Aviva 2002 Annual Report Download - page 46

Employees are encouraged to have their say on how they view
the Company and their employment through confidential
staff opinion surveys. Results are fed back to staff and, where
appropriate, action plans are put in place to address key issues.
Through their participation, staff can help to shape future
employment developments. In addition, regular discussions
take place with the staff representative bodies.
The Company encourages and promotes employee development.
Support includes the building of relevant competencies,
encouraging staff to gain appropriate professional qualifications
and assistance with wider personal development.
The Group’s operations in the United Kingdom have established
employee career and recognition frameworks, which draw
together the formal competencies, target settings and review
systems and links them to appropriate rewards and benefits.
At the 2001 Annual General Meeting, shareholders approved the
establishment of an All Employee Share Ownership Plan as a way
for employees to participate further in the Group’s success through
share ownership. The Group operates two elements of the plan.
The partnership element allows eligible employees to purchase
Aviva shares at the prevailing market price from their pre-tax
income. The second element enables staff to receive free shares,
at the Board’s discretion, based broadly on the performance of the
Company’s operations in the UK. The Group also operates a
savings related share option scheme, which provides employees
with an opportunity to save over a fixed period and acquire share
options at a discount to the prevailing market price.
Corporate Social Responsibility (CSR)
Aviva defines CSR as embracing corporate performance in
environmental management, community, employees, human
rights, health and safety, suppliers, customers and standards of
business conduct.
In light of the guidelines of the Association of British Insurers,
the governance of Aviva’s CSR programme is subject to a fixed
schedule. The Board reviews progress and plans on an annual
basis, whilst the Executive Committee regularly reviews progress
throughout the year. High level progress is reviewed internally by a
CSR Steering Group which meets four times each year and which
comprises senior executives from principal businesses.
Detailed external review is undertaken each year with participants
drawn from various parts of the business together with
representatives from non-governmental organisations. This is the
most important CSR policy review group for Aviva. CSR risks and
opportunities are assessed as part of the review process. Aviva’s
CSR programme is externally assured every two years.
Aviva’s CSR report contains full details of progress achieved within
the CSR programme during the year. A copy of the printed
summary CSR report is available from the Group Company
Secretary or the full report may be viewed on www.aviva.com/csr
Employee practice
Aviva Group companies are committed to providing equal
opportunities to all employees, irrespective of their sex, sexual
orientation, marital status, creed, colour, race, ethnic origin or
disability. The commitment extends to recruitment and selection,
training, career development, flexible working arrangements,
promotion and performance appraisal. In the event of members of
staff becoming disabled, every effort is made to ensure that their
employment with the Group continues and to provide specialised
training where this is appropriate.
Health and Safety
The health and safety of staff is a priority and is reviewed at regular
intervals. Each business unit has an appointed health and safety
representative, whose role is to bring to the attention of senior
management any areas of concern that should be addressed
within the health and safety programme.
Information on health and safety matters is communicated to staff
through the normal communication channels. Under the Group’s
Health and Safety Policy, the Group Chief Executive is accountable
for health and safety.
Standards of Business Conduct
The Group operates a Standards of Business Conduct Policy which
provides guidance for every employee, Group-wide, to act with
integrity in all business relationships.
Charitable donations
Aviva has continued to support community initiatives and
charitable causes worldwide, and the total Group commitment
during the year was £5.9 million.
In 2002, the Group’s community investment in the United
Kingdom, as measured using the Business in the Community’s
benchmarking template, totalled £4.9 million of which £2.3 million
(2001: £1.3 million) was direct donations to charitable
organisations.
Political donations
No political donations were made in the United Kingdom during
the year (2001: £nil). It is the Company’s policy not to make
donations to political organisations or for political causes, and it
has no intention of changing this policy.
At the 2002 Annual General Meeting, shareholders passed a
resolution authorising the Board to make expenditure, up to an
aggregate limit of £100,000, on activities which fall under the
Political Parties, Elections and Referendums Act (PPER). This piece
of legislation introduced a very broad definition of EU political
expenditure in the European Union, such that some of the activities
undertaken throughout the Group’s businesses in the EU could
now fall within that definition.
There is a requirement for companies to seek shareholders’
approval for expenditure falling under the PPER and therefore,
at the forthcoming Annual General Meeting, shareholders will be
asked to renew the authority granted at the 2002 Annual General
Meeting to permit political expenditure, as defined by the PPER,
up to £100,000 so as to avoid inadvertent infringements of that
legislation. Further clarification on this issue can be found in the
notice of meeting for the Annual General Meeting which
accompanies this report.
Creditor payment policy and practice
It is the Group’s policy to pay creditors when they fall due for
payment. Terms of payment are agreed with suppliers when
negotiating each transaction and the policy is to abide by those
terms, provided that the suppliers also comply with all relevant
terms and conditions.
The Company has no trade creditors. In respect of Group activities
in the United Kingdom, the amounts due to trade creditors at
31 December 2002 represented approximately 29 days of average
daily purchases through the year (2001: 27 days).
Auditor
In accordance with Section 384 of the Companies Act 1985, a
resolution is to be proposed at the forthcoming Annual General
Meeting for the reappointment of Ernst & Young LLP as auditor of
the Company.
By order of the Board.
Richard Whitaker
Group Company Secretary
25 February 2003
Registered Office: St. Helen’s
1 Undershaft, London EC3P 3DQ
Registered in England No. 2468686
Directors’ report continued
32 Aviva plc
Annual report + accounts 2002