Creating Effective Engagement with our Key Stakeholders (s.172)
Effective engagement with our key stakeholders and managing our impact on stakeholder interests
Effective engagement with our stakeholders is critical to the business. It helps us to appreciate the impact our decisions have on stakeholder interests and better understand their needs and concerns. It strengthens our relationship with them, is an ongoing part of the operational management and governance of the Group, and is key for long-term sustainable growth.
As required by s172 of the Companies Act 2006, a Director of a company must act in the way they consider, in good faith, would most likely promote the success of the company for the benefit of its shareholders. In so doing, the Director must have regards, amongst other matters, to the:
- Likely consequences of any decision in the long-term.
- Interests of the company’s employees.
- Need to foster the company’s business relationships with suppliers, customers and others. • Impact of the company’s actions on the community and environment.
- Desirability of the company maintaining a reputation for high standards of business conduct.
- Need to act fairly between members of the company.
How AMS met s172 requirements in 2020
The Board received regular updates on how the business has engaged with stakeholders, any feedback received and the impact on existing policies and procedures. Board reports consider the impact on stakeholders. Enhanced Environment, Health and Safety Reporting was put in place to better understand how to reduce the impact on our communities. The move from sustainability to Environmental, Social and Governance (ESG) reporting, and how to best meet market expectations, is now a key project for the Group and stakeholders will be engaged in the ESG process in 2021. Ensuring high standards of business conduct is critical for the success of the Group. The Board receives regular updates throughout the year on ethical and compliance issues. Our Corporate Governance Report (link) identifies policies and guidelines governing our approach to anti-corruption, anti-bribery, social matters and human rights. Consideration of the long-term impact of decisions is integral to approval of the strategy. Our strategic progress in 2020 is disclosed in the Chief Executive’s Q&A (link) and Our Strategy (link).
An overview of the Board’s 2020 engagement with stakeholders who are material to the long-term success of the business is explained in the Stakeholder Engagement section of the Annual Report, which can be found via the link below.