The process of increasing transparency and accountability of UK boardrooms for corporate governance now stretches far wider than financial controls to encompass all strategic risk. The Combined Code appended to the London Stock Exchange listing rules in 1998, was subsequently supported in 1999 by the publication of Internal Control: Guidance for Directors on the Combined Code, otherwise known as the 'Turnbull' report. The guidance is based around the suggestion that organisations should adopt a risk-based approach to establishing sound systems of internal control, and review the effectiveness of application on a regular basis.

Another factor was the introduction of a Statutory Instrument, which brought about a change in the required content of Statements of Investment Principles for UK pension funds and came into force in July 2000. This Regulation, which refers to Section 35(3)(f) of the Pensions Act 1995, provides that pension fund trustees should include statements on Socially Responsible Investment (SRI), including voting policy.

Although the group has no official standing, a sub-committee of the Corporate Governance Forum, consisting of UK institutional investors who are active in corporate governance and meeting informally, on a bi-monthly basis; during 2001 the group developed best practice with regard to such issues as social, ethical and environmental matters.

It is the target of Carillion to see a steady increase in the representation of Carillion stocks in pension funds adopting positive SRI policies and to feature more in the growing number of specialist funds which cater for the needs of investors with particular social and ethical objectives.

Carillion is listed in the FTSE4Good UK index.

The Government and the Health and Safety Commission recommended a series of measures for the improvement of health and safety performance in their report 'Revitalising health and safety at work' ('Revitalising') (HSC/DETR, 2000). A particularly significant recommendation in 'Revitalising' was specifically aimed at large organisations, including the FTSE listed companies and all Government and Public Sector employers. The Chairs/Chief Executives and boards of 350 of the UK top companies, have been formally challenged by Michael Meacher, Minister of State, DETR, and Bill Callagan, Chair of the HSC, to include, in annual reports, information with regard to the management of health and safety risks faced by employees and others (including members of the public), who may be affected by activities, for which the given company is responsible, using a standard agenda in the HSC guidance.

A fundamental challenge is that of enhancing competence of organisations (and in particular that of managers), to address health and safety as an integral part of business management. Strengthening the leadership role and the influencing of board level directors will be of particular importance (RoSPA, 2001).

The HSC Agenda does not introduce any new concepts or require unreasonable disclosure of performance. For organisations which are currently successful in achieving high standards of health and safety, the new imposed requirements are likely to be deemed as normal practice, as effective policies and the means to demonstrate how these contribute to business performance will already be in place. The main issues to be addressed will include: