CORPORATE SOCIAL RESPONSIBILITY 2017-18 REPORT
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macphie.com | Macphie Corporate Social Responsibility report 2017/18
Macphie Corporate Social Responsibility report 2017/18 | macphie.com
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CONTENTS A message from our Chairman
05
Executive summary
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Who we are
07
Environment 10 People 14 Communities
18
Looking to the future
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macphie.com | Macphie Corporate Social Responsibility report 2017/18
The growth of Macphie is focused on achieving stable and profitable growth that secures jobs and creates wealth in the local area, rather than maximising short term returns for shareholders. Leading this organisation is about preserving and extending a legacy of responsible ownership of the family enterprise. Macphie Family Constitution
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A MESSAGE FROM OUR CHAIRMAN
EVERY DAY, EMPLOYEES WORK TOGETHER TO PRODUCE THE QUALITY MACPHIE INGREDIENTS USED BY CHEFS AND BAKERS ACROSS THE WORLD.
This does not happen in isolation and we recognise the impact our business has on the people and places around us. Corporate social responsibility (CSR) is our continuing commitment to behave ethically and contribute to economic development while improving the quality of life of our workforce and their families as well as of those in the local community and society at large. Leading this organisation is about preserving and extending a legacy of responsible ownership of the family enterprise. For the first time, we have recorded our CSR activities in this annual report to reinforce our status as a responsible employer, business and neighbour. We are incredibly proud of our B Corporation certification, linking us to a community of over 2,000 organisations committed to using business as a force for good.
This ambition has always been embedded within our workforce but our certification offers a stamp of approval and reassurance for our stakeholders that we’re doing the right thing. We hold a long term view of the future sustainability of our business and aim to operate in such a way as to prevent pollution and minimise our impact on the environment. It is within our Family Constitution to donate 1% of the company’s annual profits to charitable causes and we guarantee that employees can spend time volunteering, with two work days available each year. We work with younger generations to inspire the future workforce and we stay connected with the retired workforce through our pensioner population. Supporting our community has been at the heart of our business for the last 90 years and we’re delighted to share our efforts for the first time in the form of this report.
Alastair Macphie Chairman April 2018
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EXECUTIVE SUMMARY AT MACPHIE, WE FOCUS ON THREE PRIORITY AREAS FOR OUR CORPORATE SOCIAL RESPONSIBILITY. THESE ARE SOME OF THE HIGHLIGHTS FROM OUR 2017/18 FISCAL YEAR.
Environment Our biomass facility, which uses locally sourced wood chips, and our two wind turbines mean that 50% of the energy used at our two manufacturing sites is produced from onsite renewable sources.
Through our membership of SEDEX, we monitor and promote a more sustainable and responsible supply chain, with greater transparency on issues such as human rights, labour rights and environmental protection.
We are a member of the Roundtable of Sustainable Palm Oil (RSPO), an organisation that encourages use of sustainably sourced palm oil in manufacturing.
In 2017, we were re-certified as a member of the B Corporation, which is committed to hitting social and environmental goals, alongside financial ones.
People We employ over 300 people across three sites.
On average, an employee works with the company for seven years.
A “family of families”, we were a finalist in the Scottish Rural Awards as Employer of the Year.
We have an established apprenticeship programme in place to train young people to become fully qualified bakers and engineers.
Macphie’s Employee Forum meets regularly to discuss the latest issues from an employee perspective.
Twelve percent of the company is held by an Employee Trust which makes sure the money generated by their shareholding is spent to the maximum benefit of employees.
Communities The company donates 1% of its total profit - £50,000 in 2017/18 – to local charities and community projects.
Company employees came together to raise over £10,000 for dementia charity Alzheimer Scotland.
Each employee can take two days paid leave to volunteer in their local communities.
We have formed three partnerships with local secondary schools, all within 10 miles of a Macphie site, to create bonds with the next generation of our workforce.
We look after our retired workforce, easing hardship and keeping them connected with company news.
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WHO WE ARE
MACPHIE IS AN INTERNATIONAL FOOD BUSINESS ESTABLISHED IN 1928. Our range of products is used by chefs, bakers and manufacturers across 31 countries worldwide. The family-owned business is headquartered in Scotland, in the 2,000-acre Glenbervie estate in Aberdeenshire with a second manufacturing site in north Lanarkshire. In the past year, we opened a new Centre of Excellence in England, outside Coventry, specifically designed to showcase our products to customers. We employ a workforce of over 300 people across a variety of roles, including product design, engineering and production.
OPERATING FOR 90 YEARS
THE VITAL INGREDIENT
PRODUCTS USED IN 31 COUNTRIES
VISION
At the core of all our business activity lie our VITAL values: Vision, Integrity, Togetherness, Achievement and Lifestyle. Widely promoted across the business, we encourage our employee population to work together in this “VITAL” way.
ACROSS 3 UK SITES
CLEAR DIRECTION & INVESTMENT CULTURE OF PRIDE & TRUST
I NTEGRITY
OPEN & HONEST COMMUNICATIONS FAIRNESS, RESPECT & EMPOWERMENT
TOGETHERNESS
WORK AS ONE TEAM TO THE SAME GOALS CO-OPERATE & SUPPORT EACH OTHER
ACHIEVEMENT
TRAINING & DEVELOPMENT CELEBRATE & REWARD SUCCESS
L IFESTYLE
GOOD WORK/LIFE BALANCE SAFE, FUN & HAPPY WORKPLACE
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GOVERNANCE OF THE FAMILY ENTERPRISE THE BUSINESS HAS BEEN OWNED BY THE MACPHIE FAMILY SINCE ITS CREATION IN 1928 BY ALISTAIR MACPHIE.
Ninety years on, his great-nephew Alastair Macphie occupies the role of Chairman, having taken over from his father Stewart in 1995. The Macphie Family Council exists to preserve the family’s legacy and to drive significant contributions to the communities in which the business operates.
EDUCATIONAL SHAREHOLDERS
MACPHIE FAMILY COUNCIL
FAMILY SOCIAL
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OUR SUPPLY CHAIN
WE ARE MEMBERS OF SEDEX, THE WORLD’S LARGEST PLATFORM FOR SHARING RESPONSIBLE SOURCING DATA ON SUPPLY CHAINS, USED BY MORE THAN 50,000 MEMBERS IN OVER 150 COUNTRIES. This is one of the ways we manage the wider impact our business has on our environment through the activities of our supply chain. We use over 200 suppliers and require them all to confirm: •
the steps they are taking to ensure slavery and human trafficking are not taking place within their business, or any part of their own supply chain
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their acceptance of the Ethical Trading Initiative Base Code, which includes the payment of relevant living wages, preclusion of child labour and lack of forced labour or excessive hours
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that they have - and supply us with - a copy of their ethical trading policy and environmental policy
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whether they themselves are members of SEDEX
By monitoring compliance, we promote ethical practices through our own supply chain with the aim of driving positive change throughout the industry. Macphie itself operates a robust recruitment policy to prevent the practice of modern slavery. We check eligibility to work in the UK for all employees to safeguard against human trafficking or individuals being forced to work against their will.
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ENVIRONMENT WE TAKE A LONG-TERM VIEW OF THE FUTURE SUSTAINABILITY OF OUR BUSINESS AND THE IMPACT THAT IT HAS ON THE ENVIRONMENT. We operate in such a way as to prevent pollution, minimise our impact on the environment, while improving our performance and complying with all the relevant environmental legislation.
Macphie Corporate Social Responsibility report 2017/18 | macphie.com
50% OF ENERGY USED IS FROM ONSITE RENEWABLE SOURCES
ONE OF OVER 2,000 GLOBAL B CORP MEMBERS
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FIRST FOOD MANUFACTURER TO PRODUCE INGREDIENTS USING BIOMASS FACILITY
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RENEWABLE ENERGY WE WERE THE FIRST MANUFACTURER TO PRODUCE FOOD INGREDIENTS USING GREEN ENERGY CREATED FROM LOCALLY SOURCED WOOD CHIPS USING OUR ONSITE BIOMASS BOILER. THIS ENERGY IS USED TO GENERATE STEAM TO POWER OUR ULTRA-HIGH TEMPERATURE (UHT) PROCESSING. We have two wind turbines on the Glenbervie Estate which provide energy for our main manufacturing site. Around 30% of the energy generated powers production at Glenbervie with the rest being fed into the National Grid. Due to these two initiatives, half of the energy used across both our manufacturing sites is produced from onsite renewable sources. Monitored closely by the Scottish Environment Protection Agency (SEPA), we treat all our waste water at Glenbervie in our effluent plant before returning it to the nearby river Bervie. The solid waste produced during treatment is used by Glenbervie Home Farm to fertilise its land.
RECOGNISING GLOBAL IMPACT WE RECOGNISE THE IMPACT OUR ACTIVITY CAN HAVE NOT JUST ON OUR IMMEDIATE ENVIRONMENT, BUT ALSO OVERSEAS. Palm oil is a versatile raw material used as a key ingredient by food manufacturers across the world. It provides a crucial source of livelihood for millions of farmers and communities across Indonesia and Malaysia. However, palm cultivation is intrinsically linked to deforestation and erosion of the natural habitat of the endangered orangutan. At present, we use sustainably sourced palm oil and palm fractions in a number of our products. While some organisations attempt to strip palm oil from their products, we recognise that large economies will suffer if the use of palm oil suddenly stops. We are a member of the Roundtable of Sustainable Palm Oil (RSPO), an organisation that encourages use of sustainably sourced palm oil in manufacturing. Our membership fees support farmers working on existing plantations, which reduces further deforestation.
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B CORPORATION WE’RE COMMITTED TO BEING AN INDUSTRY LEADER IN OUR EFFORTS TO CONSERVE THE ENVIRONMENT. In 2015, Macphie was one of the first UK organisations to achieve B Corporation certification as acknowledgment of the company’s ongoing commitment to social and environmental ethics, transparency and accountability. The B Corp global community is made up of companies committed to hitting social and environmental goals, alongside financial ones. In 2017, we were successfully re-accredited with an improved score. We now stand with a community of over 2,000 like-minded businesses but remain one of only a dozen food and drink companies in the UK to have attained membership.
We congratulate Macphie on its efforts to redesign traditional manufacturing and embrace sustainable manufacturing processes, using not only onsite wind and wood chip renewable energy, but also having installed a heath recycling and onsite water treatment plant. Through these practices, the company reduces its environmental footprint, and contributes to environmental preservation and the conservation of natural resources. BCorp assessment team, May 2017
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PEOPLE AT MACPHIE, WE ACKNOWLEDGE THE IMPORTANT CONTRIBUTION THAT EMPLOYEES MAKE TO THE SUSTAINABLE SUCCESS OF THE BUSINESS. The passion of our people is one of our greatest strengths. We currently have over 300 employees across our business, 22% of whom live in low-income communities. We are committed to cultivating a diverse, rewarding culture that encourages our people to develop to their fullest potential. On average, an employee works with the company for seven years. Our employee population fosters a strong workplace community, promoting Macphie as a great place to work. This is reflected in the number of family members we have working across the company. We often describe our workforce as a “family of families”, with husbands and wives, parents and siblings all working in Macphie. Last year, we were a finalist in the Scottish Rural Awards as Employer of the Year. We realise the commitment our people make to working in the VITAL way and every employee is entitled to a share of the company’s profits, which is paid out as a twice-yearly bonus.
APPRENTICES We have an established apprenticeship programme in place to train young people to become fully qualified bakers and engineers. During the last year, we took on a new bakery apprentice and currently have two apprentice engineers. All of our apprentices have the opportunity to learn “on the job” as well as taking part in regular off-site learning. Two of our bakers joined us as apprentices and are still employed within the company, both now with over 12 years’ service.
AVERAGE TENURE OF 7 YEARS EMPLOYEE TRUST OWNS 12% OF THE COMPANY OVER 300 EMPLOYEES
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VITAL SPARK RECOGNISING COLLEAGUES AT EVERY LEVEL OF THE BUSINESS IS AN IMPORTANT PART OF OUR CULTURE. Over the year, we spent over £17,000 on rewarding employees for going over and beyond what is expected in their roles. Any employee can nominate a colleague in any department for actively demonstrating the company’s VITAL values. Last year, we held an employee awards evening, funded by our Employee Trust, to reward exceptional performance. A member of our commercial team took home the VITAL Spark award, lifting the top prize for his dedication and enthusiasm for the company-wide project to introduce a new business system.
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EMPLOYEE FORUM EVERY THREE MONTHS, WE HOST A 28 REPRESENTATIVE-STRONG EMPLOYEE FORUM TO DISCUSS THE LATEST ISSUES FROM AN EMPLOYEE PERSPECTIVE AND HOLD MANAGEMENT ACCOUNTABLE FOR THE KEY DECISIONS WITHIN THE BUSINESS. Our forum makes sure everyone’s voice is heard and has resulted in a variety of solutions being found to issues around work clothing, leisure facilities as well as pushing the introduction of electric car charging points.
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EMPLOYEE TRUST TWELVE PERCENT OF THE COMPANY IS HELD BY AN EMPLOYEE TRUST WHICH IS MADE UP OF BOTH CURRENT AND PAST EMPLOYEES AND MEMBERS OF THE MACPHIE FAMILY. The trust oversees how the dividend generated by their shareholding is spent to the maximum benefit of employees. Last year, the Employee Trust contributed over £70,000 to a variety of initiatives including a leisure subsidy scheme. This offers each employee up to £100 to use towards hobbies, or activities they enjoy doing outside work. So far, over £8,500 has been paid out under this scheme. Macphie’s Employee Trust also supports its employee and pensioner population in times of hardship, through emergency loans and help towards funeral payments. It supports the future workforce through a student bursary scheme which aims to help employees’ children or grandchildren take up a place in further education. Bursary payments help to ease the financial burden of college or university and in 2017, the trust paid out over £20,000 to students. Our retired workforce is also supported by the Employee Trust (see page 20).
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COMMUNITIES AS A FAMILY-OWNED BUSINESS, EMBEDDED WITHIN OUR LOCAL COMMUNITIES, WE HAVE BUILT A REPUTATION FOR “DOING THE RIGHT THING”. Our motivation does not always come from the bottom line. The idea of creating a legacy and the notion of trust features heavily in our activities. We want to be a good neighbour in the communities in which we operate and do our best to support local causes, assist the future workforce and stay in touch with our retired employees.
OFFICIAL PARTNERSHIPS WITH 3 SCHOOLS
EMPLOYEES RAISED OVER £10,000 FOR CHARITY
DONATED 1% OF PROFIT, A TOTAL OF £50,000 TO LOCAL CAUSES
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SUPPORTING CHARITY IN 2017, OUR EMPLOYEES LINKED UP WITH A SINGLE CHARITY PARTNER AS THE FOCUS FOR THEIR FUNDRAISING.
This saw employees from across all three sites come together to raise money for Alzheimer Scotland. A target of £10,000 was set and through a variety of projects, our teams reached this goal by January 2018, three months ahead of schedule. Employees took part in muddy obstacle races, made jams and chutneys to sell, organised a quiz night and some even got their legs waxed. Most importantly, team members came together to do good. The family constitution states that 1% of company profit must
be donated to local charities and community projects. In 2017, this amounted to £50,000 which has been distributed between over 140 causes. Examples include a £500 donation to the Montrose Womens’ Walking Football Club and a donation of £250 to a local preschool, attended by a number of employees’ children, to fund new outdoor equipment to encourage outdoor play. We also donated a lawnmower to a community park committee and over 700 cakes, 80kg of product and two office printers to local charities and community groups.
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VOLUNTEERING ALL EMPLOYEES HAVE THE OPPORTUNITY TO TAKE TWO DAYS AS PAID LEAVE TO VOLUNTEER FOR LOCAL PROJECTS OR CAUSES WHICH ARE CLOSE TO THEIR HEART. Last year, one employee used his days to help out at the Guide Dogs for the Blind centre in Forfar. As a regular donor to the charity every month, he took the opportunity to find out how his contributions are helping. Another employee is a scout leader in north Lanarkshire and used two of his days to take the group on a recreational trip, which for some was their first trip away from home. A team of employees helped a community gardening group brighten up a local village, and over Christmas, a member of the technical team spent a day packing bags in a nearby supermarket to raise money for a local children’s charity.
RETIRED WORKFORCE OUR RETIRED WORKFORCE PLAYED A BIG ROLE IN DRIVING GROWTH AT MACPHIE AND THEY REMAIN VALUED MEMBERS OF THE TEAM. In 2017, over £30,000 was gifted, through the Employee Trust, to our retired employees as an annual winter payment. They receive a quarterly newsletter which is delivered to their doors with updates from their old colleagues and the latest company news. In June 2017, we invited our retired employees back to Macphie to reminisce and take them through recent changes across the business.
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Macphie Corporate Social Responsibility report 2017/18 | macphie.com
DEVELOPING THE YOUNG WORKFORCE OUR ENGAGEMENT WITH SCHOOLS IS PART OF OUR WIDER CONNECTION WITH LOCAL COMMUNITIES BUT ALSO PLAYS AN IMPORTANT PART IN INFORMING THE NEXT GENERATION OF THE WORKFORCE ABOUT CAREER OPPORTUNITIES IN THE FOOD INDUSTRY. In 2017, we established partnerships with three local schools – Mearns Academy and Mackie Academy in Aberdeenshire and Uddingston Grammar in North Lanarkshire - all of which are within 10 miles of a Macphie site. With each school, Macphie has taken part in a variety of projects including product development and time management workshops, presentations, mock interviews and career fairs. As well as practical help, the company donated £8,000 to Mearns Academy to buy 25 tablet computers to help pupils develop skills for life, learning and work.
BEST IN CLASS Combining elements of business management and home economics, we supported a product development project which saw third-year pupils at Mearns Academy come up with a healthy cake concept.
Our team talked the pupils through how Macphie approaches the process, focusing on research, taste tests and marketing.
Over the next three months, the pupils worked in groups to research healthy ingredients, test flavour combinations, trial products and design promotional materials before presenting their ideas back to their peers and the Macphie team.
Having involvement from Macphie has been great and the pupils have taken real pride in presenting their ideas. It’s good for us to show how the work they’re doing now in school can be translated into the workplace and to highlight the range of job opportunities beyond those pupils might associate with the food and drink industry. Lynne Howe, Mearns Academy Home Economics Teacher
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LOOKING TO THE FUTURE AS WE CELEBRATE 90 YEARS IN BUSINESS, WE’RE PROUD THAT CORPORATE SOCIAL RESPONSIBILITY REMAINS AT THE HEART OF WHAT WE DO AND HOW WE DO IT. Producing our first CSR report has highlighted key successes for our business and we approach the next year with ambitious plans to build on our status as a responsible employer. Having been a B Corp member for three years, we’re looking to tap into this international community of like-minded businesses to identify how we can help fly the flag for this global movement. We’re looking at ways to drive sustainability sourcing throughout our supply chain with chocolate and soy ingredients high on our agenda. We’re also continuing to drive our environmental efforts to achieve zero landfill waste. To continue inspiring careers in food manufacturing, we are strengthening our support to local schools and have already begun building relationships with universities in our region to expand our role in developing the future workforce. Following the success of our partnership with Alzheimer Scotland, our employees are choosing another charity to work with over the next two years, hoping to replicate that success. A suggestion in our employee forum has prompted us to install two electric car charging points which are now accessible to members of the community as well as employees. In a rural location with limited public transport access, this equipment should encourage the use of more environmentally-friendly transport methods. Most importantly, we will continue to use our business, people and practices as a force for good, both now and in the many years to come.”
Alastair Macphie Chairman
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