The Pentland Group – A satisfying read

I came across the Pentland Group quite accidentally whilst trying to find a pair of shoes for my daughter’s very awkward feet. Whilst perusing the Kickers site, I noticed a barely perceptible click through to their ‘Ethical Policy’ and so discovered a very comprehensive Corporate Social Responsibility programme.

The Pentland Group is a family-owned group of companies with some very well known high street brands, namely Berghaus, Boxfresh, Brasher, Clerk & Teller, Ellesse, KangaROOS, Kickers , Lacoste, Medium, Mitre, One True Saxon, Red or Dead, Speedo and Ted Baker.

‘Work Hard, Play Fair’, says the website, they go on to state: ‘We believe that business should be conducted honestly, fairly and with respect for people, their dignity and their rights.’

This is outlined in several detailed policies: the Code of Business Conduct, the Code of Employment Standards, the Code of Employment Standards for Suppliers, the Environmental Policy, a document on Ethical Sourcing, one outlining the Business Standards Initiative, and a report on their Footprint around the World.

In addition, they are involved in nearly forty community projects in areas of people, health, environment and education, in both developped and developping countries; some global projects and some very individual ones.

Pentland do not shy away from the fact that they are in business to create shareholder value. They believe that responsible trading is not at odds with this, but in the long run is integral to it.

All the documents are well thought through and encompass a wide range of issues. Business Conduct outlines expected behaviour towards employees in areas ranging from human rights and health and safety to the best use of talents and the right to serve as a school governor. Expected conduct towards customers, suppliers, the wider community and a variety of other matters including competition and confidentiality are also covered.

Pentland do not shirk their responsibilities towards their employees in any level of their supply chain, which given the businesses they are in is no small undertaking. The three documents relating to this set out both the standards that they require, and also how they go about ensuring them. What is most impressive is that this does not mean going to each factory with a checklist and disengaging from those which don’t live up to these standards. Instead, as outlined in the ethical sourcing document, they work with these factories in long term relationships, helping them to meet standards in areas where they fall short, encouraging them to identify best practice and working alongside local institutions to provide maximum support. Disengagement usually only occurs where there is a poor management attitude and little concern for workers’ welfare.

These standards are that:

• Living wages are paid
• Working hours are not excessive
• Working conditions are safe and hygienic
• Child labour is not used
• Employment is freely chosen by employees
• No discrimination is practised
• There is no harsh or inhumane treatment
• Freedom of association is respected
• Regular employment is provided

Responsibility towards the environment is also attended to with the view that businesses should:

• support a precautionary approach to environmental challenges
• undertake initiatives to promote greater environmental responsibility
• encourage the development and diffusion of environmentally friendly technologies.

In particular they have been working on reducing the impact of some of the toxic glues used in the manufacturing processes on both the environment and the employees, but have also done a study on their footprint and started to assess other areas for action.

Here at ResponsAble we have been very impressed by this Group’s apparent attitude towards business and look forward to following it up with them, and to finding other companies with similar or maybe even better practices. The way this group is behaving is affecting millions of people’s lives for the better across the globe and is an example of how doing business both transparently and fairly can be both profitable and sustainable long term.

(The Pentland Group is further discussed in the post Pentland Revisited)