INTEGRATED ANNUAL REPORT 2011 GRI RESPONSES  

Stakeholder engagement

In terms of value-based management, the company is managed to the benefit of its stakeholders
Stakeholder perspectives underpin the group’s value creation plans
Focus on creating shared value with stakeholders underscores sustainability of the group
Extensive engagement with a wide range of stakeholders

In terms of its value-based management philosophy, Barloworld is managed to the benefit of all its stakeholders. We recognise that people filter information from and about us, invest in us, choose to work for us, and take decisions to buy our products and services based on our reputation. In the current world order, accountability, ethical, community and environmental issues are of primary importance. There is increasing scrutiny and activism by stakeholders, as well as ethical investing. Expectations of responsible behaviour start with factors driven by core competencies. These include strong ethical leadership with clear vision and direction, quality products and services, reliable support services, responsible custodianship of the environment and responsiveness to the needs of local communities.

In Barloworld, accountability for stakeholder engagement is centred on the operational management and functional structures in the group. Value propositions are created from information gathered in a wide range of interactions with stakeholders, who are engaged in a variety of ways on a range of issues, and which influence the group’s strategic direction. Strategic stakeholder management is aimed at establishing open, interactive, mutually beneficial relationships which are at the heart of our business strategy and communications.

The group appreciates the role of social media in stakeholder engagement and strives to implement structures and systems, as well as allocate resources, in a way that utilises the medium to the group’s and its customers’ advantage.

The group’s stakeholder policy is available here to download (pdf - 48kb).

Barloworld Logistics engages stakeholders
The ‘supplychainforesight’ research survey tracks trends and focus areas in South Africa’s supply chains and has been conducted under the auspices of Barloworld Logistics since 2002. This year’s ninth edition of the report goes by the title: South Africa Inc.: Growth, Competitiveness and the Africa Question.

This year’s research theme looks at one of the burning questions facing most businesses, no matter in which industry we might be focused, and that is how to use supply chain to remain profitable and competitive in a world stricken by economic slowdown, rising unemployment and high levels of debt. In South Africa, these efforts to deploy the supply chain as an enabler of growth have been hampered by labour costs, bureaucracy, infrastructure shortcomings, and other competitive challenges.

Stakeholder matrix

Stakeholder and nature of relationship Nature of engagement Material issues Actions
Shareholders and providers of capital

Central to sourcing and securing capital; Compliance with all legal communication requirements

Bi-annual presentations of results;
Annual general meeting;
Annual reporting;
Investor conferences and presentations;
Investor site visits; Ad hoc media releases (see also Governance section on page 121)
Competitive return on investment;
Strategic direction;
Market perspectives;
Value creation performance; Business unit performance; Strategy and identified growth opportunities;
Group’s legitimacy; Sound governance structures
Communicate early in an honest and transparent manner; Strategic issues are considered and appropriately addressed through group structures;
Executive resource in place to manage investor relations
Customers

Understanding customer sentiment; Understanding customer requirements; Business sustainability;
Long-term relationships;
Mutual benefit;
Identifying potential risks to, and opportunities for, the business

Numerous individual and collective customer engagements/ interventions take place during the year;
Regular visits by senior executives;
Open days and site visits; Anonymous surveys;
Entrenched in ISO 9001 standard;
Customer satisfaction surveys
Value of product, service and solution provided;
Ability to enhance customers’ value creation activity;
Service level agreements
Delivery of required products, services and customer solutions;
Respect for rights of consumers; Provide information that is honest and relevant; Ongoing customer contact and interaction
Employees and their representatives

Sustainable value creation for and by employees;
Employer of choice

Individual meetings; Structured team forums; Individual and team performance discussions; Intellectual capital reviews; Team briefings; In South Africa: work skills and employment equity forums are established; Anonymous individual perception monitoring (IPM) surveys, conducted at least once every two years throughout the organisation, examine employee perceptions on a range of issues;
Meeting with employee representatives including trade unions in terms of recognition and industry/ national agreements
Strategy, company performance and results;
Individual conditions of employment;
Security of employment;
Health and safety issues; Career path and development;
In South Africa, work-skills plans and progress on employment equity
Alignment with leadership philosophy;
Continual review of employee value proposition to ensure employee attraction and retention, including:

Conducive/flexible work environment
Responsible HR management
Equitable remuneration system
Open and flexible communication

Investment in employee development;
Sustainable organisational restructuring;
Awareness of strategic objectives and individual roles
Principals and suppliers

Delivery of competitive integrated customer solutions;
Mutual benefit;
Long-term relationships;
Governance framework;
Strategic frameworks

Dealer, licensee and dealer council meetings;
Principals’ conferences;
Formal reporting and information sharing;
Ongoing informal contact;
Product launches;
Supply chain management
Product issues and innovation; Market positioning;
Financial and other performance reviews;
Customer issues and satisfaction;
Sustainable development matters;
Territory issues and expansions; Market information;
Supply chain empowerment
Successful relationships with mutual value maximised; Leading products and services; Retained distribution rights; Expanded distribution areas/regions/ territories; Mitigation of an identified key risk; Supply chain optimisation; Terms and conditions of relationship updated and maintained;
Expanded preferential procurement and empowerment
Public sector

Government institutions, departments and training authorities;
Municipal and local authorities; Diplomatic corps

Consultation on emerging policy frameworks;
Compliance issues;
Progress on employment equity plans;
Fiscal and local issues such as building plans;
Training programmes and rebates;
Technical and financial assistance for socio-economic development (SED)
Provision of critical public assets and a supportive environment; Socio-economic development in South Africa;
Emerging policy and regulations on climate change response and carbon taxes
Social compacts and creation of shared value;
Collaboration on achievement of social and economic development objectives; Consultation on emerging policy
Civil society and local communities

Industry associations and organised business organisations;
Non-governmental organisations; Beneficiaries of the company’s socio-economic (SED) and enterprise development (ED) initiatives; Guidance and global best practice

Relevant industry issues, industry lobbying and responses to proposed legislation or regulation;
Consultation with, and evaluation of, educational, environmental and welfare organisations
Relevant industry issues, industry lobbying and responses to proposed legislation or regulation;
Development initiatives evaluated for leadership, technical and financial support; Enterprise development opportunities identified
Relevant industry responses submitted;
Social compacts and creation of shared value;
Appropriate initiatives supported through company’s ED and SED initiatives;
Appropriate executive and leadership interventions implemented;
Climate change response interventions including COP 17 participation
Empowerment partners

Mutual value creation/ benefit

Ad hoc meetings; Structured interventions;
Operational meetings; Value-add opportunities
Operational performance and share price;
Respective contributions to enhance the relationship
Communicate timeously and effectively on material issues; Ensure two-way communication to strengthen relationships and establish mutual interests and objectives;
Enhanced company transformation;
Enhanced community service group partners’ delivery;
Act on stakeholder transformation views and concerns
Media

Open and co-operative relationship

Annual media day;
Operational meetings and site visits;
Media releases
Thought leadership; Commentary on industry Annual review of media plan; Appropriate exposure in media; Fair reflection of company;
Good relationships;
Managed positioning of the Barloworld brand

The challenge of leadership
The greatest challenge of our time globally is the challenge of leadership. Strong, responsible leadership is capable of encouraging ordinary people to produce extraordinary results. The leadership challenge facing leaders in all spheres of society is how they can mobilise others to be passionate about achieving extraordinary things. It is about the practices that they adopt to transform values into actions, visions into realities, obstacles into opportunities, separation into togetherness and risk into rewards. It is about leadership that creates the climate in which people turn challenging opportunities into remarkable success.

The Africa Leadership Initiative (ALI) was launched in South Africa by Barloworld executive director Isaac Shongwe nearly a decade ago to spread the ideals and practice of ethical leadership. Since its inception, it has brought together leaders from government, business, civil society, the sciences, the arts and other walks of life. In partnership with the Aspen Institute, in the US, it has spread to Nigeria, India, Asia, South America and other parts of the globe, with the objective of instilling a form of servant leadership among those who can make an impact on society.

Each year in South Africa alone 20 fellows are chosen and undergo four week-long seminars over two years. The seminars are intense examinations of what it means to live a good life, what the good society entails, what leadership means and how, through emulation of some of the great leadership strategies, including Values Based Leadership, societies have built prosperity and ethical government, leading to the prosperity of nations rather than of just a small, elite, powerful group.

Every generation confronts its unique set of challenges. Societies are in need of serious leadership from government, business and civil society right now to take the world to prosperity and peace. In the final analysis, leadership is everyone’s business. For these reasons, Barloworld is a staunch supporter of the objectives of ALI.