INTEGRATED ANNUAL REPORT 2011 GRI RESPONSES  

SO1- SO10

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

    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 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. 

    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.

    Financial contributions are made through centrally (Barloworld) charged fees. In addition, business units and individuals are encouraged to contribute time, skills, resources and funds to 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. The group seeks to provide leadership in society by encouraging its leaders to contribute to development challenges, and 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 than 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 R64 million in such initiatives over the past five years.

    Through the Barloworld Trust, the group’s main focus is 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, facilitating the transition of students from disadvantaged circumstances to tertiary education.

    In addressing the social and development needs of society’s most vulnerable citizens, Barloworld favours a community-centred approach, endeavouring through support for its NGO and empowerment partners to provide or facilitate access to essential social services and empower vulnerable children, families at risk, aged and disabled people in their communities. Efforts continue to bolster the sustainability of these initiatives through skills development and commercially viable enterprise development.

    The Barloworld Education Trust (BET) is one of four trusts established when Barloworld concluded its major empowerment transaction in South Africa. This trust facilitates a broad-based black economic empowerment through education and is funded by dividends from Barloworld.

    Bursaries have been awarded to 14 black students for the 2011 academic year, who are studying engineering, logistics, quantity surveying, 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 2012 academic year is currently underway with identified areas of study being engineering and supply chain management.

    Barloworld Siyakhula, the group’s enterprise development vehicle, was launched in October 2007 to promote BBBEE 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 BBBEE strategies for preferential procurement, enterprise development and corporate social investment.

    Siyakhula has invested in seven companies and works closely with them to ensure their success which includes strengthening their own BBBEE scorecards to enhance their competitive advantage. Four enterprises have reached a level 1 with valued-added status. One enterprise is at level 2 and the remainder have achieved level 3.

    Siyakhula was founded with initial capital of R20 million. Committed funds at present are some R48 million.

    Current initiatives are:

    Avis Van Rental Pretoria
    Avis Van Rental Western Cape
    Moe Logistics, a driver-owner scheme covering 198 drivers
    Nathi Africa, a materials handling business in South African ports
    Machas Electrical, providers of electrical installation and maintenance services.
    20/20 insight
    Rishi Rahaman Consulting
    Powertel Engineers, a specialised electrical contracting company that concentrates on providing turnkey solutions for the power and telecommunications industries.

    Around 540 jobs are provided in these businesses.

     

  • SO 2 Percentage and total number of business units analysed 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. View policy

    Further, in terms of the group’s ethics and compliance programme, a risk analysis of areas and functions that may be vulnerable to bribery and corruption is being conducted and is underway in all operations.

     

  • SO 3 Percentage of employees trained in organisation'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 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.

    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 sanctions is implemented throughout the group and all employees are expected to comply with it. View policy

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

     

  • SO 4 Actions taken in response to incidents of corruption.

    There were no reported incidences of corruption by Barloworld employees recorded during the year.

     

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

    Integrated annual report 2011 - Stakeholder engagement
    Integrated annual report 2011 - Limiting our environmental footprint

    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. View institutional memberships

    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 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.

     

  • 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 behavior, 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 locations 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.