More of what matters Corporate responsibility review 2012/13 - RSPO
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Corporate responsibility review 2012/13 Wm Morrison Supermarkets PLC More of what matters
Overview Corporate responsibility review 2012/13
Brief introduction to Morrisons
Morrisons history
Food is at the heart of 1899 Stall opens in Bradford 2006 Safeway conversion
what we do and we are 1958
Market
First town centre shop 2007
programme complete
Morrisons moves to
passionate about it. 1961
opens in Bradford
First supermarket 2008
a new Head Office
Smaller format store
Perhaps not surprising
opens in Bradford is launched in Scotland
1967 Morrisons becomes 2009 Morrisons opens Farm
a public company at Dumfries House
for a food retailer, 1976 Morrisons opens
produce depot,
2011 First convenience
store launched
but what is unusual 1977
Cutler Heights
Takeover of Whelan
Discount stores
2011
2011
Morrisons acquires
FlowerWorld
Morrisons acquires
is the way our business 1980 Morrisons opens
Farmers Boy
online retailer
Kiddicare
is structured. 1988 Morrisons opens
distribution centre
2011 Morrisons opens
Bridgwater distribution
at Wakefield centre
1998 Morrisons opens 2012 Morrisons opens
distribution centre, Grimsby seafood
Our 2012/13 Year Gadbrook Park manufacturing site
1999 100th store opens 2012 Morrisons acquires
£18.1bn
in centenary year meat manufacturing
Turnover 2000 First store opens site, Winsford
in Wales 2012 Morrisons launches
2001 Morrisons joins online with Morrisons
Cellar
£879m
FTSE 100
Profit before tax 2004 First store opens 2013 Morrisons joins forces
in Scotland with online retailer
2004 Safeway becomes part Lakeland
of the Morrisons family 2013 Morrisons acquires
Corporation
tax paid £243m 2005 Morrisons acquires
Rathbone’s bakery
operation
Blockbuster and
HMV stores to
expand convenience
2005 Morrisons acquires (post 2012/13 Year)
Like-for-like sales
53 week vs 53 week basis
(2.1%) and expands abattoir
in Turriff
Stores
498 Where possible we source locally, buy direct
and manufacture at our own sites. We distribute
to stores through our own network. This gives
Colleagues
129,000 us close control over provenance, freshness
and reduces waste, which means we can offer
fantastic food at affordable prices.
Customers
each week 11m Over the 2012/13 financial year, we opened
17 new stores, nine convenience stores, invested
See our Facebook in two new manufacturing sites and launched
Visit – facebook.com/Morrisons
online. We remain the UK’s fourth largest
See our Twitter
Visit – twitter.com/Morrisons
supermarket by retail sales as well as the second
largest fresh food manufacturer. We pride ourselves
Cover image
Alison Cowan, fishmonger, Retford. Winner of our 2012 internal craft skills on the quality of the fresh food we prepare in store
competition ‘Mastercraft’. Morrisons has over 1,000 academy trained
fishmongers and more craft trained people than any other UK food retailer. and serve over 11 million customers each week.
Overview
Friendly people
Making great food
What’s in our Review Affordable
For everyone
Governance
Scope of the Review Contents
Introduction to Morrisons
1 What’s in our Review
2 Chief Executive’s statement
3 Responsible retailing
4 Our business model
6 Highlights in 2012/13
Friendly people
8 Introduction
10 Recruitment
10 Developing talent
14 Sharing our skills
14 Employer of choice
Steven Butts 16 Retirement Saver
Corporate Responsibility 16 Equality and diversity policy
16 Ethics and conduct
This is Morrisons seventh Corporate Responsibility Review. 17 Health and safety
It reports on the progress from our financial year (53 weeks
ended 3 February 2013) unless otherwise stated. Making great food
Our corporate responsibility programme ensures we operate 18 Introduction
in a way that is right for our customers, colleagues and suppliers, 18 The Morrisons farming programme
whilst making a positive contribution to society and taking good 20 2012 British farm sourcing
care of the environment. 23 Developing and promoting sustainable food supply
24 Environmental sustainability
This document is divided into four sections: ‘friendly people’, 25 Food supply sustainability and security
‘making great food’, ‘affordable’, ‘for everyone’. Each section details 26 Buying the right ingredients
our progress on key material issues for the business including 31 End-to-end product quality and supplier assurance
updates on commitments, KPIs and future plans. It doesn’t cover all 33 Healthy choices
the work we do, but gives an overview of our key activity.
Affordable
If you would like to comment on our corporate responsibility 36 Introduction
programme, the Review itself or any of the issues we highlight 36 M savers
please drop us a line at cr@morrisonsplc.co.uk 39 Avoiding food waste
43 Packaging
This Review should be read in conjunction with our annual report 43 Customer recycling
and financial statements 2012/13 which can also be found online. 44 Carrier bags
45 Reducing operational carbon emissions
See our Review 50 Logistics
Visit – morrisons.co.uk/cr
For everyone
See our Annual report and financial statements
Visit – morrisons.co.uk/corporate/ar2013 52 Introduction
52 More of what matters locally
55 Let’s Grow
59 Save the Children
Governance
62 About our corporate responsibility programme
63 Board of Directors, Management Board and Corporate
Compliance and Responsibility Committee
64 Stakeholder engagement
66 Independent Assurance Statement
68 Commitments and associated KPIs
1
Overview Corporate responsibility review 2012/13
Chief Executive’s statement
Friendly people making great
food affordable for everyone
Dalton Philips
Chief Executive
In one of the toughest trading years In our stores, we’re bringing our passion for ‘great food’ to life.
Across our estate, we’re highlighting our fresh credentials with
in a generation, we made good the roll out of our Fresh Formats concept. We’ve expanded and
enhanced our fresh range and opened up more of our counters to
progress in driving our corporate showcase our craft skills, offering customers a different, engaging
responsibility agenda. This Review shopping experience, with more Morrisons Academy trained skilled
craft specialists.
shares the highlights and reports We’ve also improved our range across the rest of the store,
against our commitments, as we build introducing NuMe which gives customers a greater choice of
healthier pre-prepared products, without compromising on taste
our business around more of what or price. We’ve gone out into communities to talk to customers
matters: ‘friendly people making about our new healthy alternatives, providing information and
free health checks as an incentive to make the switch.
great food affordable for everyone’.
In this challenging economic climate, it’s even more important
Great shopkeeping starts with ‘friendly people’ delivering fantastic to us that we offer customers great food that’s ‘affordable’.
customer service. The investments we’ve made for our colleagues Our unique business model, focused on buying, making and
in training, skills development and support in the workplace moving a high proportion of the products we sell, is central to
were recognised by a range of external awards, from The Grocer’s reducing both our costs and waste. Despite business growth,
Employer of the Year Award for the third year in a row, to our we’ve successfully lowered our carbon emissions for another
National Award for Excellence for Talent & Skills from Business year and remain on track for our 2020 target.
in the Community.
High quality, affordable fresh food prepared with skill and care
As a food focused retailer, we pride ourselves on ‘making great is something that we want to be available ‘for everyone’. It’s more
food’. The end of our financial year coincided with the discovery than just selling food in our stores; it means sharing our skills
of horsemeat contamination in the European food supply chain. and passion with the wider community. Our established ‘Let’s
Whilst we received a lot of positive coverage for our clean bill of Grow’ programme continues to educate and stimulate young
health, it’s essential that we remain vigilant and that customers can people in growing and eating fresh food. We’re delighted that
continue to trust the quality and provenance of the food they buy. it received a ‘Big Tick’ and was highly commended in the National
Business in the Community Awards. The educational benefit
We’ve reinforced our commitment to ‘making’ even more of the it provides, as well as the interest it encourages in fresh food,
food we sell, maintaining direct relationships with our primary is very important to us.
suppliers, and supporting responsible sourcing. Over the past
year, we introduced new meat packing and seafood processing Last year I wrote that we are proud of what makes us different.
facilities and started expanding our Colne abattoir and Wakefield This year we will be making that a central and more visible part
bakery sites. of our communication. With our customers and our stakeholders,
we will be sharing more of what matters.
Fresh British sourced food remains a priority for us, with our
annual farming conference providing the ideal forum to work
in partnership with our suppliers to ‘Keep Britain Farming’.
We’re also actively encouraging responsible fishing, both at
home and abroad, to ensure the integrity of our sourcing
practices is as high as the quality of the seafood we sell.
2
Overview
Friendly people
Making great food
Responsible retailing Affordable
For everyone
Governance
Food with thought
Martyn Jones
Group Corporate Services Director
We have again had our Review During the year we addressed issues such as how we structure and
communicate our commitments. We looked at key performance
independently assured by Two measures, strengthening the governance of our programme
through our Management Board and Corporate Compliance and
Tomorrows in accordance with Responsibility Committee and better integration with our wider
AA1000AS (2008). The Independent corporate communication.
Assurance Statement commenting Essentially our programme remains very much on track. For clarity,
we have summarised our commitments and specific key performance
on the report and elements of our indicators at the end of the Review in the same format as previous
years. In the body of the document we’ve provided the detail and
responsible business programme is case studies to demonstrate progress, highlight challenges and
set out in full on pages 66 and 67. address requests for further information from key stakeholders.
We took a great deal from the experience of external verification In particular, this year we’ve included new details on how we are
last year. This was positively received by stakeholders who working on end-to-end supplier quality and assurance, fish sourcing
recognised that this further improved the quality and accuracy developments, improvements to our policy for products derived
of our reporting and gave us useful management feedback. from timber and a significant step on our palm oil ingredient
sourcing. We’ve also provided more information on technical
It’s helped us to revise and shape our corporate responsibility support for British farming suppliers and our second major
programme and this year’s Review. We formalised the process update on our support for the Public Health Responsibility Deal.
to determine the relative materiality of issues that we deal with.
This in turn helped with decisions on where to focus resource
and coverage.
Building on last year’s Management Board Member interviews
and site visits, Two Tomorrows, this year, interviewed various senior
colleagues over a three day period, including our Chairman. They
undertook site visits and further senior management interviews at
our Willow Green distribution centre, Grimsby fish processing plant
and our St Alban’s Fresh Format store. Finally, Two Tomorrows
requested evidence for claims made and key statistics used in
this Review.
Over 2.7m
customers visit our Fresh Format
stores each week.
3
Overview Corporate responsibility review 2012/13
Our business model –
doing more of what matters
What we do Where we do it
Our business model is underpinned by We operate throughout the UK so
the manufacturing and sourcing of great we’re closer to our suppliers and
food, sold across our stores by our friendly customers – the people who matter.
people – put simply we make, we buy,
we move and we sell.
Morrisons has grown from a market stall in Bradford to the Key
UK’s fourth largest supermarket group with c500 stores Head office
including 12 Morrisons M local convenience stores.
We employ 129,000 people across our business, including Online head office
over 5,000 trained butchers, bakers and fishmongers. Distribution centres
We have over 600 lorries and 150,000 trolleys. Manufacturing
M local
Each of our stores (including convenience) has its own Market Supermarkets
Street, complete with trained colleagues using their craft skills
to bring fresh products to our customers, prepared just the 58
way they like it. Every day in store we bake 128,000 loaves,
Scotland
fillet 5,000 fish and make 11,500 sandwiches. We make
more fresh food in store than any other supermarket.
We have always cared about the origin of our food. In the
1960s we began sourcing our meat from Woodhead Brothers, 90
a company which became part of the Morrisons family North
in 1991. We are now the UK’s second largest fresh food
manufacturer and our vertical integration gives us both
transparency over our supply chain and the flexibility to
run industry leading promotions to support our profitability.
Our business model has evolved to reflect the changing 99
demands of today’s consumer, in particular ‘when, where Midlands
and how’ they shop. We continue to invest in the convenience
market. We have made progress with our multi-channel offer,
with Kiddicare and Morrisons Cellar, and the development 85
of our online food proposition.
South-East
Our head office, logistics and distribution teams support
our stores and we continuously invest in technology.
84
Our Evolve programme has helped us increase efficiency 70 South Central
by making sure we have the right systems in place to South West
deliver continuous improvement across our operations.
Who we are
We are ‘friendly people making great We are proud to be a British Group and close to both our
food affordable for everyone’. customers and suppliers.
This Review provides details from We are continuing to grow so that we can reach even more
a responsible business perspective customers. In 2013/14 we plan to open 20 stores and increase
our convenience store portfolio to 100. Our continued store
about who we are and what we are roll out means we’re creating local jobs across the UK.
doing to deliver more of what matters.
4
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
How we do it differently
We provide great service to our customers by How we’re building on
offering the best value fresh food, prepared Fresh
in-store by our experts. We are unique Value
because of the transparency of our supply Service
chain and our focus on traditional crafts.
Fresh Value
more of what matters more of what matters
• fresh food – from field to fork, • honest prices – affordable for everyone
catch to kitchen in hours • transparent promotions
• made from scratch in store every day • great availability
• vertical integration – we own the supply We price our food honestly to offer the best value to
chain and we source locally our customers. Our vertical integration allows us to drive
• we guarantee our fresh credentials efficiencies and quickly pass savings on to customers.
In Market Street our customers can see their food being
prepared. Even our Morrisons M local stores have
Market Street made products giving customers
the same great fresh food.
e for our
g valu sh
sin a
sh
V alu
re
Fre
i
im
ho
e
Max
lder
s
Service
Service
more of what matters
• craft skills in store – see and We pride ourselves on our in-store craft skills.
We have over 5,000 trained butchers, bakers
taste the food on Market Street and fishmongers preparing food and delivering
• friendly people, offering the exactly what our customers want, tailored to
best advice and service suit local markets.
• knowledgeable HOT service
(Hello, Offer, Thank)
5
Business highlights Corporate responsibility review 2012/13
Highlights in 2012/13
February 2012 March 2012 April 2012
Giving us greater control over the quality, Farmers and agricultural suppliers from We announced a new pension scheme
value and supply of products, we acquired across the country attended our Farming for colleagues, providing a guaranteed
Winsford meat processing plant, part of Conference. Held at the Yorkshire sum when colleagues choose to retire.
the Vion Group, supplying pre-packed Showground, the Conference discussed In addition, we started work with leading
pork and lamb products. This allowed how we can work even better with our independent financial expert and TV
us to increase our in house meat production farmers to deliver great fresh food at personality Alvin Hall, to put in place a
in an already outperforming category. affordable prices. three year programme of financial advice
and support for all our colleagues.
August 2012 September 2012 October 2012
Our award winning Let’s Grow programme We became the first UK supermarket In an effort to help UK HGV drivers follow
returned for its fifth year. We developed with its own seafood processing plant by a healthier lifestyle, we piloted a series
it further by reaching out to the wider opening our Grimsby manufacturing site. of initiatives at truck stops throughout
community, giving local people the Part of our wider growth plan, Grimsby, the UK. This included providing individual
opportunity to grow and harvest their once fully operational, will aim to further health checks, dietary advice and healthy
own crops. reduce the time from catch to kitchen. alternatives to traditional meals.
6
Overview
Friendly people
Making great food
Affordable
For everyone
Governance
May 2012 June 2012 July 2012
Mastercraft, our colleague competition We launched our new healthier eating The Grocer Gold Awards recognises
to find the best craftspeople from across range, NuMe, replacing Eat Smart. the ‘best of the best’ in grocery retail
our business, was back for its third year. Developed by our professional chefs and for service, initiative and commitment.
Building on last year’s competition, nutritional experts the range spans over We took home five awards, including
Mastercraft 2012 saw the best butchers, 300 items. Clear iconography on our Employer of the Year for the third year
bakers, cheesemongers, fishmongers, NuMe packs simplifies the nutritional in a row.
flower shop, produce, cake shop and information of each product.
wine advisor colleagues compete for
the Mastercraft title.
November 2012 December 2012 January 2013
We hit our target to raise £4m by the end of Research reveals that more than one in We announced plans to open even more
our 2012/13 financial year for our charity ten families start Christmas planning in M local convenience stores throughout
partner, Save the Children. Funds raised September in order to combat the financial 2013. M locals focus on offering more
will help towards their Families and Schools impact of the festive season. To help those fresh food than any other convenience
Together programme, making a real and struggling we pulled together a Christmas stores. Ranges within each store have been
lasting difference to children in the UK. dinner shopping list to feed a family of carefully tailored to suit the needs of its
eight for just £20. neighbourhood location and typically stock
over 100 lines of fresh fruit and vegetables.
7
Friendly people Corporate responsibility review 2012/13
Friendly people
Our people are at the forefront of 2012 Awards
everything we do. Having the right The Grocer Gold Training Journal
people is a key differentiator, allowing Awards 2012 Awards 2012
us to deliver excellent customer service Grocer of the Year Gold Award
Employer of the Year
and meet our strategic objectives. At Grocer 33 – Service
Winner of Best Coaching Programme
“The scale of what Morrisons set out to
Morrisons, we aim to create long term Grocer 33 – Availability
Hidden Hero of the Year
do was immense and reached all levels
of the organisation, and customers,
partnerships by giving colleagues the Special recognition for our
commitment to training
with remarkable business results.”
Judges comments
time, qualifications and support needed “Morrisons ticked all the criteria” and
to grow and develop their skills.
cited our commitment to “offering
customers the best possible service” Yorkshire & Humber
by ensuring our colleagues feel Regional Awards
rewarded and motivated.
Judges comments
for Training and
Apprenticeships 2012
Highlights Food & Drink Top 100
Apprenticeship Employer
Federation
Top 100 Apprenticeship Employer 2012
Awards 2012
Labour turnover
15.0%
1
“Apprenticeships develop the workforce
Developing Skills Award of tomorrow, whilst giving people
the skills they need to succeed in
“Morrisons provides a very innovative employment. To be named a Top 100
and thorough approach to developing Apprenticeship Employer is a sign
skills throughout the chain – from
87.0%
of excellence and these companies
Employee stability 2 school to senior management.” should feel incredibly proud of what
Judges comments they’ve achieved.”
Judges comments
Business in
People progressing from
1,205 National
3
the Community
the shop floor to managerial Awards 2012 Apprenticeship Awards
positions in 2012/13 Workplace Talent and
2012
Skills National Award Employer of the Year,
Business in the Community Regional Regional winner
Colleagues participating
in the annual colleague
Climate Survey
93.0% and National Big Tick in the Workplace
Talent and Skills category
“Congratulations to Morrisons, this is
a wonderful result. BITC could not be
“Apprenticeships and skills development
bring so many benefits, allowing
employers to tap into new raw talent,
up-skill their staff and grow their
more delighted that all your commitment businesses.”
and hard work in developing your Sue Price
people, and delivering the Morrisons
6.2%
National Apprentiship Service
Colleague engagement 4 Academy has been recognised.”
increased by Stephen Howard
Chief Executive,
Business in the Community
1
12 months to 31 January 2013.
2
12 months to 31 January 2013 measured as colleagues
with more than one year’s service.
3
3 February 2013, compared with 31 January 2012.
4
From Climate Survey March 2012 to year end Pulse Survey.
8Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Morrisons people
9Friendly people Corporate responsibility review 2012/13
Friendly people – continued
Developing talent
Talented people are our greatest asset and the way we train our
colleagues helps us deliver better customer service. We bring the
best out of our people by providing opportunities for continuous
development and improvement.
A career at Morrisons starts with the ‘Best First Day’. Developed
further over the last year, this is a comprehensive induction to the
Morrisons vision, culture and Values. Each colleague’s progression
after joining the business includes regular feedback, supplemented
by more formal performance reviews.
Our colleagues also receive training through the Morrisons Academy,
our company wide overarching development programme.
The Morrisons Academy gives colleagues at all stages of their
We have over 1,000 fishmongers in our stores. career the opportunity to build skills, whatever their ambition
may be. This is built on strong partnerships with leading academic
training and development providers.
Our Values
“Developing our people is a way
Can do of life. It’s enabled Morrisons to
Getting things done build the successful business it is
today and it’s what will ensure we
One team continue to grow in the future.”
Working well together
Fiona Phillips
Bringing the best out of our people Morrisons Academy
We’re constantly learning and looking
to improve on where we are
Great selling and service
We love to sell and serve
Great shopkeeping
Setting the standard in all areas
of our business
Fresh thinking
Always looking for new and better
ways of doing things
Recruitment
The majority of our new colleagues come from the local community.
For stores, for example, this typically means around 75% come
from the local area and over half will be previously unemployed.
Stores provide flexible work opportunities for a wide range of
people from different backgrounds. We offer specialist positions
as well as entry level jobs, qualifications and prospects so that our
people can build a career.
Over the year, we continued to open more facilities, offering
new positions within the Company. By the financial year end
we had opened 17 new stores, nine new convenience stores
and two new manufacturing facilities.
To find out more about careers at Morrisons
Visit – morrisons.co.uk/corporate/jobs
232 butchery and bakery apprentices graduated in 2012.
10Overview
Friendly people
Making great food
Affordable
For everyone
Governance
Colleagues at our new Fresh Format stores received specific training
Apprenticeship Minister focusing on excellence in preparation and customer service to
joins us at Billingsgate support the enhanced layout of the retail space, product range
and services. Dean Clough Cookery School now deliver our new
The Minister for apprenticeships, store food based team builds.
Matt Hancock, visited one of our
fishmonger training sessions as Morrisons offers its managers and supervisors the opportunity
part of National Apprenticeship to attend masterclasses with specialists. The one day masterclasses
Week just after our financial year. are held by industry leading experts in a variety of locations which
During a later Parliamentary are relevant to specific sectors. Examples include fish managers
debate he said: “It has been a attending training at the iconic home of fish, Billingsgate Market,
great National Apprenticeship and butchery managers attending training at the Morrisons Farm
Week so far. At 5.30 this morning I was learning from Morrisons at Dumfries House. Masterclasses now include, meat, fish, deli,
apprentices how to fillet fish, and what brilliant apprentices they produce and floristry.
are. We need to increase quality throughout the apprenticeship
system so that all apprentices can be as good as the very best Training and skills development is available across all parts of
at MBDA, Morrisons and Rolls-Royce...” our business. In manufacturing, we helped 5,500 colleagues get
closer to understanding what great food looks like through our
pinnacle food quality standard. We also now offer colleagues
in manufacturing, logistics and supply chain the opportunity
to complete Level 2 Intermediate and Level 3 Advanced
What did the Academy deliver in 2012? Apprenticeships in Business Improvement Techniques.
Awards
The Academy has become known throughout the retail industry and
beyond as a leading authority in training and development. Last year, “ The last few years have seen a lot
we received a number of awards based on its progress and specific
activity during the year, including from Training Journal, Business of changes in the way we work,
in the Community, National Apprenticeship Service (RAFTA’s) and
we were once again named a Top 100 Apprenticeship Employer.
but we’ve made sure we keep great
customer service at the forefront
Core training and up-skilling
To date over 110,000 colleagues have taken up the opportunity
of everything we do.”
to complete a Level 2 qualification with 50% of these colleagues not
previously having qualifications at this level. Paul Finch
Store Manager, Cheadle Heath
We maintained our position as the largest apprenticeship provider
in the UK with 11,000 colleagues graduating this year with a Level 2
Intermediate Apprenticeship.
The craft skills of our colleagues on Market Street are a genuine
point of difference to our main competitors. Last year 232 butchery
and bakery apprentices graduated from their programme. We are
planning to increase the number of craft skills apprenticeships to
around 300 in 2013.
We also launched a Level 3 Advanced Apprenticeship in Retail
Management with over 6,000 managers, supervisors and colleagues
aiming to achieve the qualification level during the coming year.
The Prime Minister endorses
Feeding Britain’s Future
23,500 750,000+ To launch the new IGD youth employment initiative, Feeding
Britain’s Future, we took our Meat Specialist Roy Craven
and Larkfield Meat Manager, Annie Sylvester, to showcase
Colleagues completed a Level Training days delivered across
2 Diploma in Retail Skills/ the year to our colleagues* their skills in Downing Street. The Prime Minister said:
Customer Service “I was delighted to host an event in Downing Street today
which brought together employers and young people,
helping to inspire the next generation of Britain’s food
industry. 10,000 young people will now have the opportunity
to experience the industry first hand, encouraging them
to develop the skills needed to ensure that Britain remains
* 602,000 of these training days are the first three months a global leader and producer”.
for new retail colleagues undertaking in-house training.
11Friendly people Corporate responsibility review 2012/13
Friendly people – continued
“ The Future Business Leaders
programme has allowed me to
take a different perspective entirely,
looking at all business matters rather
than just thinking about my own
area. I’ve learnt a huge amount
about others and myself.”
Nicola Hartley
Meat Manufacturing
Leadership development
Alongside our apprenticeship programmes, we inducted our
largest ever cohort of graduates. We currently have 74 graduates
Sharon Logie, Cake Shop Mastercraft Champion. on our tailored training programme and will recruit an additional
122 in 2013. They have a great opportunity to spend time within
Mastercraft different parts of the business and build up a great breadth of
experience from undertaking hands on roles through to supporting
We pride ourselves on our craft skills and in September we Board Member projects.
held Morrisons second Mastercraft competition. This year,
the competition was expanded and butchers, bakers, fishmongers, Working in partnership with Bradford University we currently have
cheesemongers, wine advisers, produce specialists, cake 25 people on a sponsored degree programme, which is designed
shop colleagues and florists were all invited to compete. to help people gain real life work experience whilst at the same
time growing their academic knowledge.
The competition saw a number of challenges including live product
knowledge tests, demonstration of craft skills, and for our wine We have continued our accelerated development programme
advisers blind taste tests. Following a number of qualifying rounds, for future business leaders from within. Our future leaders
48 finalists were invited to a live finalé where they demonstrated programme supports individuals to identify their motivations,
their skills in our busy head office. The winners of each category career ambitions, strengths and development areas in order to
were invited to take part in specially arranged European industry create a specific personal development plan. To date 20% of
visits to learn more about their crafts so that they could bring the 125 initial participants have had positive career progression.
what they had learnt back to their stores.
As part of future leaders, participants work in a group with a
This is a great way of engaging with colleagues who are truly third sector or charity partner. The charity provide teams with
passionate about their trades and provides a springboard from an operational issue they would like help to resolve. The team
which they can add to their knowledge and skill set, often have one week working in the community with the charity
opening up career progression opportunities. and make recommendations. The first pilot of this programme
was held in 2012 with excellent feedback from both learners
and community groups.
“ We showcase our knowledge in
stores every day and Mastercraft
really celebrates that.”
Lee Smith
Morrisons gives Select
Mastercraft Produce Winner 2012 Committee evidence
We appeared before the Business, Innovation & Skills
Committee inquiry into apprenticeships – explaining the way
we run our apprenticeship scheme and how we up-skill
colleagues in local communities. We challenged the negative
view of modern apprenticeships and commented on our
training ability to provide a pathway and a career ladder
to colleagues. We also mentioned other training we provide
including MBAs and debt-free degrees.
12Overview
Friendly people
Making great food
Affordable
For everyone
Governance
The Morrisons Academy –
looking ahead in 2013
This year we are focusing on the Academy as one of our key points
of difference, further developing our suite of training opportunities
to support people to move from unemployed to employed and
then through their career once in the workplace. Training and
development will focus on key priorities for the business to extend
and support our points of difference and key brand messages.
We have identified three key priorities.
Skills and qualifications development
We’re increasing the number of craft skills qualifications,
developing a full suite of qualifications across all divisions
from shop floor to top floor (including pre-employment
Our 2012 Mastercraft winners.
training) and extending our programme of craft masterclasses.
We’re going to broaden colleague’s product knowledge through a
“ I’m very keen to progress and new training initiative called ‘Word on the Street’. This programme
is designed to build on our Department Advisor packs and enhance
contribute as much as I can to the colleagues’ confidence through product knowledge, product
tastings and perfect partner recommendations. All of which
future success of Morrisons while are designed to create the ‘complete’ shopping experience for
realising my personal ambitions.” our customers.
Leadership and coaching
Jamie Hulley
Through the recently established Centre of Coaching Excellence
Group Wide Graduate Programme we’re bringing the best of our people with advanced programmes,
and developing our leaders of the future.
The Morrisons Way
Management talent development
The Morrisons Way was developed in 2012, to translate our Values
It’s vital that we nurture talent and give colleagues who show
into action. We worked on creating behaviours that exemplify what
potential the chance to move to the next level. This includes
has made us successful today whilst weaving in others that will help
our management trainees and graduate programmes and we
us to be fit for the future, focusing in on ‘how’ we do ‘what’ we do.
will focus our attention on more tailored support that offers
the best opportunity for people to excel.
We are using the Morrisons Way to help define and measure
performance in our personal development review process,
to help us give useful feedback about how we get things done.
We ran workshops during the year to help colleagues explore
what the Morrisons Way means for them and how they can
better lead their teams.
Honest
We tell it like it is
Edge
We show grit and determination
Ambition
We create and seize opportunities
Respectful
We care for each other; everyone counts
Trusting
We achieve more together
Service
We serve and delight our customers
23,500 colleagues trained in retail skill/customer service in 2012.
13Friendly people Corporate responsibility review 2012/13
Friendly people – continued
Sharing our skills Employer of choice
We want our stores to be truly part of the communities they serve. We are passionate about providing a great place to work for our
We are committed to growing our people to build a loyal and colleagues, which in turn provides a better experience for our
committed workforce, which provides the basis of a strong customers. We are proud to have won the Grocer Gold ‘Employer
Morrisons culture and increased social mobility. We also want of Year Award’ for the third time in a row and the Retail Week
communities to benefit from our growth plans by creating ‘Employer of the Year’ for the second year.
opportunities.
The current economic conditions are challenging for our colleagues
Feeding Britain’s Future and this year we launched ‘Save your Dough’ (a money saving
Last year we provided over 700 unemployed young people (16-24) initiative), featuring finance expert and TV personality Alvin Hall.
with a three day work placement to support IGD’s Feeding Britain’s The scheme has been received positively, with over 45,000
Future week, including CV writing and interviewing skills and work colleagues saying it has helped them manage and improve
experience within Morrisons stores. This resulted in 19.3% of their finances.
trainees gaining permanent employment with us, well above the
Government’s current output of 3% through the Back to Work We know the importance of communicating with our colleagues
Programme which can last up to six months. This year we intend so that they know what’s going on at Morrisons. Our teams receive
to increase this to 1,000 unemployed people, including placements regular updates through our Fresh News magazine and colleague
in our manufacturing and logistics sites. communication boards.
Our Club The health and wellbeing of our colleagues is key to a happy
workforce. As well as increasing healthy food options at
This year we’re helping to get people who have been disadvantaged our sites for our colleagues we have a comprehensive in-house
in society into work. With youth unemployment at around 1m, this occupational health service. Through this we offered all staff
is life changing work and something we can be extremely proud of. free flu vaccinations and delivered over 18,000 in the 2012/13
One of the ways we are doing this is through ‘Our Club’ – a pre flu season.
employment programme to support unemployed young people to
get into the workplace. We’re working with the Centre for Coaching We also offer bespoke services such as physiotherapy to
Excellence, other large employers and suppliers to help young colleagues in manufacturing and logistics where more manual
people start their career. labour is required.
“What matters most to me is the Absence and sickness are important metrics which are closely
positive difference we make to monitored. Our absence rate is around 3.7% and sickness rate
the communities we operate in. as low as 3.5%.
We’re doing more to support
the unemployed with Our Club,
giving young people real skills
and real hope for the future.”
Nick Rowe
Morrisons Academy
Store community engagement
In 2013, we’re going to deliver more of what matters locally.
We’re creating a community champion in all of our main estate
stores and we will be adding an enhanced re-designed community
board to shout about all of the work colleagues and customers
do in their local community.
We expanded our Mastercraft competition in 2012.
14Overview
Friendly people
Making great food
Affordable
For everyone
Governance
We have won The Grocer’s Employer of the Year Award for the third year in a row.
We listen to what our people tell us and colleague suggestions
have played a key role shaping our strategic objectives and Deputy Prime Minister supported
engagement strategy. Morrisons work with 16–24 year olds
Formal feedback is important. Our annual Climate Survey is During the launch of the Deputy
supported by quarterly Pulse Surveys. These ensure we regularly Prime Minister’s £1bn youth
measure employee engagement. This year, our response rate for contract, Rt Hon Nick Clegg
our Climate Survey was 93% and our year-on-year engagement MP welcomed Morrisons
levels have increased by 6.2%. spearheading an initiative to
get unskilled young people
We’ve listened to the feedback we’ve received through our surveys back in to work. Morrisons
and taken action to improve the way we work. In 2012 this jointly formed the 16–24 Alliance
included adding extra hours back into our checkouts as a direct to help young people develop the confidence and experience
result of colleague feedback. We’ve also supported our managers needed to gain a job and launch themselves into a career.
with training to enable them to deliver better personal Nick Clegg said: “Morrisons and the 16-24 group of companies
development reviews. are showing great leadership in coming forward and working
with the Government’s Youth Contract”.
We’ll do more in 2013 to unlock ideas originating from our teams
and enable colleagues to play a bigger role. We recognise that the
people closest to our customers can contribute more to improve
the way we work. Once again we will share the results from our
annual Climate Survey with everyone and support each local
team’s development of their action plan.
It’s about creating a great place to work, with higher support
and high challenge. We’re committed to continuing this work,
ensuring we deliver more of what matters to our people.
15Friendly people Corporate responsibility review 2012/13
Friendly people – continued
Retirement Saver Equality and diversity policy
At the end of their careers, our colleagues celebrate their Best Equality and diversity at Morrisons is about respecting difference.
Last Day. We then continue to support and keep in touch with We will treat all colleagues, customers, job applicants, contractors,
them through the M Retirement Plus scheme. suppliers and visitors fairly, equally and with respect and value
the diverse skills and talent that different individuals can bring
This year, against a backdrop of significant pension changes, we to our Company.
introduced our ground breaking Retirement Saver pension scheme.
We pride ourselves in being different. This is underpinned by our
The improved scheme is designed to be more straight forward desire to promote equality and diversity. We recruit, train and work
and will provide a predictable pension pot when colleagues with people from all sections of society and value the different
choose to retire, a significant improvement on the existing defined skills, ideas and experiences they can bring to our business.
contribution plan.
At Morrisons, we will not tolerate any form of discrimination,
The cash balance scheme, which is relatively unusual in the UK, victimisation, bullying or harassment on account of an individual’s
shares the risk of being in the pension scheme between Morrisons difference. In addition to our business values, legislation also exists
and its employees. We will guarantee the pension pot payable at to legally protect the rights of individuals on the grounds of sex
retirement when members typically purchase an annuity. (including pregnancy), sexual orientation, religion or belief, marital
status (including civil partnership status), age, race (including
The scheme is open to all permanent employees and we will ethnic or national origin, colour or nationality) or disability.
manage and underwrite the investment to produce a guaranteed In addition, a colleague will not be treated less favourably on
fund upon retirement, delivering a predictable pension pot for account of working part time, being on a fixed term contract
employees irrespective of fund performance. or being a trade union member.
Providing a trustworthy predictable pension is our way of showing Ongoing training and development of managers and colleagues
commitment to colleagues throughout their career and into linked to our Values, as well as actively putting this policy and
retirement. We believe this approach sets us apart and will procedure into practice, supports a culture which is equal as
encourage colleagues to stay with us for the long term. well as diverse.
Pensions Minister visits Manchester
The Pensions Minister, Steve Webb, visited our store in Ethics and conduct
Openshaw to talk to colleagues about the Retirement
Saver launch. The Minister commented that Whistleblowing and standards
our Retirement Saver scheme is an example of best practice We are committed to conducting our operations to the highest
amongst the industry. standards. To help us achieve this, we encourage all colleagues
to be aware of their working environment and the actions of
other employees and third parties around them.
Women in Business initiative
Morrisons was one of the first major businesses to respond ‘Tell Us’ allows colleagues to raise any concerns they have about
to the Lord Davies review into women on boards. We continue practices that may affect the business and our reputation such
to support the progression of women into senior roles in as fraud, damage to property, bribery, breaches of health and
our business. safety law, breaches of food safety law, unethical behaviour,
or environmental damage.
In 2011 we committed to increasing the female representation
on the Company’s Senior Management Group from 13% to 30% ‘Tell Us’ operates through an independent third party, is completely
by 2014. confidential and can be anonymous to encourage participation.
We made progress on this commitment in 2012 and now have Bribery and corruption
22% representation at this level (an increase of 2% on last year) We run our Company honestly and will not tolerate bribery or
with women represented at senior management level across corruption from any of our colleagues in any of our dealings or
all divisions. relationships. We have systems in place to prevent bribery and
corruption and meet the law in the UK (specifically the Bribery
This year we have increased our intake onto the Pearls programme Act 2010) and everywhere we operate.
from 80 to 106, providing talented women with external
networking and development opportunities.
16Overview
Friendly people
Making great food
Affordable
For everyone
Governance
“Since 1999 we have achieved a
downward trend in colleague Health and safety
accidents throughout our Group.
The aim for us is to ensure this We are committed to achieving the highest standards of health and
continues despite our expansion. safety at work across the Company through a process of continuous
Over the year, we have improved improvement in both practice and performance. Since 1999 we have
our management systems, reporting established a downward trend in accident rates despite a rapidly
methods and in house training growing business in terms of both size and complexity. However,
so we can continue to meet the we recognise that the only way to continue with this is through
highest standards.” colleague engagement.
Phillip Taylor We benchmark our performance against competitor organisations
Health and Safety and against those companies in wider industry who are recognised
as having world class safety management systems. We actively
participate in benchmarking forums and are represented on industry
Rate of colleague accidents (per 100,000 colleagues*) and professional bodies.
Rate of colleague accidents During 2012 we achieved a reduction year-on-year of 15.8%
40,000 in the rate of total colleague accidents.
35,000
Last year we reported that we were building a top down and bottom
30,000
up approach to the management of safety in our manufacturing
25,000 division. As a key initiative we introduced near miss reporting into
20,000
manufacturing in early 2012. As a result, we have seen the numbers
of reports made rise from 60 in that month to 1,003 a year later
15,000
(January 2013) achieving an average of 544 per month with a formal
10,000 close out rate of 82%.
5,000
Our target remains to achieve an accident rate reduction of 20%
0
in total colleague accidents and 30% in reportable accidents
01 02 03 04 05 06 07 08 09 10 11 12
(under RIDDOR) over the three year period 2011 to 2013.
* Reportable and non-reportable accidents
(including agency workers and contractors)
In 2012 we moved our Group health and safety management system
in line with the international standard OHSAS 18001, we believe this
will lead to improvement in both practice and performance.
Establishment of near miss reporting month-on-month
in the manufacturing division during 2012 As part of our process of equipping our managers with the tools
they need to effectively manage health and safety, we provided
1,200 training to over 3,500 managers and supervisors in our retail division.
1,003
925
1,000
Health and safety commitments in 2013
824
800 We will continue to work towards our accident rate target,
585 728 utilising the OHSAS 18001 management system to support
600
485
574
our reduction framework.
528
400
256
452
We will improve our information gathering and trend analysis
200 to more effectively use and target our resources.
60
108
0 Colleagues working wholly or mainly in open food preparation areas
F M A M J J A S O N D J
within our stores will be provided with new slip resistant footwear.
15.8% 3,500
Year-on-year reduction Managers and supervisors
in the rate of total trained in retail health
colleague accidents and safety
Near miss reporting has been introduced into manufacturing in 2012.
17Making great food Corporate responsibility review 2012/13
Making great food
Within the context of our responsible The Morrisons farming programme
business programme ‘making great food’ Provenance
means working with our suppliers on Morrisons takes pride in the provenance and production of our
food. Operating as a leading food manufacturer as well as a major
improving social and environmental British retailer means that we source the vast majority of our inputs
for Morrisons branded products from British farmers.
performance.
British sourcing is important for a number of reasons. It adds to
It requires innovation, quality the national economy, bolsters agricultural industries and supports
rural communities. It also means that we are closer to source
management and careful control because we have shorter supply chains.
throughout our manufacturing business. We know that our customers have confidence in British food and
so we are committed to ensuring that British farming is our major
In store and in the home we help marketplace, remains buoyant and continues to develop.
customers by providing a wide We continue to lead the market through our major commitment
to fresh British meat by sourcing all Morrisons brand labelled
variety of choice, specialist advice unprocessed beef, lamb, pork and chicken from British farmers.
and practical guidance.
See our farming website
Visit – morrisons.co.uk/farming
Fourth year of Morrisons expert led farming
programme
Comprehensive support for the Government’s
Public Health Responsibility Deal
Successful launch of healthy eating range, NuMe
Industry leading results for our ‘Challenge 25’
age restricted sales policy
We buy directly from British farmers.
18Overview
Friendly people
Making great food
Affordable
For everyone
Governance
The right ingredients
19Making great food Corporate responsibility review 2012/13
Making great food – continued
Lamb
2012 British farm sourcing As with beef we process our own fresh lamb direct from suppliers.
During the year, we purchased over 718,000 animals from British
Where we differ from competitors is most evident when it comes farms for sale as fresh Morrisons branded meat.
to sourcing and processing our own fresh meat. To give an idea
of scale here are some facts and figures for the year. Pork
We continue to be one of the biggest supporters of British pork
Beef with over 1.2m pigs purchased direct from suppliers in 2012.
We process fresh beef from our three abattoirs located across English Beef & Lamb Executive (EBLEX) suggests that the UK
the country. During the year, we made over 153,000 livestock is only just over 50% self sufficient in pork and yet we buy all
purchases for supply into store. of our fresh Morrisons branded pork from British farmers.
In 2012 we launched our traditional beef range to sell as a An independent report ‘Bringing Home the Bacon’ commissioned
premium range in store. British breeds of cattle such as the by the Centre for Research on Socio-Cultural Change (CRESC)
Shorthorn, Angus and Hereford are popular breeds for producing and published in June 2012 highlighted the benefits our supply
high quality beef and are well suited for the British climate. chain ethos provides to the industry.
Farm to store
Our senior livestock manager, Michael Winchester, at Fosses Farm, which supplies us with
beef cattle. We are able to buy animals directly and process the meat at one of our abattoirs
such as at Colne (pictured). Large cuts of meat, called primals, are transported through our
own network to our Market Street butchers ready for preparation for customers.
20Overview
Friendly people
Making great food
Affordable
For everyone
Governance
“Our challenge working with
our farming suppliers is to keep
British food as first choice for our
customers where possible. As the
food market becomes even more
globalised the challenge is becoming
greater. Our farming programme
is part of our commitment to a
competitive, profitable and
sustainable farming industry.”
David Evans
Agriculture
Morrisons pig supplier, Hallikeld Farm.
Whilst some stakeholders have been critical of our change we
“ The Morrisons model aligns the believe it properly responds to our customers’ demands for a
competitively priced, quality range of products. Even so, to put
interests of firm, supply chain and this into perspective, over 95% (by weight) of all the fresh meat
we purchase (when we take into account these brands) will remain
society. Morrisons runs its vertically British sourced. That remains a level of commitment that is unique
integrated processing plants at full in the marketplace compared to our competitors.
capacity and proves the benefits of The rationale for creating Hemsley’s and Market Deals in branding
terms was to clearly differentiate these products from Morrisons own
plant loading with demand stabilised. brand fresh meat products where our customers have an expectation
and understanding that they will be supplied by British farmers.
The firm increases margins, reduces
transaction costs and controls quality. Chicken
Society gains through reduced import We have successfully embedded the higher welfare regime we
introduced in 2011 for all UK sourced housed chickens. The system
dependence, stable employment and that applies across our standard fresh range requires a minimum
higher welfare regime that includes natural light, bales, pecking
the capacity to address animal objects and perches. Free range and organic chickens have
additional welfare and environmental requirements.
welfare and climate change.”
CRESC Report
‘Bringing Home the Bacon’
During the year, the new EU welfare directive (that affects 15% of
pork meat we import for hams and bacon) was fully applied across
our supply base.
As well as selling offal in our stores we are now beginning exports
of pig offal to the Far East. We are offering wider customer choice,
utilising more of the carcass and also reducing waste.
Our standard fresh chicken now has higher welfare requirements.
Hemsley’s and Market Deals
During the year we introduced two exclusive brands to our stores
for meat products; called ‘Hemsley’s’ and ‘Market Deals’. This First Minister welcomes
group of products offers customers who are on a tight budget a Farmers Boy investment
lower cost alternative to our standard Morrisons branded products.
The major difference to our own brand products is that they may We announced that a new grant of £635,000 secured from
be sourced from outside the UK and if so are labelled as such. the Welsh Government’s Economic Growth Fund helped
us create up to 90 jobs at our Farmers Boy Deeside facility.
Suppliers are carefully chosen and must utilise farm assurance The First Minister of Wales publicly welcomed the investment.
schemes that we recognise, operating to clearly defined production The grant formed part of a £6.4m development programme
and welfare standards. at the facility, which has enabled us to start producing ready
to eat chicken meals as well as sliced meats. The plant supplies
our stores across the country.
21You can also read
