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BBC Worldwide's primary purpose is to bring value to the BBC in the form of profits and programme investment. However, the company also brings value to the BBC through extending audiences' enjoyment of BBC programming via new products and services. Its broadcasting, publishing and licensing operations help to enhance the reputation of the BBC and British creative talent in over 90 countries and territories worldwide.

The project also catalysed a reframing of BBC Worldwide's values to make them more relevant to the company's commercial remit. Sessions took place with staff worldwide to ensure they understood these values. Work is ongoing to ensure they become embedded across the business.

VALUES

• WE ARE PASSIONATE ABOUT PROFIT & GROWTH
• WE PUT CUSTOMERS & AUDIENCES AT THE HEART OF EVERYTHING WE DO
• OUR CREATIVITY IS THE FUEL FOR GROWTH
• WORKING TOGETHER WE MAXIMISE OUR POTENTIAL
• WE DRIVE QUALITY FROM EVERYTHING WE DO
• WE BUILD TRUST WHEN WE DELIVER ON OUR PROMISES
• WE RESPECT AND HARNESS OUR DIFFERENCES

CORPORATE AND SOCIAL RESPONSIBILITY

Environment

BBC Worldwide is actively committed to minimising any negative impact that its activities might have on the environment. Although the business does not operate in areas where there is a risk of serious industrial pollution, it is the UK's third largest publisher of consumer magazines. Recognising its responsibility in this context, it is a founder member of the WWF Forest Trade Network and has played a leading part in the campaign to promote credible forest certification. BBC Magazines was the first consumer magazine publisher in the world to print a magazine on paper labelled with the Forest Stewardship Council (FSC) mark, a gold standard guarantee that the paper is responsibly sourced.

In addition, the Magazines business is working closely with other major publishers to develop recycling solutions in line with government guidelines, with a particular focus on ensuring that all unsold copies have direct recycling routes.

In-house campaigns

BBC Worldwide recognises that respect for the environment begins at home. During the year, the business launched an Environment Champions Project with support from the UK-based independent charity Global Action Plan. The aim was to raise environmental awareness among staff, and embed the principles of sound environmental practice more deeply into the BBC Worldwide culture. From management down, staff response to the initiative was highly positive and the campaigns proved effective, helping to achieve a 41% increase in recycling. Work is continuing to ensure further progress is made in 2007/08.

ETHICAL SOURCING

BBC Worldwide seeks to conduct its business to the highest possible ethical standards. The business is working to ensure that its suppliers operate according to the principles enshrined in BBC Worldwide's Ethical Sourcing Policy, first drawn up and implemented in 1999. BBC Worldwide's Ethical Trading Policy Board meets regularly to monitor activity and compliance. It pays particular attention to areas of potential risk, notably character licensing and magazine covermounts.

Working with an independent labour standards consultancy, it has embarked on a training and assessment programme designed to help ensure that its covermount suppliers and manufacturers in China meet its ethical sourcing standards.

SUMMARY AND OUTLOOK

This has been a landmark year for BBC Worldwide in terms of tripling PBIT over the last three years, passing the milestone of £100m operating profit before exceptional items, seeing existing businesses continue to restructure and prosper, and developing a clear and integrated strategy that will take BBC Worldwide forward to the next phase of its growth. Combined with the success of the business' ongoing culture change programme, this strategy is expected to see profits double again over the next five years. Achieving this target will demand high levels of investment in new businesses, especially in digital media. As a result, the business forecasts lower profits in 2007/08, although still double what they were in 2003/04.

	07	06
Global Channels	169.0	166.1
Global TV Sales	216.4	188.9
Content and Production	52.9	36.1
Magazines	171.3	171.8
Home Entertainment	186.9	208.9
Digital Media	13.9	13.3
Total	810.4	785.1

	07	06
Global Channels	20.9	6.9
Global TV Sales	40.2	33.7
Content and Production	9.5	3.2
Magazines	20.0	19.5
Home Entertainment	24.4	27.7
Digital Media	(3.9)	(1.6)
Total	111.1	89.4