Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the long term success of the company for the benefit of its members as a whole and in doing so have regard (amongst other matters) to:
- The likely consequences of any decision in the long term;
- The interests of the company's employees;
- The need to foster the company's business relationships with suppliers, customers and others;
- The impact of the company's operations on the community and the environment;
- The desirability of the company maintaining a reputation for high standards of business conduct; and
- The need to act fairly as between members of the company.
The directors of the company are briefed on their duties including those under section 172(1) and they can access professional advice on these either internally or, if they judge necessary, from independent advisors for effective discharge of their duties. When making any decisions, during the year ended 28 February 2023, the directors considered, both individually and together, the matters set out above and have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members, as a whole.
As a Board, we take decisions for the long-term and our aim is to always uphold the highest standard of conduct and act fairly. Similarly, we understand that our business can only grow and prosper over the long-term if we understand and respect the views and needs of our customers, colleagues and the communities in which we operate, as well as our suppliers, the environment and the shareholders to whom we are accountable. Below are some of the ways in which the directors have engaged with various stakeholders and fulfilled their duty under this section.
Employees: The directors pursue a policy to promote diversity and inclusion among employees. The company has various formal and informal processes to actively engage with its employees. These include employee performance reviews/appraisals and regular communications. The directors use these processes and engagements to understand employees' views and take these into account while making decisions. By way of example, employee engagement surveys are undertaken covering the majority of the workforce, with the results reported to the directors. Survey results are cascaded throughout the organisation, actions are identified through collaboration with the wider employee teams and resulting actions are communicated to colleagues.
Customers, Suppliers and other stakeholders: The directors strongly believe in operating in a transparent way in the marketplace, and treating its customers, suppliers and other stakeholders both equitably and fairly. The company engages with these stakeholders through multiple channels. These includes face-to-face interactions, social media interaction, surveys and the company’s corporate website. These engagements provide the directors with a broad and diverse understanding of issues most relevant to these stakeholders and allows them to take into account the interest of these stakeholders while performing their duty under section 172(1). The board want to ensure that customers get the best of the products offered, and guarantee continual improvement and stability of supply. This means having a robust supply chain, operational capacity and efficiency, committed employees, and compliance with strict quality and regulatory standards.
Community and the environment: The directors pursue a policy to promote environmentally sustainable practices including recycling, reducing energy consumption and using environmentally friendly packaging materials. The company works in collaboration with a local charity, which offers all employees the opportunity to volunteer in the local community.
Business conduct: All employees consent to uphold the values expressed in the company’s Code of Conduct. Additionally, Amazon Filters employees have to complete online training courses on anti-bribery and corruption and equality and diversity.
