Rio Tinto 2010 Annual report This report is available online Visit www.riotinto.com/annualreport2010 2010 Annual Report Basic Materials United Kingdom/Australia globalsector leadership Striving for The way we work Our global code of conduct Overview The way we work de nes how we conduct ourselves as a business. It is underpinned by our values, our approach to sustainable development, and by effective corporate governance. Governance The role of the board Rio Tinto plc and Rio Tinto Limited have a common board of directors who are responsible for the Group’s success and accountable to shareholders for our performance. Consistent with accepted good practice, the board consists of a mix of executives and independent non executives, the majority being independent non executives. This combination balances innovative thinking with business knowledge and experience. The board has established committees responsible for audit, executive remuneration, executive and non executive succession, social and environmental matters and assisting the board to deliver its responsibilities. Each plays a vital role in underpinning how we work. To ensure their relevance and continuing adherence to best practice, the committees annually review their terms of reference. More detailed descriptions of the board and its committees are on pages 118 and 122. This focus on environmental stewardship also delivers nancial bene ts. For example by improving energy ef ciency we not only reduce our environmental impact, we also reduce our operating costs. Social wellbeing is another fundamental aspect of our approach to sustainable development. This involves providing a safe and healthy workplace in which people, treated with fairness and decency at all times, can develop their full potential. And going beyond the workplace, our idea of social wellbeing extends to our neighbours. With them, we seek long term partnerships characterised by the mutual respect that leads to trust. However, good intentions are never enough. So for us strong governance systems are a vital part of putting sustainable development into practice. These systems ensure that we continue to manage our business with openness and accountability. Performance Chairman’s introduction Four values de ne Rio Tinto: accountability, respect, teamwork and integrity. They guide everything we do and are expressed through the principles and standards of conduct as set out in a global code of conduct called The way we work (available on our website at www.riotinto.com/library). The way we work de nes the way we manage the economic, social, political, environmental and governance challenges of our operations. It also frames a uni ed approach to complying with the regulatory obligations of our stock exchange listings in the UK, Australia and the US. Everyone in the Group is required to take training on The way we work. But most important of all, our values help the Group to ful l our commitment to shareholders to maximise total returns whilst also ful lling our commitment to contribute to sustainable development. This is because, as a company with a reputation for acting responsibly, we will be welcome as investors, partners and members of the local community wherever in the world we operate. This will hold true even as expectations and regulations surrounding corporate governance change following the global nancial crisis and our business evolves. We regularly review our practices to make sure they are aligned with changing regulations and that they continue to support the principles and values contained in The way we work. Values Our reputation stems from our four core values, which de ne the essence of who we are and who we will be: accountability, respect, teamwork and integrity. The rst of these values – accountability – is about taking ownership of our performance and decisions, and the impact that they have on the business. We also support the accountability that others have in their own areas of work. We demonstrate respect through our approach to sustainable development, and by recognising our people’s contributions to the business. We care for each other’s health, safety and wellbeing. By working as a team, we can focus our collective efforts on where they deliver the best outcome for the Group. We believe good team members trust in the commitment and capability of others. And nally, we work with integrity, treating all our stakeholders with fairness, honesty and openness. Production, reserves and operations Managing risk Rio Tinto recognises that risk is an integral component of its business, and that it is characterised by both threat and opportunity. The Group fosters a risk aware corporate culture in all decision making. Through skilled application of high quality, integrated risk analysis and management, we enhance opportunities and reduce threats, and so achieve and maintain competitive advantage. The Group’s Risk standard guides the process by providing an overall methodology and structure for the handling of risk within the organisation. The Group seeks to provide the board and senior management with a consistent, Group wide perspective of the key risks. Reports are submitted to the board twice per year and include assessment of the likelihood and impact if risks materialise, along with risk management initiatives. Governance Jan du Plessis, chairman Sustainable development As a company, we naturally meet the needs of customers, but we seek to do this without compromising the ability of future generations to meet their needs. That is what we mean by sustainable development. It is good business as well as good sense. Our continuing nancial success depends on the Group’s ability to gain access to the land, people and capital we need. To do that, we put our economic, social, environmental and technical expertise to work to harness these resources. This process creates prosperity that is shared among shareholders, employees, communities, governments and business partners. But there is more to it than that. Sustainable development also demands rigorous environmental stewardship. If we cannot always prevent harm, we can minimise and remediate any negative environmental effects of the Group’s operations. To ensure this, we have developed high standards that we maintain by implementing a wide range of practical programmes. These apply to issues that include air quality, ecosystems, biodiversity, climate change, the use of energy, land and water, waste disposal and facility closures. p114 p24 p29 Financial statements Governance op Va lu 16 Rio Tinto 2010 Annual report S u stain a ble d ev The way we work es me Related information online at www.riotinto.com www.riotinto.com/library www.riotinto.com/ourapproach Additional information el Related sections within this report Report on corporate governance Risk management Sustainable development review nt www.riotinto.com 17 pp 16-17 The Chairman introduces a diagram showing ‘the way we work’ which demonstrates how Rio Tinto’s governance, values and sustainable development are inter-related and defines how they conduct themselves as a business. Each element is explained to evidence how they manage the economic, social, political, environmental and governance challenges of their operations. The section also explains the business case for sustainable development and identifies key issues. www.blacksunplc.com © Black Sun Plc 2011 53
