A Stakeholder Approach to Value Creation

Management policy at Access Engineering explicitly acknowledges what is already implied in any meaningful approach to management, that is, to running a business: that while the basic reason why any business exists in the first place is to earn profits for its owners, this is only one of a broad spectrum of considerations that must receive their due. Most of these considerations become a factor in decision-making because of their effects on various individuals and groups who are affected in some way by company operations, who have it in their power to affect or influence strategic decisions and operations, and who therefore may be said to have a stake in the Company’s fortunes and the actions of management.

This being so, assessment of value creation cannot be restricted to economic value alone. In fact, our management policy acknowledges the importance of social and environmental capital and value creation, and hence of management engagement in the following areas.

Economic Value Creation

This, of course, is a business fundamental. Indeed, it is one of the three pillars of our sustainability framework. Value creation and distribution include profits generated and distributed among shareholders, taxes paid to the Government, salaries and other emoluments to employees, payments to suppliers, subcontractors, etc.

Environmental Value Creation

This is the second pillar of our sustainability framework. By the very nature of what we do, most of our projects have a direct and often significant impact on the environment. We are a heavy consumer of natural resources; our operations, if conducted without proper regard to their effects, may pollute, impoverish or degrade the environment. While destructive of environmental value in themselves, such effects could also result in reputation loss and loss of economic value through fines for non-compliance with pertinent laws, rules and regulations.

Thus, compliance with such laws, rules and regulations (together with periodic auditing to ensure it), enforcement of ISO 14000 environmental management standards, ecologically-aware project planning and execution, the application of environment-friendly construction techniques, materials reuse and recycling, training employees in proper environmental practices and proper project demobilization are essential elements of every project we undertake. Additionally, Access Engineering undertakes tree-planting programmes in and around project locations in order to increase the environmental capital generated by our operations.

Social Value Creation

Large infrastructure projects have substantial effects on local, regional and national communities. Thus, the Company’s conduct as a corporate citizen may have enormous consequences; Access Engineering may come to be seen as a social and national asset, or as a liability, based on its social conduct. On the negative side, reprehensible behaviour may lead to loss of preference among principals and clients and ultimately to loss of business; it may also help generate resistance, more or less organized, from people resident in project areas, which may raise the costs and difficulties associated with a project or cause it to be cancelled altogether. On the positive side, good social behaviour can help smooth the way and generate support for our operations.

Access Engineering incorporates sensitivity to such issues into project planning and management, recruits staff from the local communities wherever possible, maintains regular and frequent dialogue with local communities, and undertakes project audits at least three times during the life cycle of the project (and more often if deemed necessary).

Labour Practices and Decent Work

The construction industry, by its nature, exposes companies engaged in it to high employee turnover rates and the risk of injuries and accidents among employees and members of the public, and is also heavily dependent on skilled labour. For a very large firm like Access Engineering, there are additional risks that arise due to the island-wide ambit of our operations, which means our people are also distributed all over the country and many of them spend large amounts of time travelling.

Fines for non-compliance with labour laws and regulations, the risk of lawsuits against the Company from disaffected employees and ex-employees, and damage to the Company’s reputation are among the risks to which the Company is exposed.

Quite apart from these negative incentives, Access Engineering is committed to the creation of employee value and the enhancement of its human capital.

For all these reasons, the Company follows prudent human resources management principles, strictly applies the health and safety practices nominated in OHSAS 18001, undertakes regular training and staff development, and offers above-industry-average pay and benefits to its employees.

As a member of the UN Global Compact, Access Engineering is also committed to uphold human rights both in principle and in practice, and takes particular care when subcontracting project work to local suppliers in remote and economically vulnerable areas of the country, where the potential exists for the exploitation of women and children as labourers, etc.

Product Responsibility

For a builder of roads, bridges, waterworks and other large infrastructure, the risk of disaster and loss of life due to structural failure is a real and serious threat. Even in cases where there are no injuries or losses of life, faulty construction incurs financial costs arising from repairs or rebuilding and from fines, and reputation loss that may have major long term economic consequences. Prudent project management from planning and mobilization through execution until completion and handing over of the project, the strict implementation of the ISO 9001 quality management system and the maintenance of a high degree of competence and responsibility among our people are essential factors in the mitigation of such risks.