Our Stakeholders
Our stakeholders help to shape our strategy and are critical to our success. We adopt a tailored approach in how we engage to ensure we manage expectations and promote trust and transparency across all our activities with a view to promoting mutually beneficial relationships.
Understanding our stakeholders enables the Board in performing its duty under s172 of the Companies Act 2006, to consider and discuss each stakeholder group’s interests and concerns and the potential impact of any Board decision on stakeholder groups. Stakeholder interests are considered by the Board through a combination of the following; Executive Directors’ reports, EHS reports, employee engagement survey results, and customer and supplier feedback.
As confirmed in the Corporate Governance Report, the Board has appointed Dr Tim Miller as the Designated Non-Executive Director for Employee Engagement and a global programme has commenced which will be rolled out across the business. Dr Miller will provide feedback to the Board following employee engagement forum meetings.
Investor feedback is shared with the Board at least twice a year and includes analyst reports and updates from our corporate PR adviser. Environmental and social factors are considered prior to and when executing strategy.
Summarised opposite is a description of how and why we engage with our main stakeholders together with their key interests.
Shareholders
We create value for shareholders by delivering sustainable growth. We engage regularly with shareholders through a planned programme of investor relation activities to ensure that our strategy and market trends are clearly understood. Shareholder feedback along with details of movements in our shareholder base are regularly reported to and discussed by the Board and forms part of its decision-making. In certain circumstances it is necessary for the Board to engage with shareholders on specific issues and an example of this can be found on page 67.
Why we engage?
- We want to ensure that our strategy and market trends are clearly understood
- To explain how we aim to deliver sustainable growth and create value
How we engage?
- Corporate website investor relations section
- AGM, Annual Report, trading updates and result presentations
- Press releases
- Analyst briefings
- Investor roadshows with current and prospective shareholders
- Site visits
- Meetings/consultation with shareholders on relevant matters
Stakeholder areas of interest
- Governance and transparency of Company vision and our strategy for growth
- Dividend policy and shareholder return
Customers
As a global Healthcare and Industrial group we innovate, design and manufacture solutions for customers worldwide. We engage with our customers strengthening our understanding of their needs and the core markets we serve. We use our wealth of expertise and knowledge to support their requirements today and tomorrow. Updates and feedback from customers are regularly reported to the Board in respect of each BU. This provides the Board with specific and general market intelligence, together with any potential impact or opportunities for the business. Examples of engagement with customers can be found on pages 26 and 29.
Why we engage
- To understand and exceed customer expectations – delivering focused solutions that can meet the diverse and changing requirements of our global base
- To drive continuous improvement in customer service, by responding to feedback and changes in the wider industrial and healthcare markets we serve
How we engage
- Regular one-to-one interactions and meetings
- Industry exhibitions, customer site tours and presentations
- Business unit websites
- LinkedIn communications
- Digital marketing campaigns
Stakeholder areas of interest
- Customer service/quality standards and compliance
- Continuous improvement in customer experience
- Research and development opportunities
Employees
Creating value for our customers relies on the quality of the services and products that we provide, and the skills and knowledge of our employees. To deliver our strategy we encourage employees to strive to exceed expectations and to challenge the status quo using the entrepreneurial mindset that is central to The Scapa Way. We appreciate the value of diversity and recognise the resilience, focus and innovation that our employees all over the world demonstrate on a daily basis.
Feedback from the employee engagement survey was presented to the Board, which assisted in its understanding and ability to ensure the alignment of culture and strategy. As part of the actions determined, the CEO Town Hall programme was commenced, further details of which are referred to on page 42. In addition the Board determined its mechanism of employee engagement and this was formalised by the appointment of a designated NED at the start of FY21.
Why we engage
- To ensure alignment of our culture and strategy
- To create a diverse and inclusive workplace where every employee can demonstrate entrepreneurship and reach their full potential
- To ensure we deliver and make the right business decisions, which in turn means we retain and develop the best talent
How we engage
- Global Employee Engagement Survey
- Leadership communication and events
- Site communications, town-halls, briefings, news bulletins
- CEO Awards recognition programme
- Living the Guiding Principles Awards scheme
- Training, development and wellbeing initiatives
- Employee performance reviews
- Scapa Code of Conduct training connecting The Scapa Way and our values to individual roles
Stakeholder areas of interest
- Reward and recognition
- Internal communication
- Employee wellbeing
- Diversity and inclusion
- Personal development and sense of belonging
- Transparency of information
- Reputation management
Communities
With a global footprint we want to create value in the local communities in which we operate, and continuously find new ways to support them. Information on environmental issues is considered by the Board and, in particular, assists when considering M&A. Examples of a number of programmes demonstrating the application of our culture and values together with engagement in the communities can be found on pages 44 and 45.
Why we engage
- We are committed to building positive relationships in the communities we operate in across our global locations
How we engage
- We support a range of local initiatives that provide employees with opportunities to give back to their local communities
- Through our charitable donations and sponsorship framework we give responsibly, aligned to our Ten Guiding Principles
- Community outreach programmes
Stakeholder areas of interest
- Sustainability and diversity
- Corporate social responsibility
Suppliers
Our global network of innovative, reliable and flexible suppliers is critical to ensuring we can meet the needs of our customers. We work with our suppliers to balance economical requirements with environmental, social and ethical considerations. Information relating to the Group’s supply chain is used by the Board to ensure that, in addition to business needs, social and ethical requirements are also being met.
Why we engage
- To meet the needs of our customers, ensuring and maintaining high quality materials and resources
- To ensure high supplier standards both ethical and otherwise
- To ensure compliance with our Code of Conduct and our supply chain best practices
How we engage
- Regular communication
- Regular evaluation of quality, service and performance using ‘SPIRE’ (Supplier Performance Improvement and Requirements Evaluation) procedures and best practice methods
- Evaluating performance against Scapa’s corporate social responsibility expectations
- Formal tenders, trade forums and innovation workshops
- Supply chain risk mapping, supplier management tools and regular audits
Stakeholder areas of interest
- Demand and quality criteria
- Sustainability
- Satisfaction/reputation
- Corporate social responsibility expectations
Statement by the Directors in relation to their statutory duty in accordance with S172(1) of the Companies Act 2006 (‘the Act’)
The Directors and the Board as a whole consider that they have acted in a way that would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172(1) (a) to (f) of the Act) in the decisions taken during the year ended 31 March 2020.
The Directors fulfil their duty by ensuring that there is a robust governance structure and process running through all aspects of the Group’s operations. The Group’s strategy is determined by the Board following careful consideration of materials and presentations from the Group Executive Team. This encompasses the impact on each of our main stakeholders and ensures alignment to the Group’s culture which is defined in The Scapa Way and our Ten Guiding Principles. The Board undertakes site visits and receives regular updates on the markets in which the business operates. The Board’s annual programme ensures that it regularly meets members of the Leadership Team to assess progress on strategy and specific projects. Members of the Board also attend the annual Leadership Conference to further engage with management. The Group engages with its key stakeholders in a variety of ways, explained in more detail in the Strategic Report (pages 18 and 19 of the Group’s Annual Report and Accounts 2020). The Group’s focus on sustainability and EHS issues is particularly relevant to our stakeholders and these are summarised in detail on pages 42 to 48 of the Annual Report. As referred to on page 18 of that report, stakeholders’ interests are considered by the Board through a combination of Executive and management reports and presentations with strategic progress measured against agreed KPIs.
