Dave Forsey Chief Executive 19 July 2012 - Sports Direct International

Corporate Responsibility Report
Meeting stakeholder needs and expectations is very important in the success of
the Group. This includes: customers, employees, shareholders, suppliers and the
communities in which the Group operates.
A formal Corporate Responsibility policy was adopted and the Board is committed
to applying and developing this policy at every level of the business.
As with previous years, the Group continued to focus on five key areas of Corporate Responsibility:
Employees, Health and Safety, Customers, the Environment and the Community. The Group has
developed Key Performance Indicators (KPIs) in respect of these areas, which are further discussed
in this report and in the Chief Executive’s Report on Page 19. These KPIs are based solely on our
UK operations.
This report examines each key area in turn, reviewing the current situation, the facts, figures and our
successes to date.
Employees
As the business continues to grow it is the skill and enthusiasm
of our c.19,000 employees that are the key to its success.
In the UK, 94.0% of our employees work in our stores and in store
management. 6.7% of the UK workforce work at our Shirebrook
campus, of which 4.4% work in our National Distribution Centre,
and 2.3% in the Group Head Office, Finance, Buying, Brands, Retail
and IT departments. Of our UK Workforce, 55% are male and 45%
female. Employee retention is one of our key KPIs. This Year 17.5%
of our UK employees left the business; the vast majority of them
were employed on a part-time.
Employee retention is extremely important to retain expertise and as
a measure of employee satisfaction. The Board receives a monthly
report on the turnover of employees.
Employees are rewarded with fair salaries together with the
opportunity to earn additional pay in the form of bonuses. Rates of
pay are monitored against national statistics on an annual basis.
We believe that performance-based rewards are beneficial to
the success of the business and encourage greater employee
involvement. This policy starts with the Executive Directors and
flows down to all levels of the business.
Following on from the success of the 2009 Bonus Share Scheme,
the Group has launched the 2011 Bonus Share Scheme.
If the Group attains the EBITDA targets (detailed in the table below)
and employees’ performance is deemed to be satisfactory, eligible
employees will receive Sports Direct shares.
Criteria to satisfy 2011 bonus scheme:
• Underlying EBITDA of £215m in 2012
• Underlying EBITDA of £250m in 2013
• Underlying EBITDA of £260m in 2014
• Underlying EBITDA of £300m in 2015
• Individual satisfactory employment performance
A pot of 30 million shares will be distributed between eligible
employees. Shares will vest as to 25% of an employee’s allocation
in 2015 and 75% in 2017. There will be the opportunity for
employees to receive a further award under the Scheme which will
vest in 2019.
There is a Staff Forum established at Head Office in Shirebrook.
The Forum consists of elected representatives from all departments
and management representatives. The Forum takes place on a
monthly basis and covers topics ranging from pay, holidays, hours,
health and safety, working conditions, equipment needs and
developments in and the performance of the business.
The Forum encourages open discussion and a Board member will
attend at least once a year. Minutes of the Forum’s meetings are
posted on notice boards and representatives are encouraged to
seek and reflect the views of their constituents.
The Group recognises the right of employees to membership of
a trade union and has entered into an agreement with the trade
union Unite in respect of collective bargaining of pay, hours of
work and holidays of certain groups of employees in the National
Distribution Centre.
The Group is committed to the equal treatment of its employees
and has formal policies in place that are reviewed on a regular
basis. The Equal Opportunity and Diversity policies ensure that
employees are treated as individuals, fairly and with respect
providing fair and equal opportunities to employees regardless
of age, gender, ethnicity, social background, religion, disability
or sexuality.
Every effort is made to provide disabled people with equal
opportunities for work, training and promotion.
Applications for employment by disabled persons are given full
and fair consideration for all vacancies in accordance with their
particular aptitudes. Where an existing employee becomes disabled
the business makes every effort to provide continued employment
in the same or similar job or by offering retraining in order that the
employee’s employment within the Group may continue.
There is a tailored employee handbook for each department.
Roll-out began in 2011 and this will be completed in 2013.
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