| Corporate Social Responsibility Report |  |
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In last year's report we set out our CSR policy and commissioned
a study which identified the CSR issues that we consider to be
the most important to our business:
- How we treat our tenants;
- How we look after our employees;
- How we meet environmental, social and legal requirements;
- How we support the communities in which we operate
Based on these issues and with the aim of improving our
performance, we defined our three year objectives which are
set out on the following pages.
We have made satisfactory progress against
these over the course of the year and our key
achievements are described in more detail later
on. This report describes each objective and
contains case studies demonstrating our CSR
in action.
As part of the risk assessment process (see
corporate governance report), the board
considers all risks including environmental risks
and health and safety risks. A CSR committee
has also been established, with representation
from across the organisation. Rupert Dickinson
heads the committee, demonstrating the group's
commitment to CSR. He has overall responsibility
for community issues, although other senior
management are also involved.The main purpose
of the committee is to disseminate information
around the group and involve other employees
in specific CSR projects where their roles or skills
are relevant.
Grainger is a forward-thinking entrepreneurial
organisation, which seeks to conduct its
business in a socially responsible manner at all
times. We believe that this is achieved by being
mindful of an overall framework of suitable
standards, rather than by abiding by hard
and fast, self-imposed CSR regulations.
Grainger, in common with all businesses, has
many stakeholders, with differing requirements.
Our business is rooted in communities, and
can affect the lives of many tenants and the
communities in which we operate. The focus of
our energy externally is therefore on social and
community issues. Internally, Grainger recognises
the value of its employees, and provides staff with
a clear path to reward and recognition for success.
We are in the process of defining suitable
CSR Key Performance Indicators (KPIs) in
order to monitor our progress and performance.
These are presented for the first time this year,
under the relevant objectives section, and contain
historical information where it is available. As
Grainger pursues strategies into new business
areas, we will develop further appropriate KPIs.
Finally, although not a full audit opinion, an
external commentary has been provided by
Casella Stanger, similar to last year.
External commentary 2004
Grainger Trust CSR Performance
Casella Stanger are pleased to be invited
again to comment on Grainger Trust's progress
since the publication of their first Corporate
Social Responsibility (CSR) Policy in 2003.
Last year four key objectives were established
to improve CSR performance and Grainger Trust
is reporting on their progress to date, as well as
setting out plans for the future.
It is extremely encouraging that Grainger Trust
has also been very clear in establishing plans
for future improvements in CSR that will be
co-ordinated and reviewed by a specific
Board-level CSR Committee.
In our opinion, Grainger Trust has made good
progress in its first year against their CSR
objectives. In particular, the establishment
of "Charity of the Year" and a focussed
programme for employee involvement in
charitable activities are to be encouraged. In
addition, Grainger Trust's activities to support
employees and merge terms and conditions
of employment is to be commended. Grainger
Trust's identification of KPIs in some key CSR
areas demonstrates that more formal data
collection and reporting has been established
and that year-on-year data will begin to show
performance and further demonstrate progress.
The focus for Grainger Trust over the coming
year should be to communicate its CSR policy
and progress to stakeholders, as well as
gathering data in a simple and formalised
manner. Grainger Trust will then be able to
assess the costs, benefits and value added
from its CSR programme.
We look forward to working with Grainger Trust
as it develops its CSR reporting in future years.
Prepared by
Emma Griffiths
Principal Consultant
Casella Stanger
Reviewed by
Ken Smith
Business Director
Casella Consulting
Grainger CSR committee
Terms of reference
- An executive director of Grainger will head the CSR committee
- It will report through that executive director to the board where appropriate
- The committee will aim to meet quarterly, subject to there being matters for consideration
- The main purposes of the committee are initially to:
- Review progress against the three year objectives;
- Plan, implement and monitor targets set to achieve these objectives by involving other group employees and/or consultants as appropriate;
- Disseminate CSR information to stakeholders.
- Prepare new objectives relevant to Grainger situation at that time;
- Initiate any further projects necessary to achieve these objectives;
- Re-evaluate communication to stakeholders, to ensure information is communicated effectively.
and after the initial three year phase to:
Objective 1
To identify CSR issues and develop a strategic response to stakeholder information requests.
Our key CSR issues were identified with Casella
Stanger, and they reported on these in September
2003. Casella also assisted in our response to an
EIRIS report.
We have recognised that our tenants are our
biggest group of non-financial stakeholders.
As such, our initial focus has been on ensuring
that they are treated with respect and understand
how and when to contact us.
The last year has seen significant changes in
Grainger, with the bringing in of the former
Bromley joint venture. Property Management -
the term we use to describe all dealings with
tenants, has been brought under one roof -
Grainger Residential Management. All property
management activities are performed under this
name, from repairs to rent collection. Reviews
of best practice in several areas of property
management have been completed and others
are ongoing, to ensure that we offer a consistent,
efficient and effective service to our tenants and
contractors. We have several payment methods,
allowing tenants to choose the most suitable
for them and there is a centralised, dedicated
telephone number for rent queries. We have
arrears targets each year, which have fallen
relative to our rent roll year-on-year. Repairs,
however, are dealt with locally, from our offices
and agents around the country, where we feel
our tenants can best be serviced. We utilise the
skills, flexibility and local knowledge of many
small contractors.
Gittisham
In April 2004, an opportunity arose for Grainger
to enhance its property portfolio and provide
some security to existing tenants. 27 properties
in the picturesque village of Gittisham in Devon
had been put up for sale by the landlord. Grainger
stepped in to buy 15 of the properties, giving
assurances that the village community would
be preserved and that residents would be able
to stay in their homes long-term.
EPRA Award
In September 2004, Grainger was delighted
to receive the EPRA Best Small/Mid-cap
Performance Award, based on the year ended
December 2003 in a ceremony in Berlin. EPRA
(European Public Real Estate Association) is
a common interest, not-for-profit organisation,
which has aims to promote, develop and
represent the European public real estate
sector. It endeavours to establish best
practice in accounting, reporting and
corporate governance.
The trophy was awarded on the basis of total
shareholder return, providing certain standards
of corporate governance had been maintained.
- Number of tenants paying by direct debit At 30 September 2004 5,295 tenants paid by direct debit. This is 43% of all tenants. A further 13% paid by swipe card. These electronic methods make rent payments easier for both the tenant and us. We regularly send out letters offering these payment methods to tenants.
- Number of complaints We have started to collect data regarding complaints, and expect to report next year.
Objective 2
To formalise HR systems to provide support and appropriate CSR training for all staff.
We have made a significant effort to integrate the staff from Grainger and
the former Bromley joint venture. Terms and conditions were somewhat different,
and almost all have now been harmonised. All staff are now employed by one group
company and development and training activities encompass staff from all of
our offices as appropriate.
We now have standardised policies relating to all significant employment issues,
including equal opportunities, further education, family leave, harassment,
and maternity.
Worthy of note again this year is our enlightened attitude towards our employees.
The group's share schemes have been opened up to the former Bromley staff, so
that approximately two-thirds of staff are now shareholders.
Grainger is an entrepreneurial organisation. Staff of all levels are encouraged
to put forward ideas and all are given consideration. Although formal employee
satisfaction surveys are not yet undertaken, employees are encouraged to give
feedback, particularly during the performance review process.
In September 2004 a diligent process of formally aligning each employee's personal
objectives with the overall objectives of the group was initiated. Objectives
for each 'division' were agreed between the head of that division and the executive
board member responsible for that division. As performance reviews were performed,
the objectives of the organisation were cascaded throughout and personal targets
set which were in line with the overall objectives. Further training needs in
order to achieve objectives set are being gathered together, therefore we can
be certain that the money we spend on direct training will specifically enhance
our ability to meet stated objectives.
We also support employees to achieve further relevant qualifications through
our further education policy. During the year to 30 September 2004, we sponsored
13 employees to obtain degrees or other professional qualifications, plus seven
employees studying for the IRPM – the Institution of Residential Property Manager's
qualification.
Ann Johnson is one of several sponsorship success stories for Grainger. Her
achievements were featured in the local press in August 2004, when she graduated
with a BA in Housing Sustainable Communities and also won an award from the
Chartered Institute of Housing, North East Region for Best Undergraduate Student.
Ann joined Grainger in 1997 as a secretary to the surveying department. She
has taken on more responsibility over the years and has recently moved to another
position within Grainger land and regeneration division. We feel this demonstrates
Grainger support and development of staff for the benefit of the group as well
as the individual.
Grainger take all staff matters seriously. The group employs an HR manager for
general matters and a specific HR manager for training and development. Both
of these employees report directly to the deputy chief executive officer and
finance director, who has overall responsibility for HR. No changes to terms
and conditions are made without consultation with relevant staff.
A full overhaul of our intranet is ongoing. The end product should be a most
useful tool for both communicating with our employees and as an invaluable source
of best practice guidelines. The CSR policy will be included on it. It is intended
that our progress on our CSR objectives will be updated after each CSR committee
meeting. Employees will be encouraged to offer suggestions and take part in
charitable events.
The health and safety of our employees is also paramount. We have an overall
policy and significant guidance on our current intranet.
| Figure 9 - Grainger staff statistics | |
| At 30 Sept 2004 | |
| Women in senior management/ holding board positions | 3 |
| Total members of staff | 177 |
| Year ended 30 Sept 2004 | |
| No. staff who received training | 125 |
| No. staff sponsored in further education | 20 |
| No. leavers | 23 |
Objective 3
To structure our approach to charitable giving and community support.
We have taken time to consider how best this
objective can be achieved so as to ensure our
actions are appropriate for our varied
stakeholders.
The regeneration of arts and culture is important
to Grainger and as a company we have made a
commitment to make sure our business supports
the cultural development of the North East region,
where Grainger has its roots. Following the
sponsorship of Antony Gormley's 'Domain Field'
exhibition at the Baltic last year, this year we
sponsored an English Heritage project – Fashion
at Belsay (FAB). Well-known fashion designers
and some not so well known from the University
of Northumbria, each selected an area within
Belsay Hall and its grounds, to create an original
piece of work. Grainger guests were invited to
the launch night and we also held an event at
our year end to thank the key people we work
with in other organisations. We aim to sponsor
one prominent art related event each year.
In the South of the country, we have been
investigating several potential partnerships.
We are pleased to announce that we have
agreed to support Open House on an ongoing
basis. Open House is an architectural education
charity with three principal objectives:
- To foster public awareness and appreciation of London's excellent built environment and architecture through free access
- To promote architectural literacy and further a better understanding of architecture and the public environment across all sections of the community, particularly with children and young people
- To create dialogues about the present and future environments between the Capital's residential and business community
From the current financial year, which started in October 2004, we will be nominating a charity of the year. If employees participate in sponsored events, then Grainger will match the sponsorship raised up to £100 per employee, provided it is donated to our charity of the year. We are delighted to announce that our first nominated charity is Shelter – the housing and homelessness charity. Shelter aim to end homelessness and bad housing in Britain by advising and campaigning, as well as research and fundraising. Shelter was a natural choice for us, but we will be defining appropriate conditions and criteria for our future nominees.
Each office will also be encouraged to organise a fundraising event in aid of our chosen charity. Employees organising these events will be invited to the next CSR committee meeting to report the outcome.
Other events in which we participated during the year include the Cancer Research 'world's biggest coffee morning, where employees baked cakes and sold them, with the proceeds going to the charity, and 'JeansforGenes' day.
In total in 2004 we gave £25,455 to charitable causes. This included £1,000 for a new 85cc scrambler bike for a 14 year old boy in Hadston, one of our development areas where we have worked closely with the local community. His own new bike had been stolen and without one he could no longer participate in moto-cross, where he had won 75 trophies in the two previous years.
Objective 4
To ensure compliance with all applicable social and environmental legislation as a minimum.
As a matter of course, senior managers read
relevant trade press, and are therefore aware
of regulations which could materially impact
on Grainger, as they develop. In this current
climate of constantly emerging legislation, it
is increasingly difficult to monitor and interpret
its volumes. We therefore took the decision
to maintain a register of all relevant legislation,
which is provided to us and regularly updated
by consultants who specialise in this field.
The committee will review the register after
each update in order to disseminate changes
to senior management whose departments will
be affected.
We monitor our performance where key
regulations affect us. The main one relates
to the necessity for a landlord to check gas
supplies/appliances. The Gas Safety (Installation
and Use) Regulations 1998 place a duty on
landlords to ensure that gas appliances, fittings
and flues provided for tenants' use are not
posing a health risk. The inspections must be
undertaken by a CORGI registered contractor in
each dwelling on an annual basis, and remedial
action must be taken where required. Sometimes
it can be difficult to gain entry for various reasons,
and we have best practice guidelines which are
followed rigorously to ensure both tenant and
landlord protection.
Another major concern for us is that the
contractors we engage adhere to the relevant
health and safety standards. All contractors
and consultants employed directly or indirectly
(via agents) by Grainger are to be risk assessed
and the results held on a database.
The database will include the following details:
- Area of operation and expertise
- Date of assessment/approval
- Current public liability insurance
- Member of specialist organisation
(i.e. Corgi/FENSA)
Grainger land and regeneration division is becoming increasingly involved in both social and physical regeneration. Of note this year is a joint venture/partnership arrangement for the redevelopment of a 30-acre brownfield site at North Shields, Tyne & Wear. Significant contamination exists at the site, which was viewed as potentially harmful to the surrounding community.
In the South East, Grainger has begun to work on projects to redevelop run-down locations. We are pleased with the progress we have made on these projects, which demonstrate effectively how business can be conducted with favourable social outcomes and expect to be able to report further next year.
In 2005 we hope to develop briefing notes for staff on the CSR legal requirements of their activities. This will be as a result of a thorough review of our register of legislation.
Having made a tentative start, based on careful consideration, we hope to make significant progress on all of our stated objectives over the coming year.
The most significant environmental issues affect primarily some 10% of the business - our development and trading division, further we negotiate with external parties to ensure standards are maintained. In Grainger Homes, for example, we employ a main contractor for each site and that contractor takes the responsibility for all health and safety and environmental matters on that site. Our agreement with the contractor stipulates minimum standards, and requires compliance with all applicable legislation and regulations.
No separate environmental report is therefore produced. Following further CSR work, we will attempt to justify the expense of a formal environmental audit, whilst considering any likely benefit.
We are able to report that we now recycle waste paper in our offices and during the period between November 2003 and 30 September 2004 we have saved over 100 trees.
Health and safety policy
We have duties to our employees, tenants of owned or managed properties, contractors, visitors, clients and the general public.We aim to:
- Comply with the Health and Safety at Work etc. Act 1974 and all relevant statutory provisions.
- Provide adequate resources to enable this policy to be implemented.
- Ensure the health, safety and welfare of our employees and others who may be affected by our activities.
- Provide such information, instruction, training and supervision as is necessary to ensure the health and safety of our employees.
- Ensure that all plant and equipment under our control is maintained in a safe condition and is subject to routine and statutory inspections and examinations.
- Ensure that assessments of the risks arising from our activities are undertaken and the appropriate control measures and safe systems of work are implemented.
- Ensure that all accidents and dangerous occurrences are reported and where necessary, investigated and appropriate action taken to prevent recurrence.
