CSR Report (p1)

The Group published its first detailed Corporate Social Responsibility Report in 2002. During 2005 the Group continued to develop 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. The Group’s website is compliant with Part III of the Disability Discrimination Act 1995, which covers access to goods and services. For full details, 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 this 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. The Group’s website continues to include microsites containing annual reports and accounts. It also provides a gallery containing photographs of Group products and a Factsheet giving key information about the Group. An Innovation section was added during 2005 to encourage contact by potential new business partners - Vitec is continually looking to offer new products that will form the core of the media creation process. Part of that initiative involves exploring new ideas and products with the global community of inventors, engineers and developers.

The aim of the website as a whole 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. A Group intranet is also currently being built. These enable 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.

Pensions briefings and consultations are given to employees in the UK by the Group Company Secretary and by the pensions administrators, Watson Wyatt, usually in conjunction with an external financial adviser.

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 practice 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.

Encouragement is given to 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 enter into contracts to save agreed amounts each month. Presentations are made by the Group Company Secretary to employees both in the UK and overseas on the Group’s Sharesave Scheme and International Sharesave Plan. Invitations under the UK and the International schemes have been made each year since the schemes were first introduced in 1984.

Ability and aptitude continue to be the determining factors in the selection, training, career development and promotion of all employees. 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 following disablement. It continues to be the Group’s policy to consider applications for employment from disabled people on the same basis as other potential employees.

Health and safety

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.

Risk assessments were introduced during 2003 in various parts of the Group and these have been phased into the other parts of the Group. Assessments are carried out on a regular basis and also when new equipment or machinery is acquired or new processes are introduced.

Anton/Bauer and Sachtler have Safety Committees with the aim of identifying potential risks facing employees and developing solutions to mitigate risks, including training employees to deal with and avoid risks. They have strong safety records evidenced by no accidents in recent years. Sachtler also provides staff with the opportunity to have their eyesight checked by a visiting doctor.

Following the formalisation of the recording and reporting of accidents and related lost time statistics in 2003, these procedures form the basis of regular reporting to the Executive Board. In 2005 the gathering and reporting of accident statistics was further refined and continues to be reported to, and monitored by, the Executive Board.

Workplace injuries and fatalities 2005 2004
Rate of non-fatal over 3-day workplace injuries (Notes 1 and 2) 1,040 1,290
Rate of fatal workplace injuries (Note 2) nil nil

(The figure for 2004 has been restated as a result of the receipt of additional information).

Notes

1. Over 3-day workplace injury means an injury at work leading to an absence from work of more than 3 days.

2. The above rates are expressed per 100,000 employees per year, in line with the normal reporting standard by the Health & Safety Executive.

Information correct at 03/05/2006