|
|
|
|
||
|
||
|
Signet is committed to managing the social, ethical and environmental ("SEE") risks and responsibilities facing the Group. This commitment stems from the understanding that Signet's success is dependent on the strength and effectiveness of its relationships with various stakeholders: shareholders, customers, employees and suppliers. In recent years stakeholder expectations of public companies have increased and monitoring, managing and responding as a business to these changing expectations, including with regard to SEE issues, is part of the normal responsibilities of corporate management. In 2000/01 the Group appointed external advisers to conduct a SEE risk review and benchmarking exercise of the Group's operations. The review included an assessment of Group policies, procedures and controls. The Group has continued to work with these external advisers in 2001/02 on the risk review process and to put in place appropriate SEE policies and procedures. Governance of SEE matters On 21 October 2001 the Association of British Insurers published guidelines on Socially Responsible Investment. In line with that guidance the Board confirms that they have identified and assessed the Group's SEE risks and that these are being managed. In February 2001 the Group established a formal SEE governance framework with SEE matters being included in the schedule of matters reserved for the Board. The Group Chief Executive has been designated as the director responsible for SEE matters. A SEE Committee was established consisting of a team of senior managers from the UK and US with key responsibilities for the implementation of the various aspects of the SEE principles and policies. It meets at least four times a year. The procedures for SEE risk management are embedded within the management
structure of the Group. The matters considered by the SEE Committee include:
• preparation for review and approval by the Board of public SEE disclosures and reporting. See risk and other factors for further discussion of risk factors, including SEE matters. Principles and policies framework The Board has adopted a "Statement of SEE Principles" ("Principles") outlining the Group's objective to operate as a profitable and responsible speciality jewellery retailer, the Group's responsibilities to various stakeholders and the SEE principles by which it operates. While this is the first time these responsibilities and principles have been formally adopted, Signet has adhered to them for some time. The Principles cover the following areas:
• accountability to stakeholders, The Group has also adopted a Supplier Code of Conduct ("Supplier Code") and policies on business integrity, health and safety, and labour standards. The full text of the Principles, Supplier Code and other policies are available on the Group's web site (www.signetgroupplc.com). The environment, community and human rights are areas which have been identified for future detailed review. Steps have been taken to embed the Principles, the Supplier Code and the policies within the business. This process included the communication of the Principles at the time of their launch to all employees, together with their incorporation into the Group's staff induction process and operating procedure. Implementation of the Supplier Code will include the integration of the Code into purchase orders, supplier manuals and contractual agreements with suppliers. The Group principles and policies are intended to provide a framework with which the divisional policies and procedures conform. They do not replace existing detailed divisional policies and procedures. Our stakeholders Signet's commitments to various stakeholders are articulated in the Principles. These are summarised below: Shareholders Signet's aim is to deliver an acceptable growth in value to shareholders which is sustainable, thereby protecting shareholders' short and longer term interests. The Group's responsibilities to shareholders are set out in more detail in the corporate governance statement. The Group is committed to maintaining open dialogue with its shareholders on SEE and other matters. Customers Signet's mission is to meet, and where possible exceed, customer expectations through a high standard of customer service, high store standards, and real choice and value. In doing so the Group endeavours to maintain product integrity by ensuring the quality of Signet's products and by offering merchandise that is responsibly sourced. The Group's policy is that all customers should be treated with respect and warmth. The Group has customer service departments, complaint resolution processes, tracking methods and in-store customer comment cards in the UK and the US. Sales training programmes include modules to ensure employees treat all customers with respect. Employees are key to Signet's ability to achieve its objectives and mission. Therefore teamwork, integrity, communication, and fair treatment of employees all play an important part in the way the Group operates. Furthermore, Signet's ability to operate in accordance with its Principles is dependent on employees' understanding of them and the way in which the Principles impact on their respective roles and responsibilities. Signet considers its relationship with its employees to be excellent and values honest, open and constructive "two way" communication throughout the organisation. This is achieved through store, area and regional management meetings. These meetings facilitate consultation during which the views of employees can be expressed and taken into account in making decisions likely to affect their interests. Staff are kept informed of the Group's performance and objectives through management contact supplemented by staff publications in both the UK and US. The involvement of employees in the Group's performance is encouraged through participation in performance-related incentive payment schemes which cover nearly all Group employees. The Group does not restrict or discriminate against employees who wish to be covered by collective bargaining agreements. The Group's policy is not to tolerate any form of unlawful discrimination on any grounds or at any level. In respect of people with disabilities, full and fair consideration is given to employment, opportunities for training, career development and promotion according to their skills and capacity. The services of any existing employees who become disabled are, where possible, retained and appropriate training is arranged for them wherever possible. The Group assigns responsibility for human resource matters, including health and safety, to the divisional executive management committees. Both the UK and US operations have established systems which include the provision of training and development opportunities at all levels of the organisation. See "store management, personnel, training and incentives" in the US operating review and in the UK operating review for further details. The Group recognises that stakeholders expect companies to take responsibility for and, where possible, to exert influence over suppliers to ensure that SEE standards are upheld throughout the supply chain. As such, Signet adopted the Supplier Code, outlining its commitment to, and expectations of, its suppliers. The Supplier Code applies to suppliers and agents with whom Signet deals directly. Those suppliers and agents are encouraged to ensure that this Supplier Code is communicated throughout the supply chain. Most of the raw and processed materials for the merchandise sold by Signet are traded on commodity exchanges, through multiple brokers and traders making the source difficult to trace. Signet believes that SEE risks at the mining, trading and secondary processing phases of the supply chain are more effectively managed through collaboration with the industry. Signet is therefore actively participating with Jewelers of America (the US speciality jewellery retail trade association) in considering what principles and action Jewelers of America can take on behalf of its members to set SEE standards and influence matters throughout the supply chain. Signet is also working, where appropriate, with other trade bodies such as the Jewelers Vigilance Committee. One of the specific issues facing the Group and the diamond sector is "conflict diamonds", which are diamonds being sold by rebel movements to fund military campaigns. The Group is a non-voting member of World Diamond Council which, together with Jewelers of America, is working with the United Nations and government bodies to introduce a workable system for the certification of the source of uncut diamonds. Signet has sent a letter to all its diamond suppliers, based on the Jewelers of America policy, requiring them to use their best endeavours not to supply the Group with conflict diamonds. Signet, through Jewelers of America, has also been supportive of proposed legislation in the US seeking to prohibit the trade in conflict diamonds. In respect of supplier payment, Group policy is that the operating businesses are responsible for agreeing the terms and conditions under which business transactions with their suppliers are conducted, rather than following any particular code or standard on payment practice (see note 30(e) regarding the number of days purchases outstanding). Accordingly suppliers are aware of the terms of payment and it is Group policy to ensure that payments to suppliers are made in accordance with these agreed terms. Environment and society While the direct environmental impact of its operations is relatively low compared to many business sectors, Signet recognises that there may be opportunities to improve its performance. Over the next year, Signet intends to review its current environmental management systems in the UK and US divisions and adopt a Group policy on environmental matters. In respect of charitable giving, Signet believes it is best to give support to a limited number of charities rather than fragment the overall funds made available for this purpose. In the US support is primarily given to The United Way, St. Jude Children's Research Hospital and The Jeweler's Charity Fund. In the UK the Group primarily supports the Princess Royal Trust for Carers. Support was also given to the Red Cross in response to the events of 11 September 2001. During the period the Group made provision for contributions for charitable purposes of £319,000 (2000/01: £183,000); £139,000 (2000/01: £101,000) in the UK and £180,000 (2000/01: £82,000) in the US. Cause-related marketing initiatives on both sides of the Atlantic resulted in additional charitable donations of £593,000 (2000/01: £420,000). No political donations were made in the US or the UK by the Group in the period (2000/01: £nil).
|
