As set out in section 172 of the Companies Act 2006 (the ‘Act’) the directors must act in good faith to promote the success of the company for the benefit of its members as a whole and, in doing so, have regard to the likely consequences of any decision in the long term, the interests of the company’s employees, the need to foster the company’s business relationships with suppliers, customers and others, the impact of the company’s operations on the community and the environment, the desirability of the company maintaining a reputation for high standards of business conduct, and the need to act fairly between members of the company.
As a wholly owned subsidiary, the company’s directors are subject to Group Policies set by Meggitt PLC which clearly set out the expectation to act ethically and conduct business fairly and impartially. The Group Corporate Responsibility and Sustainability Policy in particular requires business to be conducted in a manner that achieves sustainable growth by balancing the interests of all stakeholders. This Policy prompts consideration of the matters set out in section 172 of the Act and by complying with this policy the directors ensure that the company is ran for the benefit of its members and the Group as a whole.
The company benefits from Group activities to consult and engage with employees. As part of their Group roles, Mr Wood, Mrs Burdett and Ms Thomas host town halls and provide employees with regular updates via the intranet on the Group’s financial performance, strategy, culture and other matters of concern. They have also undertaken a number of direct engagement activities with the company’s employees including site visits, lunches and attendance at conferences.
The results of the Group employee engagement survey are reviewed by the Meggitt PLC Board, including Mr Wood, Mrs Burdett and Ms Thomas to ensure that the views of Group employees inform Group strategy and Group Policies, thereby influencing decisions taken at all levels of the organisation, such as the transition of our sites in Coventry and Birmingham to the new site at Ansty Park in the West Midlands. Mr Wood, Mrs Burdett and Ms Thomas have responded to questions in relation to the transition both via a dedicated intranet portal and at live events which has had a significant effect on the planned way of working at the new site.
Employees are also encouraged to participate in the Group’s success through share ownership via the Share Incentive Plan and Sharesave plan.
Similarly, the company benefits from stakeholder engagement activities at Group level, details of which can be found on pages 60 to 62 of the 2019 Meggitt PLC Annual Report and Accounts. These activities have also helped shape the design of Ansty Park including the installation of a photovoltaic roof, which will generate power equivalent to 20% of the facility’s requirements, and installing electric car charging points in line with our stakeholders’ expectations.
Approved by the Board of Directors on 18 December 2020.