Web%20version%20FRC%202012%20Social%20Value%20Report by Andy Nolan

Creating Social Value 2011/12

0151 702 0550 www.frcgroup.co.uk

INTRODUCTION

Welcome

Acknowledgements

Methodology

About FRC Group: What we do, our values, how we work

Our Stakeholders – the people we matter to and who matter to us

Overview of 2011/12

FRC Group – How we do business: Performance in 2011/12

Being Great for People Living in Poverty

Being Great for Unemployed People

2012/13 The Year So Far

Auditor’s Statement

Stakeholder Engagement Analysis

Welcome Welcome to our Social Impact report for 2011/12. This is the thirteenth report FRC Group has published to tell our stakeholders – all the people who matter to FRC Group and to whom FRC Group matters - about what is different as a result of our work, what our impact has been. In this report you can read about the work we have done to improve the lives of people living with long-term unemployment and facing a tough jobs market and how we help low-income households to furnish their homes to a good standard. This report is not a set of financial accounts with photographs of social impact activities and its not a report that is for prospective funders or investors, highlighting our successes or reporting using their terms or metrics. The information you will read has been collected, analysed and reported because it is relevant to telling you, the reader, about what we have done. What you will read is our honest appraisal on how we have done. We focus on the impact that we create and we are tough on ourselves. We are not afraid to be clear about what is the impact of FRC Group and what is actually the impact of other organisations work. In these difficult times of austerity budgets and economic recession, we need to have honest information about the impacts we create so that we can make the right decisions about how we allocate our time and resources. Creating impact is about doing as much as we can, not about laying claim to the impacts created by others.

Shaun Doran Chief Executive Officer

INTRODUCTION

Acknowledgements

Investing for the Future

Our warmest thanks to the people who have played a part in producing this report:

The timescale of our reports matches the dates of our financial year, with this report covering April 2011 to March 2012. It brings together the data we gather throughout the year to understand the impact we have made.

Everyone who makes FRC Group a great place to work: the staff, trainees, Launch Pad work placement participants and volunteers including our Board of Trustees. All the people who collect and analyse the data in the report, particularly Carol Cassidy, Colin Davies, Helen Eversley-Gibson, Tommy Fisher, Mick Hart, Helen Halpin, Nicola Hough, Jackie Middleton, Laura Squires, Shirley Spofforth, Sam Stanford and Collette Williams. Members of the Social Value Committee, a committee of the main FRC Group Board, who provided guidance and oversaw the development of the report – Jeremy Nicholls, Erik Bichard and Chris Watson. Adrian Henriques of JustAssurance who audited the report. Adrian’s statement can be found on pages 45-46. Amy Stokes, Hayley Jones and all at Brava Design who designed the report. Zoe Richards of Zoe Photography who took the photographs.

We collect qualitative and quantitative information from all parts of the organisation and we gather feedback from the people who matter to us – our stakeholders. For a list of the stakeholder consultation that we carried out this year, see page 48. This report has been written concentrating on the most significant impacts that are created. The focus of the report is on the social impacts that FRC Group seeks to create through its social businesses. On pages 12 to 15 there is an overview of FRC Group’s business performance to provide a context to the social impact information presented. The report is published on FRC Group’s website www.frcgroup.co.uk which provides a lot of contextual information about what we do. On the ‘Proving It’ page of the website you can find all of our previous social reports.

INTRODUCTION

Methodology

To show how the performance in this report compares with our targets and priorities for the year, these symbols are used to indicate:

we met or exceeded our target

we made some progress but still aim for more. For numerical targets, this symbol indicates we achieved at least 90% of the target

we missed the mark and we will try to improve our performance

Where there was no specific target we use these symbols to show how performance compares with previous years

Special thanks go to Verity Timmins, FRC Group’s Impact Manager who compiled the data and wrote our Impact Report in July and August 2012. we improved on the previous year’s performance

we achieved a similar level as last year

our performance is at a lower level than last year 5

INTRODUCTION

Investing for the Future FRC Group is a group of social businesses run by Furniture Resource Centre, a registered charity with the mission statement “to run businesses to create profits and opportunities to improve the lives of people in poverty and unemployment”.

The businesses within FRC Group are: Furniture Resource Centre is a one-stop shop selling furniture, appliances, carpets, window coverings, small electrical and starter packs (bedding, crockery etc). Our customers provide furnished accommodation for people who are in need of furniture to make their house into a home. Our customers include Housing Associations, Local Authorities, charities, private care homes and construction companies. Delivering to customers all around the UK, Furniture Resource Centre provides a seamless project management service from interior design and product specification to delivery and installation, and finally the removal and recycling of packaging and any old furniture / appliances which are being replaced. The products supplied through Furniture Resource Centre are brand new, contract standard items which furnish properties of all shapes and sizes from individual tenancies through to communal living environments such as sheltered accommodation units.

Bulky Bob’s Furniture World is the part of Bulky Bob’s which sells great quality ‘pre-loved’ furniture and reconditioned appliances. Bulky Bob’s Furniture World is a high street store in Liverpool and in Oldham it is located at our depot near the town centre. In both Liverpool and Oldham, Bulky Bob’s Furniture World is also taken out ‘on the road’ when we take sales of ‘pre-loved’ furniture out to community venues. We aim to reuse as many of the items we collect though Bulky Bob’s as possible. Everyone is welcome to shop at Bulky Bob’s Furniture World and low-income households are encouraged through a pricing structure which offers them discounts.

INTRODUCTION

About FRC Group: What we do, our values, how we work What we do

Our values

FRC Group’s purpose is to bring about a positive change in the lives of people living in material poverty and unemployment. We want to be Great for People by getting good quality furniture to people who need it and by creating training and work experience opportunities for long-term unemployed people and socially excluded groups.

Our culture is crucial to delivering positive social change and doing business in the way we intend. FRC Group’s values – Bravery, Creativity, Passion and Professionalism – are our beliefs in action. They are visible in the behaviour of our people and how we act as a business. We use our values to attract, recruit and reward staff; and these values are evident in the business decisions made by our Board, Chief Executive and Senior Management Team.

How we do it The way FRC Group does business is also important. We aim to be: Great for the Planet by managing our businesses to reduce environmental harm A Great Place to Work by listening to what our employees say about working at FRC Group and creating an environment in which people can develop their personal and professional skills Great to do Business with by providing first class service to all of our customers, asking for feedback from suppliers and customers and acting on what they tell us

Bulky Bob’s is a collection, reuse and recycling service for domestic bulky household waste. Operating contracts for local authorities, the items we collect from householders are predominantly furniture and appliances that are no longer wanted. The Bulky Bob’s model maximises the volume of items that are reused and recycled, to prevent good quality items and useful materials from going into landfill.

Our stakeholders are all the people who matter to FRC Group and the people that FRC Group matters to.

We also have stakeholder groups that are more aligned with how we do business:

Great for People

Great for the Planet

Our most important stakeholders are those with whom we work to make a positive change in the lives of people living in poverty and unemployment.

•• People living locally to where FRC Group operations are working – general public affected by local environmental impact from our vehicles and building and our operations and from our reuse and recycling activities

INTRODUCTION

•• Driving Change trainees – previously long-term unemployed people on our training programmes •• “Launch Padders” (participants in our Launch Pad programme) – unemployed people with little or no work experience, people with disabilities or ex-offenders seeking meaningful community activity on our Launch Pad programme •• Bulky Bob’s Furniture World customers receiving discounts – people in receipt of benefits, pensioners, students, people referred from other support agencies •• People referred to Bulky Bob’s Furniture World in Liverpool and Oldham for free of charge furniture in crisis situations •• Social support agencies – the organisations that refer people to take part in work placements or shop at Bulky Bob’s or access crisis furniture support

•• The global community and future generations – we are all affected by the global environmental impacts of our business

A Great Place to Work •• Staff – permanent employees of FRC Group •• Trainees – people employed on fixed term training contracts on our Driving Change programme •• Launch Padders - people working with us on a voluntary basis or taking part in an unpaid work placement •• Trustees – our Board members who provide governance as volunteers

INTRODUCTION

Our Stakeholders – the people we matter to and who matter to us Great to do Business with •• Furniture Resource Centre customers – the Housing Associations and other customers who buy furniture and related items from us •• The tenants who receive and use the furniture that is delivered by Furniture Resource Centre •• Bulky Bob’s customers – the local authorities that contract with us to provide collection, reuse and recycling services for furniture and white goods •• The householders who receive the Bulky Bob’s collection service in Liverpool, Oldham and Warrington •• Bulky Bob’s Furniture World customers – all the people who shop in Bulky Bob’s Furniture World •• Our suppliers – the companies who supply us with goods and services •• The other furniture reuse charities that Bulky Bob’s works with by supplying them with reusable items. •• Funders and supporters of FRC Group – the organisations who provide funding, advice, corporate engagement and pro bono support to FRC Group

•• The people who benefit from the work of the furniture reuse charities we work with – Bulky Bob’s has relationships with other furniture and appliance reusers to ensure that as many of the reusable items as possible are made available to people who need them

INTRODUCTION

In FRC Group’s long-term strategy for growth 2011/12 was a year of development and investment. The reality was that the continuing recession made it even harder for FRC Group to implement the business plan for growth. As a result it was a year of consolidation. Furniture Resource Centre increased the capacity within its sales team to target sales growth in the East and West Midlands. We also appointed a new Sales Director following the departure of the previous post holder. Furniture Resource Centre launched its own website www.furnitureresourcecentre.co.uk to market the one-stop furniture service. This year Furniture Resource Centre made 4,494 deliveries of furniture to customers that provide furnished tenancies and communal living settings. This included the final phases of deliveries to the Leeds Independent Living Accommodation Consortium (LiLAC), a 3-year project to provide new purpose built accommodation for people receiving care from social services in Leeds. Furniture Resource Centre supplied bespoke furniture to a range of specialist settings. In total, Bulky Bob’s operations diverted 2,498 tonnes of furniture and appliances from landfill. This was achieved by embedding the improved reuse and recycling procedures introduced in 2010/11. It also includes a new pilot activity working with Halton Council to reuse and recycle the bulky waste collected by the Council’s own collection crews. Evidence of the worsening economic climate is that we were able to send fewer reusable items to our main ‘pre-loved’ furniture outlet Bulky Bob’s Furniture World Liverpool. The quality of the items we collect has noticeably deteriorated since the economic downturn began as people are less likely to replace items until they are broken.

INTRODUCTION

Overview of 2011/12

2011/12 should have been a year that Bulky Bob’s announced a new contract with Oldham Council. Having successfully tendered for a new contract in March 2011, the uncertainty around public sector spending had an effect on this contract. The May 2011 local elections saw Oldham Council change from Liberal Democrat control to Labour and a block on the award of any new contracts was put in place. In 2011/12, Bulky Bob’s Oldham ran on a 12-month extension to the original contract the tender and in March 2012 submitted another tender for a new contract. Consequently it was difficult for Bulky Bob’s Oldham to put any plans in place for future developments. Bulky Bob’s Furniture World added a new string to its bow by starting to sell reconditioned white goods for the first time. For many years Create, a Liverpool social enterprise had rented space in the Bulky Bob’s Furniture World store to sell white goods but this partnership came to an end. In response to customer demand for white goods alongside ‘pre-loved’ furniture, Bulky Bob’s Furniture World developed a source of reconditioned appliances and began to sell them. In this year we sold 491 reconditioned white goods.

2011/12 was also a year in which additional investment was made into FRC Group’s People & Learning Team which delivers training and development for people from long-term unemployment. On pages 38-42 of this report you will read about the recruitment of a Placement Coordinator to deliver the Launch Pad programme and about the additional activities of the People & Learning Team to assist our Driving Change trainees and Launch Padders into employment. A significant venture in 2011/12 was FRC Group’s attempt to make an acquisition of a private sector company. Ultimately we were not successful in buying a private sector company this year but this forms part of our future plans. Our intention is to acquire a business which can be ‘retrofitted’ to become a social business. The primary objective is to acquire a business which can create opportunities for a training programme to be developed. Through this route we will be able to give more training to long-term unemployed people and broaden the skills in which we offer training.

Building on its relationship with HMP Liverpool, Bulky Bob’s worked with HMP Styal to establish a Bulky Bob’s workshop for female offenders. The partnership with Bulky Bob’s has allowed HMP Styal to give women studying for vocational qualifications in Painting & Decorating and Industrial Cleaning to gain more real-life experience by practising their techniques on upholstered and wooden furniture collected by Bulky Bob’s. This year Bulky Bob’s also launched a stand alone website www.bulkybob’s.co.uk.

INTRODUCTION

Year

2001/02

Income

£7,490,451

INTRODUCTION

FRC Group – How we do business: Performance in 2011/12 % income from grants

% income from sales

Unrestricted funds profit/ (loss)*

Permanent Staff

Carbon footprint (CO2 equivalent emissions in tonnes)**

10.0%

90.0%

£431,299

Data not available

2002/03

£5,045,661

4.0%

96.0%

£28,265

Data not available

2003/04

£4,758,731

7.0%

93.0%

(£11,124)

280

2004/05

£4,085,568

7.0%

93.0%

(£149,267)

319

2005/06

£3,449,274

4.6%

95.4%

(£205,024)

307

2006/07

£3,324,402

4.2%

95.8%

(£320,599)

298

2007/08

£3,623,922

5.0%

95.0%

(£159,881)

300

2008/09

£4,358,064

4.4%

95.6%

(£49,604)

322

2009/10

£5,177,396

3.8%

96.2%

£81,927

344

2010/11

£5,030,577

7.7%

92.3%

£73,902 restated as (56,092)

307

2011/12

£4,717,898

2.7%

97.3%

(£246,614)

294

* The unrestricted funds figure is used as it shows the year to year trends in operational performance ** Figures for previous years have been recalculated using the most up to date conversion data relating to that year in accordance with the Defra guidelines

Financial Performance

Carbon Footprint

FRC Group ended 2011/12 making a loss of £246,614 in unrestricted funds. The performance in the previous year (2010/11) had been reported as making a profit but at an operating level 2010/11 had been a loss-making year. The reported profit in unrestricted funds in 2010/11 was as a result of a number of exceptional items in that year which masked the underlying position. In 2010/11 we received exceptional payments of £140,000 relating a charitable donation to Bulky Bob’s Furniture World and refund of 4 years VAT payments made by Revive / Bulky Bob’s Furniture World.

FRC Group runs an environmental management system to control its environmental impacts. The most significant issues defined in the system are carbon footprint, waste and recycling and the impacts of Furniture Resource Centre’s supply chain.

2011/12 was budgeted to be a year in which FRC Group made a small profit based on the substantial investment in the Furniture Resource Centre sales team. Despite the challenges of the economic climate and the impacts of recession and public spending cuts on our housing association and local authority customers, Furniture Resource Centre achieved a small growth in sales. However, this was not in line with the expectation and towards the end of 2011/12, FRC Group underwent a review of costs resulting in a number of efficiencies which removed £250,000 worth of costs from the business. This was achieved through purchasing improvements and a small number of redundancies across the Group, including the position of Deputy Chief Executive. These costs were all incurred within the reporting year to enable FRC Group to start 2012/13 from a strong position. To date in 2012/13 FRC Group is performing in line with budget expectations to be in profit at the conclusion of the financial year. Despite the challenges of the economic climate and the impacts of recession and public spending cuts on our housing association and local authority customers.

This year FRC Group’s carbon footprint was the lowest it has been since 2003/04. This reduction is due to the renewable electricity generated by FRC Group’s solar photovoltaic system. The solar panel system was installed in January 2011 and 2011/12 is the first reporting year in which the system was operational throughout. The overall reduction in carbon emissions as a result of the solar panel system was 9.3 tonnes.

Our carbon footprint is calculated based on the energy use from our buildings (gas and electricity) and the fuels used in our fleet of vehicles. We use the standard carbon conversion factors published by Defra in their Environmental Reporting Guidelines.

“This year FRC Group’s carbon footprint was the lowest it has been since 2003/04.”

INTRODUCTION

Permanent Staff Team This year there were 11 new starters and 10 leavers in the permanent staff team, a similar level of staff turnover as in 2010/11 when 14 people joined the organisation and 12 people left. It is our practice to carry out an exit interview with people who are leaving the business to gather their views on their time at FRC Group. This year only 1 of the leavers had an exit interview. In the cases of the other 9 people who left, 5 were made redundant and 4 left at very short notice. One was dismissed, one was not kept on at the conclusion of the probationary period, one resigned and departed the business very quickly and one terminated their employment whilst on unauthorised leave. This year FRC Group was awarded the Workplace Wellbeing Charter by Liverpool Primary Care Trust. The accreditation looks at 7 areas of workplace wellbeing and ranks a business as either ‘committed’ ‘achieving’ or ‘excelling’ in each area. FRC Group excelled in two areas – smoking and sickness and absence management. In four areas – leadership, alcohol and substance misuse, healthy eating and physical activity- we reached the ‘achievement’ level. The only area we were ranked as ‘committed’ in was mental health and stress. This is an area for more focus for FRC Group in 2012/13.

Health & Safety

Number of leavers in the permanent staff team

FRC Group’s Health & Safety performance is important to all the people who work in the organisation, our customers and suppliers. This year we had 77 accidents. This was an increase on the 63 accidents that happened in 2010/11, which reflects the greater number of people (staff and Launch Padders) in the business. However, the severity of accidents was reduced. In 2010/11, 7 of the 63 accidents were RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations ) reportable (serious accidents which must be reported to the Health & Safety Executive) compared to only 6 of the 73 accidents in 2011/12.

Number of serious accidents (RIDDOR reportable)

7 6 10/11

11/12

number of RIDDOR reportable accidents

Number of new starters in the permanent staff team

Percentage of serious accidents (RIDDOR reportable)

14% 12% 10% 8% 6% 4% 2% 0%

2009/10 2009/10

2010/11 2010/11

2011/12 2011/12

INTRODUCTION

Being Great For People Living in Poverty GREAT FOR PEOPLE LIVING IN POVERTY

GREAT FOR PEOPLE LIVING IN POVERTY

REALITY CHECK Furniture Resource Centre’s activity to sell a one-stop furnishing service to Housing Associations and other customers, is not considered as an area in which FRC Group is the principal instigator of social change. As such, the social value created by the provision of furnished tenancies for social housing tenants, is considered to be ‘owned’ by the housing associations that create these furnished tenancy programmes1. This is an example of how we think carefully about the social value that we claim. In this case we see the housing association as the main instigator of social change.

In 2012/13 and beyond, Furniture Resource Centre intends to stimulate the creation and expansion of furnished tenancies and will report on the social impact created by these new programmes that are instigated as a result of Furniture Resource Centre’s activities.

Bulky Bob’s Furniture World store in Liverpool: Bulky Bob’s Furniture World is the Bulky Bob’s store in central Liverpool. Everyone is welcome to shop at Bulky Bob’s Furniture World, but low-income customers are targeted through the tiered pricing structure in operation. The ‘standard’ prices of ‘pre-loved’ furniture are set at an affordable level plus 10% and 20% discounts are available.

Bulky Bob’s Furniture World 1. Bulky Bobʼs Furniture World prices items to make them affordable to the shoppers we want to attract. While other charities may sell furniture to raise funds for their cause, our purpose is to make furniture available cheaply to people on limited incomes.

Donating furniture packs to people in crisis Bulky Bob’s Furniture World also donates bespoke packages of ‘pre-loved’ furniture to people who are in urgent need and do not have the means to buy items. To reach people in most need, Bulky Bob’s works with support agencies who act as trusted referral partners. This year, we have increased the agencies we work with from 33 to 62. Packages of ‘pre-loved’ furniture are donated and delivered free of charge. Typically, the recipients are people who are moving into an independent tenancy and do not have basic items of furniture. They may be moving from a supported living setting such as a hostel, refuge or NASS (National Asylum Seekers Service) accommodation. Without some basic furniture, these people and families face the prospect

3. A small number of customers come to us through referrals from social support organisations. These customers receive a free delivery as well as 20% discount.

As described in detail in pages 90-94 of FRC Group’s 2009/10 Social Impact Report

To address this immediate need for basic furniture and to offer an alternative to using high-cost credit such as loan sharks or ‘pay-weekly’ furniture stores, Bulky Bob’s donates a package of items suited to the requirements of the individual or family. Referrals are submitted with a list of the items that are required and Bulky Bob’s Furniture World works hard to provide as many of these items as possible. Often, we are restricted by the supply of items coming in through the Bulky Bob’s collection service or by the high demand for particular items.

Bulky Bob’s Furniture World Customers

3500 3000 2500

% of customers receiving 10% discount

2000 1500 1000 500 0

2. The majority of our sales are to people who receive a 10% discount off our standard prices. These are people who are in receipt of benefits, older people and students. These customers self-declare their status.

of living in an empty property. Statutory sources of funding such as Community Care Grants or Social Fund loans are not available to all and an application is no guarantee of money being awarded at the end of a 2-3 month application process.

GREAT FOR PEOPLE LIVING IN POVERTY

Giving people who need it access to furniture was the reason that Furniture Resource Centre was founded in 1988. In 2011/12, FRC Group continued to fulfil this core social objective through its Bulky Bob’s social business. This chapter describes the social value created by Bulky Bob’s through the Bulky Bob’s Furniture World activities: our high street store in Liverpool and the Bulky Bob’s Furniture World outlet in Oldham. Through Bulky Bob’s, FRC Group creates positive social impacts through a combination of selling and donating ‘pre-loved’ furniture. The customers who buy and receive furniture are predominantly from lowincome households.

2009-10

2010-11

2011-12

Crisis

117

232

399

20%

108

132

10%

2317

2175

2021

Standard

610

635

513

Numbers of Customers

% of customers receiving 20% discount

% of customers receiving crisis donations

GREAT FOR PEOPLE LIVING IN POVERTY

Number of sales of ‘pre-loved’ furniture made to Bulky Bob’s Furniture World Customers

Number of ‘pre-loved’ furniture sent to Bulky Bob’s Furniture World to be sold

11/12

4,638 11/12

What our stakeholders say:

Number of people in crisis given free basic furniture items

399

3,065*

This year only 9 furniture recipients completed our survey asking for feedback about the furniture and service they received. This is a very small sample of the people who received furniture. To get feedback from the people who receive furniture is very challenging. Their lives are often chaotic and they face many issues so providing feedback to Bulky Bob’s Furniture World is not a high priority for them. We rely on the referral agency to ask for feedback as we do not want to do this at the point of arranging or delivering the furniture package as this would certainly influence the answers given.

GREAT FOR PEOPLE LIVING IN POVERTY

Bulky Bob’s Furniture World in Liverpool at a glance

Crisis customer feedback

10/11

232

10 9

10/11

6,625 10/11

3,125

Number of agencies referring people in crisis situations.

*Exclude white good sales

6 5 4

10 33 63 09/10

Value to crisis customers of items donated

£18,395 21

11/12

2 1 0 What do you think of the furniture?

What sort of service did you receive from the shop staff?

What sort of service did you receive from the delivery drivers?

Excellent Good OK Poor

£26,346 10/11

10/11

11/12 22

GREAT FOR PEOPLE LIVING IN POVERTY

“it made a difference. I had a good nights sleep. I had something to sit on. Yeah, it made a difference”. “Due to leaving NASS Accommodation had absolutely nothing really helped my wife and children settle into the property without the further stress of having no furniture. Would still be trying to find extra money to make my children comfortable but now they have beds and can concentrate on other things” “By just obtaining the mattresses it has made a huge difference as would not have been able to afford anything after leaving NASS supported accommodation”

We also asked for feedback from the referral agencies about the service their clients receive and about the difference Bulky Bob’s Furniture World makes to the clients and to them as workers. The most common benefits the workers mentioned were •• Improved basic living conditions such as having a bed to sleep on and somewhere to sit •• The speed of response from Bulky Bob’s which prevented people from having to stay in temporary accommodation

“A hell of a difference! Procedure very easy, service excellent”

•• That the service reduces stress on the family / individual

“It made a difference. I had a good nights sleep. I had something to sit on. Yeah, it made a difference”

What do you think of the furniture that your clients receive?

It has made a big impact to the woman we have made applications for. It helps them feel that there are agencies out there that are helping with out making any judgements. PD, Liverpool Domestic Abuse Service

“Stopped me sitting on the floor- turned empty living room into somewhere I could call home” “It has helped me settle into my new home”

We surveyed the referral agencies who make referrals and 19 people responded. 18 answered a question about the furniture that is received and 100% said they thought the furniture was excellent or good.

•• How the service makes the client feel – that another organisation is giving them support and that they can have pride in their home

“its better than sleeping on the floor” “A lot of difference, I was sitting in a garden chair, so thank you”

It has been extremely positive. The fundamental need to have a bed to sleep in and somewhere to sit is the difference between an empty property and somewhere that is starting to feel like home. LW, Riverside ECHG

It does reduce stress levels when people are moving into their own accommodation also gives them piece of mind that essentially their children will have somewhere to sleep. It also helps people settle. MH, Liverpool City Council

Creating Social Value through Bulky Bob’s Furniture World In the final quarter of 2011/12, we began to see an increase in the number of customers shopping at Bulky Bob’s Furniture World who were not accessing any of the discounts available to people receiving benefits or referred from support agencies. We welcome shoppers from all walks of life to come and buy ‘pre-loved’ furniture but in the past we have not considered the ‘standard price’ customers to be a significant part of the social value that is created by Bulky Bob’s Furniture World.

GREAT FOR PEOPLE LIVING IN POVERTY

What difference has it made to receive furniture? Eight of the respondents described in their own words the difference having furniture made…

Against the background of rising costs of living and stagnating wages, it is possible that the increased number of ‘standard’ customers could reflect a new social need that Bulky Bob’s Furniture World is serving. These people may be working but earning low wages and struggling to make ends meet. If this trend continues in 2012/13, this is an area of potential social impact that FRC Group will examine further.

Excellent Good OK Poor

GREAT FOR PEOPLE LIVING IN POVERTY

Bulky Bob’s Oldham does not have a separate Bulky Bob’s Furniture World site. Instead, ‘pre-loved’ furniture is sold and donated from the warehouse at the main Bulky Bob’s Oldham site. Bulky Bob’s Oldham is a smaller operation than Bulky Bob’s Liverpool and does not generate such a large quantity of reusable ‘pre-loved’ furniture. Additionally, the Bulky Bob’s Oldham depot is located within walking distance from Oldham town centre and is more widely accessible. 2011/12 was a challenging year for Bulky Bob’s Oldham because a fire caused damage to the warehouse in April. Operations were affected until June when the warehouse repairs were complete. During this time, Bulky Bob’s was not able to store any ‘pre-loved’ furniture or to have members of the public come to the warehouse to buy items or arrange crisis donations. The retail sales opened up to the public in September and the crisis donations of furniture began in June

Number of items of ‘pre-loved’ furniture available to shoppers and crisis customers

11/12

1,226

408 items were sold to 55 low-income households, 387 of these were between September and March.

Number of referral agencies Bulky Bob’s Oldham worked with.

18 11/12

An aim for 2011/12 had been to standardise how Bulky Bob’s Oldham and Bulky Bob’s Furniture World in Liverpool sell and donate furniture to low-income families. In the past, Bulky Bob’s Oldham had run a referrals system through which people in need to could access furniture for free but would pay a £5 delivery charge per item. The break in operations caused by the fire damage created an opportunity to bring in a change of system and to widen the range of agencies in Oldham who could make referrals. In October we launched Bulky Bob’s Furniture World Oldham with a tiered pricing structure and crisis referral system to match Bulky Bob’s Furniture World Liverpool.

GREAT FOR PEOPLE LIVING IN POVERTY

Bulky Bob’s Furniture World in Oldham

We carried out a short online survey using SurveyMonkey and 8 of the referral partners responded. 86% said the furniture their clients received was either excellent or good.

What do you think of the furniture that your clients receive?

Number of furniture donated to 90 people or families in urgent crisis need.

232

Excellent Good OK Poor

GREAT FOR PEOPLE LIVING IN POVERTY

Great For Unemployed People Priorities for 2012/13 80% of customers to be from low-income households

500 people and families in crisis to receive furniture packs

To review FRC Group’s existing methods for getting furniture to people in lowincome-households.

To review FRC Group’s potential to be an influencer and instigator in the creation of more furnished tenancies in the social housing sector. To consider ways in which FRC Group can develop other services to get furniture to people in low-income households.

GREAT FOR UNEMPLOYED PEOPLE

3,700 customer sales at Bulky Bob’s Furniture World outlets

To set up models to forecast the social value that will be created through this work in 2013/14.

One of the ways FRC Group changes the lives of people living in poverty and unemployment is by creating opportunities for long-term unemployed people to gain skills, experience and employment within our business activities. This chapter looks at the various ways we have given opportunities to unemployed people and what the outcomes have been.

REALITY CHECK Since 2009, we have reported about our activities working with prisons to establish training workshops in which offenders can gain skills. Whilst the work with two prisons – HMP Liverpool and HMP Styal – continues and FRC Group may also engage with other prisons in the future, this area of work is not considered to be one in which FRC Group is creating sufficient social impact for it to be included within this report. FRC Group’s part in the prisons partnerships is to provide furniture items to be refurbished. These workshops help Bulky Bob’s to increase the number of furniture items that are available for reuse but FRC Group does not play a role in working with the offenders to provide any training or support. 2011-12 has seen radical change in government policy and funding around supporting unemployed people back into work. FRC Group is committed to delivering training and support for long-term unemployed people and has always been successful in attracting funding aligned to the service we deliver. A feature of this year has been the radical change in policy and the funding available. FRC Group’s response to the changing national picture has been to commit to deliver the Driving Change programme entirely within our own resources if necessary but to seek sources of funding which complement the work we are doing. In recent years, FRC Group has run other salaried training programmes in addition to Driving Change. These have been in warehousing, retail and administration. In light of the changes to training funding, FRC Group has not continued

The previous government’s Future Jobs Fund which had funded large numbers of salaried training positions came to an end and was replaced by the Work Programme. The ethos of the present government’s Work Programme is to get unemployed people into work as soon as possible rather than providing training. Work Programme has a ‘payment by results’ funding model and private sector ‘prime contractors’ invest in the programme based on expected payments from government when people enter any employment. FRC Group’s Driving Change programme works with people over an intensive 12-month period to train them for future sustained employment within the logistics industry. As such, Driving Change does not currently fit with the mainstream ‘welfare to work’ provision so is not receiving funding from this programme. The level of external funding in Driving Change in 2011/12 was the lowest during the past five years. In fact the funding in 2011/2012 represents only 10% of the total funding received for training between 2007/08 and 2011/12. The introduction of Apprenticeships as the main route to training for unemployed and employed people is another shift in government policy. The intake of Driving Change trainees recruited during 2011/12 are all enrolled on Apprenticeship programmes in Driving Goods Vehicles or Warehousing and Storage. This approach to training will deliver the industry specific qualifications that Driving Change has delivered previously and will also give trainees a qualification equivalent to NVQ Level 2. Attached to the delivery of Apprenticeships, FRC Group has secured a small amount of funding per trainee and in Liverpool 7 trainee places are supported by the Merseyside Apprenticeship Programme a funded Apprenticeship programme managed by Liverpool City Council, Sefton MBC and Knowsley MBC with support from Connexions, Liverpool City Employment Strategy and European Social Fund.

Driving Change Salaried fixed term training contract Real on the job training working as part of the Bulky Bob’s team in Liverpool, Warrington or Oldham Transferable skills: First Aid, health and safety, manual handling, environmental awareness, equal opportunities, job search skills. Industry specific training: - For Drivers: LGV Class II theory test, practical test, hazard perception test, tachograph training and drivers certificate of professional competence. Plus for 2011/12 intake, Apprenticeship Level 2 qualification in Driving Goods Vehicles - For Loaders: Car theory test, practical test. Plus for 2011/12 intake, Apprenticeship Level 2 qualification in Warehousing and Storage

GREAT FOR UNEMPLOYED PEOPLE

FRC Group runs two different programmes “Driving Change” and “Launch Pad”. Both programmes work with long-term unemployed people to improve their skills, experience and employability. The two programmes are very different in their approach and this chapter will describe the programmes and the outcomes in detail.

to deliver these additional programmes and is focusing on the Driving Change programme.

- For all: Choice of specialist training – Forklift Truck Licence Counterbalance and Reach, HIAB (loader crane) or ADR (transporting hazardous goods)

Driving Change has been delivered by FRC Group for over fifteen years and during that time has worked with different groups of long-term unemployed people and in different economic circumstances. Each year there are differences between the cohorts of trainees, the exact way the programme is run and the jobs market in which our trainees complete it. Last year we developed an indicator to try and smooth over some of these fluctuations and give a sense of how our programme is performing in its aim of making people from long-term unemployment more successful in the jobs market. We calculate how our trainees have fared in comparison with people of a similar age and length of unemployment. In 2011/12 we believe this calculation shows that The group of trainees in Liverpool who completed Driving Change were 7 times more likely to find employment after completing the Driving Change programme than they were when they joined the

programme

“The group of trainees in Liverpool who completed Driving Change were 7 times more likely to find employment after completing the Driving Change programme than they were when they joined the programme.”

Comparing 2011/12 with performance in recent years is complicated by some structural differences in how the programmes ran this year. Figures from previous years include the full range of training programmes FRC Group has run in retail, administration and warehousing. The end of these programmes due to the termination of the Future Jobs Fund accounts for the substantial drop in the numbers of trainees. Timing issues around the recruitment of Driving Change trainees in 2011/12 have also created some unusual circumstances. In Oldham, Bulky Bob’s’ contract with OMBC was extended and then retendered. As a result, FRC Group was unable to offer 12-month training contracts to trainees and offered 6-month contracts instead. The cohort of trainees recruited in November 2010 had completed their qualifications prior to the beginning of this reporting year. Consequently a much smaller number of qualifications overall were delivered and the number per trainee is reduced by more than 50%. At the end of the 6-month training contract some of these trainees were recruited on temporary contracts to work for Bulky Bob’s until the new contract was in place and training funding secured.

GREAT FOR UNEMPLOYED PEOPLE

Driving Change 2011/12

In Liverpool there was a short time after the conclusion of one Driving Change programme and the recruitment of the next cohort through the Apprenticeship Programme. In this situation, as has happened before, FRC Group recruited some of the trainees as temporary staff. Accounted for within the figures below are 5 Oldham trainees and 3 Liverpool trainees who found work as temporary staff with Bulky Bob’s.

Average number of qualifications

Number of people who took part in the training programmes

gained per trainee

4.2

Number of qualifications gained

10/11

11/12

10/11

Number of trainees who completed the programme

Number of training programmes across FRC group

9 11 2 09/10

10/11

2.0 09/10

09/10

Number of training positions available in 2011/2012

76%

83%

81%

11/12

09/10

10/11

11/12

Percentage of completers who went into jobs, further education or training at the end of the programme

Overall percentage of who went into jobs, further education or training at the end of the programme

Number of trainees who left this year

77%

65%

Number of people who went into a job

11 10 of the 11 people who got jobs had completed their training programme 91% of those who went into jobs had completed the programme

Driving Change is all about helping people from long-term unemployment to gain skills and qualifications that will help them to go into work. In the context of the credit crunch and economic recession, Driving Change ‘completers’ have found it increasingly difficult to find work in recent years. This year, FRC Group took the decision to invest in more resource in our People & Learning Team by creating a dedicated position to coordinate the Launch Pad placement programme. This new post and the reduced number of trainees allowed the existing resource to focus more time on engaging with employers. The team has been working to raise awareness of the training FRC Group offers and to find out about vacancies for which our trainees can apply. The aim of employer engagement is to build relationships with local employers and this first year has laid solid foundations on which to build. One of the five Driving Change Liverpool trainees who went into work at the end of the programme found work with an employer that FRC Group has worked with. After a trainee from a previous year found work with Staffords Ltd, our People & Learning Team worked hard to build relationships there and has supported three more trainees to find employment with the company, including one from this year’s cohort.

GREAT FOR UNEMPLOYED PEOPLE

Employer Engagement

An early success in this new work was when we secured an interview with Bibby Financial Services for a trainee from our Administration training programme. Sam Adams had completed a 6-month programme at FRC Group and was looking for permanent work. Through the work of the People & Learning Team, FRC Group managed to have Sam’s CV included in a recruitment process that was being handled for Bibby by an outside recruitment consultancy. Sam was selected for interview but was not successful in securing the entry level administration position. He performed so well in the interview that Sam was in fact offered a role at a higher level.

A Personal view

About their financial situation

Statistics give a sense of overall performance, but what about the individual’s experiences? As well as gathering performance data for Driving Change, FRC Group collects information about how the participants feel. During the training programme, all trainees have a one-to-one review with the training programme coordinator every 6-weeks to discuss their progress and any issues or queries that may arise. They also have a leaving review to round off their time on the programme.

“I have bought things for my baby and thrown a party for my niece”

About the Driving Change training programme “I would recommend the training programme to others as it is really good” “This has been a great opportunity for me to get back into work”

“It has been great to have some spare money to go out with the children, socialise with family and friends” After Driving Change We try to keep in touch with past trainees for 18-months to find out how they are getting on. In past years we have sent out paper surveys to our past trainees and offered a prize draw as an incentive to take part. This year we have started trying to use social media to keep in contact with our past trainees. We have found that our past trainees often change their address and telephone number so social media could be a more consistent way to be in contact. To this end we have established a Facebook presence for FRC Group Training and tried to contact as many past trainees as possible.

“I will miss this so much as this has been the best” “I have received help when I have needed it due to my dyslexia” And only one negative comment about the work that trainees carry out

This work is in the very early stages and we are learning how best to use Facebook. It has been a way to gain information about whether past trainees are in employment and we would like to improve how we use it to gather feedback proactively.

All of our trainees have their own personal story. Chris, a trainee in Liverpool, has radically changed his future as a result of the energy and efforts he has put in during the Driving Change programme. Chris was out of work for 3 years before coming on the Driving Change programme. He had left school with no qualifications and had struggled with reading and writing. As a Driving Change trainee, Chris threw himself in to the programme. He proved to be a very determined character who wanted to make the most of what was on offer to him. Chris had an excellent attendance record and gained every qualification that was on offer to him during the programme including gaining his Large Goods Vehicle Class 2 Licence. Chris was the only trainee in his group of 4 Driver trainees who passed the LGV Class 2 and FRC Group was able to offer additional training to Chris. He went on to gain the LGV Class 1 Licence enabling him to drive vehicles weighing between 18 and 44 tonnes.

Steven had been unemployed for 4 years before getting a place on Driving Change. He had had to leave his last job to take on caring responsibilities for a close family member and despite some very challenging circumstances in his personal life, Steven was the first trainee in his group to gain all of his qualifications. Steven was on the Driver Loader programme and gained a car licence as well as a fork lift truck licence. For Steven, a noticeable change was that his confidence soared and he was a respected member of the Bulky Bob’s team.

GREAT FOR UNEMPLOYED PEOPLE

Driving Change Trainees have said this about their experiences

“I’m in paid work so I’m contributing at home”

“Anything is possible if you want to do it” Driving Change Trainee, Bulky Bob’s Oldham

“I found it hard to motivate myself to get the jobs done in difficult weather” About what they have learned “I have more confidence now than when I first started” “I have got more confidence and feel settled” “I have learned to deal with my dyslexia in a positive way” “ I am stronger than I thought and more confident” “I found reading and writing and map reading was a challenge because my English is not good..and also arriving to work on time” 37

Launch Pad

This year saw a significant investment of resource into FRC Group’s work with long-term unemployed people. FRC Group’s Board took the decision to invest in this social impact activity despite the financial performance of the commercial businesses and the lack of any external funding. In 2011/12 we appointed a coordinator for our work placement programme and put into place the structured approach described in last year’s Impact Report. Having offered voluntary work placements since 2006/07 on a small scale, FRC Group has been developing a more structured approach to delivering social value through this work. With the appointment of a full time Placement Coordinator in May 2011, Launch Pad has had a level of resource to greatly improve the level of support given to participants and to proactively recruit more people to take part in a wider range of placement opportunities.

Launch Pad Voluntary work placements Placements offer people the opportunity to gain skills, confidence and experience to build towards finding employment or can be an opportunity for people who are not seeking employment to spend their time in a meaningful way and a mainstream environment Flexible participation – placements can be short or longer term depending on individual circumstances. The average duration in 2011/12 was 23 working days. Defined placement opportunities in specific tasks: warehouse, recycling, retail, administration We identify tasks using criteria that we believe ensure they provide participants with meaningful experience and skills but do not use unpaid labour to carry out core tasks that are essential to the running of FRC Group.

Launch Padders

Placements were offered in 8 areas of FRC Group (5 in 2010/11) 10,368 hours of experience gained (3,904 in 2010/11 and 7,000 in 2009/10)

54 51 74 10/11

10/11

11/12

Launch Pad Impact This year we have more data than ever before to understand the impact of Launch Pad. With the recruitment of a Placement Coordinator, we have the resource in place to collect information from participants about their objectives and their achievements. During this year a system of regular reviews was introduced for Launch Padders. Our Launch Padders have an intensive induction which includes a review of their goals for the programme. Whilst on programme, they have regular one-to-one sessions with the Placement Coordinator to review their progress and when they leave the programme we carry out an exit interview. These systems were introduced and refined this year and will start to produce more detailed and comparable information in future years.

This was a new system introduced during the year. The 9 people with follow up sessions were those who started after the introduction of the system and stayed for four weeks or more. In 2012/13 this will become embedded in how the Launch Pad programme is run.

Why take part in Launch Pad? (Sample of 26 people)

100% of Launch Padders said they were working towards employment 63% said their aim was to find employment

What difference does Launch Pad make?

GREAT FOR UNEMPLOYED PEOPLE

Offering flexible work experience placements to long-term unemployed people has been part of FRC Group’s work since 2006 and has grown from test activity with a small number of people to a formalised programme. What had previously been FRC Group’s Placement Programme has this year become Launch Pad.

In this first year of having the dedicated resource it has been possible to create some increase in the number of people who have taken part (our launch padders) and we expect to see participation increase significantly in 2012/13. Our Placement Coordinator was not in post until mid-May and has built up the promotion of Launch Pad opportunities over the year. Our experience in the first six months of the year was that it was difficult to recruit participants because of the launch of the Government’s Work Programme. This radical new programme replaced many existing welfare to work programmes and during the first part of the year many existing contacts and organisations were no longer working in the same way. This problem was experienced across the charitable and voluntary sector as new contracts came into place and existing services wound up. In the latter part of the year it became easier to make our opportunities available to people as our Coordinator developed new networks to promote the Launch Pad programme.

(Sample of 9 people)

Launch Padders chose their own goals. The average personal improvement against these goals was 30%

Only a sample of the participants had regular reviews which captured the social impact data. This is because the systems were introduced part way through the year and the capture of information relies on a series of reviews to set a baseline for that individual and then track progress against it. During the year we set baselines with 26 people but of these only 9 had the follow up sessions to track progress. 40

GREAT FOR UNEMPLOYED PEOPLE

Launch Pad and Employer Engagement

Danny was referred to FRC Group from the ‘Anything But Ordinary Project’ which works with young people with learning disabilities in June 2011. Daryl started his Launch Pad programme working on recycling activities and enjoyed this so much that he increased the number of days he attended and spent time in both the Bulky Bob’s recycling warehouse and in Bulky Bob’s Furniture World. We worked with the ‘Anything But Ordinary’ project to identify some potential funding through Remploy which allowed ‘Anything But Ordinary’ to employ a Peer Mentor. Daryl was successful in applying and interviewing for the job and now works giving support to other young people with learning disabilities, particularly around their aspirations for employment.

The majority of Launch Padders are on the programme to gain experience and skills that will improve their ability to find work. The People & Learning Team’s efforts in Employer Engagement include promoting our Launch Padders as well as Driving Change trainees. Many Launch Padders were supported in their search for work with interview and application preparation and signposting to available vacancies. A highlight of the year was that two Launch Padders were successful in their application for a place on the Driving Change training programme in Liverpool. These two were recruited as part of the cohort staring in January 2012. Their dedication on the Launch Pad programme gave a great impression and FRC Group was very pleased to be able to offer progression on to the salaried training programme.

GREAT FOR UNEMPLOYED PEOPLE

Launch Padder Stories

Jenny was referred to FRC Group through Business in the Community who were offering her support in order to regain some independence and employment following a period in prison. She was on Launch Pad for a short period of time but she made a big impression, receiving a values award in recognition of the passion she showed. Jenny was extremely motivated to turn her life around, work really hard in the Bulky Bob’s recycling warehouse and threw herself into searching for a job. This paid off as she was offered a paid position for 6 weeks with Create and went on to gain permanent employment in warehousing with B&M in Liverpool.

Priorities for 2012/13

75% of Driving Change programme ‘completers’ to go into employment, further training or education 80 people to participate in the Launch Pad programme

To engage with 25 employers

To set up models to forecast the social value that will be created through Driving Change and Launch Pad in 2013/14.

GREAT FOR UNEMPLOYED PEOPLE

26 Driving Change training positions to be available across FRC Group

2012/13

Auditor’s Assurance Statement

The Year So Far

FRC Group, 2012

The first quarter of the year at FRC Group has been one of hard work by everyone in the organisation. As a result of all of our efforts, FRC Group has achieved its commercial and social impact targets for the first quarter.

Headlines

Scope and objectives

80% of customers at Bulky Bob’s Furniture World Liverpool were low-income households

Bulky Bob’s has won a new contract with Oldham MBC to deliver the Bulky Bob’s service for 4 years. Bulky Bob’s has also launched a commercial collection service in the Merseyside area. Building on the reputation Bulky Bob’s has and the experience of doing commercial collection work for many years, we have launched the service formally.

Over £8,500 worth of ‘pre-loved;’ furniture has been donated to families and individuals in crisis need in Liverpool and Oldham

FRC Group commissioned justassurance to undertake independent assurance of its 2011/12 Social Report (‘the Report’). justassurance was paid £5,000 for this work. justassurance has no other relationships with FRC Group that might compromise its independence.

Furniture Resource Centre has met its financial performance targets for the year despite having a below strength sales team in the first quarter. We are currently recruiting for a new senior sales person and developing new services within FRC which we hope will stimulate the growth of furnished tenancies in the social housing sector.

Basis of our opinion 3

50 new “Launch Padders” have started on the Launch Pad programme

The assurance process was conducted in accordance with AA1000AS (2008). We were engaged to provide Type 2 moderate assurance, covering:

60% of the “Launch Padders” who left in this period had achieved the objective they stated as their primary goal for the programme

• evaluation of adherence to the AA1000APS (2008) principles of inclusivity, materiality and responsiveness (the Principles)

15 Driving Change trainees are on programme

• the reliability of key performance claims. We used the Global Reporting Initiative (GRI) Quality of Information Principles as Criteria for evaluating performance information.

Responsibilities of the directors of FRC Group and of justassurance The directors of FRC Group have sole responsibility for the preparation of the Report. Our statement represents our independent opinion and is intended to inform all FRC Group’s stakeholders including management. We adopt a balanced approach towards all FRC Group stakeholders. We were not involved in the preparation of any part of the Report. We have no other contract with FRC Group and this is the ninth year that we have provided assurance.

Our work was designed to gather evidence with the objective of providing assurance as defined in AA1000AS (2008). To prepare this statement, we reviewed the scope of the Report, visited the Atlantic Way site in Liverpool, assessed areas of risk, interviewed management and scrutinised underlying data and documents, checked claims within the Report, considered the efficacy of the management systems and reviewed the consistency of the Report with supporting information. We provided some feedback to FRC Group on aspects of drafts of the Report and where necessary, changes were made. We are satisfied that we have been allowed unhindered access to the financial accounts, documentation and reports covering FRC Group’s activities and stakeholder engagements and to its managers and staff.

Findings & Opinion The Report’s core focus is on areas where FRC Group believes it can ‘create social value’, particularly trainees, placements and those in housing-related crisis. FRC Group believes these are the areas in which it is making a difference that other organisations could not have made. On the basis of the work we have done and in relation to the scope of the Report, we believe the Report clearly represents FRC Group’s stakeholder relationships, impacts on its stakeholders and responses to their concerns.

2012/2013

At a Group level, we are hard at work in developing a new social enterprise concept for a social business which could form a third trading company within FRC Group. In keeping with our mission this is an idea to develop a social business that helps low-income households to furnish their homes.

The work was performed by Adrian Henriques.5

‘FRC Group’ here refers to Furniture Resources Ltd.

‘justassurance’ here refers to Just Assurance Network Ltd, trading as justassurance. Two Tomorrows Group Limited provides assurance services to justassurance. Two Tomorrows is a licensed AA1000AS assurance provider and oversees justassurance’s assurance work using AA1000AS (2008).

There are two levels of assurance: High - where sufficient evidence has been obtained to support a statement that the risk of our conclusion being in error is ‘very low but not zero’; Moderate where sufficient evidence has been obtained to support a statement that the risk of our conclusion being in error is reduced, but not reduced to ‘very low’.

Further information about competencies can be found at www.twotomorrows.com

Auditor’s Assurance Statement FRC Group, 2012

Observations Without affecting our assurance opinion we also provide the following observations. Inclusivity concerns the participation of stakeholders in developing and achieving an accountable and strategic response to sustainability. FRC Group has identified and consulted with those stakeholders directly relating to its core focus. It is welcome to see social media employed as part of this engagement. Given the prominence that trainees have in relation to FRC Group’s core mission, an understanding of the effect of training on trainees’ families, would be welcome. In other areas the level of stakeholder engagement, especially those relevant to normal business activities, remains low.

The Report would benefit from an explicit statement of the process by which issues are deemed material and therefore within the scope of the report. An important challenge will be to articulate clearly the mapping of FRC Group responsibility across the areas beyond its core focus but within its mainstream businesses, including its value chain. We recommend that the Report covers at least those issues for which FRC Group accepts a significant responsibility. This year’s Report deals fully with those stakeholders who are most vulnerable and also central to FRC Group’s mission. Other material issues, including the environment, staff, and the furniture business generally, receive very little attention. The balance of the Report would be improved through greater emphasis on performance data from these non-core areas, and particularly from the furniture business which comprises a significant part of FRC Group’s activities.

FRC Group should explore and report indicators that capture how it creates social value through its mainstream businesses and through creating socially beneficial markets in new areas. Performance in areas that have not been reported remains good. We recommend that the scope of the report is broadened to include key information on the full set of sustainability impacts of FRC Group.

Just Assurance Network Ltd London, September 2012

Adrian Henriques, Auditor, justassurance, London; September 2011

AUDITOR’S STATEMENT

Material issues are those which are necessary for stakeholders to make informed judgments concerning FRC Group and its impacts.

The economic climate remains difficult. In that context it is welcome to see a significant increase in crisis support, with plans to increase that further in the coming year. There has also been a gradual expansion of other activities, such as prisoner training and a significant investment in support for placements. Reasonable targets have been set for the core areas of focus. However the Report should set out more systematically the extent to which the previous year’s targets have been met.

Responsiveness concerns the extent to which an organisation responds to stakeholder issues 47

Appendix Stakeholder Engagement

Great for people Great for the planet

How we do business

Total number

Number of stakeholders consulted

How

Trainees: Previously unemployed people

All have regular reviews (approximately every 6-8 weeks) and leavers have leaving / exit interviews

Ex-trainees: People who have been on the training programmes in the past

17 trainees left in the year

Past trainees have been invited to link to our Facebook group. Through this we can post group or individual questions

Launch Padders – unemployed people with little or no work experience

26 Launch Padders had a formal review. A further 9 had a formal review and either one or two follow up reviews

Bulky Bob’s Furniture World customers receiving discounts: People in receipt of benefits, pensioners, students, people referred from other support agencies

2153

No formal feedback was collected

People in crisis receiving essential furniture items

399

A post-delivery satisfaction survey was carried out through the referral partners

Staff from support agencies: referring people for crisis support

A survey was carried out

People referred to Bulky Bob’s Oldham: for free of charge furniture in crisis situations

No formal feedback was collected

Oldham referral agencies

People who benefit from the work of the furniture reuse charities we work with

No formal feedback was collected

People living locally to where FRC Group operations are working – general public affected by local environmental impact from our vehicles and building and our operations and from our reuse and recycling activities

Unknown

No formal feedback collected

The global community and future generations: we are all affected by the global environmental impacts of our business

c.6.7 billion

No formal feedback collected

A survey was carried out

APPENDIX

Creating social impact

Stakeholder Engagement Analysis

Appendix Stakeholder Engagement

A great place to work Great planetwith Great tofor do the business

How business How wewe dodo business

Total number

Number of stakeholders consulted

How

Staff: Permanent employees of FRC Group

Feedback gathered through staff performance appraisal “Look Both Ways” which all staff completed

Volunteers: People working in FRC Group on a long-term voluntary basis

Included in the “Look Both Ways” process

Trustees: Our Board members who provide governance as volunteers

Informal feedback collected throughout the year

Furniture Resource Centre customers: the social housing providers who buy furniture and related items from us

Confidential

Telephone surveys

The tenants who receive and use the furniture supplied by Furniture Resource Centre

Total number of tenants not collated

Formal feedback not collected

Bulky Bob’s customers: the local authorities that contract with us to provide collection, reuse and recycling services for furniture and white goods

The householders who receive the collection service from Bulky Bob’s

84,000

No formal feedback collected

Bulky Bob’s Furniture World customers: all the people who shop in Bulky Bob’s Furniture World

c.3,000

No formal feedback collected

Bulky Bob’s Oldham furniture customers: all the people who buy ‘pre-loved’ furniture from Bulky Bob’s

No formal feedback collected

Our suppliers: the companies who supply us with goods and services

Total number of suppliers not collated

Informal feedback is gathered in one-to-one meetings with key suppliers

Furniture reuse charities we work with to supply reusable items

Confidential

No formal feedback collected

Funders and supporters of FRC Group who provide funding, advice, corporate engagement and pro bono support

Confidential

No formal feedback was collected

Regular contract meetings

APPENDIX

How we do business

Stakeholder Engagement Analysis