BAE-annual-report-2014

Strategic Report
RESPONSIBLE
BUSINESS
CONTINUED
The metric used to measure workplace
injuries is the Recordable Accident Rate
which, along with the number of major
injuries, is used to determine an element
of executive bonus. During 2014, the
Recordable Accident Rate 1 decreased by
11%, consistent with the improvement
target set. This progress represents a
seventh consecutive year of improvement.
The number of major injuries 1 was reduced
by 32% to 44 (see page 20).
We recognise that a healthy workforce is
a more engaged and productive one and,
during 2014, we continued to promote an
enterprise-wide campaign on employee
wellbeing.
Key relationships
Our employees are critical to the delivery
of our strategy, but it is also how we work
responsibly with others that supports
our success.
We work with suppliers who embrace
standards of ethical behaviour consistent
with our own.
We require our suppliers to comply with
local legislation. We expect and encourage
all our suppliers to embrace ethical values
of a comparable standard to our own. Our
standards include issues such as ethical
conduct, health and safety, environment
and human rights. Compliance to required
standards is evaluated during the supplier
selection process and, for existing suppliers,
as part of ongoing quality and approvals
assurance.
Advisers can only work for us after they have
been approved via our due diligence process
and authorised by an external panel.
We continue to work with peers across
the defence industry to improve ethical
standards. During 2014, we participated in
the International Forum on Business Ethical
Conduct’s industry working group on
collective action.
We are committed to strengthening
relationships and investing in the
communities in which we operate. This is
done via local recruitment and employment,
contracting with local suppliers where
possible, the taxes we pay and by supporting
local charities and not-for-profit organisations.
Globally, we and our employees, through
the Community Investment programme,
contributed more than £11m 1 during 2014
to local, national and international charities
and not-for-profit organisations.
DEVELOPING OUR PEOPLE
EXTERNAL RECOGNITION FOR SAFETY PERFORMANCE
ENVIRONMENTAL AWARDS FOR US SHIPYARD
We have global leadership programmes to
deliver executive development for high-potential
individuals looking to accelerate their career
and leadership capability. The diversity, career
progression and retention of participants is
monitored on a regular basis to measure the
effectiveness of these development programmes.
In Australia, our Accelerated Development
Programme is open to those who are identified
as high-potential individuals, and who have
the energy and focus to accelerate their
development. The programme is designed to
accelerate high-potential leaders through a
two-year on-the-job development experience.
Employees are required to participate in a range
of development activities, including: mentoring
by a management board or senior lead team
member; leading business projects that grow and
stretch them professionally; building a targeted
individual development plan that addresses
areas for improvement; access to career
development coaching; and the opportunity to
push their career with up to one role change
during the programme.
Radway Green, the Group’s centre of excellence
for the design, manufacture, proofing and supply
of small arms ammunition at the Munitions
business in the UK, has won a prestigious
Royal Society for the Prevention of Accidents
(RoSPA) Gold Medal for reducing injuries and
its commitment to continuous improvement
in accident and ill-health prevention at work.
The medal is awarded once a company has
received five consecutive Gold awards in RoSPA’s
annual Occupational Health and Safety Awards.
Other Munitions sites, Bishopton Environmental
Test Facility, Ridsdale Range and Washington, each
received an individual 2014 RoSPA Gold award.
In April, our San Diego shipyard received two
awards for its sustainability efforts.
The first award came from the Port of San Diego,
which honoured environmentally-conscious
port businesses that have shown exemplary
environmental achievements. During a 12-month
assessment period, the San Diego yard achieved
a reduction in energy, water and waste. The
shipyard currently uses oily water separators,
which process large quantities of industrial waste
water and remove the free-floating oil, grease
and raw petroleum hydrocarbons from waste
water, allowing for reduction of the amount of
hazardous waste disposed.
The second award came from the County of
San Diego on Earth Day. The sustainable
business award was given, in part, for the
shipyard’s efforts to manage waste with an 80%
diversion rate to landfills. Paper waste produced
in offices is 100% recycled. Metals and abrasive
blasting materials are recycled and diverted.
1. See summary of Deloitte assurance on page 47.
46
BAE Systems
Annual Report 2014