Chief Executive’s Introduction

APRIL 2012.

Corporate Social responsibility is a form of corporate self-regulation more usually associated with large multi-nationals than small manufacturing companies such as ours, and yet our people and our communities and the responsible use of raw materials have been integral to the Company’s operation for three hundred and twenty-five years.

This is a family company, and the management team plans for the long term and always have.  Our craft skills that are so essential both for our textile and metal production only endure if we continue to invest in training and people through the generations.  This means we must maintain strong links to the local community (our skill bases are very regional) and to local schools and universities as young people need to know that career opportunities exist for them in our business.  We are determined our type of manufacture will continue to flourish in the UK, and this is an important strand of our corporate strategy.

Our staff turnover is very low as there is enormous personal satisfaction for our employees in what they do, and the staff work with the management on the maintenance of a safe and enjoyable working environment.

The very nature of our business with expensive raw material costs, low margins and fierce competition has meant that economic use and recycling of materials has been practiced throughout our existence.  All metal clippings, shards, and fillings from manufacture are recycled.  In fact all metals used in manufacture, whether base or precious, are essentially re-cycled.  Textile byproducts are either re-cycled or given to local schools for art and craft use.  Our methods of production are directly influenced by the need to keep energy consumption to the minimum.

Statutory factory laws and sheer common sense ensure that our factories and offices are safe and effective work places.  We work hard to create friendly environments for our work force and visitors on the inside, and for the community on the outside.

Toye, Kenning & Spencer does source raw materials and products from other UK companies and from companies overseas.  In every case we are careful to ascertain the operational integrity of our business partner, and make sure they are aware of our own ethical policies, and follow very similar policies and procedures of their own.  It is pertinent to note that through experience we have found there is a direct correlation between the conditions of manufacture and the quality of the resulting product.

Introduction to our procedures

To ensure that our objectives for corporate social responsibility are met it is essential that both the management and all staff know what our objectives are, and work together to achieve them.  As our CSR policy is so integral to how the company functions elements from the policy are evident in everything from job specifications to training programmes and factory layout.

Overall responsibility for our CSR policies and procedures belong to the Chief Executive, which clearly indicates how important it is to the company.  The Production Director at each factory, and the site Director for London, are responsible for the day-to-day implementation of policy and procedure at each location.  There are monthly meetings of the Managers where all issues pertaining to our CSR are attended to.  The Main Board of Toye & Company also reviews all decisions and actions concerning our CSR policy and procedures on a regular basis.

For Toye Kenning & Spencer Limited our people are our greatest asset, and for us to progress and flourish as a business it is essential that we work with our local communities, and continue to value our resources and the environment.

Fiona Toye

Chief Executive

Toye Kenning & Spencer Limited

CSR and sustainability: Our policy

Our CSR and sustainability policy is designed to provide long-term benefit to all stakeholders connected to TKS.  Broadly, these responsibilities include: Our environment, our employees, and, our community.

CSR and sustainability: The environment

For over three centuries TKS has led its industry.  We appreciate our prolonged success.  Furthermore, we appreciate that to ensure its continuity we must match it with a long-term commitment to environmental sustainability.  We remain committed , within our financial constraints to carrying our share of this responsibility.  Consequently, TKS is committed to conducting its business in a manner that most effectively minimizes its environmental impact.  We aim to successfully integrate global environmental concerns into our business plan.  TKS participate in environmental management not simply to fulfill our legal obligations but due to the realization that sustainability is fundamental to good business.

Aims and objectives

TKS aim to consistently take account of environmental issues in our commercial decision-making.  This includes:

* Operating in a cost efficient and environmentally responsible manner - we have a policy of investing in our production processes to reduce scrap and re-working and this is constantly reviewed

Target - Reduction in scrap and re working

* Using processes that have no adverse environmental effects.  For example, in respect of energy consumption and waste management.  We review our energy consumption in conjunction with our utility supplier

Target - Reduction in energy usage by 3% per annum

* Endeavoring to improve environmental performance where practicable.

Target - Reduction in use of toxic chemicals by 2.5% per annum

* Creating management procedures to achieve these improvements.

Target - Continued compliance with ISO regulations

* Adopting a good neighbour policy whereby we work with all our neighbours at all of our sites in maintaining and improving the local environment

Target - Maintain excellent local community relations

* TKS will ensure employees are not only aware of our CRS policy but that they actively take part.

Target - Maintain excellent internal and external communication

Legislative compliance and industry standards

* TKS will comply with, or exceed, the requirements of relevant environmental legislation, regulations and guidelines

* We will comply with, or exceed, industrial standards and good practices

* We will, even in the absence of either governmental or industrial standards take all reasonable steps to avoid harm and/or damage to the environment

Sustainable manufacturing, energy, and waste management

* TKS will attempt to utilize non-polluting technologies, and to minimize energy and materials consumption in design and manufacture of products and processes

* We will adopt a positive policy of waste reduction.  This involves actively seeking methods whereby less material is used and less material wastage incurred

* We will adopt a positive policy of energy reduction.  This involves actively seeking methods to reduce our energy consumption.

* We will attempt to utilize sustainable manufacturing practices that extend throughout the supply chain

Education and awareness

* TKS will provide our customers, employees and other interested groups, where appropriate, with relevant and appropriate factual information about the environmental quality of product, packaging and operations.  In this context we seek to establish open, honest and timely communications, and strive to be responsive to their concerns

* TKS will promote our environmental activities to our staff and customers, advising them of our concern and our care for the environment.

* TKS will expect our suppliers to demonstrate an environmental commitment, consistent with our own, and to co-operate with us in meeting environmental objectives.

* TKS shall encourage suppliers and contractors to adopt responsible business policies and practices for mutual benefit.  This extends to any outsourced manufacturing

Target - All key suppliers to be visited bi-annually to ensure compliance


CSR and sustainability: Environmental action

Recycling of metal

* TKS ensure that all scrap metal, whether base or precious, is recycled by a certificated scrap merchant.  This includes all metal clippings, shards and fillings.

* We ensure that all gold metal is reclaimed from rinse waters involved in the electroplating process.  We also ensure that all precious metal and copper, from wire used to hold products in place, is reclaimed during plating operations.

Recyling of paper and cardboard

* TKS ensure that all paper and cardboard waste is separated for collection by the city council.

Recirculation of water

* TKS ensure that any process water used during manufacturing is closely monitored.  It is also separated from that used for domestic purposes.  The quality of the process water in the rinsing tanks used during the plating processes is monitored carefully.  More water is not used until the existing water quality has exceeded specified levels.

Energy saving

* TKS recently undertook a survey of the existing heating arrangements.  This resulted in the replacement of the previous boiler system with more modern condensing gas boilers.

* We are currently replacing the lighting in our factories.  The old light bulbs are being progressively replaced with more efficient longer life equivalents.

* We have introduced an energy survey of half hour usage data.  This is then used as an instrument to reduce usage.


CSR and sustainability: Our employees

TKS is a family firm that believes in showing a commitment to each and every employee.  We remain aware that the calibre of our finished product relies directly upon the craft of those employed by us.  To continually produce top quality goods we understand the necessity to invest in ourselves, and more specifically, to invest in our workforce.

This is reflected in our commitment to the recruiting, training, and development of our employees.  Our continued dedication to our social responsibilities has certainly contributed to our commercial success.  Retaining the loyalty, and thus the dedication, of our employees ensures our high quality benchmark is constantly met.

Equality, diversity and fairness

* TKS believe firmly in embracing diversity.  We are committed to the principle of equal opportunity in employment all irrelevant of sex, age, disability, sexual orientation, marriage status, race, ethnicity, national origin, or religious belief.

* We believe that the wide variety of backgrounds, perspectives and ideas found throughout the company contribute positively to our competitive edge.

* TKS shall offer employees clear and fair employment terms and provide resources to consistently motivate, support, and develop employees.

Health and safety

* TKS view health and safety as a primary concern.  The risks inherent to manufacturing as an industry ensure this.  With this in mind TKS remains proud of its clean record.  For us, no accident is acceptable.  As a family company accountability is felt throughout the firm, right up to our Chief Executive.

* We believe that a safe working environment and high level of protection is a necessity not only for the continued well being of our staff but also for the benefit of our business.

Recruitment

* TKS train within the company to try and preserve and maintain are unique skills that are handed down through the generations.

* TKS recruit from other companies within this industry centered in Birmingham’s Jewellery Quarter making the most of our regional skills base.

* TKS recruit from the School of Jewellery.  This is one of the leading schools for jewellery design in the world and is based in the Jewellery Quarter.  Two members of our design team are graduates and one of our employee’s lectures their part time and has identified talented individuals for us.

* TKS have acquired smaller local companies thus retaining their employees’ skills and specialized equipment.

Training and development

* TKS operates a comprehensive training plan as part of our ISO 9001:2008 policy.  This ensures that all of our training procedures are in line with current health and safety legislation.

* Our training procedures are designed to develop employees’ skills through cascade training.  We our currently concentrating on developing and expanding our CAD/CAM skills with training courses at specialist manufacturers and in-house development

* We have developed close connections with several schools local to both our manufacturing bases:

* Small Heath School in Birmingham is highly regarded within the City for its excellence in all aspects of surface design.  We currently collaborate on numerous artistic projects and it is intended that some of our skilled employees will work with them on training days.  Our eventual aim is to create a dedicated training area within our site where pupils can experience many aspects of our work and can be mentored within a safe and controlled environment.

* Exhall Grange Special School, located near our Bedworth factory, is one of several schools in the Bedworth and Coventry area we supply with school and sports uniforms.  Our CEO, Fiona Toye, is a Deputy Chairman and corporate governor at the school.  We aim to work closely with them to develop projects that will expand their very special artistic skills by using our products and materials.

Both of our factories are popular venues for young people looking for work experience.  We attempt to let them experience most areas of manufacturing during their time with us.

* Our CEO, Fiona Toye, is also involved in a Jewellery Quarter campaign to develop a recognised training scheme for the industry.  It is obvious that this is the only way to secure the future of our industry and retain the skills based traditionally in the Quarter.  Initial trainees are soon to being their training that will lead to a qualification from the Goldsmith’s company, recognised and respected the world over.

* Fiona Toye, is also Jewellery Quarter Development Trust Board member and on the Regional Princes Trust  Committee.


CSR and sustainability: Our social commitments

Community & social investment

* TKS will endeavor to support and encourage our employees to help local community organizations and community activities in our region.

* TKS is determined to maintain strong relations with the local community due to the regional skills base upon which both our Birmingham and Bedworth factories rely.  The nature of the company ensures that strong community relations

* TKS is actively involved with work done in the Jewellery Quarter through the Jewellery Quarter Development Trust.  This is especially important due to us being one of the largest manufacturers in the Quarter.  The Trust aims to promote the Quarter as a vibrant place to work, visit & live.  We are fully supportive of the new Jewellery Quarter Business Improvement District.

* TKS has sponsored trophies to be presented at the 2010 West Midlands Street Games & for the 2010 Birmingham Book Festival.  We are keen to support both our local and regional communities.

* TKS has consistently and regularly hosted factory tours in Birmingham and last year we worked with Marketing Birmingham to host tours during the Rotary International Convention.

* TKS is an enthusiastic member and supporter of the Birmingham’s Civic Society.  We donated an award to the Society and are becoming involved with their Citizenship Initiative that works with Birmingham schools to develop pupils’ involvement and pride in the city.

* In September 2011 Small Heath School year 9 pupils completed murals for our Birmingham reception area.

*  In February 2012 BA jewellery students from Central St Martins School of Art in London visited the Birmingham factory