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| Chairman’s statement continued |
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| Broader contributions |
Our commitment to our shareholders is well known. In addition, we strive to make positive contributions to all our other stakeholders – customers, suppliers, workers and communities.
We are one of 49 companies in the JSE’s Socially Responsible Investment Index, and one of only four South African companies listed on the Dow Jones Sustainability Index; a series of global sustainability benchmarks.
Financial results and pure numbers cannot on their own reflect the impact made by the Group. The sheer size of Bidvest within the South African context means that even small percentages have huge impacts on lives and prospects.
Last year, employee numbers rose 10,0% while developmental programmes ensured the qualitative growth of our human capital. Everyday people continue to achieve extraordinary things at Bidvest. They shape every aspect of our performance. The key figures behind our numbers are those of our employees.
Directors and management applaud the commitment of our teams and their contribution to another year of sustained growth. |
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| Succession generation |
In operations across the Group, younger managers are moving into positions of real responsibility, adding impetus to transformation, making themselves accountable and illustrating the progress of Bidvest’s “succession generation”. They benefit from substantially increased training investment and a consistent strategy of early identification and incubation of managerial talent.
A key resource in this context is The Bidvest Academy. This highly regarded instrument for developing the Bidvest leaders of tomorrow has been strengthened by the creation of a graduate academy to ensure continuing support for the succession generation. A separate sales programme has also been added to the national training effort. |
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| Social investment |
Our black economic empowered preferential procurement spend reached R4,6 billion while our investment in people development in South Africa was R118,1 million. The size of our workforce makes Bidvest one of South Africa’s largest engines of transformation.
Corporate social investment totalled R38,5 million – a contribution that defies simple rands-and-cents measurement as the process increases the self-worth and dignity of so many families. Social investment is not only a corporate commitment; it involves the time, effort and manpower of thousands of Bidvest people. |
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| The macro environment |
Global demand for commodities has benefited many countries in our region. We see renewed investment in neighbouring states in the wake of debt forgiveness and economic reform. We welcome these developments and the positive effect on the performance of our logistics operations in several African jurisdictions. Zimbabwe remains a tragic disappointment, reversing positive progress elsewhere in Africa.
The year witnessed a strategic shift within South Africa – from consumer- to infrastructure-led growth with higher interest rates applying a brake to consumer spending.
Sustained GDP growth has drawn attention to key constraints, including skills shortages and pressure on all infrastructural elements, notably transport infrastructure and power supplies. Substantial investment by government in major infrastructure projects is under way and welcomed. |
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| New imperatives |
Climate change and the environment are becoming crucial issues – for companies as well as countries. The key to success will be the ability of far-sighted leaders to inspire their people by setting out a new vision.
Flexible employment practice is often a prerequisite for job growth, but companies that hire and fire don’t do nearly as well as companies that hire and inspire. Honest, fair-minded and courageous managers who articulate an inspiring vision get more out of their employees than short-sighted and self-interested executives.
A decentralised Group such as Bidvest faces special challenges when building shared purpose. Thankfully, our corporate DNA produces similar leadership styles across the Group. Our managers are hands-on operators who work with their teams rather than stand over them. |
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