Stakeholder engagement

As a large business operating in more than 50 countries we have a wide range of stakeholders with whom we engage. Taken together this review shows how we engage with these stakeholders in the many different markets in which we operate.

There are, however, some stakeholders with whom we engage on an ongoing basis.

Customers

Our most important stakeholders are our customers. We hold regular surveys and focus groups to hear their views on how we can improve our products and services to better meet their needs.

Consumer Groups

These groups exist in some but not all of our markets. We engage with them in order to understand their views on a any practical improvements we can make to our products and services and on any propositions we want to bring to market. In the UK in particular, we have an ongoing dialogue with consumer groups.

• In 2006, our Consumer Champion team set up a consumer round table to discuss our work with consumer organisations. We used the feedback to make changes to our products and services in the UK.
• Barclaycard UK held a consumer round table to help develop an enhanced consumer credit guidance section for its website.

NGOs

Non-governmental organisations (NGOs) have an important role to play; working with government and business to highlight issues of concern in a range of different areas. We get approached by NGOs about the direct and indirect effects of our business. We engage with NGOs on a wide range of issues and where possible enter into a dialogue. We welcome their feedback but in some instances their concerns may be about the actions of our clients rather than our actions.

Colleagues

We have an ongoing dialogue with our colleagues through networks, union representation and also gain valuable feedback through the employee opinion surveys we conduct. Members of the Executive Committee, including Group Chief Executive John Varley, and other senior executives hold regular Colleague Presentations or Town Halls during which issues of interest, such as our financial results, are discussed with groups of employees.

Governments and political parties

Banks play a vital role in the financial system and offer essential services to business and personal customers. Because of this governments and public bodies have a legitimate interest in regulating and monitoring the banking sector. However, it is important to the health of the financial sector and wider economy that regulation and government influence is both effective and appropriate. To ensure this there must be an ongoing constructive dialogue between the banking industry and political stakeholders as well as regular contact with the regulators themselves. Barclays aims to provide honest and frank input into government policy making and to provide policy makers with evidence to help in the decisions they have to make.

Part of being a responsible corporate citizen is offering expertise and advice to governments on wider social issues. Barclays is keen to assist and in 2007 engaged on issues as varied as reforms to the banking system in the UK, climate change and the Millennium Development Goals.  Our role as a large bank in many developing countries means we also have to consider wider development issues as part of our political engagement.

The Group’s businesses and earnings can be affected by the fiscal or other policies and other actions of various governmental and regulatory authorities in the UK, the European Union, the US, South Africa and elsewhere. Areas where changes could have an impact include:

• the monetary, interest rate and other policies of central banks and regulatory authorities;
• general changes in government or regulatory policy that may significantly influence investor decisions in particular markets in which the Group operates;
• general changes in the regulatory requirements, for example, prudential rules relating to the capital adequacy framework and rules designed to promote financial stability and increase depositor protection;
• changes and rules in competition and pricing environments;
• changes to conduct of business rules and regulations;
• further developments in the financial reporting environment;
• expropriation, nationalisation, confiscation of assets and changes in legislation relating to foreign ownership; and
• other unfavourable political, military or diplomatic developments producing social instability or legal uncertainty which in turn may affect demand for the Group’s products and services.

Recent market instability has led to heightened interest from political stakeholders and has meant that our senior leaders spent considerably more time in 2007 in dialogue with ministers than was previously the case. In the UK, EU and USA particularly we engaged with policy makers on a regular basis to provide them with an update on market developments, input to their reform packages and to provide valuable insight into the impact of policies as they were being developed. We sought to promote policies that would maintain market confidence, economic stability and protect the interests of our customers and shareholders.

We have three Public Policy teams that co-ordinate our work with the governments of the markets in which we operate. The three teams in Group Centre, GRCB and IBIM have a global remit. Our teams provide input into government policy consultations including liaising with politicians, civil servants and government ministers. We also enter into dialogue with international bodies such as the European Union, various United Nations organisations, the World Trade Organisation and the World Bank.   

The Group did not give any money for political purposes in the UK nor did it make any donations to EU political organisations or incur any EU political expenditure during the year. Absa Group Limited, in which the Group acquired a majority stake in 2005, made donations totalling £170,142 in 2007 (2006: £212,729) in accordance with its policy of making political donations to the major South African political parties to support the development of democracy in South Africa. The Group made no other political donations in 2007.

We are members of a number of national and international trade bodies and associations and take our roles in these seriously to provide policy makers with feedback and evidence. Examples of our main trade body membership include:

• The British Bankers’ Association

• The Council of Mortgage Lenders
• Confederation of British Industry
• The Payments Council
• The American Banking Association
• The South African Banking Association

Regulatory compliance risk

Regulatory compliance risk arises from a failure or inability to comply fully with the laws, regulations or codes applicable specifically to the financial services industry. Non-compliance could lead to fines, public reprimands, damage to reputation, enforced suspension of operations or, in extreme cases, withdrawal of authorisations to operate.

We engage with the regulatory authorities in the markets in which we operate. This interaction gives us an opportunity to receive feedback on our own practice and also to comment and consult on the general regulatory environment in the markets in which we operate.

Think tanks

We develop relationships with think tanks where we believe they can add value to the policy development process. During 2007, we sponsored a project led by the Institute of Public Policy Research on personal carbon trading in the UK. The project looks at the practicality of personal carbon trading. We have no set views to date but want to use this valuable research to guide our views.

Investors

We set out details about our engagement with investors in our Annual Report, at our AGM and in ongoing dialogue throughout the year.