We believe there is value in supporting employee involvement in both community and civic activities. This is mirrored in our broader view of corporate social responsibility, which we see as making a key contribution to the success of Rolls-Royce in the markets in which we operate. Our practices in the area of `civic duties' supports our wider aims of creating competitive advantage through:

— attracting and retaining the best people;

— building goodwill and maintaining successful working relationships with customers, suppliers and governments; and

— supporting the communities in which our employees live and work.

  When we talk about "civic duty" it covers the following areas.

— Public duties—Time off work to enable an employee to carry out their functions as an official or member of a public body.

— Parliamentary elections—Leave for a parliamentary candidate or his/her agent.

— Local Government—Leave to participate in local government activities.

  Additional information on our practices has been provided under Appendix 1 of this letter.

  Rolls-Royce has a long history of being a responsible business, these principles having been in existence for over 200 years. We are committed to building on our track record and our obligation to behave responsibly.

  As the table below indicates, we have seen an upward trend since 2007 when we began tracking this level of detail:

Year	2007	2008	2009
Employees Taking Civil Duties Leave	58	132	171
Total Days Leave	129	475	622
% Employees with Civil Duties	0.26%	0.61%	0.81%

  In order to be eligible for this leave employees will be: a Justice of the Peace or an official or member of one of the following public bodies:

— a local authority, a statutory tribunal (eg an employment tribunal) or a police authority,

— the service authority for the National Criminal Intelligence Service or the National Crime Squad,

— a board of prison visitors or a prison visiting committee,

— a relevant health authority or education body,

— the Environment Agency or the Scottish Environment Protection Agency,

— a Scottish water and sewerage authority, and

— a member of a probation board, court board or a youth offender panel member.

  Employees are required to obtain the Company's permission before undertaking any of the above. Employees are expected to work flexibly where possible to incorporate their public duties. Employees must agree the amount of paid and/or unpaid time off in advance with their supervisor/manager who will take into account all the circumstances and local business practices. Any paid leave will be paid at an employee's normal daily rate.

PARLIAMENTARY ELECTIONS—LEAVE FOR A PARLIAMENTARY CANDIDATE OR HIS/HER AGENT

  In order to be eligible an employee must provide written confirmation that: he/she is standing as a candidate in a parliamentary election or that he/she is the officially declared agent of someone who is standing as a candidate in a parliamentary election. The following time away from work will be given: for a parliamentary candidate, paid time off work for up to two calendar weeks immediately prior to the election and for an agent for a parliamentary candidate, unpaid time off for up to three calendar weeks. Employees must agree the amount of paid and/or unpaid time off in advance with their supervisor/manager who will take into account all the circumstances and local business practices. For employees who are a parliamentary candidate, the time off work will be paid at their normal daily rate and for employees who are the agent for a parliamentary candidate, any time off work will be unpaid.

LOCAL GOVERNMENT—LEAVE TO PARTICIPATE IN LOCAL GOVERNMENT ACTIVITIES

  In order to be eligible an employee must provide written confirmation that: he/she is standing as a candidate in a local government election or that he/she has been elected as a local councillor. The following time away from work will be given: for a candidate in local elections paid time off will be given for the day of the election only and if an employees is elected to be a councillor they are expected to work flexibly where possible to incorporate their civic duties. Employees must agree the amount of paid and/or unpaid time off in advance with their supervisor/manager who will take into account all the circumstances and local business practices. Any paid leave will be at an employee's normal daily rate.

  Company support for an employees who has been elected to the position of Mayor (for a one year term) would be covered under local government activity and the common practice is for the employee to be granted a one year leave of absence with a commitment that they can return to their previous position.

  Typically employees are granted the number of days they require (having provided evidence to the Company) to undertake their civic duties. We have some arrangements referenced in collective bargaining.