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De La Rue is committed to sound Corporate Responsibility (‘CR’) policies and business practices. This section deals with how it manages CR issues in relation to its stakeholders – customers, shareholders, employees, suppliers and other business partners and local communities wherever it carries on business throughout the world. Further information on CR within De La Rue can also be found on www.delarue.com in the Investor Centre and via the London Stock Exchange’s Corporate Responsibility Exchange.
Policies and Procedures – Business Code of Conduct (the ‘Code’)
De La Rue’s Business Code of Conduct is the cornerstone of its approach to Corporate Responsibility. All employees must receive a personal copy of and comply with the Code. It defines De La Rue’s core values and principles for doing business, dealing with issues such as share dealing procedures, competition law compliance rules, ethical dealings with governments, customers, suppliers and third parties, protecting the Group’s assets, health and safety and the environment, and avoiding conflicts of interest. The Code is supplemented by more detailed policies and procedures and by training relevant employees. The Code, policies and procedures are also on the Company’s intranet as well as being publicly available on the Company’s website. Managers must ensure that their staff are properly briefed on the Code.
The Audit Committee has approved a ‘whistleblowing’ process whereby employees who have concerns about the application of the Code or business practices within the Group may raise them internally, or anonymously through an independently run telephone help-line. The Board and Audit Committee receive details about any issue raised and how it has been followed up.
Accountability and Management Processes
The Board is ultimately responsible for assessing the effect potential CR issues may have on De La Rue’s business and setting appropriate policies for the Group. Details of the Board structure and of its Committees are set out on pages 30 to 34. The Chief Executive is the Board member with designated responsibility for CR. The Operating Board is responsible for the day to day management of these issues. The Board and Operating Board receive monthly reports on CR issues. They are also discussed in the quarterly Risk Committee meetings.
The Environment, Health and Safety (‘EHS’) Steering Group, chaired by the Company Secretary, is responsible for setting EHS strategy for the Group, responding to regulatory developments, developing appropriate procedures and disseminating information on good practice to Group businesses.
Employees
The Group currently employs over 6,000 staff across 31 countries and continues to encourage creativity and initiative, recognise individual and team contributions and give all employees the chance to develop their full potential. The Company introduced in 2005 an improved talent review procedure. This ensures that employees showing potential are given the opportunity to progress within the organisation and provides a cross-divisional view of skills throughout the business.
The Group promotes employee involvement through a policy of communication and consultation by individual business unit managers. In addition to the Company newsletter, the intranet and more traditional house notices, the Chief Executive issues a fortnightly electronic ‘Insight’ on key business issues to all employees who have the opportunity to respond directly to him.
During the year an all-employee ‘Great Place to Work’ survey was carried out to assess employee opinion on the Group as a place to work, the people they work with and the management they work for.
The survey, which received responses from 63 per cent of global employees, provides national and international benchmarks. It was carried out on an anonymous basis and was available to staff either in electronic or hard copy format and was translated into local languages. The results were fed back to employees and focus groups have been set up to address issues and discuss suggestions made by employees. The Company plans to carry out another survey in 2007 to measure its progress.
The loyalty of our staff remains one of our greatest assets. This year 142 staff were eligible for a 10 year service award and 63 for a 25 year award.
De La Rue’s productivity programme ‘My Contribution’ is now in its second year allowing all employees to share ideas, submit suggestions for improvements to the business and to track key projects. Key Performance Indicators are also tracked to highlight areas for improvement. The ‘Spotlight’ awards programme which this year was held in Barcelona, celebrates and rewards the most innovative and successful employee projects.
This year we are expanding the information we disclose in the annual report to include gender statistics for our workforce for the first time. In future annual reports we intend to expand further the information we disclose with a key objective for 2006/2007 to start collecting data on staff diversity which we will use to help us monitor our policies and improve best practice in this important area.
The Group is rolling out a new online web based HR management system which will enhance its management processes and enable it to monitor better the implementation of its policies and training.
De La Rue is committed to the fair and equitable treatment of all its employees in recruitment, training and promotion and in terms and conditions of employment irrespective of gender, sexual orientation, religious beliefs, age, colour, ethnic or racial origin, nationality, disability or trade union membership. If an employee becomes disabled when in the Group’s employment, full support is given through the provision of special training, equipment or other resources to facilitate continued employment wherever possible. All managers are required to ensure that employees understand their responsibility for the active implementation of the Group’s policies. De La Rue’s equal opportunities, anti-harassment and stress policies are available on the Company’s website. De La Rue has processes and guidance in place to protect the human rights of our employees and ensure compliance with legislation as part of our normal business activities.
Community
The De La Rue Charitable Trust (the ‘Trust’) was set up in 1977 and aims to direct funds to appropriate causes where De La Rue operates, with the emphasis on educational projects which promote relevant skills, international understanding and bring relief from suffering. Details of some of the projects the Trust has been involved with can be found on the CR section of the Company’s website.
Suppliers
We expect our suppliers to share our CR values and commitment to ISO standards for EHS performance. Potential suppliers are required to meet certain criteria during the supplier selection process for both direct and indirect procurement.
Environment, Health and Safety
We continually strive to minimise the impact of our operations on the environment and to safeguard the health and safety of those affected by our operations. EHS assurance comprises setting appropriate policies, operating management systems and the processes that provide the Board with confirmation that all business units comply with Group policy and applicable law while implementing their EHS action plans. EHS self-assessment and performance benchmarking processes measure how sites perform. Audit results are a factor in the initial allocation of insurance premiums.
This data and the associated monitoring programmes provide the necessary information to manage our EHS risks and to develop effective improvement programmes. The management systems define how the EHS risks are identified and controlled and who is responsible for so doing. Employees are widely involved in the EHS continuous improvement processes and there have been several successful EHS related ‘My Contribution’ projects.
Progress Against 2005/2006 Objectives
We have been successful in achieving all of the objectives we set for 2005/2006. Progress has been made in the achievement of ISO14001 accreditation within the Group. Bathford and Mörfelden have achieved ISO18001 certification during the year with three further sites working towards accreditation in the forthcoming financial year.
Managers and supervisors have been trained using the Institute of Safety and Health ‘Managing Safely’ four day course, with overseas sites sourcing suitable equivalent training for managers and supervisors. Many employees have also been trained on environmental awareness and management systems.
The annual EHS conference in 2005 covered hazard elimination and increased awareness about the key types of accidents which can occur such as falls, manual handling and incorrect use of equipment or chemicals. All businesses have risk assessment programmes in place and risk reduction programmes continue.
An international programme of improving machine guarding standards and safety control systems and educating employees in machine awareness is being rolled out.
In addition the Group is focusing on means to reduce the effects of noise from operation of machinery.
EHS Performance Indicators
Our key performance indicators on pages 23 to 25 show improved performance taking account of variable production output and reflecting the improvement programmes implemented across the Group. None of our operations has been prosecuted for infringing any EHS laws or regulations during 2005/2006.
Awareness and Culture
De La Rue develops awareness of and embeds EHS in its operating culture by training programmes for all levels throughout the Group. The annual EHS conference, Interlock, attended by senior managers, operational personnel, EHS and employee representatives, is the focal point for sharing best practice and introducing new procedures. The European Employee Forum and the UK Employee Forum also discuss EHS matters.
Full copies of our EHS policies are available on our website, or from the Company Secretary, details of which are on page 95.
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