BOC Report and accounts 2005 - Alle jaarverslagen
BOC Report and accounts 2005 - Alle jaarverslagen
BOC Report and accounts 2005 - Alle jaarverslagen
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26 The <strong>BOC</strong> Group plc Annual report <strong>and</strong> <strong>accounts</strong> <strong>2005</strong><br />
Social, environmental <strong>and</strong> ethical performance<br />
Exercising sound corporate responsibility is fundamental to the way <strong>BOC</strong> operates.The Group aims always to<br />
behave ethically <strong>and</strong> to manage risk strategically. It has a process for identifying, evaluating <strong>and</strong> managing all risks in<br />
accordance with best practice.<br />
This section outlines the Group’s systems for managing its social, environmental <strong>and</strong> ethical (SEE) risks <strong>and</strong><br />
opportunities - in line with guidelines set out by the Global <strong>Report</strong>ing Initiative, the Association of British Insurers,<br />
the UK’s Combined Code on Corporate Governance <strong>and</strong> the provisions of the US Sarbanes-Oxley Act 2002 as it<br />
applies to foreign private issuers. More details about <strong>BOC</strong>’s risks <strong>and</strong> corporate responsibility performance can be<br />
found in the sections on risk factors on pages 38 <strong>and</strong> 39 <strong>and</strong> on the company’s website, boc.com.<br />
The Group works actively with its stakeholders - shareholders, customers, suppliers, employees, local<br />
communities <strong>and</strong> governments. Underlining the Group’s adherence to best practice, <strong>BOC</strong> engages with a wide<br />
variety of employee, safety, environmental <strong>and</strong> community bodies.<br />
<strong>BOC</strong> is a signatory to the UN Global Compact.All Global Compact principles are integrated into <strong>BOC</strong>’s<br />
Code of Conduct <strong>and</strong>, in many areas, <strong>BOC</strong>’s existing st<strong>and</strong>ards exceed those set out in the Global Compact.<br />
In <strong>2005</strong>, <strong>BOC</strong> submitted its communication on progress to the Global Compact Office, according to official<br />
guidelines. <strong>BOC</strong> continues to review <strong>and</strong> adapt its business practices to achieve the Group’s SEE objectives<br />
<strong>and</strong> activities.<br />
Executive responsibility<br />
<strong>BOC</strong> has an integrated approach to SEE risks, managing them in the same way as all other business considerations<br />
through business unit <strong>and</strong> Group risk management programmes.These processes are applied to major business<br />
decisions such as acquisitions, disposals, new ventures <strong>and</strong> major supplier contracts. <strong>BOC</strong>’s business dealings are<br />
guided by a global Code of Conduct.The code sets out the safety, environmental, social, legal <strong>and</strong> ethical<br />
parameters that Group businesses <strong>and</strong> employees are expected to follow.The code is the responsibility of the<br />
executive management board (EMB), whilst <strong>BOC</strong>’s businesses are responsible for day-to-day implementation.<br />
EMB members are responsible for each of the code’s st<strong>and</strong>ards, supported by the appropriate business <strong>and</strong><br />
functional structures.The Group chief executive has ultimate responsibility for the code programme. He delegates<br />
oversight to an EMB sponsor board <strong>and</strong> day-to-day management to a code advisory group.The code advisory<br />
group is chaired by the general counsel, global compliance.<br />
Safety, health <strong>and</strong> environmental management systems are the responsibility of the Group chief executive <strong>and</strong><br />
are implemented by business managers, supported by the Group director for safety, health, environment <strong>and</strong><br />
quality (SHEQ).Workplace issues, including labour relations, diversity, equal opportunities <strong>and</strong> human rights, are<br />
managed by the Group director, human resources (HR). Market issues, including customer relations <strong>and</strong> ethical<br />
trading practices, are managed by the line of business chief executives.The director of supply management oversees<br />
<strong>BOC</strong>’s supply chain <strong>and</strong> ethical purchasing policy <strong>and</strong> reports to the Group chief executive.The Group director,<br />
corporate relations, manages community relations, including sponsorships <strong>and</strong> charitable support.<br />
The EMB regularly reviews Group systems for managing risks <strong>and</strong> opportunities, including business assurance<br />
audits, legal, SHEQ <strong>and</strong> HR reviews, appropriate training <strong>and</strong> communications, <strong>and</strong> performance management <strong>and</strong><br />
remuneration incentives through the Group’s performance contract process. Directors are provided with<br />
appropriate SEE training <strong>and</strong> communications. For example, they are given regular safety briefings <strong>and</strong> Code of<br />
Conduct progress reviews.Training on defensive driving <strong>and</strong> other SHEQ priorities is provided.The EMB sets a<br />
strategic direction with regard to all business issues, including SEE matters. Business units implement <strong>and</strong> develop<br />
the EMB’s strategy through their own management teams.<br />
Safety <strong>and</strong> other SEE measures, as required, are included in performance contracts. Part of the remuneration<br />
of business unit managers <strong>and</strong> their teams is dependent on achieving these measures.<br />
The Code of Conduct<br />
Launched two years ago, the Code of Conduct embodies <strong>BOC</strong>’s commitment to integrity <strong>and</strong> responsible<br />
business practice.This year, steps were taken to reinforce the effectiveness of the code <strong>and</strong> to build it into the way<br />
that <strong>BOC</strong> does business.<br />
The code advisory group met twice during the year.The role of the group is to establish globally consistent<br />
ethical <strong>and</strong> legal st<strong>and</strong>ards, to support the business in owning <strong>and</strong> upholding these st<strong>and</strong>ards <strong>and</strong> to respond to<br />
issues that may require <strong>BOC</strong> to adopt a new or revised position within the Code. Chaired by the general counsel,<br />
global compliance, the council comprises representatives from each line of business <strong>and</strong> Gist.<br />
A robust central tracking system was introduced to capture allegations from all the businesses <strong>and</strong> channel<br />
them to the global compliance function.The system not only records allegations that are subsequently<br />
substantiated, but also allegations that ultimately prove unfounded but that warranted further investigation.<br />
<strong>BOC</strong>’s network of sustainability managers is responsible for championing the Code within the businesses.<br />
Guidelines on communications <strong>and</strong> training were issued <strong>and</strong> each business unit head is required to report on<br />
progress within the quarterly performance contract review.<br />
The Code, available in ten different languages, can be accessed via boc.com, the intranet, CD or paper copy. It<br />
is linked to a number of other systems, notably the Group’s integrated management systems <strong>and</strong> st<strong>and</strong>ards (IMSS).<br />
<strong>BOC</strong> operates a confidential 24 hours a day/seven days a week helpline in 49 countries, supported by helpline<br />
promotional material in the form of posters, wallet cards <strong>and</strong> a screensaver. In <strong>2005</strong>, the Group introduced a<br />
quarterly Code report, distributed to senior management for onward cascade to all employees, giving a round up<br />
of news, recent violations, statistics <strong>and</strong> lessons relating to the Code.<br />
Code sustainability issues are reported to the EMB <strong>and</strong> appropriate managers on a monthly basis. In <strong>2005</strong>,<br />
the helpline received 155 allegation cases from around the world. 19 per cent resulted in disciplinary action <strong>and</strong><br />
57 per cent were found to be unsubstantiated or non-violations.The remaining cases are still being investigated.