Community Policy > Statement of Policy GKN is committed to making a positive contribution to the communities and societies in which it operates. There are many ways in which we can be a good neighbour. We can promote good business practice, create opportunities for employment, support the introduction of people into the world of work and ensure that we are sensitive to the cultural issues which play a major part in the life of the local communities and wider societies within which our operations are located. GKN companies and their employees are expected to play an active and supportive role within their communities. In doing so they will be true to one of GKN’s Values and also nurture and sustain our reputation for fairness and integrity. > General Principles As part of our community involvement: 1. we will support projects and activities in our local communities and will encourage our employees to do the same; 2. we will seek to minimise negative impacts on the communities in which we operate; 3. we will endeavour to support local communities in our purchasing and recruitment policies; and 4. we will have processes in place to deal with any comments or complaints from local communities and to enter into dialogue with them as appropriate. > Practice Each company must have in place procedures for recognising, supporting and reporting on community activities in their locality. Companies must establish arrangements under which employees have responsibility for coordinating community activities within the company. Inevitably, the level of support will be constrained by the demands of the day to day business but nevertheless coordination of time and resources within set parameters will help to establish an awareness of activities in progress and set priorities for action. There are many ways in which GKN employees can be supportive of their local communities. It is for individual companies to determine what is appropriate for their communities at any particular time. The following is a list, which is neither prescriptive nor exhaustive, of activities which have been undertaken by GKN employees throughout the world and which can serve as examples for others to follow: • providing paid time off for employees involved in community activities • fundraising for local causes, through organised events such as Open Days, or through collections amongst employees • operating a payroll / charitable giving scheme • providing volunteer support for community projects v1 – June 2006 -1- • • • • • • • • • • • > making learning facilities available for local organisations and community bodies and promoting standards of literacy and numeracy within the local community as well as for all employees building regular links with local education establishments in order to promote engineering or manufacturing to students as a future career option providing professional mentors and coaches for young people about to enter the workplace providing structured work experience placements for young people from the local community making industrial placement opportunities available for students as part of their vocational or vacation training activities operating apprentice training schemes and making specialist training facilities available to non-employees through local training organisations implementing supervised training programmes for graduate engineers in accordance with the standards of professional registration bodies contributing to industry bodies and other partnerships to represent the Group as well as the individual company and to promote the spread of good business practices involvement in local environmental projects charitable giving being ready to act in response to local or national emergencies. Reporting In a time when large companies are judged by more than just their financial performance it is important that we can demonstrate our corporate social responsibility. The way we engage with our communities is a key measure which enables us to judge just how well we are living our values. At the end of each calendar year, companies must report on their community involvement during the previous twelve months to the Group Secretary who is responsible to the Board for reviewing and monitoring the Group’s performance on social responsibility. The report must include as a minimum the following information: • the cost of volunteering hours (paid) • hours of unpaid support (per employee) given to the activities of community bodies and the nature of that support • contributions to charitable bodies • examples of projects / programmes supported in cash or in kind. Examples of good community practice will be celebrated on a regular basis on the Group’s website and intranet and in the Annual Report to shareholders. This Policy must be read in conjunction with the GKN Code, the other GKN Policies and the requirements regarding their implementation. v1 – June 2006 -2-