Stakeholder engagement: 4.14 - 4.17

  • 4.14 List of stakeholder groups engaged by the organisation.

    Integrated Report 2014:

    Barloworld recognises that its entire value-creation approach is underpinned to varying degrees by stakeholder engagement, by understanding stakeholder expectations and the impact of these relationships on its ability to sustain value for all its stakeholders. Stakeholders are identified in a number of ways, engaged through a range of different channels and on a variety of issues. Accountability for stakeholder engagement is centred in operational management and functional structures in the group.

    Additionally, the group’s stakeholder engagement is designed to connect commercial success (profitable growth) with societal benefits expressed, for example, through its corporate social investment contributions to the social wage, through empowerment and transformation and/or environmental sustainability. The group understands that it is an integral part of society and its competitiveness is closely related to societal well-being.

    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
    Operational and financial performance
    Sustainability of business
    Market perspectives
    Value creation performance
    Performance of business units
    Strategy and identified growth opportunities
    Fair executive and non-executive  directors' emoluments
    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
    Value of product, service and solutions  provided
    Ability to enhance customers’ value creation activities
    Service level agreements
    Review of supply chains to ensure legitimacy
    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
    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
    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
    Employment equity
    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
    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 enterprises
    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 national 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
    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
    Empowerment partners
    Mutual value creation/benefit
    Ad hoc meetings
    Structured interventions
    Operational meetings
    Mutually beneficial  relationships  and value creation
    Operational performance
    Share price
    Dividend
    Ongoing engagement, proactive and transparent communication
    Focus on value creation and total shareholder returns
    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

  • 4.15 Basis for identification and selection of stakeholders with whom to engage.

    Integrated Report 2014:
    Corporate governance report 2014:

    The identification and selection of stakeholders is in line with the group's Value Based Management philosophy and approach. A core group of stakeholders incorporates employees, shareholders, customers, suppliers/principals, public sector, organised business, 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. Irrespective, where concerns are legitimate, the company addresses these, listens to suggestions and engages honestly.

    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
    Principals and suppliers
    Public sector
    Industry associations
    Civil society, including local communities and beneficiaries of the groups corporate social investment (CSI) and enterprise development (ED) initiatives
    Empowerment partners
    Media.

  • 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

    Integrated Report 2014:
    Corporate governance report 2014:

    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.

    Empowerment partners

    The company meets with its empowerment partners as required or appropriate for the different categories. Central themes are operational performance, our share price and the respective contributions by the parties to our value-creation activities. We also address the relationship between the company and its empowerment partners and, in the case of our trusts, dividends.

    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.


  • 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting.

    Integrated Report 2014:
    Corporate governance report 2014:

    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 focussing on themes rather than the individual issues.

    Key topics by stakeholder are shown in the following table:

    Stakeholder Key Issue Management Response 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
    1.1
    1.2
    4.1
    4.4
    EC1
    EC2
       
    KPI’s 1.2   
    5. Financial returns
    6. Profitable growth
    4.5
    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 managed to meet customer and tender requirements
    Group forum to promote continuous improvement and customer sharing
    4.1
    EN 26
    EN 27
    PR1
    PR3
    PR5
    PR6
    PR8
     
    KPI’s 1.2  
    1. Integrated Customer Solutions
    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 resources 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
    4.4
    EC 1
    EC 7
    LA 113

    KPI’s 1.2 
    2. People   
    3. Empowerment and Transformation


       
       

    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 code of conduct
    Due diligence reviews on suppliers
    Continuous improvement of procurement procedures
    1.2
    2.7
    4.4
    EC 6

    KPI’s 1.2
    1. Integrated Customer Solutions
    2. People (skills) 
    3. Empowerment and Transformation (SA) 
    4. Sustainable Development





    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
    EC 1
    EC 6
    EC 7
    EC 8
    EN 26
       
    KPI’s 1.2
    3. Empowerment and Transformation
    Civil society and local communities
    Responsible corporate citizenship, integral to the communities and the environments in which we do business
    A value based management 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
    EC 1
    EC 8
    EC 9
    SO1
    SO5
    EN 6
    EN 12
       
    KPI’s 1.2
    3. Empowerment and Transformation
    Empowerment partners
    Mutually beneficial relationships and value creation
    Ongoing engagement, proactive and transparent communication
    Focus on value creation and total shareholder returns
    EC 1
    EC 6
    SO 1
     
    KPI’s 1.2  
    3. Empowerment and Transformation
    5. Financial Returns 
    6. Profitable Growth
    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
    EN 5
    EN 6
    EN 7
    EN 12
    EN 26
       
    KPI’s 1.2  
    3. Empowerment and Transformation
    4. Sustainable Development
    Media
    Reputation of group
    Timely, full and fair communications with stakeholders
    Business sustainability
    Performance outlook 
    Equity buy/sell decisions and valuation

    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
    PR 7
      KPI: Reporting principles for content and quality