Barratt Developments PLC – Annual report – 30 June 2022
Industry: real estate
Section 172 statement
In accordance with the requirements of the Companies (Miscellaneous Reporting) Regulations 2018, we have set out, on the following pages, how the Board has acted in a way that promotes the success of the Company for the benefit of its members as a whole, 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.
We understand that it is important for the business at all levels, including the Board, to engage with its shareholders and wider stakeholder groups. Such engagement helps us to 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. Engagement with our 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 12 to 13, Key activities of the Board on page 79, Building sustainably on pages 20 to 23 and throughout our Strategic priorities on pages 24 to 33.
The following pages set out the engagement that has taken place with those stakeholders considered as being key to the business. The Board has identified each of them as a key stakeholder due to their influence on the success of our business model and our strategy and because they represent the key resources and relationships that support the generation and preservation of value in the Group. For each key stakeholder we have set out:
- Why we engage;
- How we engage;
- Metrics – how we measure effectiveness;
- Interests and concerns;
- Outcomes of engagement; and
- The impact on Board decisions.
How the Board makes decisions
Throughout the year, the Board remained mindful of the implications that its decisions have on our stakeholders as well as potential reputational risk for the Group. This has highlighted the continual need for regular, clear and comprehensive engagement with our workforce, suppliers, shareholders and customers throughout various decision making processes to ensure that we continue to do the right thing and protect the reputation of the Group. Regular updates on the engagement undertaken and the outcomes are provided to the Board by the Executive Directors and there is an annual agenda that includes deep dive discussions on topics such as Diversity and Inclusion, ESG, Customers, and Investor Relations. Whenever possible, the Board will engage directly with our stakeholder groups.
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 manages such conflicts by assessing shareholder and stakeholder interests from the perspective of the long term sustainable success of the business, as is illustrated in the significant decisions set out on page 40. Such actions and decisions by the Board represent the Group’s culture of customer focus, resilience and adaptability. In addition, the Board ensures that our culture encourages our wider workforce to take pride in what we do, and to do the right thing when in contact with customers, members of the local communities in which we operate, and other stakeholders.