Macphie Ltd CSR report 2018/19

Page 1

CORPORATE SOCIAL RESPONSIBILITY

COMMUNITIES

PEOPLE

ENVIRONMENT

2018-19 REPORT


2|

CONTENTS

macphie.com | Macphie Corporate Social Responsibility report 2018/19


Macphie Corporate Social Responsibility report 2018/19 | macphie.com

|3

A message from our Chairman

4

People 14

Who we are

6

Communities 18

Executive summary

7

Looking to the future

Environment

11

22


4|

macphie.com | Macphie Corporate Social Responsibility report 2018/19

A MESSAGE FROM OUR CHAIRMAN

AS A FAMILY BUSINESS, WE HAVE A CLEAR PURPOSE, MISSION AND VALUES AND OVER THE YEARS, WE’VE BUILT A REPUTATION FOR DOING THE RIGHT THING. WE’RE PROUD AND PROTECTIVE OF THIS LEGACY.


Macphie Corporate Social Responsibility report 2018/19 | macphie.com

|5

This report outlines the work we’ve done in the last year to conserve our environment, develop our people and connect with the communities in which we operate. This work is not done in isolation but embedded in the overall running of our business. Macphie is focused on achieving sustainable and profitable growth that provides jobs and creates wealth in the local area, rather than maximising short term returns for shareholders. From volunteering, fundraising, inspiring futures and leading environmental initiatives, our community of employees comes together to create a powerful force for good. It’s this unique environment that proves to be the vital ingredient to the ongoing success of our business. Alastair Macphie Chairman April 2019


6|

macphie.com | Macphie Corporate Social Responsibility report 2018/19

WHO WE ARE WE ARE AN INTERNATIONAL FOOD BUSINESS ESTABLISHED IN 1928. OUR RANGE OF PRODUCTS IS USED BY CHEFS, BAKERS AND MANUFACTURERS IN 31 MARKETS WORLDWIDE. WE’RE A FAMILYOWNED BUSINESS, HEADQUARTERED IN SCOTLAND ON THE 2,000-ACRE GLENBERVIE ESTATE IN ABERDEENSHIRE WITH A SECOND MANUFACTURING SITE IN NORTH LANARKSHIRE AND A PRESENTATION KITCHEN IN THE MIDLANDS.

GLENBERVIE (HQ) ABERDEEN

TANNOCHSIDE NORTH LANARKSHIRE

WE EMPLOY A WORKFORCE OF AROUND 300 PEOPLE ACROSS A VARIETY OF ROLES, INCLUDING PRODUCT DESIGN, ENGINEERING AND PRODUCTION.

MIDLANDS CUSTOMER CENTRE NEAR COVENTRY


|7

Macphie Corporate Social Responsibility report 2018/19 | macphie.com

AT MACPHIE, OUR ACTIVITIES IN THE FIELD OF CORPORATE SOCIAL RESPONSIBILITY FOCUS ON THREE KEY AREAS. WE’VE OUTLINED SOME OF THE HIGHLIGHTS FROM OUR 2018/19 FISCAL YEAR.

EXECUTIVE SUMMARY

Environment We have launched a project looking at the reduction and eventual elimination of single use plastic in our manufacturing processes Two electric car charging points were installed, accessible both to the workforce and the general public Wildlife Estates Scotland recognised the Glenbervie estate for its outstanding work on wildlife, habitat and conservation management Fifty percent of the energy used across both our manufacturing sites has come from onsite renewable energy

People In March 2019 we were named Rural Employer at the Scottish Rural Employer awards In our latest employee survey (Oct 2018) almost three-quarters of the workforce would recommend Macphie as a good employer Over £57,000 was spent helping employees - past and present – and their families fund leisure activities, pursue educational goals or rewarding them for exemplary service Through investment in technology, we have removed 25,000 annual tonnes of manual lifting from our factories

Community There has been a 50% increase in the number of employees using their allocated volunteering days The business has donated to over 180 local charities and community groups, sums totalling over £36,000 Employees raised almost £7,000 for the Scottish Association for Mental Health (SAMH), having chosen to support the charity in a company-wide vote We were shortlisted for a Northern Star Business Award for our work inspiring pupils at an Aberdeenshire secondary school and promoting a career in the food sector Industry body the Food and Drink Federation (FDF) recognised the company with a special award in October 2018 for its innovation and projects with the future generation of the workforce


8|

macphie.com | Macphie Corporate Social Responsibility report 2018/19

GOVERNANCE OF THE FAMILY ENTERPRISE THE BUSINESS HAS BEEN OWNED BY THE MACPHIE FAMILY SINCE ITS CREATION IN 1928 BY ALISTAIR MACPHIE. More than 90 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. Macphie is governed by the Macphie Family Constitution, which sets out the structure, aims and values that drive the separate enterprises it owns – Glenbervie Home Farm, Glenbervie Estate, Glenbervie Wind and Macphie Ltd.

SHAREHOLDERS

MACPHIE FAMILY COUNCIL

EDUCATIONAL FAMILY SOCIAL

THE GROWTH OF MACPHIE IS FOCUSED ON ACHIEVING SUSTAINABLE AND PROFITABLE GROWTH THAT PROVIDES 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


|9

Macphie Corporate Social Responsibility report 2018/19 | macphie.com

The VITAL way

AT THE HEART OF OUR BUSINESS LIE OUR VITAL VALUES. Widely promoted across the business, we encourage our employee population to work together in the vital way and firmly believe that the emphasis is what makes us what we are today. This means more than just following a set of compulsory procedures but embracing what it means to be part of Team Macphie.

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 ITS DIVIDEND GENERATED BY THEIR SHAREHOLDING IS SPENT TO THE MAXIMUM BENEFIT OF EMPLOYEES.


10 |

macphie.com | Macphie Corporate Social Responsibility report 2018/19

A FORCE FOR GOOD OUR PURPOSE GOES BEYOND PROFIT. AS ONE OF THE FIRST UK ORGANISATIONS TO ACHIEVE B CORPORATION CERTIFICATION IN 2015, OUR ONGOING COMMITMENT TO SOCIAL AND ENVIRONMENTAL ETHICS, TRANSPARENCY AND ACCOUNTABILITY HAS BEEN RECOGNISED ON A GLOBAL SCALE.

The B Corporation certification process reviews how we measure more than just financial targets, covering everything from renewable energy use, sustainable sourcing and how we take care of our employees. We have always tracked our financial performance but the difference that B Corp has made to our culture is that it has injected more discipline and consistency into the process beyond that. B Corp recognises that we all have a part to play in tackling society’s biggest issues and we’re proud to be part of a worldwide community committed to doing our bit to be the change. Doing business in a responsible way cannot be seen as a luxury. 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, rights in the workplace and environmental protection. We come together with over 50,000 members in 155 countries, and actively encourage our own supply chain to sign up to the Ethical Trade Initiative (ETI) that promotes respect for workers’ rights around the globe. We’re embracing sustainable manufacturing processes while making safe food, safely. This year we’re proud to be reaccredited with an AA+ status against the revised BRC Global Standards.


Macphie Corporate Social Responsibility report 2018/19 | macphie.com

| 11

ENVIRONMENT

FROM REVIEWING OUR USE OF PLASTIC AND FACILITATING ENVIRONMENTALLY-FRIENDLY MEANS OF TRANSPORT, WE DO OUR BEST TO MINIMISE OUR IMPACT ON THE WORLD AROUND US. In 2018, Glenbervie estate – on which Macphie is headquartered - was recognised by Wildlife Estates Scotland for its work with wildlife, habitat and conservation management. The estate plants forestry and hedges to encourage diverse habitats for wildlife. The latest study by the Royal Society for the Protection of Birds (RSPB) proved Glenbervie to be home to 15 bird species of conservation concern including buzzards and mistle thrush. We’re proud to have been the first company in the UK to use an industrial biomass plant to generate power to produce food. Fifty percent of the energy used across both our manufacturing sites comes from onsite renewable energy. Two wind turbines stand guard over the Glenbervie site, not only powering production but plugging 70% of the energy back into the national grid. The majority of our liquid waste from manufacturing processes is treated and returned to the river Bervie at the same quality, monitored by the Scottish Environment Protection Agency (SEPA) and over 50% of solid waste is recycled, reused or composted by Glenbervie Home Farm.


12 |

macphie.com | Macphie Corporate Social Responsibility report 2018/19

Pushing out plastic THIS YEAR, WE’RE REVIEWING HOW WE USE PLASTIC. Single use plastic such as bags, bottles and some food packaging are being used once and thrown away, causing devastating destruction to our oceans. As the world works to tackle the problem, we’re looking for ways to use less plastic and to make sure what is used can be recycled or reused. At present, the packaging for one of our best-selling lines is made from 75% renewable and recyclable material and by 2020, we aim to increase this to almost 85%. Beyond packaging, our team is looking at how we use plastic in our everyday work and where it can be replaced. By changing the way they carry out product tastings, our technical team has switched from using plastic spoons to metal, reducing our plastic consumption by over 20,000 spoons per year.

Sustainable supply HOW AND WHERE WE SOURCE OUR INGREDIENTS PLAYS A BIG PART IN OUR EFFORTS TO CONSERVE THE ENVIRONMENT. In 2018, supermarket chain Iceland brought palm oil – and the effect its production can have on the environment - to the world’s attention with their Rang-tan advertising campaign. Despite being banned from airing on television, the advert – which focuses on how palm oil production poses a threat on orangutan habitats – received over 30million views through social media. It’s since sparked great debate on palm oil and its place in food production. At present, we use sustainably-sourced palm oil in a number of our products. While some organisations attempt to strip it from their recipes, we recognise that overseas economies will suffer if the use of palm oil suddenly stops. Since 2012, we’ve been a member of the Roundtable of Sustainable Palm Oil (RSPO) – an organisation aimed at reducing deforestation caused by the production of palm oil. Our membership continues to help minimise the negative impact of palm oil cultivation on the environment and communities in producing regions. We also manufacture UTZ and Fairtrade-certified products, supporting each organisation in their plans to improve sustainable sourcing globally.


Macphie Corporate Social Responsibility report 2018/19 | macphie.com

| 13

Charging ahead AS A BUSINESS PLUGGED INTO ITS LOCAL COMMUNITIES, WE REALISE HOW WE CAN BRING MORE THAN JUST OUR EMPLOYEES ALONG THE ROAD TO A CLEANER ENVIRONMENT. In 2018 we installed two electric car charging points, accessible to our workforce and the general public. In a rural location with limited pubic transport access, this equipment encourages the use of more environmentally-friendly transport methods and is used by a number of our employees and local people.


14 |

macphie.com | Macphie Corporate Social Responsibility report 2018/19

PEOPLE WE POSITION MACPHIE AS THE “VITAL INGREDIENT” TO OUR CUSTOMERS. EQUALLY, OUR WORKFORCE IS A VITAL INGREDIENT IN OUR SUCCESS. We employ around 300 people and in October 2018, our new CEO Andy Stapley joined the team. In March 2019 we were named Rural Employer at the Scottish Rural Awards with judges commending us as a business which reflects our rural values by fostering a true sense of belonging and community in the workplace. More importantly, we’re proud to see that this view is also held by our employees. According to our latest employee survey, nearly 75% of our employees say they would recommend Macphie as a good place to work and that’s with a response rate of over 90%.

“At Macphie, there are opportunities to make a huge difference not just in the food industry but in the communities we work in. To be able to do that while carrying out your 9-5 job (or equivalent shift pattern!) is pretty impressive” “I feel at home here and would have no issue recommending Macphie to anyone I know” “I have worked with a number of companies within the food industry and believe Macphie is the best, with VITAL values a key contributor” Comments from Macphie’s employee survey 2018


Macphie Corporate Social Responsibility report 2018/19 | macphie.com

| 15

Be heard OUR EMPLOYEES ARE USED TO HAVING THEIR SAY. WHETHER THEY’RE BASED ON THE SHOP FLOOR, BEHIND A DESK OR WORKING FROM HOME, THEIR VOICE MATTERS. In 2018 we relaunched the company’s intranet where all business news is posted, keeping everyone informed. To encourage employee-led conversations, interactive features have been introduced including the ability to comment on news stories and an online message board. We also introduced mobile access to allow more people to check out the latest company updates at a time and place to suit them. Following these improvements, almost 90% of our employees agree that they understand the company’s overall strategy. While technology rewards us with great opportunity, the personal touch still very much has its place here at Macphie. As well as all-staff conferences, team briefings and appraisals, our CEO hosts regular coffee mornings in small groups to ask everyone in the business how they think we can improve.


16 |

macphie.com | Macphie Corporate Social Responsibility report 2018/19

Be rewarded AS WELL AS BEING HEARD, OUR EMPLOYEES ARE REWARDED FOR THEIR COMMITMENT TO MAKING MACPHIE A SUCCESS. Every employee is entitled to a share of the company’s profits, which is paid out as a twiceyearly bonus. Funded by our Employee Trust, our people also benefit from a student bursary scheme. This is open to both employees and their families, aiming to reduce the financial burden for those going into further education. In 2018/19 over £18,000 was paid out under this scheme. We advocate a positive work-life balance and the Employee Trust funds a leisure subsidy scheme. The initiative offers all 300 employees the chance to claim up to £100 per year to use towards hobbies, or activities they enjoy doing outside work. Now in its second year, over £8,000 has been paid out to employees under this scheme. Recognising colleagues at every level of the business is an important part of our culture. Employees can nominate their peers for individual or team recognition at any time of the year. Over the last 12 months, £1,700 has been spent on rewarding employees who have been tipped for going above and beyond in their role with an additional £2,000 on recognising employees with long service. Twice a year, the business presents the JMG award – gifted by former sales director John Gillespie – to a team which has excelled in its efforts. This year, one of the award winners was a team of employees from across the business which, for the previous two years were seconded to implement a new key business planning system.

Retired employees WE AIM TO RECOGNISE THE CONTRIBUTION OUR PEOPLE MAKE LONG AFTER THEY’VE HUNG UP THEIR HAIRNET OR PACKED UP THEIR DESK. The Employee Trust uses its shareholding to support our retired workforce with an annual winter payment. In total, over £28,000 has been paid out this year to support the retired workforce. The trust regularly checks in with each of our pensioners either in person or over the phone and a quarterly newsletter keeps them in the loop with news from their old colleagues and the latest at Macphie. This year, our retired colleagues also enjoyed a Christmas hamper from the trust filled with festive treats, some made using Macphie products.


Macphie Corporate Social Responsibility report 2018/19 | macphie.com

Be safe WHILE WE AIM TO EMPOWER OUR EMPLOYEES AT WORK, THEIR HEALTH, SAFETY AND WELLBEING IS OUR PRIORITY. As well as meeting legislative requirements, we have launched monthly campaigns with proactive health and wellbeing advice. Topics have included staying healthy on shift, introducing exercise to the daily routine and winter health. All employees are registered to our comprehensive healthcare package and we offer free flu vaccinations. In the last five years, we have invested over £5million in technology including the introduction of five robots and filling and packaging equipment. This has removed 25,000 annual tonnes of manual lifting from our factories – reducing risk and providing opportunities to upskill our people. In one factory alone, we have removed the handling of 2,000tonnes of ingredient every year by installing a specially-designed tower to hold bulk sugar deliveries. Ordering ingredient in bulk instead of bagged deliveries also means that 65,000 fewer plastic-lined bags are going to landfill every year. We understand that mental health is just as important as physical health. In partnership with the Scottish Association for Mental Health (SAMH), we’re providing advice and guidance to promote positive mental health. Find out more on page 19.

| 17


18 |

macphie.com | Macphie Corporate Social Responsibility report 2018/19

COMMUNITIES WE PLAY AN ACTIVE ROLE IN OUR COMMUNITIES – ACTING NOT JUST AS A BUSINESS, BUT A SUPPORTIVE NEIGHBOUR TO THOSE LIVING AND WORKING AROUND US. The Family Constitution promises that a percentage of the company’s profits is donated to charity and local causes every year, meaning that community relations have always run deep at Macphie. Over the last two years, the business has strengthened its commitment to its socially responsible activity with the appointment of a CSR and engagement executive. This appointment has given Macphie a central point of contact for all community engagement, strengthening its relationships with one of its key stakeholders. True to the constitution, the business has donated to around 180 local charities and community groups in the last year, a sum totalling over £36,000.

Growing communities

We want our relationships with the local community to go further than a cash transaction however. All employees are entitled to take two days paid leave every year, on top of their holiday allowance, to use to volunteer for a local project or cause.

IN 2018, MACPHIE EMPLOYEES PARTNERED WITH BRIGHTER BERVIE - A COMMUNITY GARDENING GROUP BASED IN A NEARBY VILLAGE.

In the last year, there’s been a 50% increase in the number of employees using one or both of their volunteering days.

A team of five employees spent the day with the team of volunteers, helping to spruce up the village gardens in time for the arrival of the Keep Scotland Beautiful judges. One of our employees also attended the judging to provide evidence on how the group has involved the community in its development of public areas. Continuing our support, we helped the group pay for a new incubated composter to improve its waste management as well as funding a new gate to allow the local primary school easy and safe access to one of the public gardens to support outdoor learning. Inspired by the gardening group’s efforts and with its support, the school’s pupils are now creating a sensory garden in its playground which will be accessible to the rest of the community. Plans for the garden feature a rockery, relaxing seating area and a solar-powered water feature donated by Macphie.


Macphie Corporate Social Responsibility report 2018/19 | macphie.com

| 19

Macphie for mental health MACPHIE EMPLOYEES CHOSE TO PARTNER WITH THE SCOTTISH ASSOCIATION FOR MENTAL HEALTH (SAMH). Learning from our first company-wide charity partnership with Alzheimer Scotland in 2017, we extended the partnership from one year to two. As well as raising money, we want to use this partnership to raise awareness of mental health amongst our own employees. We’re encouraging the entire workforce to understand mental health and make the conversation around it more comfortable. We’ve hosted employee information sessions with SAMH, shared tips and advice on promoting good mental health and most importantly, provided clear guidance on where to go for help. Meanwhile, employees are tackling physical challenges including muddy obstacles and step challenges at Murrayfield rugby stadium to raise funds for the charity. Some have even turned their hobbies into cash with one employee selling handmade scarves and another painting faces at the Macphie children’s Christmas party helping to raise almost £7,000 in our first year of partnership.

Over the last year, Macphie has put in an incredible effort in supporting SAMH and the mental health cause. We’re so proud and grateful to everyone for being such tremendous supporters of SAMH. Our mental health and wellbeing are so important. Poor mental health can have the most profound impact on our relationships, our work, our wellbeing and quality of life. By raising vital funds and awareness Macphie has helped SAMH reach more people who need us. Fiona Lewis Corporate Fundraising Manager, SAMH


20 |

macphie.com | Macphie Corporate Social Responsibility report 2018/19

Inspiring futures 2018 MARKED THE YEAR OF YOUNG PEOPLE AND SAW MACPHIE CONTINUE ITS EFFORTS TO INSPIRE THE NEXT GENERATION.

…in the community Since launching partnerships in 2017 with three local secondary schools – Mearns Academy and Mackie Academy in Aberdeenshire and Uddingston Grammar in South Lanarkshire – the business has continued to grow these relationships. These partnerships form part of Macphie’s overall commitment to the local community but also play a vital role in preparing the future workforce and inspiring careers in the food industry. In one school, Macphie’s human resources team led pupils through the recruitment process, starting with a workshop on creating a stand-out CV followed by interview advice and mock interviews to put the theory into practice. In October 2018, Macphie’s partnership with Mearns Academy was shortlisted for the Inspiring Futures category at the Northern Star Business Awards – a regional award aimed at recognising school and business partnerships which are providing practical support to inspire young people and make sure they’re ready for the workplace.

At DYW, we aim to build meaningful partnerships between employers and education to engage, inspire and develop the future workforce. It is truly inspiring to see the energy and enthusiasm that Macphie puts into the projects they devise with their partner schools. Whether giving an insight into a career in the food industry or preparing pupils for the modern workplace in general, the fun and innovative approach they take makes a real difference to the young people in the region. Mary Holland Director of DYW North East


Macphie Corporate Social Responsibility report 2018/19 | macphie.com

| 21

…in the industry Speaking at a parliamentary reception at Hollyrood - hosted by the Food and Drink Federation - one of Macphie’s very own rising stars, Channel Product Manager Zoe Smart spoke of the importance of investing in the future workforce and providing practical opportunities for today’s young people. We’re proud to provide such opportunities through our baking and engineering apprenticeship programmes. Our current apprentices are receiving on-the-job training while working towards nationallyrecognised qualifications. We encourage a culture of continuous development and over the years, many of our apprentices have chosen to stay on at Macphie long after they’ve qualified. This year, we hosted three university students on short-term work placements. Studying engineering, public relations and food science, each student received an introduction to our industry with personalised projects to get their teeth into. Macphie’s ongoing commitment to the future of the food industry was rewarded with a special recognition award at the 2018 FDF awards. The national award commended our efforts in showing that a career in the food industry isn’t limited to becoming a chef or baker, and that science plays an important part in developing new and improved food products.


22 |

macphie.com | Macphie Corporate Social Responsibility report 2018/19

LOOKING TO THE FUTURE AS WE LOOK TO THE FUTURE, WE’VE MATCHED OUR AMBITIOUS BUSINESS PLANS WITH AIMS TO MAKE SURE OUR SOCIALLY RESPONSIBLE ACTIVITY THRIVES.

Environmentally, our focus remains on reducing single use plastics within our manufacturing process. Keeping abreast with innovations in processes and packaging means we reduce the impact we have on the environment while keeping our customers at the forefront of the latest technology. We’ve already begun trials on a new form of pallet wrap which could reduce the amount of plastic we use to wrap pallets by almost 70%. Within our communities, we are looking to deepen the links with projects that make a difference. While we may have previously given financial support, we now look at encouraging our employees to get involved with the project through their volunteering leave, or link together neighbouring projects and activate our links with local schools to get them involved. Employees have thrown bags of enthusiasm towards our partnership with SAMH and we look forward to seeing how this relationship progresses in its second year. Mental health is holding the nation’s attention and we’re proud to be playing a part in lessening the stigma surrounding it. Engaging with the next generation plays a huge role in securing the success of our business and organisations like us. To support the future workforce, we are looking at how we can help disadvantaged students by funding scholarships at Abertay University, allowing better access to a career in food science. Building on our experience working with young people in schools, we’re running a more advanced enterprise project with a food theme for the first time. Again, bringing together several themes that are important to us – food, teamwork and communities. Most importantly, we will continue to lead this organisation in a way which preserves and extends a legacy of responsible ownership of the family enterprise. We have a very close connection to the land and to our communities. The Glenbervie estate where we are headquartered has been in the family since the 13th century. We certainly don’t want to put all that good work in jeopardy.


Macphie Corporate Social Responsibility report 2018/19 | macphie.com

| 23


contact:

Louise Shankley CSR & Engagement Executive E: louise.shankley@macphie.com T: 01569 740837

macphie.com

designed & produced by XIC.com

WANT TO KNOW MORE?