Mitchells & Butlers plc Corporate Social Responsibility Review 2007 Mitchells & Butlers Chief Executive introduction Corporate Social Responsibility Review 2007 Our commitment to Corporate Social Mitchells & Butlers is the leading operator of The Board takes regular account of social, Responsibility (CSR) policy means that managed pubs and pub restaurants in the UK, environmental and ethical matters concerning employing nearly 43,000 employees in some the Company through the Chief Executive's responsible practices are at the heart 2,000 businesses. regular reports to the Board, presentations to of our business on an every day basis. the Board at its strategy meetings and through Our commitment to Corporate Social adoption of its Code of Ethics. The Company Responsibility (CSR) policy means that Secretary is responsible for ensuring that responsible practices are at the heart of our Directors are made aware of and receive training business on an every day basis. in respect of such matters. Formal reporting to That commitment reflects our core belief that the Board of social, environmental and ethical sustainable business success has to be based matters takes place every quarter. on experienced, professional licensed retailing Our philosophy for corporate social responsibility which builds upon the reputation of each combines the best of the traditions of the pub individual pub in its own community. landlord's commitment to the community with We operate in a highly regulated industry and leading practice in crucial areas such as the recognise that attached to the grant of our responsible retailing of alcohol, food safety and licences is the primary obligation to ensure the staff training. responsible operation of our premises at all This review records our commitment to times. This obligation is not just to our responsible retailing, shares our best practice customers, but also to our investors, employees, and successes, as well as outlining the suppliers, neighbours and key authorities. We challenges and opportunities for our business. also have an inherent duty under our licences to This year we are delighted to have been named, promote the objectives of the Licensing Act of for the second time, as the most responsible 2003, namely: drinks retailer in the managed pub sector in recognition of our consistent focus in this area; The prevention of crime and disorder and we continue in our aim to reduce the Public safety impact of our energy usage across our estate, by opening our first energy-saving pub restaurant The prevention of public nuisance at the Toby Carvery, Banbury. The protection of children from harm We are proud of our achievements, underpinning our reputation for sustainable and Therefore, we strive to ensure that corporate ethical business practices. We look to build on social responsibility underpins our business the firm corporate social responsibility operations at every level. foundations we have in place and to continue to progress our policy in the future. Tim Clarke Chief Executive Mitchells & Butlers About this Review Corporate Social Responsibility Review 2007 Mitchells & Butlers publishes an annual integrated corporate social responsibility report every December. This report covers five areas that are of key importance to us as a Company, as well as to our customers, employees, local communities, suppliers and shareholders: Marketplace Employees Community Environment Corporate Governance An electronic copy of the 2004/5 and the 2006 CSR Reviews are available via the Company website www.mbplc.com/socialresponsiblity ContentMarketplace 01Employees 11 Responsible retailing Health and safety Industry issues Employee policies Retail team training Employee training Customer and employee safety Employee benefits and reward Building infrastructure Employee engagement Good food and food safety Community 17 Environment 23 Corporate Governance 25 Community activity Minimising environmental impact Corporate Governance Heart of the Community Awards Energy efficiency Corporate charity partnership Recycling National activity Support in Birmingham Marketplace 01 Mitchells & Butlers owns and operates around 2,000 high quality pubs and pub restaurants in prime locations across the UK; around 40 of our sites are in Germany. Mitchells & Butlers 02 Marketplace Corporate Social Responsibility Review 2007 The nature of our industry is such that Responsible retailing it is essential that we operate our pubs, bars and restaurants in a highly Alcohol and Social Responsibility policy responsible manner. The safety of our Mitchells & Butlers was one of the first Our policy highlights are as follows: employees, customers and the wider companies to establish a comprehensive policy We are committed to the responsible retailing for the responsible retailing of alcohol, in 2000. community is paramount and a key of alcohol and recognise that it is a Our Alcohol and Social Responsibility (ASR) principle of our corporate social fundamental part of what we do, and how we policy includes clear guidelines on the do it, every day responsibility policy. responsible operation of our pubs; the sale and promotion of alcohol; our under 18s policy; and We do not serve customers whom we believe is underpinned by our employee training and to be under 18 - nor to anyone whom we development programmes, to ensure the policy suspect of passing alcohol to under 18s lives in all our businesses on a day to day basis. If a customer looks under 21 we will ask for a The introduction of our leading policy shaped recognised form of ID the development and implementation of We do not serve alcohol to anyone whom we industry-wide codes of conduct. We update the believe to be intoxicated policy regularly, re-launching it in October 2004 and in May 2006. In August this year we again We do not permit promotions limited to very updated the policy to reflect: short periods of time such as happy hours We do not offer any incentives to our The acceptance of an international passport customers to drink irresponsibly as a recognised form of ID. We continue also to accept UK Passports, UK photograph Our employees can easily access information driving licences, and proof of age cards about units of alcohol and alcohol by volume bearing the PASS hologram as recognised in order to provide that information to guests forms of ID We value and respect the partnerships our The tightening of guidelines around pricing, managers have with local authorities discounting and promotions across our businesses Our senior managers are actively involved in setting industry standards and lead by The inclusion of new information listing the example units of alcohol contained in commonly served drinks Mitchells & Butlers 03 Marketplace Corporate Social Responsibility Review 2007 (continued) Challenge 21 Responsible Promotions policy Alcohol awareness Mitchells & Butlers was the first company to As part of our Alcohol and Social Responsibility Mitchells & Butlers is a major funder of the launch a Challenge 21 campaign, in 2004, policy, we have strict guidelines in place Drinkaware Trust, an independent UK-wide which has now been adopted as an industry- regarding the pricing and promotion of our charitable trust with the objective of positively wide initiative. The campaign is not an over 21s drinks. Any promotional activity must be changing public behaviour and the national only entrance policy but rather a requirement to approved by the Marketing Director and observe drinking culture, to tackle alcohol-related harms. ask for ID, if a customer appears to be under the guidelines outlined in our ASR policy. In addition our Chief Executive is also a Trustee 21, so as to prove that he or she is at least 18 of the Drinkaware Board. years of age. The principle of Challenge 21 - to The guiding principles of the Company's support and educate our employees and Responsible Promotions policy are: Our updated ASR policy issued in August this customers on the issues relating to under age year now includes details of units of alcohol and sales - is now firmly embedded in our Company To offer guests real service and value at fair, the alcohol by volume (ABV) percentage of culture. competitive prices every alcoholic product sold in our pubs, to ensure that our customers have the information Through our various training programmes, all To encourage guests to return to our pubs, they need to make the appropriate choices as our retail employees, including our contracted rather than to encourage increased regards their consumption of alcohol. Brand door staff, are made aware of their consumption by guests during a single visit specific training highlights ABV information to responsibilities for serving alcohol and the To ensure that our guests are offered choice our retail teams; ABV information and personal penalties for failure to comply with the and value without inducements to drink to responsible retailing messages are also included Licensing Act requirements. excess. We will not, for example, offer any '2 in some drinks menus and promotional materials, to raise customer awareness. For some pubs within our portfolio, our training for the price of 1' drinks promotions programme is prioritised to reflect the To encourage and support designated driver Jean Collingwood, importance of the Challenge 21 initiative. For and other anti-drink/drive initiatives Chief Executive, Drinkaware Trust example, within our Scream pubs, a brand “Programmes that educate retail which is predominantly student focused, Mitchells & Butlers is a member of the British Challenge 21 training takes place over four employees and local communities in Beer & Pub Association and we played a central joined up activities are highly effective. dedicated weeks a year to co-ordinate with the role in the formation of the organisation's code academic calendar. aimed at preventing irresponsible promotions. In Focusing on education is essential to We also regularly audit our businesses to ensure addition all our promotional activity complies create a responsible drinking culture our Challenge 21 practices are being with the Portman Group's Code of Practice. in the UK today.