72 John Lewis Partnership plc Annual Report and Accounts 2016 Partners’ rights and responsibilities
Under the Constitution every Partner is responsible for knowing, complying with and upholding the Partnership’s Principles and those Rules which concern them.
Please see the Partnership Council report for
more information on how Partners’ opinion is voiced through the Partnership Council. Pages 78 to 81 >
What is the Partner’s role in how the Partnership is governed?
Our Partners are able to influence business decisions at all levels of the Partnership through the democratic structure and representative bodies that are set out in our Constitution. The governing authorities’ power to direct the Partnership’s affairs depends on the consent of Partners. Partners express their opinions through:
a Formal arrangements for sharing knowledge, such as the open system of journalism for the Gazette and the annual Partners’ Survey
a Representative bodies, as shown on page 64
a Through personal contact between Partners and their line managers
How do Partners share in profit?
Our success depends on the collaboration and contribution of our Partners who, in return, receive a share of profits in the form of Partnership Bonus. See page 3 for more information on this year’s Partnership Bonus.
The Partnership operates BonusSave, a Share Incentive Plan (‘the Plan’), which is available to all Partners in the UK and has been approved by HMRC. In conjunction with the announcement of the annual results, Partners are invited to enter into a savings contract under the Plan to save up to a maximum of £5,400 in any one year from Partnership Bonus. The Plan allows for the investment made by Partners to be held in shares in the Partnership, in a class created specifically for this purpose known as SIP Shares. Details of SIP Shares can be found in note 5.5. The SIP Shares do not carry voting rights, cannot be sold or transferred out of the Partnership and are, at all times, held in trust for the benefit of the respective Partners in the name of the Trust Company.
Sharing knowledge and relations with Partners
Partners are provided with the knowledge they need to fulfil their responsibilities as co-owners of the Partnership. The Code requires that boards should ‘maintain a dialogue with
shareholders based on mutual understanding and objectives’.
The Partnership Board is committed to regular dialogue with Partners, as co-owners of the Partnership and in accordance with Principle 1. Partners are updated weekly on the performance of the Partnership through the Gazette magazine, other journalism and the Partner Intranet. There is a regular flow of information at all levels of the business through meetings held by elected councils and local forums and an open system of journalism operated through the Gazette, which also enables Partners to submit questions to management on any subject. Questions are answered within 21 working days. The Gazette is published weekly and made available to all Partners.
During Council and forum meetings and through the Gazette, Executive Directors and senior management are able to share the Partnership’s objectives and discuss performance against those objectives. Partnership Board Directors also attend Partnership Council meetings. Each of these information-sharing opportunities, as described above, enables all Directors to develop an understanding of Partners’ views and to act upon them. In turn, Partners are enabled to influence decision-making.
Through our website, we share information with Partners and financial stakeholders (primarily the Partnership’s relationship banks and bond holders, as well as preference share holders) on the financial performance of the Partnership and where practical to do so, invite representatives of the investor community to attend our trading updates in person. This gives an opportunity for the investor community to hear from, and engage with, the Partnership’s senior management.
Equal opportunities
The Constitution provides for the democratic involvement of employees (our Partners) as co-owners of the business. Partners are provided with extensive information on all aspects of business operations, including
economic and financial factors affecting performance, and are encouraged to take an active interest in promoting the Partnership’s commercial success. All Partners can benefit from the Partnership’s training and development policies, and further information can be found on page 49.
The key purpose of our Equal Opportunities Policy is to provide equality and fairness for all those who work for the Partnership by creating an environment free from discrimination, where all Partners are given equal opportunities to develop and progress. The Partnership aims to develop and maintain a workforce that is fully representative of the society in which it trades, where every Partner feels respected for their contribution, works to the best of their ability and feels supported to develop to their full potential. The Partnership seeks to offer all Partners equal opportunity to grow their careers and develop their pay based on individual contribution.
This applies as equally to our Partners with a disability as it does to any other group covered under protected characteristics. The Partnership recruits people with disabilities to suitable vacancies on merit. Where disability occurs during the period of employment, every effort is made to continue to provide suitable employment with the provision of appropriate training.
Discrimination on the grounds of disability is prohibited by the law and this is reflected in the Equal Opportunities Policy. This includes direct and indirect discrimination, any unjustified less favourable treatment because of the effects of a disability, and failure to make reasonable adjustments to alleviate disadvantages caused by a disability.
Diversity and inclusion
The Partnership seeks to embrace diversity. The Partnership Board is therefore committed to providing equal opportunities for all in employment at all levels of the organisation, regardless of individual differences such as gender and ethnic origin. Further information can be found on pages 48 to 50.
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