Corporate Governance - Board Policies

Board Policies

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Ethics and Business Integrity Policy

The Board remains committed to maintaining high standards of ethics and business integrity throughout the organisation recognising this to be essential to both Group performance and reputation.

Carillion is committed to the preservation of its reputation and integrity through compliance with applicable laws, regulations and ethical standards across all territories in which it operates. Carillion's clear and unequivocal approach to business integrity and ethics underlies the Group's core values.

The Ethics and Integrity Policy is designed to ensure that Carillion conducts its business to the highest ethical standards. The Ethics and Business Integrity Policy sets out the standards and behaviours that all Carillion employees are expected to meet wherever in the world we operate.

The way Carillion delivers this policy is reflected in the way the Group competes for business and delivers its services, focused on quality, value for money and the reliability and reputation of its employees.

Our policies

Prohibition of fraud, bribery and corruption. Carillion takes extremely seriously the prevention and detection of fraud, bribery and corruption and any other fraudulent or corrupt activity. It will not tolerate them in any form. The Board is fully committed to promoting a zero tolerance approach across the Carillion Group. There is a Fraud Policy in existence.

Gifts and hospitality. It is prohibited for a Carillion employee to offer or receive gifts or hospitality that could influence or be perceived to be capable of influencing the outcome of transactions or decisions relating to Carillion's business. There is a Gifts and Hospitality Policy. Insider trading. Those who have access to inside information are advised of their responsibilities under the insider dealing rules. There is a Carillion Insider Dealing Code.

Conflicts of interest. All Carillion employees must disclose or seek direction on any issues that could potentially conflict with their responsibilities to the Company. There is a Conflicts of Interest Policy.

Ethical procurement. Carillion seeks to ensure that it maintains its ethical standards and behaves respectfully when working with others. The relationships with Carillion's suppliers and business partners are based on the principle of fair and honest dealings at all times and in all ways. Carillion expects its suppliers and business associates and joint venture partners to extend the same high standards to all others with whom they do business, including employees, sub-contractors and other third parties. There is a Purchasing and Supply Chain Code of Ethics and a Sustainable Supplier Charter.

Competition. Carillion plc, its subsidiaries and associated companies under Carillion control have a policy that all business activities are carried out in full compliance with competition laws - the laws which prevent anti-competitive behaviour. Competition law prevents companies from carrying out any activities that restrict competition and makes illegal activities such as price fixing, unfair pricing, market sharing and refusal to supply customers. There is a Competition Compliance Guide.

Money laundering. Carillion aims to maintain high standards of conduct by preventing criminal activity through money laundering. There is a Money Laundering Policy.

Respect for Human Rights. Carillion supports the belief that human rights are universal and adheres to the principles of human rights in its operations. Carillion supports the United Nations Declaration on Human Rights and works hard to ensure that in all areas of interaction with its employees, clients, suppliers, third parties, interviewees and joint venture parties that everyone is protected and treated absolutely fairly. Carillion has a Health & Safety Policy and an Equal
Opportunities and Diversity Policy. Law and regulation. Carillion respects the rule of law in all our dealings and has minimum standard compliance with all law and regulation to which its businesses are subject. Carillion has legal compliance programmes for:

  • European Union and United Kingdom Competition Laws
  • Bribery Act 2010
  • Canadian Criminal Code C46
  • Corruption of Foreign Public Officials Act (Canada).

Ethics and Compliance Office. As a response to the introduction of the Bribery Act 2010, the Ethics and Compliance Office was established in 2010. This Office reviews and monitors compliance and ensures that Carillion maintains high ethical standards. It reports to the Business Integrity Committee on key global compliance risks and functional activity.

Reporting, disclosure and whistleblowing. All of Carillion's employees have a responsibility to protect Carillion's assets, including information and goodwill as well as property. Carillion encourages its people to raise genuine concerns about malpractice at the earliest possible stage and in the right way. There is a Whistleblowing Policy and an Ethics and Business Integrity Incident Response Plan.

This Ethics and Business Integrity Policy is applied by all Carillion's businesses through a series of detailed procedures. They allow Carillion to carry into practice its reputation for conducting business to the highest ethical standards, which are essential to its relationships with customers, businesses partners, employees, shareholders and the public. The detailed procedures reflect the way Carillion competes for business; through the quality and value of its work and through the reliability and reputation of its people.

The Ethics and Business Integrity Policy is overseen by the Business Integrity Committee, and its implementation is reviewed annually by the Board.

Policy on external appointments

Recognising that external appointments can broaden experience and knowledge and so be of benefit to the Company, Executive Directors are permitted, at the discretion of the Board, to accept a limited number of such appointments and retain the fees received for such appointments.

Neither of the Executive Directors currently holds an external appointment.

Nomination and remuneration of Directors

The appointment of a Director is a matter for resolution by the Board as a whole, taking advice from the Nominations Committee.

For the Board appointment of Alison Horner, the Nominations Committee has used the services of the executive recruitment consultants, the Lygon Group. Details of potential candidates are provided by the consultants and initially reviewed by a sub-committee of the Nominations Committee. Meetings with selected candidates are then held with the Directors.

Subsequently, the Nominations Committee meets to recommend an appointment, which is then proposed to the Board for approval. The fees of Non-Executive Directors are determined by the Board as a whole, taking into account the commitment required and participation in the work of committees and other advisory services in relation to the business of the Group.

In advising the Board on such fees, it is the policy of the Executive Directors to seek independent external advice concerning the appropriateness of the amounts by comparison with general practice. The level of fees currently payable to the Non- Executive Directors is based on independent external advice.

Retirement of Directors

In accordance with the UK Corporate Governance Code, all directors submit themselves for re-election at the Annual General Meeting.

The service contracts of the Executive Directors and the terms and conditions of appointment of the Non-Executive Directors are available for inspection at the registered office of the Company during normal business hours on any weekday (bank holidays excepted) and at the Annual General Meeting.

Induction and development of Directors

Directors are provided with a comprehensive information pack on joining the Company and are advised of their legal and other duties and obligations as a director of a listed company. In addition, all new Directors receive induction on their appointment covering such matters as the operation and activities of the Group, the role of the Board and the Company's corporate governance procedures.

Directors are also briefed by the Company's external advisers, where appropriate, on changes to legislation or regulation or market practice as well as receiving briefings from business units throughout the year. The regular updating of Directors' skills and knowledge is encouraged, including in relation to environmental, sustainability and governance matters, and a procedure has been established whereby the Company Secretary is notified by Directors of their requirements in this respect.

Training for Directors is kept under review during the year.

Relations with shareholders

The Executive Directors and the Director of Group Corporate Affairs meet regularly with representatives of major shareholders in order to foster the mutual understanding of objectives. Meetings are also held with other shareholders and prospective shareholders.

The details of these meetings are reported to the Board. The Chairman and Senior Independent Non-Executive Director are available for meetings with representatives of major shareholders as required. The Chairman and Company Secretary have also met with major shareholders and fund managers to discuss governance matters.

Private and institutional shareholders are encouraged to attend the Company's Annual General Meeting. The Company complies fully with the provisions of the UK Corporate Governance Code in respect of the notice, content of agenda and conduct of its Annual General Meetings. The Chairmen of all the Board Committees will be present at the Annual General Meeting on 7 May 2014 to respond to shareholders' questions.

Policy Downloads (PDF)
Ethics and Business Integrity Policy
Equality and Diversity Policy