1. Corporate Social Responsibility (CSR) Dr Martin Blake BSc MBA DBA Head of Social Responsibility, Royal Mail Group plc BCCH CSR Seminar 25 th October 2006

2. Royal Mail Group plc context One of the largest employers in the UK c.193,000 employees Deliver 84 million items to 27 million addresses every working day Parcelforce Worldwide and General Logistics Systems deliver 337 million parcels per year 35,000 vehicles travelling 1.8 million miles a day 160 million litres of diesel annually 14,300 Post Office  outlets Increasingly competitive market

3. Link between Sustainability and CSR Health & safety Diversity & inclusion Community investment Economic prosperity Royal Mail Group plc’s CSR activities Social wellbeing Environmental protection Sustainable development

4. Communities prefer companies that create jobs, incomes and contribute to the economic and social cohesion that builds the neighbourhoods where people want to live and work Customers prefer to buy from companies that share their values Employees prefer to work for companies that provide a healthy and safe environment and whose values align to theirs It is also simply the ‘right thing to do’. Why are we managing CSR?

5. CSR within Royal Mail The safety of our people and our customers The well-being (health) of our people The environment The communities we operate within The diversity of our workforce The security of our customer’s mail. Covers a wide range of issues including:

6. Carbon Management Programme (tactical focus) – c.80% of impacts Sustainability Strategy and Tactics Sustainability Strategy (100% of impacts) Other environmental projects – e.g. water & waste. c. 20% of impacts 8 6 7 5 4 3 9 1 2

7. Royal Mail Group Plc.’s Carbon Management Programme

8. Regulatory environment UK Government – support provided through CSR function in the Dept. Trade & Industry (www.csr.gov.uk)www.csr.gov.uk Establishment of CSR Academy (www.csracademy.org.uk)www.csracademy.org.uk Current UK position – predominantly voluntary rather than regulatory approach; supported by most UK corporates CSR driven by business case – cost savings, employee motivation and retention, brand value, risk management and because it is the right thing to do Government’s role to further incentivise the business case – as with tax breaks for payroll giving.

9. ‘Better Business Journey’ toolkit www.betterbusinessjourney.com Produced by the UK Small Business Consortium which includes the British Chambers of Commerce, Business in the Community, CSR Europe and the Institute of Directors. Focused on four key areas of 1) People 2) Premises 3) Promotion and 4) Purchasing.

10. Flexible working/ Work-life balance Responsible recruitment/ Equal opportunities Staff training, career development, motivation & retention Community involvement Healthy workplace Teamwork DID YOU KNOW? 3 in 5 people want to work for a company whose values are consistent with their own DID YOU KNOW? 79% of smaller businesses believe that they should be involved in encouraging a healthy work-life balance amongst their staff DID YOU KNOW? 40m working days are lost to ill health and injuries each year and staff absence costs business £11billion per annum THE PEOPLE JOURNEY People are the most important resource businesses have, so their satisfaction is recognized as a key component of business success. You can increase your company’s competitiveness by developing the competence of all your staff enabling staff to play an active role in the community employing a diverse workforce promoting the health and well-being of employees and contractors.

11. Internal environmental impacts External & neighbourhood environmental impacts Employee & business transport policies Recycling Disability access Energy usage/costsBecoming carbon neutral DID YOU KNOW? 86% of UK adults believe the environment is the most important issue for companies to focus on DID YOU KNOW? 10% reduction on energy bills can be achieved without any capital investment DID YOU KNOW? 80% of small businesses believe that they should be involved in waste reduction and recycling THE PREMISES JOURNEY It makes sound business sense to try and reduce the negative environmental impacts of your business. This involves reducing greenhouse gas emissions from energy use, transport and industrial processes using energy and raw material efficiently reusing/recycling products and waste where possible setting achievable targets to manage your environmental impact.

12. Responsible advertising Positive PR/publicity AwardsStandardsProduct & service innovation Accessing new markets DID YOU KNOW? 51% of the British public say they have chosen a product or service because of its responsible reputation DID YOU KNOW? 81% of UK websites are inaccessible for disabled users DID YOU KNOW? 62% of small businesses don’t use the internet to market their goods and services THE PROMOTION JOURNEY By communicating your responsible activities to a wider audience you will find that you inspire many others to do the same and your example could lead to much bigger impacts. make sure your staff know about what you do and can talk about it generate positive publicity through local, regional or national media tell your customers, suppliers, investors and other stakeholders what you are doing enter relevant award schemes.

13. Local sourcing Buying fairly traded products Paying on time Responsible procurement Supplier criteria DID YOU KNOW? 85% of businesses view late payment of suppliers as ‘unethical’ DID YOU KNOW? 43% of small businesses have been asked by larger customers about environmental practices DID YOU KNOW? 1 in 4 business failures are a direct result of interruption to cash flow THE PURCHASING JOURNEY Responsible purchasing means operating to the highest standard of business integrity. This includes supporting and encouraging existing suppliers to be responsible choosing responsible new suppliers, treating them fairly and with respect, paying them on time locally sourcing products or services where relevant.

14. Dr Martin Blake Head of Social Responsibility Royal Mail Group plc Unit 6 Ancells Court Rye Close FLEET GU51 2UY Tel: +44 (0) 1252 773011 Email: CSR@royalmail.comCSR@royalmail.com www.royalmailgroup.com For further information contact

15. ‘Passionate about progress’