Operational review:
ARG
Policy
GUS takes an active role in community activities, supporting charities and working directly with local projects:
- Taking part in these activities is popular with our staff – they feel that they are contributing to their communities and that the company is supporting them in this. They are also able to learn new skills when working together.
- Developing stronger communities, either locally or nationally, has knock-on benefits for the business: It can make customers feel more predisposed towards GUS, it can create a better environment for commerce and trade and it can increase awareness of the company, attracting a wider pool of high quality recruits.
- The resources of the Group can have a profound impact on charitable and community projects, through both direct giving and also through the in-kind contribution of the Group businesses.
As in previous years, the GUS community engagement programme in 2005/6 included two elements working together: the work of the GUS Charitable Trust and the activities planned and delivered through the Experian and ARG. Many of the Group’s most successful projects have seen the cash contribution from the Trust being amplified by the in-kind support from the business, resulting in a gearing effect that doubles or triples the impact of the project.
Community investment - inputs
Percentage = (Cash + Volunteering + In-kind + Management) / pre-tax profit
In the year ending March 2006, the total value of the Group’s charitable and community programme was £2,510,000 representing [??%] of pre-tax profits. The figure was slightly lower than last year, reflecting the impact of a number of large one-off donations made during 2005 following the Indian Ocean Tsunami (£310,000). Once this effect has been accounted for the total rose slightly (by 5%).
This total comprised the following elements:
| 2006 | 2005 | 2004 | 2003 | |
|---|---|---|---|---|
| Contribution to the GUS Charitable Trust | £1,056,000 | £1,365,000 | £1,240,000 | £963,000 |
| Employee volunteering | £175,000 | £113,000 | £65,000 | £103,000 |
| Gifts in kind and donations | £281,000 | £179,000 | £191,000* | £180,000 |
| Other costs of community programmes | £998,000 | £1,047,000 | £305,000 | £313,000 |
| Total | £2,510,000 | £2,704,000* | £1,801,000* | £1,561,000 |
| *figures re-stated to exclude Burberry and give a like-for-like comparison | ||||
These figures are analysed in more detail in the table and in the reviews from each business.
| Volunteering | Gifts in Kind | Other (mainly mgt costs & cash budget) |
Total | |
|---|---|---|---|---|
| Experian | £122,000 | £262,000 | £825,000 | £1,209,000 |
| Cf. 2005 | £60,000 | £163,000 | £669,000 | £892,000 |
| ARG | £53,000 | £19,000 | £173,000 | £245,000 |
| Cf. 2005 | £53,000 | £16,000 | £378,000 | £447,000 |
| Total | £175,000 | £282,000 | £998,000 | £1,209,000 |
| Cf. 2005 | £113,000 | £179,000* | £1,047,000 | £ 1,339,000* |
| *figures re-stated to exclude Burberry and give a like-for-like comparison | ||||
Note: The 2005 figures included under the category ‘Other (mainly cash costs and budget)’ includes £310,000 donations following the Indian Ocean Tsunami.
Community investment - benefits
Aggregating widely differing multiple community projects to provide a simple statement of overall impact is not possible. Potential impact is however a key part of the initial assessment of projects. The Charitable Trust favours those projects in which its investment will achieve the greatest future leverage – for instance triggering substantial investment from local or national government sources – or those which will leave a charity, cause or condition better off as a result of the Trust’s involvement. Evaluation continues through the project’s life as interim status reports are received. ARG and Experian have similar approaches looking at likely community benefits and the extent to which the impact continue after our involvement with the project ceases
Each of the case studies described below reports the impact of the project – both to the recipient organisation (and the wider community) and in the business.
