Barratt Developments PLC – Annual report – 30 June 2020
Industry: real estate
Section 172(1) statement
On the following pages we have set out how the Board has acted in a way that promotes the success of the Company for the benefit of its members as a whole, in accordance with the requirements of the Companies (Miscellaneous Reporting) Regulations 2018, whilst having regard to the following matters set out in s.172(1) of the Act:
- the likely consequences of any decision in the long term;
- the interests of the Group’s employees;
- the need to foster the Group’s business relationships with suppliers, customers and others;
- the impact of the Group’s operations on the community and the environment;
- the desirability of the Group maintaining a reputation for high standards of business conduct; and
- the need to act fairly as between members of the Company.
This reporting requirement applies to the Company for the first time this year. However, we did include a comprehensive section 172(1) statement and stakeholder engagement disclosure in our Annual Report and Accounts for FY19.
We understand that it is important for the business at all levels, including the Board, to engage with its shareholders and wider stakeholder groups. By engaging with our stakeholders we gain a better understanding of what areas they are interested in or concerned about and also how our decisions have impacted them. Healthy engagement with our stakeholders underpins our governance framework, which is embedded throughout our business and helps to ensure we maintain high standards of business conduct. The Executive Directors update the Board on a regular basis on stakeholder engagement and wherever possible, members of the Board will engage directly with our stakeholders. Engagement with shareholders and other stakeholders supports the Board’s regard to the likely consequences of any decision in the long term, as explained further in the business model on pages 30 to 31, Key activities of the Board on pages 89 to 91, Sustainability focus areas on pages 36 to 37, Safeguarding our Environment pages 68 to 70 and throughout our Strategic priorities and principles on pages 50 to 70.
The Board appreciates that there may be situations where conflicts will arise between different stakeholder groups. In such circumstances, the Board will seek to understand the needs and priorities of each stakeholder group during its discussions and as part of its decision making process. It will manage any such conflicts by assessing shareholder and stakeholder interests from the perspective of the long term sustainable success of the business.
COVID-19, the associated lockdown and subsequent business restart, required the Board to act swiftly and decisively (see pages 8 and 12 for more information). The Board remained mindful of the implications that their decisions would have on our stakeholders. This highlighted the continual need for regular clear and comprehensive engagement with our stakeholders throughout the decision making process.
The next few pages set out how we have engaged with, and taken into consideration, the interests and concerns of our stakeholders who are material to the long term success of the business. These stakeholders continue to represent the key resources and relationships that support the generation and preservation of value in the Group, as well as our culture of openness and communication.