Tesco 2007 Annual Report Download - page 23

Employment policies
The Group depends on the skills and commitment of its
employees in order to achieve its objectives. Staff at every level
are encouraged to make their fullest possible contribution to
the success of Tesco.
A key business priority is to deliver an ‘Every little helps’
shopping experience for customers. Ongoing training
programmes seek to ensure that employees understand the
Group’s customer service objectives and strive to achieve them.
The Group’s selection, training, development and promotion
policies ensure equal opportunities for all employees regardless
of factors such as gender, marital status, race, age, sexual
preference and orientation, colour, creed, ethnic origin, religion
or belief, or disability. All decisions are based on merit.
Internal communications are designed to ensure that
employees are well informed about the business of the Group.
These include a UK staff magazine called ‘One Team’ and the
equivalents in our overseas businesses, videos and staff
briefing sessions.
Staff opinions are frequently researched through surveys and
store visits. We work to deliver ‘Every little helps’ for all our
people across the Group.
Employees are encouraged to become involved in the financial
performance of the Group through a variety of schemes,
principally the Tesco employee profit-sharing scheme (Shares
in Success), the savings-related share option scheme (Save As
You Earn) and the partnership share plan (Buy As You Earn).
Political and charitable donations
Cash donations to charities amounted to £17,698,393
(2006 – £15,047,768). Contributions to community projects
including gifts-in-kind, staff time and management costs,
amounted to £43,412,965 (2006 – £41,768,741).
There were no political donations (2006 – £nil). During the year,
the Group made contributions of £41,608 (2006 – £54,219)
in the form of sponsorship for political events: Labour Party
£11,000; Liberal Democrat Party £5,350; Conservative Party
£4,218; Progressive Democrat Party £2,213; Fine Gael £1,476;
Fianna Fail £1,408; the Republic of Ireland Labour Party £234;
Trade Unions £15,709.
Supplier payment policy
Tesco PLC is a signatory to the CBI Code of Prompt Payment.
Copies of the Code may be obtained from the CBI, Centre
Point, 103 New Oxford Street, London WC1A 1DU. Payment
terms and conditions are agreed with suppliers in advance.
Tesco PLC has no trade creditors on its Balance Sheet. The
Group pays its creditors on a pay on time basis which varies
according to the type of product and territory in which the
suppliers operate.
Going concern
The Directors consider that the Group and the Company have
adequate resources to remain in operation for the foreseeable
future and have therefore continued to adopt the going
concern basis in preparing the financial statements. As with all
business forecasts, the Directors’ statement cannot guarantee
that the going concern basis will remain appropriate given the
inherent uncertainty about future events.
Events after the balance sheet date
On 20 March 2007, the Group formed a property joint venture
with The British Land Company PLC. The limited partnership
contains 21 superstores which have been sold from and leased
back to Tesco. The Group sold assets with a fair value of
approximately £650m to the joint venture which had a net book
value of approximately £350m; 50% of the resulting profit will
be recognised within profit arising on property-related items
with the remaining percentage deferred on the balance sheet
in accordance with IAS 31 ‘Interests in Joint Ventures’.
In March 2007, the Group issued two bonds: £500m paying
interest at 5.2%, maturing in 2057 and €600m paying interest
at 5.125%, maturing in 2047.
Auditors
A resolution to re-appoint PricewaterhouseCoopers LLP
as auditors of the Company and the Group will be proposed
at the Annual General Meeting.
Having made the requisite enquiries, as far as each of the
Directors is aware, there is no relevant audit information
(as defined by Section 234ZA of the Companies Act 1985)
of which the Group’s auditors are unaware, and each of the
Directors has taken all the steps he should have taken as a
Director to make himself aware of any relevant audit
information and to establish that the Group’s auditors are
aware of that information.
Annual General Meeting
A separate circular accompanying the Annual Review and
Summary Financial Statement 2007 explains the special
business to be considered at the Annual General Meeting
(AGM) on 29 June 2007.
By Order of the Board
Mr Jonathan Lloyd
Company Secretary
16 April 2007
Tesco PLC
Registered Number: 445790
Registered in England and Wales
Registered Office: Tesco House, Delamare Road, Cheshunt,
Hertfordshire EN8 9SL
VAT Registration Number: GB 220 4302 3
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THE BOARD AND THEIR
RESPONSIBILITIES