Stakeholder engagement: 102-40 to 102-44

  • 102-40: List of stakeholder groups

    The reporting organization shall report the following information:
    a. A list of stakeholder groups engaged by the organization.
    Integrated Report:
    Annual General Meeting:

    Fundamental to creating shared value is defining a common purpose and addressing complex issues of mutual benefit through stakeholder engagement. Barloworld's sustainability and longevity over time has long been steeped in the practice of engagement and relationship building as part of management activity, supported by a group stakeholder engagement policy and operational guidelines. This approach ensures that our key stakeholders' concerns and aspirations are understood and considered across all our business units and operating locations.

    To achieve this, stakeholder mapping is done at corporate and business unit level as a first step to appropriately respond to and validate Barloworld's understanding of stakeholders' material issues. While stakeholder engagement takes place at group, corporate and divisional levels, with a particular focus on engaging stakeholders that have the greatest impact on our various business activities, a group policy with operational guidelines and a reporting framework is in place. This approach helps identify important commercial and relationship issues and the formulation of workable solutions which are often industry specific.

    Our stakeholder engagement policy is presented bi–annually to the executives and board for review and adoption:

    • The group stakeholder engagement champions' forum is mandated by the executive and board to implement the policy and guidelines across the company through representatives selected by divisional chief executive officers (CEOs)
    • The four annual group stakeholder engagement champions forum meetings address a range of issues
    • The internal audit function reviews compliance with group policy and guidelines, and adherence to the recommendations of King IV across the entire company functions and divisions.

    Enhancing the success of our customers and suppliers, and reducing the depletion of natural resources is vital to our business as well as the economic and social distress of the communities in which we operate are key influences on our long-term success.

    In our engagements with stakeholders, shared value prompts us to think differently about our approach to social and environmental issues. The result is a strategy focused on developing the future market while also strengthening economies, the marketplace, communities, and corporate success. Dialogue with stakeholders assists the group to meet the needs of society, such as the provision of products with lower environmental impacts, for instance, to gain operating efficiencies and to anticipate risks and opportunities in the broader environment.

    The group appreciates the role of digital media platforms in stakeholder engagement and strives to implement structures and systems, as well as allocate resources, in a way that uses the medium to the group and its customers' advantage.

    The group's stakeholder policy is available at www.barloworld.com.

    GROUP STAKEHOLDER MAP

      Stakeholder   Nature of  relationship     Nature of  engagement     Material issues  raised     Actions/Outcomes  
      Shareholders and providers of capital  
    • Central to:
    • Sourcing and securing of capital
    • Election of directors
    • Endorsement of company’s strategic direction, approaches to corporate governance and executive compensation
       
    • Compliance with all legal communication requirements
    • Bi-annual results presentations
    • Annual general meetings
    • Annual reporting
    • Investor conferences and presentations
    • Focused surveys
    • Investor site visits
    • Ad hoc media releases
       
    • Group strategy
    • Group performance and sustained returns
    • Sustainability and ethics
    • Risk management
    • Management depth and leadership
    • Innovation
    • Allocation of capital to businesses with high returns
    • Cash generation
    • Fair executive and non-executive directors' emoluments
       
    • Focus on profitability, return on capital, asset efficiency and scale of business
    • Executive resources and strategy in place to manage investor relations
    • Performance against reported financial metrics monitored and reported
    • Business models, strategic direction and approach to long-term value creation articulated
    • Strategic alignment with identified growth industries and regions
    • Independent remuneration advisors retained
    • Comprehensive remuneration report disclosed annually and tabled at annual general meeting
    • Remuneration committee chaired by independent non-executive director
     
      Customers  
    • Implementing key customer strategies
    • Understanding customers’ requirements
    • Business sustainability
    • Long-term relationships
    • Mutual benefit
    • Identifying potential risks and opportunities for the business
       
    • A wide range of individual and collective customer engagements and interventions are ongoing
    • Regular visits by senior executives
    • Open days and site visits
    • Anonymous surveys
    • Entrenched in ISO 9001 standard
    • Customers satisfaction surveys
       
    • Innovation and integrated solutions that meet customer needs
    • Operational excellence to improve customer experience
    • Improved customer service and value for money
    • Partnership relationship
       
    • Focus on technology-enabled solutions and nurturing of customer loyalty
    • Supply of leading technology and service support
    • Ongoing customer contact and interaction
    • Close working relationships to enhance capability to identify and deliver customised integrated solutions, expanded and competitive offerings
    • Alignment with leading principals to ensure optimal product availability and legitimate supply-chains
    • Shared social and labour plan/local economic development objectives linked to tenders/contracts
    • Respect for consumers’ rights
     
      Employees and their representatives  
    • Sustainable value creation for and by employees
    • Strategic skills acquisition and retention
       
    • Individual meetings
    • Structured team forums
    • Individual and team performance discussions
    • Intellectual capital reviews
    • Team briefings
    • In South Africa, Work Skills and Employment Equity Forums entrenched
    • Anonymous Individual Perception Monitoring (IPM) surveys conducted at least biennially throughout the group which examine employee perceptions on a range of issues
    • Meeting with employee representatives including trade unions in terms of recognised industry/national agreements
    • Confidential independent personal support services
       
    • Group policies to ensure good working conditions
    • Fulfilling careers
    • Strategy, company performance and results
    • Individual and collective conditions of employment and remuneration
    • Security of employment
    • Health and safety issues
    • Career paths and individual development
    • Diversity and inclusion
    • Recognition and market-related remuneration
       
    • Focus on people development, productivity and engagement, diversity and inclusion
    • Alignment with leadership philosophy and Code of Conduct
    • Regular and committed employee engagements to ensure awareness of collective objectives and individual roles
    • Open and flexible communications
    • Continuous review of employee value proposition to facilitate value add for and by employees, attract and retain skills
     
      Principals and suppliers  
    • Delivery of competitive integrated customer solutions
    • Mutual benefit
    • Long term relationships
    • Governance framework
    • Strategic frameworks
       
    • Dealer, dealer council and licensee meetings
    • Principals' conferences
    • Formal reporting and information sharing
    • Ongoing informal contact
    • Product launches
       
    • Reporting and performance reviews
    • Leading representation of products and services
    • Alignment on strategy
    • Product issues and innovation
    • Market positioning
    • Financial and other performance reviews
    • Customer issues and satisfaction
    • Sustainable development matters
    • Market information
    • Supply chain legitimacy and empowerment
       
    • Focus on alignment with principals and OEMs, technology enabled solutions, customer loyalty
    • Successful relationships with mutual value maximised
    • Leading product distribution and after-market offering
    • Significant investment into world class skills and facilities
    • Increasing sales secures improved demand for principals’ products and services
    • Retained distribution rights
    • Mitigation of identified key risks
    • Supply chain optimisation
    • Terms and conditions of relationship updated and maintained
    • Expanded preferential procurement and empowerment
     
      Public sector
    • Policy formulator and regulator
    • Customer
    • Development agent
     
    • Government ministries and departments
    • Government institutions
    • Stated owned enterprise
    • Training authorities
    • Municipal authorities
       
    • Consultation on emerging policy frameworks
    • Compliance issues
    • Progress on skills development and employment equity plans
    • Fiscal and local issues such as building plans
    • Training programmes and rebates
    • Technical and financial assistance for SED
       
    • Enabling environment for business, availability of strategic goods and services
    • Support for development objectives in countries in which the company does business
       
    • Employment, taxes, investments in skills, infrastructure and socio-economic development contribute to financial and social stability, and economic competitiveness of countries in which the company does business
    • Monitoring and constructive responses on changes to policy framework and group’s regulatory environment in countries of operation
    • Compliance and conformance with relevant legislation and standards
     
      Industry associations  
    • Industry associations
    • Organised business associations
    • Voluntary business collectives
       
    • Relevant industry issues, industry lobbying and responses to proposed legislation or regulation
    • Development and adoption of progressive norms and standards for a range of issues and behaviours that underpin corporate responsibility
       
    • Range of industry issues of collective interest and concern
    • Business and industry-related issues
    • Continuous improvement in business process and reporting standards
       
    • Leadership involvement and engagement with industry bodies and forums includes:
    • Inputs to policy development, industry standards and codes
    • conditions of employment, skills development
    • transition to lower carbon economies
    • Diversity, empowerment and transformation
    • Responsible environmental custodianship
     
      Civil society and local communities  
    • Public institutions and non-governmental organisations acting for public benefit
    • Beneficiaries and their communities
       
    • Consultation with, evaluation of and collaboration with appropriate organisations and initiatives
       
    • Development policy and plans
    • Various public benefit initiatives evaluated for leadership, technical and financial support
    • Enterprise development opportunities identified
    • Protection of biodiversity and habitats
    • Climate change mitigation
       
    • Focus on sustainable development balancing economic and social outcomes
    • Engagement on shared interests and concerns
    • Responsiveness to needs of communities through corporate social investment and enterprise development programmes, with set performance targets and objectives
    • Diversity, empowerment and transformation, as well as responsible environmental custodianship identified as key focus areas with set performance targets and objectives
     
      Civil society and local communities  
    • Public institutions and non-governmental organisations acting for public benefit
    • Beneficiaries and their communities
       
    • Consultation with, evaluation of and collaboration with appropriate organisations and initiatives
       
    • Development policy and plans
    • Various public benefit initiatives evaluated for leadership, technical and financial support
    • Enterprise development opportunities identified
    • Protection of biodiversity and habitats
    • Climate change mitigation
       
    • Focus on sustainable development balancing economic and social outcomes
    • Engagement on shared interests and concerns
    • Responsiveness to needs of communities through corporate social investment and enterprise development programmes, with set performance targets and objectives
    • Diversity, empowerment and transformation, as well as responsible environmental custodianship identified as key focus areas with set performance targets and objectives
     
      Media  
    • Open and co-operative relationships
       
    • Media briefings
    • Statutory disclosures
    • Annual media day
    • Operational meetings and site visits
    • Media releases
       
    • Relevant, credible and comparable information and reporting about company
    • Thought leadership
    • Commentary on industry
       
    • Engagement through formal structures, media campaigns and editorial comment on a range of issues
    • Comprehensive integrated reporting initiatives and platforms in place
    • Available and engage proactively and on request
     
  • 102-41: Collective bargaining agreements

    The reporting organization shall report the following information:
    a. Percentage of total employees covered by collective bargaining agreements.
    Integrated Report:
    Percentage of employees covered by collective bargaining agreements 2018     2017     2016  
    South Africa 38%     45%     50%  
    Rest of Africa 0%     0%     8%  
    Europe and Russia 0%     3%     0%  
    Total 31%     38%     43%  
  • 102-42: Identifying and selecting stakeholders

    The reporting organization shall report the following information:
    a. The basis for identifying and selecting stakeholders with whom to engage.
    Integrated Report:

    The identification and selection of stakeholders is in line with the group's shared value creation philosophy and approach. A core group of stakeholders incorporates employees, shareholders, customers, licensees, suppliers, principals, public sector, organised business, trade unions, the media and the communities in which business is conducted, in the context of broader society and the natural environment. However, in the course of doing business, Barloworld engages a wider range of stakeholders. Those who have different interests in the group, whose activities can affect the group, and those which the group's activities will affect are prioritised.

    Barloworld recognises that an important component of its value-creation offering is based on inclusive stakeholder relationships and focused engagement. The intelligence gleaned in engagements is essential to ensuring that the group can better understand and respond to stakeholder needs and expectations, and strengthen its most important relationships. Stakeholders in turn are empowered through their inclusion in the company's processes and derive benefit from having their concerns addressed.

    Stakeholders are identified through a range of channels in the course of doing business and as business leadership in society; sometimes stakeholders come forward and identify themselves.

    Accountability for stakeholder engagement is centred in the operational management and functional structures in the group. The group's stakeholder engagement policy is available at www.barloworld.com

    The group's key stakeholder groupings include:

    • Shareholders and providers of capital
    • Employees and their representatives
    • Customers
    • Licensees
    • Principals and suppliers
    • Public sector
    • Industry associations
    • Trade Unions
    • Civil society, including local communities and beneficiaries of the groups corporate social investment (CSI) and enterprise development (ED) initiatives
    • Media.
  • 102-43: Approach to stakeholder engagement

    The reporting organization shall report the following information:
    a. The organization's approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.
    Integrated Report:
    Annual General Meeting:

    Shareholders and providers of capital

    The group regularly engages with its shareholders and investor community through:

    • Bi-annual results presentations
    • Annual general meetings
    • Annual reporting
    • Investor conferences and presentations
    • Investor site visits
    • Media releases
    • Focused surveys

    Customers

    Barloworld's relationships with customers are critical. The nature of the integrated solutions, centred on its products and services, offered by group companies involves the company's alignment with its customers' strategic business objectives and building sound, long term partnerships. Therefore the group has comprehensive engagement processes in place across all divisions. By engaging, listening to and aligning with its customers' needs and objectives, the group can quickly determine material issues and respond appropriately.

    Numerous individual and collective customer engagement interventions took place during the year focused on sustainable relationships and mutual benefit. All divisions appreciate the importance of these interactions and conduct appropriate interventions. These include implementation of key customer strategies, service level agreements and customer relationship management programmes, open days, focused surveys, daily contact to evaluate service levels, invitations to give feedback and suggestions, and regular visits by senior executives.

    Principals and suppliers

    As a distributor of leading international brands, Barloworld represents a significant number of high-profile global principals.

    Distribution agreements, long-term relationships, structured meetings, reporting and performance reviews, and ongoing informal communication ensure frequent contact with principals.

    Our people also attend principals' conferences where strategic issues, including product launches, are shared. Participants have an opportunity to engage with principals and raise concerns, make suggestions and participate in related workshops and discussions. Ongoing principal interactions cover product issues, market positioning, financial performance, customer satisfaction, sustainability matters, territory issues, market information, and the relationship in general.

    Mutual benefit, trust and transparency underpin the success of these relationships.

    A range of other suppliers including major contractors, long-term and ad hoc suppliers are engaged as appropriate. Local/small/black supplier development and outsourcing initiatives are also undertaken.

    Employees and their representatives

    Employees are the focus of numerous and detailed engagement processes. These are formal and informal, structured and ad hoc, individual and collective. Employee interaction is key to ensuring that the workplace supports productivity, employee contentment and allows them to further their personal and professional ambitions.

    Engagement processes enable employees to make recommendations and influence direction and include:

    • Individual meetings
    • Structured team forums
    • Individual and team performance discussions
    • Briefings
    • Anonymous individual perception monitoring, at least every two years across the organisation
    • Confidential independent personal support services
    • Meeting with employee representatives (including trade unions) in terms of recognition or industry agreements for collective bargaining, organisational restructuring and other specified matters.

    Public sector, organised business, civil society and local communities

    We routinely engage government institutions and departments, municipal authorities, organised business and industry organisations and non-government organisations. We also engage with the applicants and beneficiaries of our corporate social investment, supplier diversity and enterprise development initiatives, other development practitioners/ organisations and funders.

    Media

    Barloworld regards the media as an important stakeholder and we are committed to accessible, open and transparent engagements. A wide range of initiatives includes statutory disclosures, integrated reporting, advertising, ad hoc announcements, editorial comment and publications, formal and informal meetings and briefings.

    Engagement specifically undertaken as part of the report preparation process

    Engagement in this regard is confined to internal stakeholders and with the group's external auditors. The process for conceiving and compiling the report is an extensive one and involves a number of role-players across the organisation. Decisions regarding content, which includes materiality of issues to be reported, presentation and design, and appropriate communication media are taken by senior personnel in the group's strategy and communications departments and signed off by the executive committee, board sub-committees, including the audit committee, and the board.

  • 102-44: Key topics and concerns raised

    The reporting organization shall report the following information:
    a. Key topics and concerns that have been raised through stakeholder engagement, including:
    i. how the organization has responded to those key topics and concerns, including through its reporting;
    ii. the stakeholder groups that raised each of the key topics and concerns.
    Integrated Report:

    Through our various stakeholder engagement, risk and opportunity review processes, we arrive at a set of material issues which we use to refine our strategy and define report content. These issues are reflected in the table below.

    Many of the issues raised by key stakeholder groups are dealt with as part of the engagements that take place during the year. Given that customers are a key group, and that the business relies solely on their loyalty, issues and concerns raised by customers are prioritised. Engagement strategies are essentially individually focused and service oriented.

    Issues raised by employees and investors, principals and other service providers, are also addressed as quickly as possible during the year. Again, given the nature of Barloworld's activities, geographic spread and range of principals, these are usually of an individual and specific nature, rather than collective and broad-based.

    In annual reporting, these issues are categorised and disclosed with a 12 month perspective focusing on themes rather than the individual issues.

    Key topics by stakeholder are shown in the following table:

      Stakeholder   Key issue     Management process     GRI Reference  
      Shareholders and providers of capital  
    • Financial returns through business cycles
    • Business sustainability
    • Legitimacy
    • Capital allocation
    • Return on equity
    • Company and industries performance outlook
    • Market share
    • Economic performance and political developments in areas of operation
    • Executive remuneration and incentive schemes
       
    • Financial targets set for all operations
    • Close review of financial performance
    • Linked to compensation metrics
    • Turnaround strategies to address underperformance
    • Allocation of resources to high performing operations
    • Full disclosure of executive compensation
    • Independent non-executive director chair of Remuneration Committee
    • Independent advisors on remuneration strategy
         
      Customers  
    • Customer service
    • Value for money
    • Reputation for integrity
    • Product range
    • Solutions driven offerings
    • New channels to market
    • Availability of parts and equipment
    • Activity in markets, financial capacity and availability of credit
    • Market share and profit opportunity
    • Customer experience management
    • Competition in markets
    • Customer demand for technology solutions
    • Distribution channels
    • Transformation and empowerment
    • Tender adjudication processes
       
    • Unique integrated customer solutions offered
    • Customer value proposition, satisfaction and transactional surveys conducted
    • Focus on embedding effective customer relationship management into company culture
    • Customer relationship/experience champion appointments
    • Digital/technology solutions incorporated into customer offerings and channels to market
    • Empowerment credentials and social investment managed to meet customer and tender requirements
    • Group forum to promote integrated management, continuous improvement and customer sharing
       

     

     
      Employees and their representatives  
    • Recruitment, engagement, retention of technical and strategic skills
    • Terms and conditions of employment
    • Remuneration and employee benefits
    • Security of employment
    • Work environment, safety culture
    • Development, recognition and reward
    • Career paths
    • Inspiring climate
    • Employment equity
    • Ethics compliance
       
    • Employee value proposition articulated in Integrated Employee Value Model, rolled out and continually reviewed across the group
    • Efficient employee engagement and relationship management strategies, including independent employee perception monitoring and employee assistance programmes
    • Competitive remuneration packages offered
    • Wide range of strategic and labour skills development and training programmes implemented throughout the group
    • Embedded performance management processes linked to incentive schemes and career path opportunities
    • Leadership and executive development programmes
    • Leading human capital management practices
    • Focus on local sourcing of skills, empowerment and transformation
    • Ongoing multi-dimensional communications and awareness programmes on a wide range of strategic and operational issues, including required code of conduct and ethics compliance
         
      Principals and suppliers  
    • Business sustainability
    • Financial performance
    • Market share
    • Representation of brand image and awareness
    • Customer service levels
    • Value for money
    • Dealer networks
    • Operational footprint
    • Regional economic conditions affecting markets
    • Integration of new suppliers
    • Technology initiatives and local production issues
    • Supplier tender processes
    • Supply chain integrity
    • Transformation and supplier development
       
    • Alignment with principals’ strategies and objectives
    • Leading distribution and after-market offerings
    • Effective OEM and supplier relationship management
    • Mutual sharing of market and customer intelligence
    • Investment in world class facilities
    • Focused skills training and development initiatives
    • Customer centric approach and customer satisfaction feedback mechanisms
    • Deployment of group supplier and service provider code of conduct
    • Due diligence reviews on suppliers
    • Continuous improvement of procurement procedures
         
      Public sector  
    • Compliance with evolving regulations, varying across regions
    • Inputs to policy formulation
    • Competitive environment for business and industries
    • Legal and compliance issues
    • Industrial policy issues
    • Labour Policy imperatives
    • Empowerment imperatives
    • Socio-economic development imperatives
    • Shifts to lower carbon economies
    • Anti-bribery and corruption imperatives
    • Tender requirements, contract requirements and terms on the part of governments as existing and prospective customers
    • Political risks / sanctions
       
    • Regular and on-going engagement at various levels with a range of departments, agencies and state owned enterprises
    • Across the group to, as appropriate, monitor, constructively influence, understand the impacts of and comply with:
    • Pending and existing policies, standards, regulatory and tax regimes
    • Requirements for statuary reporting and submissions
    • Rules and regulations for business opportunity tendering
    • Tender and service requirements of public sector customers
    • Involvement and investment in education and SED projects which deliver on public sector development objectives
    • Pending and existing policies, standards, regulatory and tax regimes
    • Requirements for statuary reporting and submissions
    • Rules and regulations for business opportunity tendering
    • Tender and service requirements of public sector customers
    • Involvement and investment in education and SED projects which deliver on public sector development objectives
         
     

    Civil society and local communities

     
    • Responsible corporate citizenship, integral to the communities and the environments in which we do business
    • A shared value approach to creating sustainable value for all stakeholders, including communities in which we do business
    • Building capacity in civil society through engagement and CSI
    • Alignment with national and sector development objectives: competitiveness, investment, skills, jobs, empowerment, supplier and enterprise development, social development
    • Comply with local development plan imperatives
    • Meet customer specific requirements for investment in SED (tenders)
    • Compliance with BEE Codes and Social Labour Plan imperatives
       
    • Engage our respective communities as a group, at operations level, through civil society, public sector structures and industry associations, as appropriate
    • Developed and aligned CSI approach across the group and, as appropriate, with key suppliers and customers
    • Allocated capacity and resources to build capacity in civil society and participate in related processes
    • Investment in interventions which deliver public benefits, contribute to the social wage and address needs and development imperatives in the communities in which we do business
    • Public awareness and employee engagement campaigns on social responsibility issues, including reductions in energy use and emissions, recycling initiatives
    • Through volunteerism, encourage employees to engage and add value at community level through worthy environment and social efforts
    • Engage in appropriate education, socio-economic and enterprise development initiatives to empower communities and break cycles of poverty
       

     

     
     

    Industry associations

     
    • Business and industry-specific issues of collective interest and concern
      • Input into public policy development
      • Competitive environment
      • Adaptation and mitigation strategies in transition to lower carbon economies, including carbon tax
      • Labour legislation
      • Skills development
      • Empowerment and transformation
      • Mandatory reporting
      • Tax regime
    • Potential involvement in PPP's to deliver on social and economic development objectives
       
    • Regular engagement with OEMs, government departments and regulatory bodies, parliamentary portfolio committees and trade unions through organised business, voluntary coalitions and industry bodies
    • Participation in development of business and industry codes and standards
    • Collaboration on achieving competitive business and socio-economic development objectives
         
     

    Media

     
    • Reputation of group
    • Timely, full and fair communications with stakeholders
    • Business sustainability
    • Performance outlook
    • Equity buy/sell decisions and valuation
       
    • Articulate company positioning on strategic issues of mutual interest to both company and all key stakeholders
    • Engagements and communications aimed at building credibility for the group and relationships of mutual trust with opinion influencers. Capacity and resources made available to:
      • Understand and address stakeholder expectations and interests
      • Provide an outlook on company performance, chosen industry segments, impact of political, social and economic developments or uncertainty in areas of operation
    • Engagement through formal structures by selected individuals, proactively through editorials and responsively through media questions, on:
      • Industry and company specific developments
      • Structural, performance or product/service related issues
    • Communications and engagements as per marketing plans
    • Monitor and address negative and positive media