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Journey to excellenceDeloitte & Touche LLP Corporate Responsibility Report 2008

Our highlights of the year• 60 new partners appointed

• Partner and staff numbers grew 6% to 12,029

• Listed in the Sunday Times Best Big Companies to Work For 2008, for the third consecutive year

• Named as the No.1 graduate employer in finance and professional services in the National Graduate Recruitment Awards – and 1,400 graduates have joined the firm this year

• Listed in the 2008 Sunday Times 50 Best Green Companies

• Awarded an overall ‘Gold’ rating in the Business in the Community 2007Corporate Responsibility Index. Our performance in the overall index increased8.5 percentage points to 93.5% from 85% and a ‘Silver’ rating last year

• One of only 21 UK-based companies to be awarded the CommunityMark byBusiness in the Community, recognising excellence in community investment

• Over 2,900 people participated in our community investment programme

• Deloitte is the exclusive provider of professional services to the LondonOrganising Committee of the Olympic Games and Paralympic Games (LOCOG)

• 33 Deloitte funded Talented Athlete Scholarship Scheme (TASS) athletes qualifiedto represent Great Britain at this year's Paralympic Games in Beijing, three ofwhom were Paralympic medallists:– Eleanor Simmons – winner of two gold medals in the 100m freestyle

and 400m freestyle, 400m Freestyle World Record and youngest ever Paralympic athlete to qualify for an Olympiad at age of 13

– Matt Skelhon – winner of gold medal for shooting– Felicity Coulthard – winner of silver medal in grade II freestyle equestrian

• Named one of the Top 50 places Where Women Most Want To Work, by The Times

• Deloitte has been recognised for its excellence in Corporate CommunityInvolvement by winning the Social Inclusion category of the prestigious Lord Mayor’s Dragon Awards for our Disability Sport programme

1Corporate Responsibility Report 2008

02 A conversation with John Connolly

04 Our joined up approach to Corporate Responsibility

05 Leadership and governance

06 What matters most –A conversation with Deloitte’s Corporate Responsibility partners

10 Our Community agenda

16 Our Talent agenda

22 Our Green agenda

28 Our Marketplace agenda

35 2008 performance review

36 Our commitment

40 More information and contacts

Contents

2

A conversation with John Connolly

How will uncertainty of the economic climateaffect Deloitte’s CR programme?In an economic downturn, it might appear to be aneasy decision to reduce investment in areas such asCR. At Deloitte, we take the opposite view. Deliveringon Corporate Responsibility remains a key priority forour firm. It is embedded in our business strategy andcorporate objectives: we believe it sits at the heart ofsucceeding in turbulent and unpredictable markets.

Social and environmental responsibility has a profoundeffect in demonstrating shared values and ethicalprinciples with those of our stakeholders.

How do you incorporate CR into your businesspractices at Deloitte?First of all, by leadership from the top. I believe that having the most senior people in Deloitte – myself as CEO, my Executive, the Board – committed to CR is fundamental to our people’s buy-in and tobeing credible with our clients. Under this leadership,our attitude is about ‘doing the right thing’ in thelonger term. We aren’t in favour of the moregimmicky approach, we are looking for actions and behaviours that we can and should embed across the business.

We’ve brought this to life by embedding CR into our daily operations at Deloitte, not treating it as abolt-on extra. At governance level, we have a namedExecutive Partner responsible for CR, we debateregular CR issues at the full Executive and our Board,and we have a Board advisory panel that takes aspecial interest in our performance and plans on CR.

At the practical, operational level, our commitment tosetting benchmark performance led us to specify highlevels of ‘green building’ in the development of ournew headquarters building and wider redevelopmentof our London campus and other UK offices.

At the client level, it is about forming high-impactrelationships with high-performing charities andenabling them to achieve better outcomes throughour advice and services. We want them to realisestakeholder value in the same way that we help ourcorporate clients realise shareholder value. Many ofour people and partners play invaluable roles in

John Connolly is the Senior Partner and ChiefExecutive of Deloitte in the UK and Chairman ofDeloitte Touche Tohmatsu. John also leads the firm's Global Corporate Responsibility Council.

Why is Corporate Responsibility important to Deloitte? I see Corporate Responsibility (CR) as a big deal inDeloitte. It’s the natural progression of the values thathave always underpinned our firm. Our partners firmlybelieve that Deloitte should be a leader in creating apositive impact on society. We should do that throughour own actions, and by helping our clients achievethe same.

Because of our long history, we take a broad viewabout what this means. Whilst our very significantcharitable grants make a big difference to those inneed, I am just as keen that the time and talents ofour people, the combined skills of Deloitte, areapplied to solve the challenges faced by many goodcauses. I think this approach makes a difference to the way our clients view Deloitte. For us, it deliversrewarding long-term relationships with unusual,challenging and high performing charities andcommunity organisations. Our people relish theopportunity to make this contribution and to have another outlet for their skills – they feel proud of their work,their colleagues and their firm because of it.


supporting good causes in the community, and we’re proud to help them do this. And of course, we invest thousands of hours of our people’s time into volunteering, fundraising and teamwork togenerate support for needy causes – and almostalways realising their personal development goalsthrough the process. That’s what I mean about CRbeing integral to our business – it’s woven througheverything we do.

How can Deloitte make a difference? The best way for us to effect change is through our intellectual capital. We have more than 12,000talented and enthusiastic people able to apply theirbusiness skills to pressing social challenges. That’simmensely powerful.

What matters to me is that we don’t fritter thatvaluable skill and time away. I’m determined thatwhen we look at CR, it’s on a broad platform. Sowhen we form a charity partnership, I want to knowwhat difference our people can specifically make byfundraising for a good cause, how they can learnmore and feel involved, whether we should behelping that charity develop its own business to be more effective, efficient and impactful.

I’m motivated by making a long-term difference, for initiatives that have a far-reaching impact. For example, in the UK, we were part of manyconversations going back several years now, withclients, politicians, commentators, about the thengrowing problem facing many UK businesses becauseof the lack of employability skills in young people. We decided to work on a solution to this. From theearly steps we took with a pilot project and just a few colleges and employers, we now see The DeloitteFoundation working together with Government,national employers and the education sector to deliveremployability skills training through nine UK-wideDeloitte Employability Centres and 65 FurtherEducation Colleges. 2,000 college leavers have already completed courses and the scheme willbenefit a further 40,000. This is a programme that will run for over five years and is already reshapinghow the delivery of these skills and training happens.That is a great example of Deloitte’s approach to CR –taking time to plan and deliver a high quality solutionthat will directly impact over 40,000 young people.

With my global leadership of the Deloitte ToucheTohmatsu organisation, I am constantly looking forareas where we can all work in pursuit of sharedglobal objectives for CR, and to share good practicefrom the UK and elsewhere across our internationalnetwork of member firms.

You took a decision this year to invest in a major sponsorship of the London 2012 Olympic Games and Paralympic Games, inaddition to your existing Deloitte Disability Sport programme. How will this partnershipbenefit the wider community?I see our London 2012 sponsorship as anotherdimension to our CR programme. I’m proud thatDeloitte was one of the first leaders in the businesscommunity to back the London 2012 bid. Ourselection as the official professional services providerto the London 2012 Olympic and Paralympic Gamesrecognises Deloitte’s quality and breadth of services.We now have the opportunity to take the London2012 story into the heart of our firm, and into our wider CR plans.

We’ll do this by using London 2012 as a theme forour Community Day projects, where teams of Deloittepeople spend time to repair, restore and enhancecommunity spaces and places – a garden in a localcare home, play centre in a deprived neighbourhood,sports facilities for an underprivileged school. I expectour support in this area to help deliver London 2012’sLocal Environment Programme, for example.

We’ll also take the London 2012 message into ourwork with schools, mentoring young people, usingathletes’ stories as role model inspiration and into our support for major charities like The Prince’s Trustwho have already shown how sport can provide aroute back for young people on the very edges ofsociety. Of course, we’ll also be able to make ourrelationship with the British Paralympic Associationand SportsAid even stronger, creating a lasting legacyfor disabled people getting into sport and progressingto a competitive level in the run-up to and waybeyond the London 2012 Paralympic Games.

4

Our joined up approach to Corporate Responsibility

Deloitte’s CR programme comprises four agendas:Talent, Community, Green and Marketplace.

Our Talent agenda Our Talent agenda helps our firm to attract, retain and develop the very best people. We are focused on making Deloitte a great place to work by: creatingopportunities for people to develop their skills andfurther their careers; promoting diversity and flexibleworking options; focusing on the well-being of ourpeople; and by mentoring and inspiring our people,developing the next generation of leaders.

Our Community agenda The purpose of our Community agenda is to make avaluable and sustainable impact on the communitieswhere we live and operate. We do this by giving ourpeople the opportunity to make a contribution and to get involved – benefiting both the communityorganisations which they support and their own skills and development.

Our Green agenda Deloitte’s Green agenda focuses on minimising the impact of our business on the environment. We are doing this by working towards ISO14001accreditation, managing our carbon footprint,reviewing improvements to our environmentalsystems, increasing recycling and reducing our use of natural resources.

Our Marketplace agendaOur Marketplace agenda focuses on the quality of work we deliver for our clients, managing risk,contributing actively to the regulators and professionalagenda and managing the impact of our operationsright through the supply chain. As a leading businessadvisory firm, Deloitte is very well placed to make aconsiderable contribution to responsible business inthe marketplace.

CR championsWe have established a network of champions whotake responsibility for all four of our agenda areasacross the firm.

At Deloitte we fully appreciate that our everyday business activities affect not only our ownorganisation but society more widely, both throughour actions and through the actions of those we dobusiness with. We also recognise that preserving thetrust and confidence of our clients and the public iscritical to our sustained success. That is why we havecreated a culture that is underpinned by ourcommitment to doing the right thing. Thiscommitment is key to our business operations and has driven our firm’s development of an approachto Corporate Responsibility (CR) that is fully integratedwith our business strategy.

Our CR wheel above demonstrates how we see therelationship between our business and our corporateresponsibilities. It demonstrates how we put CR rightat the heart of how we operate. The work we havedone, our achievements to date and our commitment to future plans, will ensure that Deloitte:

• is a sustainable and responsible business;• meets the expectations of our people;• serves clients better; and• makes a real contribution to economic

development and thriving local communities.

5

Leadership and governance

Senior Partner, Chief Executive and Executive GroupDeloitte’s activities are directed and managed by theSenior Partner and Chief Executive, John Connolly,and the Executive Group which is appointed by him.John is also Chairman of Deloitte Touche Tohmatsu(DTT) and chairs the DTT Global CorporateResponsibility Council.

Board of PartnersThe Board of Partners is responsible for the promotion and protection of partner interests and forthe oversight of management. It approves Deloitte’slong-term strategies and has oversight of risk. DavidCruickshank is the Chairman of the Board.

Further details on the Executive Group and Board of Partners can be found in the Deloitte & Touche LLP2008 Annual Report.

Advisory Panel on Corporate ResponsibilityRecognising the importance of CorporateResponsibility (CR), this year we have established an Advisory Panel which is a sub-committee of theBoard of Partners. It has oversight of and reports tothe Board on the firm’s CR strategy, advises on CRplans, monitors performance, and guides the firm’scharitable contribution and philanthropic activities.

The Advisory Panel is focused on the firm’s direction,performance and leadership position across the firm’sentire CR programme and our sponsorship activities.The Panel also ensures that our approach to CR isaligned with the CR policies being pursued by DTTmember firms globally.

Corporate Responsibility Report 2008

The Advisory Panel meets on a quarterly basis and members include:

Member RoleDavid Cruickshank Chairman of the UK Board of Partners

Chair of Advisory Panel on CRGlobal DTT Board Member

Sharon Fraser Member – Board of Partners Geoff Taylor Member – Board of PartnersEllie Patsalos Member – Board of PartnersHeather Hancock Executive Group Member responsible for CR

Managing Partner, Brand and Innovation John Kerr Managing Partner, TalentEmployee representative Elected on an annual basis to represent our people

CR leadership RoleCindy Cahill CR Partner

Partner leading Green agendaMary Reilly Partner leading Community agenda

Partner responsible for charities and Third Sector client service

Mary Rhead-Corr Internal CR Director Board Secretary Financial data and KPIs

Corporate Responsibility in everyday businessOur CR programme is led by Cindy Cahill and the daily activities by Mary Rhead-Corr. They are supported by a group of partners from each of our service lines who ensure that CR is incorporated into everyday businessdecisions. This group includes: Mary Reilly and Patrick Loftus, Audit, Albert Fleming, Tax, Marcus Boyle, Consulting, Martyn Sullivanand Nick van Marken, Corporate Finance.

Through these partners we operate a network of CR Champions, includingrepresentatives from each service line and every level of our organisation. OurCR Champions help to reinforce and co-ordinate activity with their local teamsand provide regular feedback to our leadership.

Aligning with the Global CR CouncilThe Advisory Panel on CR will engage as required with the Global CR Council, led by John Connolly, Global Chairman.

6

What matters mostA conversation with Deloitte’s Corporate Responsibility partners

Cindy Cahill, Corporate Responsibility PartnerJohn Kerr, Managing Partner, Talent

The commitment of our most senior people toCorporate Responsibility (CR) is evident in what they do and say. Here Heather Hancock, DavidCruickshank, Cindy Cahill and John Kerr, share their views on what matters most for CR at Deloitte.

What makes Deloitte a great place to work, andhow do you continue to attract the best talent?

John Kerr (JK): Our people are our most importantasset. Their ability to think, innovate, collaborate anddeliver quality service to our clients is what keeps usahead of the competition. Our business will continueto grow and develop only by being able to recruit and retain the best people – and by offering them anenvironment where they can remain motivated andengaged enough to deliver their best work. Deloitteoffers unparalleled development opportunities,working with the best clients, on exciting andchallenging projects. We are committed to mentoringand developing our people and providing them with a rewarding career path.

How is Deloitte promoting diversity, whileensuring everyone at the firm feels respectedand included?

JK: For our business to succeed, we need our peopleto develop and flourish – while also remaining true tothemselves. That's why we strive to understand – andappreciate – the many and varied differences betweenour people. We actively promote a policy and practiceof equality of opportunity in employment for all ourpeople – regardless of their age, gender, sexualorientation, ethnicity, faith or disability. We'redeveloping a culture where all the capabilities of all our people are fully harnessed and developed – for the benefit of our clients, our business and our colleagues.

Deloitte’s internal diversity networks connect partnersand employees who share affinity indicators such asgender, race, religion and sexual orientation. Withmore than 2,300 members, these groups provide ourpeople with a shared sense of belonging, and help to build bridges between our talent and the wider community.

Heather Hancock (HH): We are absolutely clearthroughout the partnership about the businessimperative to have an inclusive, diverse approach totalent. One of the hallmarks of this is small practicalsteps rather than big grand gestures, and also learningfrom others – for example, inviting the CabinetSecretary’s leader on diversity in the senior civil service to share their approaches with us.

“Our people are our most importantasset. Their ability to think, innovate,collaborate and deliver quality serviceto our clients is what keeps us ahead of the competition.”


David Cruickshank, Deloitte Chairman Heather Hancock, Managing Partner, Brand and Innovation

How is Deloitte looking after the wellbeing of its employees and promoting healthy work-life balance?

JK: Our wellbeing programme focuses on treatingeveryone at Deloitte as an individual rather than as an employee; helping them achieve a better work-lifebalance – and taking a big-picture, holistic view oftheir needs, interests and commitments, both insideand outside the office. We’ve launched a number ofinitiatives to support this, including a full service gymand health suite in London; subsidised gymmemberships throughout almost all of our offices;back-up child care; free professional counselling andregular health-related promotions and activities.Together, these can help our people achieve a betterbalance between their personal and professional lives.

Considering the complexity and instability of the current market, why is investment in thecommunity still so important?

David Cruickshank (DC): We are an integral part of the communities we operate in. Indeed, werecognise that with economic uncertainties, we have a bigger role to play because of our skills and ourscale. Our partners and all of our people expect this from the firm.

HH: We believe a firm of the scale, national reach and calibre of Deloitte should be showing leadershipamong business and in society. The talent and skills of our people can be developed, broadened and enriched by being used to achieve social benefits and that enhances our client-facing work. Beyondthis, our people partly choose to work here because of our community programme and our philanthropictradition – they are an important motivator for ourachievements in this area.

What progress has been made to minimise theimpact that Deloitte’s business operations haveon the environment?

Cindy Cahill (CC): Our programme of green activities,with all of our people playing their part in reducingour environmental impact, has gone from strength to strength over the last year.

Our new London campus has improved the energyefficiency of our buildings, increased the number ofbicycle spaces five fold and implemented extensivewaste and paper recycling programmes across Londonand into some of our regional offices. We willcontinue to work through our green champions’network to harness the creative ideas that our people have to help reduce our impact.

8

What are the key challenges for Deloitte’s CR programme?

CC: This year we have reduced our carbon footprintper employee by 4% but our energy and businesstravel emissions have increased in absolute terms. We are very focused on these areas and haveprogrammes in place to help us reduce our impact.Following the recent completion of our Londoncampus we are confident that we will see the energyefficiency impact in coming years. Our ambitiouseconomic growth targets will be a challenge whentrying to reduce our environmental footprint. We will continue to look at innovative ways of reducingour impact on the environment while meeting ourambitious targets.

How do you engage your stakeholders with your Corporate Responsibility programme?

CC: We have identified our key stakeholders as thosewhich we have an impact on and those who have animpact on us. We have listed our key stakeholders inour CR model on page 4 of this report. We work withour stakeholders on both a formal and informal basisto explain our business to them, understand ourimpacts from their perspective and respond to thematerial issues raised by making appropriate changesto our business and CR program.

This year we are going to further expand thisstakeholder engagement program particularly withregard to engaging with our people on corporateresponsibility issues. This will include focus groupswhich will be run through our already established CR champions network and CR Partners.

What benefits are being realised from Deloitte’sinvestment in disability sport?

HH: Our investment is helping our delivery partners –the British Paralympic Association (BPA) and SportsAid– to transform disability sport in the UK. We’redelighted at what is being achieved workingcollaboratively and in a very focused way on two ofthe critical challenges the BPA identified – gettingpeople active, then competing, in disability sport, and then overcoming the financial hurdles that stoptalented young athletes from being able to combinetheir educational progress with sporting progress. The individual stories of how Parasport, the websitewe’ve created with the BPA, has provided the firststepping stone for people with talent and enthusiasmfor sport are really heartwarming. And to haveDeloitte-backed athletes competing in Beijing just two years into our programme goes to show it ispossible to make a real difference.

Business in the Community’s CorporateResponsibility Index is one of the leading UKbenchmarks of responsible business practice. In2008, Deloitte’s performance in the overall indexincreased to Gold (93.5%), from Silver (85%) lastyear. How has Deloitte managed to achieve thissignificant increase in overall CR performance?

CC: A very strong and sustained commitment from the top of our firm right through to our 12,000 pluspeople, with an inclusive and well-communicatedcampaign for change and improvement. In someareas, like community investment, we’ve beenconsistently highly rated for several years now. In other areas, the Index has been a useful prompt to harness lots of activity into a more cohesiveprogramme and to assign clear managementresponsibility for it.

What matters most


“Deloitte stands forexcellence. The Deloitte team will bring some verytalented people with manyyears of experience. Thoseskills will be an inseparablepart of how we deliverLondon’s Olympic andParalympic Games in 2012.”Sebastian Coe KBE, Chair of LOCOG

10

Our Community agenda

IntroductionThis year, Deloitte’s total contribution to thecommunity was £7.414 million, calculated using the London Benchmarking Group Model. We areproud to have achieved the highest contribution to the community amongst the Big Four professionalservices firms for the second year running. Thematurity of our Community Investment programme,which has been operating for 10 years, demonstratesour credentials as a leading exponent of corporatecommunity investment best practice.

Disability SportThe Deloitte Foundation is investing £1.7 million over five years to develop Disability Sport at a grassroots level in the UK. With matching commitmentsfrom Government bringing the total investment to£3.4 million, this is one of the largest programmes of its kind in the UK. We are doubling the bursaries

Deloitte’s contribution to thecommunity this year was the highestcontribution amongst the Big Fourprofessional services firms.

Felicity Coulthard,winner of silver medal in

grade II freestyle equestrianat this year's Paralympic

Games in Beijing

£7.414mTotal contribution to

the community this year.


“The support I have been giventhrough TASS is a tremendous boost to my ability to train. It has given meopportunity, opened a few doors andbroken down barriers that allow me to now train at a much higher levelthan previously.”Deloitte TASS athlete and Beijing Paralympian Richard Fox, 20 - GB Cerebral Palsy Football Team

awarded to talented disabled athletes to enable themto combine sporting progression with their academicstudies, under the SportsAid Talented AthleteScholarship Scheme (TASS). We have also created a ground-breaking website, www.parasport.co.uk, to encourage disabled people in the community toresearch and become actively involved in the rightsport for them and ideally to progress to becomecompetitive in their chosen sport.

Phil Lane, Chief Executive of the British ParalympicAssociation said: “At grass roots level there is a needto create opportunities for those embarking on theirfirst steps to sporting achievement; we also need tohelp those with talent who want to progress to ahigher level of performance. Deloitte’s investment isenabling us to do just that”. We are delighted thatthis summer, 33 members of ParalympicsGB’s record-breaking team for the Beijing 2008 Paralympic Gameshad been supported by Deloitte in their sportingcareers. It shows significant investment in grassrootssport can quickly lead to those athletes realisingpotential on the biggest global stage.

“We are proud of the fact that we are helping these young people combine both a sporting and academic career,” said Heather Hancock, ManagingPartner, Brand and Innovation. “Being an elite athleteis costly but for a disabled athlete there are additionalcost hurdles to overcome. For instance, it costs thesestudents more to travel anywhere, find the rightcoaching, and get specialised equipment. So, it is a tremendous achievement for promising athletes to realise their potential in sport at the same time as they gain their academic qualifications.”

Briti

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Blind football, RNIB

33Deloitte-funded athletes

qualified for Paralympic

Games in Beijing 2008.

enjoyed the employability skills course. At first I wasn’tsure why we needed to learn these softer skills, but asthe course has gone on I’ve realised just howimportant they are. My confidence has grown a hugeamoun

t! I would definitely recommend doing thisemployability skills course to others – it’s made a hugedifference to my life and I’m really looking forward tomy future now that I’ve left college”.

Shirley Alabaster, Trainer at Solihull College“The Deloitte course has made a real difference inenhancing the employability skills of our students. Wehave seen each of them develop in confidence,particularly in their communication, presentation andinterviewing skills. Our local employers havecommented on how successfully the Deloitte Egh, much higher than you Fundraising and payroll givingDuring 2005-2007, we appointed the British HeartFoundation (BHF) and Leukaemia Research as ournational charity partners, as voted for by employeesand partners across the UK. Our people raised morethan £1million for each charity during the two yearpartnership through fundraising events, payroll givingand matched funding from the firm.

Douglas Campbell Rouse, Head of CorporatePartnerships, BHF said: “We have been extremelyimpressed and humbled with the level of expertiseand enthusiasm with which Deloitte people haveengaged in their charity of the year programme. The impact of the £1.016 million has made a massivedifference to our charity in helping to keep morehearts beating through pioneering research, education and care initiatives”.

Kate White, Director of Fundraising for LeukaemiaResearch said: “The money you have raised is helpingthe thousands of children and adults with leukaemiaand related blood cancers. Every year 25,000 peopleare diagnosed; we want to give every one of them thebest chance of survival. Thanks for your support”.all

12


Employability SkillsWe know that the employability skills of school and college leavers can fall short of employers’expectations: many of our clients have shared theirfrustration with us about this trend. We wanted tomake a practical contribution. Deloitte’s award-winning Employability Skills initiative represents a £2 million investment to address this challenge. Since2001 we have been working with employers, trainingconsultants, further education colleges and the UKGovernment to design and deliver a course that willprovide young people with the skills, attitudes andbehaviours they need to secure and sustainemployment. More than 2,000 people have alreadycompleted the Deloitte employability course at colleges across the country, with thousands moreenrolling each year thanks to a major expansion of theprogramme made possible by the Deloitte Foundation.

The scheme will benefit up to 40,000 young peopleacross the UK over 5 years. Deloitte partners andemployees are supporting students on employabilityskills courses by delivering workshops on businesstopics such as interview skills, CV writing andpresentation skills.

Frank Byrne of HSBC said “We were very impressed bythe students’ positive attitude and their willingness tolearn. The employability skills training that they hadreceived at college enabled them to fit into ourorganisation and workplace culture".

Enhancing employability skills16 year old Sam Lambeth has always wanted to be aPolice Officer. So when he left school he decided toenrol on a Public Services course at Solihull Collegealongside a Deloitte Employability Course: “I’ve really

Enhancing employability skills16 year old Sam Lambeth has always wanted to bea Police Officer. So when he left school he decidedto enrol on a Public Services course at StratfordCollege alongside a Deloitte Employability Course:“I’ve really enjoyed the employability skills course.At first I wasn’t sure why we needed to learn thesesofter skills, but as the course has gone on I’verealised just how important they are. Myconfidence has grown a huge amount. I woulddefinitely recommend doing this employability skillscourse to others – it’s made a huge difference tomy life and I’m really looking forward to my futurenow that I’ve left college”.

Shirley Alabaster, Trainer at Solihull College“The Deloitte course has made a real difference inenhancing the employability skills of our students.We have seen each of them develop in confidence,particularly in their communication, presentationand interviewing skills. Our local employers havecommented on how successfully the DeloitteEmployability Skills course has enhanced theprofessionalism of our learners.”

The Deloitte programme has also involved someexcellent, innovative lesson plans and enjoyableactivities that have engaged all the learners.Stephen Bennion, an external consultant and LeadOfsted Inspector, awarded the session a ‘Grade 1,outstanding lesson’. In his comments he remarked:“This was an outstanding lesson because of thevery good progress made by students in learningand reflecting deeply on their learning. Theirattainment was high, much higher than you would expect at level 2”.

2,000The number of people

who have already

completed the Deloitte

employability course

across the country.


For 2008 and 2009 the firm’s national charity partners are Cancer Research UK (CRUK) and theNational Society for the Prevention of Cruelty toChildren (NSPCC). Our aim is to raise at least £1million to fund the purchase and running of adesperately needed mobile cancer awareness unit for CRUK, and for the NSPCC to fund an onlinecounselling service providing internet and SMS accessfor vulnerable children. Furthermore, we are delightedthat our new charity partners have responded to ourrequest to identify specific projects and targets thatwe are helping them achieve: it helps bring oursupport to life and engages our people even further in assisting these good causes.rtner, Quality

Deloitte has been awarded the HM Treasury GoldAward for our Give As You Earn (GAYE) payroll givingscheme. We are proud to have been recognised forthree years’ running with this prestigious award.

We now have over 2,800 participants enrolled inpayroll giving and in 2007-08, our people donatedover £747,000 through GAYE (including £133,000matched funding from the firm). Deloitte is amongthe highest performers in the UK among largecompany employers and this quality mark provides us with the highest recognition for our approach.

Lord Mayor’s AppealDeloitte has been a platinum benefactor of the 2008 Lord Mayor’s Appeal. This year the appealbenefits two charities: Wellbeing of Women, whose purpose is to fund research into obstetric and gynaecological health matters here in the UK; and ORBIS, set up to eradicate preventable blindness,primarily in the developing world.

As John Connolly, Deloitte UK Senior Partner andChief Executive, said: “Deloitte is delighted to be aplatinum benefactor of the 2008 Lord Mayor'sAppeal. Each year we participate in a wide range ofcommunity programmes and we're pleased to supportthis year's Lord Mayor in his mission to invest inhealthy lives, healthy vision and healthy futures”.

Jo WestheadCommunity Investment Manager

Cancer Research UK Mobile Cancer Awareness Unit

JP Morgan Chase Challenge NSPCC

2005/2007 national charity partners

2008 and 2009 national charity partners

Annual Flagship Charity FundraiserDespite torrential rain, 1,000 Deloitte runnersassembled at Battersea Park this year for the 5.6kmannual JP Morgan Chase Challenge charity run –raising in excess of £120,000 for Cancer ResearchUK and the NSPCC.

John Connolly, Deloitte Global Chairman and UKChief Executive, gave a congratulatory speech toall runners after the race and David Cruickshank,Chairman commended them on their efforts. JohnConnolly added: "I’m continually amazed by thededication and commitment of our people whomake such a difference to the lives of others. I'm proud that so many Deloitte staff, 1,000 in total, took part in tonight's race and of thesignificant donations this will raise for the firm'snational charities".

“The sense of pride for Deloitte and thetogetherness of the Deloitte people was justawesome to watch.” David Owen, ManagingPartner, Consulting

Greatest achievement in building a successful long-term partnershipDeloitte was awarded a prize for ‘Greatestachievement in building a successful long-termpartnership’ for its joint partnership with the BHFand Leukaemia Research, at the British HeartFoundation’s (BHF) second Heart of BusinessAwards on 17 June 2008. In addition, JoWesthead, Community Investment Manager atDeloitte, saw her efforts recognised with an awardfor ‘Outstanding achievement as corporatecharity champion’.

Jo said, “I am delighted to collect this award on behalf of everyone at Deloitte. We are thrilled with the amount we have been able to raise over thelast three years for a truly worthwhile cause.Supported by a network of Community Investmentchampions across the UK, our people have shownan extraordinary level of enthusiasm andgenerosity in order to exceed all past fundraisingand payroll giving records, making this our mostsuccessful national charity partnership to date".

£1mThe amount raised

for each of our national

charities, Leukaemia

Research and BHF, during

the two year partnership

FY05 – FY07.

14

Corporate ChallengeEach year we enter teams into many externalcompetitive fundraising events as part of ourCorporate Challenge programme. We encourage ourpeople to form teams to participate and we assist withentrance fees and Deloitte branded clothing. Previousevents we have supported in this way include: TheTimes Young People’s Leadership Challenge, theManchester to Blackpool Bike Ride, the Leeds AbbeyDash and the gruelling Etape du Tour – the amateurstage of the Tour de France.Ultra-marathon manIan Sharman, a Manager in Corpo

rate Finance, London, endured one of the world’stoughest, most brutal foot racing events – TheMarathon des Sables. He completed the race in 13thposition (out of 802 runners), almost four hours aheadof the next Brit, earning him the highest position by aBrit in the race’s history! Participating in this race has inspired Ian topush harder and see just what is possible. “It wasthe hardest physical and mental test I have everundertaken. I am very happy with the result andMentoring – the best of both worldsEach month, hundreds of our people take part inlong-term mentoring programmes operated across the UK, including our continually popular secondaryschool mentoring and number and reading partnerschemes. We offer a number of ways for our peopleto get involved, with our focus being to enable ourpeople to use their skills and expertise to helpdisadvantaged communities. The firm offers ourpeople a half-day per month – a total of 6 days a year – for approved volunteering projects.

London-based mentor Chris Goodgame, a director inCorporate Finance, explains why volunteering throughDeloitte pays almost as many developmental dividendsto him as it does to his mentees. Chris takes hismentees on tours of our London campus, introducesthem to colleagues and partners and helps themprepare résumés, job applications and developinterviewing skills. “In return,” explains Chris, “I gaina completely different – and much more diverse –perspective on the world.” Chris finds his mentoringexperiences rewarding in other ways, too. He says: “In particular, I was really pleased when one of myformer mentees went on to university last year – andtold me that he wanted to continue our arrangement,even though he’s finished school”.

The Fresh Futures Mentoring Programme, in partnership with Tower Hamlets CollegeAbdi Bahdon is 18 years old, studying A-levels inPsychology, Sociology and English Literature.

What were your main aims and reasons forjoining the mentoring programme?My aim was to meet new people who could bring menew ideas about the industry and the world of work. Ican gain experience and also at the same time, theycan learn from me and I can learn from them.

What have you learnt from being mentored?My mentor taught me how to become independent,how to stand up on my two feet. How to look at lifefrom a different angle and take every opportunity thatcomes my way, even if it is minor thing.

What would you say to a prospective mentee?If you think that you are struggling, or you are havingany problems with your work, organisation, or you


Ultra-marathon manIan Sharman, a Manager in Corporate Finance,London, endured one of the world’s toughest,most brutal foot racing events – The Marathon desSables, a 153-mile race across the Sahara. Hecompleted the race in 13th position (out of 802runners), almost four hours ahead of the next Brit;earning him the highest position by a Britishcompetitor in the history of the race. Participatingin this contest has inspired Ian to push himselfharder and see what else is possible. “It was thehardest physical and mental test I have everundertaken. I am very happy with the result andhope it can lead to future success”.

The Fresh Futures Mentoring Programme, in partnership with Tower Hamlets College

Abdi Bahdon is 18 years old, studying A-levels inPsychology, Sociology and English Literature(mentored by Chris Goodgame)

What were your main aims and reasons forjoining the mentoring programme?“My aim was to meet new people who could bringme new ideas about the industry and the world of work. I can gain experience and also at the same time, they can learn from me and I can learn from them.”

What have you learnt from being mentored?“My mentor taught me how to becomeindependent, how to stand up on my own twofeet. How to look at life from a different angle andtake every opportunity that comes my way, even ifit is minor thing.”

What would you say to a prospective mentee?“If you think that you are struggling, or you arehaving any problems with your work, organisation,or you don’t really have an idea of what universityyou want to go to, I would advise you to get amentor and talk to them. It would be a great help.I think that having a mentor is not really hardwork, but it takes commitment.”

32%The increase in our

employee volunteer

participation.

of Business in the Community. Its aim is to improvethe impact that community investment has onbusiness and society. Successful CommunityMarkcompanies have passed a rigorous, independentassessment of how they invest in and work with their local communities, including scrutiny by theiremployees and community partners.

Deloitte Chairman, David Cruickshank, received the CommunityMark award on behalf of Deloitte at10 Downing Street on 7 July 2008. We were awarded the CommunityMark because we demonstrated a long-term, high-level commitment to investing in our communities. We were also recognised for following good practice and for making a real difference.c

Community daysWe work in partnership with Community ServiceVolunteers (CSV), to deliver our Community Daysprogramme nationally. We support our people tomake a visible contribution to the local community.Our Community Day programme gives groups of upto 200 people the chance to help out on a variety ofcommunity and environmental projects. These projectsare incredibly popular with our people, as they give them an opportunity to give back to their localcommunities with an increasing focus on sustainability and regeneration.

In 2007/08, 2,238 Deloitte employees volunteered16,068 hours on 126 community projects over 35community days, representing a 32% increase in ourvolunteer participation from 2006/07. Many of ourvolunteers revisited venues and sites they had workedon previously, which highlights our focus on buildingsustainable partnerships through volunteering.

CommunityMarkThis year, Deloitte was awarded the CommunityMarkby Business in the Community – we were one of only21 companies to receive this honour.

The CommunityMark is a new national standard thatpublicly recognises companies that are the bestinvestors in their communities. This national standard is endorsed by government and the voluntary sector, and supported by HRH The Prince of Wales, president


Consulting make a huge contribution to the community in just one dayIn a single day last year, over 300 employees fromDeloitte’s Consulting practice contributed 2,121hours to more than 20 different communityprojects, including primary schools, disabledcharities, a psychiatric charity, an environmentalproject, and a young women’s project.

Employees who took part in the day reported thatit helped to improve their teamwork and 90% saidthat they felt positively about the firm as a result(source: CSV feedback).

“I thoroughly enjoyed doing something differentwith my day and supporting an amazing team”Elga Long, Consultant.

Contribution to the artsThis year, Deloitte has invested in a five-yearpartnership with the Royal Opera House, makingus one of their top three commercial sponsors.Deloitte’s support is enabling the Royal OperaHouse, a world-class venue and a registeredcharity, to stage an annual innovative festivalaimed at a younger and more diverse audience.

The first Deloitte Ignite festival was staged inSeptember 2008. Curated by Wayne McGregor, it included contemporary work from artistsincluding Julian Opie and Ravi Deepres and dance performances from Wayne McGregorRandom Dance with children from the Southand East of England.

Tony Hall, Chief Executive of the Royal OperaHouse said: ‘I’m thrilled that Deloitte has made this significant investment into the arts at the RoyalOpera House. They have come on board as one ofour major sponsors for an exciting new initiative.Deloitte Ignite is all about bringing a new audienceinto the Opera House – young professionals whoare currently under-represented here – and offeringsomething contemporary and different to inspirethem to become excited about opera and ballet”.

21One of only 21 UK-based

companies to be awarded

the CommunityMark

by BITC.

36,180Total hours contributed

for volunteering.

16

Our Talent agenda

IntroductionAchieving supreme market leadership depends on our ability to deliver exceptional service to the market.

Managing Partner for Talent, John Kerr explains: “We do this by building long-term and high-valuerelationships with our clients, by focusing passionatelyon quality and innovation in everything we do.

“All of this, however, would be impossible unless we recruited the best people – and without our abilityto provide them with opportunities to develop andprogress quickly. This means building a mentoringculture, giving our people opportunities to work withthe best – and using our near-unrivalled depth andbreadth to provide our people with a wide range ofcareer options.

“It means also that we won’t compromise on ourstandards of quality – only the best is acceptable for our clients. This cycle of development, coupledwith the highest standards, creates the partners of tomorrow”.

As part of our firm’s Respect, Inclusion and Diversityagenda, Deloitte’s internal diversity networks help toconnect our partners and employees around sharedidentities and experiences of gender, race, religion and sexual orientation. With more than 2,300members, these groups provide our people with ashared sense of belonging, help them balance theirworking and non-working lives – and help to buildbridges between our people and the world outside the firm.

So how are we doing? The growing strength of our employer brand isreflected in the fact that more than one in five of ourhires now come to us via our Talent Scouts refer-a-friend programme. Additionally, our rate of internalhires has risen from 7% to 14% in the past year.

And, at the same time, we have enjoyed a 30% jumpin the number of experienced people applying directlyto join us via our website – with a quarter of last year’s1,400 experienced hires coming to us this way.

We are doing well in terms of graduate recruitmenttoo. This year, we are on target to take on almost1,300 graduates, making Deloitte one of the UK’slargest private sector graduate recruiters. Additionally,our proportion of recruits from our target universitiesincreased again this year – and now stands at 92%.

Achieving supreme market leadershipdepends on our ability to deliverexceptional service to the market.

Making a difference to the world outside Deloitte Two weeks of work experience with Deloittemade a world of difference to Myles Boaten andManny Bamigbola, two secondary schoolstudents from south east London.

Fourteen year-old Myles Boaten, a student at The Business Academy Bexley in London’sThamesmead neighbourhood, learned a lotduring two weeks of work experience with our HR team earlier this summer.

Explains Myles: “My time with Deloitte taught me how to manage day-to-day life as a workerwithin a large organisation. It taught me how toput together a good CV. And I improved myinformation and communications technologyskills a lot, too – because of the time I spent onone of the firm’s editorial training courses andalso creating content for the firm’s intranet,” he says.

Adds Manny: “Everyone I met in HR was reallywelcoming, friendly and highly knowledgeable.And, overall, I found my time with Deloitteexciting, enjoyable and challenging”.

84%The percentage of our

people who are proud

to tell others they work

with Deloitte.

14%Internal hires have risen

from 7% to 14% in the

past year.

Supporting Deloitte parents and carersOur Working Parent and Carer Network provides a great example of the benefits these groups aredelivering to our people. Deloitte set up the firm-widenetwork to help employees and partners who areparents and carers balance their busy working liveswith their responsibilities at home. The networkconnects employees and partners who have aninterest in parental or care issues, enabling them toshare best practices, resources, ideas and information– or simply swap stories and offer mutual support. In addition, the network serves also to spreadinformation and understanding of the firm's care-related benefits and policies; helping managers ofemployees with special parenting needs – creatingawareness of our efforts to offer our people greaterflexibility and choice. The network also provided adriving force for the publication of our comprehensiveParenting Guide. The guide, written by parents fromright across our organisation, offers plenty of first-hand advice about preparing for parenthood – and returning to work afterwards.

Finally, the past year has seen Deloitte team up with one of the country's leading nursery networks toprovide our people with 20 days of emergency back-up child care each year, at minimal cost to themselves.


A healthy respect for our peopleWe appreciate that many of our people are spending more of their time doing increasinglydemanding jobs in a fast-paced workplace. That’s why we have created Well Now, our wellbeingprogramme. Set up to help our people balance betterthe daily demands of life both inside and outside theoffice, the programme offers:

• a subsidised gym membership throughout almost all of our offices;

• our onsite restaurant in London serving a variety of healthy food options;

• a series of regular wellbeing-related events throughout the year – including health check-ups and stress management seminars; and

• an externally hosted, confidential and impartial telephone counselling service to provide our people with specialist legal or financial advice, career counselling and personal and emotional support.

Well Now was set up to help our people balance better the dailydemands of life both inside and outside the office.

The Deloitte gym

18

Our Talent agenda

Addressing the gender gapWe aim to lead the market in areas such assustainability and diversity. Senior Partner and ChiefExecutive John Connolly explains: “We can’t afford to be the best in only a few areas – especially when it comes to fulfilling the needs of the most talented people”.

Our Deloitte Women’s Network – one of our internaldiversity networks – provides a good example of howDeloitte is using diversity to recruit and retain the besttalent. Launched on International Women's Day lastyear, the network provides our female partners andemployees with a forum to develop relationships withexisting and potential clients – and to build an internalnetwork within which our people can access rolemodels and raise issues relevant to women in theworkplace. Network sponsor and Forensic & DisputeServices partner Emma Codd explains: “Deloitte hassome work to do when it comes to ensuring a greaterproportion of our women make it into senior roleswithin the firm. The network’s primary objective is,therefore, to support women coming up through the firm’s ranks".

Deloitte is using diversity to recruitand retain the best talent.

Women’s InitiativeBeth Green, an assistant director in our CorporateFinance service line, is living proof of thedevelopment dividends the network is delivering.

Explains Beth: “Since signing up, I’ve been able tonetwork with women in the firm whom I wouldn’totherwise have met. In particular, the events havegiven me access to a number of senior femalepartners who’ve built successful careers here atDeloitte – while providing me also with insightsinto other areas of our organisation. It’s also beenvery reassuring to realise that other women in thefirm are facing many of the same issues I am – andto learn how they’re dealing with them”.

A place where women want to workThe past year also saw Deloitte win externalrecognition as a place where UK women most want to work.

The Times Top 50 Where Women Want to Work list allows potential recruits to research and compare employers. This year's list attracted hundredsof entries from a wide range of the country's leadingorganisations. Specific awards were presented to organisations fielding the best entries in five categories.

Deloitte won the award for connectivity, a categorythat assessed entrants' ability to keep their peoplelinked into – and engaged with – their organisation.In particular, the judges were impressed by the firm'sappropriate use of social networking tools, by itsdeployment of internal and external blogs and remoteworking technology, by our role modelling throughemployee profiles, and by our use of internal seminarsto spread knowledge and understanding. Deloitte was the only Big Four firm to win a category award,sharing the limelight with Google, Cisco, Citibank and McDonalds.

Switzerland Women's Initiative NetworkLaunched on International Women's Day 2007, the Deloitte Women's InitiativeNetwork (WIN) provides women across the Swiss firm with access to role modelsand a forum through which to raise and discuss issues relevant to women in theworkplace. The Network organises monthly lunches for women of all levels fromacross the business to share ideas and discuss issues. In addition, WIN organisesregular events with talks and discussions led by prominent Swiss women. Mostrecently, Barbara Ludwig, spoke about her experience as former Chief of theVictims and Witnesses Section of the UN International Criminal Tribunal for theformer Yugoslavia in The Hague. Deloitte plans to extend the reach of WIN byholding events for women from the external business community, and byworking with the Global Advancement of Women network. Jackie Hess, tax partner and leader of WIN, comments: "Through our Women's InitiativeNetwork in Switzerland we aim to celebrate and recognise women and to help make Deloitte a magnet for Switzerland's most talented women. We arecommitted to the development, mentoring and preparation of Swiss women to be the next generation of business leaders".


Women in LeadershipOur Women in Leadership group is another strongchange catalyst in the drive for equality within our organisation.

Explains Deloitte Vice Chairman and group chairMargaret Ewing: “Consisting of some of the firm’smost senior male and female partners, the group’s roleincludes listening to what our women have to sayabout working at Deloitte – and then driving changeaccordingly.

“For example, based on feedback from our people,the group has made a lot of progress with helpingjunior female partners to find suitable senior femalementors within the firm, thereby helping to nurtureand advance our most talented women”.

Flexibility and choice Globalisation, advancing technology, fast-shiftingdemographics and expectations – all these changesmean we need to alter the way we work if we wantto continue to recruit and retain the top talent.

In part, this means providing our people with as much flexibility and choice as possible – to help thembalance the daily demands of delivering high qualityclient service with their need to make the most of lifeoutside of the office. That’s why we have set upFlexibility and Choice, a firm-wide programme thathelps clarify Deloitte’s flexible working benefits andprinciples – while making it easier for our people toapply to work flexibly.

Below we highlight some of our flexible workers. und them without any problems.”

"Meanwhile, I’m better motivated at work all round,because I feel there is a balance in my life, whichmakes me more productive. And with the businesshelping me to balance life inside and outside work, Ifeel like putting more back in when I am at work.”

Flexible working playing a big part in sailingstar’s global successSouthampton-based Ben Field, a senior associate in our Audit service line, began to work flexibly atDeloitte even before he joined the firm.

Explains Ben: “After accepting my job offer in 2005, I asked if I could begin one week later than the rest ofmy intake – so I could compete in the EuropeanSailing Championships. The firm kindly allowed me todo so and, in return, I was able to bring back a goldmedal for Great Britain!”

Margaret Ewing, Deloitte Vice Chairman

“I’m better motivated at work all round,because I feel there is a balance in my life.”Guernsey-based Jo Huxtable – a director in our Taxservice line – works three long days Wednesday toFriday and from 8.30am to 2.30pm on Monday,making up the hours on other days – includingduring the evening. Explains Jo: “Being able towork flexibly means a lot to me, as it allows me to spend time with my children after school duringthe week and, therefore, have more of a work-lifebalance.

“While at work, I’m focused and organisedenough to ensure I can complete work within the reduced hours. And when I’m at home, I’mhappier – as I have time with my family, which isvery important to me. The business doesn’t sufferbecause of these arrangements, as I ensure I’mavailable at all times. And, in any case, my clientsare aware of my hours and we work around themwithout any problems.

"Meanwhile, I’m better motivated at work allround, because I feel there is a balance in my life,which makes me more productive. And with thebusiness helping me to balance life inside andoutside work, I feel like putting more back in when I am at work”.

20

Our Talent agenda

Nevertheless, having only just joined the firm, Ben feltdaunted by the prospect of asking for extra leave.However, he found himself pleasantly surprised by the‘relaxed and open’ way that the Southamptonpartnership took his special situation onboard. SaysBen: “The partners seemed really keen for me tocontinue to compete internationally – and were,therefore, happy to help me do that whereverpossible. Meanwhile, my more immediate colleagueshave been supportive, too. They see I’m doingsomething unusual, and are interested whenever Itake time off to compete.”

Being able to work flexibly brings benefits to ourbusiness, too! “Being able to work flexibly in order topursue my passion, and represent the country, makesme feel valued – rather than like I’m just some tinycog in a huge machine. It leaves me wanting to workas hard as I can, and to give as much back to mycolleagues and clients – and to the firm – as possible.”

Flexible working allows Audit manager to taketime off for first loveSince joining Deloitte as a graduate five years ago,Gatwick-based Audit manager Tom Paine has regularlyused the firm's flexible working arrangements to meethis commitments to the Crawley Operatic Society.Performing to audiences of up to 3,500 a night, Tom’sinvolvement with the society sees him play differentparts in shows such as Hello Dolly, 42nd Street, Guysand Dolls and Barnum – as well as acting as thesociety's treasurer.

With rehearsals taking place one to two nights a weekthroughout the year, Tom agrees with his colleagues inadvance which days he’ll need to leave on time orearly, making up the hours on other days. Says Tom:“The firm’s ability to deliver flexible working paysdividends for both me and for Deloitte. I get toindulge my passion by being involved in up to twolarge-scale productions a year – which makes a verypositive contribution to my motivation and enthusiasmwhen I’m at work.”

Summer sabbatical helps partner put family firstConrad Young, a Tax partner based in our Londoncampus, took three months off to spend summer withhis wife and three children. Here, he talks about thebenefits the break delivered to him, his family – and to the firm.

Why did you take a sabbatical? My wife extended her maternity leave and I wanted tospend some time with her, my then seven-month-olddaughter and my two teenage boys – both of whomwere on their summer holiday.

How did your team and your fellow partnersreact when you told them you were taking thesummer off?Most of them were interested in what I was doing –and why. I think they thought it was a good thing todo – and seemed pleased for me.

What did you do on your sabbatical? I quite deliberately set out to achieve nothing – nonew languages or musical instruments, for example.As a result, I met my objectives! Instead, I spent mytime drinking coffees in Costa with the mums of mydaughter's friends. I also hit the gym quite a bit. Andwe spent a month windsurfing in Cyprus, as well as acouple of weeks relaxing in the south of France.

What did you gain from your sabbatical,personally and professionally?

Summer sabbatical helps partner put family firstConrad Young, a Tax partner based in our Londoncampus, took three months off to spend summerwith his wife and three children. Here, he talksabout the benefits the break delivered to him, his family – and to the firm.

Why did you take a sabbatical? “My wife extended her maternity leave and I wanted to spend some time with her, my thenseven-month-old daughter and my two teenageboys – both of whom were on their summerholiday.”

How did your team and your fellow partnersreact when you told them you were taking thesummer off?“Most of them were interested in what I was doing– and why. I think they thought it was a good thingto do – and seemed pleased for me.”

What did you do on your sabbatical?“I quite deliberately set out to achieve nothing – nonew languages or musical instruments, for example.As a result, I met my objectives! Instead, I spent mytime drinking coffees in Costa with the mums of mydaughter's friends. I also hit the gym quite a bit. Andwe spent a month windsurfing in Cyprus, as well asa couple of weeks relaxing in the south of France.”

What did you gain from your sabbatical,personally and professionally?“I got a great three months with my family, at areally good time in their lives. And I must confess tocatching up on some reading around the innovationand technology arena. So I guess I brought back abit more insight – and a lot more energy.”

Conrad Young, Tax partner

Flexible working playing a big part in sailingstar’s global successSouthampton-based Ben Field, a senior associate in our Audit service line, began to work flexibly at Deloitte even before he joined the firm.

Explains Ben: “After accepting my job offer in2005, I asked if I could begin one week later thanthe rest of my intake – so I could compete in theEuropean Sailing Championships. The firm kindlyallowed me to do so and, in return, I was able tobring back a gold medal for Great Britain”.

Nevertheless, having only just joined the firm, Benfelt daunted by the prospect of asking for extraleave. However, he found himself pleasantlysurprised by the “relaxed and open” way that theSouthampton partnership took his special situationon board. Says Ben: “The partners seemed reallykeen for me to continue to compete internationally– and were, therefore, happy to help me do thatwherever possible. Meanwhile, my moreimmediate colleagues have been supportive, too.They see I’m doing something unusual, and areinterested whenever I take time off to compete”.

Being able to work flexibly brings benefits to ourbusiness, too: “Being able to work flexibly in orderto pursue my passion, and represent the country,makes me feel valued – rather than like I’m justsome tiny cog in a huge machine. It leaves mewanting to work as hard as I can, and to give asmuch back to my colleagues and clients – and tothe firm – as possible.

“Meanwhile, allowing me to work this way showsthe outside world that our people have more tooffer than just business advice.

“My experience at Deloitte is proof that ademanding career doesn’t need to stop you fromcontinuing to achieve your dreams outside work.”


I got a great three months with my family, at a reallygood time in their lives. And I must confess tocatching up on some reading around the innovationand technology arena. So I guess I brought back a bitmore insight – and a lot more energy.

£1,000 Thank-you bonusThis summer we gave all our people a £1,000 thank-you bonus for their part in delivering a superperformance culminating in £2 billion of revenue in two years.

Further external recognition Meanwhile, our approach to talent has earned ourorganisation many awards in the past twelve months.These include: coming runner up in The TimesHighfliers Graduate Employer of Choice survey of more than 15,000 final-year students; winningrecognition as the country’s top financial andprofessional services graduate employer at the TargetNational Graduate Recruitment Awards; building theUK’s best career website – according to Top EmployerWeb Benchmark – and picking up an award for bestpractice in diversity and equal opportunities at thisyear’s DWF Employer Awards (sponsored by law firm DWF LLP).

Flexible working allows Audit manager to take time off for first loveSince joining Deloitte as a graduate five years ago, Gatwick-based Audit manager Tom Paine has regularly used the firm's flexible workingarrangements to meet his commitments to theCrawley Operatic Society. Performing to audiencesof up to 3,500 a night, Tom’s involvement with thesociety sees him play different parts in shows suchas Hello Dolly, 42nd Street, Guys and Dolls andBarnum – as well as acting as the society'streasurer.

With rehearsals taking place one to two nights aweek throughout the year, Tom agrees with hiscolleagues in advance which days he’ll need toleave on time or early, making up the hours onother days. Says Tom: “The firm’s ability to deliverflexible working pays dividends for both me andfor Deloitte. I get to indulge my passion by beinginvolved in up to two large-scale productions ayear – which makes a very positive contribution tomy motivation and enthusiasm when I’m at work”.

Internal move proves just the jobLast year, Simon Davis – then a London-basedmanager in our Audit service line – found himself at a career crossroads.

“My Audit job had taught me a huge amount.However, having predominantly worked for thesame client for several years, I needed a change –to accelerate my rate of development again.”

Simon decided to look for his next opportunitywithin another service line – and eventuallytransferred into our Corporate Finance Insurance practice.

This new role has seen Simon working on financialdue diligence projects for insurance brokers andcompanies, commercial due diligence and strategicadvisory work in the corporate and Lloyd’s markets– and on secondment for six weeks with a City client.

“The variety of work and people I’ve been exposedto since starting the new job fully vindicates mydecision to pursue an internal opportunity,” hesays. “My learning curve has steepened again, I’ve gained new skills, improved my market andcommercial knowledge hugely – and broadenedmy internal and external network”.

Simon Davis, Audit manager

22

Our Green agenda

The major highlights of our environmentalperformance this year are:

Project UnityTwo years ago we embarked on an extensive project to upgrade our offices in the UK. The aim of this project was to implement good environmentalpractices throughout our offices. This year saw uscomplete the new build and refurbishment of asubstantial part of our London campus. We have been focused on reducing the energy consumption of our buildings. The reduction will be subject to any changes in Defra conversion factors for thecoming year.

• Since commissioning our new buildings in London, we have seen a reduction in energy consumption. The impact of this reduction will be reflected in our next reporting year, as this year we have been running two extra premises in London to allow our people to move around as we completed the refurbishment programme.

• We were awarded a ‘very good’ BREEAM rating (RYBKA May 2005 report) for our new buildings based on an assessment of the environmental impact and achievements to reduce energy and water consumption.

• 87% of the surplus furniture from our refurbishment has been reused or recycled.

• We have Increased the number of spaces for bicycles on our campus five fold. The demand for these additional bicycle spaces and dedicated shower facilities has been very high, with the importance of the health and environmental benefits being a significant factor in choosing to cycle to work. We have supported this choice with the financial benefits of our Bike to Work programme.

IntroductionLaunched in 2007, our Green agenda addresses what Deloitte needs to do to develop a sustainable,profitable and environmentally-friendly business. Werecognise the importance of minimising the impact ofour operations and services on the environment andeach of our people plays an important part in helpingus achieve this. As key stakeholders in our Greenagenda we actively seek input from our people onareas where we can improve and collect and act ontheir suggestions where appropriate.

As a result of the actions taken by all of our peoplewe managed to reduce our per employee emissionsthis year by 4% while our business grew by 11.5%over the same period. Energy consumption andbusiness travel, however remain a key focus for us as these increased in absolute terms year on year with the increase in the size of our operations.

This year we have collected more comprehensive data about our environmental performance than everbefore including data from our Swiss operations andmade significant improvements to the quality of ourreporting, but we want to make sure we continue toimprove our information and processes and we areconfident that we will see reductions in our carbonemissions going forward.

Cindy Cahill, Corporate Responsibility Partner

4%The amount that our

per employee carbon

footprint was down,

while our growth

during the same

period was 11.5%.


Our Carbon FootprintThis year we have grown our business by 11.5% from a revenue perspective and our carbon footprinthas increased by 8% during the same period. Ourcarbon per employee has however decreased by 4%.The increase in absolute terms this year is caused inthe main by an increase in energy consumption whichis the result of a number of factors namely:

• This year we are including data from our Swiss operations. This data has previously not been collected or reported and accounts for 8% of the total increase on our Scope 2 emissions.

• During our London campus refurbishment program we have been running at least two extra buildings to allow us to refurbish existing buildings. The carbon relating to these additional buildings is included in our total carbon emissions. In May 2008 we moved out of our Strand premises and plan to move out of our Meridian House premises during FY09.

• The energy consumption relating to the refurbishment programme used by our building contractors has been included in our energy and carbon numbers reported.

While we are confident that in FY09 we will see a reduction in absolute terms, we are continuing towork with the Carbon Trust and our people to realisethese reductions.

Our carbon footprint is reported below following the GHG protocol.

Our direct emissions from gas, refrigerants, generators and firm owned vehicle fleet.

Our indirect emissions from electricity.

Our other emissions from waste and business travel including cars, taxis, bus, rail, air and hotels.

Our reporting period covers June to May each year. Our CO² figures are based on Defra guidelines issued in June 2008 and we have also zero rated renewable energy in line with these guidelines. All prior year data has been restated to be consistent with the current year’s presentation and to take into account improved data collection. *The significant decrease in Scope 2 emissions in FY06 was due to switching to renewable energy during this year.

Our new campus building in New Street Square

2008Emission Category

3,678

6,362

24,551

2007 2006 2005

3,079

5,016

23,936

3,505

5,494*

20,524

3,214

17,508*

17,557

Scope 1

Scope 2

Scope 3

24

Our Green agenda

Renewable energyCurrently we purchase 68% of our energy fromrenewable sources. Without this renewable energyprocurement our carbon footprint per head wouldhave been 4.02%. We are monitoring closely the changes in this market and the challenge of continuing to secure green energy as overall demand increases.

Environmental ReportingWe have appointed a full time ISO14001 manager to formalise our strategy for continuous improvementwithin this internationally recognised standard andaim to be ISO14001 accredited during 2009. A SpecialProjects role has also been created in our CorporateResponsibility (CR) team; the first project will focus onimprovements to our monthly reporting process. Thiswill enable us to focus and take actions much quickerthan we have been able to do historically.

Business travelBusiness travel remains a challenge for us as it is an integral part of the way we do business and ourmarket-leading growth rates inevitably compound thechallenge of managing business travel. We are doing anumber of things to help minimise the need to travelwithout impacting our ability to service clients. Firstlywe are implementing a new travel portal in the fourthquarter FY08 which highlights the carbon impact oftravel options and we are encouraging the greenestform of transport wherever possible. In addition ourimmersive video conferencing facilities come on-line in November 2008. These facilities are state-of-the-artand will link all of our frequently travelled UK and USroutes and we anticipate that this will have asignificant impact on the need to travel. We willcontinue to work with our people to raise awarenessto reduce our need to travel.

We are creating a programme ofimprovements to our managementsystems so that CorporateResponsibility and sustainability areintegrated into our daily operations.

Paper consumptionWe have continued our Elite programme this year to reduce the amount of paper we consume. We have implemented Meridio, anelectronic document management system and rolled out firm-wide introduction of duplex printingand scanning solutions.

Elite has delivered and integrated client informationmanagement solutions. It provides our people withthe ability to save and manage all client information ina central, secure location and increases the support forcollaboration across client teams. Elite has been drivenby senior stakeholders across the firm from initiationthrough to the project’s implementation in early 2008.Elite has played a significant part in reducing ourpaper consumption and has also reduced the physicalfile space in our London campus by 36%. Not onlyhas this had a positive impact on the paperconsumption, but it has also reduced the transportaspect of file management, including deliveries andrecalls from our off-site archives.

The rollout of duplex printing and changes to the weight of paper we use across our offices has also contributed to our 26% reduction in paperconsumption. Given the growth of our business, this is a significant achievement and everyone in the firmhas taken part to help us reach this objective.

We have a working group who meet regularly to review our stationery supplies for opportunities to reduce the environment impact in this area.

CateringThe packaging used in our staff restaurant ismanufactured with minimal environmental impact.We no longer use any polystyrene food containers or cups, choosing instead to use a range of fully biodegradable containers. Our new cups are madefrom fully renewable resources and our takeawaycutlery is also made from recycled materials.

68%The amount of our

energy we purchased

from renewable sources.

26%The reduction in paper

consumption.


A clear head in a crisisJulie Robinson, one of our green and communityinvestment champions, is passionate about ourfirm's environmental impact and humanitariancauses. As part of our office moves during theyear, we have had to recycle surplus stationerysupplies. Julie and our Corporate Finance GreenChampions worked with the homeless charityCrisis, who were able to put our surplus suppliesto good use: “Saving money on office furnitureand stationery means we have more money tospend directly helping homeless and vulnerablyhoused people. This has come at the perfect time for us.”

Green Day in Milton KeynesSince October 2007, our Milton Keynes office hasmade dramatic steps to support the firm’s overallGreen agenda. One year down the line, it’s a verydifferent story.

At the start of 2007, Deloitte's Milton Keynesoffice recycled less than ten bags of waste a monthand the only green initiatives were being carriedout on an ad hoc basis. Now, recycling hasincreased ten-fold thanks to a concerted GreenDay campaign to encourage recycling within theoffice. One of the measures taken was to removeall individual waste bins and replace them withcentral recycling stations for glass, plastic cups,cans, plastic bottles, newspapers and journals, and office paper. Milton Keynes Green BusinessNetwork (GBN), Cawleys, and Milton KeynesCouncil supported the Green Day initiative byspending time talking to staff about how theycould change their behaviour both at work and at home to work towards environmentalsustainability.

The Green Day also encouraged people to sign upfor car sharing as a means of getting to work andput people in touch with others living in similarareas. “The Green Day was very successful,” saysDella Judd, service centre manager. "It went a long way towards explaining what we were doing and why".

Engaging our people with the Green Agenda Our Green agenda goes onlineWe have created a dedicated Green agenda intranetsite, which provides a gateway for our people to seewhat the firm is doing in terms of practical action, and offers the opportunity to comment on how wellwe are doing and to submit ideas for new initiatives.All responses received are integrated when we re-evaluate and review improvements to ourenvironmental systems – so that the feedback fromour people guides and shapes our Green agenda.

Waste managementPrior to our refurbishment, our London Campus alonehad over 6,000 desk-side bins, resulting in over onemillion bins emptied and 1 million plastic bags goingto landfill every year. We have removed personal binsfrom all of our London buildings and introducedrecycling stations. We are rolling this initiative outacross our regional offices and have completed this in our Leeds, Manchester, Milton Keynes and Swissoffices. As a result, nearly 74% of our London waste is now recycled. Waste emissions for the firm overallhave decreased by 50% when compared to last year’scarbon footprint; this is due to our various newinitiatives and campaigns.

74%The amount of

London waste

that is now recycled.

26

Our Green agenda

Sunday Times Best Green CompaniesIn May this year, Deloitte featured in the SundayTimes inaugural Best Green Companies List, a rankingof the UK’s 50 best green companies. Only nine bigcompanies (with 5,000+ people) made the top 50.Notably, Deloitte scored 2nd place overall forencouraging participation in our firm's communityprogramme.

Richard Caseby, managing editor of The SundayTimes, highlighted the calibre of companies when hesaid; "The 50 companies in this survey are all pioneers– enterprising, enlightened and fizzing with newideas. All have a common sense of purpose abouttheir corporate social responsibility".

United Bank of CarbonDeloitte is assisting with the development of theUnited Bank of Carbon (UBoC). UBoC is a communityinterest company which allows businesses to fundrainforest sustainability on a global basis. Deloitte isproviding invaluable skills and expertise to UBoC inits start-up phase. This is expected to be a globallyprominent project and will provide support to abroad base of environmental and under-fundedglobal causes.

UBoC will broker partnerships between individualbusinesses and specific rainforest protection projectsrun by established non-governmental organisations.UBoC's subsidiary UBoC Trading will invest in thevalidation of UBoC rainforest projects for trading inthe emerging global voluntary (and potentiallycompulsory) carbon markets.

The Prince’s May Day NetworkThis year, Deloitte submitted a May Day case studyon climate change to Business in the Community,reporting on our climate change actions and activitiesrun by Business in the Community.

As a member of the network, Deloitte has pledged to take action on: • integrating a low carbon strategy into our

business model;• committing adequate budget and resources to

tackling climate change; and• encouraging our suppliers to measure and

minimise their carbon footprint (see ‘Our Marketplace agenda’).

United Bank of Carbon

The waste we haverecycled this year hassaved 977 tonnes ofcarbon which is equalto turning off over19,500 fluorescentlights for a year. Source - Carbon Trust

Corporate Responsibility Report 2008 27

28

Our Marketplace agenda

IntroductionDeloitte’s Marketplace agenda seeks to ensureresponsibility right through our supply chain –including the quality of the work we provide to our clients, how we interact with our suppliers and how we contribute to the regulatory andprofessional agenda.

Respecting our clientsIn a bid to further improve the work we do; following each engagement, we seek to capturesignificant post-assignment feedback from our clients.Our innovative feedback programme is always based on face-to-face interviews with clients. Rather thanhaving a questionnaire or template for the interviews,they consist of conversations based on several keytopics and are entirely tailored to the particular client’sexpectations and the extent of their relationship with Deloitte.

Deloitte’s client service assessment team has a strongmandate from the firm’s Executive to reflect ourclients’ views and facilitate action: the team reportsdirectly into our Managing Partner for Quality. Theprogramme helps us to develop quality relationshipswith our clients and to gain a better understanding of their perspectives and changing needs.

Delivering qualityAs a firm, we have a responsibility to our clients, our people, our regulators and to the communities in which we live and work. This is reflected in ourapproach to quality.

For our clients, the need for high-quality services andsolutions is paramount. Added to this, we recognisethat robust corporate governance is vital for effectivecapital flows and for building confidence and trust inthe markets from companies, Government, investorsand consumers. The need for the highest levels ofquality assurance has never been greater.

All of our services are built on our reputation forquality and our ability to deliver first-class solutions to complex clients and markets. Our robust policies,procedures and methodologies are thencomplemented by strong quality controls, achallenging programme of review and risk monitoring,as well as our primary asset: the quality of our people,and the reputation built on that. These areunderpinned by a strongly consultative culture.

Leadership commitmentOur focus on quality is reflected in the level ofattention and commitment given by our most seniorpartners. Our Senior Partner and Chief Executive, JohnConnolly, recognises the critical importance of qualityto our clients, our regulators and our people, and seesthis as a personal priority. In addition, he hasappointed senior members of our Executive to take responsibility for our quality and riskmanagement agendas.

Vassi Naidoo is our Managing Partner, Quality and hasresponsibility for our overall Quality Agenda. This hasthree strands: clients, infrastructure and people. Vassilooks at all elements of our practice to ensure we areupholding and delivering the very highest qualitystandards across these three strands, all of whichultimately have to be delivered through the attitudesand behaviours of our people.

Deloitte is unique amongst the BigFour as our feedback programme isalways based on face-to-face interviewswith clients.

The Deloitte Code

• Honesty and integrity – we act with honesty and integrity.

• Professional behaviour – we operate within the letter and the spirit of applicable laws.

• Competence – we bring appropriate skills and capabilities to every client assignment.

• Objectivity – we are objective in forming our professional opinions and the advice we give.

• Confidentiality – we respect the confidentiality of information.

• Fair business practices – we are committed to fair business practices.

• Responsibility to society – we recognise and respect the impact we have on the world around us.

• Respect and fair treatment – we treat all our colleagues with respect, courtesy and fairness.

• Accountability and decision making – we lead by example, using our shared values as our foundation.


Embedding quality in our peopleWe use a variety of processes, tools and approaches to ensure our people have the skills and attitudes to uphold our quality standards. The Deloitte Codeprovides guidance for our people about the specificstandards of behaviour we expect throughout our organisation.

In addition, our people undertake a set of mandatorytraining courses to ensure they have the knowledgeand skills required within the framework of ourcompetency and performance management model.All of our partners and people are supported in theirquality, compliance, risk management and anti-moneylaundering obligations by appropriate technical andother training programmes. Our online independenceand ethics learning programme is undertaken byeveryone in the firm, using real-life examples totranslate independence and ethical questions into practical actions. Additionally, our telephonehelplines allow our people to request information, ask questions or report issues confidentially to senior members of the Practice Protection Group.

We also provide our people with a set of internalprocesses and tools that help ensure they meet ourindependence and compliance responsibilities. Ourengagement compliance and client database systemsare all internally developed and comprise cutting edgesolutions to the complexity of regulatoryrequirements; the tools are designed to be intuitive to use while facilitating compliance, reporting andmonitoring. We assess whether potential newengagements are consistent with maintainingindependence and managing any potential conflicts of interest. We also monitor partner and staff personalinvestments to ensure we safeguard the independenceand objectivity of Deloitte, our people and ourengagement teams.

Vassi Naidoo summarises: “Over the past year, wehave continued to improve a number of our processesand working practices that are integral to our businessstrategy. By gaining feedback from our clients throughindependent client service assessments, we have takenactions to enhance the value of the services we deliverand address any concerns raised. We remaincommitted to ensuring the highest quality in our professional work and in all we do.”

£1,000The bonus given to all

our people for achieving

£2billion revenue in

two years.

30


Ethics, Integrity and Practice ProtectionGerry Paisley, Managing Partner of Practice Protection,is responsible for overseeing the firm’s ethics,compliance and risk management processes.Alongside the Senior Partner and the Board he workswith our National Compliance, Independence andEthics partner to set the strategy and priorities for our ethics and compliance programme.

We have well-established systems and procedures tohelp safeguard the objectivity of our people and thefirm, to avoid conflicts of interest and to comply withethical and other applicable standards. The release ofrevised ethical standards this year has added to thecomplexity of these considerations, requiring aconstant balance between the straightforwardapproach outlined in the Deloitte Code and theincreasing levels of regulation and professionalrequirements in this area.

Gerry Paisley comments: “We take our regulatoryobligations extremely seriously, and adopt anapproach that whole-heartedly embraces the spirit aswell as the letter of regulation. We are confident thatthey are demonstrated through the tone set by theleaders of our practice and the behaviour and actionsof our people.”

Our Practice Protection Group comprises regulatorycompliance, risk management, anti money laundering,information security, and internal audit specialistsproviding an all-round function to support themanagement of quality and risk across the firm.

The importance of maintaining confidentiality aroundclient and other information is continually emphasised– and our approach to encryption, ethical walls, cleardesk policy and secure storage devices all underpinthis commitment. Our policies require all confidentialinformation held on firm laptops to be encryptedwhile our people are expected to take the utmost care with such information; whether in hard copy or electronic form. We have supported this throughsignificant investment in a new documentmanagement system to refine our working practices.

Quality and risk management frameworkOur quality and risk framework is embedded in all parts of our business. Its primary purpose is tounderpin our commitment to quality, integrity andethical behaviour throughout our business, whilstestablishing that the responsibility for quality sits withthose who deliver service to our clients. Engagementpartners remain fully responsible for the quality of theservices they provide. Where those services areregulated, they are conducted by persons who areindividually authorised by the appropriate regulatorybody and who are supported by a partner in each ofthe service lines who assumes responsibility for thereporting and oversight of quality and riskmanagement issues and who are senior members of each service line’s management team.

Audit qualityAs a leading auditor of UK public interest entities, we have also published our annual TransparencyReport. This report, which is available from ourwebsite, gives more information on our firm and our approach to delivering audit quality, including ourstructure and governance, independence proceduresand practices and our systems of quality control.


Making an active contributionA number of Deloitte practitioners contribute activelyto the regulatory, legislative and professional agenda.This allows us to make a valuable contribution to theenvironment in which our business operates, reflectingthe needs of market participants.

Russell Collins, Deloitte's UK Financial Servicesindustry leader, has for the past three years beena member of the Financial Services PractitionerPanel – a statutory body representing theinterests of the Financial Services industry in theUK regulatory framework. The main remit of thePractitioner Panel is to provide input to the FSAfrom the industry in order to help it meet itsstatutory objectives, comply with the principles of good regulation and represent the interests of practitioners.

Caroline Gardner is a director in the FinancialServices advisory team at Deloitte, leadingstrategic marketing and consumer projects across a wide range of financial services markets.Caroline has provided advice to Government,trade and consumer bodies, as well as to financialservices providers and distributors. She has 20years experience of understanding consumerdynamics in the financial services arena.

Keith Leslie, a partner in Deloitte's Public Sectorpractice, served as external reviewer of the UKGovernment's Climate Change programme. Thisreview was sponsored by the Cabinet Office andthe Prime Minister's Delivery Unit and entailedassessing the effectiveness of the programmes in place to deliver the UK's emissions reductiontargets for 2010 and 2020. The principalcustomers for the review were Mike Anderson,the Director-General for Climate Change andWilly Rickett, the Director-General for Energy. The review recommended a number of actions to improve the effectiveness of the climatechange programme's overall leadership,programme management and engagement withthe delivery chain, i.e. industry and households.

“We take our regulatory obligationsextremely seriously, and adopt anapproach that whole-heartedlyembraces the spirit as well as the letter of regulation. We are confidentthat they are demonstrated throughthe tone set by the leaders of ourpractice and the behaviour and actions of our people”Gerry Paisley, Managing Partner of Practice Protection

32

Pro bonoDeloitte offers support through the technical skills and talents of our people, through our pro bonoprogramme. Our programme works with selectedcharities and causes with which Deloitte is alreadyassociated, serving to deepen the commitment andunderstanding between us, and making a valuablecontribution to the not for profit sector.

“Pro bono consulting offers us an opportunity to addreal value to our community using our core consultingskills” – Marcus Boyle, Consulting CorporateResponsibility Partner


Barnardo’s reveals new ways to help children living in povertyIn 2008, one high profile area of pro bonosupport was in our work with Barnardo’s toproduce an analysis of policy options to reducechild poverty in the UK. The aim of this report has been to move forward the debate onwhether and how the Government can meet its2010 Public Service Agreement (PSA) target tohalve child poverty. Barnardo’s will be using thefindings of this analysis to influence its discussionwith the Government in the run up to the pre-budget report 2008.

The report, ‘How to Halve Child Poverty by 2010:Options for Redirecting Resources to ReduceChild Poverty’:

• analyses the impact of the 2008 10p compensation package on child poverty;

• recommends a recycling of resources already spent supporting families; and

• suggests three policy options, any of which could help the Government to meet their2010 target to halve child poverty

Child poverty in the UK impacts the lives of 2.9million young people. It is vitally important thatchild poverty is recognised as a crucial issue bypolitical parties across the western world,following the leadership shown in the UK on thisissue. Deloitte’s extensive experience in this fieldhas enabled Barnardos to set out a range of viable policy options that can take theGovernment ever closer to delivering on that ambition.

Barnardos chief executive Martin Narey said:“When the Government invested £2.7 billion tocompensate losers of the 10p tax rate abolition,the benefit to families in poverty was, essentially,zero. Barnardo,s recognises that it would be glibto demand additional money be spent to meetthe target at a time of economic difficulty. This is why we are encouraging Gordon Brown to beprudent and redirect existing resources to achievehis goal. Spending decisions aren’t easy, butsurely, when it comes to children living in poverty in our country, there is no choice.”

A new HR vision for World VisionWith a mandate to transform HR from a supportfunction to a value creator and build world classpeople capability across the organisation, WorldVision turned to Deloitte for support in a range ofConsulting expertise including HR Transformationexpertise from the People and Change practiceand Shared Services expertise from Strategy andOperations.

“This was a hugely rewarding engagement forme, both from a personal and a professionalperspective. Helping to support their leadershipteam in resolving these fundamental questionsand launching what everyone hopes will be anew and successful HR vision to take WorldVision forward has been rewarding for the solereason that our work will enable World Visionemployees deliver even better support to thoseparts of the world where it is desperatelyneeded.” Mike Friend, Consulting Manager, Pro Bono team member

“We would not have got this far without you all. Thank you very much – each of you have showered us with generosity of time, and capability and heart.” Bessie Vaneris,Strategic Director, Global HR, World Vision Inc.


Partnering with our suppliersEnsuring ethics and responsibility throughout our supply chainDeloitte has an Ethical and CR Procurement policy with an associated questionnaire which ourprocurement teams have been trained to implement.This policy has a grading facility to quantify theenvironmental impact of our suppliers. This forms part of the overall assessment process for the selection of suppliers.

We endeavour to work attentively with our chosensuppliers to ensure they meet appropriate standards.In 2009, we will be increasing the percentage of oursuppliers subject to annual review of these standardsfrom 20 to 25%.

The Deloitte AcademyThe business of Deloitte is to deliver leading-edgeprofessional services across the full spectrum ofbusiness needs, but we do recognise our widerresponsibility to make a contribution to theeffectiveness of management and governance, Our response is the Deloitte Academy.

The Deloitte Academy has been designed to providesupport and guidance to boards, individual directorsand company secretaries in this complex environment.Membership of the Academy is free to directors andcompany secretaries of public companies. Throughmembership they have access to a wide-rangingprogramme of technical briefings, education andtraining on a variety of subjects.

The programme draws on the deep technical expertise of our firm combined with our broadpractical experience, organised into a curriculum that can be customised to fit the specific needs of individual directors.

“Pro bono consulting offers us an opportunity to add real value to our community using our coreconsulting skills.”Marcus Boyle, Consulting Corporate Responsibility Partner

34

“We have achieved asignificant increase in overallCR performance by having in place a very strong andsustained commitment fromthe top of our firm rightthrough to our 12,000 pluspeople, with an inclusive and well-communicatedcampaign for change andimprovement.”Heather Hancock, Executive member, accountable for the firm's overall performance on Corporate Responsibility


About this reportThis report covers our CR performance for the year ended May 2008.

This report covers our UK operations and for FY08 we have included our Swisspractice within certain indicators. Those marked with (*) include the impact of our Swiss Operation. Our basis of accounting can be found at www.deloitte.co.uk.

(**) We now run our commitment survey on an 18 month cycle and have thereforerolled last years result forward to cover this year.

Awards which we have won post our year end but which relate to our FY08performance have been included in this report.

2008 performance review

2008

2,86536,1801.3927.414

1.361.873.680.51

107147

73**12,029*

43%12%2,350

74%691,437

47.43,678

6,362

24,551

2.88*

2.010

2007 2006 2005

2,02025,7001.2236.584

1.141.563.350.53

8862

7311,333*

42%13%

-

70%934,368

-3,079

5,016

23,936

2.99

1.802

56814,0351.0342.793

1.000.600.860.34

-20

729,98643%12%

-

Not measuredNot measured

-3,505

5,494

20,524

2.96

1.559

35216,5900.7522.897

1.340.600.700.27

--

699,15943%10%

-

Not measuredNot measured

-3,214

17,508

17,557

4.18

1.355

Community agendaNumber of VolunteersTotal Hours ContributedTotal partner and employee charity contributions (£ million)Total Charitable donations (£ million)

Total Charitable donations (£ million)Value of volunteering time (£ million)

Professional services donated to charity (£ million)Management of Community Program (£ million)

Disability Sport; number of TASS bursariesEmployability Trainers

Talent agendaEmployee commitment indexDeloitte Employees (average no)Women Employees (%)Women Partners (%)Employees who have joined diversity networks

Green agendaWaste recycling (London)Paper consumption (kgs)Business travel – % of air travel offsetCO2 Scope 1 emissions (tonnes converted at Defra 2008 guidelines)CO2 Scope 2 emissions (tonnes converted at Defra 2008 guidelines)CO2 Scope 3 emissions (tonnes converted at Defra 2008 guidelines)CO2 Emissions per employee

FinancialsRevenue (£ million)

36

Our commitment

What we are going to do in 2009 – 2012

What we have done so far? Are we there yet?

What we said we would do in 2007/08

Deadline

As part of our on going CR program we will continue to improve and identify newpolicies, practices and KPI's going forward.

Total number of volunteers.

Total hours contributed.

Total partner and employee charitycontributions; a measure of contributionleveraged by the firm's communityprogramme (£ million).

Total community contribution (£ million).

Disability Sport; number of TASS bursaries.

Employability Trainers; a target to increasethe availability of the Employabilityprogramme.

We have established an Advisory Panel on CR to have oversight of our CR activities, appointed a CR Director, and created a specialist CR delivery team for the business.

Our goal 2,600Our performance 2,865

11% above our goal

Our goal 30,000Our performance 36,180

21% above our goal

Our goal 1.340Our performance 1.392

4% above our goal

Our goal 7.303Our performance 7.414

2% above our goal

Our goal 100Our performance 107

7% above our goal

Our goal 135Our performance 147

9% above our goal

Demonstrate high standards of governance,executive reporting and decision makingwith regard to CR and continue to improveour data collection systems across all of our CR agenda areas.

Ensure that our people recognise andcelebrate the overall impact of what we doand their contribution towards it, and buildever greater levels of participation as part ofour broader high performance culture.

Continue to steer our CR programmetowards more distinctive 'flagship' issuesand activities, e.g. education, to increase our impact in communities that need our support.

Achieve platinum rating in the BITC ranking.

Review how we engage with our variousstakeholders with a view to having morestakeholder contribution to our CR programme and reporting going forward.

Recognising that this will be a difficult year,delivering on Corporate Responsibilityremains a key priority for our firm. We see this as a key differentiator for us in thechallenging times ahead and commit tomaintaining our Community Investmentactivities at the same level as FY08.

Our target is at least 100 TASS bursaries.

We will continue to increase the number of trainers across our FE college network.

In progress

New

New

New

New

Yes

Yes

Yes

Yes

Yes

Yes

This is anongoingproject.

2009

2009 / 2010

2009

2009 and ongoing

2009

2009

2009

2009

2009

2009 and ongoing

Leadership, governance and our approach to CR

Community agenda


Community agenda (continued)




Deadline

To improve our data collection systems and processes working towards ISO14001accreditation.

Keeping our 2007/08 CO2 level peremployee at the same level as 2006/07,while growing our business during the same period.

% of Waste Recycled.

% Reduction in paper consumption.

We have appointed an ISO14001 manager to take responsibility for ourenvironment data and to help us achievethis internationally recognised standard in 2008/09.

We have created a special project role within our CR team to focus on datacollection across our CR program, with the initial focus of this project to look atimprovements to our monthlyenvironmental reporting thus allowing us to manage our impacts more proactively.

Our business grew by 11.5% during2007/08. Our footprint grew in absoluteterms by 8% during this time but our peremployee CO2 has decreased by 4%.

Our goal for London 75%Our performance for London 74%

Our goal 20%Our performance 36%

Review our approach to volunteering to ensure it:• is aligned with our CR strategy• gives our people a combination of

opportunities including opportunities linked to sustainability / environmental programs and linked to our London 2012 Olympic sponsorship.

• gives our people opportunities to develop their skills and talents in the service of good causes, whilst achieving personal development goals

Review and define a more consistent firmwide approach to pro bono work whichreflects the talents of our people, reinforcesthe causes we are associated with andenhances our brand through thecontribution we make.

Establish a more visible and activerelationship with our nominated charities.

We will achieve ISO14001 accreditation forour 4 major buildings (5,000+ employees) in 2009 and will seek to get the balanceaccredited over the next two years.

We will start a bi-monthly reporting process to enable us to focus and takeactions much quicker than we have been able to do historically.

We are planning the following reductions in CO2;Scope 1 – to keep at the same level as 2008.Scope 2 – to reduce energy consumption by 2% per year for the next 5 years.Scope 3 – to reduce our travel impact by 2% per year for the next 5 years.

Increase volume recycled across the UK andSwitzerland to 70% for the firm as a wholeby 2010.

We will seek to get a further 5% reduction in stationery consumption. Where appropriate we will move our paper based stationery to recycled, or FSC accredited stock.

New

New

New

In progress

In progress

Partially

Yes

Yes

2009 and ongoing

2009

2009

2009 and ongoing

2009

2009 and ongoing

2009 and ongoing

2009 and ongoing

Green agenda

38

Our commitment

Marketplace agenda

Talent agenda




Deadline

% of Business Travel offset through ourCorporate Charge Card.

We have ethical and environmentalstandards for our procurements activities.We will engage regularly with our suppliersto identify opportunities for improvementsand the implementation of good industry practice.

Resourcing and Mobility ExcellenceOur recruitment process focused onattracting high calibre staff.

Broader choices of secondment andoverseas opportunities.

Improved succession planning and broaderrange of opportunities for our employees.

Diversity, flexibility and choiceImproved diversity performance.

Development of our respect and inclusion agenda.

Our goal 50%Our performance 47.7%

We have updated our Procurementprocedures to include the CR credentials of our suppliers in the tendering process.

We have worked hard to ensure that weattract the talent to Deloitte. This can beseen in the increased number of peopleaccepting a graduate employment offerfrom us. Numbers have risen from 95% lastyear to 99% this year. This is reflected in ourincreased scores in The Times ‘High FliersTop 100 Graduate Employers’ benchmark.

We have moved 494 People in and out of the UK on overseas postings andsecondments. This adds richness to theculture at Deloitte whilst providing ourpeople with great developmentopportunities at home and abroad. It also allows us to move talented individuals to developing markets.

14% of our overall opportunities have been hired from our internal talent pool. This is an increase of 5% on the year before.

We have promoted 226 of our people toDirector, Partner and Assoc. Partner level.

2,350 of our people have joined our maindiversity networks. We have also began tointroduce new networks, including socialnetworks, which reflect the global nature of our UK firm.

We have agreed targets around the numberof women we aspire to have at all levels inthe firm and put processes in place toensure we achieve them whilst engaging all of our employees.

We will continue to aim for 50% of our travel offset through our CorporateCharge Card and will look at other options to offset in 2009.

We will increase the volume of suppliersreviewed annually from 20% to 25% over 5 years.

We will continue to be the employer ofchoice for high performing, talented people.

In a challenging market we will operateglobally to ensure all of our talent isdeveloped effectively throughout theDeloitte network.

We will continue to maintain high standardsand further opportunity for our people tomove internally and realise their potentialwithin Deloitte.

We will continue to expand these networks as and identify and support theestablishment of networks which reflect the cultural diversity of our firm.

All senior female candidates will be provided with a confidential peer levelbuddy to talk to about the reality of building a career at Deloitte.

No

In progress

In progress

In progress

In progress

Yes

In progress

2009 and ongoing

2009and ongoing

2009

2009

2009

2009and ongoing

2009

Green agenda (continued)


Talent agenda (continued)




Deadline

Diversity, flexibility and choice (cont’d)Development of our respect and inclusion agenda.

Best-in-class coaching and developmentImproved leadership development.

Operating a high performance culture.

Improved management capability.

Senior HR deploymentStreamline HR processes to implement amore effective and efficient infrastructure.

Greater technology enablement.

More of our people are attending basicdiversity awareness workshops and eachperson joining Deloitte receives anintroduction to our diversity agenda. Our Women in Leadership strategy groupcontinues to drive positive change at thevery top of the firm.

We have extended our confidential 360degree feedback scheme to include seniormanagers and above. This allows our employees at all levels to provideanonymous and constructive feedback to the management in the firm.

We have launched a pilot mentoringprogramme which we will develop into afirm wide initiative in order to ensure wehave a leading edge employee experience.The firm achieved a pass rate of 79% in theICAEW's Professional Stage exam. This was9.1% higher than the ICAEW pass rate of70.1%. This summer we gave all our peoplea £1,000 thank you bonus for their part indelivering a superb performance,culminating in £2 billion of revenue in two years.

Our connections programme links over 100of our people to the 100 senior partners in a two-way mentoring programme.

In the last year we have undertaken athorough review of our HR processes andstructures. We are creating an HRorganisation which is enabled throughtechnology, so our employees can bettersupport themselves in HR matters.

We have set up an HR shared service centreand some of our HR team are currentlybeing relocated to Milton Keynes.

We are going to replicate the Women inLeadership Group in moving our Black,Asian and Minority Ethnics agenda to the next level.

As appropriate, we will continue to rolloutand respond as required to 360 degreefeedback for our future leaders of the firm.

We will continue to recognise and rewardhigh performing individuals at all levels

We will improve the links to ensure ourcoaching practices are class leading and set us apart as employer.

We aim to achieve improved retention rateswithin HR, greater development operationsfor our HR colleagues and increasedsatisfaction scores from our internal clients.

A number of roles will move to MiltonKeynes and a number of people will leavethe firm. We are also creating a number ofnew roles as part of this process.

Our SAP HR system will be fully operationalby the end of FY09.

In progress

In progress

In progress

In progress

In progress

In progress

2009and ongoing

2009and ongoing

2009and ongoing

2009and ongoing

2009and ongoing

2009and ongoing

2009and ongoing

40

More information and contacts

Deloitte's Corporate Responsibility programme www.deloitte.co.uk [email protected] Cindy Cahill, CR Partner [email protected] Rhead-Corr, CR Director [email protected]

Deloitte Parasport www.parasport.org.uk [email protected]

Deloitte Employability Skills www.deloitte.co.uk/employability [email protected]

Careers with Deloitte Graduate recruitment: www.deloitte.co.uk/graduates Experienced hires: www.deloitte.co.uk/careers

Corporate and Social Responsibility services For more information about the Corporate and Social Responsibility services Deloitte can provide for your organisation, please visit: www.deloitte.co.uk/csr

DTT Global Corporate Responsibility Policy As a leading professional services organisation, the Deloitte Touche Tohmatsu member firms have much to contribute to public policy, business and society throughout the world.

As such, we respect human dignity and expand our capabilities through inclusion and cultural diversity. We promote the highest levels of ethical behaviour, advance education and culture, and advocate sustainable use of natural resources and respect for the environment.

We demonstrate this through: • Investments in our people • The advice and services we provide to clients• Environmentally sustainable operations• Commitment to our local communities and the wider society

Feedback If you have any feedback on our report, please send it to: [email protected]

With thanks to:Barnado’s, British Heart Foundation, British Paralympic Association, Cancer Research UK, Community Service Volunteers (CSV), David Yeo, Leukaemia Research, NSPCC, Royal Opera House, The London Organising Committee of the Olympic and Paralympic Games, United Bank of Carbon

Deloitte refers to one or more of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please seewww.deloitte.co.uk/about for a detailed description of the legal structure of DTT and its member firms.

Deloitte & Touche LLP is the United Kingdom member firm of DTT.

© 2008 Deloitte & Touche LLP. All rights reserved.

Deloitte & Touche LLP is a limited liability partnership registered in England and Wales with registered number OC303675. A list of members’ names is available for inspection at StonecutterCourt, 1 Stonecutter Street, London EC4A 4TR, United Kingdom, the firm’s principal place of businessand registered office. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.

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Documents

Journey to excellence Deloitte & Touche LLP Corporate ...annualreport.deloitte.co.uk/interface/pdfs/... · Corporate Responsibility Report 2008 1 02 A conversation with John Connolly