Marks and Spencer 2010 Annual Report Download - page 79

To find out more, visit marksandspencer.com/annualreport2010 75
Operating & Financial review p16 
Governance 
Financial statements p78 
Equal opportunities
The Group is committed to an active Equal Opportunities Policy
from recruitment and selection, through training and development,
performance reviews and promotion to retirement.
It is our policy to promote an environment free from
discrimination, harassment and victimisation, where everyone will
receive equal treatment regardless of gender, colour, ethnic or
national origin, disability, age, marital status, sexual orientation or
religion. All decisions relating to employment practices will be
objective, free from bias and based solely upon work criteria and
individual merit. The Company is responsive to the needs of its
employees, customers and the community at large and we are an
organisation which uses everyone’s talents and abilities and where
diversity is valued. For example, we are one of the few major
retailers or companies to operate without a Normal Retirement Age
and are experiencing a number of employees continuing to work
with us past the state retirement age.
Employees with disabilities
It is our policy that people with disabilities should have full and fair
consideration for all vacancies. During the year, we continued to
demonstrate our commitment to interviewing those people with
disabilities who fulfil the minimum criteria, and endeavouring to
retain employees in the workforce if they become disabled during
employment. We will actively retrain and adjust their environment
where possible to allow them to maximise their potential.
We continue to work with external organisations to provide
workplace opportunities through our innovative Marks & Start
scheme and by working closely with JobCentrePlus.
Essential contracts or arrangements
The Company is required to disclose any contractual or other
arrangements which it considers are essential to its business.
We have a wide range of suppliers for the production and
distribution of products to our customers. Whilst the loss of or
disruption to certain of these arrangements could temporarily
affect the operations of the Group, none are considered to be
essential, with the exception of certain warehouse operators
and the provider of the Company’s e-commerce platform.
Creditor payment policy
For all trade creditors, it is the Group’s policy to:
agree the terms of payment at the start of business with that −
supplier;
ensure that suppliers are aware of the terms of payment; and −
pay in accordance with its contractual and other legal obligations. −
The main trading company, Marks and Spencer plc, has a policy
concerning the payment of trade creditors as follows:
general merchandise payments are received between 19 and 26 −
days after the stock was delivered;
food payments are received between 18 and 25 days after the −
stock was delivered; and
distribution suppliers are paid monthly, for costs incurred in that −
month, based on estimates, and payments are adjusted quarterly
to reflect any variations to estimate.
Trade creditor days for Marks and Spencer plc for the year ended
3 April 2010 were 18 days, or 12 working days (last year 20.5 days,
or 13.7 working days), based on the ratio of Company trade
creditors at the end of the year to the amounts invoiced during the
year by trade creditors.
Market value of properties
The last formal valuation of the Group’s properties was carried out
in September 2006. Taking into account movements in the Group’s
property portfolio since that date, the directors are of the opinion
that the market value of the Group’s properties, at 3 April 2010
exceeded their net book value (including prepayments in respect
of leasehold land) of the fixed asset and leasehold properties by
approximately £0.8bn.
Charitable donations
In line with our Plan A commitments, during the year, the Group
made charitable donations to support the community of £13.2m
(last year £12.2m), excluding management costs and memberships.
These principally consisted of cash donations of £5.2m (last year
£5.2m) which included Breakthrough Breast Cancer, The Prostate
Cancer Charity, Groundwork, WWF, Shelter, our Marks & Start
programme and local community donations. We also donated
£1.6m (last year £1.3m) of employee time, principally on fundraising,
Marks & Start and school work experience programmes, and stock
donations of £6.3m (last year £5.7m) to a variety of charities
including Oxfam, Newlife Foundation for Disabled Children
and Shelter.
We also had a particularly successful year supporting the raising
of extra funds of £7.7m (last year £4.8m) for our charity partners.
This principally consisted of cash raised through the fundraising
activities of our 125 Year Anniversary and by generating funds for
our charity partners such as Groundwork and funds raised through
the sale of stock donations to Oxfam from The Clothing Exchange.
Political donations
No political donations were made during the year ended 3 April
2010. Marks & Spencer has a policy of not making donations
to political organisations or independent election candidates or
incurring political expenditure anywhere in the world as defined in
the Political Parties, Elections and Referendums Act 2000.
Post balance sheet events
On 12 May 2010 Marks and Spencer Group plc announced a
£800m funding plan for its UK defined benefit pension scheme.
The funding plan includes the following contributions from
Marks & Spencer:
Cash contributions of £35m per annum for the first three years −
of the funding plan increasing to £60m per annum until 2018.
This has a present day cash value of £376m.
£300m of value through the granting of a further interest in the −
Marks and Spencer Scottish Limited Partnership. This new
interest entitles the pension scheme to a fixed annual distribution
of c.£36m for 15 years commencing in 2017 and a capital sum
in 2031 equal to the lower of £350m or any funding deficit in the
pension scheme at that point in time.
£124m of value through the transfer of assets from existing −
US$ debt hedge contracts held by Marks and Spencer plc.