Strategic report Governance Financial statements Other information SECTION 172 STATEMENT Understanding the views and interests of our stakeholders helps The Directors’ awareness of their duties to the Company, Considering the long term the Group make responsible and balanced decisions. In doing so, combined with the knowledge and insights they obtain on the The Board sets the strategy, values and culture, and develops and we aim to generate long-term value for the Company’s views and interests of the Group’s key stakeholders and the impact oversees the Group’s framework of governance, risk management shareholders whilst contributing to wider society by building of the Group on wider society, enables them to make balanced and internal controls to promote and safeguard the Group’s strong and lasting relationships with our other key stakeholders. decisions that promote long-term sustainable value for the long-term success. The strategic goals and objectives it sets are Section 172 of the Companies Act 2006 requires the Directors to Company’s shareholders. In practice, the Group operates within focused around developing the Group’s proposition and service to act in a way they consider will promote the success of the Company a corporate governance frameworkhereby responsibilitw y for fulfil the long-term needs of its clients. You can read more about for the benefit of our shareholders as a whole. In doing so, the day-to-day decision making is appropriately delegated. In the Group’s strategy on pages 26 to 35 of the Strategic Report. Directors must have regard (amongst other matters) to: considering their duties under Section 172 when setting the The Group’s annual operating plan, which is approved each year by Group’s strategy, values and framework of policies, the Board aims the Board, sets out how the Groupintends to prioritise its efforts •The likely consequences of any decision in the long term; to ensure that the consideration of stakeholder interests and the over a rolling three-year period in order to achieve its longer-term The interests of the Group’s employees; Group’s long-term success is embedded across its business. strategic objectives. Details of how stakeholder considerations • influence the Board’s approval can be found in the case studies on The need to foster business relationships with the Group’s The Board recognises that the impact of each decision made pages 132 to 133. • by it and elsewhere in the Group’s governance framework will suppliers, clients and others; be different for each of its key stakeholders. It understands The Group provides an essential service to its clients in a highly •The impact of the Group’s operations on the community and the importance of considering the impact on each of those regulated environment. The identification, management and the environment; stakeholders, in order to balance their interests whilst promoting mitigation of risks to the Group’s business is key to ensuring the the success of the Group’s business. delivery of the Group’s strategy over the longer term, and the •The desirability of the Group maintaining a reputation for high consideration of risk plays an important part in decision making. standards of business conduct; and The Group’s Board and Committee paper templates encourage You can read more about how the Group evaluates and manages paper authors to consider and highlight the impact on the Group’s risk along with a description of the principal and non-financial risks •The need to act fairly as between the Company’s shareholders. stakeholders of the matters covered. In addition to acting as an aid to the Board in discharging its duties and facilitating focused relating to the Company’s operations on pages 50 to 58 of the You can read more about how we engage with and respond to the Strategic Report. interests and needs of our key stakeholders on pages 36 to 37 of debate, this is intended to provide an additional layer of comfort the Strategic Report. that paper authors have properly considered and taken into Our employees account the interests of impacted stakeholders. The Board recognises that understanding the needs of the Group’s How the Board has discharged its Section 172 duties people is essential in developing a workplace and culture in which The Directors are briefed on their duties as directors as part of Further details of how the Board considers each of the specific they can reach their full potential and, in turn, ensure the long-term the Group’s induction programme and the Board as a whole matters set out in Section 172 is set out below, along with specific success of the Group. periodically receives refresher training. Each Director also has examples of how those considerations have influenced decisions access to the Group Company Secretary for advice on the taken by the Board and Group more widely. application of those duties. 130 Hargreaves Lansdown Report and Financial Statements 2021