Ethics & Values

Human Rights and Ethical Business

The Group is fully committed to respecting internationally proclaimed human rights under the International Declaration of Human Rights and the International Labor Organisation's standards in all its business activities. Implementation of the UN Global Compact's principles is a demonstration of this commitment.

The Group has a zero tolerance policy on forced and child labour and through this policy is contributing towards the effective abolition of child labour. Starting in 2011, the Group has undertaken a review of its assessment criteria used for suppliers during the procurement selection process to reflect a range of ethical issues,
including human rights. These new criteria will be applied to all new suppliers going forward and over the next year will be retrospectively applied to existing major suppliers to ensure they are in compliance. All Rotork agents are required to comply with the Rotork Ethics and Values statement which, amongst other things,
guarantees a standard of human rights be adhered to, in accordance with Global Compact principles.
Click to view Ethics and Values Statement.

The Group also has a whistleblowing policy which allows employees to make senior management aware of any wrongdoing in the business.
Click to view Whistleblowing Policy.

Outcomes

In 2011 the Group:

• Terminated no contracts on the grounds of non-compliance with the Ethics and Values statement or unethical behaviour;
• Commenced work into assessing new and existing suppliers on ethical grounds;
• Commenced the development of an ethical performance survey for all employees regarding awareness and training on ethics and values;
• Published an article on ethical issues in Rotork's internal global newsletter One Rotork;
• Translated the Ethics and Values statement into five Asian languages including three Indian dialects to enhance understanding amongst employees and business partners;
• Had no claims made against it on unethical or humanitarian grounds;
• Scored a FTSE4Good rating of 3.8/5 which is above the UK average.

Bribery and Corruption

The Group has a zero tolerance policy on bribery and corruption worldwide, which applies irrespective of country or business culture. The Group's Ethics and Values statement prohibits employees offering, paying or soliciting bribes in any form. The Group also requires all its worldwide agents to sign up to
this undertaking. The Group's policy is also not to make any political contributions in cash or kind anywhere in the world.

The Group's whistleblowing policy gives employees a platform to alert senior management to any suspected bribery or corruption.

The Bribery Act 2010 came into force in April 2011. The Group has ensured that it complies with the Act's six principles globally by reviewing its procedures and practices and by re-emphasising top level commitment to its aims and objectives. During the year, the Ethics Committee undertook a risk review to identify major risks for Rotork with respect to geographical, sectoral and business opportunity risks. The Chief Executive personally briefed general managers and senior worldwide sales managers on the Group's zero tolerance policy. Managers also received presentations on the application of the Bribery Act 2010 and bribery and
corruption. Agents are required to comply with the Ethics and Values statement which encompasses the Bribery Act's obligations. The Group's internal audit processes include review and monitoring of potential bribery and corruption risks.

Outcomes

In 2011 the Group:

• Had no investigations or legal proceedings brought against it for bribery or corruption;
• Trained general managers and senior sales staff, including training on how to effectively train their staff on the provisions of the Bribery Act;
• Incorporated bribery and corruption audit procedures as part of its internal audit process.

Further reinforcement of bribery and corruption training will take place in 2012 through direct engagement with staff using various communication methods.