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2023-06-30-accounts

BUSINESS INTHE COMMUNITY The Prince's Responsible Business Network Business in the Community ANNUAL REPORT 2022123

The Directors of Business in the Community (BITC) present their Annual Report for the year ended 30 June 2023, which incorporates, within pages 7-35, a strategic report under the Charities Act 2011, the Companies Act 2006 and the Charities and Trustees Investment (Scotland) Act 2005 and related regulations.

Business in the Community is a registered charity in England and Wales (297716) and Scotland (SC046226). Company limited by guarantee No. 1619253

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CONTENTS

CONTENTS
LEGAL NOTE 02
CONTENTS 03
CHAIR’S INTRODUCTION 04
CHIEF EXECUTIVE’S MESSAGE 05
INTRODUCING BUSINESS IN THE COMMUNITY 06
**STRATEGIC REPORT THE IMPACT WE MADE**
PROGRESS AGAINST OBJECTIVES 08
•
Objective 1: Empowering businesses to develop and implement their purpose		 09
and responsible business strategies
•
Objective 2:Learning from four decades of working with, and being led by,
business to drive signifcant and lasting change for people and the planet		 13
•
Objective 3:Collaborating with businesses to invest in communities to enable		 15
greater social mobility and to support small business
•
Objective 4:Accelerating a just transition to net zero and climate resilience.		 21
•
Objective 5:Sharing learning, building networks and driving business action to		 24
tackle some of the biggest issues facing business and society.
•
Objective 6:Addressing the urgent challenges facing society in times of crisis,		 33
such as the cost of living.
•
Objective 7:Driving the responsible business movement in Northern Ireland		 34
OUR PEOPLE 36
WALKING THE TALK – OUR SUSTAINABILITY COMMITMENTS 39
OUR FUTURE PLANS 41
FINANCE REVIEW 43
•
Auditor’s Report		 49
•
Statement of Financial Activities		 52
•
Balance Sheets		 53
•
Cash Flow Statement		 54
•
Notes to the Accounts		 55
GOVERNANCE 73

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CHAIR’S INTRODUCTION

Taking up the Chair of Business in the Community (BITC), I wholeheartedly believed in BITC’s mission and was excited about it’s potential, knowing that it was more needed and more important than ever before. Little did I know of the tenure I was about to oversee and how true my words would be. From the Covid pandemic to the cost-of-living crisis, from the ongoing inequality in our communities to the impact of the climate crisis. The UK has felt these challenges keenly, with every region and nation being determined to make it out the other side but deeply in need of BITC’s expertise and direction.

I have been delighted to have the opportunity to work alongside Mary since her arrival as Chief Executive, I believe her ambition and focus for BITC will set the organisation on a positive course for the future. My thanks go out as always to the BITC Board, Leadership Teams, Regional and National Leadership Boards, our Fellows and all those who work with and help to strengthen and support this network. I wish my successor all the best and remain incredibly grateful to have been a part of this organisation and all that it has achieved.

Gavin Patterson Chair Business in the Community

Decision-making in times like these is not easy but I am grateful to the support I have had from BITC’s Board and members as we continued to do what we do best. BITC delivered the support that was needed to communities, businesses and employees while remaining prudent with our resources to ensure sustainability. I have seen BITC’s programmes thrive with our flagship Seeing is Believing (SIB) programme growing in importance as business leaders realise the importance of closing the gap between the boardroom and local communities, turning that experience into action. With thanks to the SIB Council, the SIB programme now has the prominence and prestige it deserves.

Business in the Community BITC Annual Report 202 20 /2 31

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CHIEF EXECUTIVE’S MESSAGE

As my first year as Chief Executive of Business in the Community (BITC) comes to a close, I find myself enormously humbled and proud. When I joined this organisation, I saw the progress and the impact BITC had made over the last forty years and the power it had to inspire real and sustainable change. It

brought to life the mission I

had chosen to be a part of, and the realisation that with the help of our network, we would have the ability to transform millions more lives and help many more communities to thrive.

Together, we can deliver on making the UK fairer and greener, sooner. Our ambitions are to do this through transforming 50 of the most deprived Places in the country to lift people out of poverty, inspiring and engaging 10,000 more business leaders to take action in their organisations and in the community, and extending our network to over 50% of the UK workforce to collectively drive sustainable change at pace and scale to make the UK the most responsible country in the world.

programme of visits has truly inspired business leaders to act and address societal issues in communities in need. I would like to extend my thanks to the most generous of our funders – Aviva, bp, Salesforce, Simply Health and AXA – for their support of our work, which will impact every region and nation across the UK.

The end of 2023 also marks the end of Gavin Patterson’s tenure as BITC’s Chair; we owe him a great deal of thanks for his support and guidance. Gavin has been a tremendous leader, steering us through the pandemic, helping shape the National Business Response Network, building our Place programme and investing in our SIB programme. Gavin has helped to focus the BITC Board and been a great source of advice for me in reshaping the organisation to ensure we are fit for the future. Together, with his support, we have been able to demonstrate the incredible impact of this network.

Mary Macleod Chief Executive Business in the Community

To me, BITC is the best kept secret in the UK. I have been determined that we should demonstrate our impact and focus on fewer, more impactful priorities; ensuring our voice is heard, recognised and sought out. With the help of BITC’s Board and Chair, and with the input of the many business leaders I have spoken to, I have now reshaped the organisation and built in the structures I believe will make us strong and successful as we face towards our 50th anniversary.

We have already seen the impact of these changes with exciting new programmes and strategic partners. Our Place programme has gone from strength-to-strength, with our ambition to drive and deliver impact and change in 50 places across the UK. We have launched our £100m Community Climate Transition Fund to empower communities to lead their own climate transformations, and The Prince’s Seeing is Believing (SIB) 2023

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INTRODUCING BUSINESS IN THE COMMUNITY

OUR VISION

A fairer and greener world driven by fairer and greener businesses.

OUR MISSION

We convene the network of purposeful leaders committed to changing business, transforming lives and helping the planet and communities thrive.

WHO ARE WE?

Business in the Community is the UK’s largest and most influential responsible business network dedicated to building a fairer and greener world together, supported by His Majesty The King for more than 40 years. We inspire, engage and challenge purposeful leaders to take practical action to mobilise their collective strength as a force for good in society by:

Our specialist advisers support individual businesses by delivering targeted interventions, training and strategic change programmes, while also sharing best practice and frameworks for action.

OUR CURRENT FOCUS

OUR AMBITION FOR 2032

WHY JOIN THE BITC NETWORK

Joining our network is a public commitment to be a purpose-led business and to leverage the power of working together to deliver positive economic, social and environmental change.

Supporting business to:

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STRATEGIC REPORT

THE IMPACT WE MADE IN 2022/23

Our network of businesses and partners employs more than 7 million people in the UK and has benefitted nearly 10 million people in a few short years. Our other key achievements include the following:

78K

1,000+ 4,000+

1.2 M+

1.1 M

young people Employers young people aged supported in Northern representing more 15 – 18 have been Ireland, Scotland than six million reached every and Wales helping employees have year through BITC to prepare them committed to the Northern Ireland’s for the world of Race at Work Work Inspiration work since 2016 by Charter which asks programme developing core skills, businesses to make including building a public commitment their knowledge and to improve equality confidence about of opportunity in the money, thanks to workplace Barclays’ LifeSkills programme delivered by BITC

roles are being made more inclusive because of our Opening Doors campaign supporting employers to adopt inclusive recruitment practices

jobs are being made more accessible to those with criminal convictions thanks to our ‘Ban the Box’ initiative

79

24,000 2,500

+70%

72%

organisations have of members in signed the Mental England, Scotland Health at Work and Wales have Commitment, with committed to taking BITC as a leading robust action on partner reducing their direct and indirect emissions

of employers in the organisations lead 2023 The Times Top our ‘Place’ boards, 50 Employers for leading change in Gender Equality are communities BITC members

employees trained in workplace inclusion, health and wellbeing, environment, social impact, strategy and purpose since 2020

20%+

of the UK’s workforce is employed by BITC’s networK

143

organisations drive our Nations and Regions Leadership Boards, comprising senior executives who provide strategic guidance and support in creating social and environmental impact, nationally and locally

1.25 MILLION+

People have benefitted from our National Business Response Network (NBRN), supported by AXA, that enables businesses to provide vital items and skills support to community organisations in need across England, Scotland, Northern Ireland and Wales. The NBRN was launched at the start of the COVID-19 pandemic with the generous support of AXA, the London Stock Exchange and the COVID-19 Support Fund

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r. PROGRESS AGAINST OBJECTIVES Sk

PROGRESS AGAINST OBJECTIVES

OBJECTIVE 1: EMPOWERING BUSINESSES TO DEVELOP AND IMPLEMENT THEIR PURPOSE AND RESPONSIBLE BUSINESS STRATEGIES

46 new members

BITC depends on the actions of its members to deliver on our purpose. With more than 600 members, our network encompasses businesses of all sizes, sectors and locations, which gives us unbeatable reach into communities across the UK, and rich insight into what works and what still needs to be done. Through their action, advocacy, and honest collaboration away from commercial agendas, our members become our agents of change.

Growing our network is therefore synonymous with growing our impact. We are empowering our members, leaders and their employee armies to work with us to reach more businesses through their value chains. We are also collaborating in new ways with sectors and strategic partners to lift up the importance of responsible business in solving the cost-of-living crisis and ensuring we are Planet Positive by 2030.

358 members at year-end (starting with 384; 72 resignations)

78% retention (target 87%)

23% of members engaging with three or more activities (target 38%)

+28 Net Promoter Score (NPS membership) (a reduction of -14)

We have launched a series of Responsible Business in Action events across the UK to share best practice and to co-create solutions for our communities, which will be supported by The Prince’s Seeing is Believing visits for the UK’s business leaders to enable faster, braver and bolder behaviour change.

1. An active membership base

To cultivate growth in our network we have invested in a number of initiatives and resources to maximise our reach with prospective new companies.

Our members’ invaluable feedback, as gathered through the annual customer experience survey, continues to serve as a guiding influence, shaping our focus in 2023/24 to support the network and its impact.

In 2022/23, across England, Scotland, and Wales, there was a net reduction in membership numbers. This outcome stems from a blend of multiple factors, encompassing the macro-environmental context and underscores the need to ensure we deliver sufficient support and value to bolster retention and attract an adequate number of new members for year-on-year expansion.

We now have developed engagement plans with our members, aiming to ensure that all members can readily work with us to develop and support their responsible business needs and maximise their potential impact.

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PROGRESS AGAINST OBJECTIVES

2. An active membership base

BITC Advisory Services helps us drive impact across the BITC Responsible Business Map and enable us to tailor our campaign calls in a way that best caters to our member needs. We work directly with our member organisations to drive positive change for diverse stakeholder groups, to evolve their business practices to become more sustainable, and to make positive contributions to the communities in which they operate. We offer a wide range of advisory and training solutions via our expert Advisers, who work across five key areas:

14,000+ employees supported

87% participants felt equipped to take action

+55 Net Promoter Score (NPS Advisory) (An increase of +4 and on target)

Our Advisory Team is also able to offer crosscutting and intersectional support, working with our members to respond to the opportunities and challenges that the journey to becoming a responsible business present. Increased regulation, an enhanced understanding of the importance of employee engagement, and a recognition of the risks associated with not acting mean that demand for advisory support across all areas of responsible business is growing.

In 2022/23, BITC’s Advisory Services delivered workshops and training to more than 14,000 employees around workplace inclusion, health and wellbeing, environment, social impact, and strategy and purpose. 87% of participants agreed that as a result of these sessions, they felt equipped to take action.

In our 2022/23 Business Plan, we set a target to maintain the high NPS scores we were receiving for our advisory sessions. We met our target of +55, an increase from +51 the previous year.

We invested in additional senior resources to support growth across all areas of Advisory Services, bringing in a Head of Responsible Business and Environment Advisory and a Head of Inclusion and Wellbeing Advisory. We also repositioned our community advisory offer as social impact advisory and developed new offers for our members to effectively respond to the cost-of-living crisis.

This year we developed a range of new products and services to further drive impact through our members.

We improved our deeper engagement advisory packages (Champion Package) by including a new event guide and champion knowledge exchanges to better support our members to make a positive impact on Inclusion and Wellbeing. We also introduced a new Champion product, with underlying support spanning across different areas of inclusion, in response to growing demands for this type of advice.

We developed new strategy and data-diagnostic frameworks for Inclusion and Wellbeing, and we developed a new session for members on building trust and transparency to improve data collection and declaration rates.

We created new training sessions and workshops to support our members across a range of issue areas, as follows:

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PROGRESS AGAINST OBJECTIVES

THE ADVISORY SERVICES WE OFFER:

What we plan on doing in 2023/24:

In the coming year, we will further develop and promote our leadership and executive coaching offers to increase advisory engagement with business leaders across all areas of responsible business.

We will also look to evolve the structure of our advisory packages in response to changing demand, consulting with our Critical Friends Group, Leadership Teams, and our Advanced Practitioners Group, as appropriate.

We will continue to offer a variety of delivery mechanisms – virtual, hybrid, and in-person – and will maintain our high levels of feedback, net promoter scores, and indicators such as participants feeling equipped to take action.

We will share our advisory expertise across BITC to develop new campaigning messages and change mechanisms; this will ensure that our delivery programmes remain responsive to business needs/trends, that they are sustainable, and that they are able to support BITC to be the best it can be at responsible business and to demonstrate to our network that we are ‘walking the talk’.

We will look to deliver greater impact across inclusion and wellbeing issue areas by further extending our advice into LGBTQ+ issues, neurodivergence, and increasing social wellbeing support alongside workplace-centred wellbeing initiatives.

We look to increase our members’ impact by delivering materiality and reporting advice to companies aligned with new responsible business standards and requirements. Additionally, we will look to increase our members’ actions on the circular economy, nature stewardship and supply chain climate engagement.

As our network grows, we will create more opportunities for our members to connect and share insights through mechanisms such as Knowledge Exchanges, Business Response Forums, and Peer Learning Forums, as well as by identifying examples of leading practices and case studies.

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WHAT OUR MEMBERS HAVE BEEN UP TO

RINGWAY INFRASTRUCTURE SERVICES: SOCIAL VALUE

Ringway Infrastructure Services (Ringway) teams are responsible for looking after more than 50,000km of the UK’s highways network – delivering specialist highway services across the largest highways maintenance portfolio within the UK, including the strategic road network (motorways and trunk roads), and the local authority network.

Surrey County Council commissioned Ringway to maintain Surrey’s public highways for at least the next 10 years. In order to better meet the Council’s social value aspirations, Ringway outlined a comprehensive social value strategy to identify key needs and issues in the region. A materiality assessment would be conducted to ensure the Social Value strategy was based on stakeholder inputs and material issues.

Over a four-month period, BITC’s Social Impact team worked with the Community and Place Manager at Ringway Surrey to carry out the materiality, research, and stakeholder engagement. BITC led thorough desk-based research, including a Surrey-specific needsanalysis, to understand the full extent of issues related to Ringway.

This formed a ‘long list’ of more than 100 responsible business issues. BITC condensed this to a ‘short list’ of 16 material issues by grouping key themes to create a digestible number of issues to test with stakeholders. All 16 issues had to be addressed at some stage and in some capacity. The results of this project determined areas of focus for Ringway when creating its longterm Social Value strategy.

To ensure a robust project, BITC ran a stakeholder mapping session with Ringway where all key internal and external stakeholders were engaged. This formulated the development of a stakeholder engagement plan for the project, consisting of 15 interviews and three focus groups, totalling 38 stakeholders across Surrey County Council, communities and internally at Ringway. These groups tested the 16 material issues.

Analysis showed that immediate strategic focus for Ringway should be: education, employment & skills, economic opportunities, climate action, and

health & wellbeing (including occupational health & safety).

Ringway is creating its long-term Social Value strategy that will respond directly to the needs of Surrey County Council and the communities. BITC’s materiality assessment provided tangible evidence in support of the evolving strategy. BITC also provided recommendations as part of the project around identifying the desired impact, developing a robust Theory of Change approach under the key issues and continuing stakeholder engagement within the local community.

“When I first engaged with BITC, I didn’t know what a materiality assessment was, but I knew I wanted a deeper understanding of local social and community issues, in order to root our social value work effectively. BITC has led me, and Ringway, through the process with ease and expertise, helping us all to engage with the process, and now the outcomes. The team’s gentle leadership, efficient organisation and general good humour has made what could be a dry, box-ticking exercise into a vibrant, energising, useful jumping off point that is sparking new ideas within our team. The personal commitment of the BITC team to social value, to responsible business, and to making things better for everyone in society, has undergirded every action and activity, and infused the whole process with integrity.

Chelsie is a warm, engaging person who brings her whole self to the table. She is completely on top of the process, as well as the administration of it, and exudes a confidence that is catching. She’s not afraid to challenge or be persistent, where necessary. I very much hope we can continue working together in the future.” Carolyn Jay, Community and Place Manager, Ringway Infrastructure Services

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PROGRESS AGAINST OBJECTIVES

OBJECTIVE 2: LEARNING FROM FOUR DECADES OF WORKING WITH, AND BEING LED BY, BUSINESS TO DRIVE SIGNIFICANT AND LASTING CHANGE FOR PEOPLE AND THE PLANET

Learning from the past to shape the future and being a business-led and business-driven organisation, we are using the legacy of our 40th Anniversary year to help shape our way forward. We have a renewed and invigorated programme to show senior business leaders first-hand the issues communities face, and we continue to bring the expertise of leaders from all regions of the UK together for advice and guidance to truly live up to our name – Business in the Community. And we’re inspiring others by giving C-Suite leaders a voice to share their personal work/life journeys and to talk about the current big issues facing society and the planet.

In this section of the report, we focus on the results of RB Live in December 2022, as the final part of reporting on the year; the legacy of The Prince’s Seeing is Believing programme that was brought back to life during this year; and the learning from leadership that we have experienced, thanks to our Regional Leadership Board, and profiled in our monthly podcast – The Lens UK Responsible Business Podcast .

Completing our 40th Anniversary Year

December 2022 saw the end of our 40th Anniversary Year activities. Much was reported in our 2021/22 Annual Report for this fabulous, high-profile year of activity, including events, research and campaigns that have already delivered tangible results. The year left an exciting and powerful longer-term legacy, which we are building upon. We had four key objectives, as shown below, along with the outcomes and impacts from the Anniversary year.

Our partnership approach to the Anniversary year enabled us to build new, and strengthen existing, relationships. We learned much from this approach and were delighted by the commitment of every member and partner who supported us.

Responsible Business Live 2022

His Majesty The King joined our Responsible Business Live event in Central Hall Westminster in December 2022 to mark our 40th anniversary, and he met with business leaders who have been driving the responsible business agenda since 1982. The event was attended by more than 300 senior business leaders.

Shortly after BITC was founded in 1982, the then Prince of Wales became the organisation’s Royal Founding Patron. Since then, he has championed key elements of our work, including the push to reduce inequalities across the UK, focussing on race, gender, wellbeing, climate action and access to employment and skills. In fact, BITC’s longeststanding campaign, the race equality campaign, was set up by HM The King in 1995 to address the inequalities for Black, Asian, Mixed Race and other ethnically diverse employees in workplaces around the UK.

Fellows

To acknowledge the support of those who have been campaigning alongside BITC for 40 years, BITC made 40 leaders who have worked closely with our organisation, Fellows . They include previous and current business leaders who have made an outstanding contribution to BITC and who have committed to being advocates and inspirers for us going forward.

Making Work Work campaign

The Anniversary year provided a significant opportunity to review how we talk about responsible business in a simpler way – one that appeals to everyone. Integrating our history into our narrative and sharing the impact of our work more clearly has driven a new approach to storytelling to share what members are doing to make work work for people and the planet.

We reached 150.97 million people through our Out-ofHome campaign and 2.3 million via our targeted ‘paid for’ social media campaigns. Throughout the anniversary year, our social followers increased by 9% and our newsletter subscribers increased by 7.6% . Visits to our Join Us page had an increase of 60% , and we inspired/prompted other members to take practical action and to share the campaign, bringing it to scale, with a further reach of 42.79 million, and we developed 18 case studies with our Making Work Work Partners.

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----- Start of picture text -----
SINCE THE PRINCE’S
SEEING IS BELIEVING
PROGRAMME BEGAN,
MORE THAN 25,000
BUSINESS LEADERS HAVE
TAKEN PART
----- End of picture text -----

The Prince’s Seeing is Believing programme

The Prince’s Seeing is Believing (SIB) programme , established in 1990 by our founding patron, King Charles III, was born from a simple but powerful belief that the best way to close the gap between the boardroom and the community was to take business leaders out to the communities themselves.

We established The Prince’s Seeing is Believing Council, chaired by John Studzinski CBE, Managing Director & Vice Chairman of PIMCO, to ensure the values and prestige of the programme are maintained and sustained. Many have used the visits to drive the campaigns that they have personally led for BITC.

We have secured funding from Salesforce to run the SIB programme over the next three years, and we have set a target of engaging 250 business leaders to join the visits over the next three years.

We committed to a number of SIB visits in 2022/23. The following have now taken place:

At our Responsible Business Live event (see page 13), HM The King also heard the action businesses are taking following recent SIB visits. This programme was started by HM The King following a visit to Halifax in 1990. The programme takes business leaders into communities in greatest need so that they understand the role that businesses play in addressing inequalities.

“There is no point in business leaders coming in and thinking they know the answers because they don’t. You need to listen and try and work out what you could do to help people.”

Paul Lewis, Firmwide Managing Partner of Linklaters LLP and visit leader Newport 2023

MORE THAN 80% OF BUSINESS LEADERS NOW TAKING FURTHER ACTION FOLLOWING A SEEING IS BELIEVING VISIT

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PROGRESS AGAINST OBJECTIVES

OBJECTIVE 3: COLLABORATING WITH BUSINESSES TO INVEST IN COMMUNITIES TO ENABLE GREATER SOCIAL MOBILITY AND TO SUPPORT SMALL BUSINESS.

What we plan on doing in 2023/24:

Over the coming year, we will ramp up our activity, developing a small number of strategic partnerships to support our work nationally and in our Places. We have three priority activities to support our work:

PLACE

Our strategic endeavours within communities throughout the UK are bannered under the term ‘Place.’ During 22/23, we committed to achieving 11 successful and sustainable place-based collaborations, underpinned by effective cross-sector partnerships.

Whilst we have not achieved 11 places, our progress has been consistent and noteworthy:

1. To ensure that all existing places are successful and sustainable

Success in transforming a place will only be evident over a much longer period than a year. It is therefore suggested that we evaluate this by considering how we are progressing against the following ‘conditions for success’:

2. To develop the plan to scale and expand to new places

3. Thought leadership and national influence

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WHAT OUR MEMBERS HAVE BEEN UP TO

SALESFORCE AND COVENTRY BUILDING SOCIETY CONNECT WITH FRONTLINE CHARITIES AND COMMIT TO LONG-TERM SOLUTIONS IN COVENTRY

Despite the many education and skills employment opportunities in Coventry, there is still a need to address skills shortages, from raising aspirations among schoolchildren to retaining skilled professionals and graduates in the city. Recent data published in the 2021 Census shows that more than 55% of households in Coventry are deprived.

The visit

Delegates from Salesforce and Coventry Building Society (CBS) and other organisations were brought on visits to better understand the impact of key issues, such as social mobility of residents in Coventry.

They visited the following community organisations:

Positive Youth Foundation – a charity established to raise the aspirations and life chances of young people through a range of education, employment and lifestyle programmes. CBS has taken its leadership team to provide skills volunteering through HR and coaching support, and Salesforce leaders are partnering to provide guidance and support for digital skills programmes, volunteering and long-term engagement.

Severn Trent Training Academy – is supporting the community by offering opportunities to gain valuable employability skills and training. As a key partner in the Coventry Food Network, CBS has made a significant investment in a ‘Homework Club’ to provide a safe space for young people to study, with the provision of a meal and access to tutors.

Foleshill Community Centre and Social

– Supermarket a dignified shopping experience and community support initiative. CBS funded the hiring of female support workers, as it was shared that victims of domestic violence were less likely to open up to male staff about issues. Salesforce leaders are partnering with the team to provide expert advice, technology support, and volunteering time to help the centre simplify and automate activities to drive greater efficiency and scale. It has also provided matched funding, alongside other businesses, and the centre has used the funding to build necessary extensions and improve kitchen facilities.

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----- Start of picture text -----
393 SMALL
BUSINESSES
SUPPORTED THIS
YEAR
----- End of picture text -----

OUR SMALL BUSINESS ACTIVITY

Last year, we focussed on refining and consolidating our approach to supporting small businesses by continuing to:

In total, 393 small businesses received support (against a target of 200) through our programmes, with a range of activities on offer including the following:

THIS IS THE MOST INSIGHTFUL SESSION I HAVE ATTENDED COVERING HALAL/ETHICAL FINANCE. I HAVE LEARNED SO MUCH. THANK YOU FOR INVITING ME.

Len Campey, BuBul

Post-event surveys showed that 100% of attendees said they felt better able to respond to their priority issues following the support received.

What we plan on doing in 2023/24:

In 2023/24, we will further develop the proposition for Small Business activity, bringing in additional partners to:

I WAS PLEASED WITH TODAY’S SESSION. I HAVE MUCH MORE CLARITY AND REASSURANCE. I NOW FEEL THAT I CAN MAKE MY BUSINESS MORE SUCCESSFUL BY TWEAKING THINGS AROUND Abdur Rehman Hussain

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PROGRESS AGAINST OBJECTIVES

REGIONAL LEADERSHIP BOARDS

BITC must understand the needs, issues and business support that is available across all regions of the UK. Our work in each region is overseen by a group of senior executives who form Regional Leadership Boards and who provide strategic guidance and support to us in achieving our social and environmental objectives, nationally and locally.

These Boards shape the agenda for action and work with other leaders to identify the unique ways in which businesses can help innovate and create more sustainable livelihoods and prosperous communities.

In the past year, our efforts extended across three nations, aimed at generating 140 well-qualified membership opportunities. Our strategy encompassed Responsible Business events, active board involvement and localised initiatives. Regrettably, these strategies did not yield a substantial influx of new members. Our collaborative target for income generation stood at £600k. While this objective was successfully met through initiatives in Scotland and with the backing of the Welsh Government, alongside contributions from our members and the community sector in Wales, we fell short of achieving this goal in England.

Our mission entailed establishing eleven dynamic, engaged and diverse boards, each comprising a minimum of 15 members, a strong chair, and reporting an aboveaverage NPS score for the organisation (scoring +41 in 2021/22). Progress made with the boards has been notable, marked by robust engagement, an average of 21 members per board, and determined chairs at the helm. Our boards have been connected more than ever this past year, through our programmes, our campaigns and collectively focussing on the cost-of-living crisis. However, the NPS score this year was disappointing, so this will be a priority in 2023/24 through the Regional Lead relationships and increased networking across the boards.

England:

We successfully ran a series of ‘Responsible Business in Action’ events spanning the entire UK, including five planned events in England. Despite encountering disruptions from train strikes, those events were met with commendable attendance from both existing and potential members. The England Leads collaborated closely with the business development team to pursue arising opportunities.

Over this year, there have been notable transformations within the nine England boards. Three new board chairs were appointed, and board members underwent a refreshing update, resulting in an average board size of 21 members. Our primary emphasis in England has been on establishing board stability, fostering growth, and enhancing interconnectivity among the boards, centred around pertinent issues and priorities.

It’s important to note that income generation within England proved challenging over the past year, prompting a dedicated focus on this aspect throughout the upcoming 2023/24 period. The England team recently underwent a transformative phase, transitioning from four Senior Leads to a team of nine Regional Leads. This change signifies that each lead will assume responsibility for a distinct region and a regional board. Additionally, they will oversee a portfolio of members within that specific geographical domain.

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PROGRESS AGAINST OBJECTIVES

Scotland:

Wales:

In the past year, our foremost objective revolved around cultivating a diverse Leadership board in Scotland, addressing the challenge of having only nine members. By the year’s end, we successfully welcomed six new members, all of whom hold positions as CEOs or Executive Directors within their respective organisations. This addition has brought forth a robust cross-sector representation, encompassing Scotland’s key industries.

Our concentrated efforts centred on actively engaging and enhancing the skill set of the board members, equipping them to effectively champion Responsible Business practices throughout Scotland. Notably, a new Chair, Judith Cruikshank, assumed leadership responsibilities – she also holds the position of Chair at RBS – coinciding with the arrival of our new Scotland Director.

Significant strides have been made in expanding our membership base in Scotland. Notably, a well-attended event took place at the Scottish Parliament, along with an Age at Work event held at Edinburgh Zoo. Furthermore, three additional events are already in the pipeline for the coming year in Scotland, including an inaugural Scotlandexclusive Members’ event.

Our impact extended to the successful execution of a substantial project for Scottish Enterprise, wherein we provided support to more than 50 SMEs, guiding them in embarking upon their Climate Action journey.

Our focus in Wales has been to establish a Place, Newport – the first in the nation for BITC. Our strategic approach involved engaging the board and a few key members, to ensure a robust and successful launch for Newport. This approach has proven effective, resulting in a noteworthy income of £100k over the year. Notably, two businesses have solidified their commitment to a three-year Place partnership, and more recently, we’ve garnered support from the Local Authority.

Our work with the Welsh Government remains robust and unwavering, as evidenced by the successful delivery of the first half of a two-year grant. Our influence is steadily expanding within the Welsh Civil Service, with recognition of the depth of knowledge and experience offered by BITC, and the value we bring to the table.

A significant milestone in our Welsh journey was marked by an event hosted at the Welsh Senedd during the year. Moreover, we’ve embarked on an expansive Wales-wide responsible business tour, engaging closely with our members, the Welsh Government, and local partners. We are committed to running events that strike a balance between current and prospective members, ensuring a diverse and enriching experience for all those who attend.

Northern Ireland:

Our work in Northern Ireland is shared on pages 34 and 35.

As we reflect on the past year’s achievements in elevating BITC’s profile in Scotland, our focus for the upcoming year will be to re-energise membership engagement. This will be achieved through in-person events, enabling members to connect, network, and gain insights into our ongoing campaigns and programmes.

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Business in the Community BITC Annual Report 2020/21 20

----- Start of picture text -----
ACCELERATING A JUST
TRANSITION TO NET ZERO
AND CLIMATE RESILIENCE
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PROGRESS AGAINST OBJECTIVES

OBJECTIVE 4: ACCELERATING A JUST TRANSITION TO NET ZERO AND CLIMATE RESILIENCE

In collaboration with hundreds of leaders from business, community groups and government, we have identified the key actions to deliver a future where both the businesses and the communities they serve can thrive.

CLIMATE ACTION

What we planned, and what we achieved:

----- Start of picture text -----
MEMBERS PLANNED ACHIEVED
----- End of picture text -----

MEMBERS PLANNED ACHIEVED
Committed to creating a
climate actionplan		 80% 73%
With a robust (e.g.
aligned to Race to Zero)
target to achieve net
zero carbon as close to
2030 aspossible		 150 174
Engaged with BITC
in areas of circular
economy		 100 59
Adopting Circular
EconomyPrinciples		 60 44
Using BITC’s Seven
Steps for Climate Action
to help shape their
strategies		 40 24

What we did in 2022/23:

What we plan on doing in 2023/24:

The following proposed initiatives aim to inspire, challenge and support ambitious climate action with businesses.

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PROGRESS AGAINST OBJECTIVES

These initiatives aim to drive ambitious climate action within businesses by providing support, tools and collaboration opportunities. By recognising success, facilitating knowledge sharing and enabling placebased action, BITC aims to accelerate the transition to a low-carbon economy, contributing to addressing the challenges of climate change.

HELPING BUSINESS TO REDUCE SUPPLYCHAIN-RELATED EMISSIONS AND THEIR IMPACT ON NATURE WHILE SUPPORTING SUPPLIERS

For the last four years, BITC has been a partner in the Interreg ProCirc project: an initiative set up to work with procurers to increase their understanding of the circular economy and to provide practical support to bring it into procurement.

In the final year of the ProCirc project, BITC worked with its members and partners to create Joint Statements of Demand focussed on three specific procurement categories:

  1. Circular professional clothing

These set out commitments (a statement) that a group of procurers from signatory organisations (a joint statement) will adopt, as well as the ‘circular asks’ that the procurers would like to see their suppliers offering in future (a Joint Statement of Demand).

Becoming a signatory to a Joint Statement of Demand helps procurers overcome several systemic challenges to buying more circular products.

  1. Office furniture

  2. Electric vehicle charger

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SHARING LEARNING, BUILDING NETWORKS AND DRIVING BUSINESS ACTION TO TACKLE SOME OF THE BIGGEST ISSUES FACING BUSINESS AND SOCIETY

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PROGRESS AGAINST OBJECTIVES

OBJECTIVE 5: SHARING LEARNING, BUILDING NETWORKS AND DRIVING BUSINESS ACTION TO TACKLE SOME OF THE BIGGEST ISSUES FACING BUSINESS AND SOCIETY

We campaign and support business to tackle some of the biggest societal issues we face. By using the workplace as a setting to highlight and address these challenges, we gain traction, raise profile and encourage a collaborative approach across all sizes, sectors and geographic parts of the UK to create powerful action.

In this section, we will share our key achievements over the past year in the areas of Employment and Skills, Gender, Race, Responsible Business and Strategy and Wellbeing.

EMPLOYMENT AND SKILLS

----- Start of picture text -----
BUSINESSES PLANNED ACHIEVED
----- End of picture text -----

BUSINESSES PLANNED ACHIEVED
Job Coaching and
other employment
support programmes –
volunteeringhours		 7,000 8,150
Individuals supported –
improved job prospects,
essential skills and
wellbeing		 710 812
Individuals into
employment		 250 196
Leveraged value £360,000 £407,250
Number of jobs
more accessible to
disadvantaged groups
(Big Goal – 2 million
by 2025) Interim goal
shown		 1.125m 1.02
Barclays LifeSkills
delivery in schools and
colleges		 800 1,500

What we have done

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PROGRESS AGAINST OBJECTIVES

GENDER

What we have done:

----- Start of picture text -----
BUSINESSES PLANNED ACHIEVED
----- End of picture text -----

BUSINESSES PLANNED ACHIEVED
Demonstrating
action taken towards
implementing equal
parental leave		 5 2
Taking targeted
action to enable male
employees to work
fexibly		 5 Work
underway
Improving their fexible
working processes and
policies as support for
workingcarers		 10
Enhancing their
parental/carers leave
policies to enable
equitable access and
uptake of parental
leave/carers leave		 15 7

WOMEN ARE STILL PAID LESS, EARNING 85 PENCE FOR EVERY POUND EARNED BY A MAN. WOMEN CONTINUE TO BE UNDERREPRESENTED IN SENIOR POSITIONS, CURRENTLY MAKING UP AROUND 30% OF SENIOR MANAGEMENT ROLES.

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PROGRESS AGAINST OBJECTIVES

RACE

What we have done:

----- Start of picture text -----
BUSINESSES PLANNED ACHIEVED
----- End of picture text -----

BUSINESSES PLANNED ACHIEVED
Signatories
recommitting to the
Race at Work Charter
(RAWC)		 600 599
Number of member
signatories to the RAWC		 193
Responses to the
RAWC Surveyin 2023		 130 231
Respondents to RAWC
Survey publishing
ethnicity pay gapdata		 26 106
Signatories to RAWC
participating in the
Cross Organisational
Mentoring Circles
(COMCprogramme		 45 31
Members improving
ethnicity data capture		 ?? 66.4%
(158)
employees
Government
implementing
mandatory ethnicity
pay-gap reporting		 Government launched
voluntary guidance for
employers in April 2023. Case
studies from employers to
follow.

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RESPONSIBLE BUSINESS AND STRATEGY

----- Start of picture text -----
BUSINESSES PLANNED / ACHIEVED
----- End of picture text -----

BUSINESSES PLANNED / ACHIEVED
Raise awareness of our
Embedding Purpose
report and its three key
recommendations		 Embedding Purpose report
– downloaded more than
400 times and picked up
by FE News. More than 350
business changemakers
reached through our events
Identify key enabling
actions to increase
the pace and scale of
responsible business
action to meet the
Global Goals		 6 Catalysts of Responsible
Business launched –
evidence-backed actions that
will accelerate responsible
business action, sponsored
by JTI UK and supported
by the Leadership Team.
More than 400 business
changemakers reached with
our written ‘how-to’ guides
and events, in addition to
inspiring videos and advisory
services

What we have done:

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PROGRESS AGAINST OBJECTIVES

WELLBEING

----- Start of picture text -----
BUSINESSES PLANNED ACHIEVED
----- End of picture text -----

BUSINESSES PLANNED ACHIEVED
Improve the overall
wellbeing performance
score of businesses
completingthe Tracker		 56% 45%

What we have done:

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PROGRESS AGAINST OBJECTIVES

What we plan on doing in 2023/24

Working Together

The proposed initiatives aim to inspire, engage, and challenge businesses to adopt more responsible and purpose-driven practices. The goal is to create a network of senior business leaders who can learn from and support each other in their sustainability efforts. Here is a breakdown of the planned activities:

Working Fairer

  - Scaling Impact in Places:

     - Develop a scalable Place Model to increase business leadership and investment in specific locations.

     - Introduce a new approach to Social Mobility Places and provide advisory support for effective implementation.

  - Sharing Evidence of “What Works”:

     - Share evidence of successful practices and initiatives that drive social mobility, promoting knowledge exchange and learning

  - Government Advocacy:

     - Work with government to advocate for faster action on skills reform, ethnicity pay gap reporting, gender equity and employee well-being.

  - Support Engagement:

     - Expand the Opening Doors campaign, focussing on skills-based recruitment and education outreach.

     - Launch a new wellbeing mandate and measurement tool, driving uptake among businesses.

     - Enhance audience engagement through targeted communications, events and compelling content.

     - Deepen engagement with Charter signatories and explore new sponsorship and advisory opportunities, including education and skills advisory services.

By implementing these initiatives, we aim to accelerate social mobility by stimulating business action, scaling impact in specific places, sharing evidence of effective practices and providing support with engagement opportunities for businesses.

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ADDRESSING THE URGENT CHALLENGES FACING SOCIETY IN TIMES OF CRISIS, SUCH AS THE COST OF LIVING

PROGRESS AGAINST OBJECTIVES

OBJECTIVE 6: ADDRESSING THE URGENT CHALLENGES FACING SOCIETY IN TIMES OF CRISIS, SUCH AS THE COST OF LIVING

A core part of our work in communities is matching the support of businesses to the needs of communities. One of the mechanisms that BITC has for managing this work is the National Business Response Network (NBRN) . NBRN was launched in early 2020 to help address the impact of COVID-19 on communities across the UK and was well supported by our members. During this period, BITC made 6,000+ matches where community need could be met by business support; helped 3,500 community organisations to meet rising demand; and had a direct impact on the lives of more than two million people across the UK.

In September 2022, we reviewed our criteria for reactivating the NBRN, in the context of the cost-of-living crisis, to ensure it was the right thing to do. The criteria are as follows:

  1. Is it of national significance?

  2. Is there a propensity to support from BITC members?

  3. Is there a need that the business community can meet?

Taking learning from the Covid-19 pandemic, and the Skills Exchange, we planned to take a more focussed approach to how we work. In practice:

Alongside the reactivation of the NBRN, a Cost-of-Living Taskforce was set up, and this has looked at solutions to the crisis at a more strategic level.

During COVID-19, we had significant investment in NBRN, but this has been more challenging during the cost-ofliving crisis. Also, our members have not been as engaged in NBRN as they had previously been, and we have struggled to get momentum, particularly around skillsbased volunteering. However, our structured volunteering programmes have strengthened, and we believe that we should now move towards a brokerage approach for our members, offering skilled volunteering opportunities to our members’ employees, including through structured programmes, such as Job Coaching.

There has been some success though, and overall, we have matched 1,063 requests (target of 1,700) from community organisations for skills support, from BITC members, to grow and sustain their vital work. This has been supported by 104 businesses supporting 521 community organisations, and donating £477,272 worth of goods, such as smartphones, laptops, data packages, clothing and appliances to support the most vulnerable.

We have also helped increase capacity in community organisations, with 71% of those we worked with reporting increased capacity and capability to deliver their services, because of skilled support from BITC members. We have delivered 4,340 volunteer hours, against a target of 9,000 hours, from our members through one-on-one support and webinar delivery. Our strongest metric is against the needs met measure, where 100% of community organisations that requested skills support had their needs met.

What we plan on doing in 2023/24:

We intend to develop a solution for the demand we are hearing from members, around structured, purposeful volunteering that can demonstrate social impact. Simultaneously, we will focus the support of our members in our current and future places, so our community work will be amplified in those areas, and we increase the likelihood of success and of course, our collective impact.

£477,272 WORTH OF GOODS DONATED VIA THE NATIONAL BUSINESS RESPONSE NETWORK

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OBJECTIVE 7: DRIVING THE RESPONSIBLE BUSINESS MOVEMENT IN NORTHERN IRELAND

The Northern Ireland team led by the NI Advisory Board, continued to deliver against its three-year plan: Fit for the Future .

We committed to developing and growing the responsible business network in Northern Ireland, and in 2022/23, we made the following achievements against our targets:

In terms of engaging our members, we challenged them further to convene and tackle some of the biggest issues facing Northern Ireland. We had identified three priority areas, with the following achievements:

Tackling Inclusion

Promoting Environmental sustainability

In challenging Northern Ireland business to achieve the highest standards in environmental sustainability we have:

Addressing Education and Skills

Having set out to support 10,000 young people and children, including those with the biggest barriers to work, to realise their potential, we continue to make progress, as shown below:

Finally, in the transition to a post-pandemic world, the level of engagement in our wellbeing offer grew with support provided in men’s and women’s health, mental wellbeing and building resilience. The year ended with a major wellbeing conference – Healthy Working Lives – attended by more than 180 people.

Our focus on volunteering has taken time to rebuild, as members and communities deal with new hybrid working arrangements. This has encouraged us to develop creative solutions and opportunities.

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GOOD FOOD FUND | HELPING 10,000 CHILDREN ACROSS NORTHERN IRELAND

The Good Food Fund has been established to help tackle the issue of hunger in Northern Ireland. It is specifically designed to support primary school children, with the aim of helping more than 10,000 young people until the end of 2023. It provides a safe and secure mechanism for businesses to work collaboratively and to provide much-needed support quickly.

This project was established by the Northern Ireland Cost-of-Living Taskforce and has received great support from businesses and media outlets. Individuals can also now support the project through a Go Fund Me page. We will continue to fundraise and distribute donations until December 2023.

22 10,000 57 £750K BUSINESSES CHILDREN SCHOOLS RAISED SUPPORTED

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il r. UR PEOPLE

OUR PEOPLE

As an employer, Business in the Community aims to make its vision of responsible business a reality by developing a sustainable, inclusive, and high-performing workplace building trust, capability, and skills for the future.

Our three critical goals in 2022 were as follows:

on good succession planning practices. We have seen great success in the use of apprenticeships alongside our existing external coaching programmes, which are available for all our colleagues to utilise.

Hearing our colleagues’ voices was vital to further enhancing our already strong employee proposition. We continued to work closely with our recognised union (Community), our Employee Forum of elected colleagues, and our colleague networks to hear and act on colleague feedback.

These were overseen by our BITC Executive and, ultimately, the BITC Board.

2022/23 Progress

We reaffirmed our focus on truly being an inclusive employer, raising the bar on our diversity aspirations to build even further our inclusive culture.

We continued to use challenging ethnicity targets for ourselves to increase our ethnicity diversity to 25% Black, Asian, Mixed race or other ethnically diverse groups, achieving a minimum of 23% by the end of 2023. We also have an objective that at least 20% of the Board of Trustee Directors will be composed of Black, Asian, Mixed race or other ethnically diverse trustees by the end of 2023.

We focussed on our commitments made as signatories of the Race at Work Charter to shape our actions. We listened to the experiences of all our colleagues to understand whether this is different for different groups of colleagues. We have launched a sponsorship programme for those colleagues from ethnically diverse backgrounds to support their development and have made better use of our colleague inclusion data to understand the trends and experiences of colleagues.

We remained committed to ensuring the wellbeing of our colleagues and launched our commitment to hybrid working, using internal and external insight to help shape the best ways of working for BITC. Supporting our managers and colleagues to have regular wellbeing conversations and access to great practical guidance and resources continued to be at the core of our wellbeing strategy.

We further embedded our approach to performance management so colleagues can be their best at work. We encouraged great conversations between colleagues and their line managers, to enhance development and growth. We embedded our skills and development matrix as a way of identifying the development needs of colleagues in those development conversations alongside focussing

We introduced a colleague journey concept to set out what good looks like for colleagues and how we want it to feel for colleagues at every point on their colleague journey with BITC’s potential future employees. This would be from attraction to onboarding, to growing and thriving in their roles, to when we wish them well as they leave BITC as an advocate for us. We have used this concept to refresh our recruitment and onboarding approach to enhance the experience for individuals and to simplify processes while keeping true to our commitment to “an inclusive approach in everything we do”.

Our policies and benefits remain a key element of our employee proposition, and we constantly look for ways to enhance these, e.g. from improving our flexibleworking policies – so that all colleagues have a right to request flexible working from day one – to revitalising our commitment to volunteering as a way BITC colleagues can demonstrate their own personal way to making an impact on society.

As an employer, Business in the Community is required to carry out Gender Pay Reporting under the Equality Act 2010. We use our median gender pay gap as this is in line with reporting of national statistics reported by the ONS.

Our median gender pay gap for 2022 was 4.6% compared to -2.5% in 2021. The median gender pay gap indicates that, on average, women are paid 4.6% less than men at the snapshot date. (5 April 2022).

We do acknowledge that we are working with small and uneven data sets and a significantly smaller male population (27%) than female population (73%). As a small organisation, a relatively minor change to the workforce has a disproportionate impact on the figures.

We remain determined to monitor our gender pay gap and what drives it, so that we can address any gaps and can ensure that men and women at BITC can progress equally. We are committed to ensuring our policies and practices are fair, inclusive and strong, to help address workplace inequalities.

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OUR PEOPLE

There is currently no legal requirement to report on ethnicity pay gaps, but we believe that it is incredibly important to do so and have been encouraging other organisations to report on this, as well as pushing the government to legislate on it.

The BITC ethnicity median pay gap in 2022 was 0.7%. This means that our Black, Asian, Mixed race and other ethnically diverse colleagues are paid, on average 0.7 % less than our White colleagues.

While our ethnicity pay gap is very small we continue to strive to encourage and promote diversity and inclusion with a clear focus on our race commitments and on being transparent in our progress, using our ethnicity targets as a key driver of change.

What we plan on doing in 2023/24:

We will continue to ensure that inclusion, wellbeing and development are at the heart of everything we do, but in this next year, we are shaping our people’s priorities around the experience we want our colleagues to have at the different stages of their colleague journey with BITC.

Our key people objectives

This year we are prioritising specific objectives:

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WALKING THE TALK ~~OUR SUSTAINABILITY COMMITMENTS~~

Net Zero Progress and Plans

In the financial year, we continued to focus on our largest sources of carbon emissions (business travel and employee commuting) as identified by our base measurement in 2019 with a view to realise significant reductions as part of our race to zero campaign and commitment. Recommendations based on the 2019 measurement also required us to focus on emissions from buildings and improvement in data collection.

We have prioritised the above areas over our emissions from downstream and upstream of our operations as well as from purchased goods and services given the comparatively small proportion of these areas in our baseline and these are not included in our current measurement. Plan this year to do so this year so that the results can be included in and form part of our long-term reduction plan.

We were aware that there would be some changes in our ways of working with the requirement for office-based colleagues to return to working from the offices and for in person delivery on some of our programmes. Our plans for the year therefore included the development of a hybrid working policy to maintain the low levels of travel reported in 2021-22 whilst balancing this with achieving our delivery and impact targets. For BITC, the results from the current years’ carbon emission measurement feel like a more realistic basis (in terms of business operations) on which to set science-based emission reduction targets.

Our Carbon Footprint and Plans

For this financial year, our carbon emissions measured at a total of 138 tonnes of CO2e (2022 restated: 92 tonnes of CO2e). This is broken down as below:

The above information shows over half, at 55% of our carbon emissions come from Scope 3. Further analysis of Scope 3 emissions reveals that 58% of this is generated by employee commuting and 42% by business travel.

We have re-stated the carbon emissions for 2022 to remove the emissions from working from home on the basis that it is a voluntary declaration and we need further assurance on the methodology used in its measurement. The effect of this is that our emissions for employee commuting changed from 44 tCO2e to 14 tCO2e, and total emissions from 122 tCO2e to 92 tCO2e for 2022.

– Scope 1 & 2 Buildings, Premises and Utilities

There is a slight change from 2022, mainly from an increase in electricity consumption, as we have returned to the office. The movement from 2019 reflects that we have reduced our premises and also are now using renewable energy in Belfast, Northern Ireland. Coming off our fixed energy contract at the London office, we have moved on to 100% renewable energy (a green tariff) and thus no carbon emissions from this source. We expect, based on this years’ consumption, that this will result in a further 35% reduction in our emissions from Scope 1 & 2.

– Scope 3 Employee Commuting

Employee commuting excludes emissions generated by employees working from home and the data is collated from a workplace survey of BITC employees. There is an increase in commuting as we encourage staff to return to the offices for collaboration. Throughout the year we consulted with different stakeholders and developed our hybrid working policy which came into effect from Sept 2023. We hope this will help in striking a balance from an environmental perspective on our emissions from utilities and employee commuting.

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WALKING THE TALK ~~OUR SUSTAINABILITY COMMITMENTS~~

Scope 3 – Business Travel

Plans for 2023/24

There is an increase in travel from employees in the performance of services and delivery of impact, although this is nowhere near pre-pandemic levels of travel. This change was anticipated, but we put in policies/ directives to keep the increase to a managed level. During the year, we implemented a requirement of senior management approval prior to booking flights, thus requiring a justification of the decision to fly instead of other options and significantly limit internal flights. We also put a restriction on business travel in the later part of the reporting period, with delivery expected to be virtual if possible.

Our commitments for the next year include:

– Scope 3 Working from Home

We are excluding the emissions from working from home from our reporting because we have little control over this area. This is an optional disclosure however we intend to separately track and communicate this impact. Understanding and measuring the impact of working from home on our overall emissions is a new area, and we are calculating using the Ecoact methodology which was developed in 2020.

Our measurements in 2022 and 2023 returned emissions of 409 tCO2e and 377 tCO2e respectively.

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OUR FUTURE PLANS

The essence of BITC is our vision of a fairer and greener world driven by fairer and greener businesses. We exist to work with and activate our network to transform lives and help communities thrive . To achieve this our priorities are focussed on our 2032 ambitions:

To drive our ambitions, we will:

1. Focus our work to scale the impact we have in our priority areas for action

2. Grow the movement

Members are our agents of change. Our ability to drive societal and environmental change is dependent on us mobilising their individual and collective power as a force for good. Hence, we will continue devoting increased energy to ensure we are offering value to members, listening to their feedback and responding to their needs with the aim of significantly growing the responsible business movement with businesses of every size across the UK to effect greater impact.

3. Build our leadership network

To do this, we must continually demonstrate how our network offers value for purposeful business leaders and how we can engage, inspire, challenge and drive collective action. We will scale-up the Prince’s Seeing is Believing programme of visits across the UK, develop meaningful networking opportunities and create a new series of dialogues and roundtables to create safe places for debate and innovation to be discussed, supported and implemented.

We must also better use the power of advocacy and do more to engage our powerful network of leaders, and we must provide them with platforms on our boards, leadership teams and taskforces to raise our profile and to engage others.

4. Secure long-term partnerships for transformational change

The impact of our work takes time and requires longterm, sustained commitment to deliver. We want to remove the uncertainty that comes from short-term funding to a model where, with partners, we work for the long-term to achieve shared strategic objectives, be that in locations and communities or on issues benefitting from a collective response.

To drive sustained positive impact, particularly in our four priority areas, requires activating the power of businesses, leaders, government, think tanks, academia, community organisations, and national and local governments and councils.

5. Support and empower our people

While the past year has brought new challenges for us all, BITC continues to be a powerful force in promoting collective, constructive responses to these challenges. Businesses have responded well to our work, and we are successfully progressing our efforts to establish significant new strategic partnerships.

Over the next financial year, by focussing on our ambitions, we will accelerate the pace and scale of the change we and our network make. We will extend our outreach, collaborating with partners and others proactively to influence and achieve more, faster. We will be more visible and will continue to raise our profile to confidently talk about our ambitions and to share our knowledge and expertise. To support that, we will focus resources on telling the stories of outcomes we will devote further effort to measuring and reporting

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OUR FUTURE PLANS

our impact; and we will always celebrate the legacy of our Royal Founding Patron King Charles III’s sustained leadership and vision so that together we grow the responsible business movement and scale-up the pace and impact of what we do.

Specifically, our plans for the year ahead include the following key initiatives:

The coming year will bring important changes for BITC as we begin to see the impact of our new CEO Mary Macleod’s determination to focus our work on larger-scale ambitions, to better articulate the impact of our work and to recognise progress and achievement. We have already received a positive response to our narrative and this more focused way of working, putting our members at the heart of all we do. As a result, we are seeing greater interest in forming big strategic partnerships with us, particularly in specific places and greater confidence in our ability to convene action-orientated collaborations to drive change.

• The Prince’s Seeing is Believing Programme – with the support of Salesforce, and further sponsors we hope to secure, we will grow the delivery of The Prince’s Seeing is Believing visits; this year, we will take another 150 senior leaders out to ‘left behind’ communities to understand their issues first-hand and to promote the collaborative interventions businesses can make to achieve a significant and long-term difference in those places or on issues critical to our priority work areas.

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FINANCE REVIEW

FINANCE REVIEW

The financial statements for the year have been prepared in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities SORP FRS 102.

The accounts incorporate the results of Business in the Community (BITC) and its subsidiaries (BITC Trading and Advisory Ltd and Scottish Business in the Community [dormant]).

In overall terms, BITC recognised a net total decrease in the year in total funds of £1,850k (last year decrease of £1,103k). This comprised:

Movement in Unrestricted Funds (£1,239k)
Movement in Restricted Funds (£591k)
Movement in Endowment Funds (£20k)
Total Movement in Funds (£1,850k)

Incoming resources, as reported in the Statement of Financial Activities on page 52 were £14.0 million in 2023 (2022: £14.5 million). These total incoming resources are shown below by income stream.

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FINANCE REVIEW

The principal reason for the decrease of £1,239k in unrestricted reserves in the year was a shortfall against planned income. Costs deployed in the previous year against the NBRN project were retained in anticipation of further funding, which did not materialise to the extent planned and have therefore led to a reduction in unrestricted reserves. The lower level of restricted funds held at the end of the financial year relates to the 40th anniversary project that was received in FY21/22 and spent in the first half of the period FY22/23.

Reductions in income from membership, Advisory services and Leadership Teams reflect the difficult conditions that both we and our members faced during the period against the backdrop of economic uncertainty and high inflation.

Programme funding grew as we secured new funding for a smaller-scale ‘cost of living’-focussed NBRN programme and further funding for our Place activity. Campaign funding reduced reflecting lower levels of sponsorship.

Our operations in Northern Ireland experienced a strong year with good membership renewal rates and increased sponsorship.

Gift in kind income to support our activities increased by £36k to £1,062k (2021/22 - £1,026k) and we continue to be thankful for this vital contribution from our member companies.

and sponsorship activities. The company had income of £709k, which was a small increase in the year of £11k and generated a profit of £568k (2022: £407k). As in prior year all profits have been gifted to the parent charity.

All BITC’s income, including members’ contributions, is used solely to finance expenses incurred in connection with its mission.

The negative movement in unrestricted funds of £1,239k (2022: £60k increase) represents a decrease in free reserves available to support any part of the charitable undertakings of the company.

The net movement in the unspent restricted funds arises from the differences in timing between the recognition of the income and the incurring of the related expenditure. This year the restricted funds of £1,783k at 1 July 2022 decreased by £591k (2022: £1,143k decrease) to £1,192k at 30 June 2023. The largest reason for this decrease is the deployment of funding held relating to the 40th Anniversary programme.

The endowment funds connected with the development of the BEAM project reduced by £20k to £324k (2022: £20k decrease to £344k).

Economic Conditions and Going Concern

Total expenditure increased by £243k and amounted to £15.8m for the Financial Year 2022/23 (2021/22 £15.6m).

The main source of increased expenditure was salary costs, which grew by £860k. This increase was partly driven wage inflation during the period as we supported staff through the cost of living crisis and also reflected additional investment in the membership and advisory team as we sought to grow this important source of unrestricted income.

We saw decreases in our other cost lines as we endeavoured to manage down overheads. Other staff costs and travel reduced by £ 211k whilst facilities and office costs fell by £137k. We incurred reduced project expenditure in light of the reduced funding in relation to NBRN as well related to the 40th Anniversary project expenditure where we incurred a large proportion of our costs in the prior year.

Business in the Community had one active subsidiary during the year supporting its activities, BITC Trading & Advisory Limited. This represents the trading arm of the organisation, with income generated through advertising

We continue to be able to access funds from our member companies and from the public sector where our core initiatives demonstrate that they meet both societal need and funding expectations. Societal need for the activities we campaign, support and deliver on has never been greater due to both the ‘cost of living’ crisis and the environmental challenges we face.

In light of the significant reduction in unrestricted reserves in FY22/23 management has implemented a financial resilience action plan to restore the organisation’s financial strength. The four pillars include:

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FINANCE REVIEW

We have reviewed our planned income streams over the next 18 months and stress-tested the resulting cash flow forecasts to determine the resilience of our financial position to further shocks.

Consequently, we have a reasonable expectation that BITC has adequate resources to continue in operational existence for the foreseeable future. The accounts have therefore been prepared on the basis that the charity is a going concern.

Reserves and Reserves policy

The total consolidated reserves of the Group were £2,615k at June 2023 (2022: £4,465k). Of this, £324k (2022: £343k) is held as endowment funds reflecting the value of fixed assets donated to the charity, £1,192k (2022: £1,783k) is held as restricted funds where the application of such funds is restricted to a given activity within the overall objectives of the Group. The remaining reserves are unrestricted or designated funds and include £420k attributable to fixed assets which are, therefore, not freely distributable. The residue of £679k is designated as free reserves.

The company holds those free reserves to provide working capital to finance its day-to-day operations and to provide a safeguard against any unforeseen contingency, including a downturn in support or activity, that could lead to expenditure exceeding income, and ultimately to protect its solvency in the event of any curtailment of its activities. The reserves policy, determined by the Directors, is to reflect the minimum level appropriate for its needs in a changing environment. An evaluation of the costs of total cessation in a worst-case scenario has been carried out which estimated that the unfunded extra costs would require a minimum level of unrestricted free reserves of £1,736k.

Currently free reserves are significantly below the level that the policy targets and therefore a plan to reduce this gap has been developed. It is the aim of the charity to return within three years to a position where reserves are higher than the reserves policy target. The structural savings described above are a key part of this plan, along with initiatives to generate additional, more-diversified income.

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FINANCE REVIEW

Risk policy

The Board is responsible for the management of the risks faced by the Company and the Group.

A risk management process is in place and continues to be refined and enhanced with the assistance of the Finance & Audit Committee. Through this risk management process, the Directors have identified the key risks to which the company is exposed and the actions in place to address them.

The significant risks facing the charity are:

Key risks identified by our review Controls and mitigations Macro-economic uncertainties, in particular, the Control: relationship management working closely with members cost-of-living crisis and increased inflation and to highlight the relevance of BITC’s activity and campaigns to commodity prices could cause businesses to cut current challenges. discretionary expenditure, causing a loss of Mitigations: Implementation of financial stability plan. Close members, or lower programme participation monitoring and forecasting of core and fixed costs in relation to income, especially long-term commitments. Widening diversified income streams. Securing longer term funding commitments. BITC’s purpose, programmes and services could Control: regular review of member appetite, including use of become out of step with the needs of businesses external references (satisfaction surveys and reference panels); causing a reduction in member numbers and competitor analysis; pipeline for recruitment and follow-up of any income. resignations. Mitigations: boards and leadership team structure keeps BITC close to business-relevant issues. Changes to membership engagement proposition. CEO-led review with current and former members. Streamlining and maximising efficiencies in Control: Workflow monitoring and forward planning of resource response to income volatility could have a need. detrimental effect on our resources which prevents Mitigations: maintain and improve flexibility and agility of our us from reacting to the needs of our members and internal structures and individual and team accountabilities to embracing opportunities to deliver impact. deliver on new opportunities whilst supporting cost reductions. Reduction in, termination of, or failure to deliver key Control: regular reporting and monitoring of quality of delivery. programmes could damage reputation or reduce Mitigations: regular review of activities and relevance. critical mass. Failure to ensure that the correct safeguarding Control: regular reporting and review provided to both the processes are in place could mean that executive and Trustee board. safeguarding issues are not resolved which means Mitigations: appropriate training to all staff in the charity including that vulnerable people are put at risk and the charity volunteers, partner organisations and consultants could face legal penalties. Risks relating to the Environment, including climate Control: Measurement of our carbon emissions, reporting change. Being seen to be leaders in this area and externally once a year on our website. BITC has signed up to the ensuring we manage and reduce as much as SME Climate commitment. possible our own carbon emission is vital for our Mitigations: Development of policies and ways of working to reputation. ensure that we reduce our carbon emissions in the time frame we have set. Reputational damage resulting from a loss of Control: management overseeing the maintenance of systems confidential data. and databases to improve resilience. On-going compliance with GDPR requirements. On-going mandatory staff training on Denial of access from malware could mean that our information governance across the organisation. operations are severely impacted, or intellectual property is lost. Mitigations: Moved all our systems to the cloud with secure and robust access and controls in place. Risk awareness training and We could also suffer fines or penalties. practices regarding IT security for all staff. Maintaining attainment of CyberEssentials+, a widely accepted security standard.

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FINANCE REVIEW

The risks have been reviewed, both in relation to the opportunities and the risks arising from the structure of the Group and its culture, highlighting in particular its entrepreneurial and campaigning nature and the strong emphasis on staff involvement.

The processes that are in place to both monitor and to mitigate the effects of such risks are recognised to only provide reasonable and not absolute assurance that key risks have been adequately identified and managed.

The design of the systems and controls covering the breadth of the activities is considered to be appropriate for the size and complexity of the group’s activities. These procedures are regularly reviewed, and amendments are introduced to meet the changing needs of the organisation. There is no evidence that there is any material failure of these controls.

Statement of directors’ responsibilities

The Trustees (who are also the Directors of Business in the Community for purposes of company law) are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Directors to prepare financial statements for each financial year. Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group, and of the incoming resources and the application of resources including income and expenditure of the charitable company and of the group for that period. In preparing these financial statements, the Directors are required to:

Equal Employment policy

We respect all individuals and are opposed to all forms of unlawful or unfair discrimination on the grounds of ethnic origin, nationality, gender, sexual orientation, gender identity, disability, religion and belief, age, work pattern, family status and we build a culture that values meritocracy, openness, fairness and transparency.

At BITC, this policy is applied to all processes relating to recruitment, employment and training and to any dealings with members and stakeholders.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Companies Acts and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group, and hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far, as each of the Directors is aware, there is no relevant audit information of which the group’s auditors are unaware. The Directors have each taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the group’s auditors are aware of that information.

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FINANCE REVIEW

Auditors

Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor and a resolution proposing their re-appointment will be submitted to the forthcoming Annual General Meeting.

This Annual Report, prepared under the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the Companies Act 2006, was approved by the board on 15th November 2023, including in their capacity as company directors approving the Strategic Report contained therein, as well as the governance information set out on pages 73 to 76, and is signed as authorised on its behalf by:

GAVIN PATTERSON CHAIR, BUSINESS IN THE COMMUNITY 15 November 2023

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AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF BUSINESS IN THE COMMUNITY

OPINION

We have audited the financial statements of Business in the Community (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 30 June 2023 which comprise the Consolidated statement of financial activities, the Consolidated and Charity balance sheets, the Consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the [charitable company/group] in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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AUDITOR’S REPORT

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion based on the work undertaken in the course of our audit

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities . This description forms part of our auditor’s report.

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AUDITOR’S REPORT

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were Taxation legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of grant and contract income, the valuation of gift in kind income recognition and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance and Audit Committee about their own identification and assessment of the risks of

irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, detailed review of timing of recognition of grants and contracts on a sample basis, detailed review of the valuation of gifts in kind on a sample basis, review of a sample of year end accrued and deferred income balances and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

USE OF OUR REPORT

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

VINCENT MARKE

Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London

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STATEMENT OF FINANCIAL ACTIVITIES

BUSINESS IN THE COMMUNITY (A COMPANY LIMITED BY GUARANTEE)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2023

Unrestricted Funds Unrestricted Funds Restricted Funds Restricted Funds Endowment Funds Endowment Funds Total Funds
Note FY 2023
£000		 FY 2022
£000		 FY 2023
£000		 FY 2022
£000		 FY 2023
£000		 FY 2022
£000		 FY 2023
£000		 FY 2022
£000
Income from
1
Donations &
Legacies		 268 126 794 900 –
–
1,062		 1,026
Investments 38
4		 5 – – – 43 4
306 130 799 900 – – 1,105 1,030
Income from
Charitable
Activities
3		 7,874 7,799 5,009 5,663 – – 12,883 13,462
Total Income 8,180 7,929 5,808 6,563 – – 13,988 14,492
Expenditure on
Charitable
Activities
3
Total
Expenditure		 9,419 7,869 6,399 7,706 20 20 15,838 15,595
9,419 7,869 6,399 7,706 20 20 15,838 15,595
Net Income/
(Expenditure)
for the Year		 (1,239) 60 (591) (1,143) (20) (20) (1,850) (1,103)
Reconciliation
of Funds
Total Funds at
1 July 2022
Total Funds at
30 June 2023		 2,338 2,278 1,783 2,926 344 364 4,465 5,568
1,099 2,338 1,192 1,783 324 344 2,615 4,465

The charitable company has no recognised gains and losses other than those shown above.

Notes 1 to 15 form an integral part of these financial statements

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BALANCE SHEETS

CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 30 JUNE 2023

Company Registration Number 01619253

Note Consolidated
30 June 2023
£000
Consolidated
30 June
2022
£000
BITC
30 June
2023
£000
BITC
30 June
2022
£000
Fixed Assets
Tangible Assets
5		 744
763
744
763
Current Assets
Debtors
7		 2,428
2,126
2,299
2,116
Cash at bank in hand
8		 2,552
5,075
2,493
4,970
Total Current Assets 4,980
7,201
4,792
7,086
Current Liabilities
Creditors – amounts fallingdue within oneyear
9		 (3,109)
(3,499)
(2,921)
(3,384)
Total Current Liabilities (3,109)
(3,499)
(2,921)
(3,384)
Net current assets 1,871
3,702
1,871
3,702
Net assets 2,615
4,465
2,615
4,465
Represented by:
Unrestricted funds
•General funds
•Designated funds		 1,099
–
2,338
–
1,099
–
2,338
–
Restricted funds 1,192
1,783
1,192
1,783
Endowment funds 324
343
324
343
Total funds
3(f)		 2,615
4,465
2,615
4,465

The net (expenditure)/income for the financial year dealt with in the financial statements of the parent Company was a deficit of £1,850k (2022: a deficit of £1,103k).

Approved by the Board of Directors on 15 November 2023 and signed on its behalf:

GAVIN PATTERSON Chairman of Business in the Community

JANE ASHCROFT CBE

Trustee and member of the Finance & Risk Committee

Notes 1 to 15 form an integral part of these financial statements

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CASH FLOW STATEMENT

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2022

Year Ended
30 June
2023
£000		 Year Ended
30 June
2022
£000
Cash infow/(outfow)from operatingactivities (2,527) (1,641)
Cash fows from investingactivities
Interest Income 43 4
(Purchase)/Sale of tangible fxed assets (38) (40)
Net cash infow from investing activities 5 (36)
Net increase/(decrease)in cash and cash equivalents (2,522) (1,677)
Cash and cash equivalents at 1 July2022 5,075 6,752
Cash and cash equivalents at 30 June 2023 2,552 5,075

RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

Year Ended
30 June
2023		 Year Ended
30 June
2022
£000 £000
Net income/(expenditure)for the reporting period(asper the SOFA) (1,850) (1,103)
Adjustments for:
Interest Income (43) (4)
Depreciation charges 58 51
Decrease/(increase)in Debtors (302) (444)
(Decrease)/Increase in Creditors less than oneyear (390) (142)
(Decrease)/Increase in Creditorsgreater than oneyear – –
Net cash infow/(outfow)from operatingactivities (2,527) (1,641)

ANALYSIS OF CASH AND CASH EQUIVALENTS

Note 8 Year Ended
30 June
2023		 Year Ended
30 June
2022
£000 £000
Cash in hand 2,552 5,075
Notice deposits(less than 3 months) – –
Total cash and cash equivalents 2,552 5,075

Notes 1 to 15 form an integral part of these financial statements

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NOTES TO THE ACCOUNTS

NOTES TO THE ACCOUNTS

1. ACCOUNTING POLICIES

a) Charitable Status

The company is limited by guarantee (company registration number 01619253) and is a registered charity in England and Wales (297716) and Scotland (SC046226). The address of the registered office is 137 Shepherdess Walk, London N1 7RQ.

b) Basis of Preparation and Statement of Compliance

The Group and Charity financial statements have been prepared in accordance with the Statement of Recommended Practice: “Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (SORP) issued on 16 July 2014 and the “Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” (FRS 102). They also comply with the reporting requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the Charities Act 2011.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

As highlighted in the report of the Directors, having assessed the charity’s financial position, its plans for the foreseeable future, the risks to which it is exposed and the detailed cash projections the trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis.

Business in the Community constitutes a public benefit entity as defined by FRS 102. The Trustees have taken advantage of the exemption under FRS 102 not to separately disclose categories of financial instruments and items of income and expenditure for the parent charity as these have been presented on a group basis.

Consolidation

The Statement of Financial Activities and the Consolidated Balance Sheet for FY 22/23 consolidate the results of the Charity and its wholly-owned subsidiary, BITC Trading & Advisory.

The results of the subsidiary are consolidated on a line-by-line basis. Intra group transactions and year end balances are eliminated on consolidation. In accordance with section 408 of Companies Act 2006 no separate Statement of Financial Activities has been presented for Business in the Community.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, which are described below, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The key estimates made in these accounts are:

An estimate of the value to the charity of donated services (gifts in kind). There are instances when the donor provides valuation of the services provided, at the cost to them, which are over and above what the charity would have expended, therefore a revaluation of these services is done to reflect amounts we would have reasonably incurred. This is usually based on the cost of similar services incurred if there is precedence. These estimates are included on the SOFA under Donations and Legacies, and as Voluntary income in the notes to the accounts, see 3)a and 3)b for further information.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The principal accounting policies applied in the preparation of the Group and Charity financial statements are set out below. These policies have been consistently applied to all the years presented.

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NOTES TO THE ACCOUNTS

c) Statement of cash flows

The Charity has taken advantage of the exemption in FRS 102 from preparing a single entity statement of cash flows, on the basis that it is a qualifying entity and the Group statement of cash flows included in these financial statements includes the cash flows of the Charity.

d) Income

All income received by the Group is used to finance expenditure incurred in furtherance of its objectives. Income is recognised and included in the statement of financial activities when the Group has entitlement to the income, it is probable that the income will be received, and the amount can be measured reliably. Income received relating to future accounting periods is deferred and recognised as a creditor within the balance sheet.

Existing members' ordinary contributions are recognised in full on the date on which they fall due. Ordinary contributions from members who have joined in the year are recognised when there is adequate certainty of receipt.

The service element of membership fees is recognised when the service is delivered. Outstanding commitments are treated as income in advance at the year end.

Sponsorship income, fees, public sector grants, sundry income and bank deposit interest are recognised on a receivable basis. To the extent that such monies represent monies that have been claimed in advance to meet specific commitments arising, or services to be delivered, after the balance sheet date, they are carried forward as fees and other funds in advance within creditors on the balance sheet (note 9).

Such income is not recognised as incoming resources in the Statement of Financial Activities until the certainty of entitlement has been established. The balances of unspent restricted charitable funds are carried forward as Restricted Income Funds.

As an intrinsic part of the accounting system, funds are accounted for to ensure that funders’ requirements in respect of their receipt, disbursement and reporting are fully satisfied. Those restricted funds and material grants that warrant separate

disclosure in demonstrating different areas of work are shown at note 3(d). A full list of those funds which require formal acknowledgement are shown on page 71-72.

Grant funds received in advance of expenditure being incurred are carried forward within creditors on the balance sheet as funds received in advance [notes 3(d) and 10].

Donated services and facilities income, categorised as voluntary income, represents the Group’s estimate of the value to the charity of donated services and facilities, the value of the donated long lease relating to the BEAM project in Northern Ireland and the cost of seconded staff in support of the charity’s activities.

e) Expenditure

All expenditure is accounted for on an accrual basis.

Allocation of membership resources expended – the cost ascribed to the membership activities represents the estimated cost of staff time involved in managing relationships with members, their engagement with us and support for our communication of best practice.

Cost of generating funds – there is no cost allocated to the cost of generating voluntary income funds as voluntary income represents the receipt of donated services and facilities. The services and facilities are in support of charitable activities, and as such the associated costs of these gifts in kind are recognised within costs of charitable activities. Any costs incurred in generating these gifts in kind are regarded as being immaterial.

Charitable activities expenditure is incurred in connection with the specific objects of the Group and includes as support services the costs incurred in supporting those activities. Indirect costs and support services are allocated on a per head basis and apportioned to charitable activities on the same basis. The costs allocated to governance costs include staff time spent on governance, the related support costs and audit costs.

Input VAT is allocated to the costs on which it is incurred and recoveries of directly attributable tax credited against them. Residual input tax recovered is credited to support services in the Statement of Financial Activities and apportioned over expenditure in proportion to the activity.

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56

NOTES TO THE ACCOUNTS

Included within each relevant category of expenditure, as appropriate to the activity they supported, are the estimated cost of donated services and facilities and the cost of seconded staff.

All costs associated with staff redundancy/termination are recognised in the period in which the individuals affected are made aware of the decision.

f) Tangible Fixed Assets

Tangible fixed assets are stated at their purchase price, together with any incidental costs of acquisition. Individual assets are capitalised only when their cost of acquisition £12,000 or more. The policy was revised so that, with effect from July 2021, laptops are now capitalised when the cost exceeds £1,000 with a useful life of 3 years and above and can be supported by a warranty. Other equipment, fixtures and fittings over £1,000 with extended warranty or historical long-life/economic usefulness will also be capitalised.

Where fixed assets have been donated, they have been included in the financial statements at the lower of their value to the charity or replacement cost at the date of donation.

Provision for depreciation is made so as to write off the cost of tangible fixed assets on a straight-line basis over the expected useful economic life of the assets concerned.

The annual rates used for this purpose are:

Depreciation on assets that are held under an endowment fund is charged against that fund and depreciated over the term of the lease.

g) Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, cash held in current accounts with UK banks and cash on short notice deposit accounts.

h) Provision for costs under Property Leases

Provision is made for costs likely to be incurred on expiration of the property leases where the liability for such expenditure is a requirement of the lease and can be reliably estimated and where the future renewal of the lease is uncertain. These are charged to the Statement of Financial Activities when such costs can be accurately determined and reported as a liability due at the end of the lease term.

Rents payable under operating leases are charged to the statement of financial activities on a straight-line basis over the lease term. Benefits received as a lease incentive are credited to the statement of financial activities, to reduce the lease expense, on a straight-line basis over the lease term.

i) Non-Property Operating Leases

Payments under non-property operating leases are charged to the Statement of Financial Activities as incurred.

j) Pension Contributions

The Group contributes to defined contribution private pension policies for employees and the pension cost charge that is shown in note 4(b) represents the contributions payable to these policies.

k) Financial Instruments

Business in the Community has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method (equating to the present value). Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors and accrued income. Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors and accrued expenditure.

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NOTES TO THE ACCOUNTS

2. INCOME AND EXPENDITURE

c)
The results are stated after charging:
Total 2023
£000
Total 2022
£000
Opening Leases
•Land and Buildings 303
319
Depreciation 58
51
Group Auditors remuneration
•Audit ofparent accounts 31
26
•Audit of subsidiaries 3
3
•Other Services 5
4

3. ANALYSIS OF CONSOLIDATED FINANCIAL ACTIVITIES

a) Analysis of Income by Activity

ANALYSIS OF CONSOLIDATED FINANCIAL
a) Analysis of Income by Activity		 ACTIVITIES
Activities Voluntary
Income
£000
Charitable
Activities
£000		 Total
2023
£000
Total
2022
£000
Membership 82
4,628		 4,710
4,795
Partnerships, Measurement & Best Practice 50
2,562		 2,612
2,373
Campaigningfor Change 488
1,748		 2,236
2,168
Impact, Delivery& the Nations 381
3,752		 4,133
4,049
40thAnniversary 60
193		 253
1,103
Governance – donated services 1
-		 1
-
Total Activities 1,062
12,883		 13,945
14,488
Bank Deposit Interest Receivable -
43		 43
4
Total IncomingResources 1,062
12,926		 13,988
14,492

Services provided by Bain & Company on ‘Equal Parental Leave’ Toolkits, a Case for change and Guidance on how to take action, valued at £550k by the donor, is included under ‘Campaigning for Change’ at £150k. McKinsey Health Institute provided support as research partner on BITC’s ‘Prioritise People’ report, valued at £600k by the donor, is included under ‘Campaigning for Change’ at £84k.

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NOTES TO THE ACCOUNTS

b) Analysis of Expenditure by Activity

b) Analysis of Expenditure by Activity
Activities Voluntary
Income
£000		 Charitable
Activities
£000		 Total
2023
£000		 Total
2022
£000
Membership 82 2,899 2,981 2,672
Partnerships, Measurement & Best Practice 50 3,902 3,952 3,931
Campaigningfor Change 488 2,197 2,685 2,629
Impact, Delivery& the Nations 381 5,236 5,617 5,439
40th Anniversary 60 355 415 753
Total Activities 1,061 14,590 15,651 15,424
Governance 1 186 187 171
Total Resources Expended 1,062 14,776 15,838 15,595

c) Analysis of Total Expenditure

c) Analysis of Total Expenditure
Activities Direct
Staf
Costs		 Support
Costs
£000		 Other
Costs
£000		 Total
2023
£000		 Total
2022
£000
Membership 2,238 505 238 2,981 2,672
Partnerships, Measurement & Best Practice 2,925 666 361 3,952 3,931
Campaigningfor Change 1,634 332 719 2,685 2,629
Impact, Delivery& the Nations 3,474 937 1,207 5,617 5,439
40th Anniversary 91 12 312 415 753
Total Activities 10,362 2,452 2,837 15,651 15,424
Governance - 186 1 187 171
Total Resources Expended 10,362 2,638 2,838 15,838 15,595

Support costs comprise the central costs of senior managers, CEO office, COO office (projects and core), finance, human resources, and IT support and includes salary costs of £2,079K (2022: £2,017K).

Governance Costs comprise management cost of £152K, statutory audit costs of £34K and pro bono services of £1k.

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NOTES TO THE ACCOUNTS

d) Restricted Funds Analysis for the financial year 2022/23

Balance at
30 June
2022
£000
Income
Received
£000
Expenditure
£000
Balance at
30 June
2023
£000
Restricted Funds
Total Movements in Restricted Funds 1,783
5,808
(6,399)
1,192
Included in this total balance:
Project & Purpose Fund Provider Balance at
30 June
2022
Income
Received
Expenditure
Balance at
30 June
2023
£000
£000
£000
£000
Age At Work, Scotland,
Wales & NI		 Age NI 110
262
(280)
92
Northern Ireland Surplus Various 406
1,261
(1,207)
460
Good Food Fund Various Funders, NI -
38
(12)
26
Community Renewal
Fund		 Department for Levelling
Up, Housing& Communities		 51
165
(216)
-
Climate Change Various, NI 48
32
(48)
32
The Connected Project,
NI		 Various Funders 19
-
(15)
4
Lifeskills - NI Barclays -
103
(86)
17
Lifeskills – Scotland &
Wales		 Barclays 47
276
(300)
23
National Business
Response Network		 Various 229
-
(229)
-
NBRN LaptopFunding Brightstar 3
-
(3)
-
Climate Skills Exchange Scottish Enterprise -
92
(92)
-
Strategic Grant WCVA -
22
(20)
2
LeadershipTeams Various 8
828
(822)
14
Taskforces Various -
125
(117)
8
Homelessness
Prevention		 Boothe Centre -
30
(30)
-
StepProject World Jewish Relief 21
58
(79)
-
Place Funding Various Funders 38
423
(390)
71
SIB Funding Salesforce UK Ltd -
180
(91)
89
Strategic Relationship Welsh Government -
49
(49)
-
Blackpool Opportunity
Areas		 Blackpool City Council 4
-
(4)
-
Blackpool Pride of Place Blackpool CityCouncil 38
20
(48)
10
Blackpool Funding Various Funders -
235
(204)
31
Tees Valley Routeways
YEI		 Hartlepool Borough Council -
77
(77)
-
BBO Project VoluntaryAction Leicester -
43
(43)
-
PROCIRC (Circular
Procurement)		 Intereg - North Sea Region
(ERDF)		 -
47
(47)
-

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NOTES TO THE ACCOUNTS

Project & Purpose Fund Provider Balance at
30 June
2022
Income
Received
Expenditure
Balance at
30 June
2023
£000
£000
£000
£000
Just Transition Funding Various Funders -
125
(125)
-
CommunityClimate Fund bpInternational Ltd -
75
(75)
-
Race & Mental Health
Funding		 People’s Postcode Lottery,
PoWCF		 5
-
(5)
-
Inclusion & Wellbeing
Campaign Funding		 Various Funders 15
115
(120)
10
Food PovertyProject Fusion 21 -
10
(10)
-
Skills Exchange, Job
Coaching, Communities & Axa 267
329
(393)
203
Various
Small Business
Programme		 National Westminster Bank 50
95
(97)
48

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NOTES TO THE ACCOUNTS

d) Restricted Funds Analysis for the financial year 2021/22

Balance at
30 June
2021
£000		 Income
Received
£000
Expenditure
£000		 Balance at
30 June
2022
£000
Restricted Funds
Total Movements in Restricted Funds 2,926 7,706
(8,849)		 1,783
Included in this total balance:
Project & Purpose Fund Provider Balance at
30 June
2021		 Income
Received
Expenditure		 Balance at
30 June
2022
£000 £000
£000		 £000
Age At Work, Scotland,
Wales & NI		 Age NI 100 271
(261)		 110
Northern Ireland Surplus Various 229 1,360
(1,183)		 406
Work Inspiration Department of Education for
NI		 21 –
(21)		 –
Community Renewal
Fund		 Department for Levelling
Up, Housing& Communities		 – 165
(114)		 51
National Business
Response Network		 Various 1,902 –
(1,673)		 229
NBRN LaptopFunding Brightstar 20 –
(17)		 3
LeadershipTeams Various 49 997
(1,038)		 8
Taskforces Various – 73
(73)		 –
RFW People’s Postcode Lottery,
PoWCF		 63 –
(63)		 –
StepProject World Jewish Relief 20 39
(38)		 21
Climate Change Various, NI 48 48
(48)		 48
Age Project Aviva Foundation 36 11
(47)		 –
Place Funding Various Funders – 420
(420)		 –
Ignition Project Greater Manchester
Combined Authority		 – 63
(63)		 –
Strategic Relationship Welsh Government – 7
(7)		 –
LifeSkills – Scotland &
Wales		 Barclays 150 155
(258)		 47
LifeSkills – NI Barclays 11 72
(83)		 –
The Connected Project, NI Various Funders 40 –
(21)		 19
Blackpool Opportunity
Areas		 Blackpool City Council 4 26
(26)		 4
Blackpool Pride of Place Blackpool CityCouncil 25 75
(62)		 38
Blackpool Funding Various – 20
(20)		 –
Tees Valley Routeways
YEI		 Hartlepool Borough Council – 45
(45)		 –
BBO Project VoluntaryAction Leicester – 49
(49)		 –
PROCIRC (Circular
Procurement)		 Interreg – North Sea Region
(ERDF)		 – 36
(36)		 –
Race & Mental Health
Funding		 People’s Postcode Lottery,
PoWCF		 26 –
(21)		 5

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NOTES TO THE ACCOUNTS

Project & Purpose Fund Provider Balance at
30 June
2021		 Income
Received
Expenditure		 Balance at
30 June
2022
£000 £000
£000		 £000
Food PovertyProject Fusion 21 15 –
(15)		 –
Skills Exchange & Job
Coaching		 Axa – 336
(69)		 267
Small Business
Programme		 NatWest – 190
(140)		 50
Support for Environment
Programme Manager		 BT Group 25 –
(25)		 –
40thAnniversary Various – 713
(389)		 324
Skills Exchange & Job
Coaching		 Various – 329
(252)		 77

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NOTES TO THE ACCOUNTS

e) Unrestricted Funds Analysis for the financial year 2022/23

General Funds Opening
1 July 2021
£000
2,338		 Net Income
During the
year
(1,239)		 Trf Btw
Funds
During the
year
-		 Closing
30 June
2023
1,099
Total Unrestricted Funds 2,338 (1,239) - 1,099

f) Analysis of net assets between consolidated funds at 30 June 2023

Tangible Fixed Assets Unrestricted
Funds
£000
420		 Restricted
Funds
£000
-		 Endowment
Funds
£000
324		 Total
Funds
£000
744
Net Current assets 679 1,192 - 1,871
Total net assets 1,099 1,192 324 2,615

Unrestricted funds comprise those income funds that are retained by the charity that can be freely spent on any of its charitable purposes. They represent the charity’s reserves and are made up of the fixed assets and investments acquired with such funds.

Restricted funds comprise income funds obtained to undertake the company’s activities, where such funds have been given for specific purposes. The balances carried forward at the end of the year represent the net current assets that comprise the individual balances of the funds received for specific purposes in advance of the related expenditure being incurred.

Analysis of net assets between consolidated funds at 30 June 2022

Tangible Fixed Assets Unrestricted
Funds
£000
419		 Restricted
Funds
£000
-		 Endowment
Funds
£000
344		 Total
Funds
£000
763
Net Current assets 1,919 1,783 - 3,702
Total net assets 2,338 1,783 344 4,465

4. EMPLOYEE NUMBERS

a) Staff Numbers

At 30 June 2023, the Group employed (excluding Directors) 248 salaried persons (2022: 256). These staff were employed in the following activities:

Total as at
30 June 2023		 Total as at
30 June 2022
Direct Charitable Activities 208 221
Central Support Services 31 27
Corporate Communications, Strategy& Management 9 8
Total Number of members of staf 248 256

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NOTES TO THE ACCOUNTS

Throughout the year, the Group employed an average of 258 staff (2022: 251). The full-time equivalent of these staff is 239 (2022: 230).

In addition, the Group enjoyed, throughout the year, the services of the equivalent of 3 (2022: 2) full-time employees seconded by member companies, public sector, organisations and individual volunteer(s). The cost of these secondees and volunteer(s) is included in the financial statements as if they had been employed directly by the Group at an additional annual cost of approximately £116K (2022: £107K). An equivalent amount is recognised in the financial accounts as income from Donations & Legacies.

b) Analysis of Cost of salaries

b) Analysis of Cost of salaries
Total as at Total as at
30 June 2023 30 June 2022
Total Gross Wages and Salaries 10,662 9,929
Employer’s National Insurance Contributions 1,108 1,024
Pension Contributions 671 599
Total Cost of Salaries 12,441 11,552

In addition to the contributions to pension schemes, the Group also provides life cover for employees of four times annual salary, at a cost of £42K (2022: £35K).

In the year to June 2023, the cost of salaries included redundancy and severance payments of £45K (2022: £49K).

c) Number of employees who earned £60,000 or more in income bands (including taxable benefits)


(including taxable benefts)
Year ended
30 June 2023
Year ended
30 June 2022
£160,000 – £169,999 0
1
£120,000 – £129,999 1
0
£110,000 – £119,999 4
4
£100,000 – £109,999 2
1
£90,000 – £99,999 2
1
£80,000 – £89,999 2
1
£70,000 – £79,999 5
9
£60,000 – £69,999 11
10

Paid into defined contribution schemes and in respect of 26 (2022: 26) of the above employees, the total employer’s pension contributions amounted to £152K (2022: £143K).

d) Key Personnel

These are senior staff within the organisation as well as the Nation directors. Senior staff list can be found in the Governance section at the end of the accounts.

Collectively, they received total remuneration including employers NI and employer pension contributions of £1,479K (2022: £1,557K).

The setting of pay including those employees who are Key Personnel is based on benchmarking against similar size and types of organisation. Overall pay increase levels are authorised by the board.

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65

NOTES TO THE ACCOUNTS

5. FIXED ASSETS – TANGIBLE ASSETS

Freehold
Land
£000		 Long
Leasehold
Property
£000
Short
Leasehold
Improvements
£000
Equipment,
Fixtures
and Fittings
£000
Laptops
£000
Total
£000
Cost
At 1 July2022
240		 1,137
-
233
26
1,636
Adjustment to opening
balance
-		 -
-
-
-
-
Additions/(Disposals)
-		 -
-
7
31
38
At 30 June 2023
240		 1,137
-
240
57
1,674
Depreciation
At 1 July2022
-		 651
-
219
2
872
Charge for theperiod
-		 36
-
5
17
58
At 30 June 2023
-		 687
-
224
19
930
Net Book Values
At 30 June 2023
240		 450
-
16
38
744
At 30 June 2022
240		 486
-
14
24
763

Note: The long-leasehold property includes the cost of land and buildings of £372K and the cost of refurbishing the building of £137K.

There are charges over the office premises in Northern Ireland in favour of the International Fund for Ireland and Department for Social Development relating to the development of the BEAM project in Derry.

6. INVESTMENTS

a) Subsidiary Companies

Business in the Community has a wholly-owned subsidiary, BITC Trading & Advisory Ltd a company incorporated in England and Wales (company number 02210750) whose results are consolidated within these accounts. The investment in the subsidiary is £3 and this is included in debtors.

On 31 July 2017 BITC took control of Trading for Good Ltd, Company number 08264671. The company has not traded since the date of acquisition and was dissolved on the 18 October 2022.

On 1 January 2016, BITC became the sole member of the charity Scottish Business in the Community, company number SC080355. There were no transactions in the year in the charity and it is treated as a dormant company.

As at the 30 June 2023, the registered address of all subsidiaries was 137 Shepherdess Walk, London, N1 7RQ.

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NOTES TO THE ACCOUNTS

b) Results of Subsidiary Company in the year to 30 June 2023

Income and Expenditure Accounts

Balance Sheet for Subsidiary Company at 30 June 2023



at 30 June 2023
BITC T&A
£000
BITC T&A
£000
IncomingResources 709
Trade Debtors
130
Management Costs (141)
Other Debtors
12
Results of ordinaryactivities 568
Cash
59
Gift Aid Payable toparent (568)
Amount due toparent
(13)
Amounts due to thirdparties
(188)
Retained Earnings –
Net Reserves
–

7. DEBTORS AND PREPAYMENTS

Consolidated
30 June 2023
£000		 Consolidated
30 June 2022
£000		 BITC
30 June 2023
£000		 BITC
30 June 2022
£000
Trade Debtors 1,367 1,253 1,237 1,243
IntercompanyDebtor - - 13 -
Other Debtors 22 43 22 43
Accrued Income 803 687 791 687
Prepayments 236 143 236 143
Total Debtors 2,428 2,126 2,299 2,116

8. CASH AT BANK AND IN HAND

Consolidated
30 June 2023
£000		 Consolidated
30 June 2022
£000		 BITC
30 June 2023
£000		 BITC
30 June 2022
£000
Current Accounts 1 1 1 1
Interest BearingAccounts 2,551 5,074 2,492 4,969
Total Cash & Cash Equivalents 2,552 5,075 2,493 4,970

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NOTES TO THE ACCOUNTS

9. CREDITORS: AMOUNT FALLING DUE WITHIN ONE YEAR

Consolidated
30 June 2023
£000		 Consolidated
30 June 2022
£000		 BITC
30 June 2023
£000		 BITC
30 June 2022
£000
Trade Creditors 63 165 44 111
Other Creditors 374 509 374 508
IntercompanyCreditor - - - 201
Taxation and Social SecurityCosts 481 376 481 376
Income in Advance 500 319 458 319
Def Inc – Fees and other income in advance
(Note 10)		 1,255 1,612 1,145 1,355
Accrued Expenditure 436 518 419 514
Total Creditors fallingdue within oneyear 3,109 3,499 2,921 3,384

10. ANALYSIS OF MOVEMENT IN FEES AND OTHER INCOME IN ADVANCE

Where income is received that requires BITC to meet specific commitments or services to be delivered after the balance sheet date, they are carried forward as fees and other funds in advance and the income is recognised when those commitments have been delivered

Brought
Forward 1
July 2022
£000		 Released
During Year
£000		 Deferred
During Year
£000		 Carried
Forward
30 June
2023
£000
MembershipServices 652 (652) 743 743
Business Solutions 319 (319) 284 284
Other 385 (371) 104 118
T & A 186 (186) 47 47
Total 1,542 (1,528) 1,178 1,192

11. LEASE COMMITMENTS

The company has financial commitments in respect of operating leases for land and buildings and office equipment which will terminate between one and five years from the Balance Sheet date. The total amount of future minimum lease payments under non-cancellable operating leases are:

June 2023 June 2022
a) £000 £000
(i) Not later than one year 224 362
(ii)
(iii)		 Later than one year and not later than fve years
Later than fve years		 –
–		 252
–
b) Lease payments recognised as an expense 303 319

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NOTES TO THE ACCOUNTS

12. CAPITAL COMMITMENTS

No material capital commitments were contracted for at 30 June 2023 (2022: £nil).

13. TAXATION

As a registered charity Business in the Community is entitled to certain exemptions from corporation tax on profits from investments and any trading activities carried on in furtherance of the Charity’s primary objectives. Subsidiary trading companies pay any taxable profits to the Charity each year as Gift Aid and thus do not incur corporation tax.

14. RELATED PARTY TRANSACTIONS

Details of the income and expenditure position and balance sheet for the subsidiary is shown in note 6 to the accounts. During the year the Charity recognised gift aid receivable from BITC Advisory Services Limited of £568K (2022: £407K). At the year end the amounts owed to/(by) the Charity were as follows:

Subsidiary June 2023
£000		 June 2022
£000
BITC Tradingand Advisory 13 (201)
Represented by:
Gift Aid Payable to Charity 587 407
Gift Aid Payments made on account (241) (169)
Allocated costs recharged to subsidiary 96 58
All Other transactions* (429) (497)
Total Owed to/(by)Charity 13 (201)

*All Other transactions represents receipts received and payments made on behalf of Trading and Advisory Ltd during the year.

All transactions between the charity and the subsidiary are reflected in the disclosure above.

The transactions with companies whose directors are Board members fall outside the disclosure requirements as they do not comprise related party transactions within the definition of the charities SORP. All such transactions including those disclosed have been carried out in the normal course of the charity’s activities.

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NOTES TO THE ACCOUNTS

15. BUSINESS NAMES

The names used by Business in the Community for its principal initiatives are:

The Prince's Business Emergency Resilience Group
(BERG)		 Engaging business to help communities across the UK
to prepare for, respond to and recover from
emergencies
Responsible Business Awards Recognise and promote best practice within all aspects
responsible business
The Prince's Responsible Business Ambassadors Empowering other organisations to deliver on the
Prince’s priorities on responsible business
The Prince's Seeing is Believing programme Providing social insights for business leaders
The National Business Response Network Linking business support to community requirements
The Responsible Business Tracker
The Responsible Business Map Challenge, support and measure companies in their
Responsible Business in Action responsible business.
CR Academy
Job Coaching
Ban the Box
Ready for Work
Business Class
Business Connectors
Employee Volunteering Engage business to build sustainable and inclusive
communities
Talent & Skills
Waste to Wealth
Pride of Place
The Skills Exchange
MakingWork Work
Race at Work
Gender
Age at Work Diversity and inclusion in the workplace
Wellbeingat work
International Tourism Partnership
Youth Career Initiative		 Transferred to Sustainable Hospitality Alliance on the
30th Sept 2021. To encourage sustainable and
responsible practice within the hospitality industry.

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NOTES TO THE ACCOUNTS

Acknowledgements

Our funds are received from many public, private and charitable sources, all of which are essential to our continued engagement and are valued and appreciated by BITC and its campaigns and regions. As the number of our supporters is considerable, we only list below those funds that we received during the year which are required to be disclosed under the terms of their funding agreements. All funds are applied in accordance with the terms of such funding agreements. These listed are not all and not necessarily the largest of the funds received, all of which have contributed to the activities undertaken during the year.

----- Start of picture text -----
Provider Project FY 2022/23
ABP Management UK Action on Climate Change, NI 7,000
Age NI Age @ Work in NI, Scotland, and Wales 248,310
ARC Health Living Centre #RETHINK 47,593
Barclays Bank PLC Delivery of Life Skills in NI 97,686
Barclays Bank PLC Delivery of Life Skills in Wales & Scotland 275,821
Barrow Cadbury Trust Place Taskforce 2,000
Belfast Harbour Commissioners Building Back Responsibly, NI 25,000
Belfast Harbour Commissioners Time to Code 10,000
Blackpool Council Blackpool Pride of Place 50,000
Blackpool Council Shared Prosperity Fund 19,993
Cancer Focus NI Big Shops Challenge 5,000
Danske Bank Business Action on Climate Change, NI 7,000
Danske Bank Good Food Fund 10,000
Department For Levelling UP, Housing &
Community Renewal Fund 215,644
Communities
Department for the Economy NI Business Action on Climate Campaign, NI 32,500
Department of Agriculture, Environment & Rural
Business Action on Climate Campaign, NI 16,000
Affairs NI
Department of Agriculture, Environment & Rural
Environmental Benchmarking Survey 40,539
Affairs NI
Department of Education for NI Work Inspiration 93,000
Department of Education for NI Time To Programmes 68,291
Department of Finance and Personnel NI Digital Assist 28,580
Department of Justice Ban the Box 14,794
Encirc Business Action on Climate Change, NI 6,000
Tackling Food Insecurity & Building Community
Fusion21 Foundation 10,000
Resilience, EM
Hartlepool Borough Council Tees Valley Routeways Project 48,352
Moy Park Ltd Environmental Benchmarking Survey 7,500
NIAVAC Good Food Fund 5,000
NI Water Business Action on Climate Campaign, NI 7,000
Norfolk County Council The 100 Day Challenge 14,661
----- End of picture text -----

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NOTES TO THE ACCOUNTS

----- Start of picture text -----
Provider Project FY 2022/23
Power NI Business Action on Climate Change, NI 7,000
Prince of Wales's Charitable Foundation Skills Exchange 125,000
Sse Airtrcity Energy Supply (NI) Ltd Good Food Fund 5,000
System Operator, NI Business Action on Climate Change, NI 7,000
The Mercers' Company Place Funding, Norwich 27,800
Translink Business Action on Climate Change, NI 7,000
WCVA VW Strategic Grant 22,436
----- End of picture text -----

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GOVERNANCE

Directors

The directors, who are the trustees, are elected by a decision of the Board. Directors are eligible for re-election every three years and are re-appointed to be a trustee by ordinary resolution of the Members. A list of present directors and those who also served during the year is set out at the end of this report.

Governance

The Board of Trustee Directors’ role is to determine the charity’s mission and purpose while guarding its ethos and values and ensuring that the charitable purposes laid out in the constitution are upheld. The Board is responsible for ensuring that the charity complies with all legal and regulatory requirements, and wherever possible, upholds high standards of good governance. The Board ensures the provision of effective fiscal oversight and sound risk management, approves the Business Plan and annual financial statement and budget and ensures that finances are handled in the best interests of the charity.

The Board has detailed terms of reference which are reviewed and approved annually.

The Board has four sub-committees, which reduced to three during the financial year:

The Finance & Risk Committee was responsible for supervising the financial affairs of the charity and the Audit Committee for compliance and policy. During the year, the committees merged, and the new Finance & Audit Committee took responsibility for financial management & reporting, internal control & risk management, external audit, property and data protection.

The Remuneration Committee is responsible for setting the annual pay review for staff – after consideration of external benchmarking within the charity sector and negotiation with BITC’s recognised union – for executive succession planning, and for overall reward and recognition for employees.

The Nominations Committee meets when required and is responsible for managing the selection process for the roles of the BITC Chair and BITC CEO, and it makes recommendations to the BITC Board on the appointment of preferred candidates.

The Executive Team provides day-to-day management of the charity and monitors performance throughout the year.

BITC has Advisory Boards in the Nations of Northern Ireland, Scotland and Wales, and Regional Leadership Boards in the regions of England.

Incoming trustees receive an induction into the work of the charity and meet with the Chairman, Chief Executive, Company Secretary and Finance Director.

The full Board met six times in the year and:

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as Chair of the Finance & Audit Committee, had delegated authority from the Board to sign the Deed of Variation on its behalf;

The Finance & Risk Committee met twice in the year to supervise the financial affairs of the Charity in relation to the plans approved by the Board, to report to the Board any significant variances against these plans and to review the risk to which the Charity was exposed.

in the financial year to continue to supervise the financial affairs of the Charity, to report to the Board any significant variances against these plans, to discuss the recommendation of the executive on the London office and to review the new budget and recommend it to the Board for approval.

The Remuneration Committee met three times in the reporting period, agreed the pay review for FY 22/23, discussed executive salaries and key retention risks and BITC’s wider benefits package.

Work also took place with the members of the Board and the Committees outside of the formal meetings.

The Audit Committee met once in the reporting period, to oversee the relationship with external auditors, and to review the statements on risk and on reserves in the report and accounts.

In early 2023, the responsibilities of the Finance & Risk Committee merged into that of the Audit Committee, and the new Finance & Audit Committee met twice

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The present directors of the company are as follows:

Vice-Presidents:

Dame Julia Cleverdon DCVO CBE

Chairman

Gavin Patterson

Vice Chairman

Dame Alison Rose

Directors:

Jane Ashcroft¹ ² CBE Vice Chair, Associated Retirement Community Operators

Zahra Balrololoumi CBE Chief Executive, Salesforce UK & Ireland (appointed 15 November 2023) Raman Bhatia Chief Executive Officer, OVO Energy Lucinda Charles-Jones² Non-Executive Director, Rank Group plc

Vicky Davies Chief Executive, Danske Bank (appointed 15 November 2023)

Richard Hutton¹ ² Chief Financial Officer, Greggs Jeremy Pocklington CB¹ Permanent Secretary, Department for Energy Security and Net Zero

Keith Weed CBE President, Royal Horticultural Society

Sir Stephen O’Brien CVO Sir Mark Weinberg

Advisors:

Bankers | Barclays Bank PLC 1 Churchill Place London E14 5HP

Solicitors | Bates Wells & Braithwaite 10 Queen Street Place London EC4R 1BE

Auditors | Crowe U.K. LLP St Bride’s House, 10 Salisbury Square, London EC4Y 8EH

Business in the Community’s Senior Staff are as follows:

Chief Executive: Mary Macleod

Creative Director: Gail Greengross LVO Managing Director BITC NI: Kieran Harding Director, Delivery and Impact: Sue Husband OBE Director, Finance: Charlie O’Neill

Director, Advisory Services: Harriet Walker

Company Secretary: Lesley Wolfenden LVO

The following directors have retired, who also served during the year:

Steve Holliday Chairman, Cityfibre (retired 7 December 2022)

Dame Vivian Hunt Chief Innovation Officer, UnitedHealth Group (retired 17 March 2023)

Chris Conway Group Chief Executive, Northern Ireland Transport Holding Company

John M Neill CBE Chairman & Group Chief Executive, Unipart Group (retired 7 December 2022)

The following non-Board members serve on the Finance & Audit Committee:

Victoria Akinboro (née Fakehinde) Director of Finance, Royal Air Force Benevolent Fund

Nicola Bancroft FCMA Non-Executive Director, Rotherham NHS Foundation Trust (retired 25 January 2023)

Nations Directors:

Scotland: Louisa Macdonell

Northern Ireland: Kieran Harding

Wales: Sue Husband OBE

The following senior staff have retired, who also served during the year:

Amanda Mackenzie LVO OBE Chief Executive (retired 31 December 2022)

Paul Buchanan Director, Delivery and Impact (retired 11 August 2023)

Nick Diamond Membership Director (retired 30 September 2023)

Sam Balch Campaigns and Content Director (retired 31 October 2023)

Drake Dubin Chief Operating Officer (retired 31 October 2023)

Noelia de Carvalho Head of Financial Planning & Analysis Finance, MS Amlin

Nigel Hinshelwood Senior Independent Director, Lloyds Banking Group and Bank of Scotland

Joe Greenwell CBE DL Non-Executive Director, Xtrac Ltd (retired 27 June 2023)

Caroline Riddy Group Company Secretary and Corporate Counsel, AXA UK plc

Spencer Sheridan Chief Financial Officer, Sciensus (retired 25 January 2023)

¹ denotes serves on the Finance & Audit Committee

² denotes serves on the Remuneration Committee

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The Seeing is Believing Council:

Leadership Team Chairs:

Taskforce Chairs

Leadership Board Chairs:

Scotland

Northern Ireland

Wales

Registration Details

Business in the Community is registered as a charity in England and Wales (297716) and Scotland (SC046226)

Company limited by guarantee No 1619253.

Registered Office:

137 Shepherdess Walk, London N1 7RQ Telephone 020 7566 8650 Website: www.bitc.org.uk

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