Chairman's introduction
The Aviva board has a clear view of the importance of corporate social responsibility (CSR) to the success of the business.
It is vital for a business to remain alert and responsive to the changes taking place around it. Its future depends upon how well aligned it is to the society in which it operates. CSR is now firmly on the business agenda.
Legislation and regulation are often simply a reflection of the fact that society believes that mistakes are being made and need to be corrected. If a business simply tries to hide away from the issues that confront society, if it lies low and is simply reactive, it deserves and must fully expect to be occasionally prodded into action by the stick of legislation.
Pehr Gyllenhammar
Chairman
A responsible business is one which keeps a clear eye on all external developments. It needs to lead or, at least, participate in debating the issues. It must develop its own values, its own ethics, its own policies and all of these must live in the actions of its workforce and not be merely empty words that live on paper alone. This is the challenge which Aviva is now seeking to meet.
Like so many other human activities, business is ultimately about relations with other people. If a business has the right approach to ethics, if its driving motivation in all its dealings is to be honest and fair with all of its partners, then it is earning its licence to operate and it will thrive. If it focuses its gaze only on the narrow spot of its own gain to the exclusion of other considerations, it will rightly lose the trust of its partners.
Whilst CSR covers many important issues such as relations with customers and the wider community, the environment and human rights, the core of CSR is ethical behaviour. If a business is not directed by its own considered set of ethics and values, it is simply adrift. The best means of embedding ethics and values in a business is through example. Whatever example is set at the top of an organisation will flow down through the structure. It is therefore the job of the Aviva board and the senior management to ensure that only good examples are set. Behaviour must be transparent and unambiguous.
At this stage, the linkage between CSR and corporate governance becomes quite clear. The strengthening of the Combined Code on Corporate Governance is simply a response to address what is perceived as being no longer appropriate behaviour. If there is no abuse and if the governance of a company is directed transparently by a sense of fairness and ethics, there is no need to restrain it. On the contrary, it will win respect and trust. Aviva’s annual report for the year already reports on compliance with the new Code one year in advance.
The Aviva board and senior management are thoroughly committed to the application of the revised Aviva standards of business conduct. They regard this as the centrepiece of the company’s CSR policy, which is unreservedly supported and viewed as a major contributor to our future profitability.
To re-inforce this clear commitment, I shall be attending this year’s CSR review group meeting in June, which will examine our strategy and progress and make plans for the future.
