Section 172(1) statement
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,
a. the likely consequences of any decision in the long term;
b. the interests of the company's employees;
c. the need to foster the company's business relationships with suppliers, customers and others;
d. the impact of the company's operations on the community and the environment;
e. the desirability of the company maintaining a reputation for a high standard of business conduct; and
f. the need to act fairly as between members of the company
As a part of their induction, 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 from the Company Secretary or, if they judge necessary, from independent advisors for effective discharge of their duties.
The Company continues to be true to its purpose while playing a fundamental role in the provision of medicines and healthcare services across the U.K. When making any decisions, during the year ended 30 September 2024, the Directors considered, both individually and together, the matters set out in section 172(1)(a-f) 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. Below are some of the ways in which the Directors have engaged with various stakeholders and fulfilled their duty under this section.
Employees: All staff and Directors were employed and paid on behalf of the Company by a fellow Group undertaking and the Company is recharged for their services. The Directors consider employee engagement a critical factor in the long-term sustainable success of the Company. The Company has a number of different employee forums with the aim of assessing employee engagement levels and identifying key concerns that have representation of all areas and locations of our busins. A number of actions have been implemented during the year including various employee welfare related improvements at the Company's facilities. Development programmes have taken place throughout all sites for first line managers and team members. The Company also has an e-learning platform with an expanding suite of learning modules.
Creating healthier futures starts with the health of team members, and as a purpose-driven company, the health and well-being of team members is fundamental to the Company. The Company is also committed to fostering an inclusive and diverse workplace and treat the people behind the organisation with dignity and respect so that they feel supported, appreciated and valued both inside and outside of work. This aligns to our wider global aspiration of fostering a global workplace that values diversity, equity, and inclusion, by creating pathways for every team member to thrive, making a positive impact on our communities. The Company also conducts mandatory learning to every team member to build a foundation of knowledge. The Company has launched its first employee resource group, WIN (U.K.) Pilot Chapter, whose mission is to create an inclusive environment where women and allies can connect, collaborate, learn and support one another in their personal and professional journeys.
The Company recognises important events locally that connect with our team members throughout the year such as Pride month, Black History month, Diwali, global inclusion day and International Women’s Day to name a few so that team members feel connected, supported and proud to be their true, authentic selves in and outside of the workplace.
Customers: The Directors strongly believe in treating customers fairly and providing them with safe and quality products and a superior service. The Company has adopted multiple ways to engage with customers, these may include events, face-to-face interactions and surveys. A customer survey is undertaken annually and the results reviewed by the Directors. The Directors use these processes to understand the views of the customers and consider the impact of their decision on customer’s interest.
Suppliers: The Directors aim to ensure that the Company operates fairly, transparently and with integrity with its suppliers and values this relationship of strategic importance. The Company engages with its suppliers through multiple channels, both formally and informally. These engagements provide the Directors with a broad and diverse understanding of supplier priorities and allows them to take into account the interest of suppliers while making decisions.
Community: The Directors value an open dialogue with the communities in which the business operates. This allows the Directors to understand how these communities view the business and the emerging needs of these communities. It also enables the Directors to take into account the impact of their decisions on these communities. The Company, either directly or through its associated companies, engages with the wider community through multiple means which could include social media, charity events, and engagement with various associations, among others.
The Company partners with International Health Partners (IHP) to provide essential medicines to hard to reach places around the world. Through this partnership the Company managed the Essential Health Packs packing program. Each pack contains around 800 treatments comprising a broad assortment of over-the-counter and prescription medicines: from antibiotics and painkillers to anti-inflammatories and medications for chronic conditions.
Environment: The Company considers the care of the environment as an integral part of running a responsible and successful business. Measures to reduce CO2 emissions have been implemented through investments in technology and lower emissions vehicles. All of the Company’s energy is sourced via 100% renewable energy and no waste is sent to landfill.