Our Approach

Our Corporate Responsibility programme is intrinsically linked to the long-term, profitable growth of the Company. 

Sustaining our profitable, long-term growth
 

The Group’s Corporate Responsibility (“CR”) activity is not a separate programme of work, but a reflection of the way we want to do business.  The year under review has focused on putting in place the most important aspects of the CR strategy that were defined in 2012.

 

Good progress has been made during the year.  Employee engagement scores increased and remain high compared to industry averages.  Processes and controls for the management of health and safety and product integrity and the prevention of fraud, bribery and corruption have been strengthened, supported by new Group minimum standards.  The Group has further reduced its carbon and waste impact and significant progress has been made towards the Group’s two-year reduction targets.

 

More remains to be done. The Group’s injury and lost workday rates increased by 2 per cent, which was disappointing.  Clear standards, plans and targets have been set in this and other areas and performance will be closely monitored by the Board in 2013/14. The way in which each of our CR key themes underpins our business strategy is detailed in the "Key Themes" links, along with our progress and objectives for the year 2013/14.

 

Overview

The seven CR key themes are

• People development

• Health and safety

• Ethics and compliance programme

• Environmental performance

• Product integrity

• Sustainable construction

• Community engagement

Each theme exists because it supports the profitable growth of the Group whether through expanded gross margins, increased market share or improved productivity.  A well-trained and motivated workforce delivers exceptional customer service and strengthens the Group’s market share.  Reducing the number of days lost through injury improves productivity.  Reduced fuel and energy consumption lowers the Group’s cost base and expands margins.  More rigorous screening of suppliers and products leads to fewer defects with products and more reliable customer service.   The essential principle with all CR key themes is that they are integral to the way we do business.

 

Governance of Corporate Responsibility

Who has overall accountability and sets direction?

The overall programme is agreed by the Board and reviewed annually to ensure its ongoing relevance to business strategy, stakeholder expectations and broader national and international sustainability agendas.  The Group’s Company Secretary and General Counsel is responsible to the Board for the overall corporate responsibility programme and for maintaining regular dialogue with business units to drive performance.  Individual programme components receive more frequent review and input by the Board and the Executive Committee.

 

Who implements the strategy set by the Board?

With direction from the Board, business units define and execute local action plans.  Business unit plans differ according to their own particular level of development and the greatest opportunities for progress in line with strategy.  The Group Risk, Compliance and Sustainability team oversees implementation.  This team includes a dedicated Risk and Sustainability Manager.

 

Are targets and objectives set?

Objectives and, where appropriate, quantified targets are set for all CR programme components.  For some focus areas, Group-wide KPIs have been defined.  KPIs have not been set for all elements of the programme as it is not always practical to bring distinct local practices and reporting methods under one unified metric.  Improved performance is the primary goal.  Unified processes and measures are implemented where there is benefit in doing so.  The potential for further Group-wide performance metrics for future reporting will continue to be reviewed.

 

How is performance monitored?

Specialist teams in each business unit monitor performance for their specific area of responsibility.  The Group Risk, Compliance and Sustainability team monitor performance across all areas of the CR programme, with the exception of “People Development” (which is overseen by the Group HR function).  During the year Wolseley’s Internal Audit teams tested compliance with policy and adherence to procedures for a number of programmes, including the product integrity and ethics programmes.

 

How are risks assessed and mitigated?

Non-financial as well as financial risks are assessed as part of the Group's comprehensive risk management process.  These include fraud, corruption, product quality, employee, health and safety and environmental risks.  For further information on the Group's risk management programme, use the link in the top right hand corner of this page.