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 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 regular) 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 encourage staff to participate in a wide range of community activities by using the Intranet as a message board for organisations seeking resources. Where staff involvement relates to fundraising the Foundation matches £2 for every £1 raised.
- We involve staff in selecting a corporate "charity of the year" and give full support to 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.
The Northern Rock Foundation
Donations made by Northern Rock plc to The Northern Rock Foundation since its establishment 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 |
| 2006 | £31,337,009 |
| Total | £163,243,742 |
Staff Matched Giving
From January 2006, the Foundation has doubled the Matched Giving amount to £2 for every £1 donated or raised by Northern Rock plc staff.
The Foundation's Trustees wish to build on the staff matched giving scheme's success and to encourage more people to make charitable donations.
The Foundation will match donations made to UK registered charities or exempted charities (churches, schools etc). For Irish employees there are provisions to identify charities through the tax system.
North East Enterprise Bond
The North East Enterprise Bond was launched to the business community at Dance City on 4 April 2006 and when the bond closed on 31 October 2006 a total of £3.835m had been raised.
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 decided to change their name to broaden their geographical area of concern, and launched the project which would 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 raised £3.835 million from the private and public sectors using the same principals as the original Employment Bond. They approached 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 will be working with 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 that 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 full time Chief Executive who is supported by a part time administrator, (funded by Northern Rock plc) a Project Manager (seconded by Newcastle City Council), two Launch Pads Operatives, and a part time finance manager. Once again, the Bond will be managed 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.
Investors include, Northern Rock Foundation, Greggs Trust, Sage, The Trinity Mirror, Northumbrian Water, Northumberland County Council, Gateshead Council, Newcastle City Council, Derwentside District Council, South Tyneside Council, Sunderland Council and Cravens, to name 12 of the 77 investors who have supported our Launch Pads project.
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 opened in April 2006. We began operating the first Launch Pad in December 2006.
For further information about the North East Enterprise Bond or the Launch Pad programme, please contact North East Enterprise Bond: 0191 275 5059
Other Community Involvement
Northern Rock is also active in the community in a number of ways, among these are:
Newcastle Gateshead Initiative
The Newcastle Gateshead 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 full 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 to the local population and across the world.
North East Chamber of Commerce
The Chamber of Commerce 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 Chairman of the Chamber's Tyne and Wear Committee.
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 . Northern Rock's trainees are encouraged to support local community and this year helped Northumbrian Wildlife Trust dam drainage ditches at Holburn Moss, so water would be retained in a peat bog, encouraging growth in diverse plant species.
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.
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 is 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 Corporate Social Responsibility 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.
Student Prize Award - BSc (Hons), Estate Management, Northumbria University
For the third year running Northern Rock sponsored the award for the top final year part-time student on this course programme. The winner in 2006 was Christopher Hibbert.
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 .
Two prizes were awarded in 2006, both to students with 1st Class Honours.
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 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.
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, along with other members now supports the work of Tyne & Wear Museums through the Business Partnership and in 2004 Northern Rock became a patron 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.
Durham Sinfonia
Durham Sinfonia is a large independent symphony orchestra comprising gifted musicians from the North East. The orchestra (a registered charity) 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)
The Directory of Social Change is an internationally recognised, independent source of information and support to voluntary and community sectors worldwide. DSC believes 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.
The next update of the Guide will be available in March 2007.
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 for 2005 Northern Rock was ranked 7th.
The 2006 Guardian Giving List of Corporate Charitable Donors
Northern Rock was in the top ten of the 2006 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 2006.
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.
Staff involvement
Northern Rock staff have always been active and enthusiastic fund raisers, their motivation has been increased further since the establishment of The Northern Rock Foundation as the Foundation will match every penny raised for or donated to a UK registered charity.
Alistair Balls, the Chairman of Northern Rock's Foundation's Trustees, has stated: "Although it is often the Foundation's big grants to organisations in the North East that make the headlines, our staff matched giving scheme is an important part of what we do. The plc's success is based on the hard work of its employees which, in turn, means more money for the Foundation to give out in grants to good causes each year."
Further information regarding the level of staff giving can be found on The Northern Rock Foundation site.
Northern Rock Charity Committee
Northern Rock and its staff are active in raising considerable sums for the chosen Corporate charity. All funds raised are matched via the Northern Rock Foundation Scheme. Staff are invited to vote for the nominated charity every year, which will be the recipient of all funds raised.
The Corporate Charity for 2006, selected by our staff was the Tiny Lives Baby Unit, based at the Royal Victoria Infirmary, Newcastle upon Tyne. During the year the Charity Committee have worked with staff to organise a huge range of fundraising events that include:
The Fashion Show
The successful formula established in previous years of fashion and entertainment combined with a theme linked to the charity, continued in 2006.
The event, to also benefit Positively Pink and Coping with Cancer jointly, had a Horror theme. Debenhams supplied the clothes and its personal shopping team to make it happen. Hair was by Regis and make-up by Chanel.
Eleven models were from Positively Pink and 12 from Coping with Cancer who have all had breast cancer, as well as three Northern Rock women whose close families have been affected.
The evening event raised a total of £30,000 for Coping with Cancer, Positively Pink and Tiny Lives.
Northern Rock Charity Golf Day
Slaley Hall in Northumberland was again the venue for the 2006, charity golf day. Four Northern Rock teams were among a field of over 30, made up of key suppliers and business partners. The event receives huge support among our business partners and companies who also sponsor the event.
The event raised £72,000 for Tiny Lives, and over the eight years the event has been running over £350,000 has been raised for various charities.
Rock Idol
Following the success of the first Rock Idol, a further event was held in 2006 at Shearers bar in St James' Park and raised over £3,000 . There were some very impressive vocal displays and all enjoyed the event.
Information Technology Charity Auction
Information Technology staff organised a charity auction in December 2006, to raise funds for the Children's Heart Unit Fund, at The Freeman Hospital, Newcastle upon Tyne. The final total raised was £10,500 and with double matching from The Foundation this gives a donation of £31,500.
Breast Cancer Awareness Day
Staff who took part in “PINK” day raised a total of £4,000
In addition to pure fundraising staff also give their time to:
Leonard Cheshire
Northern Rock through a link with Calvert Trust organise an annual weekend at Kielder centre, for residents of a local Leonard Cheshire home. Northern Rock staff provide support for disabled people to participate in a range of outdoor activities, including:
- Sailing
- Canoeing
- Absailing
- Zip winding
- Archery
The Kielder Challenge has been an annual event for 9 years. Northern Rock staff attend a one day training course provided by the Calvert Trust, prior to the fun packed 3 day weekend event. Northern Rock allows all its staff with paid leave from work and the staff voluntarily give up their own weekend.
Due to the continuing success of the event Northern Rock has also supported the event during 2006.
Leonard Cheshire is the leading charity provider of services for disabled people in the UK and operates in 57 countries across the world. In the UK , Leonard Cheshire works with thousands of disabled people, helping them to live independently, whether that means a few hours of care at home, or more intensive support at one of their residential and nursing homes.
It also provides independent and supported living, respite care and day services and are developing cutting-edge services for people with an acquired brain injury.
The Workability scheme is giving younger disabled people the computer equipment and skills they need to find a job.