Barloworld

Group executive: Human resources, strategy and sustainability report

Group executive: Human resources, strategy and sustainability report

Our people

I am pleased that our efforts in driving a safety conscious culture are bearing fruit resulting in zero work-related fatalities during the period. This remains a key focus in the group.

We continue to focus on implementing the high performance standards under each of the six elements of Inspire, Grow, Thrive, Live, Relate and Reward as contained in our Integrated Employee Value Model (IEVM). As our business grows, we are dealing with a workforce that differs in demographics, employee demands and changing expectations.

Our expectation of employees has also changed. Technology is one of the many forces that has transformed the workplace and the way we work. This has necessitated us to broaden and accelerate leadership development at all levels to build capacity. We have also developed innovative ways to attract and retain talent while enhancing employee engagement.

Our strong focus on engaging our people is entrenched. IEVM will facilitate the high performing organisation we require to execute on our strategic plans.

Our people engagement performance is measured by our individual perception monitor which has achievable targets across our businesses and enables us to identify gaps and develop focused action plans.

Diversity and inclusion

Our diversity and inclusion strategy focuses on five strategic goals: achieving a diverse workforce; promoting an inclusive work environment; encouraging supplier diversity; achieving outstanding service delivery to all stakeholders; and building the Barloworld brand as a leader in diversity and inclusion.

Gender parity and racial diversity are receiving dedicated strategic attention with targets set in all our divisions.

Specific steps are being taken to advance the number and seniority of women and the career paths of identified high potential female employees are being accelerated.

We strive to ensure that our teams reflect the demographics of the countries where we operate.

Inclusivity will create an environment where all our employees, irrespective of race, gender, sexual orientation or religious beliefs feel empowered to contribute fully and have their opinions valued.

We continue to improve the competitiveness of our South African operations through addressing the country’s transformation imperatives and social objectives. We are engaging our principals to expand their localisation efforts, and are actively promoting supplier diversity initiatives in support of the dti’s revised codes of good practice.

Strategy

The past year has seen Barloworld’s Vision 2015³ coming to an end and the launch of our new five-year vision to 2020.

Our Vision 2020 and strategic framework were developed through a participative process which included our senior executives, and communicated through the organisation during the year.

We adopted a similar approach to the revitalisation of our strategic planning process in support of our vision. This involved senior employees and executives across the group and provides the platform for developing the plans to realise our strategic ambitions.

Our Worldwide Code of Conduct was also revised to ensure our conduct aligns with our ambitions.

Shared value creation is central to our strategy which is based on “Inspiring a World of Difference” for our stakeholders. It incorporates delivering superior shareholder returns and sustainable societal outcomes.

This builds on our shared value philosophy, which focuses on driving value for all stakeholders – our shareholders, our people, customers, principals, communities and our environment.

Our framework includes strategic focus areas and identified growth industries in support of our 2020 objectives.

Sustainability

Our approach to sustainable development incorporates responsible corporate citizenship and delivering products, services and solutions that generate sustainable outcomes as well as improving profitability.

During the year we added “Sustainability” to our group values which ensures individual accountability and that it is central to our shared value creation activities.

Our priorities over the next five years include the health and safety for our employees and other stakeholders affected by our businesses, energy consumption, greenhouse gas emissions, water usage and responsible waste management. We are committed to being a respected corporate citizen and adding sustainable value to our communities. We have set aspirational group targets in each of these areas in the past and to 2020.

The group was 7% behind its aspirational target of a 2% efficiency improvement for non-renewable energy and greenhouse gas emissions (scope 1 and 2) set for the end of this financial year off a 2014 baseline, mainly due to growing operations with relatively high energy and emissions intensities, as well as base energy consumption patterns of businesses with decreased activity levels. Nonetheless this target played a major role in focusing our efforts in respect of these aspects and driving efficiency improvement initiatives which benefit the group.

Barloworld has adopted a dual approach to its corporate social investment (CSI). The Barloworld Trust has established partnerships with reputable non-governmental organisations (NGO) involved in developmental CSI, and through divisional structures, we play a role in communities where we do business. We also encourage volunteerism by our employees. A notable initiative in this regard saw employees from our Mozambique and South Africa operations participate in the “Stop Hunger Now” meal packing initiative that resulted in 213 000 meals being packed by Barloworld.

Stakeholder engagement continues to inform our activities. Formal structures are in place to enhance this interaction and we strive to respond to matters raised in a manner that supports our shared value objectives.

Ethics and compliance

Our Worldwide Code of Conduct and group values inform our individual and collective behaviour. Our code of conduct has been revised to support our Vision 2020 and objectives. These are complemented by a suite of policies and group frameworks which are appropriately developed and adapted by our operations to suit their respective industries and geographies. Relevant management control environments are also in place throughout the group. Ethics and legal compliance with the laws of the countries where we operate remain a key focus.

We have conducted supplier due diligence reviews which are aimed at assessing and limiting any potential risks emanating from our supply chain.

A Barloworld whistleblowing policy sets out procedures for reporting improprieties or improper conduct and ensures that the rights of employees and other associated persons are protected where reports are made in good faith. Our code of conduct has a process for reporting violations including the anonymous Barloworld ethics line.

Sibani Mngomezulu

Group executive: Human resources, strategy and sustainability