lottery operator will curb its profit marginJune 2001
Camelot has promised to cut its profit margin by half as one of a series of pledges made in its second social report.
The UK National Lottery operator says it will attempt to halve its profits from the current one per cent of sales to 0.5 per cent over the seven-year period of its second licence, which began in December 2000.
It will do this partly by greater investment, but if it should exceed planned profit levels for any reason, it will share the extra money with the National Lottery Distribution Fund, which distributes lottery cash.
The move was a response to stakeholder feedback which revealed that the public found the company’s current level of profits unacceptable, Camelot said.
It had been agreed as part of a package of new measures aimed at improving the company’s social responsibility.
Although Camelot claims its record is good on profits and executive pay levels, concerns about both had figured in recent stakeholder dialogue. Last year the company reduced its executive director’s salary package by a third when Dianne Thompson took up the post.
The social report also commits the company to:
begin collecting data on the equal opportunities policies of its suppliers as a precursor to promoting best practice through its supply chain
carry out stakeholder consultation on the management of complaints about the business.
It also says it will double the number of test purchase visits to check whether retailers are selling to people under the age of 18. Last year there were around 5000 visits, but this will rise to 10,000 a year in the second licence period.
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