Barloworld Integrated Annual Report 2015 - Engaging with our stakeholders

Engaging with our stakeholders

Barloworld recognises that stakeholders choose to support us, invest in us, work for us, and take decisions to buy our products and services based on how well we meet their expectations.

The sustainability of the Barloworld group is based on our commitment to adding long-term value for key stakeholders: shareholders, customers, principals and suppliers, employees, the communities and the public sectors in the areas where we live and do business.

We strive to respond appropriately to issues raised in our interactions with stakeholders to enhance and further build on our strategic relationships, and to meet the needs as appropriate. The group also continually determines ways to improve interfaces with our stakeholders to enhance mutual understanding, to assess needs and define relevant value-creating responses.

Stakeholder consultation and relationship management are implemented in all divisions at all levels of management in the group. Efforts are made across a wide range of stakeholder interfaces to ensure transparency, best-practice disclosure, consistent communication and equal and timely dissemination of information about our plans, related activities and performance.

While the group delegates responsibility for proactively dealing with stakeholder relationships to its divisions and group functionaries, a management framework has been put in place which includes a group stakeholder policy with recommended operational guidelines. A group-wide reporting regime on stakeholder issues under management informs our social, ethics and transformation board committee, which monitors the health of the stakeholder relationships which substantiate our reputation, as mandated by King III.

A group stakeholder champions’ forum mandated by the executive committee and board focuses on addressing key issues, continual improvement and shared learning. In 2015, teams have focused on customer centricity and sharing across business units, value chain management, diversity and inclusion, supplier development, engagement with organised business and voluntary coalitions, brand value and relationship management issues and government liaison strategies in the face of changed rules of engagement for business with the public sector as customer.

It is through dialogue and our willingness to recognise the divergent legitimate concerns, interests and needs of our stakeholders that we are consistently able to entertain approaches to value creation that are new, innovative and different. This is essential to our being able to compete successfully in increasingly complex and ever-changing business environments and simultaneously bring about the systemic change needed for sustainable development.

Stakeholder issues report

STAKEHOLDER	ISSUES RAISED	MANAGEMENT RESPONSE

PRINCIPALS AND SUPPLIERS	Sustained returns Alignment Innovation Risk management Management depth and leadership Trusted partnership and relationship Sustainability and ethics Transformation Reputation of OEM	Responsible corporate citizenship Continual, systematic formal and informal engagement Alignment on standards, requirements, objectives, service, customer satisfaction Maximising dealer business models Alignment with key customers’ local economic development programmes B-BBEE scores meet key customers’ requirements Supplier due diligence processes New acquisitions, disposals Increasing market share Developing/introducing new products and services, partnerships Continual review of routes to market Investment in new facilities Market research, advisers to OEMs Customer and supplier to OEMs

PUBLIC SECTOR	Support for national imperatives Contribution to socio-economic development Sustainability Diversity and inclusion	Focus on regular, ongoing and ad hoc engagements at various levels of public sector, entities which impact or affect our chosen industry sectors, and our ability to create sustainable value for our stakeholders HLRA, ethics and compliance regime Managing partnerships on projects/service delivery Building capacity and resources to anticipate and respond to government tenders Efforts to align on economic, industrial, supplier, localisation and socio-economic development objectives Management and reporting on governance, impacts on society and environmental stewardship Proactive regulation compliance audits Analysis of potential impacts of pending legislation and taxes, provide appropriate input, directly and/or through industry bodies and forums

SHAREHOLDERS AND PROVIDERS OF CAPITAL	Strategy Sustained returns Sustainability and ethics Risk management Management depth and leadership Innovation Allocation of capital to businesses with high returns Growth opportunities Funding	Strategic, integrated business management and reporting approach addressing economic, social and environmental issues Engagement through formal and informal interactions and channels, presentations and regular management meetings Integrated business planning with regular reviews of business performance Attaining evolving world-class standards in monitoring and reporting, earning membership of sustainability indices

CUSTOMERS	Innovation/integrated solutions Operational excellence Trust and reliability Risk management Value delivery Partnership/relationship Sustainability and ethics Transformation	Continually review dealership footprint and OEM representation Extensive programmes and reviews in place to anticipate customer needs and ensure service and satisfaction levels Focus on building customer bases Flexible access to customer solutions and markets Alignment with customers’ needs and objectives, key customer strategies Creation of integrated customer solutions Ensure non-financial targets meet customer requirements Strategic joint ventures Innovation and partnerships to provide financing solutions Unpacking customer contracts for further business opportunities

EMPLOYEES	Career development Terms and conditions of employment Inspiring work environment Security of employment Workplace safety Development opportunities, recognition and reward Diversity and inclusion Attraction and retention	Wide variety of regular and ongoing initiatives for both collective and individual interfaces with employees An open door policy exists throughout the group and employees are encouraged and enabled to approach management Individual integrated scorecards in place, aligned with strategic plans Employee individual perception monitor surveys and action plans Structured implementation of integrated employee value proposition Intellectual capital reviews link to individual development plans Workplace safety training highest priority Transformation a high level priority Roll out of Worldwide Code of Conduct, and ethics and compliance programme Interactive lifestyle and wellness programmes in place Leadership and executive development programmes Division and group CEO awards for excellence Volunteerism opportunities

COMMUNITIES	Legitimacy Pioneering, responsible corporate citizenship Awareness of social and environmental issues and initiatives The value we create through our business activities Local social and economic legislative imperatives, targets Our CSI focus and objectives Key customers’ local economic development/social and labour plan obligations linked to their tenders, contracts	A philosophy of creating sustainable value for all key stakeholders, including the communities of which we are an integral part, where we live and work Ongoing engagement with civil society, communities, various public sector entities, other corporates and funders around development policy, plans and our participation in specific initiatives Community impact employee opportunities such as education and training, job creation, provision of quality products and services, supplier and other business opportunities Public sector, civil society and communities benefit from social investment, volunteerism, the taxes, levies and dividends we contribute Group policy and approach stepped down through division champions to local engagement with communities and the implementation of programmes and projects aligned with their needs Aligned with group value driving strategies and other social development imperatives