Corporate Social Responsibility
Introduction
This is an extract of the Corporate Social Responsibility Statement in the Annual Report for the year ended 31 December 2009. The Full Annual Report can be downloaded as a pdf file HERE.
We take business conduct seriously and have policies and guidelines in place which set standards concerning ethics, sound business practices and wider governance issues.
We believe that our business conduct, policies and guidelines which we have in place concerning ethics, sound business practices and wider governance issues will not only enhance our standing in the community, but also provide a better business for all our stakeholders.
The Company recognises that being a socially responsible company adds to and enhances the Company’s overall value, both short and long term. The impact our business activities have on the environment and communities in which we operate are important to us, and to our stakeholders. We therefore have systems in place to identify, analyse and manage key risks arising from our operations, and develop better business methods. The policies and guidelines we have in place set standards concerning ethics, sound business practices and wider governance issues.
The Board expects the Group to conduct its operations based on sound ethical practices which are open and free from discrimination and harassment, and will promote a positive representation of the Group to stakeholders. The Group has adopted and disseminated appropriate policies and procedures, including clear guidelines on matters such as competition law, bribery and whistle-blowing, and the Board has tasked each Divisional Managing Director to be responsible for the implementation of all of these policies in their divisions. John Menzies plc is included in the FTSE4Good index for socially responsible investment. We chose to participate in this index because the index measures the performance of companies that meet globally recognised responsibility standards.
Developing business pillars – becoming ‘SMART’
Both Menzies Aviation and Menzies Distribution have developed new CSR models as an integral part of their business development strategies. These are designed to standardise and improve business practices throughout their division.
Menzies Aviation have begun introducing SMART (Standard Menzies Audit & Reporting Tool), initially to the ground handling operations. SMART has been designed to concisely and clearly provide the minimum standard expected in a Menzies operation. Compliance against these standards will be monitored through self-certification, as well as independent audit. It covers subjects including Safety, Security and Quality, Corporate Governance, Human Resource, Operational Training, Planning and Procedures and Finance. Menzies Distribution’s three business development pillars are focused on the delivery of the strategy outlined HERE. Corporate Social Responsibility has been identified as crucial to the achievement of this strategy and processes are being developed to ensure the business remains fit for purpose as it increases efficiency in its existing businesses, and develops new revenue streams. Both divisions new CSR strategies are gradually being implemented, with initial phases introduced in 2009, and the roll-out continuing in 2010.
Board responsibility and management framework
It is important that both of our divisions maintain an open and productive dialogue with all of our employees, customers, suppliers and other stakeholders, and the Board has tasked each Divisional Managing Director with ensuring that these occur. The two Divisional Managing Directors are therefore responsible for CSR within their divisions. This responsibility also specifically includes Health and Safety and Employee welfare.
Significant CSR issues arising in or affecting any of our businesses are raised and discussed at each Group Board meeting. The Group Board and the Divisional Operating Boards have systems in place, including access to adequate information, to identify and assess CSR risks, and to ensure that these risks, and exposure to them, are managed appropriately.
Each Divisional Managing Director is also responsible for ensuring that high levels of health and safety are upheld throughout the supply chain; conduct their operations on a lawful, sound and ethical basis; and minimise potential reputational and operational risk to the Group.
We believe that our business conduct, policies and guidelines which we have in place concerning ethics, sound business practices and wider governance issues will not only enhance our standing in the community, but also provide a better business for all our stakeholders.
A description of the Company’s internal control system for management, particularly of financial risks, is in the Corporate Governance statement HERE.
An analysis of the key business risks facing the Group appears in the Business Review HERE.