John Lewis Partnership plc annual report and accounts 2013

Partners (continued) 

We aim to provide exemplary leadership that empowers Partners to deliver first class customer service in each one of our John Lewis department stores and at home stores, Waitrose supermarkets and convenience stores, online and other retail channels. Our Partners are equipped to do so through their attitude, behaviour and skills, supported by training, learning and development.

Benefits

Our reward strategy aims to provide a Total Reward Package that offers competitive pay and distinctive market leading benefits, such as our non-contributory defined benefit final salary pension scheme for those Partners who stay with us for more than three years. For those in their first three years, a defined contribution scheme is available where we match Partner contributions up to 4.5% of pensionable pay.

A significant element of Partner reward is the Partnership Bonus. This is shared as an equal percentage of annual pay amongst all Partners In 2012/13, Partnership Bonus was 17% of pay which is equivalent to nearly 9 weeks pay at a total cost of £210.8m. This is a shared bonus for shared effort.

We also aim to provide opportunities for Partners to have a choice in benefits and leisure activities, recognising the growing diversity of the Partnership.

Corporate Social Responsibility (CSR)

Purpose and strategy Our founder, John Spedan Lewis, built the Partnership on the principles of being a responsible business. Through our principles and Constitution we demonstrate our regard for operating in a socially, economically and environmentally sustainable way, recognising the critical role this plays in ensuring we:

• Manage risk and demonstrate legal compliance;

•  Increase competitive advantage by capturing opportunities that build brand trust, customer loyalty and increase business value;

•  Enhance or protect the reputation of our business and brands;

• Attract and retain Partners;

• Meet customer and other stakeholder expectations; and

•  Drive cost savings and efficiencies.

We aim to manage and develop our business in a sustainable manner in the areas of:

• Our customers: We will bring sustainability to the heart of our customer communications to help to promote sustainable choices;

• Our products and suppliers: We will create sustainable supply chains through supplier partnerships based on honesty, fairness and respect and ensure that sustainability, as well as quality, characterises the products and services we sell;

• Our Partners: We will provide worthwhile and satisfying employment in a successful business, successfully harness Partners’ passion and energy to achieve engagement and participation across every aspect of our sustainability agenda, and create real opportunities for Partners to live sustainably;

• Our communities: We support sustainable communities where we do business; and

• Our environment: We will deliver excellence in environmental practice across our business.

As the UK’s largest example of worker co- ownership, all 84,700 of our employees are Partners and they play a crucial part in the Partnership’s continued success. Partners embody the Partnership’s principles of respect, integrity and courtesy – and increasingly they help our business find new and innovative ways to make our operations, products and services more sustainable.

Policy

Where there are legislative imperatives we seek to be compliant, and our policies are shaped by these legislative requirements. How we manage CSR is clearly set out in our CSR policy which is reviewed and approved by the Chairman’s Committee.

Governance and risk Effective governance and risk management are essential to ensuring we meet our stakeholders’ needs in the long term. Our CSR governance arrangements are key to driving our CSR programmes forward and to continuing to

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