Local community: SO1

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

    Integrated Report:
    Engaging with our stakeholders Diversity and inclusion - Supplier diversity Sustainable development - Inspired to contribute to our communities Sustainable development - Acting externally on our enviromental concerns Governance review - Social, ethics and transformation report - Purpose of the committee
    Corporate Governance:
    Governance framework - Chapter 2 - Board and directors

    Local engagement and support is the responsibility of each operation. However, structural social investment, supplier diversity and enterprise development programmes are co-ordinated at group level.

    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 our stakeholders and, as such, we are mindful of the value we create for those communities.

    Aspects of this value-creation include providing employment, paying rates and taxes, raising the profile of the community issues in need of redress 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 and in-kind 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 the social investment initiatives of 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 or the market.

    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 R84 million in such initiatives over the past five years, of which R44 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.

    Through the Barloworld Trust, we invest millions in carefully selected interventions which address some of the foremost problems in South Africa society in a structured, systematic manner. This approach is underpinned by our strategic partnerships in civil society which deliver synergies and innovations in public-service delivery that can be developed to scale by the public sector or the market.

    Some of the Barloworld Trust's strategic investments include:

    1. For Systemic Change in Education

    Programme for Improving Learner Outcomes (PILO) is a large-scale programme of interventions at learner, teacher, HOD, principal, school management team, district official, provincial and national government levels with broad-based support to improve the quality of teaching and learning in public schools, with public sector, unions, NGO'S and business. Current initiatives are in Pinetown and uThungulu in KwaZulu Natal and Kuruman in Northern Cape.
    For more information, see www.slideshare.net/Trialogue/mary-metcalfe-pilo-trialogue-28-may

    Bridge convenes / facilitates / manages the work of communities of practice to focus on key leverage points in the education system to create common purpose, peer support and trust amongst stakeholders, maximise resources, contribute to change at a systemic level and vertically link practices to policy creation and implementation.
    For more information, see www.bridge.org.za

    2. To support ECD or early childhood development which has, arguably, the highest return on investment in education

    Afrika Tikkun provides education, health and social services for children, youth and their families through its community centres and holistic development programmes, starting with high quality early childhood programmes which lay the development foundation for the next generation of young South Africans.
    For more information, see www.afrikatikkun.org

    Ikamva Labantu's programmes support the most vulnerable in society: orphans, vulnerable children and youth, young pre-school children in early childhood development centres and the aged inWestern Cape townships.
    For more information, see www.ikamva.org

    Ntataise is involved in large scale capacity building in the ECD sector, working with thousands of ECD practitioners to improve quality of teaching, which has impacted over 500 000 children's lives. Efforts are focused on training, supporting and mentoring ECD practitioners through accredited training programmes and a network which comprises 20 leading ECD organisations across 7 provinces in South Africa.

    3. To improve education outcomes in mathematics, science and languages

    FUNDZA LITERARY TRUST works to inspire 13-15 year old black students to read for pleasure through delivery of age and culture appropriate material delivered on innovative IT platforms to build vocabulary and comprehension for formal learning, encourage young people to share their stories and develop as writers.

    LEAP Science & Maths Schools include six intervention high schools focused on excellence in mathematics, science, English and emotional growth, a teacher training programme, and after-hours tuition. The LEAP movement also works with a range of partners to effect broader systemic change in education in South Africa.
    For more information, see www.leapschool.org.za

    TEACH South Africa recruits,trains and supports top university graduates to teach mathematics, science, English or technology for a minimum of two years in some of South Africa's most under-resourced schools. TEACH's primary objective is to use these TEACH Ambassadors to improve learner achievement in an effort to afford quality education to every South African learner.
    For more information, see www.teachsouthafrica.org

    Thandulwazi Trust - Maths & Science Academy. St Stithians outreach to improve the quality of maths and science teaching and learning in Gauteng Schools by offering learners at the FET Phase extra tuition in these key subjects at a Saturday School, to up-skill and offer a professional development programme to teachers in government schools across Gauteng, and train new maths, sciences, English and ECD/Foundation Phase teachers through a mentored, in-service training programme.
    For more information, see     www.thandulwazi.com

    4. To support whole school development

    PILO – see above

    Penreach, a whole school development programme operating from Penryn College in Mpumalanga, provides educational interventions and solutions in a pipeline from early childhood development to career, working with over 900 historically disadvantaged schools in programmes which address in-service skills training and support to mathematics & science teachers, pre-school, primary and high school teachers, principals, school governing bodies and their community structures.
    For more information, see www.penreach.org.za

    5. To facilitate access to tertiary education

    REAP (Rural Education Access Programme) assists students from poor rural areas in South Africa to access tertiary education by providing information, resources and referrals to grade 11 and 12 learners in rural schools and calling on state mechanisms such as the National Skills Fund (NSF) and the National Student Financial Aid Scheme (NSFAS) to provide full cost bursaries and subsidised student loans. A network of recruitment volunteers offers career information to learners and guides them through the various application processes. REAP also provides students with a structured support and development programme on campus to facilitate success in their studies.
    For more information, see www.reap.org.za

    6. To promote youth entrepreneurship

    ENACTUS South Africa (formerly SIFE – Students in Free Enterprise) brings together student, academic and business leaders committed to using entrepreneurial action to improve quality of life and standard of living for people in need. Participating students form teams on their tertiary education campuses to create and implement community outreach projects, an experience which not only transforms lives but helps students develop the talent and perspective that are essential to leadership. Projects are formally evaluated and lead projects go to national and international competitions.
    For more information, see www.enactusza.org

    7. In support of the environment

    Endangered Wildlife Trust's conservation strategy involves identifying human-induced threats and affected species to halt or reverse species decline, ensuring the viability of threatened habitats and ecosystems, developing innovative, economically viable alternatives to address harmful impacts to the benefit of people and biodiversity, increasing awareness and mainstream environmental considerations into the daily lives of people and decision makers, exploring and developing opportunities for mentorship and capacity building within the conservation sector and providing a leadership role in ensuring efficient and adequate implementation, compliance and enforcement of conservation legislation.
    For more information, see www.ewt.org.za

    WWF South Africa (World Wide Fund for Nature)'s goals are to ensure that South Africa's biodiversity is conserved and that our footprint remains within the Earth's capacity to sustain life by securing the integrity of South Africa's ecological assets, ensuring that ecosystem services underpin social and economic well-being and building a climate resilient, low-carbon economy.
    For more information, see www.wwf.org.za

    8. To facilitate the role of business in society:

    National Business Initiative (NBI) is avoluntary, non-mandated business coalition which facilitates the role of business in society through national, strategic policy interventions, and projects with a catalytic development impact. Working towards sustainable growth and development in South Africa and the shaping of a sustainable future through responsible business leadership and action, its main areas of operation are in promoting environmental sustainability (water, climate change, green economy, energy efficiency) and socio-economic sustainability (Pathways to Employability through skills development, UN Global Compact support and implementation).
    For more information, see www.nbi.org.za

    9. To build the next generations of responsible leaders

    Africa Leadership Initiative is a Fellowship established to build capacity and strong networks in next generations of African leaders from business, government and civil society through a programme of seminars on the philosophy of ethical and responsible leadership. Each Fellow is responsible for developing a community project and, post-graduation, becomes part of an alumni which meets at regular intervals to discuss relevant issues and works together towards achieving a good society with social and economic progress for all.
    For more information, see www.aspeninstitute.org/leadership-programs/africa-leadership-initiative/south-africa

    The President's Award for Youth Empowerment is acompetitive experiential programme of leisure activities for young people that encourages character building, self-reliance and responsibility through service to the community. In prisons, the programme provides a framework for the rehabilitation of young prisoners and, in state-run residential youth facilities, aligns with their individual development plans. In schools, the programme provides a life orientation learning tool for teachers.
    For more information, see www.presidentsaward.co.za

    10. To empower people living with disabilities

    National Council for Persons with Physical Disabilities in SA (NCPPSA) coordinates the work of national umbrella disability service organisations and a forum to promote the maximum level of independence and integration of people with physical disabilities into society, as well as the prevention of the occurrence of physical disablement. NCPPSA has also created a corps of people with disabilities who have the potential to serve on various public and private sector structures to raise awareness of and facilitate achievement of initiatives addressing disability issues.
    For more information, see www.ncppdsa.org.za

    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 and is funded by dividends from Barloworld. BET bursaries have been awarded to 24 students for the 2015 academic year, who are studying at South African tertiary institutions. The bursaries are annual allocations and are reviewed based on the bursar's academic results and vacation work reports. Barloworld dividends received have been utilised to fund studies which include tuition, prescribed books, registration and examination fees, and in many instances, residence, food and travel costs.

    A further 9 business bursaries have been awarded through Barloworld business units, bringing the total number of bursars in the group to 33 for 2015.

    There have not been any significant exits of any community during the period.

    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 R187 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 30 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.

    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
    • Emergent Africa, a business communications firm specializing in enterprise & supplier development
    • 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
    • Siyakha Ezethu – Consulting, a legal practice
    • Solar Spectrum – a construction company
    • Renjohn – an engineering company
    • T- Marc Investment Solutions – a warehousing and distribution c
    • Maorabjang Communal Property Association – a farming community

    Approximately 620 jobs are sustained through these businesses.

    Supplier diversity

    Our supplier development strategy is informed by global best practice, which seeks to strengthen efficiencies within the traditional supplier base while also increasing capacity and procurement among non-traditional, historically disadvantaged service providers. In an increasingly multi-cultural marketplace, these efforts are essential to promoting sustainability and creating value among our stakeholders.

    Diversity and inclusion within our supply chain is championed by Barloworld Siyakhula, our enterprise development arm. Siyakhula was founded in 2007 in response to the drive towards black economic empowerment and transformation in South African business.

    Supplier development workshops

    Building upon their successful launch in 2014, we continued group-wide supplier development workshops in 2015 and more will follow in 2016.

    There have been several positive outcomes of this initiative.

    • Over 600 new suppliers were engaged in line with transformation and black empowerment within our supply chain.
    • Various business units – along with their respective suppliers – have engaged with Siyakhula towards furthering their B-BBEE compliance.
    • All Barloworld divisions are accelerating empowerment within their procurement operations.

    Strategic partnerships

    Barloworld’s forward strategy recognises the need to leverage partnerships and this year we intensified our collaboration with various organisations in the financial, government and private sectors to unlock value for our stakeholders. These include the South African Supplier Diversity Council, Standard Bank, the Department of Trade & Industry, the National Business Initiative and Empowerdex.

    Coverage

    The integrated report covers the performance of Barloworld Limited for the periods included in the responses to the indicators. It includes all the geographic regions in which the Barloworld group and its subsidiaries operate. The consolidated data incorporates the company and all entities controlled by Barloworld as if they are a single economic entity. There are no other entities over which the group has significant influence that it believes should be included in the report. Associates and joint ventures are equity accounted.