Society

  • SO 1 Percentage of operations with implemented local community engagement, impact assessments, and development programs

    Integrated Report 2012 - Stakeholder engagement
    Integrated Report 2012 - Barloworld Siyakhula

    Integrated Report 2012 - Corporate social investment

    Local engagement is the responsibility of each operation but development programmes are co-ordinated at group level through our enterprise development and socio-economic development programmes.

    All (100%) operations engage their local communities appropriately. Given the nature of the group’s operations and urban locations, no single operation has a significant impact on local communities hence there is no requirement for in-depth social or environmental impact assessments. 

    In terms of the value-based management approach, communities in which business units operate are stakeholders and as such, business units are mindful of the value they create for these communities.

    Aspects of this value-creation include providing employment, paying rates and taxes, raising the profile of the community and direct assistance through financial and other contributions. Principally, engagement is through local councils but, in many instances, community structures are engaged and employees are encouraged to participate in charities, schools and similar institutions/structures.

    Efforts are made to understand social and socio-economic development needs and objectives and financial contributions are made to appropriate initiatives centrally through the Barloworld Trust and directly through business units, based on a percentage of profits. In addition, individuals are encouraged to contribute time, skills and resources to local communities.

    Barloworld is committed to responsible corporate citizenship, including careful custodianship of the environment and efforts to address climate change. The group approaches these objectives from a moral and commercial perspective, founded on sound business acumen.

    In the course of its business, through extensive interactions, Barloworld engages with a wide range of stakeholders to understand their interests and concerns and to construct its value propositions based in part on stakeholder input. The group seeks to provide leadership in society by encouraging its leaders to contribute to development challenges, to act as role models, and by helping to create the responsible leaders of the future.

    Through our social investment initiatives, we have over many years sought strategic partnerships, synergies and innovations in public-service delivery that can be taken to scale by the public sector.

    Through grants, networking, referrals and insistence on sound management practices, responsible governance and accountability, Barloworld endeavours to build capacity and sustainability in its development partners, where necessary. The group has invested R65 million in such initiatives over the past five years.

    The Barloworld Trust is mainly focussed on improving standards and facilitating access to education in South Africa. In the current milieu, the Trust has found value in working with schools that provide centres of excellence and reach out to underperforming schools in their vicinities to strengthen management and upgrade the quality of teaching and learning, and facilitating the transition of students from disadvantaged circumstances to tertiary education.

    The Barloworld Education Trust (BET) is one of four trusts established when Barloworld concluded its major empowerment transaction in South Africa. This trust offers bursaries to black students studying for specified tertiary qualifications, who are drawn into the group’s skills pipeline, and is funded by dividends from Barloworld.

    Bursaries have been awarded to 16 black students for the 2012 academic year, who are studying engineering, logistics management, and information technology at South African institutions. The bursaries are annual allocations and are reviewed based on the bursar’s academic results and vacation work reports. New applications are considered in addition to existing bursary recipients. Barloworld dividends received are utilised to fund studies which include tuition, prescribed books, registration and examination fees, and in some instances, residence costs. The process of awarding bursaries for the 2013 academic year is currently underway with identified areas of study being engineering (industrial, mechanical and electrical), supply chain management and computer sciences.

    Aside from the group’s sale of its US and UK Handling operations, in terms of which the employees were mostly taken over by the purchaser and operations maintained, there have not been any significant exits of any community.

    Barloworld Siyakhula, the group’s enterprise development vehicle, was launched in October 2007 to promote B-BBEE through financial and non-financial support for small and medium-sized suppliers, contractors and enterprises in Barloworld’s value chain.

    Siyakhula invests in black-empowered and black-owned small and medium sized Enterprises (SMEs) to create joint ventures that effectively allow them to align themselves with Barloworld’s B-BBEE strategies for preferential procurement, enterprise development and corporate social investment.

    Siyakhula has supported 19 companies and works closely with some of them to ensure their success which includes strengthening their own B-BBEE scorecards to enhance their competitive advantage. Five enterprises have reached a level 1 with valued-added status and the remainder have achieved level 3.

    Siyakhula was founded with initial capital of R20 million. Committed funds at present are some R56 million.

    Beneficiaries included:

    Avis Van Rental Pretoria
    Avis Van Rental Western Cape
    Moe & Company owner driver scheme
    Nathi Africa, a materials handling business in South African ports
    Machas Electrical, providers of electrical installation and maintenance services
    Karabo Mashungane Consultants, and consulting company in enterprise development
    Rishi Rahaman Consulting, a legal practice
    Powertel Engineers, a specialised electrical contracting company that concentrates on providing turnkey solutions for the power and telecommunications industries
    Lettam Building & Civils, a construction company
    Omega Boerdery Deelneemings Trust – a farming community Co-Operative
    VDE Partners – a business consulting company
    Solar Spectrum – a construction company
    Renjohn – an engineering company

    Around 540 jobs are provided in these businesses.

  • SO 2 Percentage and total number of business units analyzed for risks related to corruption

    In addition to its code of ethics and Barloworld worldwide code of conduct, all the group’s operations are subject to its policy on ‘dealing with: public officials, agents, distributors, intermediaries, trade restrictions, export controls and sanctions’. Barloworld has also reviewed and revised its Group Gifts and Hospitality policy to take into account higher expected global standards for preventing bribery and this has been communicated and is now applied throughout the group. Where applicable, this is also addressed as part of the group’s entrenched risk assessment process which is undertaken by all (100%) operations in the group.

    Further, in terms of the group’s ethics and compliance programme, an ethics and compliance risk analysis has been conducted in all divisions to assess areas and functions of the business that may be vulnerable to bribery and corruption. Action plans have been developed and are monitored bi-annually by the Group Risk and Sustainability Committee.


  • SO 3 Percentage of employees trained in organization's anti-corruption policies and procedures

    Induction and other staff training programmes address expected behaviour in terms of the company’s ethics, codes, policies and procedures. Ongoing communication through employee handbooks, letters of appointment, management briefings and structured team forum meetings reinforce our commitment to our values and expected behaviour. All (100%) new employees participate in induction training and orientation. 

    Structured sessions with group and divisional executives to review all business conduct and ensure compliance with legislation, company ethics, codes and policies are ongoing. 

    In addition to the group’s code of ethics, worldwide code of conduct and anti-fraud policy, the Barloworld group policy on ‘dealing with public officials, agents, distributors, intermediaries, trade restrictions, export controls and sanctionsis implemented throughout the group and all employees are expected to comply with it. Barloworld has also reviewed and revised its Group Gifts and Hospitality policy to take into account higher expected global standards for preventing bribery and this has been communicated and is now applied throughout the Group.

    All corporate office employees are trained in the group’s code of conduct, code of ethics, and gifts policy.

    The group’s ethics and compliance programme requires this training for all employees as appropriate to their functions in the business. This aspect is being coordinated by the ethics and compliance managers in each of the Barloworld divisions in conjunction with the divisional Human Resources departments.

    7 957 (41.3%) employees were trained in the organisation’s anti-corruption policies and procedures in the reporting period – 5 590 (29.0%) within South Africa and 2 367 (12.3%) outside South Africa. Management teams in all operations across the group participated in related assessment and training as part of the group ethics and compliance programme rollout.


  • SO 4 Actions taken in response to incidents of corruption

    There were no reported incidences of corruption by Barloworld employees recorded during the year. This would be a criminal act and dealt with accordingly in terms of the group‘s disciplinary procedures. After due process the appropriate sanction would be applied which could include dismissal. Criminal charges would also be laid.


  • SO 5 Public policy positions and participation in public policy development and lobbying

    Integrated Report 2012 - Stakeholder engagement
    Integrated Report 2012 - Stakeholder engagement - Public sector

    Integrated Report 2012 - Environment: Identified material aspects - Barloworld signs energy efficiency pledge in South Africa
    Integrated Report 2012 - Environment: Identified material aspects - Targets

    We engage a wide range of stakeholders including government institutions and departments, municipal and local authorities, industry organisations, non-government organisations and the communities they serve.

    The group is also a member of organisations including Business Leadership South Africa and the South African Chambers of Commerce and Industry.

    Various group operations across the world belong to organised business associations and advocacy groups in the countries and regions in which they operate (refer to our website for a list of organisational memberships).

    By participating in these initiatives, Barloworld contributes to wider society, shares knowledge, raises concerns and influences policy.

    In South Africa, the group participates in a range of forums on energy efficiency, climate change and a transition to a low carbon future. The group’s position on these matters is included in responses by representative organisations.

    In principle, Barloworld supports initiatives to improve energy efficiency and promote the use of renewable energy sources and reduce harmful emissions. However we believe such issues must be addressed in the context of national, industry and company competitiveness, with an equitable dispensation being reached for developing economies. In South Africa, these initiatives should also support national objectives which include job creation. Barloworld also believes there should be standardisation and alignment in the various required reporting regimes.

    The group does not endorse or support political parties.


  • SO 6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country

    Barloworld does not make donations to political parties.


  • SO 7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes

    None.


  • SO 8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

    There were no significant fines or non-monetary sanctions for non-compliance with laws and regulations during the year.


  • SO 9 Operations with significant potential or actual negative impacts on local communities

    Given the nature, urban location and scale of the group’s operations, none have significant potential or actual negative impacts on local communities. 


  • SO 10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities

    None of the company’s operations have significant potential or actual negative impacts on local communities, so mitigation measures are not required. Where local stakeholders have complaints about the group’s activities, these are addressed immediately. The group endeavours to strengthen the positive impacts it has through a range of programmes described under EC8 and SO1 above.

 

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