ReSPECT Rep ort 2013 1 EC T Hallmark ReSP 3 Report 201 Benchmarking Benchmarking our Corporate Responsibility performance is important to us. This ensures we maintain a position of leadership that has been built up over many years. Our main benchmarking tool is Business in the Community’s Corporate Responsibility (CR) Index, a public exercise in transparency, the index provides a robust tool to help companies systematically measure, manage and integrate responsible business practices. since we first began to use the Index back in 2006. Our current Platinum Big Tick Status means we have gained recognition for our thought about global megatrends, such as population growth and resource scarcity and the impact that this will have on our business. It means we have demonstrated how we make long-term investment decisions to improve the environmental and social credentials of our products. It means that our vision and values are embedded throughout our business and that our senior management team are educated and trained in relevant corporate responsibility issues. We are immensely proud of our performance in the CR Index, showing regular improvement in our scoring s atu nz o Br 2007 2 t eS us er v sil 2008 s s t Sta ld go 2009 S u tat m u tin s s u tS at m u tin u tS at m u tin pla pla pla 2010 2011 2012 u tS at big um us n i t lp at k Sta tic 2013 Hallmark ReS PECT Rep or t 2013 Contents Welcome4 ReSPECT5 ReSPECT Committee7 Responsible Employer8 Sustainability10 Business Performance12 Environment14 Community16 Trading with Integrity18 3 EC T Hallmark ReSP 3 Report 201 Welcome message Hallmark takes corporate responsibility seriously, that’s why we created ReSPECT. “Welcome to the Hallmark Cards 2013 corporate social responsibility report.” ReSPECT puts responsible business at the heart of Hallmark - from the way we treat our colleagues and manage our impact on the environment to our trading performance and community work. Although the last 12 months in UK retail have been tough, Hallmark continues to perform positively. This is down to great people, unique products and a passion for what we do - we make ‘life a special occasion’ for our consumers. At Hallmark, we know what makes a great greeting card and connect with our consumers through a unique offering that combines insight-led design, standard-setting editorial, superior production quality and a strong brand. We’re expanding this consistent experience across the gifting and 4 licensed ranges in our product portfolio. But it doesn’t stop there, at Hallmark corporate responsibility is key to our story and we’ve got a great one to tell. We continue to punch above our weight, rubbing shoulders with the biggest and best in the UK. We are very proud to have achieved Platinum Big Tick status in the Business in the Community Corporate Responsibility (CR) Index. In addition, we lead our sector as the only company to feature on the index and have embraced the challenges and scrutiny that comes with this to rank among the best of the best. The impact of this success can be felt at grass-roots level in the communities we are part of and generates a feel-good factor for our employees and those they interact with. We are proud to be located in Bradford, West Yorkshire and to be champions of the creative and industrial heartbeat of the region. This commitment is born out in our recognition as ‘Employee Volunteering Company of the Year 2013’ in the Yorkshire & Humber region and gives us another reason to be proud to be Hallmark. Over the following pages, we share some of our successes from the past year across the ReSPECT programme. I hope you will share my pride in what we’ve achieved and take a little time to learn more about some of the great work that’s gone into making it happen. Steve Wright Chief Executive Hallmark Cards PLC Hallmark ReS it’s all about Our corporate social responsibility programme has been divided into 6 core areas of activity to ensure that we address the many complex elements involved: PECT Rep or t 2013 with respect we’re better than the rest! ReSPECT is our approach to corporate responsibility and has been divided into 6 core areas that we call the ‘platforms’ of the ReSPECT programme. This ensures that we have a holistic and integrated approach to managing all aspects of corporate responsibility in our business. We have robust governance of the ReSPECT programme ensuring that all aspects of corporate responsibility are embedded into our core business activities. Our governance team is headed by a member of the Hallmark board, responsible for setting the CR agenda, and an operational team that brings the strategy to life and engages the wider business. The governance team is made up from colleagues company-wide ensuring the ReSPECT programme reaches all corners of our diverse business and becomes part of our everyday activities and decision making processes. It is the responsibilities of the governance team to: • Recommend the strategic direction for CSR for Hallmark for board approval and from this formulate strategies and plans to be delivered by the business. • Act as ambassadors for CSR activities and the ReSPECT Programme, raising the profile wherever possible, both internally and externally and using these opportunities to promote the Hallmark Brand. • Provide credible links between business and CSR strategies ensuring alignment and consistency where possible, and justification where deviations occur. • Actively engage board and senior management team members to increase their own understanding of the ReSPECT Programme and provide support on ReSPECT initiatives in the wider business. • Engage senior managers to increase their own understanding of the ReSPECT programme and to ensure the business can maximise commercial opportunities resulting from CSR performance and connections. • Set and/or approve targets and objectives for the Operational CSR Team to deliver. • Provide guidance on prioritising targets and objectives to ensure the activity of the Operational CSR Team is in line with current business strategy and priorities. • Evaluate external benchmarking opportunities for CSR in its entirety and as individual components. 5 EC T Hallmark ReSP 3 Report 201 With Platinum Big Tick Status We are delighted to have achieved Platinum Big Tick Status in the Business in the Community Corporate Responsibility (CR) Index. This accolade is reserved for organisations that are recognised as leading the way within the responsible business agenda – ensuring our long-term strategy and vision builds resilient communities and more sustainable futures. This recognition further builds on our previous achievements in the CR Index, where we have shown year-on-year progress since our first participation back in 2006. We remain the only company in our industry that is transparent in all aspects of Corporate Responsibility, and fully participates in industry benchmark tools like the CR Index. Some of the reasons we have been 6 we’re better than the rest! recognised as a Platinum Big Tick company include: • Robust corporate governance approach •Reward and remuneration system that recognises consistent achievers • Fully integrated Corporate Responsibility practices into day-to-day business • Leading business collaboration on the key issues Recognition for our Community Work The last 12 months have seen us making great strides in both how we interact with local communities, and the number of employees that are engaged in the programmes we run. External recognition has followed for both the way in which we embed volunteering opportunities into the business, and the impacts our programmes are making. Employee Volunteering Company of the Year Local Impact Award Recognising our efforts to effectively embed volunteering opportunities into our business, and build them around a focused Community Strategy, delivering meaningful and measurable benefits to the community. Building Stronger Communities Local Impact Award Recognising the genuine partnerships between Hallmark and community organisations, which identify and address a key social issues through sustainable projects or initiatives and are making a lasting impact on local communities. Our relationships with Bradford Foyer and Bradford Environmental Action Trust were used as case studies to support this. Game Changer In 2012 our Corporate Social Responsibility (CSR) Manager, Steve Smith, was named a Game Changer by Business in the Community, all down to his excellent Leadership of the Corporate Responsibility (CR) agenda at Hallmark. The Game Changer is a one-off Award to recognise individuals who have made a demonstrable contribution to integrating responsible business policy and practice within their organisation. Each Game Changer is an advocate of responsible business who, by helping to shift corporate responsibility from niche to mainstream, has played a significant part in advancing the movement. In particular BITC felt that, “Steve works tirelessly to ensure all colleagues are fully involved in best business practice and also ensures that the CR programme is integral to Hallmark’s approach to stakeholder engagement.” Steve received his award at the BITC AGM in December 2012 and was later invited to lunch with Prince Charles, who was keen to recognise the achievements of the Game Changers personally. Hallmark ReS committee PECT Rep or “At Hallmark we recognise the sta keholders in our business have a valuable contribu tion to make in shaping the success of both our bu siness and our ReSPECT programme. Stakeholders with whom we regularly collaborate include ou r employees, customers, suppliers, regulators an d financiers.” t 2013 Platform Owners Strategic Committee Each of the 6 ReSPECT Platforms is championed by a functional specialist, responsible for performance improvement and reporting against key performance indicators. The board sponsor leads a group of Senior Managers in the strategy development and objective setting for the programme. The committee consists of: International Supply Chain Director CSR Manager HR Manager PR & Social Media Manager Sustainability ana mental M Environ Environmen The 6 platform s Operational Comittee The committee Chair guides the team through delivering the strategy and monitoring performance against objectives, reporting key performance measures back to the Strategic Team. Environment ger tal Manager of Performance Trading with Integrity PR & Social Media Manager pl Supplier Com The committee consists of: iance Manager CSR Manager Environmental Manager Supplier Compliance Manager Internal Communications Manager Facilities Manager Quality Assurance Engineer Head of Merchandising Responsible Employer HR Manager CSR Manager Community CSR Manager Operations Graduate 7 EC T Hallmark ReSP 3 Report 201 responsible employer Our Vision is to create a positive culture where each individual gives their best, enjoys work and is rewarded fairly, is trusted and respected. Our Strategy is to value everyone’s contribution, encourage learning as a fundamental practice and aim to provide an environment that has the highest levels of safety and facility provision. One Voice One Voice is our employee forum which was set up in 2012 to facilitate 2-way engagement with colleagues across the business. Discussion topics already raised and debated include Internal Communications, Working Flexibly, and Benefits. The One Voice forum members also play a vital role in formal consultation processes as we go through a program of change in different parts of the business. Members of the localised One Voice Forums are connected to each other via a UK-wide forum that aims to share discussion topics from across the business and keep one another updated on content from all areas of the business. Benefits In response to colleague feedback we have broadened 8 Hallmark is committed to treating everyone equally and believes that everyone has an important contribution to make. for all colleagues. At the same time we continue to work on aligning our benefits and making sure we are competitive in the external market. Perf orm pay for an ce Change Agility rewarding you... ... the range of discounts we offer as part of our benefits package. We have made the range of benefits available more flexible to colleagues to enable them to tailor benefits to suit their lifestyle. For example, we have launched a special days scheme where individuals who are moving house, getting married, achieving a milestone birthday or becoming a new mum or new dad qualify for a £50 gift voucher or extra day’s leave. We have raised the awareness of the benefits of working at Hallmark through the launch of our new website and booklet Our key people managers in the business have attended thought-provoking Change Workshops with inspirational speaker Damien Hughes. The content of these sessions included discussions with small groups working on the challenges of change. Managers have since led followup sessions with their teams to introduce practical techniques to support an empowered approach to change. We now have a forum for managers to regularly meet and discuss their ideas around change and share ideas and best practice for their areas. Police Contact Point We have built a great relationship with West Yorkshire Police, working in Hallmark ReS partnership to ensure that our buildings and people remain safe at all times. The Police have been supportive of our Let’s Keep Safe with Hallmark initiative and attended our Family Fun Day in 2012 to give colleagues an insight into the role of the police. Colleagues and their families even got the opportunity to be locked-up in the back of a police van! As a result of our closer working relationship with West Yorkshire Police we have instigated a police Contact Point on our Head Office site where colleagues have the opportunity to talk to local police representatives about any questions they have, or concerns they wish to raise. These sessions have proved really popular with both our colleagues and the police and now take place on a monthly basis. Family Fun Day September 2012 saw us hold our first ever Family Fun Day, with employees given the opportunity to bring friends and family to their place of work for a fun-packed day! A range of activities took place to keep the kids entertained, including fairground games, a climbing wall and a bouncy castle. There was also the opportunity for young and old to put their creative skills to the test by making some handmade greetings cards. Detailed investigations and trend analysis following incidents has enabled us to tailor our areas of focus for 2013 with priority actions being given to where the greatest opportunities for improvement lie. Such areas include slips, trips, falls, cuts and grazes. All proceeds raised on the day were donated to our employees’ charities of choice and we are delighted that £2,561 was handed over to Cancer Research UK and Forget Me Not Children’s Hospice. Focus was given to our retail colleagues in 2012, that’s those working in store dressing displays in our customers’ stores, and our own retail stores. This is an area of focus we have already continued in 2013 as we continue to build our retail offering both on the high street and factory outlet formats. Staying Safe In 2012 we again continued the trend of accident reduction across our sites and those external sites where our employees worked. We saw a 4% reduction in the total number of accidents versus 2011, and whilst this is a positive trend we have more to do. When these numbers are actualised against the number of hours worked by our colleagues a small increase in the accident frequency is seen in comparison to 2011 as the graph shows. PECT Rep or t 2013 9 EC T Hallmark ReSP 3 Report 201 sustainability Our Vision is to minimise the impact on the natural world by making use of the earth’s resource in a responsible and sustainable way. Our Strategy through being a responsible employer we aim to increase the awareness of sustainability issues within our own workforce and communicate sustainable marketing messages to our retailers and consumers. 10 Our business is built upon the resources that the earth provides, and the future existence of our business depends upon these resources being readily available for years to come. Over the lunchtime period colleagues worked with local children from Heaton Primary School to plant the trees in woodland adjacent to the office. Each child that participated adopted a tree they planted and plan to visit each year to chart the tree’s progress and growth in comparison to the child. Forest Stewardship Council (FSC) Friday 2012 Yorkshire Water Sustainable Use of Resource Award We again supported this national event aimed at raising awareness of the principles of FSC amongst consumers and the next generation. We sponsored t-shirts used by FSC at national events run to promote FSC. Hallmark was invited by Yorkshire Water to enter the inaugural ‘Taking Responsibility for Business Awards.’ This provides a platform for Yorkshire Water to recognise the work undertaken by their customers in moving towards a more sustainable business model. Closer to home, colleagues arrived at our head office site to be greeted by tree-lined walkways into the building, generating an atmosphere of intrigue. Once inside they were met with information explaining the principles of FSC and how Hallmark work with FSC to promote responsible purchasing practices amongst consumers at retail. We were delighted to be recognised with the Sustainable Use of Resources Award, rewarding our efforts in sourcing and manufacturing with only certified well-managed materials for greetings card production, and educating others in sustainability messages via our community partnerships. Kevin Barefoot, Business Services Manager at Yorkshire Water said, “The Taking Responsibility for Business Awards recognise the exceptional work that our customers undertake day in, day out. Their proactive attitudes not only positively contribute to the sustainability of their business but to the sustainability of the Yorkshire region and a much wider supply chain.” Hallmark ReS H Responsible Sourcing The origins of the materials we use in our products is very important to us and we continue to maintain the momentum built over previous years in sourcing only FSC certified or recycled materials for the manufacture of greetings cards. All new product designs are now carrying the FSC trademark to demonstrate the sourcing credentials to consumers, and reprinted bestselling designs are having the trademark applied retrospectively where it is possible to do so. Internally we maintain a chain of custody portal that details the origins of every raw paper material we use for manufacturing products. This information details all W o o s ’ d k l and r a m la l PECT Rep or t 2013 information back to the tree species used for making the paper, and the information is used by colleagues when answering retailer and consumer questions about individual products. Woodland Management Hallmark is privileged to own an area of woodland adjacent to its head office site. We work in partnership with Bradford Environmental Action Trust and Belle Vue Girls’ School to manage the woodland and perform community, education and skills development activities with local groups. Images courtesy of Phil Matthews As part of the community programme we provide an area for the planting of trees gifted to people to celebrate special occasions, and those donated in memorial of a loved one. We dedicate special days when groups can access the woodland, and with our help, plant the trees they have donated. In 2012 we planted over 400 saplings as a result of this programme. 11 EC T Hallmark ReSP 3 Report 201 Business Performance Our Vision is to ensure a financially stable environment for all Hallmark employees, customers and suppliers via successful and profitable trading performances. Our Strategy is to provide emotive and trustworthy products that customers can rely on to help them celebrate life’s special occasions, however big or small they may be. 12 The economic performance of our business underpins everything we do within the organisation. We firmly believe that a responsible business is more likely to be a successful business Licensing Licensing continues to play an important role in Hallmark’s strategy and the portfolio of licences is impressive and varied. Hallmark has established strong relationships with the world’s leading entertainment licensors, led by Disney, Warner Brothers and Fox. Design led licences also play an important role, with the beautiful illustrations of Janet Hill and the photography of Deborah Schenk both inspiring highly successful ranges. There are now over thirty separate licence deals in place for Hallmark UK, plus many more solely for Tigerprint. Sales of cards featuring licensed properties represent 9% of Hallmark’s UK business, and our creativity and market insight put the company in a strong position to win hot new licences. Recent signings include the wellsupported revival of Teenage Mutant Ninja Turtles, plus photographic ranges from the RSPCA and Discovery Channel. At the centre of Hallmark’s portfolio is Forever Friends, the established favourite first launched twenty six years ago and is now an international hit for Hallmark with over 80 licensees worldwide and an impressive array of product from nightwear to jewellery, celebration cakes to bedding. In the UK, across cards and GP alone, Forever Friends actually generates more revenue for us than the rest of our licensed ranges combined! We also have a wealth of other classic designs and characters some of which have appeared in Hallmark’s new recently launched gift ranges including Baby Bellissima, Heritage Press and Sew Lovely to name but a few. Emily Button, the ragdoll brand created exclusively for Marks & Spencer, demonstrates our inhouse brand capability. A commercial success that has delighted Marks & Spencer, Emily marries traditional girl’s play patterns and crafting with modern family appeal and we’ve recently signed our first pan European license with plans to extend globally. 2014 will see this activity grow as we look at new ways to grow the Hallmark brand and utilize the exceptional talent we have within Hallmark. Consumer Insights We have a long standing commitment to consumer and shopper insight which is unique within the card market. We have a specialised Consumer Insight team of three who work solely on supplying employees with invaluable consumer information across all business areas. By interacting with 1000s of consumers every year we’re able to learn more about our consumers than ever; learning first-hand about their lives, families, relationships and celebrations. We’re also able to draw on US research which is another great resource enabling us to discover even more. Hallmark ReS PECT Rep or t 2013 “I’ve re Hallmarkaislly enjoyed blogging involved to doing a great job aand I feel lives. Gettin find out how we t getting and producg an understandingall live our ing cards th fi at relate trost hand us” Cons Types of Research We use a number of different methods and techniques to gather our insights. These include regularly tracking societal changes, studying brand awareness and perceptions, keeping tabs on changes in consumers’ shopping behaviour and creating a round-up of consumer focussed news stories among others. We also carry out family research which entails people from around the business ‘buddying up’ with consumers to spend time with them in a natural setting over the course of a month and involves video diaries and blog entries. How Are the Insights Used? We bring consumer insights & societal trends to life through the editorial and design of our products for example by using voices and vocabulary relevant to today’s lifestyles and consumers. We hold a unique advantage over our competitors because by working so closely with our umer Insig ht s p ar tic ipant consumers and immersing ourselves within their lives we’re really building an ‘emotions database’ to truly understand the deep connection sends, which we believe can be our key point of difference. Social Media Keeping connected is the essence of what we are all about, and that’s why we love talking to thousands of people every day on social media. Whether it is through Facebook, Twitter, YouTube or Google+, we love being able to have a conversation with people. For us it’s not as much about you hearing about us, but us wanting to hear about you, whether that’s through you writing to us or sharing pictures of what’s going on in your lives. That’s one of the great benefits of us working with a Hallmark community of Mum Bloggers. We get to understand what’s important in their lives, what makes them smile and equally what can drive them mad! Our Mum Bloggers are a wonderful panel who give us honest reviews on our products as well as inspire us and our social media community with stories of their lives. We also like to use social media to help us be creative, be it through our Creative Blog, competitions or partnerships such as when we teamed up with Twitter to create The Queen a birthday card created from tweets from all over the country. We created the hashtag #Happybirthdaymaam and asked the nation to share their favourite memory of Her Majesty. The card stood nearly 6 feet tall and was hand delivered to Buckingham Palace. It was not only an honour to create such a memorable card for such an auspicious occasion, but we also generated a huge amount of buzz online, and received coverage in 3 national newspapers. Text Santa Hallmark was proud to be the exclusive Christmas card partner for ITV’s Text Santa charity campaign. We joined forces to help raise funds from the sale of our packs of celebrity designed Christmas cards to make a difference to 6 fantastic charities. Gary Barlow, Emmerdale’s Matthew Wolfenden, Tulisa, The Saturdays as well as Daybreak’s Aled and Lorraine all got involved in designing a unique Christmas card for Text Santa in 2012. Their designs were joined by the winner of the Hallmark and Daybreak ‘Sketch Santa’ competition, which saw thousands of children send their Christmas card designs to Daybreak to sit alongside the celebrity cards. The cards were sold in Hallmark shops, Hallmark.co.uk and Asda. As a Text Santa partner, Hallmark gained primetime TV coverage seen by millions of viewers within our target audience, not to mention extensive coverage throughout the social media landscape and in the media, including Femail, one of the most read websites on a global scale. 13 EC T Hallmark ReSP 3 Report 201 Environment Our Vision is to achieve sustained reductions in the carbon emissions associated with our business and be recognised as leaders in the field of Environmental Management. Our Strategy is to minimise waste, reduce energy use, source our products responsibly and continue to promote environmental awareness internally and among our customers, suppliers and business networks. 14 In a modern environmentally conscious world, recognising our environmental impacts and acting to reduce these so far as possible is a key feature of the ReSPECT programme. War on Waste Waste disposal continues to be one of the major environmental impacts of our business and our continued resolve to improve this impact area has paid dividends in 2012. During the year we saw a further increase in the overall percentage of solid waste generated being recycled by the business. Our solid waste recycling measure now stands at 87.28%. Our waste improvement programme includes the continued education of colleagues and the search for new recycling outlets for previously nonrecycled materials. One such success story from the last 12 months is glossy label backing paper that we have previously struggled to secure a recycling outlet for. Working with our recycling partner we have now found an outlet for this and in 2012 we recycled approximately 36 tonnes of this material. We have successfully reduced the volume of general waste generated by the business by a further 12% in the last 12 months. General waste volumes in 2012 were recorded at 550.37 tonnes, compared to 626.82 tonnes in 2011. Every Drop Counts It is only a little over 12 months since drought-like conditions were prevalent through much of the country and at Hallmark we believe we have an important role to play in minimising the water stress placed on communities. We achieve this by promoting water efficiency amongst colleagues and implementing water saving technologies where it is possible to do so. In 2012 we successfully reduced water use across our 3 operational sites by a combined 7.7% in comparison to the previous year. This builds on our previous Hallmark ReS PECT Rep or t 2013 In 2012 we successfully reduced water use across our 3 operational sites by a combined 7.7% in comparison to the previous year successes and beats the target of 5% we set ourselves. We aim to further build on this in 2013 and have set ourselves the target of reducing this by 2% over the course of this year. Our strategy for achieving these continued reductions is one of using consumption data to highlight trends and peaks in consumption and really begin to understand why these occur. Once we have built an understanding of these trends we will then look to utilise simple technologies such as flow regulators to reduce consumption further. Managing Consumption We continued working with our crossfunctional Utilities Review Team in 2012 on a number of energy efficiency initiatives including installing occupancy sensors to all individual offices at our production site. We replaced further old and inefficient T12 lighting in our samples areas in favour of more modern T5 alternatives. We conducted a full review of our compressed air systems during 2012 and carried out repairs and maintenance on all detected leaks and defects, which we expect to result in savings in the region of 300,000Kwh. Whilst total electricity consumption in 2012 increased by 2% in comparison to 2011 usage, our consumption since 2009 remains 13% lower. It is our objective to regain the momentum in 2013 and drive further energy reduction measures. 15 EC T Hallmark ReSP 3 Report 201 community Our Vision is to create a positive impact on communities and charities in all areas in which we operate beyond. Our Strategy is through a combination of volunteer programmes, donations, partnerships and regeneration projects we will create a positive impact in all communities we touch. We will increase our work with the community and charities each year by encouraging our people, partners and suppliers to participate in all the programmes, schemes and projects we are involved in. 16 As a major employer we recognise the positive impact we can make on our communities and people’s lives. We believe that the care and sentiment that is embedded within our products crosses over into the relationships we have with local communities. Christmas in the Community so beautifully presented, which has saved us a lot of work!” Caroline Heward; Corps Christmas can be a real time of hardship and loneliness for many in our communities. At Hallmark we are all about celebrating the occasion and believe we have a role to play in extending the festive cheer to those less fortunate than ourselves. Christmas 2012 saw us partner with the Salvation Army in Bradford to provide Christmas presents to 30 teenagers. Officer – The Salvation Army. The Team at our Operations site held a raffle and raised money used to buy presents, and enough money was raised to make a cash donation of £220 as well. “I am truly amazed by what your team at Hallmark have done for us. For a number of years we have partnered with companies like this for Christmas gifts, but this has truly been the most generous we have seen! Thank you for the way in which each gift was Surplus Product Give Away communities that work on issues that they tell us are most important. Working in this targeted way enables us to focus our efforts on the things that can make the biggest difference. Like any other trend-led business we face a battle with surplus stock as consumer tastes change year-on-year. Whilst we have become more accurate at forecasting production volumes to ensure the volume of surplus product is minimised, there will always be some product that remains surplus to requirements. Charity Fundraising As such, we have a redundant product giving programme that offers local charities and community groups the chance to be the benefactors of product donations to use for fundraising and art & crafts sessions. In 2012 we were able to provide product donations to 125 different organisations worth a collective value of £9,926. Forget Me Not Children’s Hospice work locally by providing a range of respite and end-of-life care for families with sick children in the West Yorkshire area. Like all our community activity, we focus on helping those organisations in our local Our 2012 employee nominated charities are two very worthy causes. Cancer Research UK, who work nationally at the leading edge of cancer treatments and increasing our understanding of this truly awful disease. During 2012 our colleagues participated in a range of fundraising events from 5-a-side football and sponsored walks, to product sales and raffles. Through a diverse range of engagement opportunities our colleagues generously raised £11,529.92, surpassing our target of £10,000. Hallmark ReS Community Volunteering We believe passionately that we can play a lead role with local communities in sharing our resources and expertise for the collective good, and that this is mutually beneficial for both Hallmark and our communities. With this in mind we remain committed to providing every employee with 1-day’s paid leave per year to participate in community volunteering activities that work towards the achievement of our community strategy. In 2012 we had 231 employees participate in community volunteering activity, an increase of 65% versus 2011. Here are some examples of what colleagues have been involved with in 2012: Forget Me Not Garden 2012 saw us sponsor a show garden at the BBC’s Gardeners’ World Live Event. We partnered with local gardening enthusiast Erica Ward to create the garden, and worked with Erica after the show to ensure the garden had a longer-term use. We identified an area within the grounds of the Forget Me Not Children’s Hospice to recreate the garden, and engaged a group of volunteers from our Distribution Centre to complete the recreation. This opportunity provided the perfect extension to our employee nominated charity partnership (see above) and received glowing feedback from Kate Goldring; Fundraising Manager at the hospice, “It’s looking great. Thank you for your support.” Bringing Cheer to the Children’s Ward Our creative licensing team worked with the Children’s Ward at Bradford Royal Infirmary to run creative sessions for children staying in hospital. Our team took over the on-ward playrooms for a day armed with a range of materials from the studio to use for the session. The children, and their parents, had an opportunity to get creative and make a range of handmade cards and gifts, with our creative colleagues on hand to offer expert guidance. The sessions were enjoyed by all and offered a welcome break from the routine of a hospital stay. Sharing our Story Our position as industry leaders in a number of areas including environment and sustainability gives us a great opportunity to share our story with others and inspire them to follow our lead. Over the last 12 months we have worked with both undergraduates and postgraduates at The University of Leeds and The University of Bradford to help them understand the environmental challenges a business like ours faces. This forum provides the students with a link between text book theoretical learning and real world business examples to which to apply their learning. The sessions were well received with the last University of Leeds session returning feedback that said 95% of the delegates PECT Rep or t 2013 enjoyed the session and learnt something new. Emerge Emerge are a local youth work support organisation that work with children and youths to inspire them to improve their lives. Working in many of the toughest areas of the city to deliver vital programmes their support services are used by some of the city’s most challenged youngsters. In 2012 a team of Hallmark colleagues worked with Emerge to bring some much needed stimulating colour and vibrancy to the Emerge building by planting a roof garden on top of storage containers. The challenge made use of waste wooden pallets from our production site, which were lined and filled with compost before being planted with a range of colourful perennials. 17 EC T Hallmark ReSP 3 Report 201 Trading with integrity Our Vision is to create a dynamic supplier base capable of meeting the needs of Hallmark, its customers and their customers. Our Strategy is to foster partnerships that enhance our suppliers’ capabilities by inspiring innovation and continuous improvement, supporting management system development and transparency, communicating best practice, encouraging training, and promoting knowledge transfer. 18 We realise that the impact we can have within our own organisation is limited to the size of the workforce. There is a greater opportunity to positively impact people’s lives by working with our supply base world-wide. Monitoring Supplier Performance Supply chain performance and transparency have certainly been high on the agenda for both business and the public over recent months. Hallmark has a robust management system for managing suppliers and their performance that is driven through the Supplier Ethical Data Exchange (SEDEX). We require every finished product supplier to be members of SEDEX and regularly monitor lapsed membership amongst our supplier base, encouraging suppliers to continue engagement with this tool where necessary. We further monitor the level of completion of the Self-Assessment Questionnaire (SAQ) completed in the SEDEX system by the supplier. Information submitted forms an integral part of risk assessment of the supplier, which in turn drives the level of support offered to the supplier by Hallmark to develop their own management systems. During this process we look for suppliers to have a 95% minimum completion level of the SAQ. On-going monitoring of supplier performance uses details of actions raised during 3rd party audits of the supplier sites to drive continual improvement. We regularly report on actions raised and chart the progress towards closing any actions raised in a timely manner. We ensure that improvements are made immediately in the period after audits where issues are raised, as opposed to waiting for the next audit cycle to demonstrate improvements. Hallmark ReS ELEVATE Metric Managed Service (MMS) Programme Together with ELEVATE, a global leader in social performance solutions, we have adopted a metrics and Key Performance Indicator programme to provide better, more timely visibility into factory performance versus the traditional audit only model favoured in many supply chains. The programme in its pilot phase lasts for 15 months and focuses on 4 key areas that include: - Training & Education Onsite Expert Support Data Collection & Analysis Peer Review 7 Performance Improvement To date we have 3 core suppliers that are part of the MMS programme and are demonstrating improvements in key impact areas. It is our intention to use these suppliers and the improvements they make as case studies for encouraging further suppliers to become part of the programme throughout 2013. Rewarding our Best Suppliers To minimise the risk to both the Hallmark brand and those of our retail customers we adopt an approach that maximises the volume of product manufactured in our premium suppliers. PECT Rep or t 2013 In 2012 our target of placing 85% of production volume through ‘A’ grade suppliers was surpassed, with 93% of production volume being placed with these suppliers. This represents a further increase on the 92% achieved in 2011. Our experience shows that the prospect of receiving additional orders is incentive enough to encourage suppliers to continue performance improvements. This further rewards these suppliers for the improvements they have made in their management practices over the years. “ELEVATE is pleased to partner with Hallmark to track and manage important business and social indicators at select Hallmark suppliers in China. The KPI tracking program provides tremendous insight into the business and social issues that Hallmark suppliers are trying to manage. The project forms a great foundation for Hallmark to work more proactively with these suppliers to help address issues before they become problems. This proactive and innovative programme is helping Hallmark and its suppliers better manage environmental, social and business performance more effectively.” Ian Spalding – Senior Partner; ELEVATE 19 Hallmark are FSC certified to produce greetings cards on FSC Mixed papers. Hallmark Cards PLC, Bingley Road, Heaton, Bradford BD9 6SD Tel. 0800 902 0900 | www.hallmark.co.uk
© Copyright 2024