Stakeholder engagement
Engaging with the different groups that influence or are affected by our business is fundamental to our values. Understanding our stakeholders' needs and concerns also helps identify the relevant CR issues and enables us to plan our CR programme accordingly.
We have a wide range of stakeholders with many different needs and expectations, and these sometimes conflict. We can't be all things to all people, but we can assure all stakeholders that we have listened to them and taken their views into account when balancing different considerations (see table in below).
The table below shows the main issues raised by different groups and the process through which we engage with them. These issues are evaluated
to rate their relevance to Tesco, our shareholders and our customers.
| Stakeholder group | Interests and expectations of Tesco | Interaction with Tesco in 2007 |
|---|---|---|
| Customers | Good shopping trip. Good neighbour. Operate fairly and honestly. Provide a choice of products, including sustainable, healthy and affordable options. |
Store operations. Marketing campaigns. New product development. Clubcard. Price promotions. Clubs and initiatives. Customer Question Time. |
| Employees | Fair terms and conditions. Interesting job. Manager who helps me. To be treated with respect. Opportunities to get on. Safe and healthy workplace. |
Daily work. Staff Question Time. Staff forums. Annual Viewpoint survey. Regular Pulse surveys. |
| Communities | Good neighbour. More employment. Community regeneration. Support for local causes and initiatives. |
Community initiatives. Public consultations and exhibitions. Leaflets. Focus groups. Consumer panels. Work with community groups including charities. |
| Suppliers | To be treated fairly and honestly. Long-term relationships, opportunities for growth and shared customer insight. |
Direct commercial relationships with suppliers, processors and manufacturers. Viewpoint survey. Meetings, training sessions and conferences. Industry events. |
| Investors | Effective communication of strategy and performance. Good corporate governance and risk/opportunity management. Competitive returns and dividends. |
Annual Report and general meeting. Investor updates. Investor relations website. Meetings with investor relations team. |
| Governments and regulators |
Legal compliance. Stable, family-friendly job opportunities. Good quality training. Timely payment of all taxes. |
Tax systems. Planning processes. Consultation on new regulation. Public policy engagement. |
| Non-governmental organisations | Leadership approach to CR issues. Clear policies and principles. Credible, transparent communication. |
Meetings and presentations. Partnerships and membership of organisations. Campaigns. |
Customers
Our Customer Question Time (CQT) meetings help us to identify and respond to changing customer needs. They are recognised as a key factor in our success in recent years. These meetings, held in stores around the world, enable staff and senior managers to hear customers' views on everything from how we are serving them to our role in the community. CQTs are used to drive our Customer and Community Plans. These Plans are the management tools we use to deliver continued improvement in customer satisfaction. We also held CQTs focusing on particular issues, including community and the environment.
Staff
To do a good job for customers, people need to feel good about the place where they work. It is important that our staff understand the principles that guide the way we do business and feel proud to work for Tesco. As such, it is vital that we listen to and engage with our people as often and as well as we do with our customers. Our staff give direct feedback through Staff Question Time sessions. They are also invited to give anonymous feedback through our annual Viewpoint survey. In 2007, over 90%, of our staff completed the survey. The vast majority of staff enjoyed working for Tesco, thought benefits had improved, and thought they had an opportunity to get on. Our 'Pulse' survey also tracks staff views on how they feel about working for Tesco.
Communities
Suppliers
Investors
We maintain a good dialogue with shareholders by organising meetings and presentations and responding to a wide range of enquiries. We want to understand shareholder views on a range of issues from strategy to corporate governance and we recognise the importance of communicating any significant Company developments appropriately. This shareholder communication is mainly coordinated by our Investor Relations team. The Board is kept informed of the views of shareholders, either through direct meetings or through updates from the Investor Relations team.
As part of our engagement programme, we meet with representatives of the Socially Responsible Investment (SRI) community and with mainstream investors. These meetings give us the opportunity to provide an update on our corporate responsibility strategy and performance, discuss key opportunities and challenges and seek feedback to improve our future programme. Sessions during 2007 have provided constructive feedback, with Tesco seen to have taken significant steps in CR in the past 12 months, particularly in the areas on which the Community Plan has focused, such as climate change. Investors would like to hear more detail on our international approach - and eventually see a global CR Review, which we have tried to deliver with this Review, as well as more transparency on our reporting of issues, particularly ethical trade.
Government and regulators
We are also keen to have an open and honest relationship with political stakeholders, engaging with governments, MPs and officials on a range of policy issues that affect our business and the communities in which we operate. We do not make donations to political parties, nor do we employ political consultants to lobby governments on our behalf. Our Government and Corporate Responsibility teams work closely together to ensure that our responses to government consultations are aligned to our CR policies and practices. We do not ask government departments to withhold our submissions from public disclosure.
Public policy engagement
Business can play an important role in the development of public policy. By sharing its experience and expertise business can help shape policy that is effective and fit for purpose.
We are committed to being open and transparent in our engagement with governments and to focusing on those issues of most importance to our business, our staff and our customers.
In 2007 key issues included the environment, health and nutrition, planning and regeneration, productivity and skills and the environment. For example, we have called for a new framework to help deliver the transition to a low carbon economy and we made clear our commitment to taking an active role in government-led discussions around the introduction of legislation to ensure responsible pricing on alcohol and alcohol promotions.
NGOs
Engaging with non-governmental organisations (NGOs) can help us to better understand current social issues and concerns. Our partnerships and dialogues highlight new trends and emerging issues, give greater insight on environmental, social and ethical issues, and help us manage our impacts. We regularly meet with NGOs, respond to their questions and contribute to surveys and research.
We have met over 60 NGOs throughout the year through seminars and meetings. Engagement covered the full range of key issues for the business, including climate change, environmental issues such as biofuels, ethical trading and animal welfare. In April 2007, we held a nationwide Community Conference in partnership with the British Red Cross and the Work Foundation. This brought together voluntary groups, charities, businesses and government to explore the role of business in local communities.
We always respond to requests for information from NGOs as fully and as promptly as we can. In 2007 we contributed to research, surveys and information requests on a wide variety of issues, including our general CR performance, climate change, seafood sourcing, animal welfare and health and nutrition. We were awarded the highest rating (platinum) by Business in the Community in their annual Corporate Responsibility survey.
We always ask NGOs to share their findings with us to help us understand issues of concern, investigate if necessary and improve our performance wherever possible.