12175 ITV CR Cover.qxp 9/4/08 10:14 Page 1 I T V ITV plc p l c 200 Gray’s Inn Road C o r p o London WC1X 8HF r a t e www.itv.com r e s p Investors: www.itvplc.com o n s i b i l i t y r e p o r t 2 0 0 7 ITV plc Corporate responsibility report 2007 ITV plc Corporate responsibility report 2007 Message from Executive Chairman Michael Grade ITV’s mission is to be the UK’s favourite source of free ente rtainment. To me this involves being a responsible source of free ente rtainment. Corporate responsibility report 2007 ITV plc 01 In a fast changing and highly competitive industry such as ours, ITV News continues to set the highest standards for editorial there is a constant risk that unforeseen issues will arise. New types judgment and objectivity. Its three main bulletins serve of content and ways of engaging with the viewer require new UK society by informing millions of viewers about a vast safeguards. New media such as the internet are outside the scope range of national and international issues. Both in news and of traditional regulators and require content providers to establish entertainment we are challenging ourselves to reflect the ethnic their own standards. Never before has the notion of “corporate and cultural diversity of the UK, making our programmes more responsibility ” been so important to our industry. relevant and appealing to the widest potential audience. We learned this lesson to our cost during 2007 when failures Our new online and mobile businesses present fresh corporate in our systems for premium rate services and administering responsibility challenges. These businesses are mainly outside competitions resulted in us letting down our viewers and also the regulatory scope of Ofcom and the provisions of its ourselves. I believe we have dealt effectively with those problems. Broadcasting Code. We have decided voluntarily to apply the The actions we have taken are described more fully in this report. same standards for the content we provide across new media that we do to broadcast television. There will be some differences Viewers will only watch programmes and use services that they in implementatio n so we have created control and protection trust. Building trust in our Company takes years of consistent mechanism s that suit the medium. performance but it can be damaged by just a single misjudgment . That is why it is so vital that everyone at ITV recognises that the Our £1 billion production budget supports the UK creative trust of viewers is one of our most valuable assets and why this economy of artists, presenters, producers and technical people report is such an important document. involved in programme making in ITV and at the independent production companies that supply us. Without ITV, Britain’s Great work was done in 2007. Our current affairs and regional indigenous television industry would be much smaller. news programmes regularly covered issues of social and environmental concern, both to inform viewers and in the case of Our corporate responsibility extends to the way we recruit and “Climate Change – Make a Difference ” and “The Big Ban”, to enrol treat employees, ensure their health and safety and manage them in positive actions. Some may be surprised that our serial our environmental impacts. All of our material corporate dramas also provide valuable education. Emmerdale for example, responsibility issues are covered in this report. I hope that you through its carefully researched storyline raised awareness of the find it informative and welcome feedback. early symptoms of meningitis. Michael Grade Executive Chairman Contents Message from Executive Chairman 01 About this report About ITV 02 This report covers the CR performance of ITV plc for 2007. The report covers all wholly owned companies and jointly owned businesses in which ITV has a Corporate responsibility at ITV 04 majority shareholding . All information relates to the calendar year 2007 except where a different period is stated. The report has been assured by Enviros Ltd On air whose statement is on page 50. Responsible programming 08 Independent reporting 13 Further information Reflecting society 17 Further information on ITV’s non-financial KPIs and related data is available in Supporting communities 20 the Business Review section of our 20 07 Annual Report, available to download on the Company’s website at www .itv plc.com. Responsible advertising 23 Digital switchover 25 To find out more about the topics contained in this report, please visit: www.itvplc.com/itv/responsibility. Online Content on demand 28 Behind the scenes Creative economy 32 Our people 35 Health and safety 42 Protecting the environment 43 Performance indicators 47 Cover image CR objectives 48 Rageh Omaar: The Iraq War by Numbers, aired in March 2008. Rageh Omaar returned to Iraq to explore the human stories behind the vast number of statistics Assurance statement 2008 50 generated in the five years of the war. GRI indicators 51 Contacts 52 02 ITV plc Corporate responsibility report 2007 About ITV ITV plc is the leading UK media Entertaining the UK through... company, owning all of the regional ...Broadcasting Channel 3 licences in England and Wales. ITV also owns free-to-air digital channels ITV2, ITV2+1, ITV3, ITV3+1, ITV4, Citv and Men & Motors. ITV is available on every major platform Our Broadcasting business is responsible for commissioning and scheduling programmes on all the ITV channels. including broadcast TV, online and The broadcasting business also covers ITV regions and News and ITV Sports production. It manages ITV’s broadcasting on mobile. interests on different platforms including UK terrestrial television, free-to-air digital channels, and digital terrestrial ITV employs 5,634 people worldwide. television on Freeview. The majority work in production centres around the UK, with large The Broadcasting business comprises: ITV1, ITV2, ITV2+1, ITV3, ITV3+ 1, ITV4, C itv , Men & Motors, centres in London, Manchester and GMTV (75% owned), Freesa t (joint venture with BBC) Leeds. Outside the UK we have offices in America, Australia and Germany. We also employ a large body of freelance writers, performers and technical staff who contribute to our programme production. Key statistics 2007 Turnover £2,082m Operating profit £311m ITV’s material CR issues Profit before tax £188m Earnings per share 5.0p We regularly review our material issues to identify any Investment in ITV programm ing £1,087 m changes from external sources or due to new types of Number of employees 5,634 business within ITV. Our materiality assessment takes into account the opinions of a wide range of internal and external stakeholders with whom we are in regular contact (see stakeholder engagement on page 4 ). Our strategic objective is to be the UK’s favourite source of free entertainment, by meeting the following targets: Programme/content standards – Compliance with the Ofcom Broadcasting Cod e – Double content revenues by 2012 – Access service s including signing, subtitling and – Maintain our share of advert swatched on UK TV audio descriptio n at 38.5% across our family of channels by 2012 – Regional programmes serving local communities – Deliver £150 million in online revenues by 2010 – Other public service programmes including news and current affairs – On-screen diversity The Company is based around three major – Premium rate services businesses: Broadcasting, Global Content and Online . Advertising standards – Compliance with the British Code of Advertising Practic e Other businesses – Length and frequency of advertisement breaks We also own Carlton Screen Advertising, a cinema advertising business; Commercial Breaks, a production company; and 3sixtymedia, a studio facilities – Proposals to introduce product placement company. We have a 50% interest in Screenvision Europe and Screenvision US, joint ventures with Thomson S.A., which operate leading cinema screen advertising businesses in continental Europe and the US respectively. Corporate responsibility report 2007 ITV plc 03 ...Global Content ...Online Our Global Content business includes the UK’s biggest Our Online business works with the Br oadcasting and Global commercial television production company and one of Content teams to deliver ITV content through new platforms. Europe’s largest programme distribut ors. It consists of three main areas: Broadband, Transactional and Mobile. The Global Content business comprises: The Online business comprises: ITV Productions, 12 Yard, Cosgrove Hall Films, itv.com, itvlocal.com , ITV Mobile, Friends Reunited, ITV Bingo The London Studios, Granada Ventures, Granada Americ a, Granada Australia, G ranada Germany Community investment and engagement Health and safety –Selection of causes supported – At ITV productions – Allocation of on-air support – At all ITV locations – Donation of money and other resources – At independent productions made for ITV Creative economy Environment – Expenditure on regional production – Energy consumption and climate impact – Freelance employment opportunities – Material consumption, waste and recycling – Training and support for the independent sector – Water use – Monitoring of independent sector health, safety, – Protecting the environment when filming employment and environmental standards on location Employment Suppliers and business partners – Off-screen d iversity – Independent production companies – Training and development – Premium rate services – Work/life balance – Merchandise and promotional items – Freelance and contractor workforce standards 04 ITV plc Corporate responsibility report 2007 Corporate responsibility at ITV Corporate responsibility (CR) has These values are communicated throughout the business through regular roadshows. They are also included in our induction and never been more important to ITV. training processes. In 2007 we added new modules on ethics and It is crucial that we maintain programme codes to our in-house training (see page 11). CR governance structure (and where necessary regain) our John Cresswell, ITV’s Chief Operating Officer is responsible for viewers’ trust in our programmes reporting CR performance to the Board.