RBS 2003 Annual Report Download - page 119

117
Annual Report and Accounts 2003
Report of the directors
Diversity
The Group is committed to recognising diversity in all areas of
recruitment, employment, training and promotion. The Group’s
business model is based on meritocracy and inclusiveness,
which allows all employees to develop their full potential,
irrespective of their race, gender, marital status, age, disability,
religious belief, political opinion or sexual orientation.
In 2003 the Group participated in a number of programmes
and activities in support of its approach to diversity and good
people management.
The Group’s benchmark ratings for age and race diversity
improved in 2003 and silver ratings in both Opportunity Now
and Race for Opportunity were achieved. The Group sponsored
the launch of the Age Audit toolkit by the Employers Forum on
Age, which had been piloted earlier in the year. The Group was
also a sponsor of the Guardian “Diversity in Britain”
Conference and the Opportunity Now Annual Awards.
Health, Safety & Security
The health, safety and security of employees and customers is
of paramount importance to the Group.
The Group has a continuous programme of reviewing its health
and safety policies in light of current legislation and best
practice, as well as to ensure that they meet the operational
needs of the business.
Corporate responsibility
Business excellence requires that the Group meets changing
customer, shareholder, investor, employee and supplier
expectations and the Group believes that meeting high
standards of environmental, social and ethical responsibility is
key to the way it does business.
The Board regularly considers corporate responsibility issues
and receives a formal report on these matters twice each year.
Further details of the Group’s corporate responsibility policies
will be contained in the 2003 Corporate Responsibility Report.
Code of ethics
The Group has adopted a code of ethics that is applicable to all
of the Group’s employees and a copy is available upon request.
Charitable contributions
In 2003 the cost of the Group’s Community Investment
programmes increased to £40.1 million (2002 – £33.7 million).
The total amount given for charitable purposes by the company
and its subsidiary undertakings during the year ended 31
December 2003 was £14.7 million (2002 – £14.7 million).
Corporate governance
The company is committed to high standards of Corporate
governance. Details are given on pages 118 to 121.
Political donations
No political donations were made during the year.
At the annual general meeting in 2002 shareholders gave
authority for the company and certain of its subsidiaries to
make political donations and incur political expenditure up to a
maximum aggregate sum of £675,000 as a precautionary
measure in light of the wide definitions in The Political Parties,
Elections and Referendums Act 2000, for a period of four
years. These authorities have not been used and it is not
proposed that the Group’s longstanding policy of not making
contributions to any political party be changed.
Policy and practice on payment of creditors
In the year ending 31 December 2004, the Group will continue
to adhere to the payment policy set out below in respect of all
suppliers. The Group is committed to maintaining a sound
commercial relationship with its suppliers. Consequently, it is
the Group’s policy to negotiate and agree terms and
conditions with its suppliers, which includes the giving of an
undertaking to pay suppliers within 30 days of receipt of a
correctly prepared invoice submitted in accordance with the
terms of the contract or such other payment period as may be
agreed.
At 31 December 2003, the Group’s trade creditors represented
27 days (2002 – 27 days) of amounts invoiced by suppliers.
The company does not have any trade creditors.
Auditors
On 1 August 2003, Deloitte & Touche, the company’s auditors
transferred their business to Deloitte & Touche LLP, a limited
liability partnership incorporated under the Limited Liability
Partnership Act 2000. The company’s consent has been given
to treating the appointment of Deloitte & Touche as extending
to Deloitte & Touche LLP with effect from 1 August 2003
under the provisions of section 26(5) of the Companies Act
1989. A resolution to re-appoint Deloitte & Touche LLP as the
company’s auditor will be proposed at the forthcoming annual
general meeting.
By order of the Board.
Miller McLean
Secretary
18 February 2004
The Royal Bank of Scotland Group plc
is registered in Scotland No. 45551.