13 minute read
Evolving ethics: Retailers must
by Mediateam
Evolving ethics
R e t a i l e r s m u s t a l i g n t h e i r s u s t a i n a b i l i t y a n d e t h i c s m i n d s e t w i t h t h e n e x t g e n e r a t i o n o f s p e n d e r s , w r i t e s B r i a n W a l l a c e, r e l a t i o n s h i p d i r e c t o r , B a r c l a y s B a n k I r e l a n d
The Irish retail sector is no stranger to the transformative impact of sustainable and ethical trading that has been informing the business models of consumer goods over the past decade. Whether responding to the urgent environmental challenges of our time or putting more fair and equitable working practices in place, retailers have made great strides in adapting to these evolving imperatives.
We are now seeing a marked and steady shift among consumers and retailers towards an even greater prioritisation of sustainable and ethical standards when they make purchases or sell goods, and grocery retailers are at the forefront of this transformation. Our own research has shown that supermarkets are the highest regarded retail segment amongst consumers for both ethical and sustainability credentials, with others such as fashion retailers trailing.
However, the discourse is no longer simply dominated by the efficient use of plastics, dedicated recycling regimes or use of renewable energy. Attitudes have matured and hardened among a growing consensus that transparency and authenticity, rather than cosmetic moves to ‘go green’, are needed in the effort to face down the risks to our collective future.
Ethical excellence
Ethical excellence in the way retailers conduct business is also rapidly becoming a nonnegotiable requirement for any business serious about its long-term place in the market. A significant indicator of this shift is the step-change we are seeing in supply chain management philosophy. Businesses are increasingly aware that they are being held accountable by shareholders, employees, investors and regulators as well as their customers, and our own engagement with retailers has revealed the efforts being made to achieve end-to-end transparency across the supply chain.
Most importantly, this needs to be done in an authentic manner that demonstrates a collective integrity, with retailers using a range of options from incentives to contract termination to achieve it. The pressure to act ethically and sustainably is having a sizeable commercial impact on the grocery industry’s supply chain, with more supplier contracts cancelled in the past 12 months than ever before, as retailers seek to improve their credentials, with the use of unsustainable materials the main reason (39%), followed by unfair working hours (37%) and lack of accreditation to an ethical or sustainable membership body (32%).
No-compromise approach
It is increasingly becoming standard practice that where social and ethical performance shortfalls are spotted, suppliers are given action plans with tight deadlines to rectify their operations, or risk being dropped from the supply chain.
We’re also beginning to see this near no-compromise approach being embraced by consumers. While overall they will prioritise quality and price as key factors in their purchasing decisions, we can see how the younger generation in particular are demonstrating an increased desire to purchase only goods that meet their standards of ethics and sustainability.
In September 2020, fashion retailer H&M took steps to end a supplier relationship following allegations that it was benefitting indirectly from forced labour in the manufacture of its clothing. The reputational damage was potentially significant, as evidenced by the amount of media coverage. It resulted in the company carrying out thorough checks across its factories in China to ensure forced labour was not being used in production.
Appealing to Gen Z and Millennials
Doing nothing may put business reputation at serious risk, but similarly, doing only the bare minimum to appease authorities could be just as damaging. So, the cost-benefit lesson that retailers can learn for the future is that efforts made today will maintain their appeal to the increasingly influential customer base that is represented by Generation Z and younger Millennials.
For today’s customer, the purchasing decision is increasingly influenced by factors outside a basic need or desire for the product. And while this is not a recent phenomenon, our research has shown a distinct shift in thinking towards ethical and sustainability credentials, with recyclable packaging, fair wages for staff, and fair working hours for staff the top three ethical and sustainable business practices expected by consumers today.
Our research has also shown how the 35-44 age group is most socially conscious, with 60% valuing ethical credentials as important. 41% of those aged 16-24 (Gen Z) are most concerned about sustainability when choosing where to buy, compared with 22% overall.
In a scenario where their favourite retailer was to fall short of ethical or sustainable standards, 66% of 16-24-year-olds would stop shopping there due to ethical concerns, and 68% of 25-34-year-olds would stop shopping there due to sustainability concerns.
Barclays’ research shows recyclable packaging, fair wages for staff, and fair working hours for staff are the top three ethical and sustainable business practices expected by consumers today
Pricing
Pricing decisions may also have a part to play in the drive by retailers to enhance their ethical and sustainable credentials, and our research has shown a noticeable willingness among some consumers to pay more for products and services that meet their expectations. Retailers show a level of confidence, too, that they can leverage price to reflect higher standards. However, any consistent evidence of a trend towards a sustainable or ethical premium may not become apparent until the spending power of the generation most enthusiastic about it –Generation Z – becomes a more significant part of the retailer’s customer base. As this group builds up a critical mass of disposable income, and therefore influence, it is likely to carry a strong, socially aware mindset at every opportunity to purchase for many years to come.
For retailers, both the challenge and the opportunity revolve around the same factor; staying relevant with the consumer. Retailers need to think long term and should be operating with an eye on the expectations of those who will dominate spending patterns for the next 20 years. They must boost ethical and sustainable integrity across their supply chains and should look to evolve their green strategy, exploiting basic efficiencies and delivering root-and-branch strategies where required. Finally, retailers must embrace ethics and nurture a culture of change where teams are motivated by positive change and make a virtue out of holding their environmental, social, and governance (ESG) policies to account. ■
NEWS Musgrave MarketPlace launches recruitment drive for suppliers to join first-of-its-kind B2B online wholesale platform
100% Irish-owned national wholesaler, Musgrave MarketPlace has launched a recruitment campaign which provides Irish suppliers with a unique opportunity to sell their products to a sizeable B2B audience.
With over 50,000 B2B customers, Musgrave MarketPlace launched a new eCommerce platform earlier in the year, and is now launching its Extended Range, supported by leading enterprise SaaS platform, Mirakl.
Alongside a core range of over 14,000 products, Extended Range is a specially curated range of products which trusted suppliers can sell on the Musgrave MarketPlace ecommerce platform –including everything from artisan Irish food and beverage products to restaurant furniture, packaging and equipment. With an ambition to have over 12,000 Extended Range products by 2024 alongside the core range, Musgrave MarketPlace customers will be able to get everything they need to run their business in one place – a true one-stop-business-shop.
As the proposition develops, Extended Range will allow Musgrave MarketPlace to offer tens of thousands of products to customers, and support small Irish producers to market, as well as providing innovative new food and non-food products without having to add to their physical footprint. Customers can order Extended Range products from these trusted suppliers via their Musgrave MarketPlace account and products will be delivered on behalf of Musgrave MarketPlace directly from the supplier, with dedicated customer service on hand to support.
At a global level, B2B eCommerce is expected to continue expanding at a rapid compound annual growth rate (CAGR) of 18.7% from 2021 to 2028. In recent years, B2C shopping habits have influenced the way businesses purchase. B2B buyers have come to expect the same efficient online shopping experience they have as B2C consumers; they are now demanding a simple, digitally enabled, aggregate buying experience, putting pressure on wholesalers to offer more products across more categories than ever before.
To meet this customer need for all their product requirements in one location, Musgrave MarketPlace partnered with Mirakl, the industry’s first and most advanced enterprise marketplace SaaS platform. Mirakl has supported over 300 of the world’s most trusted brands, including Astore by AccorHotels, Carrefour, Changi Airport, Debenhams, The Kroger Co., Leroy Merlin, Maisons du Monde, Metro, Superdrug and Toyota Material Handling, to create their marketplace SaaS platforms.
“As a seventh-generation Irish family-owned business, supporting local really matters to us. Extended Range will provide a route to market for local suppliers,” said Michael McCormack, managing director, Musgrave MarketPlace.
“I’d encourage those local suppliers to sign up and take advantage of the opportunity to become an Extended Range trusted supplier.”
Registration is now open for suppliers to create an account and begin selling their products. Suppliers interested in selling via Musgrave MarketPlace Extended Range can e-mail extendedrange@musgrave.ie or visit
www.musgravemarketplace.ie/page/
extendedrange. ■
Musgrave MarketPlace is urging local suppliers to sign up to its online wholesale platform to sell their products to an established B2B client base of more than 50,000 customers
E n s u r i n g e m p l o y e e r e t e n t i o n
A higher salary is far from the only motivating factor that can encourage talented staff to remain with their current employer. Here, The HR Suite’s Caroline Reidy outlines important policy considerations which mark an employer out as one worth sticking with in the long term
CAROLINE REIDY
managing director, The HR Suite
Staff retention may be described as an employer’s efforts to manage staff turnover and retain their valuable employees. As businesses return to normal operations, retaining existing employees and sourcing new hires have become major issues in all business sectors. To combat such issues, many companies have begun offering more attractive pay rates and benefits. However, offering higher pay rates to existing staff members, as well as potential candidates, may not be sustainable for many organisations in the long term. To ease the challenges associated with staff retention, businesses can introduce simple processes that will help retain current employees.
Flexible working
The pandemic has changed the world of work as many employers are now becoming more flexible with their working approach and have introduced, or are planning to introduce, a hybrid work model. Hybrid working is defined as a flexible working model where employees can spend a certain amount of their time working remotely and a certain amount of time in their place of work. The introduction of such a model will not only attract new employees but also aid retention within a company as hybrid working delivers the benefits of work-life balance.
additional annual leave
The introduction of retention strategies, such as additional annual leave, can be seen as an attractive benefit that would aid the retention of employees within a company. For example, offering employees two personal days per calendar year. Personal days are a form of employee benefit that a company can offer and can be used by an employee as rest days or to attend to matters in their personal life.
performance appraisal system
Introducing an effective performance appraisal system can also improve retention. This can be seen as a good opportunity for employees to have a one-to-one discussion with their direct manager to discuss how everything is going and to set goals for the coming period. The introduction of such a system also creates opportunities for discussing further development potential which can be linked to the strategic plan for the business and also succession planning for key roles.
health and wellbeing
As employees are a company’s most valuable asset, it is important for employers to invest in the health and wellbeing of their employees. Health and wellbeing initiatives can be perceived by many in the working world as being more valuable than monetary benefits. Organisations can ensure that staff feel supported by offering an Employee Assistance Program (EAP), offering subsidised Health Insurance or the introduction of an annual health check clinic.
employee engagement
Another non-monetary process that can be put in place to improve retention is the introduction of an engagement survey with your employees on a quarterly basis. This can be done anonymously through electronic surveys which would allow employees to be honest with their feedback, for example, about areas they feel the company needs to improve on.
personal development plans
Having a culture of learning, development and promotion doesn’t have to be costly. The implementation of a personal development plan for employees provides an employee with support and encouragement which will ultimately improve their level of productivity and motivation. When such a plan is put in place for an employee, the likelihood of the organisation retaining this employee is enhanced as an employee can visibly see the direction of their career path.
employee recognition
Recognising the effort of all employees within a company can greatly improve motivation as well as the retention of top talent. There are lots of activities employers can arrange such as foodie Fridays, yoga classes and fun runs. As well as this, having a social club committee can help to organise events and make sure everyone feels involved. The introduction of a peer-to-peer recognition programme can also strengthen retention within a company. The introduction of such a programme has the power to strengthen morale and improve the company culture as employees are recognised for their efforts made. As well as this, the use of a company’s social media forums can be used as an effective tool for showing employee appreciation in a way that is low in cost yet highly visible.
exit interviews
Exit interviews are a good way of collecting important feedback for employees who are leaving the business. They help employers rectify any areas of concern as they can identify trends for employees leaving. Exit interviews would not only aid retention but also have the potential to increase employee engagement and productivity as such an interview provides employers with a deeper insight into the workplace culture and solutions to how improvements can be made.
To conclude, as costs can be seen as a prime challenge, it is imperative for an organisation to tailor their retention strategies to suit the company’s budget. ■
Exit interviews help employers rectify any areas of concern and identify trends for employees leaving, writes Caroline Reidy
CONTACT THE HR SUITE:
If you require further information or advice on HR, please do not hesitate to contact The HR Suite’s consultants on (01) 9014335 or (066) 7102887 or email the company at info@thehrsuiteonline.com.
