Tesco 2005 Annual Report Download - page 12

10 Tesco PLC
Directors’ report continued
Employees are encouraged to become involved in the financial
performance of the Group through a variety of schemes,
principally the Tesco employee profit-sharing scheme (Shares-
in-Success), the savings-related share option scheme (Save-As-
You-Earn) and the partnership share plan (Buy-As-You-Earn).
Political and charitable donations Cash donations to
charities amounted to £4,576,210 (2004 – £3,953,582).
Contributions to community projects including gifts in kind,
staff time and management costs, amounted to £21,762,931
(2004 – £17,191,988).
There were no political donations (2004 – nil). During the year
the Group made contributions of £40,929 (2004 – £44,713)
in the form of sponsorship for political events: Labour Party –
£9,250; Conservative Party – £5,132; Liberal Democrat Party –
£5,350; Plaid Cymru – £1,000; Fianna Fáil – £1,340; Fine Gael
– £1,667; Progressive Democrats – £2,190; Usdaw – £15,000.
Contributions were made to trade unions in the Czech and
Slovak Republics of £957 and £847, respectively.
Supplier payment policy Tesco PLC is a signatory to the CBI
Code of Prompt Payment. Copies of the Code may be obtained
from the CBI, Centre Point, 103 New Oxford Street, London
WC1A 1DU. Payment terms and conditions are agreed with
suppliers in advance.
Tesco PLC has no trade creditors in its balance sheet. The
Group pays its creditors on a pay on time basis which varies
according to the type of product and territory in which the
suppliers operate.
Going concern The Directors consider that the Group and the
company have adequate resources to remain in operation for
the foreseeable future and have therefore continued to adopt
the going concern basis in preparing the financial statements.
As with all business forecasts, the Directors’ statement cannot
guarantee that the going concern basis will remain appropriate
given the inherent uncertainty about future events.
Auditors A resolution to re-appoint PricewaterhouseCoopers
LLP as auditors of the company and Group will be proposed
at the Annual General Meeting.
Annual general meeting A separate circular accompanying
the Annual Review and Summary Financial Statement 2005
explains the special business to be considered at the Annual
General Meeting on 24 June 2005.
By Order of the Board
Ms Lucy Neville-Rolfe Company Secretary
11 April 2005
Tesco PLC
Registered Number: 445790
Company’s shareholders The company is not aware of any
ordinary shareholders with interests of 3% or more.
Directors and their interests The names and biographical
details of the present Directors are set out in the separately
published Annual Review and Summary Financial
Statement 2005.
Mrs K R Cook and Ms C McCall were appointed to the Board
in the last twelve months and, as required by the Articles
of Association, offer themselves for election. Mr R F Chase,
Sir Terry Leahy, Mr T J R Mason and Mr D T Potts retire from
the Board by rotation and, being eligible, offer themselves
for re-election.
The interests of Directors and their immediate families in
the shares of Tesco PLC, along with details of Directors’
share options, are contained in the Directors’ remuneration
report set out on pages 17 to 31.
At no time during the year did any of the Directors have
a material interest in any significant contract with the
company or any of its subsidiaries.
A third party indemnity provision as defined in Section 309B(1)
of the Companies Act 1985 is in force for the benefit of each
of the Directors and the Company Secretary (who is also a
Director of certain subsidiaries of the company) and remains
in force in favour of Ms V Morali and Mr G F Pimlott who are
retiring Non-executive Directors.
Employment policies The Group depends on the skills
and commitment of its employees in order to achieve its
objectives. Staff at every level are encouraged to make their
fullest possible contribution to Tesco success.
A key business priority is to deliver an ‘Every little helps’
shopping experience for customers. Ongoing training
programmes seek to ensure that employees understand the
Group’s customer service objectives and strive to achieve them.
The Group’s selection, training, development and promotion
policies ensure equal opportunities for all employees regardless
of factors such as gender, marital status, race, age, sexual
preference and orientation, colour, creed, ethnic origin,
religion or belief, or disability. All decisions are based on merit.
Internal communications are designed to ensure that
employees are well informed about the business of the
Group. These include a UK staff magazine called ‘one team’
and the equivalents in our overseas businesses, videos and
staff briefing sessions.
Staff opinions are frequently researched through surveys
and store visits. We work to deliver ‘Every little helps’ for all
our people across the Group.