CR in our business
Corporate governance
We aim for the highest standards of corporate behaviour. This requires strong leadership, clear governance and effective communication to staff of the behaviour we expect of them.
The Board considers strategic reputational risks every time it meets and discusses Corporate Responsibility strategy bi-annually. The Executive Committee receives regular updates on Corporate Responsibility performance, assesses future risks and opportunities, and develops our strategy in this area. Accountability for managing operational risks is clearly assigned to line management.
Formal risk assessments are carried out routinely throughout the UK and our international businesses. Significant risks and any control failures are escalated to senior management and the Board, as necessary.
Corporate Responsibility leadership is provided by a cross-functional committee of senior executives, chaired by one of our Executive Directors, Lucy Neville-Rolfe. Members of the Corporate Responsibility Committee are drawn from across the business, which ensures that corporate responsibility is at the heart of our daily operations.
As our business grows internationally, we recognise the importance of International Tesco participation in our Corporate Responsibility Committee and the work we do on the environment and in communities.
The Committee has an explicit remit to:
- assess risks
- develop corporate responsibility strategy
- review our social, ethical and environmental policies and practices
- encourage best practice throughout the business
- identify opportunities to improve the effectiveness and sustainability of the business using the Community Plan and other initiatives
- review, agree, monitor and report on our Corporate Responsibility Key Performance Indicators (KPIs)
- increase internal awareness of Corporate Responsibility
- improve stakeholder communication and engagement
In addition to the regular meetings, the Committee holds two away-days each year. External speakers are invited to comment on our CR performance, our strategy and reporting and to provide insight on key issues. This year, speakers have included Peter Madden (Chief Executive of Forum for the Future), Carolyn McCall (Chief Executive of Guardian Media Group), Matthias Schmalle (Director of International Division, British Red Cross), and Rosie Hurst (Director of Impact, ethical audit consultants).
CR COMMITTEE EFFECTIVENESS REVIEW
Each year we carry out an effectiveness review of the Committee, with Members asked to complete an anonymous survey looking at how the group has performed over the previous 12 months. The 2006/07 Review was carried out in February 2007, with Members giving positive feedback on the number of meetings, and the perspective that external speakers had brought. Members also asked for additional time to discuss key agenda items, and for additional International representation on the Committee. Nanbin Zhuang, Corporate and Government Director for our Chinese business, has now joined the Committee.
AWARDS
- Retail Week Awards – Consumer’s Favourite Retailer (March 07)
- Management Today Awards – Britain’s Most Admired Company; Britain’s Most Admired Leader; Quality of Management; Financial Soundness and Value as a Long Term Investment (November 06)
- Grocer Awards – Online Retailer of the Year, Grocer of the Year, Britain’s Favourite Retailer (June 06)
- Tommy Parent Friendly Awards – Best Supermarket; Best Online / Home Delivery Services (March 06)
- Silver Payroll Giving Award (May 06)
Developing our Corporate Responsibility strategy
The retail sector is undergoing rapid change, with increasing expectations of business on sustainability and community. Forum for the Future, supported by Tesco and Unilever, is conducting a wide-ranging exercise looking at possible futures for the UK retail industry in 2022, and the implications for corporate sustainability strategies. The project will first seek to understand the major trends and factors that will influence the retail sector’s development over the next 15 years. The second stage will use this information to develop possible futures for the retail sector in the UK in 2022. The third stage will use the scenarios to inform strategic conversations about sustainable development in Tesco and Unilever. Finally, the scenarios and key learnings will be shared with stakeholders at an event in autumn 2007.
Corporate Responsibility reporting
This annual Corporate Responsibility Review is our main method of reporting to our stakeholders on our social, environmental and ethical policies and performance. The Review covers both our UK business and our growing international presence. The drafting of this Review has taken into account the principles of the Global Reporting Initiative’s 2007 Sustainability Reporting Guidelines, and a GRI contents index is available.
Our Corporate Responsibility website www.tesco.com/cr contains further information, such as the full text of our various policies in this area, performance data for our international operations and case studies. The site also includes html and pdf versions of this Review.
Later in 2007, the website will also include summaries for each of our International businesses – showing their key challenges and key achievements from the past year, and their Corporate Responsibility KPIs for the year ahead.
Later this year the website will also include new summaries on our Corporate Responsibility priorities and achievements in every region of the UK.
Our overall approach to managing both financial and non-financial risks is set out in our Corporate Governance Statement of the 2007 Annual Report and Financial Statements, which can be found at www.tesco.com/corporate.
In August 2006 we distributed one million regional leaflets setting out our local community and environment achievements