Governance & regulatory information Board leadership and company purpose PRESERVING LONG-TERM VALUE OUR PURPOSE, STRATEGY, CULTURE AND We have a relatively small Board whose members continue SHARED VALUES to work effectively together and are committed to promoting Our purpose, which we rearticulated this year, is ‘To help the long-term sustainable success of the Company, create thejoy of truly feelingat home. Now and for the generating value for all stakeholders, including the wider generations to come’, was formally adopted in July 2021. contribution to the economy and society. The Board believes that good governance supports Dunelm’s purpose, shared Our purpose explains why we do what we do (i.e. why we exist values and strategy and is satisfied that these elements and within the UK homewares market, our long-lasting/sustainable Dunelm’s culture are aligned. For ease of reference and to approach and what we seek to achieve). On page 3 we explain avoid repetition, strategic elements, evidenced throughout the different elements of our new purpose, and on page 2 our our Strategic Report and in this Governance Report, are listed CEO, Nick explains how and why it came about – including below: extensive research and engagement with our colleagues • Purpose:In 2021, we launched our new purpose ‘To help and other stakeholders – and how we intend to communicate create the joy of trulyfeeling at home. Now and for the it. Our new purpose has already been integrated into the generations to come’. Pages 2 to 3. presentation of our strategic plan (page 11) and business • Our shared values and how they align with our purpose, model (pages 28 to 29), demonstrating how our purpose, ambition and strategy are detailed opposite and on page proposition, foundations, strategic focus areas and shared 11. In the Strategic Report on pages 28 to 31 we explain our values interlink and are being communicated to internal and strategy, focus areas and objectives. external stakeholders. Our purpose also sits at the heart of our sustainability reporting (pages 40 to 75). • Our sustainable business model, with an overview of the resources and relationships in place to meet our objectives Our purpose, ambitions, proposition and foundations are (and how we share value, contribute to wider society and all underpinned by our shared values. These describe how balance the interests of different stakeholders), is described all colleagues in the Company are expected to act and on pages 28 to 29 and in our report under s172 Companies influence our culture. Our Board and senior leadership team Act 2006 on pages 103 to 113. role model our shared values which have evolved over time • Key performance indicators, which are used to measure from the business principles formulated by Sir Will Adderley, performance against objectives, including those used to our Deputy Chairman, over a decade ago, and continue determine bonus and long-term remuneration, can be to encapsulate the values of the Company’s founders, the found on pages 32 and 33. Adderley family. We have been pleased that the evolution of • On page 95 in this report, we reiterate how our practical our shared values has never required wholesale alterations approach to governance supports our strategy and long- – an indication of their strength and importance to the term business model. business. • Opportunities and risks to the future success of the At our Board’s strategy days, our five-year plan and the business have been considered and addressed and strategic elements which will deliver the objectives described are set out on pages 76 to 88. Details of the Group’s in it, were debated and challenged in the context of our risk management framework, systems and controls and purpose and shared values. internal control framework are also set out in the same section. This year risks and opportunities related to climate change were discussed in detail, leading to a new climate Our shared values are: Act like owners, Keep listening change governance structure, which is set out in our first and learning, Long-term thinking, and Stronger together. report under the Task Force on Climate-related Financial They shape how we think, how we respect and treat our Disclosures (TCFD) on pages 48 to 51. stakeholders and how we work together. Our shared values are also reflected in our Code of Business Conduct, our Anti-Bribery Policy, our Ethical Code of Conduct and other policies and such as our Tax Strategy. They are also an important expression of how we look after our colleagues – from employee representation through our National Colleague Voice (NCV) (see pages 111 and 112) to further initiatives in health and wellbeing, and diversity and inclusion. All colleagues learn about our purpose and shared values on induction, they form part of our communications, and colleagues are appraised against them. This year, our revised purpose and shared values were a focus topic for colleague engagement with the National Colleague Voice and more widely throughout the organisation, and colleague feedback was incorporated into our work to ensure that they truly reflect our culture. 100 DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021