Society SO1-SO10

• SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programmes.

  Integrated Report 2013:

  Engaging with our stakeholders - Civil society and local communities Empowerment and transformation - Barloworld Siyakhula Sustainable development - Making a difference by empowering communities

  Corporate governance report 2013:

  KING III Chapter 2 - 2.4

  Local engagement is the responsibility of each operation but development programmes are co-ordinated at group level through our corporate social investment and enterprise 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 business-related social or environmental impact assessments. 

  In terms of the group’s Value Based Management approach, communities in which business units operate are stakeholders and, as such, they are mindful of the value they create for their 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 the work of local charities, schools and similar institutions/structures.

  Barloworld is committed to responsible corporate citizenship, including being responsive to the social welfare, socio-economic and enterprise development needs of the communities in which it does business, 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 large 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.

  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 in South Africa, as well as through business units’ direct CSI initiatives, based on a percentage of profits. In addition, individuals are encouraged to contribute time, skills and resources to local communities.

  Through its social investment initiatives through the Barloworld Trust, Barloworld has 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 R69 million in such initiatives over the past five years, of which R41 million was accredited socio-economic development (SED) spend in terms of the South African B-BBEE codes.

  The Barloworld Trust is mainly focussed on improving learner outcomes and facilitating access to education in South Africa. In 2013, the Trust has found most promising its work with a wide range of stakeholders in the public and private sectors and a team of seasoned educators intent on strengthening schooling by supporting critical components of, and levers for, education system improvement.  This has taken place through the Programme to Improve Learner Outcomes (PILO), its biggest investment which will be in strong, empowered frontline management (school and district).   Support will be provided to improve key practices and stakeholders will receive targeted technical support to unblock barriers that prevent critical resources, such as textbooks and teachers, from reaching classes.  PILO is intended to facilitate a full set of system improvements by providing provinces and districts with strategic change management capacity. 

  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 21 black students for the 2013 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 many instances, residence, food and travel costs. The process of awarding bursaries for the 2014 academic year is currently underway with identified areas of study being engineering (industrial and mechanical), supply chain management and computer sciences.

  Aside from the group’s sale of its Belgium operation, 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 (Pty) Limited is the enterprise development initiative of Barloworld Limited, a focused distribution company with an offering that includes integrated product support and solutions.

  Barloworld Siyakhula was established to foster sustainable Broad-Based Black Economic Empowerment (B-BBEE) through financial and non-financial support primarily to small and medium suppliers, contractors and enterprises within the Barloworld value chain. The fund will also explore and consider Greenfield business opportunities that may exist to establish new business ventures in association with black entrepreneurs.

  Barloworld believes in sustainable economic growth and has committed to promoting and enhancing B-BBEE in its business sectors through the creation and development of small and medium enterprises (SMEs).

  For this reason, and with the objective of empowering black entrepreneurs and creating sustainable job opportunities for the marginalised and unemployed people, Barloworld Siyakhula was founded with an initial capital of R20 million.  Committed accumulated funds at present are approximately R103 million. This entails investment in black empowered and black-owned SMEs and the creation of joint ventures, aligning itself with Barloworld’s established BEE strategies for preferential procurement, enterprise development and corporate social investment.

  Barloworld Siyakhula’s primary objectives are to:

  •	bridge the socio-economic divide, and
  •	contribute to the process of transformation, job creation and skills transfer through sustainable partnerships.

  Siyakhula has supported 23 companies and works closely with them to ensure that they are competitive and sustainable.  Many of the enterprises have reached a level 1 B-BBEE status.

  Some of the beneficiaries included:

  •	Afrijade, a business to consumer transport company
  •	Avis Van Rental Pretoria franchise offers customers light and commercial vehicle rental
  •	Avis Van Rental Western Cape franchise offers customers light and commercial vehicle rentals
  •	Karabo Management Services, a clothing company that specialises in a range of industrial garments
  •	Moe & Company owner driver scheme
  •	Moipone Group of companies, that provides services including leasing and rental of fleets
  •	Mind Interactive, a web development company
  •	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
  •	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 600 jobs are provided in these businesses.

  
  

• SO2 Percentage and total number of business units analysed for risks related to corruption.

  Integrated Report 2013:

  Chairman's letter Integrated customer solutions - Equipment and Handling - Supporting responsible business in Angola Social, ethics and transformation committee report - Purpose of the committee

  Corporate governance report 2013:

  KING III Chapter 2 - 2.5

  In addition to its Code of Ethics and Barloworld Worldwide Code of Conduct, 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 a specific bribery and corruption risk assessment process.

  The group’s internal audit function, whilst not responsible for the identification of fraud and/or corruption, considers potential indicators of corruption and fraud in the planning of their reviews.

  All divisions have conducted a high level risk assessment of ethics and compliance risks. All business units that are owned through the group’s UK investment company have also conducted an in-depth assessment of bribery and corruption risks.

  Equipment southern African operations have carried out, multidimensional self-assessments of ethics and compliance risks. These have been performed at country specific levels, for Botswana, Malawi, Mozambique, Namibia and Zambia, and at a regional level for South Africa.

  For more detail also see policies.

  
  

• SO3 Percentage of employees trained in organisation's anti-corruption policies and procedures.

  Integrated Report 2013:

  Chairman's letter Integrated customer solutions - Equipment and Handling - Supporting responsible business in Angola Social, ethics and transformation committee report - Purpose of the committee

  Corporate governance report 2013:

  KING III Chapter 2 - 2.5

  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. New employees participate in induction training and orientation. 

  There is an ongoing process conducted at the divisions in which a risk assessment of all ethics matters (as defined in the Barloworld Ethics and Compliance programme) is conducted in order to action any perceived risk areas.

  In addition to the group’s Code of Ethics, Worldwide Code of Conduct and anti-fraud policy, 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.

  For more detail also see policies

  Communication and training of the group’s Worldwide Code of Conduct and Code of Ethics has been conducted at all divisions and business units

  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.

  Employees are advised through Letters of Appointment, Induction training and the Barloworld Worldwide Code of Conduct of the severe consequences of unacceptable behaviour (including corruption). Certain levels of employees also attended training courses on this subject. During the year 6 725 employees were covered by these processes and training – 5 925 within South Africa and 800 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. Since the 2012 reporting period, a total of 14 682 employees have been covered. This training is also incorporated in various programmes which include our Induction and orientation, as well as diversity training.

  A key focus in the current year has been on reviewing the procurement procedures for conducting due diligence reviews on third party service providers and suppliers, which is largely aimed at addressing anti-bribery and corruption. This has included various workshops and discussions at divisional level.

  
  

• SO4 Actions taken in response to incidents of corruption.

   Barloworld has a process for reporting any allegations of unethical behaviour and this would include allegations of corruption. The Audit Committee has oversight of this reporting process that includes the Barloworld Ethics Line. Any proven cases of corruption would constitute a criminal act which would be 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, where appropriate.

  
  

• SO5 Public policy positions and participation in public policy development and lobbying.

  Integrated Report 2013:

  Engaging with our stakeholders Engaging with our stakeholders - Stakeholder groups engaged and the key issues addressed in 2013 Sustainable development - The Energy Efficiency Pledge Sustainable development - Identified internal material issues

  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.

  A full list of institutional memberships is available on the Barloworld website.

  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.

  
  

• SO6 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.

  
  

• SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes.

  Corporate governance report 2013:

  KING III Chapter 6 - Compliance with laws, codes, rules and standards

  None

  
  

• SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

  Corporate governance report 2013:

  KING III Chapter 6 - Compliance with laws, codes, rules and standards

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

  
  

• SO9 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. 

  
  

• SO10 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 .