Community

The Company's Place in the Local Environment

Northern Rock Community Policy Statement
Following Northern Rock Building Society's conversion to a plc in October 1997 we are committed to donating 5% of pre-tax profits to the Northern Rock Foundation under a Deed of Covenant. The Foundation is an independent grant making grant-making organisation where donations are used to support community and charitable causes in the North East of England and Cumbria.

In addition to this significant (and sustainable) cash contribution to the Foundation the Company also supports, from time to time, local organisations where there are tangible benefits to both the Company and the recipient organisation.
We also encourage staff to participate in a wide range of community activities by using the Intranet as a message board for organisations seeking resources and the Foundation will match £ for £ all funds raised by the staff member concerned.
We encourage staff to nominate a "charity of the year" and full support is given to staff in their fund raising efforts.
Where equipment becomes surplus to requirements the Company will make all reasonable effort to source an organisation who could make use of it prior to it being disposed of in the conventional way.

Donations made by Northern Rock to The Northern Rock Foundation since our conversion are as follows:

1997		£2,023,452
1998		£9,980,589
1999		£10,757,730
2000		£12,505,904
2001		£14,760,749
2002		£16,311,760
2003		£19,300,000
2004		£21,560,000
2005		£24,706,549

Total		£ 131,906,733

NORTHERN ROCK FOUNDATION TO DOUBLE–MATCH STAFF GIVING

From January 2006 the Foundation will give £2 for every £1 donated or raised by Northern Rock plc staff.

The Foundation’s Trustees have decided to build on the staff matched giving scheme’s success and to encourage more people to make charitable donations.

Donations will only be made to UK registered charities or exempted charities (churches, schools etc). For Irish employees there are provisions to identify charities through the tax system.

Any staff who are already donating through the Give A s You Earn Scheme will automatically receive the increased match figure, and any increase in their own personal donation.

Northern Rock is an active member of many local community and business groups, among these are:

Newcastle Employment Bond
Northern Rock works in the community alongside various partners. The Newcastle Employment Bond, sponsored by business and community leaders in 2001, is helping to create several hundred new jobs and assist thousands of people into work.

Co-ordinated by Citylife the Employment Bond concept is a relational approach to tackling unemployment.

David Baker, Deputy Chief Executive at Northern Rock is the Chairman of the Newcastle Employment Bond Ltd.

The key strengths of the Employment Bond are that it:

Provides new money to tackle unemployment
Raises the profile of unemployment in the city
Engages local stakeholders to tackle urban unemployment and build across the social divide
Invests in the local community and builds a stronger local identity

The Bond was launched to the business community at St. James' Park in September 2000. By the time the Bond closed on 1 June 2001, £2,027,310 had been raised. In addition, donations were received towards running costs.

Money has been provided to a number of companies either in the form of loans or donations that are helping North East people. Partners include:

North British Housing have refurbished Bewick Court - one of Newcastle's most visible buildings situated in the city centre. The 19-storey tower block, owned and managed by North British Housing, comprises a mix of one and two bedroom flats for affordable rent and houses 200 residents. Working with a consortium of local partners, North British Housing has transformed the 1970 built tower block into a modern day landmark. This project is now complete.

Street NE make micro loans to micro entrepreneurs who are struggling to find finance for their business and base the loans on the amount of free cash they can comfortably afford. Street UK's new and innovative approach provides a hand-up rather than a hand-out to people and empowers them to help themselves, instead of compensating them for their poverty and keeping them permanently dependent. This represents charity at its best and business at its most worthwhile.

Tomorrow's People offer training and ensure sustainability by securing permanent positions for long-term unemployed people. They mentor individuals for at least six months and ensure any problems are resolved at root level, assisting in employment retention. The official "getting Newcastle Working" launch was 2nd April 2001. Working in some of the most challenged areas in the city, Tomorrow's People has set up 5 outreach centres, and established links with many organisations such as Tyneside Careers, Employment Service, Shaw Trust and Access for the Disabled. They are also building links with SME's in the area.

Project North East , Enterprise for All Project - The project intends to support people from Newcastle to set up creative or cultural business by providing information, guidance and training support. A combination of information, skills development and personal counselling enables all participants to learn new abilities and ways of thinking, and provides practical support for those who go on to start an enterprise.

Rehab UK , established in 1999, is a Newcastle charity designed specifically to help clients who have suffered brain injury back into sustainable employment. The vocational programme assists individuals who wish to return to work, prepares them for this significant step back into society and then works with the individuals and employers to sustain employment.

Reviving the Heart of the West End/Cornerstone builds on the achievements of the Training Strategy of the Reviving the Heart of the West End Single Regeneration Programme. An outreach worker will be appointed to use all available channels to reach local people to ensure that they are aware of the opportunities created through the Training Strategy and the City West development site. Over the next 18 months companies will be occupying this site and bringing c. 1,300 jobs to the area. The worker will be a key link in ensuring that local people are to benefit from this development.

Northern Rock has played a key role within the Newcastle Employment Bond, a group of Northern Rock employees worked together to ensure the Bond was a success. They assisted with:

Legal issues
Marketing issues
Fund raising and general administration tasks

Everyone's hard work has paid dividends and the Newcastle Employment Bond has achieved what it set out to do.

North East Enterprise Bond
The North East of England has half the UK average of business start-ups. Perhaps even more worryingly, a recent City and Guilds survey found that the entrepreneurial spirit amongst our young people is lower than in any other British region. Only 38% of young people in the North - East would even consider setting up their own business. This statistic has been dubbed the “Enterprise time bomb.”

Increasingly, small to medium enterprises are providing employment for large numbers of people across the UK. Today around 30% of employment in the UK’s private sector is provided by for firms which employ 10 people or less. Unless the North - East catches up with this culture shift, our unemployment levels will continue to grow.

Innumerable social studies have proven that unemployment leads, in turn, to a wide range of unpleasant social issues including poverty, crime, drugs, housing, domestic violence and family breakdown.

Having considered the statistics facing our region, the board of the Newcastle Employment Bond have decided to change their name, broaden their geographical area of concern, and to launch a project which will help communities across the North - East. The North East Enterprise Bond is a registered charity which is taking positive steps to build confidence and broaden the aspirations of people across the North East of England.

The Enterprise Bond aims to raise up to £5 million from the private and public sectors using the same principals as the original Employment Bond. We are asking companies, trusts and individuals across the region to invest in a bond for five years. The interest from their investment will be used to purchase, set up and run an Enterprise initiative, which is unique in our region.

Our plan is to establish two highly interactive mobile classrooms or “Launch Pads.” The Launch Pads will visit schools, colleges and community centres, helping to begin changing the culture of the region. We will offer a range of inspiring, hands-on sessions designed to encourage visitors to think in an enterprising way and to consider setting up their own business or social enterprise. By making repeat visits to each group, we will reinforce our messages and gradually change or develop the aspirations of our community.

We are currently working to identify a number of partner organisations, who will use our Launch Pad to deliver a range of carefully targeted, stimulating programmes. Our public sector partners are helping us to identify and evaluate those organisations who can create and deliver truly exciting and thought provoking sessions. Equally importantly, our private sector network will help us to enlist the help of role models, local people who have succeeded in establishing their own business and who will spend time on the Launch Pad. We believe that their input will help to convince our visitors that working for yourself is rewarding – both personally and financially – and that it is a very real option for ‘people like them.’

For those who are inspired to take their ideas further, we will also offer a ‘sign posting’ resource – helping them to identify exactly what support they will need and to contact those local agencies who will be able to help them.

In time, as these people develop the will to start up on their own, and are well supported in doing so, they will also be helping to create employment and prosperity within our community.

The North East Enterprise Bond is chaired by David Baker and managed by a group of local business people and public sector leaders who give their time voluntarily. The charity currently employs one part time Chief Executive who is supported by a part time administrator, (funded by Northern Rock plc). Once again, the Bond will be managed for us by Citylife Ltd. Citylife are a charitable organisation, registered with the Financial Services Authority, who originated the idea for such social investment schemes and have managed Bonds successfully in Sheffield, Cambridge, Kent, Inner London, the Welsh Coalfields and, of course, Newcastle.

To date, a number of investors, including the Northern Rock Foundation, the Greggs Trust , Grainger Trust plc and Sage plc have indicated that they are willing to support our Launch Pad project. Their pledges, if fully realised, total £2.1 million. We have also secured both financial and practical support from One North East and the sub regional partnerships.

The offer period for the North East Enterprise Bond will open in April 2006 and close in July 2006. We aim to begin operating the first Launch Pad in September 2006.

For further information about the North East Enterprise Bond or the Launch Pad programme, please contact Nikki Wilkinson, Chief Executive for the Bond, on 07940 812462.

NewcastleGateshead Initiative
The NewcastleGateshead Initiative was formed following an historic partnership agreement between Gateshead and Newcastle to raise the profile of the area to an international level and has the support of the private sector.

It is a company limited by guarantee with a Board of Directors (including a representative from Northern Rock as Deputy Chairman) drawn from both local authorities and leading business people in the region.

This is the first time that Newcastle and Gateshead have worked to promote the area together and the joint initiative takes advantage of the potential of the exciting new developments on both sides of the River Tyne to make a real impact on local economic prosperity.

For the first time, one organisation is responsible for marketing Newcastle and Gateshead as a preferred place to visit and a thriving conference and business destination. It also promotes major events being hosted by the area, such as Tall Ships 2005, to the local population and across the world.

North East Chamber of Commerce
The Chamber is an Independent organisation of growing influence supporting its 5,000+ members and providing services to a broad customer base.

Northern Rock's Director for the North East is also Chairman of the Tyne and Wear Committee of the Chamber of Commerce.

It is the largest and only regional Chamber of Commerce in the UK, supporting its members by:

assisting them to secure more business, both at home and abroad;
helping them to operate better businesses by providing information, support, protection and opportunities to save money; and
promoting better conditions in which businesses can operate.

Northumberland Wildlife Trust
Northumberland Wildlife Trust is the largest voluntary organisation caring for wildlife in Northumberland, Newcastle upon Tyne and North Tyneside.

The Trust campaigns for nature conservation and helps to inform, educate and involve people of all ages in protecting their environment.

Thanks to the support of its members and volunteers, the Trust manages and protects critical habitats at over 60 nature reserves across the region. These contain large numbers of species that everyone can enjoy through the Trust's policy of open access for all.

Urban and rural communities are encouraged to take an active role in conservation through educational and voluntary activities that enable wildlife and wild places to thrive for generations to come.

A further link has been formed during 2005 between Northern Rock Corporate Training Department and Northumberland Wildlife Trust and teams of Management Trainees will become involved in project work at some of the Trust’s nature reserves during 2006.

Northumbria Coalition Against Crime
Northumbria Coalition Against Crime is an independent registered charity working to reduce crime and improve the quality of life for those living in the North East through partnerships with the public, private and voluntary sectors.

Membership of the Coalition is drawn from industry and commerce, the police, local authorities and individuals who all share a wish to reduce crime and the fear of crime in the North East region.

In addition to Northern Rock's corporate involvement, a member of Northern Rock's staff is the Company Secretary and a Director of the Northumbria Coalition Against Crime.

Durham Agency Against Crime
Formed in 1990, Durham Agency Against Crime is a limited company and a registered charity working in County Durham and Darlington.

The Agency support and introduce Community Safety initiatives to reduce crime and the fear of crime with the intention of making County Durham and Darlington a safer place to live, work and invest.

Durham Agency Against Crime are particularly active in initiatives, which:

safeguard people and property from crime
promote and recognise the achievements of young people
assist other groups whose work impacts in this area

North East Business Awards
Northern Rock has been the sponsor of the Business in the Community Award section of the North East Business Awards since 2003. This recognises success in Durham and Wearside, Tees Valley, Tyneside and Northumberland - very much Northern Rock's traditional home territory. The Awards culminate in a regional final at which the overall winner is announced. Northern Rock believes that the involvement of businesses in their local communities can bring benefits of help and assistance not only to the recipients but also - and of equal importance - to the businesses concerned. The North East Business Awards encourage and recognise companies that make a committed and pro-active contribution to their local communities.

The Journal North-East Business Awards
Newcastle Chronicle and Journal stages the awards in association with Gazette Media Company and Northern Rock is the corporate sponsor of the Regional Business in the Community Award.

The purpose of the competition is to encourage and recognise companies that make a committed and proactive contribution to the community.

The judges pay particular attention to evidence of imagination and commitment. The cash value of contributions is a secondary consideration.

The Newcastle Young Professionals Forum
The Newcastle Young Professionals Forum has been designed as an all-encompassing organisation which provides an excellent networking facility for young people in professional life to develop business relationships in a social environment. Business relationships are built up by frequent contact and are based on mutual understanding and trust.

For the next generation of young professionals working their way up the ladder, the amount of time that they have to spend at their desk often means it is much harder for them to build up networks for themselves. Younger and less qualified professionals often take the view that there are few opportunities to make beneficial contacts because this usually takes place at a more senior level.

The Forum provides opportunities for any member of the North East business community, aged 35 and under, to meet their peers in an informal environment. It enables individuals to build lasting and active relationships which can mature profitably over the years to come.

Student Prize Award - BSc (Hons), Estate Management, Northumbria University
For the second year running we again sponsored the award for the top final year part-time student on this course programme. The winner, Charles Higgins was commended as an outstanding student throughout his 5 years of study.

Our support and prize details are incorporated into the main graduation booklet issued by Northumbria University.

The Jason Flowers Award
The Jason Flowers Awards are cash prizes awarded annually by Northern Rock to the top performing students graduating in Economics from the University of Northumbria.

In 2005, three prizes were awarded. Two went to the students with the first and second highest marks in Economics and the third to the student with the highest joint-honours marks including Economics. The prizes were awarded to the students at a ceremony immediately following their graduation in summer 2005.

The awards are made in memory of Jason Flowers who joined Northern Rock's graduate training programme in July 1996, having graduated in Economics from the University of Northumbria. Tragically, Jason died in November 1996, by which time he had already established himself in his role and was clearly going to achieve success in his career with Northern Rock.

As a result of the close connections between Northern Rock and the University, and the desire of both organisations to create a memorial to Jason, the Awards were established.

In addition to the Awards, Northern Rock recently opened the Jason Flowers Learning Centre as a permanent memorial to Jason.

This is a learning facility located in the Training Centre at the Gosforth Head Office. Well-equipped with a range of learning materials and facilities such as internet access to study sites, the Learning Centre provides staff who are studying for qualifications alongside their jobs with an excellent location to pursue their studies on site.

The Arts
In addition to community and business groups the Company is also involved with a number of initiatives within the art world.

The Sponsors' Club for Arts and Business
Business members of the sponsors club for arts and business are champions of the arts, museums and heritage in our region and indirect sponsors and supporters of dozens of high quality cultural projects every year.

The aim is to help businesses benefit from commercial and creative relationships with the arts, museums and artists of the North East, and to help the cultural sector benefit from the financial and professional support that the business community can give.

The Sponsors Club believes that mutually-rewarding partnerships are possible that will enhance both sectors, and advice, case studies, training and some financial investment is provided to help develop these collaborations.

Morpeth Arts Scheme
As part of a scheme to improve environmental and tourist facilities in Morpeth 3 ancient alleyways leading off Morpeth town centre are to be refurbished in a £125,000 Heritage investment programme. Some of the alleyways date back to medieval times and have been selected by the Partnership Group - Morpeth Pride as the first phase in a project to improve 5 alleyways.

The scheme will introduce architect designed lighting, new floorscapes, improved signs and Heritage artwork. We are working in partnership with the Morpeth Pride Regeneration Project and will be contributing financially toward the scheme as one of the subject alleyways is immediately adjacent to our branch office and leads through to our rear car park area.

Tyne & Wear Museums' Business Partnership
Northern Rock is a member of the Tyne & Wear Museums Business Partnership which was formed in 1991 as the Laing Art Gallery Business Club. In 1996 the benefits of membership were extended to all of Tyne & Wear Museums and the Laing Art Gallery Business Club became known, first as the Corporate Club and then in 1998 as the Business Partnership.

Northern Rock Plc, along with other members now support the work of Tyne & Wear Museums through the Business Partnership and in 2004 Northern Rock became patrons of the scheme. Each year Business Partners contribute to a special fund that supports a wide range of museum activities such as temporary exhibitions, education and outreach projects, equipment purchases and market research. The Business Partners Fund has also provided matching money that has helped to secure significant grant aid from the National Lottery.

A further link has been formed during 2005 between Northern Rock Corporate Training Department and Tyne and Wear Museum’s Partnership and teams of Management Trainees will become involved in project work at some of the Museums during 2006.

Durham Sinfonia
Durham Sinfonia is a large independent symphony orchestra comprising gifted musicians from the North East. The orchestra, a registered charity currently sponsored by Northern Rock, engages professional conductors, leaders and soloists of international repute, players coming together just three times a year to perform challenging orchestral works to the highest standards.

Measurement of Company Contributions

Directory of Social Change (DSC)
Is an internationally recognised, independent source of information and support to voluntary and community sectors worldwide. DSC believe the activities in which voluntary and community organisations engage are crucial, both to the causes they serve and the social environment in which they operate. They are able to contribute towards positive social change by supporting such organisations to succeed.

The Guide to UK Company Giving is published by the Directory of Social Change and in the guide published in January 2005 Northern Rock came:

2nd in the top 25 league table of companies for statutorily declared UK charitable donations 2003/4 and joint 4th in the top 25 league table for UK community contributions 2003/4.

Charities Aid Foundation
World-wide Community Involvement - Top 500 Corporate Donors 2003-4
The list only includes worldwide community involvement (WCI) by UK companies listed on the London Stock Exchange.

WCI includes the worldwide donations of the larger multinationals that have global operations as well of those of purely UK companies.

In the last Charity Trends report 2005 Northern Rock was ranked 10th and the rankings for this and previous years are: the last five years are:

2003-4	2002-3	2001-2	2000-1	1999-01	1998-99
7	10	11	19	12	19

The 2005 Guardian Giving List of Corporate Charitable Donors
Northern Rock came 2nd in the 2005 Guardian Giving List of corporate charitable donors.

The List is an annual survey on the way in which business engages with the wider community, based on information including: pre tax profit giving, employee volunteering company time, staff secondments and administration.

PerCent Club
Launched in 1986 by HRH the Prince of Wales as a benchmark for corporate community investment in the UK, the PerCent Standard consists of nearly 300 companies who are committed to making an investment in the communities in which they operate. These companies are required to make a minimum investment of 1% of UK or global pre-tax profits.

The Company believes in the Per Cent Club principle that corporate community involvement not only develops relationships with the local communities, it also supports a whole range of business objectives such as building brand familiarity, boosting staff morale, developing skills and generating positive media coverage.

Northern Rock was again awarded the % Club Standard in 2005.

London Benchmarking Group
Northern Rock is a member of the London Benchmarking Group.

The London Benchmarking Group and its model for the management and measurement of corporate community involvement, have been helping member companies effectively assess and target their community programmes since 1994.