Vinci Construction And Global Integration On Organizations Construction Essay

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Vinci is a multinational private French Contractor that has maintained position on the top 3 of the world's largest construction companies since the 1990's. (fig 1) In 2009, it landed on Top 3, unbeaten for years and moved down to 2 places only from 2008 as Chinese railway contractors rose outstandingly due to the country's billion dollar stimulus plans. The world leader in concessions and construction, employing 162,000 people in about 100 countries, Vinci finances, designs, builds and manages the facilities that improve everyday life; the systems that transports us, the public and private buildings in which we live and work, the urban developments that create and improve our communities, and the water, energy and communication networks vital to human existence (http://publi.vinci.com/vinci/vinci-profile-2010.pdf). Records report an annual turnover rate of £33.5 billion for this company.

Integrated in its business model are the Vinci Concession groups; Vinci Autoroutes and Vinci Concessions, and the Contracting groups; Vinci Energies, Eurovia and Vinci Construction. This paper is focused on the group Vinci Construction. The Contracting Group, Vinci Construction has an unmatched collection of experience in building, civil engineering, hydraulic engineering and services. Vinci Construction France, Vinci Construction UK and other subsidiaries in Germany, Central Europe, Africa and in overseas France form the network which shapes the business component of Vinci Construction. Subsidiaries of the group also deal with specialised, highly technical business lines; specialised civil engineering, nuclear engineering or oil and gas infrastructure all over the word. Vast complex projects worldwide on major civil engineering and building structures are tackled by Vinci Construction Grands Projets.(fig 2)

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Vinci Construction has a network of specialised construction companies which has been providing services specifically in the sectors of Building, Civil Engineering, Air, Facilities and Technology. Building and Regional Contracting projects include Car Parking, Commercial, Defence, Education, Healthcare, Law and Order, Leisure, Residential, Retail, Warehousing and Distribution. Whereas Energy and Decommissioning, New Nuclear, Rail, Roads, Waste, Water and Industrial projects compromise the Civil Engineering projects. Air projects include Terminal Extensions, Refurbishment of Live Terminal Buildings and Aircraft Stands and Pavement Infrastructure to name a few. Main services offered by Vinci Facilities are Facilities Management, Building Maintenance including mechanical & electrical, Capital Programme Management, Energy Management and Client/Employer's Agent duties. Technology projects such as Bulk Infilling, Drilling and Grouting or Mine Consolidation or Technology services such as Building Pathology and Environmental and Sustainability Consultancy are covered by the Soil Engineering and Technology Centres under Vinci Construction UK.

The following are a few of their projects in the Building, Civil Engineering, Hydraulic Engineering, Services and specialised business activities respectively: Mandarin Hotel Park Paris, Zanzibar Aiport Tanzania, Ho Chi Minh City light rail system, Soil improvement, stay cables and long prestressing for Golden Ears Bridge Canada, Mexico City and Singapore metros, Panama canal deepening, Chernobyl sarcophagus containment structure in Ukraine, Doha pumping station, 54 schools in Germany , public facility maintenance under PPP contracts.

The list goes on for approved and completed contracts awarded to a network of companies making up Vinci Construction. The quantity of these has an equal reputation of quality of products and full services through assimilating unique management styles, networked organizations, utilizing their human resources and talents effectively. Vinci Construction has played a major part in the fabrication of new standards in the construction industry through its widespread example of excellence in performance in major building and public works and major civil engineering projects in Europe and the rest of the world despite the current economic difficulties.

2009 Revenue for Vinci Construction amounts to 14,549Million in Euro. Operating profit from ordinary activities is at 671Milllion in Euro. Net profit attributable to equity holders of the parent is 434 Million in Euro. Current workforce of Vinci Construction Group is 72,000 employees. End of the year order book was valued at 15.8 Billion in Euro.

Figure 1 Chris Sleights. Jul-Aug 2010. The Global Top 200. New Report. International Construction. Vol 49 No 6 pg 12. KHL Publications

Figure 2 Vinci Group

Task 1

EXAMINE THE WIDER IMPLICATION AND EFFECTS OF EUROPEAN AND GLOBAL INTEGRATION ON ORGANIZATIONS

Identify the effects of globalization on national economies

Globalization is the process of denationalization of markets, politics and legal systems. It is the rise of global economies. It is a very important feature of the present world because of the consequences of the political and economic restructuring on national economies , the environment and social welfare.

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At a business level, the process of globalization is when companies decide to take part in the emerging global economy and establish themselves in foreign markets. They adapt their products or services to the linguistic and cultural requirements of different nations. Then, they might take advantage of the Internet revolution and establish a virtual presence on the international marketplace. More and more companies do their business online. E-commerce has changed traditional business practices by providing direct international access to information and products.

Economic activities of countries take place in more than their country itself. It takes different forms, like international trade, growth of import and export, foreign investments, foreign loans and bonds, and many others in an increasingly open, integrated and borderless international economy. Economic globalization has different consequences on businesses all over the world and influences almost every area of human life. Globalization has potential benefits on the one hand, and costs or risks on the other. Globalization increases economic development and reduces poverty. Globalization makes national economies vulnerable to changes all over the world. For example the huge market or foreign goods in the United Kingdom creates jobs overseas and keeps foreign workers employed. Similarly, the health of the U.K. economy depends on how well British products sell in foreign countries.

There has been remarkable growth in such trade and exchanges, not only in traditional international trade in goods and services, but also in exchanges of currencies; in capital movements; in technology transfer; in people moving through international travel and migration; and in international flows of information and ideas. Globalization refers to the international integration of product and capital markets and to the development and integration of international production and service networks (Mercado, 2001).

Companies must stay abreast of economic trends and directions and attempt to see how these affect their businesses. International businesses give mixed signals about the future of the economy. Companies such as Vinci may analyze other contracting companies or associated companies in the contracting/construction industry as significant economic indicators influencing the essence of their very operations and its strategic place in the market.

Discuss the influence of international institutions

The international movement towards open markets promoted by the World Trade Organisation (WTO) has as its premise that trade liberalisation will benefit all concerned. Each country should be able to exploit its position of comparative advantage once a free and fair trade regime has been implemented. Free trade is beneficial to a company such as Vinci. The construction sector falls under the provisions of the services negotiations of the WTO, and stands to experience the effects of trade liberalisation. Construction firms stand to gain from this exposure to open competition.

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. (http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm) . The ten benefits of the WTO trading system where it greatly impacts the global operations Vinci Construction are:

1. The system helps promote peace

2. Disputes are handled constructively

3. Rules make life easier for all

4. Freer trade cuts the costs of living

5. It provides more choice of products and qualities

6. Trade raises incomes

7. Trade stimulates economic growth

8. The basic principles make life more efficient

9. Governments are shielded from lobbying

10. The system encourages good government

IMF - International Monetary Fund. The IMF promotes international monetary cooperation and exchange rate stability, facilitates the balanced growth of international trade, and provides resources to help members in balance of payments difficulties or to assist with poverty reduction.

Through its economic surveillance, the IMF keeps track of the economic health of its member countries, alerting them to risks on the horizon and providing policy advice. It also lends to countries in difficulty, and provides technical assistance and training to help countries improve economic management. This work is backed by IMF research and statistics (http://www.imf.org/external/about/overview.htm) .

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Vinci Construction under Vinci is currently pursuing a corporate strategy geared towards international growth. International organizations such as the WTO and IMF has influenced and directly affected the operations of Vinci on how it is able to push its corporate strategies to achieve its main goal as a leader in the construction industry. In its 2010 Profile, its strategic plan is to extend this Concession- Construction business model to reinforce the Group's resilience while strengthening their capacity to generate growth by intensifying recently launched efforts so as to:

optimise the Group's position in its local markets, to harvest growth opportunities;

invest in market segments and technological niches that offer above average development potential such as oil and gas infrastructure or energy services;

generate more long-term business, not only in concessions (development of operating infrastructure services) but also in contracting (facilities management, industrial and energy equipment maintenance, management of public lighting, road maintenance, etc.);

expand the Group's capability to design, manage and implement complex projects. We will pursue this strategy mainly through organic growth as our priority goal of controlling debt will limit acquisitions in cash. (http://publi.vinci.com/vinci/vinci-profile-2010.pdf)

1.3 Summarize the role and responsibilities of the EU membership on the work place

The advances in technology, workforce shifts and shortages, as well as increasing global competition concern construction industry leaders like Vinci and EU membership emphasizes the driving influence of governance and legislation, environmental pressures, global finance, new procurement methods, and cost of quality materials. There is a trend that is shaping as the roles and responsibilities of the EU membership in the construction market.

The European Commission's role and responsibility stands firmly at the heart of the European Union's policy-making process on the construction sector. Its role takes on three tasks which are to initiate the EU action, to act as a guardian of the treaties and to operate as manager and executor of the European Union's policies. The construction industry is a vial organization in Europe as a sector which provides building and infrastructure on which all economies depend on. In fact it is the largest sectoral employer and a major contributor to the Gross Capital Formation in Europe. The European Commission's activities are divided into two major subsectors which are the Construction Products and the Construction Activity.

As far as Construction products are concerned, the overall policy objective is to complete the Internal Market for such products mainly through the implementation of the Construction Products Directive, which will become the Construction Products Regulation in the near future. In practical terms, this is done through supporting the production of standards and European Technical Assessments and the development of the whole set of instruments foreseen for its implementation.

Concerning the Construction activity itself, the focus is on the competitiveness of the sector, in particular by accompanying and encouraging actions from industry and Member States, not least in the field of sustainable construction and by promoting actions and supporting the development of common tools facilitating for companies and other actors to better adapt to the changes in the sector.

Safety in construction and the free movement of services, engineering and construction services, are also an important policy priority, which is developed through the promotion of the Eurocodes and their implementation by the Member States. (http://ec.europa.eu/enterprise/sectors/construction/index_en.htm)

The biggest role and responsibility of the EU membership and the European Commission on Vinci Construction as a construction contracting is to provide regulations and policies on quality construction products and services, competitiveness of the construction sector, protection of the environment, energy efficiency, public procurement and health and safety at the workplace. These policies strongly influence the functioning of the construction sector and its outputs- products and services.

Task 2

DESIGNING INVESTIGATE THE RANGE AND EFFECTS OF ENVIRONMENTAL LEGISLATION, DIRECTIVES AND GUIDANCE AND THE PROCESS ORGANIZATIONS NEED TO ADOPT

Discuss the economics of adopting policies of environmental awareness

Adopting policies of environmental awareness impacts construction in many forms. These include selection of environmentally safe materials and products to be incorporated in their construction projects; planning and design work that can change landforms, vegetation, wildlife, drainage and the long-term impacts of projects such as silting of dams, their effects of sea products and other animals and the flooding and drying of regions. What Vinci Construction does while assembling their projects can adversely impact the environment and the measures they take to lessen these impacts. It is subjected to a variety of laws and regulations stipulating how their operations must be conducted to minimise environmental impacts. For example, permits that must be acquired before building is related to environmental protection and contract documents of a project may specify special conditions that the contractor must agree to certain stipulations as a condition of the issuance of permits. Therefore, contractors must perform in certain ways because of environmental laws. Whether the contractor's action is illegal or not, they have an ethical obligation to protect the environment while assembling their projects.

Summarize the actions that need to be taken by the organizations to maintain the environment

Environmental issues subject to monitoring and control by the construction contractor include the following.

Water drainage and runoff

As land is exposed and disturbed, soil erosion can increase markedly. Land patterns can be altered and some of the soil can reach waterways. Measures such as silt fences and dams may be required. Even if increased erosion does not occur, drainage patterns can be altered, with consequent negative impacts on adjacent lands. Temporary drainage ditches may be necessary to direct runoff in specified directions during construction operations.

Compacted soil from equipment operations

On level ground, the movement of trucks, lorries and other equipment can cause soil compaction, increasing its impermeability and causing rainwater to stand on the surface until it evaporates. Temporary drainage works and the shaping of travelled ways may be needed to carry rainwater away from the site.

Mud, dust and slurry from tyres

A further impact of rain and also of the use of water on the site is that the treads of tyres can collect large quantities of mud or slurry, carrying it to roadways and other areas off site.

Air pollution

Dust can be produced not only from vehicle tyres but also from any operation that involves soil, such as foundation excavation and the compaction of an embankment. Often the contractor must dedicate one or more water carriers to the task of wetting the soil surface to minimise the production of dust. Other sources of air pollution include mixing plants that produce asphalt; dust is produced from the drying of aggregate in the plant's rotary kiln. Bag houses may be required to collect the particulates and prevent them from being discharged into the atmosphere. Plants that crush aggregates also produce dust; a permit to operate such a plant may disallow its operation in dry or windy conditions.

Contamination from petroleum and other spills

Spills at petroleum storage and transfer sites can make their way to the groundwater or to watercourses. Dykes are used around storage areas to contain spills until they are removed. Liners are placed under transfer locations, with dykes around them, for the same purpose. In case of an accident with a piece of equipment on the worksite, there is potential for petroleum contamination. A petroleum spill contingency plan covers spills on land and in water. Regulations typically require a spill of any amount in water to be reported to authorities, whereas a spill above a certain volume on land must be reported. To contain and clean up spills in water, containment booms may be needed, followed by pumping to remove the petroleum product. Spills on land may require stockpiling the contaminated soil, followed by removal and disposal to a location where it is incinerated or otherwise treated

Discharge into waters

Often the contractor must discharge water into a watercourse or water body, either from a pipe or from a trench or channel. Laws often are strict regarding the composition of such water where it requires a contractor to secure a pollution discharge elimination system permit before discharging such pollutants.

Solid waste disposal

Despite all efforts to be efficient in the use of materials, any construction operation produces large quantities of solid waste in such forms as timber, metals, plastics, paper, stone and concrete, gypsum and rubber. In the past, much of this waste might have been burned on the site, but concerns for air pollution and CO2 emissions have led to requirements that solid waste be transported to landfills. Trucks transporting solid waste must have their beds covered while travelling public roadways and often the contractor must separate the various types of waste for disposal at different locations. In addition, care must be exercised to prevent hazardous waste from being carried to and buried in a municipal landfill.

Products of demolition and renovation

Special care must be taken when the contractor carries out demolition or renovation of existing structures and other facilities, as the process may expose undesirable materials and components, both expected and unanticipated.

Worker sanitation

During project operations, toilets and hand washing facilities must be emptied, serviced and cleaned regularly. Workers must be required to use these toilets, rather than the behind-the-tree alternatives, as the latter quickly become highly malodorous and attractive to various vermin.

Endangered species

The contract documents are likely to contain instructions to the contractor for actions to be taken when endangered species of flora and fauna are encountered. If these species are known to exist on or near the site - an eagle-nesting area, for example - the documents can contain detailed instructions. In case the contractor encounters such conditions unexpectedly, proper actions will still have to be taken to comply with applicable law and regulations. The mating and birthing seasons may preclude any construction operations at those times. Nesting areas may need to be protected. Employees must be forbidden to molest such species, whether the employees are on or off duty.

Wildlife protection

Even if wildlife is not classified as endangered, the contractor may have to comply with public regulations and contract provisions that restrict its operations. The restrictions may be for the protection of the wildlife or the protection of the project and its personnel from the wildlife. In the former category, annual migration patterns of animals may not be interrupted and construction work may be required to be suspended during those times. If fish use a portion of a stream for spawning during a certain season of the year, operations such as gravel extraction, pipeline laying and bridge building may not be allowed in the stream during those times.

Noise

There are many sources of noise on construction projects, including air compressors, pile driving operations, vehicles, demolition work and drilling and blasting. Rather than being subject to permits, noise concerns are usually governed by local ordinances, which specify certain maximum allowed decibel levels, or sound pressure levels, at the project property line. Typically, these allowable levels are higher during regular working hours and lower in the early morning, evening and night time, when nearby residents tend to be at home

Archaeology

Sometimes the excavation for a building or the earthmoving for a horizontal project will uncover historic artefacts, including buildings or parts thereof, utensils, firesites, perhaps grains and other products of agriculture and even human remains. The contract documents ought to provide for both (1) a process by which the contractor is to deal with this discovery and (2) a remedy for declaring a changed condition and relief for the contractor for the extra time and expense required.

Basing on the above requirements, Vinci Construction and with its strict compliance with construction legislations, Vinci has voluntarily undertaken to respect the ten principles of the Global Compact, a UN Initiative. Under the ten principles is the environmental protection.

Its commitments and principles and its corresponding initiatives in the recent years are summarized in the following areas:

To support precautionary approach to environmental challenges

-Systematisation of project environmental risks analyses and product risks

-Systematisation of project approaches based on life cycle analysis in the tender and design phases

-Integration of renewable energies in their activities and commercial offers

-Strengthen environmental reporting and the scope of its international application

To undertake initiatives to promote greater environmental responsibility

-Joint effort on energy savings and greenhouse gas emission reductions at fixed premises and worksites

-Creation of an "Ecodesign of built ensembles and infrastructure" professorship with ParisTech which is a five-year programme

To encourage the development and the dissemination of environmentally friendly technologies

-Research and Development programme and participative discussion on eco-communities and eco-cities

Specify the measures that exist to improve workplace health and safety practices.

To ensure quality , environmental and safety awareness, Vinci created the Innovation Awards Competitions , a core of their strategy and management. It aims to recognize and promote its employees original solutions in the projects such as materials, processes, techniques, equipments, management, sustainability, safety and dissemination. The purpose of the competition is to create a state of mind which allows the employees in the front line to progress in terms of quality, safety, lead times and respect for the environment.

In fact in one of the most recent Innovation Awards, Vinci Construction Grands Projets was awarded the Safety prize for which they used film shot on location at worksites to raise awareness among employees about risky workplace and risks associated with on-site behaviour. This won them the award because of the effectiveness and true innovation of the approach which was done globally and adapted to local needs. Promoting safety means being able to maintain one's livelihood and keeping business.

As a heavy construction company, this is a hazardous business and so Vinci has policies to improve workplace health and safety practices. It can be seen on the following Safety policies:

Safety First

A MATTER OF RESPONSIBILITY AND A PERSONAL COMMITMENT

Protecting women and men in our teams is our over-riding concern. Beyond this, it is also protecting our know-how, experience and skills.

SAFETY FIRST IS A COMPULSORY INVESTMENT

Being part and parcel of our management approach, it is a source of progress. It fosters high quality work. It is an essential factor in ensuring our employees' fulfilment and contributes to our clients' satisfaction.

OUR SITES, SAFE PLACES OF WORK

Everyone must be safe on our sites. This rule is based on the experience of men and women in the company, who have been convinced for a long time that a prevention approach is a key factor for the success of our projects.

Everyone knows how important this challenge is, talks about it with others and is committed, under any

circumstances, to choosing SAFETY FIRST.

Everyone, at his/her own level, by his/her duties or assignments, has a specific responsibility in terms

of prevention: management team, sector directors, project directors, engineers, superintendents, supervisors,etc., each one acts through his operations, fully aware of the facts, to ensure our sites are safe places of work.

In France and abroad, accidents and occupational illnesses in relation to our business must be eradicated.

Legislation as well as social welfare and safety at work systems vary between countries, making our prevention role more complicated.

Beyond the rules and regulations we apply, we endeavour to protect the health and safety of all the persons taking part in our projects: employees, sub-contractors, partners, visitors, etc.

The accident prevention/safety approach is led by VINCI "safety" co-ordination unit. This unit comprises all the leaders of the accident prevention and safety network throughout the Construction Gropu's various business lines all over the globe. The aim of this worldwide co-ordination unit is to facilitate the exchange of best practices, improve reliability and examine opportunities to make progress to achieving the company's goal of "zero accidents".

Task 3

EXPLORE THE SOCIO-CULTURAL, ETHICAL AND MORAL ISSUES THAT AFFECT ORGANIZATIONS IN THE CURRENT ECONOMIC ENVIRONMENT TO ESTABLISH AND IMPLEMENT GOOD PRACTICE

Analyze the responsibilities of organizations to improving workforce welfare

Specific plans to push its responsibility in ensuring Vinci Constructions employees work in an environment in which they are encouraged and empowered to realised their talents and skills in full potential can be achieved by constantly reviewing their responsibilities in improving workforce welfare. These are incorporated in their people policies which is an ongoing commitment to learning and development.

These are to reduce staff turnover by improving workforce stability, reviewing benefits offered to workforce, developing new sources of recruitment, deliver performance appraisal schemes to entire workforce, establish comprehensive learning and development of staff, and to continue to develop occupational health strategy to reduce absence from work.

The following are its commitments and principles which embodies the foundation of workforce welfare.

Human Rights

To support and respect, within the Group's sphere of influence, the protection of international law relation to human rights

-Renewal by the CEO of Vinci for the Group's commitment to respecting the Universal Declaration of Human Rights

-Initiative support for various community, health and educational projects

-Continuation of AIDs prevention programmes

2. To ensure that the Group companies do not become complicit in human rights abuses

Labour Standards

To uphold freedom of association and the effective recognition of the rights to collective bargaining

-Deployment of prevention programmes at the international level

-Deployment of the integration of social criteria for the selection of suppliers and sub-contractors in framework contracts

2. To eliminate all forms of forced and compulsory labour

-Creation of a prevention reporting method common to all Group companies and temporary employment agencies

3. To uphold the effective abolition of child labour

-Performance of a diversity audit for the second consecutive year in 40 subsidiaries

-Creation of a body of internal controls

4. To eliminate discrimination in respect of employment and occupation

Anti-corruption

To work against all forms of corruption, including extortion and briber

-Further reinforcement of internal controls

Review approaches to the management of diversity

The decentralised human resources management policy of Vinci Construction aims to develop and promote skills, guarantee equal opportunities during the recruitment process and in the workplace, manage diversity, provide safe working conditions and foster effective and appropriate dialogue. Employee renewal is also an important issue for the Group given the demographic structure and rapid business growth. The forward management of employment and skills policy is designed to aid the performance of all employees of Vinci Construction. Their approach to the management of diversity is reflected on their commitment to civic responsibility.

• Ensure safety and security on our worksites

• Enhance our personnel's sets

• Promote professional diversity

• Encourage more women candidacies

• Ensure effective integration of employees with disabilities

• Integrate, train and promote employees from different ethnic backgrounds

• Support knowledge and skill transfer from senior to more junior personnel

• Encourage civic initiatives

Vinci Construction increasingly growing globally. It aims move towards European recruitment by taking advantage of new ways. It has the "incubator" paths which enables young graduates to access positions of responsibility in various European countries. The principle is to recruit young engineers in countries other than their own and to provide them with the opportunity of acquiring in-depth knowledge of a second European culture and fluency in another language. By the end of 2008, the European incubator has 149 employees- 21% of whom are women- with an average of 30 from 20 countries.

Workforce by category, sex and business line of Vinci's total workforce compromised 15% management, 31% office, technical and supervisory staff and 54% manual labour. Women accounted or 13% of the workforce. Women account for 15% of management, 28% office, technical and supervisory staff and4% of manual labour employees.

On hiring and integrating disabled employees, Vinci's general policy is based on a triple approach: redeployment of persons suffering a disability of professional or personal origin, hiring disabled employees at equivalent skill levels; contracting from companies mainly employing disabled persons.

Compare organizational approaches to ensuring positive policies of workforce diversity

With women in the UK construction industry constituting just thirteen per cent of the workforce and black and Asian workers numbering less that two per cent, despite representing more than six per cent of the working population, diversity is a problem that the construction industry needs to tackle directly.

Diversity management is presented as an opportunity for the construction industries to ensure positive polices of workforce diversity. The traditional topics of gender and racial discrimination contribute to a wide range of diversity issues facing the construction industry, including sexual orientation, disability and the work-life balance.

There are a variety of practical diagnostic tools, and techniques to successfully manage diversity in construction and the information to adhere to the law. Vinci is committed to Equal Opportunities policy which encourages job applications from all sectors of the community. This is proven by the diverse range of people working with them. The Group monitors Equal Opportunities policy using a number of Key Performance Indicator reports covering age, ethnicity and gender. Their management are committed to the policy and regular training is provided to ensure that the business is kept up-to-date. HR Managers and specialists take responsibility for Equal Opportunities across each of their areas.

Vinci was involved in several initiatives in 2008 and one of which was the campaign to 'Get Women into Construction'. This was part of their approach to equality, diversity and inclusions. To prove this, an example can be drawn out from the Stradfrom who provided several young women with experience of working in both the Cardiff office and on site at the €6.8 Million Global Reach, Celtic Gateway office project in Cardiff Bay.