Shareprice

How the Board engages with its stakeholders

OUR “BUSINESS PRINCIPLES” IDENTIFY CUSTOMERS, COLLEAGUES, SUPPLIERS, THE ENVIRONMENT AND COMMUNITIES AS OUR PRINCIPAL STAKEHOLDERS IN ADDITION TO OUR SHAREHOLDERS, AND OUR CORPORATE RESPONSIBILITY REPORT SETS OUT MORE DETAIL ON HOW WE MANAGE OUR RELATIONSHIPS WITH THEM. THE TABLE BELOW SETS OUT HOW THE BOARD ENGAGES WITH EACH OF THEM:

CUSTOMERS

How the Board engages

  • Customer insight report in Management and Board packs, which includes customer satisfaction scores.
  • Customer KPIs reported in Management and Board packs.
  • CEO/Deputy Chairman reply personally to a number of high-level customer contacts.
  • Management and Directors visit stores regularly:
    • Listening to customers through focus groups.
    • Via Facebook groups local to our store.

Why we engage

Our purpose is to help our customers create a home they love.

We welcome all customers, whatever their age, taste or budget, and offer them the widest range of products for their homes, whenever and however they want to shop.

Issues relevant to this group

  • Product range, price and quality
  • Convenience and accessibility.
  • Health and safety.
  • Customer service.
  • Fair marketing.
  • Product safety.
  • Responsible use of personal data.
  • Environment.
  • Ethics and sustainability.

What we did as a result of our engagement

Prioritised customer safety and sentiment in restarting all of our operations through the Covid-19 crisis.

Reviewed our product ranges to better communicate how they represent ’value for money’.

Provided information on pack recycling and started to replace our plastic packaging with recyclable alternatives.

Improving post-sale customer experience is a priority focus area for FY21.

COLLEAGUES

How the Board engages

  • Designated Non-Executive Director has Board responsibility for championing the interests of colleagues.
  • Regional and National Colleague Voice in place, feedback goes to the Executive Board and is acted upon.
  • NED attends two National Colleague Voice meetings a year and feeds back to the Board.
  • Annual Board discussion with National Colleague Voice representatives.
  • Full engagement survey twice a year.
  • Colleague KPIs in management and Board packs, and colleague dashboard reviewed twice a year.
  • Annual conference for store managers and senior support colleagues, attended by Chairman, Chief Executive Officer, Chief Financial Officer and Company Secretary.
  • Executive Board and Directors visit stores and other sites regularly.
  • Weekly and monthly ‘huddles’ held.
  • Independent whistleblowing helpline.

Why we engage

We believe that to be a great place to shop, Dunelm also needs to be a great place to work – we can only deliver great products and services to our customers through the hard work and commitment of our colleagues.

Issues relevant to this group

  • Fair employment.
  • Fair pay and benefits.
  • Gender pay.
  • Diversity and inclusion.
  • Training, development and career opportunities.
  • Health and safety.
  • Responsible use of personal data.
  • Environment.
  • Ethics and sustainability.

What we did as a result of our engagement

Ensured that colleague safety and wellbeing was at the forefront of all of our decisions taken in relation to the Covid-19 crisis, including our decisions to close and subsequently re-open all of our operations.

Put in place more stringent measures to protect colleague personal safety, including keeping the exterior lights on outside our stores later, providing training on how to deal with conflict situations, providing personal safety alarms and improved CCTV.

Provided more information on career development paths, particularly across different parts of the business.

Continued to enhance the range of benefits available.

SUPPLIERS

How the Board engages

  • Annual supplier conference held, attended by the Chairman and Executive management.
  • Deputy Chairman champions supplier interests at the Board.
  • Key suppliers attend the annual colleague conference.
  • Chief Executive Officer and Deputy Chairman meet regularly with key suppliers.
  • Annual Board presentation on ethical trading/modern slavery.
  • Supplier payment terms reported to the Board and published.

Why we engage

We do not manufacture the vast majority of the products that we sell; therefore we need to maintain relationships with suppliers and manufacturers worldwide who can meet our high standards.

Suppliers must demonstrate that they operate in accordance with recognised standards that uphold human rights and safety, prohibit modern slavery, and promote sustainable sourcing.

Issues relevant to this group

  • Fair trading and payment terms.
  • Anti-bribery.
  • Ethics and slavery.
  • Environment and sustainable sourcing.
  • Operational improvement.

What we did as a result of our engagement

Paid all of our stock suppliers, many of whom have been with us for many years, in accordance with agreed terms throughout the Covid-19 crisis, adhered to stock commitments, and provided advice and support to key suppliers.

Reviewed our ‘committed supplier’ base, to include suppliers based overseas.

Continued to audit our suppliers against our human rights standards, and to work with them to improve any shortfalls identified.

ENVIRONMENT

How the Board engages

  • Company Secretary chairs the Sustainability Focus Group, which co-ordinates our sustainability activities.
  • Energy, waste and emissions KPIs reviewed by the Board regularly.
  • Annual sustainability presentation to the Board.

Why we engage

We are committed to minimising the impact of our business operations on the environment. This is also important to our colleagues, customers and shareholders.

Issues relevant to this group

  • Energy usage.
  • Recycling.
  • Waste management.
  • Minimising waste, packaging materials and single-use plastics.
  • Sustainable sourcing (e.g. cotton, timber).
  • Emissions from company vehicles.

What we did as a result of our engagement

Set targets to reduce our energy consumption and waste, and monitored compliance.

Agreed a plan to work with the Carbon Trust in FY21 to measure our carbon footprint, set a long-term carbon reduction target and supporting plan; and to conduct a climate change risk assessment.

Refreshed our colleague engagement activity and set up working groups across the business to develop sustainability action plans.

Started to collate information on the environmental standards of our stock supplier base.

COMMUNITY

How the Board engages

  • Facebook groups local to our stores engage with our communities.
  • Charity appointed every two years to receive the focus of our company-wide activities. A representative of the company-sponsored charity attends the annual Company conference.
  • Charitable and community activity reported in colleague communications.

Why we engage

We aspire to be responsible members of our community as it reflects our principle to do the right thing. It is also important to our colleagues, customers and shareholders.

Issues relevant to this group

  • Charitable donations.
  • Employment opportunities.
  • Volunteering.
  • Environmental impact.
  • Fair tax policy.

What we did as a result of our engagement

Supported local communities through the Covid-19 crisis by providing care packs to vulnerable and self-isolating individuals.

Supported the NHS through Covid-19 by manufacturing gowns, and colleagues volunteered to sew wash bags for NHS workers and social carers.

SHAREHOLDERS AND POTENTIAL SHAREHOLDERS

How the Board engages

  • Annual Report and Accounts.
  • Corporate website.
  • AGM.
  • Results announcements and presentation.
  • Shareholder and analyst meetings with management, followed up by feedback from brokers and financial PR consultants.
  • Capital Markets presentation every 2-3 years.
  • Corporate Governance presentation every 2 years – last held January 2020.
  • Engagement via the Company Secretary.

Why we engage

Continued access to capital is important for our business. We work to ensure that our shareholders and their representatives have a good understanding of our strategy business model, opportunity and culture.

Issues relevant to this group

  • Long-term value creation.
  • Growth opportunity.
  • Financial stability.
  • Culture.
  • Transparency.
  • Ethics and sustainability.

What we did as a result of our engagement

Committed to reducing pension entitlement of newly appointed Executive Directors to the workforce average, and to reducing the entitlement of incumbents to this by FY23.

Hosted a showcase of our digital development capabilities and invited analysts and shareholders to our product press launch, to help them gain practical insight into our business.

Committed to reporting against the Task Force on Climaterelated Financial Disclosures by 2022.