Coporate Responsibility - Rolls Royce

The Group believes that excellence in corporate responsibility delivers competitive advantage and contributes to long-term success. It helps the Group attract and retain the best people and maintain successful working relationships with customers, suppliers and governments. It also enables the Group to build goodwill and to support the communities in which its employees live and work.

The Group supports its own employees with well-developed policies and practices in health, safety and environment, employment policy and employee learning and development. The Group also operates proactive policies to manage its supplier and customer relationships responsibly.

The following paragraphs describe in more detail how the Group addresses specific aspects of its policy and practice in the field of corporate responsibility.

Supply chain

The Group makes its approved suppliers aware of the expected business requirements and performance standards through its supplier quality system, 'Supplier Advanced Business Relationships' (SABRe). This includes a supplier code of conduct and a health, safety and environmental management system, which set minimum standards. Regular visits are made to suppliers to assess their performance and a supplier awareness programme is delivered through conferences and regular communications. The Rolls-Royce purchasing code of conduct for employees complements the supplier code of conduct and ensures that employees act consistently with suppliers.

Health, Safety and Environment (HS&E)

Rolls-Royce recognizes that exceptional HS&E performance makes sound business sense. Our strategy is to protect our employees, contractors and the wider community; attract and retain a motivated workforce; maintain business continuity; avoid asset damage; and reduce overall costs. We also aim to have zero injuries and environmental incidents and to minimise the environmental impact of our operations.

Environment

The Group operates environmental management systems which are third party certified to the international standard ISO 14001. The Group continues to make excellent progress in improving the environmental performance of its products, with environmental impacts reduced by sustained investment in technology.

The Group also supports the long-term goals published by the Advisory Council for Aeronautics Research in Europe (ACARE). ACARE seeks, by 2020 from a 2000 baseline, to develop aero-engine technology to help reduce fuel burn and carbon dioxide emissions per passenger kilometre by 50 per cent, noise by 50 per cent and emissions of oxides of nitrogen by 80 per cent. Rolls-Royce engines for the Airbus A380 and the Boeing 787 show improvements in environmental performance which are fully consistent with achieving these goals. Similar programmes are being followed in the energy and marine businesses.

Occupational Health

The Group's strategy is to provide a progressive Occupational Health service recognized for delivering best practice based upon prevention and with processes fully integrated into the quality management system.

The Group recognizes the link between physical and mental health and the need for employees to enjoy working effectively and successfully with proper regard for their personal well-being.

In screening and surveillance, stringent targets are set for assessing fitness for work, reducing occupational disease and work-related ill health.

The Group's approach to managing workplace pressure has previously been recognized as an example of best practice by the UK's Health and Safety Executive (HSE) commissioned report on 'Beacons of Excellence'. Similarly its approach to absence management was cited by the HSE in its 'Better business' campaign.

Employment policy

The Group and employee representatives continue to work closely together to improve the quality of employee engagement and participation in the development of the business. It comprises employee representatives from countries worldwide and provides a structured approach to consultation and communication on international issues. The Global Council meets at least twice a year, supported by the Global Council's Executive Committee which progresses issues between the Council meetings.

The Group's policy is to provide, wherever possible, employment and training and development opportunities for disabled people. It is also committed to supporting employees who become disabled and to helping disabled employees make the best possible use of their skills and potential.

The Group actively encourages employee share ownership. All employees are regularly invited to participate in sharesave plans and the workforce has committed to save over £90 million to buy shares in the Company. In addition, statutory arrangements enable UK employees to receive part of their annual bonus in Company shares and make monthly share purchases from their salary.