John Lewis Partnership plc annual report and accounts 2013
Directors’ Report continued
organisation, regardless of individual differences such as gender, age and ethnic origin.
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.
The Partnership Board recognises that balanced and diverse boards are effective boards. One third of the Partnership Board’s 15 directors are women.
Corporate social responsibility
The terms of the Partnership’s Constitution clearly define the behaviour expected towards customers, suppliers, the environment, the wider community and its Partners. Corporate Social Responsibility (CSR) programmes and governance structures have been developed based on these provisions. The principal responsibility for managing and coordinating social, ethical and environmental issues rests with the Director of Personnel. More detailed information on the Partnership’s CSR policies and procedures is set out in the Business Review, and copies of its published CSR reports can be found on the Partnership website,
www.johnlewispartnership.co.uk.
Social and community involvement and political donations
The Partnership donated £5,745,000 (2012: £4,494,000) for charitable purposes during the year, comprising £5,272,000 (2012: £4,049,000) for welfare causes and £473,000 (2012: £445,000) for music and the arts, learning and the environment. In addition, the Partnership provided substantial financial and practical support to causes in the communities where it trades, as set out on page 21 of the Business Review. The Partnership made no political donations.
Supplier payment policy
The Partnership’s policy on the payment of its suppliers is to agree terms of payment in advance and, provided a supplier fulfils the agreement, to pay promptly in accordance with those terms. The Partnership’s trade creditors at 26 January 2013 were equivalent to 34 days of average purchases (2012: 27 days).
Groceries (Supply Chain Practices) Market Investigation Order 2009 (‘the Order’) and the Groceries Supply Code of Practice (‘GSCoP’)
Waitrose continues to comply with the Order and GSCoP. Waitrose’s Code Compliance Officer continues to ensure that its comprehensive Partner training, including annual refresher programmes and new starter training, together with its ongoing monitoring of supplier contracts ensures compliance.
As part of Waitrose’s ongoing compliance with the Order and GSCoP, Waitrose is required to submit a report detailing its compliance to the Company’s Audit and Risk Committee for approval and to the Office of Fair Trading.
The Audit and Risk Committee, which met on 16 April 2013, approved the Code Compliance Officer’s report on Waitrose’s compliance between 29 January 2012 and 26 January 2013. The Audit and Risk Committee was pleased to note that Waitrose has not been the subject of any supplier or supply chain disputes under the Order or GSCoP. In concluding that Waitrose was fully compliant with the Order and with GSCoP, the Audit and Risk Committee noted that Waitrose continues to invest significant resources in training, processes and documentation ensuring that its compliance programme would be consistent both with the requirements of the Order and GSCoP and reflect the Partnership’s commitment to its overarching principle of fairness that has always governed its relationships with suppliers.
Capital structure and purchase of shares
At 26 January 2013, the Company had in issue 3,696,995 5% Cumulative Preference stock, 500,000 7.5% Cumulative Preference stock, 612,000 Deferred Ordinary Shares and 84,750,000 SIP Shares. Under the Constitution, the 612,000 Deferred Ordinary Shares in John Lewis Partnership plc are held in trust for the benefit of employees of John Lewis plc and certain other companies within the Partnership.
There are no voting rights attached to the Cumulative Preference stocks unless the dividend is six months in arrears or unless a resolution is proposed which directly affects the interest of these shares as a class.
At the Annual General Meeting held on 31 May 2012, the Company was authorised to make market purchases of up to £3,696,995 in
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