The Marketplace Responsibility Principles

WHAT ARE THE MARKETPLACE
RESPONSIBILITY PRINCIPLES?
Corporate Responsibility is increasingly about
how a company makes its money, not whether it
gives some of it away. There is a pressing need to
better define what responsible business practice
means. Achieving responsibility in the marketplace
is characterised by tough dilemmas, grey areas,
and real challenges in managing and reporting
performance.
In response to these challenges, the Marketplace
Responsibility Principles have been developed by
the Marketplace Taskforce, a group of 10 global
and UK companies chaired by Mike Clasper,
former CEO of BAA plc, as a guide for implementing
responsible business practice in medium to large
companies.
There are two parts to the Principles, one guiding
key marketplace relationships, and the other
focused on the behaviours that support companies
in managing these relationships.
The Principles have been subject to tough scrutiny
from CEO's, marketing directors, corporate reponsibility
professionals and individuals from the socially
responsible investment and NGO communities
through the course of a rigorous consultation
process.

WHO SHOULD READ THEM?
Individuals within large to medium sized companies who want
to assess their performance in their marketplace. This may be
the CEO, marketers, innovators, public affairs or corporate
responsibility directors.
HOW DO YOU USE THEM?
The Principles act as a framework for companies to be able to
assess their marketplace strategies. They provide companies
with a structure to identify corporate responsibility issues
within the main marketplace relationships: with customers,
suppliers and governments, as well as helping to assess the
impact of products and services.
SIGNING UP?
We are asking BITC members to sign up to the set of Principles
and make a commitment to reflect the marketplace issues
within their CSR reporting.

A number of companies have already signed up to the
Principles. Please visit www.bitc.org.uk/marketplace to see the
full list.

THE
MARKETPLACE
RESPONSIBILITY
PRINCIPLES

THE MARKETPLACE RESPONSIBILITY PRINCIPLES
Respect your customers
Support vulnerable customers
Seek potential customers within excluded groups
Manage the impact of product or service
Actively discourage product misuse
Actively manage responsibility in your supply chain
Treat suppliers as partners
Work with the rule makers
Have consistent standards
BEST PRACTICE FOR MARKETPLACE RESPONSIBILITY
Anticipate trends
Execute with skill
Place it at the heart of the business strategy
Make it part of the culture
Encourage and motivate responsible behaviour
Make it mainstream
Share best practice within the business
Be consistent

RESPECT YOUR CUSTOMERS
Treat customers honestly and with
integrity. Give full information about
your product or service, and honour
your promises. Avoid false statements
or other irresponsible marketing.
Respond to complaints. See customers
as having a legitimate interest in your
business over issues and concerns beyond
the direct commercial relationship.
SUPPORT VULNERABLE CUSTOMERS
Understand which of your customers may be
unusually adversely affected by the product
or service, or by interruption of supply. Take
steps to mitigate these effects.

SEEK POTENTIAL CUSTOMERS
WITHIN EXCLUDED GROUPS
If appropriate, identify whether your product or service would provide real
benefit for people that are currently excluded from it, whether through poverty,
geography or disability.
MANAGE THE IMPACT OF PRODUCT USE
Take account of social/environmental impacts as part of the
product development process. Aim to identify unintended impacts
of product or service as used. Seek opportunities for new products
to address social/environmental problems. Address the impact of
the product when it reaches its end of life.

ACTIVELY DISCOURAGE PRODUCT MISUSE
Identify the potential for harm created by misuse of
your products. Aim to prevent or reduce misuse through
product design or by influencing customers.
ACTIVELY MANAGE RESPONSIBILITY IN
YOUR SUPPLY CHAIN
Understand and encourage improvement in the business processes
operated by suppliers. Identify and prioritise areas of risk, poor
performance and factors outside the company’s control that may
affect its operations.

TREAT SUPPLIERS AS PARTNERS
Establish an open and honest dialogue
over mutual concerns and conflicts.
Deal honestly and fairly and honour
agreed terms of contract. Provide
education and resources. Establish
clear performance targets.
WORK WITH THE RULE MAKERS
Seek to influence legislation or regulatory regimes in ways which
help serve the public interest relevant to the business. Ensure that
the company's activity is transparent.

HAVE CONSISTENT STANDARDS
Seek to enforce standards of behaviour in places where
laws covering minimum standards are absent or not
enforced. Be sensitive to local business operating environments.

EXECUTE WITH SKILL
The company ensures that responsible business practice is integral to
the operation of the business in the marketplace and that skill in execution
in this is of equal importance to all other aspects of the business.
PLACE IT AT THE HEART OF
THE BUSINESS STRATEGY
The business strategy is built around the achievement of long term,
sustainable goals. It is flexible enough to protect the business against
short term pressures and capable of adapting to future needs.

MAKE IT PART OF THE CULTURE
Staff throughout the organisation understand and
accept the role of responsible practice in delivering
the business goals. The organisation encourages staff
to challenge ‘business as usual’, and so nurtures a culture
supportive of change.
ENCOURAGE AND MOTIVATE
RESPONSIBLE BEHAVIOUR

The organisation ensures that good behaviour is encouraged
through rewards and poor behaviour is not. This applies
both internally and externally.

MAKE IT MAINSTREAM
Apply new standards and innovations as much as possible across the full
range of products, rather than developing ‘ethical’ niche products.
SHARE BEST PRACTICE
WITHIN THE BUSINESS
The business operates as a ‘learning organisation’ and is
responsive to external change.

BE CONSISTENT
The organisation has a track record in applying its values
and honouring its commitments over time. Integration of
responsible business practice through how the business
operates in the marketplace is a commitment of the
company's senior management and it does not disappear
with a change of leadership at the top.
ANTICIPATE TRENDS
The company constantly assesses current issues
and attitudes in order to anticipate the trends
affecting its business. It uses this information
to adapt and develop its products/services
accordingly. It aims to lead the market
rather than follow.

THE
MARKETPLACE
RESPONSIBILITY
CASE
STUDIES
Six companies have been interviewed and analysed
about how they manage key marketplace responsibility
issues. The results have been compiled into a collection
of in depth case studies which give you information about
their processes and key learning points.
Here are some vignettes.

Taking care of the vulnerable: the Camelot Games Design Protocol
How does Camelot produce fun, engaging games, whilst also promoting
responsible play? While the majority of lottery players have no problem
with ‘having a flutter,’ some groups are especially vulnerable to their products.
Learn how Camelot has developed a Game Design Protocol, where new games
are tested for their potential impact on these vulnerable groups.
How Waitrose raised the bar for the supply chain
Waitrose has established a set of ‘Responsible Sourcing Principles’, outlining
its expectations of its suppliers on issues such as labour standards, environmental
management and animal welfare. But has this really helped to reduce the risk in
their supply chain? In addition, the Waitrose Foundation is helping to raise standards,
by providing financial support to improve the welfare of farm workers.
What makes 3M one of the most sustainable innovators in the world?
3M has a history of producing innovative products that help their customers reduce their
environmental impacts. Examples include: a film for LCD displays that makes the screens
20-30% more energy efficient; a non-flammable, non-toxic and biodegradable paint;
granules for home roofs that keep the home cool with less energy consumption. Read the
full case study to understand how this has impacted their business.
How Tata won its reputation for integrity
Within a business environment where bribery and corruption are routinely tolerated and
expected, Tata companies have established a successful model based on a set of values
that require the highest standards of integrity. Tata Group explains how they are so well
known for their consistency in neither paying nor receiving bribes, that they are now
never asked.
How Marks and Spencer leads the way in customer relationships
Marks and Spencer takes a proactive approach to dealing with customer issues,
sometimes even taking an activist approach to corporate lobbying on certain issues.
Examples include developing alternatives for the chemicals used on T-shirt designs and
using free range eggs in food products. But how do you know when the timing is right to
communicate about these issues with your customers?
How Fonebak created a new market from scrap
Fonebak has worked with the network providers to collect unwanted mobile phones to be
tested, refurbished, and sold to developing economies at a cost to provide more affordable
communications. So far Fonebak has refurbished over 4 million phones but how did they get there?
To read the full case studies please go to www.bitc.org.uk/marketplace

MARKETPLACE TASKFORCE MEMBERS
Charlotte Oades
Mike Clasper
Corporate Identity
Former CEO
Public Affairs and Communications
BAA (Chair)
Coca- Cola EU Group
Gary Bullard
Richard Reid
President
Senior Partner
BT Global Business & Services
KPMG
Bruce Haines
Dianne Thompson
CEO
CEO
Leo Burnett
Camelot
Phil Hodkinson
Adrian Wyatt
Group Finance Director
CEO
HBOS
Quintain Estates and Development
Centrica and Microsoft also
contributed to the development
Gerry Murphy
of the Marketplace Responsibility
CEO
Principles
Kingfisher

NOTES

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