Community Initiatives
Supplier payment policy
The Group does not operate a standard code in respect of payments to suppliers. Each division is
responsible for agreeing the terms and conditions under which business transactions with its suppliers are conducted, including the terms of payment. It is Group policy that payments to suppliers be made in accordance with the agreed terms, provided that the supplier has performed in accordance with all relevant terms and conditions. At the year end, the amount owed to trade creditors by the Group was equivalent to 37.4 days (2007: 32.8 days) of purchases from suppliers.
Political donations
It is the Company’s policy not to make political donations and no political donations were made during the year (2007: £nil).
Community involvement
Each year the Board approves a budget for charitable donations of around 1% of gross dividends for the previous financial year. Donations are made through either the John M. Menzies Community Fund or the Charities Fund.
The Charities Fund
The Charities Fund is the Company’s main channel for supporting charitable causes or investing in
community projects. Its activities are managed by a Charities Committee, which is chaired by the Group Finance Director and met three times during the year. Altogether, the Charities Fund receives over 300 applications every year from very diverse charities and projects, both local and international. In 2008, the Committee reorganised its donation policy, and now provides larger sums of money to fewer organisations. Each divisional board is responsible for nominating charities to which they wish to provide funding and providing details of what any donation provided by the Committee will be used for. The Committee decides which organisations to support in that year, with charities selected to represent a broad geographical spread and range of benefits to adults and children. All donations made are intended to make a positive impact on the receiving charity, with measurable benefits. In 2008, a total of £142,500 (2007: £80,000) was donated to 27 (2007: 84) organisations.
Internationally, organisations we supported included Parikrma Humanity Foundation in Bangalore, India, which received £8,000. It focuses on breaking the poverty cycle and transforming communities by providing an environment for children to be integrated into mainstream society. Other organisations included the CTU earthquake appeal, which received £10,000 following the devastating Sichuan earthquake.
In the UK, organisations supported included Facing the World, which provides facial reconstructive
surgery for children which received £10,000, the National Schizophrenia Fellowship (Scotland), which received £10,000 and Maggies Cancer Care Centres which also received £10,000.
The John M Menzies Community Fund
The Group employs more than 18,000 people in 27 countries all around the world, many of whom participate in various forms of charitable, voluntary and other community-related work. We are supportive of these initiatives, and encourage and support these through the work of our Community Investment team. The John M. Menzies Community Fund makes individual cash awards of up to £350 per employee, or £700 per team of employees, undertaking a charitable or community project.
Such awards are made in consultation with the Managing Directors of each business. During 2008,
some 21 applications were supported by this Fund to a total of £8,250.