Released on: November 6, 2007, 7:23 am

Press Release Author: Covalence

Industry: Retail

Press Release Summary: Marks & Spencer and Wal-Mart drive the ethical agenda of
Retailers, which has been dominated by environmental issues in 2006-2007, states a
report released by Geneva-based ethical reputation research firm Covalence,
Covalence Retail Industry Report 2007.

Press Release Body: Marks & Spencer and Wal-Mart drive the ethical agenda of
Retailers, which has been dominated by environmental issues in 2006-2007, states a
report released by Geneva-based ethical reputation research firm Covalence,
Covalence Retail Industry Report 2007.

Marks & Spencer is a proactive leader: it appears in many positive news items and
maintains a remarkably low level of demands (negative news items). Wal-Mart, the
largest retailer in the world, is more of a reactive leader: having been a central
target of critical campaigns for many years, in 2006 the company has started an
impressive move towards Corporate Social Responsibility (CSR), as the EthicalQuote
reputation curve shows.

From the bottom (Wal-Mart) and from the top (Marks & Spencer) of the ranking, the
two companies are setting the pace to the whole industry. Those which are neither
proactive nor reactive will be left behind as the industry continues to move
forward.

Comparing the EthicalQuote curves of ten industries, the Retail industry has
sensibly improved its reputation recently, after years of criticisms due to labour
issues within supply chains. Eight out of the top ten positive issues registered for
2006 - 2007 deal with the environment. These eight issues are: Carbon footprint,
green, or "Eco Options" labels on products; Eco-textile clothing line; CO2 Emissions
cuts in stores or supply chains; Marks & Spencer's "eco-plan" includes going carbon
neutral; Pushing suppliers to improve sustainability - Packaging Scorecard;
Companies reduce the use of conventional plastic bags; Environmentally responsible
products.

Major negative issues affecting the ethical reputation of retailers are dealing with
working conditions: International workplace abuses or low wages in the supply chain;
Anti-union tactics or violations of right to organize; Ratio of CEO pay to worker
pay; Companies forcing employees to work through breaks; Unethical behavior; Low
wages; Unfair working conditions at Bangladeshi factories; and Violation of ETI due
to worker exploitation in supply chain.

We can suppose that the ethical reputation of Retailers will continue to progress as
long as the current environmental wave lasts. Alternatively, a possible climate
fatigue and the return of labour issues important in the public scene could bring
difficult times to Retailers. There is a serious risk of being perceived as
trading-off, or hiding labour issues behind green credentials (perception of
greenwashing). Such a perception could harm years of efforts in reputation-building.
Companies able to demonstrate a wide, balanced spectrum of CSR commitments in the
social, economic and environmental dimensions will obviously be better equipped to
respond to this risk.

More information on Covalence Retail Industry Report 2007:
http://www.covalence.ch/docs/Extract_Covalence_Retail_Industry_Report2007.pdf
http://www.covalence.ch/docs/Retail_IndustryReport2007_OfferOrderform.doc

Geneva-based Covalence tracks the ethical reputation of multinationals by sourcing
information from companies, the media and civil society. For further information,
please contact us at +41 (0)22 800 08 55; antoine.mach@covalence.ch



Web Site: http://www.covalence.ch

Contact Details: Covalence SA 1, avenue Industrielle, CH-1227 Carouge Geneva
Switzerland
Tel: +41 (0)22 800 08 55 ; Fax: +41 (0)22 800 08 56
US Rep Office, 20 Riverside Street, Apt. 25, Watertown MA 02472, USA, tel +(1) 617
429 4758
info@covalence.ch ; www.covalence.ch ; www.ethicalquote.com