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Philosophy and approach 3i is an international business
operating in 14 countries with fewer than 900 employees worldwide.
3i aims to conduct its business in a socially responsible
manner. It is committed to being a responsible member of the
communities in which it operates and recognises the mutual
benefits of engaging and building relationships with those
communities. 3i believes that respect for human rights is
central to good corporate citizenship. In everything 3i does
it aims to be commercial and fair, to maintain its integrity
and professionalism and to respect the needs of shareholders,
staff, suppliers, the local community and the businesses in
which it invests.
3i endeavours to comply with the laws, regulations and rules
applicable to its business and to conduct its business in
accordance with established best
practice in each of the countries in which it operates. Environmental,
ethical and social responsibility issues and standards are
also taken into consideration in all
aspects of the business.
3i aims to be a responsible employer and has adopted corporate
values and standards designed to help guide its employees
in their conduct and business relationships. These values
and standards are an integral part of 3i’s culture.
Responsibilities and accountabilities The Board as
a whole is responsible for ethical standards. The executive
Directors are responsible for ensuring compliance with 3i’s
corporate values and standards.
A management committee, the Corporate Social Responsibility
Committee (the “CSR Committee”), comprising Tony Brierley,
Company Secretary and Chairman of the Committee, Patrick Dunne,
Group Communications Director, Charles Richardson, Managing
Director, Small and Medium Investments, and Liz Hewitt, 3i
plc Director and currently on secondment to the Department
of Trade and Industry, considers and reviews environmental,
ethical and social issues relevant to 3i’s business and associated
risks. It also monitors the operation, and reviews breaches,
of 3i’s corporate responsibility policies and procedures.
Tony Brierley has specific responsibility for 3i’s environmental
policies, leading the development of new policies and targets
and reporting to the Board.
The CSR Committee, on behalf of the Board, identifies and
assesses the significant risks and opportunities for 3i arising
from social, ethical and environmental issues. A risk matrix
methodology is used to identify new risks, monitor developing
trends and best practice and consider changes in 3i’s business
and culture. This risk matrix is reviewed and updated at each
meeting of the Committee and significant risks are reported
to 3i’s Risk Committee, whose work is set out in more detail
on page 28 of the Directors’ report.
The CSR Committee reports regularly to the Board. During the
year, the Board considered a presentation on significant social,
ethical and environmental issues for the Group. Training for
Directors on corporate responsibility issues is provided through
this system of regular reporting and by presentations on relevant
corporate responsibility issues.
A programme of presentations and discussions across the business
and regular articles in 3i’s staff magazine are being used
to raise awareness of corporate responsibility issues, to
stimulate debate and provide employee training.
All employees have a responsibility to be aware of, and abide
by, 3i’s environmental, ethical and social policies and procedures.
Employees are encouraged to make suggestions to improve processes
and procedures, particularly those which lessen the impact
of 3i on the environment.
Social responsibility as an investor
Investment policy 3i has a portfolio of investments
in over 2,000 businesses in Europe, Asia Pacific and the United
States. As an investor, corporate governance is a priority
and account is taken of environmental, ethical and social
issues when making investment decisions. 3i believes it is
important to invest in companies whose managers act responsibly
on environmental, ethical and social matters.
3i aims to invest in companies which:
- respect human rights;
- comply with current environmental, ethical and social
legislation;
- have proposals to address defined future legislation;
- seek to comply with their industry standards and best
practice.
3i recognises that the most significant risks to its short and
long term value from environmental, ethical and social matters
arise from its investment business. For example, if a company
in which 3i has an investment acted irresponsibly on corporate
responsibility issues, this might affect the monetary value
of that investment and, as a shareholder in that investment,
raise reputational issues for 3i. As an investor, 3i has the
opportunity to influence the behaviour of the companies in which
it has an investment and encourages the development and adoption
of good corporate governance. This is achieved through the training
of non-executive Directors who are appointed to sit on investee
company boards and the raising of awareness within investee
companies of social, environmental and ethical issues. However,
as an investor in unquoted businesses, 3i does not have day-to-day
operational control over these businesses.
3i has clear procedures to reduce the risks of 3i investing
in businesses which operate in an environmentally, ethically
or socially unacceptable manner. Where, after an investment
has been made, 3i becomes aware that an investee company is
not operating in an acceptable way, 3i will seek to use its
influence to encourage improvement. Where that is not possible,
3i will seek to divest itself of the investment.
Social responsibility as an employer
Employment
3i’s staff are fundamental to the success of its business. Accordingly,
one of 3i’s core values is to respect its staff and their needs.
Employees are organised in small teams and an environment of
co-operation is encouraged to ensure the highest standards of
integrity and professionalism.
In accordance with 3i’s core values, individual consultation
with employees on matters affecting them, and fair and open
communication, are a high priority. Periodically, internal communication
surveys of employees are conducted for 3i by independent researchers.
The September 2002 survey, conducted on 3i’s behalf by MORI,
disclosed that 66% of the 251 randomly selected employees interviewed
were satisfied with 3i’s internal communications and 70% felt
informed about 3i. 85% spoke highly of 3i and indicated they
would advocate 3i as an employer. The advocacy of 3i result
compares favourably with MORI’s best practice norm of 67%, being
the average of the best ten scores for a particular question.
Improving internal communication continues to be a priority.
3i’s employment policies are described in more detail in the
Directors’ report.
Health and safety 3i recognises that the promotion
of health and safety at work is an essential function of staff
and management at all levels. In an endeavour to achieve high
standards, appropriate policies and procedures have been put
in place. These policies and procedures are the responsibility
of Rod Perry, a Director of 3i Group plc.
The purpose of 3i’s health and safety policy is to enable all
members of 3i’s staff to go about their everyday business at
3i’s offices in the expectation that they can do so safely and
without risk to their health. 3i imposes rigorous standards
on its staff and sub-contractors and endeavours to ensure that
the health, safety and welfare of its employees, visitors, customers,
sub-contractors’ staff and the general public are not compromised.
3i aims to have no reportable accidents or incidents. During
the year to 31 March 2003, no reportable accidents or incidents
occurred under UK Health and Safety regulations and no reportable
accidents or incidents occurred under similar regulations outside
the UK.
Social responsibility to the communities in which 3i operates
Charitable and community support 3i’s charitable
policy aims to support:
- Causes based in the communities in which 3i has offices.
- Staff who participate in charitable activities. 3i matches
donations made by UK staff under the Give as You Earn scheme
(“GAYE”) and the proceeds of staff fundraising efforts.
In the period from May 2001 to April 2002, 3i was ranked
top payroll giving employer by staff participation and 19th
payroll giving employer by donation (source: The Giving
Campaign). In the year to 31 March 2003, approximately 42%
of 3i’s charitable donations were matching GAYE donations.
- Charities relevant to its corporate activity.
Charitable donations made in the year to 31 March 2003 amounted
to £209,972, supporting over 100 different charities with donations
ranging from £21 to £25,000. 3i supports businessdynamics, a
charity which aims to help young people understand business.
3i also has a long running association with the Royal Academy
of Music, sponsoring the Sinfonia Orchestra. During the year,
3i also supported The DePaul Trust, a charity which provides
help for homeless and disadvantaged people in a number of British
cities in which 3i has offices.
The environment As a financial services business
employing fewer than 900 employees worldwide, 3i’s direct environmental
impact is relatively low. The Group measures its own energy
and resource usage where practicable and sets targets to achieve
improvement. The principal benchmarks against which the Group
measures its performance are for:
- CO2 emissions; and
- recycling of paper and other materials.
The Group also assesses the environmental standards of its suppliers,
through its procurement policy.
Performance and measurement To assist it in benchmarking
3i’s corporate responsibility performance, the CSR Committee
has had informal discussions with other companies and specialists
in this area. The Committee has monitored the implementation
of corporate responsibility investment procedures, implemented
appropriate risk management procedures and set strategic objectives
for corporate responsibility.
The CSR Committee measures 3i’s performance against two indices:
- The Dow Jones Sustainability World Index (“DJSI”), a global
index which tracks the financial performance of leading
companies in terms of corporate sustainability; and
- Business in the Community Corporate Responsibility Index
(“BitC Index”), an index which aims to benchmark environmental,
ethical and social performance and encourage sustainable
development.
3i has again been selected as a constituent of the DJSI during
the year and was placed in the top half of its industry group
on a global basis. 3i’s overall sustainability performance was
described as very good (source: SAM Research Inc.). 3i aims
to continue to be included within this index and to maintain
its position in the next DJSI assessment.
3i participated in the first annual BitC Corporate Responsibility
Index, one of only 53 FTSE 100 companies and the only investment
company to participate in the Index. 3i’s management profile
was B, a company moving beyond a basic commitment. The results
of the BitC Index have been considered by the CSR Committee
and a number of actions are being taken with the objective of
improving 3i’s performance in this Index in the future.
During the year, 3i commissioned an external management consultancy,
ERM, to conduct a review of corporate responsibility at 3i.
As a result of that review, a number of recommendations relating
to procedures, communication and training are being implemented.
Each of 3i’s business unit and department heads is required
to confirm on an annual basis that their operating procedures,
including investment procedures, are consistent with 3i’s standards
and controls and that these procedures are operating in practice.
3i’s performance management appraisal process reviews the performance
of individual members of staff against agreed objectives and
the knowledge, skills and behaviours expected by 3i. This process
includes 360 degree feedback for all employees.
3i’s offices are the subject of health and safety audits to
ensure high standards are adopted on a consistent basis worldwide.
Audit and verification The CSR Committee has an ongoing
role of monitoring the operation of 3i’s corporate responsibility
policies and procedures. The identification and management of
corporate responsibility risks is integral to the ongoing operational
processes of 3i’s business units and functions. In addition,
3i’s internal audit function carries out periodic reviews of
risks and related controls in this area. The Committee may also
supplement internal review processes with external reviews where
necessary. The Committee is not aware of any material breaches
of the Company’s policies and procedures for managing risks
from corporate responsibility issues.
The disclosures in this Corporate Social Responsibility report
are the subject of an internal verification process. This process
requires every statement made in this report to be verified.
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| Since 1991, 3i has been
pleased to support the Royal Academy of Music, sponsoring
student scholarships and the Sinfonia Orchestra. Unlike
other leading international music schools, the Academy
relies on voluntary funding for all student scholarships.
We were proud to be lead sponsor of a concert given by
Sir Elton John in December 2002, at which over £750,000
was raised. |
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In July 2002, 3i’s Barcelona
office organised a sponsored trek which involved climbing
two peaks of around 3,400 metres in the Maladeta Nature
Park in the Pyrenees mountains in northern Spain. Four
of 3i’s staff in Barcelona together with four local advisers
raised £3,600 to help re-equip the SOS Children’s Village,
a children’s home in the Spanish town of Sant Feliu de
Codines. |
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| 3i was pleased to continue
its long standing support for businessdynamics, which
aims to “bring business to life for students, primarily
by delivering programmes, in schools and colleges. These
inform and inspire young people, aged 14-19 years, about
the opportunities and challenges of business”. During
2002, these business awareness programmes reached 33,000
students (source: Annual Review). |
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