Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) Dr Martin Blake BSc MBA DBA Head of Social Responsibility, Royal Mail Group plc BCCH CSR Seminar 25th October 2006

Royal Mail Group plc context • One of the largest employers in the UK c.193,000 employees • Deliver 84 million items to 27 million addresses every working day • Parcelforce Worldwide and General Logistics Systems deliver 337 million parcels per year • 35,000 vehicles travelling 1.8 million miles a day • 160 million litres of diesel annually • 14,300 Post Office outlets • Increasingly competitive market

Link between Sustainability and CSR Environmental protection Social wellbeing Health & safety Royal Mail Group plc’s CSR activities Diversity & inclusion Sustainable development Economic prosperity Community investment

Why are we managing CSR? • Communities prefer companies that create jobs, incomes and contribute to the economic and social cohesion that builds the neighbourhoods where people want to live and work • Customers prefer to buy from companies that share their values • Employees prefer to work for companies that provide a healthy and safe environment and whose values align to theirs • It is also simply the ‘right thing to do’.

CSR within Royal Mail • The safety of our people and our customers • The well-being (health) of our people • The environment • The communities we operate within • The diversity of our workforce • The security of our customer’s mail. Covers a wide range of issues including:

Sustainability Strategy and Tactics Sustainability Strategy (100% of impacts) Carbon Management Programme (tactical focus) – c.80% of impacts 1 8 7 2 9 Other environmental projects – e.g. water & waste. c. 20% of impacts 6 3 4 5

Royal Mail Group Plc.’s Carbon Management Programme

Regulatory environment • UK Government – support provided through CSR function in the Dept. Trade & Industry (www.csr.gov.uk) • Establishment of CSR Academy (www.csracademy.org.uk) • Current UK position – predominantly voluntary rather than regulatory approach; supported by most UK corporates • CSR driven by business case – cost savings, employee motivation and retention, brand value, risk management and because it is the right thing to do • Government’s role to further incentivise the business case – as with tax breaks for payroll giving.

‘Better Business Journey’ toolkit Produced by the UK Small Business Consortium which includes the British Chambers of Commerce, Business in the Community, CSR Europe and the Institute of Directors. Focused on four key areas of 1) People 2) Premises 3) Promotion and 4) Purchasing. www.betterbusinessjourney.com

Responsible recruitment/ Equal opportunities Staff training, career development, motivation & retention Healthy workplace Teamwork Community involvement Flexible working/ Work-life balance THE PEOPLE JOURNEY DID YOU KNOW? 3 in 5people want to work for a company whose values are consistent with their own • People are the most important resource businesses have, so their satisfaction is recognized as a key component of business success.You can increase your company’s competitiveness by • developing the competence of all your staff • enabling staff to play an active role in the community • employing a diverse workforce • promoting the health and well-being of employees and contractors. DID YOU KNOW? 79%of smaller businesses believe that they should be involved in encouraging a healthy work-life balance amongst their staff DID YOU KNOW? 40mworking days are lost to ill health and injuries each year and staff absence costs business £11billion per annum

Recycling Employee & business transport policies Internal environmental impacts External & neighbourhood environmental impacts Energy usage/costs Becoming carbon neutral Disability access THE PREMISES JOURNEY DID YOU KNOW? 86% of UK adults believe the environment is the most important issue for companies to focus on • It makes sound business sense to try and reduce the negative environmental impacts of your business. This involves • reducing greenhouse gas emissions from energy use, transport and industrial processes • using energy and raw material efficiently • reusing/recycling products and waste where possible • setting achievable targets to manage your environmental impact. DID YOU KNOW? 10% reduction on energy bills can be achieved without any capital investment DID YOU KNOW? 80% of small businesses believe that they should be involved in waste reduction and recycling

Responsible advertising Positive PR/publicity Awards Standards Product & service innovation Accessing new markets THE PROMOTION JOURNEY DID YOU KNOW? 51% of the British public say they have chosen a product or service because of its responsible reputation By communicating your responsible activities to a wider audience you will find that you inspire many others to do the same and your example could lead to much bigger impacts. • make sure your staff know about what you do and can talk about it • generate positive publicity through local, regional or national media • tell your customers, suppliers, investors and other stakeholders what you are doing • enter relevant award schemes. DID YOU KNOW? 81% of UK websites are inaccessible for disabled users DID YOU KNOW? 62% of small businesses don’t use the internet to market their goods and services

Local sourcing Supplier criteria Responsible procurement Buying fairly traded products Paying on time THE PURCHASING JOURNEY DID YOU KNOW? 85% of businesses view late payment of suppliers as ‘unethical’ • Responsible purchasing means operating to the highest standard of business integrity. This includes • supporting and encouraging existing suppliers to be responsible • choosing responsible new suppliers, treating them fairly and with respect, • paying them on time • locally sourcing products or services where relevant. DID YOU KNOW? 1 in 4 business failures are a direct result of interruption to cash flow DID YOU KNOW? 43% of small businesses have been asked by larger customers about environmental practices

For further information contact Dr Martin Blake Head of Social Responsibility Royal Mail Group plc Unit 6 Ancells Court Rye Close FLEET GU51 2UY Tel: +44 (0) 1252 773011 Email: CSR@royalmail.com www.royalmailgroup.com

‘Passionate about progress’

Corporate Social Responsibility (CSR)