Delivering value

CFS aims to deliver value to all its Partners in a balanced fashion over time, where 'value' is defined by the Partner, not by CFS. CFS is seeking to enhance the utility enjoyed by those groups on which its business is, to varying degrees, dependent. This is what makes CFS' approach to sustainable development a genuine triple bottom line sustainability strategy (ethics, ecology and value). True corporate sustainability relies not only on delivering social responsibility and ecological sustainability, but also on satisfying the desires and needs of a range of Partners.

Ascertaining priorities
Determining the views of Partners, such as Shareholders, Suppliers, Customers and Staff is relatively straightforward; research is usually carried out via a combination of focus groups, postal questionnaires, telephone and internet surveys. However, with Partners such as Society and the Co-operative movement, it is more difficult. In such instances it is necessary to identify and work with trusted proxy representatives - invariably charities and campaigning groups. To guide these discussions, the bank has its Ethical Policy, which outlines its approach to a range of ethical and sustainability matters. Follow this link to the bank's Ethical Policy. Work is underway to establish a customer-mandated Socially Responsible Investment Policy for CIS. Follow this link for information on CIS' SRI Policy Development. In relation to the Co-operative movement, CFS is guided by the internationally recognised Co-operative Principles,i.

Performance over time
In this first CFS Report, ethical and sustainability performance is attributed in most instances to either CIS or The Co-operative Bank. In 2003, the vast majority of staff, supplier and customer relationships, for example, were still distinct - with either CIS or the bank. Year-on-year comparison of performance is therefore still valid in most instances. One exception to this is the area of staff satisfaction, as measured by the staff survey process; where the inclusion of CIS Insurance Sales staff for the first time, and the advent of CFS central functions, renders year-on-year comparison very difficult. As a consequence of this, CFS staff responses are compared with an amalgamation of prior year data for CIS and bank staff. Follow this link for staff survey results.

As the bank has reported on sustainability for longer than CIS, its performance is discernible for a longer period of time. Going forward, as CFS consolidation proceeds, the lines between each business will become increasingly indistinct, and in many instances the only relevant perspective will be that of CFS.

Developments
In this Report, CFS provides an analysis of the financial costs and benefits of its pursuit of sustainable development. Follow this link to the sustainability value analysis. As part of this analysis, CFS discloses the contribution made by the bank's ethical and sustainability positioning. CFS also provides an analysis of the provision of banking and insurance products in 'deprived areas'. Follow this link for details of small business support in deprived areas. CFS provides details of staff satisfaction. Under the banner of 'Influence and action', details are provided of instances where CFS has sought to influence the social and environmental dimensions of various legislative proposals during 2003. For the first time, CFS reports on an ethical and sustainability analysis of the bank's corporate and business banking lending and deposits balance sheet (follow this link to the corporate and business banking analysis), suppliers' satisfaction with their relationship with CIS (follow this link for details of CIS suppliers' satisfaction), and customers' satisfaction with CIS, according to MORI (follow this link for MORI customer satisfaction data).ii Visit CFS' website iii for a full list of the standards and guidelines considered, and CFS' involvement in each.

Assurance
An assessment of the degree to which CFS succeeds in delivering value to its Partners is provided here by Mark Goyder, Director of Tomorrow's Companyiv. For further details, please contact Jayne Beer, Manager, Sustainability Reporting and Diversity (jayne.beer@cfs.co.uk).

i www.ica.coop/ica/info/enprinciples.html
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ii www.mori.com
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iii www.cfs.co.uk/sustainability2003/standards/
iv www.tomorrowscompany.com
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