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Corporate Social Responsibility

Vitec has a considered approach to Corporate Social Responsibility surrounding its business activities worldwide. The Group continues to assess its responsibilities at local, national and global levels. We recognise that Corporate Social Responsibility is central to sustainable growth, particularly as investors, customers and other stakeholders increasingly consider these non-financial issues in decision making. We want to be in the best position possible to minimise risks and identify and capitalise on the opportunities presented.

Key areas of focus for Vitec’s Corporate Social Responsibility are the environment, business ethics and human rights, health and safety and employment and community giving.

Specific responsibility for these matters has been delegated to senior employees within each of the Group’s Divisions. Reviews by local management take place at each location and reports are made of the major risks in these areas to the Company’s Board, through the Group Chief Executive who has ultimate responsibility for these matters. These reports identify risks, the current measures being taken to control them and the steps being taken to eradicate or minimise their effect in the future.

We report on our gas, electricity, water and oil consumption and accident statistics since these are the principal areas where our business impacts the environment and the communities within which we operate. The section on Key Performance Indicators and Other Measures on pages 22 and 23 sets out our performance in 2009 compared to 2008.

We are keen to receive feedback from all of our stakeholders and we will use their comments and views to shape our future Corporate Social Responsibility policies and practices. Please get in touch with us at info@vitecgroup.com with your comments.



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Our policies and actions

Climate change and our environmental impact

Policy
The Group’s energy usage is closely monitored and the reduction of energy, water and waste used or generated throughout the Group is promoted, with the aim of reducing the environmental impacts of its operations, products and services. The approach taken to achieve this common aim varies throughout the Group depending on the nature of the work carried out at a business unit and the stage of development of a business unit’s environmental management systems.

The Group is not a big consumer of electricity compared to many other companies, however it is important that we monitor its usage and ensure that it is used efficiently both from a cost and environmental perspective.

New products introduced to our markets are developed to ensure they are energy efficient both in their production and, so far as they are able, in their use.

Crisis management plans are in place at all our operations and more detailed business continuity plans are being developed at our principal locations to ensure, so far as possible, that the effect on our operations is minimised in the event of a major occurrence caused by external events including climate change.

We strongly encourage recycling of waste products, materials, paper and all other items that can be recycled. We encourage our businesses to reduce the quantities and thickness of cardboard and use alternative packaging wherever possible.

Actions
Each of our sites around the Group has an environmental management system based on three main principles:
  • To identify materials, processes, products and wastes that cause or may cause pollution and to implement measures to avoid, reduce or control pollution where technically and economically viable.
  • To comply with applicable environmental laws, regulations, codes of practice and other environmental requirements. To achieve such compliance we develop and maintain management systems for identifying relevant requirements and for monitoring the performance of related activities.
  • To continually enhance and improve our environmental management systems to ensure they are appropriate and effective.
Anton/Bauer, our battery and charger business based in the US, continues to be an active member of the battery recycling scheme in conjunction with the Rechargeable Battery Recycling Corporation (RBRC). In 2009 Anton/Bauer forwarded to RBRC 11,496kg (2008: 18,439kg) of nickel cadmium, lithium ion and nickel metal hydride batteries returned to the Company for recycling. The decrease is believed to be associated with customers holding onto batteries for longer due to the economic downturn. Anton/Bauer actively encourages its customers to recycle batteries and is a member of the Portable Recharging Battery Association whose mission is to provide leadership in obtaining consistent domestic and international solutions to environmental and other selected issues affecting the use, recycling and disposal of small sealed rechargeable batteries.

The Services Division, based in Burbank, California is a rental operation and consequently its scope for reducing emissions and usage of resources that is already low is very limited. In 2009, the Division streamlined timekeeping and record keeping systems within its HR Department, eliminating timesheets and other HR forms for over 150 employees.

The Imaging Supports business within the Imaging & Staging Division invested E7,000 in 2009 with Enel Energy SpA for the “Energia Pulita” programme, whereby all energy was supplied to its facilities in Bassano and Feltre in Italy from certified sustainable and renewable sources under the Renewable Energy Certificates System.

The Group’s gas, electricity and water usage over each of the last five years is set out in the table below. The figures in parentheses are the consumptions of gas, electricity and water (as appropriate) per £1.0 million of the Group’s revenue.

Year Gas Electricity Water Group Revenue
2005 7,092 (36.4) 9,125 (46.8) 27.5 (0.14) £194.9m
2006 7,879 (35.4) 10,159 (45.7) 30.5 (0.14) £222.3m
2007 8,934 (32.6) 11,583 (42.3) 34.7 (0.13) £273.8m
2008 8,384 (24.8) 12,486 (37.0) 37.5 (0.11) £337.7m
2009 7,384 (23.43) 10,981 (34.9) 30.9 (0.10) £315.1m
(1) Units of measurement for gas and electricity are megawatt hours. For water they are cubic metres in 000s.
(2) The usage of gas, electricity and water in 2009 decreased by 14.3%, 12.2% and 14.8% respectively when compared to 2008. This is mainly due to lower production and reduced headcount (decrease of 11.6% from 2,214 in 2008 to 1,957 in 2009).

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Business ethics and our relationships with suppliers, customers and other stakeholders

Policy

The Vitec Code of Business Conduct (the Code) covers the way in which we deal with employees, suppliers, customers, shareholders and our responsibility to society and is used to ensure that human rights are upheld in both our own operations and those of our suppliers. All employees are required to comply with it and any violations of the Code are required to be reported to local management or the Group Company Secretary, as appropriate. If an employee feels that they want to report breaches anonymously, then the Group has put in place an independent, confidential whistleblowing service run through a third party provider, Expolink. All employees have been advised of the service and are encouraged to report any event in breach of the Code. Communication material on Expolink has been translated for each area of operation and is published on site notice boards and on the Group intranet. Reports through Expolink are independently investigated without fear of adverse consequences.

Vitec’s Code includes supply chain requirements. Suppliers are required to confirm compliance with Vitec’s standards. The Code includes a clear prohibition on bribery or giving any kind of inducements.

We support the UN Universal Declaration of Human Rights and the International Labour Organisation’s core conventions on labour standards (addressing forced labour, freedom of association, discrimination and child labour).

Actions
In 2009, the Company set out its purpose – to provide vital products and services that support the capture of exceptional images. To support this purpose five key values, collectively forming the Vitec Mindset, were adopted. These values are:
  • Product excellence – everything we make and do is exceptional;
  • Creative solutions – we are constantly looking to break new ground;
  • Integrity – what you see is what you get;
  • Customer focus – we are nothing without our customers; and
  • Collaboration – we work better when we work together.
The Code of Business Conduct will be re-launched to all employees in 2010 to reflect this purpose and values.

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Health & safety and employment

Policy

The Group’s policy is to give the greatest importance to the health and safety of its employees and to comply with all relevant legislation and codes of practice relating to employment, health and safety and equal opportunities. In summary, this covers: good quality, safe working environments and facilities for employees and training and development appropriate to each of their roles; not to discriminate in any way; to take a flexible approach towards family responsibilities; to assist employees in establishing an appropriate work/life balance; and to provide a competitive range of quality employee benefits. The Board and senior management are committed to keeping the workforce informed of major events and developments within the Group.

In the design, construction, operation and maintenance of all the plant, equipment and facilities, it is the duty of management to do everything reasonably practical to prevent personal injuries. To this end, management provides personal protective equipment and protective clothing and courses are run regularly for employees.

It is also the duty of every employee to exercise responsibility and to do everything reasonably practicable to prevent injury to himself/herself and others and for the prompt reporting of accidents and potential hazards.
Details of specific responsibilities for health and safety, together with other relevant health and safety information, are displayed on notice boards at each Group location.

Accident statistics are reviewed at each meeting of the Operations Executive, held monthly, and are reported to the main Board directors as part of their monthly management pack. Training is regularly carried out to educate employees on health and safety matters and safe systems of work.

Vitec has low staff turnover and levels of sickness are minimal across the Group. Vitec has an equal opportunities culture with no discrimination of any kind.

Actions
Lino Manfrotto & Co SpA and Vitecgroup Italia SpA hold OHSAS 18001 Occupational Health and Safety certification, ISO 9001 Quality and ISO 14001 Environment certification. The companies employ over 500 employees at five manufacturing sites in Italy.
Health and safety training is part of the induction process for new employees. Specific training is given, where relevant, for forklift truck, crane and hoist operation and bottle gas usage as well as fire safety and first aid training. Additional training is given where an employee has a specific role such as responsibility for administering first aid.

The Services Division implemented a drug and alcohol testing programme in 2009 in the Operations Department. The Division recognises its commitment to employees, customers and the public to take reasonable steps to ensure safety in the workplace and in the community.

Risk assessments are in place throughout the Group. Appropriate control measures have been taken to control the risks identified. Assessments are carried out on a regular basis and these assessments are kept under review, particularly when new equipment or machinery is acquired or new processes are introduced.

Accident statistics have been published by the Group for each year since 2002. The table below sets out the position during the last five years. For 2009 we targeted a 10% reduction for the year in accidents. A 38% reduction was achieved in 2009 with accidents reducing from 16 (representing 723 per 100,000 employees) in 2008 to 10 (representing 511 per 100,000 employees) in 2009 (see Note 4 on page 23). There were no fatal accidents during 2009 (2008: nil). A similar targeted reduction has been set for 2010.
Year Accident rate Fatalities Average number of employees
2005 1,040 Nil 1,538
2006 835 Nil 1,676
2007 976 Nil 2,049
2008 723 Nil 2,214
2009 511 Nil 1,957
Note: Accident rate means the number of accidents per38   The Vitec Group plc Annual Report & Accounts 2009
100,000 employees per year leading to absences from work of more than three days.

The Group website’s principal aim is to help investors, potential investors, customers, employees and other stakeholders to better understand the Group and view the wide variety of products available from Group companies – www.vitecgroup.com. Our policy is to keep employees informed on matters relating to their employment and on financial and economic factors affecting the Group. We do this through management briefings by the Group Chief Executive, the Group Finance Director and Divisional Chief Executives, management conferences, through the Group’s website and by internal distribution of press releases and internal announcements. An intranet for the whole Group has been created and is being refined and updated regularly. Combining the various intranets that existed around the Group has enabled our employees to gain better access to information and an improved understanding of our Group and individual business objectives and their roles in achieving them. The Group has operations in many countries and employees speaking many different languages and so, where practical, documents published on our intranet are translated into the relevant languages. We strive to continue and improve this process, and development of the intranet generally, in the future.

Building and developing the skills, competencies, motivation and teamwork of our people is key to achieving our business objectives and to ensuring best practices throughout the Group.

The Group operates in many countries and our employment policies, which are designed to meet local conditions and requirements, are established on the basis of the best practice in each country in which we operate. The wide geographical spread provides some opportunities for employees to work either short term, or on secondment for longer periods of time, at overseas locations.

The Group encourages all employees both in the UK and overseas to participate in the Group’s savings related share option schemes under which options over the Company’s shares are granted to employees who agree to save a set amount each month.

We understand our responsibility as employers under the Disability Discrimination Act 1995 and we do not discriminate against disabled people. If an employee is, or becomes, disabled during his or her period of employment, we will, if necessary and to the extent possible, adapt the work environment to enable the employee to continue in his or her current position or retrain the employee for duties suited to that employee’s abilities. It continues to be the Group’s policy to consider applications for employment from disabled people on the same basis as other potential employees.

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Community giving

Policy

Vitec has for many years contributed to national and local communities in the countries in which we operate through donations, sponsorship and financial support for local charities. In addition, we encourage local employees to give their time to local causes and this is coupled with a matching element from the employer.

Actions

The Vitec Group and Divisional charity committees review all written requests for donations and decide on the level of donations and the charities to which donations are made. We concentrate our donations to children, personal development and media-related causes.

In addition to making donations to worthwhile causes, staff at many of the Group’s locations donate their time to worthwhile causes. Time spent on such activities is matched by the Company.

During 2009 donations totalling £158,601 (2008: £139,941) were made by Group companies. Some of the support given by Group companies during 2009 included the following.

The Clear-Com business based in Alameda, US, encouraged its employees to enter a sponsored walk in 2009 to raise money to support children with cancer at the Children’s Hospital and Research Centre in Oakland. 30 employees participated and the Company matched each employee’s contribution and raised $2,465.

The same business also supported the Alameda Food Bank whereby employees donated food and two hours of their time to sort food. At the same time employees gave an online donation to the shelter and raised $2,000 which was matched by the business.

The Bogen Café continued its annual series of two-day workshops and lectures in the US by professional photographers and educators at 10 universities and colleges designed to help support their photo curriculum and the students. During 2009 equipment and the services provided by Bogen Imaging totalled $170,000.

Manfrotto Supports held free photography courses for several schools for grade four students in Campese, Italy. The courses were aimed at introducing children to basic photography techniques and educating them about the images produced. 2009’s theme was self portraits and classmate portraits. In addition the courses examined the aesthetic models imposed by the media and their negative effects. At the end of the course a book of the students’ work was produced, printed and distributed to the students. The scope of the project was to generate new interest in photography whilst adding value to children’s lessons and increasing awareness about a local company with a worldwide reputation for quality. The donation to support this was E5,000.

Manfrotto Supports further offered photography courses for employees in 2009 following the success of similar courses in 2008. Whilst the cost of this was low, the value in raising employees’ awareness and enthusiasm for the sector in which they work was far greater

Bogen Imaging (now Manfrotto Distribution) in the US loaned equipment to two military bases, Fort Lewis and Fort Hood, to support the Portraits of Love project which aims to send 10,000 free family portraits to soldiers deployed overseas.

The Services Division has continued its relationship with the City of Burbank BEST Program. The Burbank Employment and Student Training Program (BEST) provides an opportunity for local businesses to invest in the youth of Burbank, California and provide practical work experience and exposure to business. The programme is a temporary, part-time work training programme and the Services Division employs several students through it during the year

The Services Division continued its support for The V Foundation for Cancer Research at the ESPY Celebrity Golf Classic. The Division sponsored a hole at the tournament for $10,000 and provided $5,000 worth of equipment and manpower for the audio visual requirements of the event.

The Services Division further donated $1,500 to Doctors without Borders at the Group’s Technology Forum that was matched by guests at the Forum for a total of $6,000.

The Head Office of the Company entered into a two-year agreement with Kingston University donating £14,000 to support the University’s Television and Video Technology department. The donation is being used to buy new equipment including many of the Company’s products to re-fit and improve the University’s studio facility. Part of the donation was also used to provide prize money for final year students in recognition of the best course work produced. The courses run by the department cover around 300 students.

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The Vitec Group plc, Bridge House, Heron Square, Richmond, TW9 1EN

T +44 (0)20 8332 4600 F: +44 (0)20 8948 8277

E info@vitecgroup.com www.vitecgroup.com

Registered office: Bridge House, Heron Square, Richmond, TW9 1EN. Registered in England no. 227691Sitemap | Private Policy | Terms & Conditions