1. Quakers and Business Conference 2018
The strange case of Carillion
Paul Moxey
Quakers and Business Conference 2018

2. http://www. transparency. org

3. 18/04/2019

5. Corporate reports including the financial statements...
Can almost always be relied upon by investors
Can mostly be relied upon by investors
Can often not be relied upon by investors
Generally not reliable enough for investors to use for investment decisions

6.  Aug 25, 2017
Carillion has been presented with the Queen’s Award for Enterprise in recognition of its contribution to sustainable development.
“Through detailed analysis of its relationships with employees, customers, suppliers and other external partners, Carillion was able to demonstrate a strong commercial case for sustainability, integrated with its core strategy, and a contribution to profitability through sustainable behaviours and actions.”

7. “Cash flow from operations represented 117 per cent of profit from operations.” “The Group continues to have substantial liquidity with some £1.5 billion of available funding…The vast majority of the Group’s £1.5 billion of funding matures in November 2020 and beyond.”

8. Strong order book and substantial frameworks and pipeline of contract opportunities
Leadership positions in good markets
Broad capability and trusted partner
A track record of performance
Integrated and sustainable business

10. Our business model

11. The Directors confirm that they have carried out a robust assessment of the principal risks facing the Group, including those that would threaten its business model, future performance, solvency or liquidity.
On the basis of both reasonably probable and more extreme downside scenarios, the Directors believe that they have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the three-year period of their assessment.

12. Board and Committee performance evaluation
At the December 2016 Board meeting, the Directors reviewed the results of the evaluation, which confirmed that the Board, each of its Committees and the Directors continue to be highly effective.
Fair, balanced and understandable
At its February 2017 meeting the Committee reviewed the Group’s Annual Report and Accounts and recommended them to the Board as
representing a fair, balanced and understandable assessment of the
Group’s position.

13. Performance and financial review continued
The Group is well positioned to continue funding the dividend, which continues to be well covered by cash generated by the business.
Furthermore, with around £1.5 billion of funding available to the Group, following the addition of £112 million of funding secured from the Schuldschein market in January 2017, we continue to be well positioned to support our strategy.

15. 29 September 2017 Financial results for the six months ended 30 June 2017
Strategic and operational review update
“The Group is compliant with its covenants at 30 June 2017 and is forecast to be in compliance with covenants as at 31 December 2017 and 30 June 2018”
“Taking account of the projected trading for the Group over the remainder of the year and the additional bank facility, the Board has a reasonable expectation that the Company and the Group will be able to operate within the level of its available facilities and cash for the foreseeable future”

16. Banks owed £900m Pension fund owed £2
Banks owed £900m Pension fund owed £2.6bn 43,000 employees, 19,000 in UK. Many more employed in supply chains £2 billion owed to 30,000 suppliers, sub-contractors and other short-term creditors

17. Going Green?
In 1993 Michael Platt, the Pensions Ombudsman, found that Philip Green Coloroll's managing director was guilty of a breach of trust and of maladministration of the pensions scheme.
Philip Green joined Carillion board in 2011 and became Chairman in 2014.

18. Avoid censure and claims
What about incentives?
Angels
Demons
Audit seniors
Audit juniors
Audit partners
Executives
Auditor firm
NEDs
Shareholders
Revenue
Avoid censure and claims
Dividend
Long term share price
Keep job
& bonus ?
A quiet life
Keep client
Profit
Do good job
Keep senior happy
Keep manager happy

19. (Processes, Systems and Results)
Individual v
Corporate Values and Behaviours
Interior
Exterior
Personal Values and Beliefs
Personal Behaviours
Corporate Values and Beliefs
Corporate Behaviours
(Processes, Systems and Results)
Individual
Corporate
based on a model by Ken Wilber and Richard Barrett

21. Seven Levels of Organisational Consciousness
Positive Focus / Excessive Focus
Financial Stability
Shareholder value, organisational growth,
employee health, safety. Control, corruption, greed
Employee Recognition
Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame
High Performance
Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency
Continuous Renewal and Learning
Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth
Building Internal Community
Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency
Strategic Alliances and Partnerships
Environmental awareness, community involvement, employee fulfilment, coaching/mentoring
Service To Humanity and the Planet
Social responsibility, future generations, long-term perspective, ethics, compassion, humility
Service
Making a Difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
The headings on the right hand side represent how the levels translate in an organisational context
Barratt Values Centre

22. From Principles to profit Paul Palmarozza and Chris Rees
A moral hierarchy 1
Work is a sacred activity performed for its own sake 2
Actions guided by faith in one’s spiritual/religious teaching. There is obedience to its commandments 3
One acts from a strong sense of duty – doing what should be done for honour’s sake 4
Decisions made on a utilitarian view, ie one is good because it pays to be good (enlightened self-interest) 5
One acts so as not to violate rights of others 6
One acts based on established code of practice or standard 7
Basis for morality is whether action is legal 8
Morality is based on my judgement, my personal view as to what is right or good
From Principles to profit Paul Palmarozza and Chris Rees