SOCIAL, RELATIONSHIP AND INTELLECTUAL CAPITAL
Social and relationship capital encompasses our relationships with communities, groups of stakeholders and other networks.
It incorporates shared values and behaviours and provides us with our social licence to operate. Interaction with key stakeholders, consideration of their concerns and earning their trust are central to maintaining and developing this capital.
A LOOK BACK AT OUR GOALS FOR 2017
- The development of downstream industries through our partnership with the Aluminium Beneficiation Initiative continues.
- Plans for the development of an aluminium-hub in Richards Bay remain on track as various possibilities are identified
THE FOCUS FOR 2018
- Finalise the restructure of Isizinda to achieve an ownership structure that has 51% black ownership and 30% black female ownership to improve achievable points for preferential procurement.
- Continue to promote the development of a downstream aluminium beneficiation industry through our enterprise development programmes.
- Establish an aluminium-hub in Richards Bay.
OUR KEY RELATIONSHIPS
The group recognises that in order to create sustainable value for all it needs to be responsive to the expectations of all stakeholders. To meet the expectations of our stakeholders the group engages in regularly with all stakeholders to establish a relationship of trust and respect to achieve favourable outcomes for all stakeholders on issues of mutual interest.
Further information detailing the expectation of stakeholders and the group’s strategic response thereto is provided here of this report. Additional information can also be found in the Sustainability Report available on our website at www.hulamin.co.za.
INVESTMENT IN OUR COMMUNITIES
Corporate Social Investment (CSI)
The group is steadfast in its vision to make a meaningful contribution to the Pietermaritzburg community. The group recognises that it is situated in a society with enormous challenges and that the group is symbiotically linked to the socio-economic and natural environment in which the company is located. The group is therefore obligated in playing a leadership role in those areas within its sphere of influence.
During the past 12 months the group contributed R2,1 million towards various CSI initiatives.
INVESTMENT IN OUR SUPPLIERS
The group promotes the economic empowerment of black South Africans and encourages business relationships with other companies, which actively pursue sound employment equity and black economic empowerment programmes and who will endeavour not only to support the new B-BBEE codes but to actively better their scoring on an ongoing basis.
The group’s intervention programme of preferential procurement is committed to achieving the objectives of growing the economic involvement in mainstream business, on a sustainable basis, of all previously disadvantaged groups. The group promotes the development of black-owned businesses and in particular wholly African-owned entities, or majority African-owned entities, as preferred suppliers, especially those that are both owned, operated by and managed by Africans.
In order to achieve the strategy the group has established an ESD Committee. For further information on the objectives of the committee refer to our Sustainability Report available on our website at www.hulamin.co.za.
The revised B-BBEE codes continue to have an impact on the group’s preferential procurement score as approximately 65% of the group’s total measureable spend is with Isizinda (which although black-owned has no scorecard rating) and South 32 (level 8) for aluminium rolling slab and primary ingot respectively. The group is unable to achieve an acceptable preferential procurement score as almost no points are achieved from these two key entities.
Over the last 12-months the group spent R2,2 billion with B-BBEE enterprises. Within this amount:
- R253 million was spent on qualifying small enterprises (QSE);
- R305 million was spent on emerging micro-enterprises (EME);
- R855 million was spent with enterprises which were at least 51% black-owned; and
- R273 million was spent with enterprises where black women owned more than 30%.
The group’s objective is to facilitate the development of sustainable businesses that will create jobs and add stimulus to the economy. In an effort to achieve this objective the group has implemented strategic objectives which, among other, include:
- Favourable payment terms to emerging SD beneficiaries;
- Monetary and non-monetary support for black enterprises including supporting enterprise development agencies such as the Business Support Centre; and
- Management and time devoted towards conceptualising, guiding and rolling out various elements of supplier development.
The various initiatives put in place by the group for enterprise development and supplier development amounted to R10 million committed during the past 12 months.