Corporate and Social Responsibility

Introduction

Our commitment to Corporate Social Responsibility (“CSR”) is included within our group procedures manual which sets out our undertaking to act ethically and responsibly in all of our business dealings with stakeholders and includes our ethics, fraud and whistle-blowing polices, which are communicated to employees. We do not permit bribery, anti-competition or corrupt practices in any dealings. We are committed to continuous improvements in all aspects of CSR – our polices, our systems, our performance and our reporting. Our management structure allows the consideration of social and environmental factors by both individual businesses within the group and also at a group level. Our links with external stakeholders continue to grow including improved customer liaison and community involvement. We aim to manage our relationships with our stakeholders and communicate with them professionally and responsibly. The board has identified its principal stakeholders as shareholders, customers, employees, suppliers and local communities and also recognises its responsibility to the environment. Responsibility to the board for relations with all our stakeholders lies with the Group Chief Executive and the board as a whole reviews key CSR elements.

We monitor our performance against objectives with the aim of continual improvement. In addition to improvements in respect of environmental and social responsibility performance, we have continued to make positive moves in waste and energy management, supply chain accountability, sustainable development, health and safety and staff development and welfare.

Our policy

Our policy sets out the framework for the development and implementation of CSR activities across the group. We will conduct all our business activities in a fair and balanced manner, respecting and responding to legal, social and ethical issues arising from our commercial activities. We are committed across the group to continued progress in the following areas:

• improving the quality of our products and services.
• becoming an employer of choice.
• improving our health and safety performance.
• working with the local communities around our businesses.
• protecting the environment and achieving sustained growth and profitability.
  

These areas reflect our main responsibilities as the leading European floorcovering distributor. They will inevitably be widened to encompass other stakeholders as our CSR programme develops.

Improving the quality of our products, processes and services

We aim to increase awareness and communication of the environmental strategy and commitments through a programme of employee training.

We work with our main suppliers to improve working practices and the environment management of our supply chain, although we recognise that main of our suppliers already work to exacting standards. We seek to improve in these areas and would comment on our commitment as follows:

• increase the use of environmental specification.
• increase the volume of certified sustainable natural products.
• reduce the amount of CO² emissions.
• reduce fuel consumption and vehicle emissions.
• reduce the amount of waste sent to landfill.
• increase recycling rates.
• reduce the amount of packaging.
• increase the use of green energy.
• reduce water consumption.
• encourage the use of whole life cost assessments.
• Encourage pollution prevention initiatives.

We seek to reduce energy and water consumption through the development of awareness programme communicated to employees, the introduction on repair, renewal or installation of energy or water efficient techniques and equipment.

We continue to invest in new facilities for our businesses which incorporate modern construction techniques and products. The group has a policy to replace the commercial and motor vehicles it operates every five years and three years respectively, so improving operational efficiencies and reducing operation costs and vehicle emissions.

Obligations placed on manufactures have resulted in the production of more efficient and less polluting vehicles with new Euro 4 compliant models, according to manufacturers statistics, has resulted in significant savings in all regulated exhaust emissions.

Our operations predominantly create waste materials in the form of protective plastic wrapping, cardboard and wooden pallets. Increasingly we collect the plastic and cardboard in discreet types and with the use of baler units that we have invested in over the last few years, dispatch these to specialist re-processing agents.

Wooden pallets are re-cycled where possible or sent to specialist re-processors. In addition we recycle the cardboard poles that are used in the centre of rolls of carpet and vinyl until they are no longer capable if being re-used. In these ways we have reduced the amount of waste that is sent to landfill sites. Guidance on waste management is issued to managers of the individual businesses to increase awareness of the need to control waste.

We continue to work with our suppliers to improve the re-cycling content of packaging materials and consequently reduce our packaging waste.

Higher risk parts of the facilities, such as fuel and lubrication stores and fork lift truck battery charging areas, have containment and inspection regimes which meet legislative requirements.

In order to support our customers and develop relationships, we travel to their sites when necessary. We attempt to minimise this impact by the use of audio conferencing, however face to face contact I essential to the business. The choice of airline routing and number of travellers is generally based on cost and timetable availability, direct flights and modern aircraft being preferred.

Good relationships are maintained with national and local regulatory organisations such as Environment Agency and Environmental Health Departments in the UK. Processes are in place to keep up to date on regulatory issues and are the subject of regular review. The amount of environment legislation is growing, resulting in increasing training and compliance costs. Staff training in health, safety and environment matters is important and is reviewed annually as part of normal appraisal processes.

Becoming an employer of choice

At the heart of the group are our people who seek to deliver the best for the business, which combined with a fair and responsive way of doing business, generates a common ambition to add significant value. Our policy towards employees is set out in the Director’s Report in the section on employment, training and development.

Improving our health and safety performance

The group attaches great significance to the management of the health, safety and welfare of both its employees and others. To this end we have adopted a policy that is available for inspection at all operating locations and which reviewed on a regular basis. The board has put in place polices that seek to ensure that group operations are carried out at all times in such a manner as to ensure, so far as it is reasonably practicable, the health and safety at work of employees and all persons likely to be affected, including other contractors, customers, staff and members of the public where appropriate.

The value of employee participation in delivering this commitment is recognised and management teams are encouraged to create a supportive culture. To achieve this we endeavour to ensure that we:

• continue to improve health and safety systems, procedures and guidance.
• make personnel aware of this policy.
• maintain high standards of health and safety.
• maintain a consistent reporting structure.
• provide adequate resources
  

Investment in automated dispatch sortation equipment has significantly reduced manual handling in hose businesses where they have been installed which will turn reduce the number and frequency of reported manual handling accidents.

Training in health and safety awareness, impending changes in relevant legislation and other specialist subjects is fully supported. Health and safety activities are verified by regular site audits and inspections. During this year the group health and safety policy was introduced into recently acquired businesses. This coordinated approach, with a common policy approach throughout the group, improves our governance and shows additional commitment to being an employer of choice. Good relationships are maintained with regulators in the areas in which we operate.

During the year we have improved policies on work related driving and stress, where new approaches have been launched. Feedback from health and safety committees has also been used to develop health and safety improvements. Whilst we aim for lower levels, the low level of accidents reflects the success of our health and safety policies.

Working with local communities around our business.

We recognise that our business should be conducted in a socially as well as environmentally responsible way. Listening to and learning from what our customers, employees, suppliers and other stakeholders tell us about what is important to them is a feature of how we work. It has helped us keep in touch with what is happening in the markets in which we operate. We are committed to managing the social responsibilities connected with our business in an open and honest way. We try to make a positive contribution to all the communities in which we operate. We support local community activity and give charitable donations. Where suitable opportunities are presented, the focus is on creating links that are sustainable, and on improving the image and understanding of the business in the community. Examples include the provision of work experience placements for local schools, the use of facilities, employees acting as school governors and engaging with local organisations.

Protecting the environment

The board is committed to keeping the environmental impact of the group’s facilities and activities to a minimum. We have a structure in place that facilitates the pooling of information and resources to ensure best practice is shared across the group. In recognising our responsibility to protect the environment we have adopted an environmental policy which is reviewed periodically. Our policy seeks to cover the various aspects that affect our businesses, including the following:

• maintaining a management framework for implementing the environmental policy objectives into business decision making, alongside commercial, safety and other factors.
• complying with applicable environmental legislation, regulations and standards.
• developing operational procedures designed to minimise pollution risks and to deal effectively with any incidents which occur
• taking positive action to minimise waste and to encourage recycling wherever practical.
• improving efficiency in the use of facilities, energy, water and raw materials.
• working with our advisors, suppliers and sub-contractors to ensure effective environmental supply chain management, alongside quality, price and other purchasing criteria.
• reducing the environmental impact of our products through improved design and specification.
• training employees to enhance their awareness of, and commitment to, maximising environmental policy periodically to take account of organisational, legislative and fiscal changes.

The group seeks to improve its environmental performance and to minimise the impact of its operations.

Achieving sustain growth and profitability

Whilst achieving the group’s goal of sustained growth and profitability in future years, there are a number of key areas which will assist in the attaining the financial at the same time as meeting corporate social responsibility obligations.

Through improving our understanding and control of our supply chain, we shall continue to investigate the benefits from using green specification guides and modify our strategy accordingly. We shall continue to work with suppliers to ensure products are supplied from renewable sources and that their manufacturing processes fairly reward employees and do not seek to exploit. We shall continue to work with our suppliers to investigate the potential for improvements in product design. Where choice of suppliers is possible, various procurement methods are used depending on the type of product or service being procured. Local suppliers for service functions to our businesses are used where commercially practical. There are no significant supply contracts which are essential to the business of the group.

We place great importance on effectively managing our operations to minimise the likelihood of adverse impact. We proactively manage our facilities to minimise energy consumption utilising energy efficient lighting and heating. Our new sites are subjected to an environmental assessment prior to any construction taking place. This allows solutions to any identified environment issues to be incorporated into the planning process. Recognising that development can be potentially damaging, we seek to minimise energy consumption during the construction of new premise and the effects on the environment. Wherever possible, subject to the operating constraints of the business, existing trees and vegetation are retained and augmented as necessary. Existing sites are maintained in a tidy condition to minimise ecological impact.

As part of our commitment to sustainable development we work with transport consultants to formulate green travel plans incorporating car sharing schemes and provision for bicycles when designing new facilities.

We recognise that our business operations will be around for many years, having an impact on future generations, and to this end we work with local authorities to design new properties which not only comply with guidelines but seek to blend in with their surroundings though the careful use of quality materials, landscaping and design features. We support the desire to see development take place in sustainable locations.

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