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Auditor's Extended Statement
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The statement below is in addition to the auditor's statement (follow this link to the auditor's statement).
Improved reporting
I believe that some significant advances have been made in the 2001 Partnership Report, making it more useful and increasing the confidence readers can have in the information it contains. Particularly noteworthy are:
- the table showing trends in key performance indicators;
- the development of new indicators, such as:
- 'customers' and staff satisfaction with the bank's ethical behaviour',
- 'suppliers' perception of the bank's long term commitment',
- 'training and management systems to combat illegal money laundering',
- 'monitoring staff absence and well-being';
- providing statistics and commentary on customer complaints;
- improved vehicle emissions measures;
- internal auditing of water, electricity and gas consumption records;
- further development of the bank's ethical and ecological value analysis;
- more frequent and extensive internal auditing of account and business screening procedures for ethical compliance.
Employee issues - reward and progression (follow this link to the staff indicators)
The commentary on staff salary and benefits packages (follow this link to the staff indicators) recognises significant levels of individual dissatisfaction (42%) with salary levels and a perceived lack of fairness (40%) in rewarding good work. While I accept the comparisons the bank has made with salary averages in other financial services organisations, there is clearly an issue, also apparent in last year's staff survey.
Has the bank responded to staff concerns? Discussions with the UNIFI staff secondee indicated that these concerns are probably linked to uncertainties about the way the new reward and career development system works. I therefore asked the bank to include data on salary increases awarded for improved capability. This shows that more than 40% of all bank staff benefited during 2001. In 2002, the bank has increased the proportion of money allocated for achievements and capability increases. While staff surveys show only a third satisfied with career progression opportunities, I believe the commentary in Development opportunities, career progression and succession planning does provide a fair and useful analysis and evidence of the bank's response.
The bank will need to ensure that changes are well understood by staff and to continue to monitor staff responses through the management structure, annual staff surveys and other feedback processes.
Equal Opportunities (follow this link to the equal opportunities staff indicators)
Through discussions with the bank's Human Resources Department I am satisfied that considerable efforts have been made during the year to increase the low proportion of employees from non-white and ethnic groups. While the proportion of new recruits in call centres has improved this has not affected the overall proportion for the bank. The bank has made action in this area a priority. It is consulting with ethnic community representatives and has targeted further remedial actions. It would be helpful if the bank were able to compare strategies and benchmark performance in this area with other financial institutions, particularly those in the Greater Manchester area, such as CIS, for future reports.
Health and Safety (follow this link to the health and safety indicators)
The bank, working with the employees' trade union UNIFI, has made dramatic improvements in its management of employees' health and safety. It has improved and simplified reporting, increased the number and coverage of 'local forums' and devolved direct operational responsibility to senior managers in the bank's various business divisions. It has also increased training for all staff and raised awareness through a series of new publications.
Staff absence and well-being (follow this link to the absence and well-being indicators)
Not all staff concerns are articulated through surveys and I welcome the bank's approach to issues relating to work pressure, stress, health problems and absence from work. The bank may want to consider how it can report on the outcomes of more effective monitoring and the implementation of its "well-being" policy in future Partnership Reports.
Staff and the bank's ethical values (follow this link to the staff ethical values indicator)
Customers and suppliers show high levels of satisfaction with the bank's ethical policies and behaviour. Survey results have shown again a high level of understanding of the mission and core values among staff. However, when asked whether they believed the bank treated its staff ethically only half agreed. This may be related to perceptions about reward and career progression. I recommend that the bank does more work to find out why staff have these perceptions.
The Ethical Policy Review (follow this link to the Ethical Policy Review)
The bank responded to suggestions for a much wider process of customer consultation than in previous reviews. This ensured that issues included in the ballot more clearly reflected customers' concerns. I am satisfied that all customers were informed of the ballot, the options for voting, and that the process was conducted professionally.
Campaigns (follow this link to information on staff and customer community involvement)
A significant contributor to perceptions about the bank's values has been its campaigns on social issues of concern to customers and the general public. These have included the bank's Customers Who Care campaigns, reported in previous Partnership Reports, and its campaigning activities around issues like Climate Change and Combating Financial Inclusion, which I have reviewed in this report.
Customers Who Care campaigns are an important way of allowing customers to contribute to social change in society. Responsibility for these campaigns has changed in the last year and I discussed with the Corporate Affairs department the reasons why no new campaign was launched in 2001 and their future plans. I am fully satisfied that the bank has not changed its policy on public campaigning and with the detailed explanation of its actions and decisions in the Customer involvement section of the report. I also welcome the bank's intention to encourage more of it's own staff to identify with and contribute to future campaigning activities.
Leading change in the industry (follow this link for information on standards and guidelines)
I believe the bank has provided evidence that its co-operative and ethical values extend well beyond the gains in adding value to its own business. It has campaigned around a number of environmental issues, including climate change, and has been an influential participant in AccountAbility's SIGMA sustainability management project, the Global Reporting Initiative and the development of social performance indicators for the financial services industry.
Richard Evans
ethics etc...
26 March 2002
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