CSR & Governance
Policies

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Policies

Key Business Principles
Health and Safety Mission Statement
Alliance & Leicester Group Charities Policies
Equal Opportunities
Bullying
Harassment
Disciplinary
Privacy
Freedom of Association/Collective bargaining
Forced & Child Labour
Human Rights and Indigenous Rights
Creditor Payment Policy
Environmental
Non-Audit Services Policy
Supplier Engagement and Management Policy
Our Ethical Stance
Standard supplier terms and conditions

Key Business Principles

The Alliance & Leicester has clear business values and standards of conduct communicated in several statements. The following is a set of Business principles which summarises and highlights some of the key messages on the way we do business.

1. Our Aims

The Alliance & Leicester Group's vision is to deliver value to our shareholders by becoming the UK's most customer focused financial services organisation - bar none.

2. Our Customers & Our Reputation

• Our reputation as a secure, customer focused financial services institution is based upon prudent management of our assets and the provision of a range of products and services which meet our customers' needs and offer value for money.
• Earning and retaining the trust and confidence of our customers must be a high priority for us as we believe this is essential for providing and sustaining long term profitable relationships with them.
• We aim to provide the highest standards of customer service treating each customer as an individual. Complaints will be resolved as expeditiously as possible and we will seek to learn from our mistakes.
• The information we give to our customers should be in a clear and readily understandable form.
• We will not risk the Group's reputation by knowingly associating with people or organisations or products or transactions which could potentially damage that reputation.
• We are positive about complying with our legal and regulatory obligations - this protects our customers, our shareholders and ourselves.

3. Our Shareholders

• Our single overriding objective for our shareholders is enhancement over time of the value of their stake in the Group.
• If we do all we can to preserve and enhance the reputation of the Group our shareholders will in turn value their relationship with us.
• We recognise the importance of safeguarding the assets of the Group.

4. Our Staff

• We value our staff and will help them to maximise their potential by developing relevant knowledge and skills in order to support and promote the Group's performance.
• Each member of staff has a personal responsibility to contribute to the Group's success and reputation by carrying out his or her job conscientiously, efficiently and honestly and maintaining the highest standards of integrity and personal conduct in all matters which affect the Group.
• We aim to recruit the most appropriate person for each job and create an environment and remuneration policies that encourage and reward productivity, innovation and creativity.
• We seek to provide a clean, healthy and safe working environment for our staff.
• We seek to provide job satisfaction and equal opportunities for our staff and will not tolerate harassment, bullying, discrimination or victimisation at work.
• Teamwork and shared values are vital and personal interests must never come before the interests of the Group and its customers.
• Consistent with the highest standards of integrity we do not countenance the solicitation or acceptance of hospitality or gifts which may be mistaken for an inducement nor do we countenance use of information received in the course of our business dealings for personal gain.
• We provide the means whereby staff can report any suspicions of wrongdoing to senior management or to our Internal Audit and Compliance Departments which have access to information and receive co-operation from our staff.

5. Other Business Relationships

We seek business relationships which :

• support our standards of service quality and efficiency;
• support our customer focused objectives; support the profitable growth of our business;
• support our business principles and our community involvement and environmental objectives
• are mutually beneficial and lead to success through fair dealing and high standards of business integrity.

We will normally seek competitive proposals from suitable suppliers. We do not knowingly do business with organisations or bodies which are involved in the abuse of human rights.

6. Our Relationships With The Community

• We recognise our wider social responsibility in terms of the contribution we can make to the well being of the communities in which we operate. We seek to support those communities through the volunteering efforts of our staff and our charitable giving and sponsorship activities.
• We do not make donations to political parties.

7. The Environment

• We recognise that Alliance & Leicester has a responsibility to act in a way that respects the environment.
• We will invest in environmentally friendly and sustainable products and services wherever it is practical to do so.
• We will minimise energy usage, encourage energy efficiency and promote waste minimisation and environmentally friendly waste disposal.

8. Security

• We remain constantly alert to the potential risks to the security of the Group's staff, its customers and its property and seek to ensure that standards of security are continuously reviewed.
• We will take all appropriate steps to safeguard the Group's physical assets and to deter crime.

9. Maintaining Confidentiality

• We attach great importance to safeguarding the confidentiality of data concerning the Group and its customers and other business relationships.
• We never disclose information about the Group's customers to third parties without the customer's consent (unless there is a clear legal or regulatory obligation to do so).

10. Compliance With These Business Principles

• These principles have been communicated to all employees and adherence will be monitored.The principles are published on the Group's intranet.
• The principles are reviewed on an annual basis by the Company Secretary.

Health and Safety Policy

The Executive Directors of Alliance & Leicester plc accept their responsibilities under the Health & Safety at Work Act 1974 for ensuring the Health & Safety of their employees and of any people entering our premises.

It is the policy of the Alliance & Leicester Group to provide a safe and healthy working environment for our staff, our customers and our contractors.

We believe the provision of a safe and healthy working environment is a positive business investment and we will seek to achieve Health & Safety Excellence through statutory compliance.

To achieve our goal we have developed a formal Health & Safety Management System for application across the group.

Our Management System will ensure significant risks are identified, assessed and controlled through the provision of effective working standards for Health & Safety.

Implementation of our Health & Safety Management System is a line management responsibility and accountability will be fixed at every level.

Every member of staff across the group also has a personal responsibility to take reasonable precautions to ensure their own Health & Safety and that of others.

Health & Safety excellence will therefore be achieved through the collective responsibility and co-operation of our managers and staff.

We rank Health & Safety equally with other corporate objectives and we will routinely monitor and review our Health & Safety performance.

Alliance & Leicester Group Charities Policy

Aims

As a major company and employer, Alliance & Leicester is committed to supporting the communities in which it operates. This support is provided through charitable donations, community sponsorship activities and staff volunteering efforts.

Policy criteria

• Supporting our staff's efforts in raising money for charity through the Group's Matched Donation Scheme.
• Supporting initiatives aimed at improving both local and national education.
• Supporting organisations who help those who are experiencing financial difficulties.
• Supporting charities and organisations within the local communities in which our staff live and work.
• Supporting organisations who aim to improve the links between businesses and the communities in which they operate.

In applying these criteria

• We will support selected charitable causes which are in line with our Group's aims. These are likely to include housing, education, families, and financial inclusion as well as other projects which impact on the Group's customer or employee base.
• We will encourage volunteering efforts in the communities in which we operate, linking with organisations that promote "partnerships" between businesses and the community (e.g. Business in the Community and Cares Incorporated).
• We will consider sympathetically requests for our branches and cash handling services to be made available for collecting donations destined for national and regional appeals.
• In supporting educational initiatives, we will in particular look to support those with an emphasis on financial literacy.
• Our policy precludes donations to animal charities, or specific religious ethnic or political groups.

Staff-Related Policies

Equal Opportunities

The Group is committed to the establishment of a competence and performance-based employment philosophy. The Group recognises the potential that all people bring to the workplace regardless of sex, race, ethnic or national origin, age, religious belief, marital status, disability or sexual orientation.

As part of that philosophy and in keeping with our values, the Group believes that every employee should be treated with the same respect and dignity. The Group positively encourages a culture that supports equality of opportunity.

Bullying

The Group recognises the right of every employee to be treated with respect and dignity and is committed to providing a working environment that is free from bullying.

The Group will not tolerate bullying in the workplace, either as a management style or between work colleagues, and will take disciplinary action against any employee who bullies others.

Harassment

The Group recognises the right of every employee to be treated with respect and dignity and is committed to providing a working environment that is free from harassment.

The Group will not tolerate harassment in the workplace and will take disciplinary action against any employee who harasses others.

Disciplinary

The success of the Group depends to a large extent on the ability of its employees to achieve and maintain acceptable standards. The Group therefore encourages employees to adopt a responsible attitude to work, encompassing self imposed discipline, to help it operate effectively.

The main aim of the Group's Discipline policy is to be corrective rather than punitive and it is in line with the ACAS Code of Practice on discipline at work. It sets reasonable standards of performance and behaviour and aims to ensure consistency and fairness of treatment of all employees when these standards are not met.

Privacy

The Group's policies comply with the Data Protection Act and has stringent policies on the protection of customer privacy, conforming to standards set by the voluntary banking codes and legislation.

Our research has shown that customers rank "privacy" as one of their major issues when dealing with their bank. Reflecting this, we regularly monitor how our customers rate the privacy they get when dealing with Alliance & Leicester, and their responses feed directly into our formally monitoring of our customer service performance.

Freedom of association/ collective bargaining

Alliance & Leicester recognises a number of trade unions for collective bargaining purposes.
We enjoy good relations with our recognised unions and endeavour to involve their representatives at all levels.

Forced and child labour

All of our operations are based in the UK, and our products are aimed at UK-based customers or ex-patriates. We are not involved in forced or child labour.

Human rights and Indigenous rights

All of our operations are UK-based, and all of our products are aimed at UK-based customers or ex-patriates. In this context, Human Rights and Indigenous Rights issues are not significant for the Group, nor does our behaviour significantly impact on such issues.

Creditor payment policy

The Group is a signatory of the DTI's Better Payment Practice Code.

Information regarding this code and its purpose can be obtained from the Better Payment Practice Group's website at www.payontime.co.uk.

It is Group policy to:

• agree the terms of payment at the start of business with that supplier
• ensure suppliers are aware of the payment terms
• pay in accordance with any contractual and other legal obligations.

Our Ethical Stance

Alliance & Leicester is both an ethical and responsible lender. In all our business activities we will not risk the Group’s reputation by knowingly associating with people, organisations, products or transactions which could potentially damage that reputation.

We are a member of the FTSE4Good index. Our membership of this index is dependent on an assessment of the company’s Corporate Social Responsibility practices based on the principles of Socially Responsible Investment (SRI).

We aim to ensure that any money lent is used for a reputable purpose and can be repaid by the customer. Our lending policies comply with all the appropriate regulatory standards and industry codes of practice and we also work closely with the police and other agencies to ensure we do not facilitate fraudulent or illegal activities.

Underpinning all of the Group’s policies and procedures are our key business principles. These principles set out our position on each issue and each external stakeholder including customers, staff, business relationships, security, the local community and the environment.

Customers, suppliers and investors are increasingly asking how their money is invested, and in many cases want to ensure that it is managed in an ethical manner. Looking at each of our core product areas, we can assure stakeholders as follows:

• Our personal and corporate customer deposit balances are primarily used to fund UK residential mortgage lending.
• We do not manufacture life assurance or long term investment products. These products are provided by Legal & General, which has its own socially responsible investment guidelines.
• Our Treasury operation does not invest directly in emerging markets, venture capital funds and over 97% of its exposures are rated single 'A' or above.
• Each of our lending applications is considered in their own right but take account of the following:
  • We will not knowingly invest in any business involved in the manufacture or transfer of armaments to oppressive regimes.
  • We will not knowingly invest with any business involved in the manufacture of torture equipment or other equipment that is used in the violation of human rights.
  • We will not knowingly invest with any government or company which fails to uphold basic human rights within its sphere of influence.
  • We do not participate in financing Sovereign debt to Third World countries.
  • We will not invest in any company involved in the unauthorised development of genetically modified organisms.
  • We will not support currency speculation.
  • We will not lend to any individual entitled to claim diplomatic immunity.
  • We will not lend to any individual who we know to have an unspent criminal conviction.