Engaging with our stakeholders

There is a comprehensive corporate and operating company-based communications programme aimed at ensuring that all employees have access to relevant and timely information about the Group and their own operating company.

Most operating companies conduct regular employee attitude and opinion surveys. The first Group-wide survey of employee opinion commenced in 2007 and was completed in early 2008. A range of action plans was identified with operating companies taking the lead. In addition to other measures, this confirmed that employees were aware of the Group’s Business Conduct Guidelines and whistleblowing policy. There were 28 issues raised through the whistleblowing procedures during the year (16 in 2007). All of these were investigated and reported to the Board’s Business Practices Committee.

The Group measures its equal opportunities performance. In 2008, 20% of all employees were women and 15% were of ethnic minority origin. These statistics have considerably improved from when measurement first took place in 1999. At graduate intake level in 2008, the proportion of women is 24%, the highest level since we started recording across the Group in 2000, and of ethnic minorities is 19%, again the highest level since we began recording in 2002.

In 2008, a suite of key performance indicators was developed which is being implemented during 2009. This will provide an improved level of reporting at Group level and promote sharing of best practice throughout our businesses.

Balfour Beatty runs an active shareholder engagement programme involving regular roadshows and one-to-one meetings. Requests for meetings with and information about the Company are handled quickly and efficiently. During 2008, senior executives held approximately 100 meetings with shareholders. All financial presentations are webcast in order to ensure that they are accessible to all shareholders and other interested parties.

Most of the Group’s operating companies conduct regular customer attitude and opinion surveys. A substantial proportion of the Group’s business is conducted with organisations with which its operating companies have long-term relationships. An increasing number of customers take advantage of the integrated nature of Balfour Beatty’s services by working with several operating companies.

An increasing proportion of the Group’s supply base is retained in long-term relationships based on the compatibility of their values and behaviour with the requirements of the Group as well as product quality and price.

We undertake rigorous checks on the financial strength of our supply base before we sign contracts and seek to ensure that we are not over-reliant on any particular business.

The majority of Balfour Beatty’s work is carried out for governments and regulated businesses. The Group seeks active and positive relationships with governments, their officers and advisers and relevant industry regulators to ensure its policies align with their key requirements.

In October 2008, Balfour Beatty reached full settlement of all issues relating to the Bibliotheca Alexandrina project in Egypt, a joint venture contract entered into in 1996.

Balfour Beatty carried out its own fully-documented internal investigation of certain payment irregularities identified in the contract and, in April 2005, self-reported the findings to the appropriate authorities, including the Serious Fraud Office (SFO), for further investigation.

As part of the settlement agreed with the SFO, Balfour Beatty agreed to review its existing codes of conduct to ensure they are consistent with best practice, to put in place further training programmes in the area of ethical business conduct, and to appoint an external monitor to review the policies and processes within the Group.

The external monitor appointed by Balfour Beatty is the Global Infrastructure Anti-Corruption Centre (GIACC). GIACC has been conducting a thorough review of Balfour Beatty and its existing systems. The Board plans to implement the recommendations of GIACC in full, and a copy of the GIACC report will be sent to the director of the SFO. When complete, a summary of the contents of the GIACC report, and its recommendations, will be provided in the Corporate Social Responsibility Report.