Page 3 CSR: part of our DNA


Corporate social responsibility (CSR) is, to John Lewis, an essential part of our DNA. Sustainable products, mutually beneficial supplier partnerships, resource-efficient shops, good customer service they're all part of how we do things, each and every day. Such responsibilities are embedded into our business, and because we do not have external shareholders, we can make long-term decisions about how we source our products, run our operations and support our local communities for the best interests of all our stakeholders. We also do all these things and much more besides, as this report will demonstrate because they are the right thing to do and because they make good business sense.

As part of the Partnership's ambitious plans to double its size over the next decade, we aim to open a number of new John Lewis shops. The majority of them will be built in town centre locations, reflecting our support for city centre regeneration, and all will be constructed in line with our Sustainable Construction Framework, which ensures the principles of sustainability are adopted at every stage of every construction or refurbishment project.

In addition to building sustainable shops, we need to run all aspects of our business as efficiently as possible. So going forward from our current position, we are exploring further ways to reduce the carbon emissions from our commercial fleet, the packaging we use and the waste we generate. We are also committed to helping customers to do their bit too, which we do through providing services such as recycling beds, mobile phones and white goods. To push the climate change agenda even further, we participate in collaborative initiatives with key organisations such as the British Retail Consortium, the Retail Energy Forum, Business in the Community and the London Development Agency.

As a business with a complex supply chain, we fully recognise the importance of sustainable sourcing. We are in the process of extending our timber sourcing policy, from garden furniture which should all be independently certified to Forest Stewardship Council standards by the end of 2009 to cover all wood-based products. And in support of customers' growing interest in environmental issues, our 'We Can Make a Difference' promotion in the spring highlighted the hundreds of responsible products we sell, from Fairtrade and organic to energy-efficient and recycled products.

Despite progress in such areas, there are many challenges ahead so we cannot rest on our laurels. For example, two of our manufacturing businesses Stead McAlpin, our textile and dyeing business, and textile weavers JH Birtwistle had been struggling for some time, so in September 2007, we made the not-inconsiderable decision to sell them. The sale will improve their chances of profitability as individual businesses and provide employees with the best possible employment prospects going forwards.

Like our competitors, we are also facing a tougher than expected trading environment, but I am confident that, despite this, we will continue to outperform the retail market. That is in no small part due to the outstanding efforts of our 28,000 Partners, which have been recognised externally through several awards and accolades. Being named Britain's favourite retailer yet again in Verdict's customer satisfaction index and coming second (to our sister company Waitrose) in a similar survey by consumer magazine Which suggests our customers still think we're performing well. In addition, being voted the 'most respected retailer' by over 1,000 chief executives and board members from across the retail sector suggests our peers' perceptions of us are equally favourable.

As with last year's Partnership-wide report, this publication focuses on the areas our Partners, customers, suppliers and other stakeholders see as most important. By confirming what we stand for, sharing what we have achieved so far and outlining our future priorities, in an open and balanced way, we hope this report demonstrates how our performance on these issues 'stacks up' in this crucial element of the John Lewis business.

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