Corporate social responsibility report

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The Group published its first detailed Corporate Social Responsibility Report in 2002 although it had been including an environmental policy statement in its annual report for some years. During 2004 the Group has further developed its social responsibility awareness and internal reporting of statistics. We plan to continue development, and the inclusion of an environmental report, in the future.

The Group has for many years taken a caring and considerate approach to social, environmental and ethical matters throughout its operations worldwide and this has continued, and will continue, into the future. The Group regards compliance with all relevant laws and guidelines as important and socially responsible. During the year a number of enhancements were made to the Group’s website to ensure compliance with Part III of the Disability Discrimination Act 1995, which covers access to goods and services. For full details of the enhancements, please see the Accessibility Statement on the website (http://www.vitecgroup.com/accessibility.aspx).

The Group’s current system of risk management and control, which includes social responsibility matters, is led by the heads of each of the Group’s operations. Those people are responsible at local level for complying with the relevant environmental regulations in all the geographical areas in which they operate. They report to the Board on such issues through the Group’s Finance Director, who has ultimate responsibility for such matters, as part of the Group’s system of internal control and risk management reporting.

Overall the Group continues to believe that it has limited environmental impact. However, we recognise that we continue to have a responsibility to understand the impact that our activities have at local, national and global level. These have been monitored and assessed locally and solutions have been implemented as appropriate according to best practice, local legal and other requirements. Over the last few years we have developed and implemented a more consistent approach to adopt sound policies throughout all our operations. As part of the implementation programme, we have put in place more formal systems and procedures for identifying, measuring, reviewing and reporting on social, environmental and ethical matters. Group policies are in place in the key areas of employment, environment, human rights, community impact and involvement and relationships with suppliers, customers and other stakeholders. These policies have been implemented at the centre and within each operating entity. Specific responsibility for such matters has been assigned to designated employees. Reviews by local management take place at each Group location and reports are made of the major risks in these areas. 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. The compilation of statistics commenced in 2002 and they are being used for reporting purposes and to monitor improvements.

1. Employment

Policy
To comply with all relevant legislation and codes of practice relating to employment, health and safety and equal opportunities. To provide good quality 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 them in establishing an appropriate work/life balance; to provide a competitive range of quality employee benefits. To keep the workforce informed of major events and developments within the Group.

Actions
Employment policies throughout the Group already reflect the policy set out above.

We continue to recognise the importance of involvement, motivation, training and development of our employees at all levels. The importance of good communication and working relationships is actively encouraged. During 2004 the Group’s website was significantly enhanced by the inclusion of a microsite containing the annual report. It also provides a gallery containing photographs of Group products. Other enhancements to the website are also currently being considered. The aim is to help investors, potential investors and employees alike to better understand the Group and view the wide variety of products available from Group companies.

Our policy is to keep employees informed on matters relating to their employment and on financial and economic factors affecting the Group through management briefings, via the Group’s website and by internal distribution of press releases and internal announcements. This enables our employees to gain a better understanding of our business objectives and their roles in achieving them. 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 Executive Board, the other senior executives of the Group, the Chief Executive and the Finance Director, meet on a regular basis. In addition, the managements of the operating units employ a wide variety of consultation and briefing methods, including conferences, joint committees, specific project teams and briefing groups.

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 practices in each country in which we operate. The Group’s wide geographical spread provides some opportunities for employees to work either short term or on secondment for longer periods of time at the Group’s various locations.

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Information correct at 13/04/05