banking and energy products (Marks & Spencer, 2009). Although it has in recent years virtually stabilized, it had turbulent times in the 1970s to late 1990s when it become the first UK retail store to register £1 billion revenue in 1998 and £9 billion in 2009 (BBC, 2009). Similarly, M&S had poor reputation on CSR issues particularly regarding its staff and suppliers with unfair working conditions reported in addition to squeezing suppliers (Waronwant.org, 2007). However, M&S has reinvented its strategy [see PESTLE analysis Appendix], introducing the Look Behind the Label campaign among its clients and suppliers and integrating CSR policies plus environmental sustainable strategies (Fletcher, 2006). M&S has also being enjoined in the Fair-trade organisation whereby it accords appropriate policies like discouraging GM products for organic ones, paying better prices for commodities sourced in developing countries among others (Marks & Spencer, 2009). M&S has been active in CSR initiatives launching ‘Plan A’ a five year program for environmental sustenance. This includes ecological preservation, CO2 emissions reduction, less wastages and tactical sourcing though the supply chain in addition to less plastic bag usage (Marks & Spencer, 2009). 1.0 Effects of Globalization on National Economics According to a report by the Institute for Social and Policy Studies (2003), among the 100 largest global ‘economic entities’ 51 are corporations while only 49 are countries; with the top 200 international corporations controlling over a quarter of total global economy though only engaging a mere one percent of world population. Nevertheless, globalization is generally acknowledged as being a blend of financial, technological, socio-cultural, political, and organic aspects. The globalisation thrust was entrenched in the post WWII period through the enactment of the General Agreement on Tariffs and Trade (GATT), which sought to promote ‘free trade’ by eradicating restrictions on free movement of merchandise across national borders (Microsoft Encarta, 2009). Globalisation describes the amalgamation of national economies into a self-governing international financial scheme (Hill, 2003). Previously, multinational corporations have been the major drivers of globalisation but the ascendancy of internet usage has breached the gap whereby smaller entities are able to compete in the international stage with larger corporations thus further enhancing the impact of globalisation on world economies. Globalisation has however been criticised for exacerbating poverty levels as the free flow of trade has a detrimental effect on the poorer regions of the world. Globalisation has also been linked with ecological degradation in addition to the spread of contagious diseases including HIV AIDS, swine flu or HINI and TB among others (Daulaire, 2006). In economic terms, the current global financial crisis has also been linked to globalisation, the brain drain from developing nations, drugs and ‘black market’ trade, and the emerging food security problems as privatisation and profits gain more ascendancy over all other concerns (BBC, 2006), (The New York Times, 2008). This has led to the development of the anti-globalization movement, condemning the over-exploitation of poor nations by richer developed nations, environment degradation, outsourcing, etc (Della Porta, 2006). These groups become especially vocal during the annual gathering of the G8 and G20 rich nations to express their discontent (Chossudovsky, 2003). 2.1 Integration of National Economies The extreme rivalry brought about by globalisation has resulted in many organisations relocating in foreign locations in efforts to enhance their capacity and growth (Rose, et al, 2008). National economies have being integrated within the global economic system, while companies have taken advantage of easier communication and the borderless trade to expand internationally thus meaning major corporations have erected operations in almost all corners of the globe (Hill, Pg. 31). Irwin and Clark (2006), describe globalisation as ‘increased mobility of goods, services, labour, technology and capital throughout the world ‘(Pg. 2). M&S typical of a globalised corporation has spread in almost all corners of the planet with many subsidiaries in developed and developing countries. Nonetheless, in line with its CSR policies and fair trade concepts, the firm has actively engaged local employees and suppliers thus managing to spread wealth while maintain its high standards and revenue levels (Marks & Spencer, 2009). 1.3 The Role and Responsibilities of the EU Membership on the Workplace The EU has always being at the forefront of encouraging fair trade policies among its members and other OECD countries. The EU’s Green Paper Promoting a European framework for Corporate Social Responsibility (2001) was aimed at encouraging discussion on a more accountable attitude among corporations and EU nations. This Green Paper aimed at enhancing innovative practices and transparency intended at better CSR and Fair Trade initiatives (Broomhill, 2007). However, Grenade (2004) while analysing the impact of EU’s drive for integration of pro-development agenda, fair trade and CSR Caribbean Community (CARICOM) argued that it would be hard to drive the twin agenda of EU competiveness in the global arena and CSR or fair trade policies. Among the EU countries, Britain and the Netherlands have been at the forefront of advancing CSR as a viable mechanism for growth particularly within the developing countries where they are the more heavily represented of all EU nations. In this regard, M&S has adopted the CSR initiatives within its global branches where it had very negative and hostile reception from the local population despite their heavy investment and employment opportunities (Murray, 2004). The NGO Social Accountability International (SAI) has upheld auditable standards that seek to enhance workplace conditions (Cassidy et al, 2003). 1.21 Environmental Issues As global attention increasingly becomes focused on environmental issues like climatic change, carbon emissions, wastage and energy conservation, companies and governments have come under tremendous pressure to act against environmental degradation. Environmental issues and sustainability have now gained prominence with further evidence that continued degradation of ecology will be fatal for future generations (Earth Policy Institute, 2009). This concepts and issues have progressively become linked to human rights topics as climatic change start to affect the poorer nations and global warming become apparent even to former sceptics. In this regard, companies have been forced to recognise the new concept of ‘shared value’ or ‘shared responsibility’ as mutual business rights are linked to human rights. This has now become part of the companies’ CSR where sustainability and communal approaches are incorporated in the firm. According to Murray (2004), CSR has therefore become an integral part of the globalisation debate. This has been mostly due to intense pressure from nongovernmental organisations (NGOs) and other pressure groups that have linked the spread of TNCs and globalisation to global poverty as they are deemed to be merely exploiting the source of capital including labour without due recourse to local communities. The possibility of suffering active consumer boycotts when they ignore this overtures have forced corporations to be more responsible. At M&S, the firm has embraced the environmental concepts by erecting new stores with formats aimed at enhancing ecological balance at strategic locations. The company complies with regulatory standards from local authorities and EPA including applying Environmental Impact Assessment, store access and car parks plus landscaping designs upgraded to ensure better environmental care (Marks & Spencer, 2009). 1.1 The Influence of International Institutions The World Trade Organization (WTO) in conjunction with the World Bank, International Monetary Fund (IMF), regional economic entities like the EU and the OECD facilitates global trade between states and TNCs. The UN Global Compact gives guidelines on how to implement such initiatives critical for CSR. Similarly, OECD guidelines and ILO standards give clear direction on how to implement CSR in organisations to positively impact not only on their staff and brand but also on all the stakeholders who transact with the firms (OECD, 2002). 2.0 The Economics of Adopting Policies of Environment Awareness In a study of the linkage between corporate business activities and their economic impact, Burns (2003) identified six key activities that had profound effects on social development. These are ‘facilities sitting and management; employment; product and service development use and delivery; sourcing and procurement; financial investments and fiscal contributions; and philanthropy and community investment’ (Pg.7). 2.1 Benefits of Adopting Environmental Awareness According to UK’s Department for International Development (DFID), four major forces pressurise organisations to adapt corporate social responsibility [Figure1]. These are the need to preserve their clients; the investment environment; non-governmental organisations and the nature of their business. Nonetheless, the main drivers are the consumers and the community who exert latent weight on the enterprise to conform to contemporary environmental needs (DFID, 2003). Figure 1: Source: Adapted from DFID (2003), Pg. 6 Nonetheless, Locke (2003) has classified CSR modules into four major approaches: ‘minimalist, philanthropic, encompassing and social activist’ (Pg. 2). [Table1] Table 1: CSR Approaches Minimalist Philanthropic Encompassing Social Activist Initial Stakeholder Support Definite Ventures or schemes Futuristic approach involving communities Modelled in the organisational objectives Dealing with Human Resource Issues Addressing particular organisational concerns Entrenched within the organisation’s principles and management approach Trade as vehicle for transformation Occasional Handouts Hand-outs and contributions Desire for transformational leadership Desire to transform other people and organisations Desire to transform Source: Adapted from Locke (2003) Microsoft’s Global Foundation Services (GFS) have proposed a continuous compliance program through the incorporation of recycled products whenever practical; utilising renewable resources when obtainable; waste reduction practices; and sponsoring or participating in environmental programs (Microsoft, 2009). 2.2 Actions that need to be taken by the Organizations to Maintain the Environment 2.21 The ‘Three Pillars’ of Sustainability Efforts to enhance ecological sustenance necessitate the need to balance environmental, social and economic demands of the world’s inhabitants. These are collectively dubbed the ‘three pillars’ of sustainability required to uphold the ideals of prolonged ecological, communal and economic balance as espoused in the UN World Summit, Hong Kong - 2005 (UN, 2005). Although some firms are still sceptical of environmental crisis issues, a State of Sustainable Business global survey poll in 2009 by research firm BSR/GlobeScan found that climatic change and human rights are the most critical issues identified by various companies (BSR, 2009). Nonetheless, the overconsumption of biophysical resources has been traced as the root cause of environmental degradation. The three main factors in this theorem are population extent, the consumption level and effect on the raw materials dependent on equipment employed (Ehrlich et al, 1974). This can be empirically illustrated as: I = P × A × T Whereby: I = Environmental impact, P = Population, a = Affluence, T = Technology 2.22 Sustainable Value Framework According to Graham and Bertels (2006) sustainable business framework balances pecuniary expansion and viability with dedication to concentrate on numerous aspects of waste reduction; incorporating leadership into business management; re-envisaging proficiency to take steps on budding prospects; and planning for unfulfilled requirements and openings yet unidentified. M&S has in this regard managed to integrate these concepts in its corporate strategy ‘principle of sustainable development’ catering for current needs while preserving those of future generations. This includes enhanced waste management programs, disposal, recycling and repackaging among other schemes including introduction of a 5p per standard sized carrier to reduce use of disposable plastic bags (Marks & Spencer, 2009). Hart & Milstein (2003) have devised a model, the Sustainable Value Four Framework quadrant in which the current elements vis-à-vis future sustainability issues are addressed. The current strategies are weighed against future prospective approaches while the internal growth prospects are measured against external future growth prospects and perceptions [See Figure 4]. They have thus proposed a multi-dimensional approach to these challenges linking the three triple challenges of economic, social and environmental factors (the triple bottom line) rather than the dogmatic view adopted by most companies. EPA administrator William Ruckelshaus thus remarked that, ‘sustainability is as foreign a concept to managers in capitalist societies as profits are to managers in the former Soviet Union’ (Pg. 56). The sustainable value framework integrates shareholder values whereby each driver of sustainability impact on the strategic approach (Chambers, 2008). Figure 2: Sustainable Value Framework Source: Hart and Milstein (2003) Pg. 57 2.23 Avoiding Wastage According to the UK’s Department for Environment Food and Rural Affairs (DEFRA) and the Environment Protection Agency (EPA), organisations in the country waste approximately 20 percent of energy purchased while the balance is wastefully utilised. It is therefore prudent for organisations to adopt conservation methods to save their funds while halting adverse climate change through observation of legislative environmental guidelines as well as improving their corporate image (Earth Policy Institute, 2009). They therefore recommend the utilisation of energy-saving technology including electronic equipment like computers, refrigerators and copiers among others. Additionally keeping the lights off when not in use, technological innovation in all the office and household gadgets also saves a lot of energy (Sterlicchi, 2005). M&S has effectively incorporated these green initiatives in its many stores while also ensuring its suppliers conform to these same standards. M&S has now banned trade in genetic modified food products; upheld animal welfare and testing standards; encouraged fair trade policies through purchase of organic foods, Fair-Trade tagging logos, biodiversity, business ethics among its staff and supply chain including labour standards at source Marks & Spencers, 2009). 2.24 Green Strategies Business enterprises are encouraged to evolve green strategies through initiating sustainable innovative processes including creating new products and services aimed at low energy consumption and conservation (UN, 2005). Governments also are enacting legislative guidelines that encourage conservation and sustainability while erecting others that punish excessive wastage and careless emissions (Businesslink.gov, 2009). Business leaders are encouraged to do a clean technology test (see Figure: 3) that will ascertain whether there methods are leading to better sustainability or further degradation. Figure 3 2.3 Measures to Improve Workplace Health and Safety Practices The EU and UK government have set guidelines on the minimum workplace health and safety procedures. At M&S, the firm has credible safety procedures including appropriate working conditions, fire, hygienic and a general aesthetic atmosphere that encourages better working relations. In line with modern CSR and Fair-trade initiatives, firms are also required to ascertain the conditions of their sourcing products are conforming to the minimum international standards as established by the ILO and other international organisations. In this regards, M&S has joined this programs by dealing only with sources countries that conform to this principles. The EU with tacit support of the UK has in line with UNCTAD’s (1999) report encouraged corporations to consider advancing social programs especially in countries with poor governance and human rights records [Figure 6]. Figure 4: The impact of business on development Source: Adapted from DFID (2003), Pg. 3 3.0 Responsibilities of Organizations to Improving Workforce Welfare After the decline in the power of trade unions and industrial relations over corporate power due to declining labour movement and globalisation, during the 1990s there emerged a new concept of Corporate Social Responsibility (CSR) as corporations were derided in their overriding drive for profits (UN, 2005). Workplace injustices and sweatshop labour practices opposed to the tenets of the International Labour Organization (ILO) on worker rights were prevalent while large corporations trampled not only on their workforce, but also greatly exploited the consumers through elaborate marketing strategies which enhanced consumerism to the detriment of the larger public. These decadent practices were generally mostly practiced in the developing countries where large monolithic transnational corporations exploited not only the resources of the host countries adversely, but also the human capital (OHCHR, 2010), (United Nations, 2004). In this regard, M&S needs to improve on its employee relations that are heavily biased against the staff. The company’s Business Involvement Group (BIG) representation is ineffective leading to alarming levels of employee violations of their rights, which is untenable in modern globalised economies that require a more responsive management (BBC, 2009). 3.1 Approaches to the Management of Diversity 3.11 ‘Bottom of the Pyramid’ Hypothesis To adequately deal with the problem of global poverty stakeholders must address the needs of the ‘bottom of the pyramid’ as a more effective strategy to alleviate poverty. Approximately a fifth of global citizens live on less than $1 daily while half of the world’s population live on less than $2 on daily basis while most of the global wealth is in the hands of just a few people (World Bank, 2001, Pg.3-4). Organisations involved in poverty reduction eventually benefit as they enhance the poor’s purchasing power hence able to buy their products and services. Many of the current social ills including crime, disease, and lack of education or pollution can be eradicated by a more affluent society (Matthews, 2002, Pg.16). 3.12 Negative Globalisation The adverse impact of globalisation on national and regional economies was devastating demonstrated in the aftermath of the global economic crisis when the collapse of the US sub-prime mortgage market led to a global credit crunch that has wrecked many national economies including Iceland, Greece, Spain and other developed countries. The UK’s economy has also been hard hit by the global economic crisis with record deficits and accordingly Yahoo! Finance quoting UK’s Office for National Statistics (ONS), it shrunk by 0.3 percent in 2009, much lower than that of United Sates and other the regional European average (Yahoo! Finance, 2009). Figure 5 Chossudovsky (1998) blames the bungled policies of the IMF and World Bank for escalating the often evident global financial crisis that encourage speculative activities from financial markets as the Bretton Woods institutions advocate deregulation. This inadvertently exacerbates poverty particularly among the vulnerable poor nations and the unemployment within the developed countries. In the 1990s this institutions pushed for the Structural Adjustment Policies (SAPs) which had detrimental consequences on developing countries (Globalissues.org, 2004). 3.2 Workforce Organisation Approaches In view of the adverse effects of globalisation that has led to the easing of national borders and other natural barriers across the world, Cassidy et al, (2003, Pg.vi) have noted that the issue of human rights as concerns business enterprises need a universal regulatory mechanism. They have therefore proposed the setting up of a Human Rights and Business Commission (HRBC) to breach the gap prevalent in conventional structures revolving around human rights and business disputes for a prompt and efficient approach (Broomhill, 2007). The UN Special Representative on Transnational Corporations and Human Rights, John Ruggie has called for enactment of an international legal framework that can compel global and regional or national conglomerates to put in place appropriate corporate governance that guarantee the rights of workers, clients, and communities to socially responsible for their actions (McCorquodale, 2009). Employee relations are enhanced when the prevailing cultural and management practises within the organisation are more developed. Human Rights organisations like the Living Wage Campaign (LWC) led by London Citizens have campaigned for better benefits for these workers terming it a violation of labour rights and unethical (Lucas and Deery, 2009). Employee relations are therefore enhanced when the prevailing cultural and management practises within the organisation are more developed. The EU has enacted guidelines for corporations to follow within the workplace and in recruitment, which must not only be followed within the domestic sphere but also in the international subsidiaries (Broomhill, 2007). Studies have revealed that workers who are accorded flexible working schedules and other casual conditions were more predisposed to be motivated about their jobs (ONS, 2005). At M&S, the company has nonetheless despite numerous setbacks enhanced staff training and growth, employee feedbacks, rewards and benefits, pensions, family friendly working conditions and trade unions recognition. The tradition of performance and attainment running through the organisation is its principal potency. Entrenched unofficial networks run through diverse regions enforced by frequent transfers of managers, interaction in training seminars, benchmarking and best practices performance (Marks & Spencers, 2009). Conclusion The advent of globalisation fuelled by advanced communication and ICT infrastructure has made international trade and convergence easier and faster. This has spawned numerous benefits to the less developed nations and regions that however being tampered by adverse ecological degradation, exploitation of the poor in employment and resources, spread of infectious diseases among other negative effects. Nonetheless, globalisation led by MNCs has evolved into some tangible benefits including CSR and Fair Trade policies that have greatly assisted the needy particularly in the less developed countries. These initiatives have also compelled corporations like M&S to adopt the same policies as a strategic management program including better working conditions at source, organic products, environmental conservation and generally a more responsible strategy that conforms to sustainable development concepts. References Adamov, S. (2008). Case Study: Market Research Matures. Moscow: Research International. Anwar, S. (2002). Globalization and national economic development: Analyzing benefits and costs. Journal of Business and Management . BBC. (2006). Global crisis to strike by 2030. Retrieved May 26, 2010, from BBC Online: BBC. (2009). The History of Marks and Spencer. Retrieved May 27, 2010, from BBC Online: Bhagwati, J. (2004). In Defense of Globalization. Oxford, New York: Oxford University Press. Bothma, C. (2008). The difference Between Domestic and Export Marketing. Retrieved May 26, 2010, from Export Help: Britannica.com. (2009). Britannica Concise Encyclopedia:Globalization. Retrieved May 26, 2010, from Britannica.com: Broomhill, R. (2007). Corporate Social Responsibility: Key Issues and Debates. Adelaide, Australia: Dunstan Papers. BSR. (2009). BSR/GlobeScan State of Sustainable Business Poll 2009 Fact Sheet. BSR/Global Scan. Burns, B. W. (2003). Business and Economic Development - The Impact of Corporate Responsibility Standards and Practices. London: Institute of Social and Ethical Accountability. Businesslink.gov. (2009). Grow Your Business through Sustainable Innovation. Retrieved February 19, 2010, from Businesslink.gov: Cassidy, Joseph, Glenn Gutterman and Minh-Thu Pham (2003). The Promise of a Human Rights and Business Commission. Human Rights Policy Graduate Workshop (pp. Pg. VI-IX.). Princeton University: Woodrow Wilson School of Public and International Affairs. Chambers, D. (2008). The Applicability of Hart’s Sustainable Value Framework To Environmental Sustainability Activities in Institutions of Higher Education. Melbourne: The University of Melbourne. Chossudovsky, M. (1998). Financial Warefare Triggers Global Economic Crisis. Retrieved May 26, 2010, from twnside.org: Chossudovsky, M. (2003). The globalization of poverty and the new world order; 2nd ed. Global Outlook: Imprint Shanty Bay, Ont. . CIPD. (2009). Definition of Marketing. Retrieved May 26, 2010, from Chartered Institute of Marketing: Croucher, S. L. (2004). Globalization and Belonging: The Politics of Identity in a Changing World. New York: Rowman & Littlefield. Daulaire, J. (2006). Globalization and Health. Retrieved May 26, 2010, from Globalhealth.org: http://www.globalhealth.org/assets/html/drmed3.html Della Porta, D. (2006). The Global Justice Movement: Cross-national And Transnational Perspectives. New York: Paradigm. DFID. (2003). DFID and Corporate Social Responsibility. London: The Deparment of International Development . Earth Policy Institute. (2009). Natural Systems. Retrieved February 19, 2010, from Earth-policy.org: Ehrlich, P R and Holden, J P (1974). Human Population and the Global Environment. American Scientist , 62(3): 282–292. Fletcher, A. (2006). Marks & Spencer Dives into Ethical Consumer Market. Retrieved May 27, 2010, from Food Navigator.com (Europe): < http://www.foodnavigator.com/news/ng.asp?id=66333-marks-spencer-fairtrade-coffee> Globalissues.org. (2004). IMF and Structural Adjustment Policies. Retrieved May 26, 2010, from Globalissues.org: Graham, Richmond and Bertels, Stephanie (2006). A Strategic Sustainability Framework. Ann Arbor: University of Michigan. Grenade, W. C. (2004). Exploring the Implications of European Integration for The Anglophone Caribbean: From Lomé to EPA. Miami: The Jean Monnet/Robert Schuman Paper Series. Guardian. (2003). Seabed Supplies a Cure for Global Warming Crisis. Retrieved May 26, 2010, from Observer/Guardian.co.uk: Hill, C. L. (2003). International Business: Competing in the Global Marketplace: 4th ed. . Boston: McGraw-Hill. International Finance Corporation. (2004). Annual Report. Washington DC: World Bank. IPS. (2003). The Impact of Corporate Responsibility Standards and Practices. Retrieved March 27, 2010, from Institute for Social and Policy Studies Online: http://www.ips-dc.org/reports/top200.htm, Irwin, Elena G. and Jill Clark (2006). The Local Costs and Benefits of Wal-Mart. The Ohio State University. Kindall, Henery W and Pimentel, David (1994). Constraints on the Expansion of the Global Food Supply. London. Kuper, A. (2004). Harnessing Corporate Power: Lessons from the UN Global Compact. Development , Vol. 47 (3), Pg. 9-19. Locke, R. (2003). Note on Corporate Citizenship in a Global Economy. Retrieved March 29, 2010, from Sloan School of Management and Department of Political Science, MIT. Research Online: http://mitsloan.mit.edu/50th/pdf/corpcitizenship.pdf Lucas, Rosemary and Deery, Margaret (2009). Significant developments and emerging issues in Human Resource Management. Manchester: Manchester Metropolitan University. Marks & Spencers (2009) Marks & Spencers Annual Report 2009. Retrieved May 27, 2010, from Marks & Spencers: Matthews, V. (2002). Poor Choices for Forgotten Consumers: Marketing: In ignoring the less well-off, Advertisers Are Denying Themselves Access to a Lucrative and Loyal Market. Financial Times , Pg. 16. McCorquodale, R. (2009). Corporate Social Responsibility and International Human Rights Law. Journal of Business Ethics. Microsoft Encarta. (2009). Globalization. Retrieved May 26, 2010, from Microsoft Encarta Online: http://encarta.msn.com/encyclopedia_1741588397/Globalization.html Microsoft. (2009). Microsoft’s Top 10 Business Practices for Environmentally Sustainable Data Centers. Seatle: Microsoft Corp. Murray, A. (2004). Corporate Social Responsibility in EU. London: Centre for European Reform (CER). OECD. (2002). The Relevance of the OECD Guidelines for Multinational Enterprises to the Mining Sector and the Promotion of Sustainable Development. OECD Headquarters: Conference on Foreign Direct Investment and the Environment (pp. 1-22). Paris, France: OECD. OHCHR. (2010). Universal Declaration of Human Rights. Retrieved May 26, 2010, from United Nations Human Rights - Office of the High Commission for Human Rights: ONS. (2005). Annual Survey of Hours and Earnings. Retrieved February 18, 2010, from Office of National Statistics: www.statistics.gov.uk/StatBase/Product.asp?vlnk=13101 Potter, Edward E. and Sine, Marika Mccauley (2009). Human Rights and Sustainability: A Corporate Perspective (The Coca-Cola Company). New York.: Working Paper Series. Prahalad, C. (2005). The Fortune at the Bottom of the Pyramid. Eradicating Poverty Through Profits. Pennsylvania: Wharton School Publishing. Rose, Raduan Che and Naresh Kumar Subramaniam (2008). A Review On Individual Differences And Cultural Intelligence. The Journal Of International Social Research , Vol. 1/4, Pg. 505- 522. Snilstveit, B. (2010). Fair and Square: Better Market Share, More Benefits. New Delhi: International Initiative for Impact Evalution. Sterlicchi, J. (2005). How to Undertake a Climate Risk Assessment. Retrieved February 20, 2010, from Businessgreen.com: Stopford, J. (1998 ). Multinational Corporations. Foreign Policy , Winter i113 p12(1). The Law Society (2002). Corporate Social Responsibility: A view from the Law Society. London: The Law Society. The New York Times. (2008). Running Out of Planet to Exploit. Retrieved May 26, 2010, from The New York Times Online: UN. (2005). 2005 World Summit Outcome, Resolution A/60/1, adopted by the General Assembly on 15 September 2005. Retrieved February 19, 2010, from United Nations Online: UNCTAD. (1999). The Social Responsibility of Transnational Corporations. Geneva: United Nations . United Nations. (2004). Expert Group Meeting on International Norms and Standards relating to Disability. Retrieved May 26, 2010, from UN Department of Economic and Social Affairs: Waronwant.org. (2007). Growing Pains Report. Retrieved May 27, 2010, from Waronwant.org: World Bank. (2001). World Development Report 2000/2001: Attacking Poverty. Washington DC: World Bank. WTO. (2008). Policy Implications of Global Integration and the WTO. New York: World Trade Report 2008. Yahoo!Finance. (2009). Britains Q3 GDP Drop Revised Down. Retrieved May 26, 2010, from Yahoo: Zadek, S. (2004). The Five Steps of Corporate Responsibility. Harvard Business Review , Vol. 82, No. 12. Appendix Table 2 PESTLE Analysis Matrix Political Economic Political interference in this industry is low. Risk of adverse legislations is not very high. However, adverse legislation from other countries and sourcing from suppliers who use unethical means of production like child labour. Inter-country relationships in countries of operation are good. However, relationship with sourcing countries may not be very good. No price regulation or control is envisaged in this industry. M&S performance is directly proportional to the level of consumer spending, which is dependent on the economy. M&S business is globally located except minimal presence in North and South America. Thus, geographical diversification is quite comprehensive. Seasonality/weather issues are expected to have minimal effect on the business. The company seems to have a robust internal cash flow situation with increasing revenues and profit having overcome its financial problems. Social Technological Consumer attitudes/ opinions and media views are generally positive. The company invests in employee training and development; staff engagement seems to be high. M&S has a strong operations team. Environmental issues have now become part of the company’s strategic undertakings. Fair-Trade initiatives also implemented The company relies on innovative products for its mass-market merchandise. As such, the company needs to provide a technologically research and development (R&D) facilities. The company has now changed its strategies from high-end customers to more mass-market products thus will need new technology. Legal Environmental Litigation from unhappy customers is a risk factor. EU and other international guidelines affect M&S strategies in international operations. M&S needs to be sensitive to its environment. However, no significant threat is detected in this area. Strategic tie-ups with other organizations critical for increased revenue base Read More