Northern Rock's Business

Mission Vision and Values

Company Strategy
Northern Rock is a specialised lender providing residential mortgages, secured c
ommercial lending and personal finance. We obtain funds from both on-shore and o
ffshore personal savings, wholesale money markets, covered bonds and from the se
curitisation of mortgage assets.
Northern Rock's strategy encompasses efficiency, growth and value for both custo
mers and shareholders.
Efficiency is paramount to this business strategy. Cost efficiency is enhanced b
y low cost, effective distribution and enables competitive pricing. Capital effi
ciency is achieved by optimising the use of debt and equity capital.
By growing lending and improving the mix of higher margin products, Northern Roc
k aims to grow earnings and improve returns to shareholders, at the same time as
providing innovative and consumer friendly products to our customers.
Northern Rock Mission Statement
Northern Rock is a specialised lending and savings bank which aims to deliver su
perior value to customers and shareholders through excellent products, efficienc
y and growth.
Corporate Social Responsibility Policy
CSR has emerged as an aspect of management that requires companies to provide sp
ecific focus and public reporting of activities. The outcomes are subject to scr
utiny, assessment and comment by external parties. Northern Rock has embraced CS
R as a function of good management and has a comprehensive policy to cover curre
nt and future topics on the CSR agenda.
Approach
The existence of a framework to capture and report on CSR activities within the
Company allows us to promote CSR in keeping with our business objectives and, in
addition, to allow the review and control of risks associated with poor CSR per
formance. CSR is a visible function of management and we can demonstrate that it
is part of our normal business activities.
Northern Rock is a well-managed company and we already have many CSR elements in
place. Through the work of the CSR Section within Premises and the cross functi
onal CSR Group a framework has been established to promote, capture and report o
ur CSR activities.
The key content headings listed in the policy statement encompass further polici
es and practices already in place or being developed within the Company.
Corporate Social Responsibility Policy
At Northern Rock we will conduct all of our business operations in a fair and ba
lanced manner, respecting and responding to legal, social and ethical issues ari
sing from our commercial activities.
We will demonstrate our commitment to continuous improvement in Corporate Social
Responsibility by acting as good corporate citizens, controlling and minimising
our direct and indirect social and environmental impacts.
This policy extends to relationships with all of our stakeholders, including cus
tomers, shareholders, employees, suppliers, joint venture partners and subsidiar
ies.
To support our aim of being an employer of choice , we will provide our employees w
ith a comfortable, safe and healthy working environment whilst promoting persona
l development, job enrichment and work-life balance.
We expect all of our employees to respect our stakeholders, the wider communitie
s in which we operate and the natural environment.
Through the Northern Rock Foundation, which receives 5% of annual pre-tax profit
s, we will support communities and charitable causes based mainly though not exc
lusively, in the North East and Cumbria .
Policy and procedures in general will include social responsibility and sustaina
bility issues as appropriate. We will identify, monitor, measure, review and rep
ort on our performance and policies in the following areas:
Governance and Accountability
Business Ethics and Human Rights
Workplace
Marketplace
Community
Environment
We believe that the implementation of this policy will contribute to achieving s
uperior value for our customers and shareholders.
Corporate Social Responsibility Statement
In each area of CSR we are aiming to provide:
Executive input and influence in CSR development
Enhanced brand image and reputation
Improved financial performance
Stakeholder engagement
Measurement and transparency
The broad topics covered by each area is identified below although there are a n
umber of cross-overs between sections.
Governance and Accountability
Board and leadership responsibilities
Compliance and Best Practice
Role of Stakeholders
Monitoring and reporting
Business Ethics and Human Rights
Financial and accounting integrity
Privacy and security
Compliance and best practice
Due diligence towards business partners
Socially responsible investment, operations and advertising
Human Rights
Workplace
Working environment and Health and Safety
Employee rights
Conditions and benefits of employment
Employee involvement
Marketplace
Supplier management
Complaint handling
Customer loyalty and retention
Business continuity
Diversity and access
Community
Northern Rock Foundation
Role in the community
Impact of community programmes
Contributions, including money, time etc.
Environment
Compliance with legislation
Managing environmental risk
Employee awareness and involvement
Objectives and targets