Ethics

In addition to other compliance and enforcement activities, the board continues to support the process of confidential reporting (whistle-blowing) of fraud, theft, breach of ethics and other risks. Whistle-blowing procedures and our 24-hour call centre ensure formal reporting and feedback. We encourage employees to report any activity they believe to be in breach of the code of ethics.

Regulatory compliance

Bidvest recognises that its greatest risk of non-compliance stems from a weakness within the practical impact of the legislation on their business. Each company is required to identify legislation that applies to the environments in which it operates, as well as the categories of information held relating to this legislation. Awareness programmes, through various forums, are run from a Group level to update management on legislative change and how it applies to the business.

Corporate governance

The Group corporate governance manual lists the charters, codes, policies and documents which have to be formulated by divisional governing bodies. These are categorised into matters the Group deems as mandatory, recommended or optional. In line with Bidvest’s decentralised structure divisional management will establish additional policies and procedures as are applicable to their governing structures.

Stakeholder engagement

Stakeholder engagement to inform material issues

Because Bidvest’s structure is highly diversified and decentralised, stakeholder engagement happens at divisional and company level. An operation engages with stakeholders on matters considered material to its business, which helps identify many of the important commercial and sustainable development issues facing the operation.

• reassess who the key stakeholders are, principally considering the level of influence, dependence and representation;
• evaluate existing forms of engagement to ensure they include social, ethical and environmental issues; and
• introduce additional engagement forums, as necessary.

Engagement with shareholders

We regularly meet investors and analysts to foster dialogue and communicate Group strategy and performance. Information is distributed via numerous communication channels, including the internet. The security and integrity of information is carefully maintained while ensuring that critical financial information reaches all shareholders simultaneously.

Bidvest is mindful that King III encourages companies to inform their investors about important non-financial issues. Continued inclusion of these issues in the Group’s annual report is indicative of the Group’s commitment to this principle.

Engagement with employees

Bidvest and operational companies engage with employees in many ways. Employee representation through trade unions stands at 16,5% internationally and at 28,7% in South Africa. Union representation varies widely. The Group’s policy is to ensure good employee relationships. We offer market-related remuneration.

Bidvest South Africa divisions use employment equity forums to deal with issues on site. All affected stakeholders are kept informed.

A survey of employee opinion regarding Bidvest’s efforts towards sustainability showed that our staff were keen to contribute and proud their company was working for positive change. Key challenges and opportunities were also identified, in particular the need to move from awareness to action.

Many Group companies operate heavy equipment and handle hazardous products. Bidvest is acutely aware of the health and safety risks faced by employees and contractors and places the utmost importance on a safe and healthy working environment.

Responsibility for health and safety is assigned to dedicated senior managers in all operations where safety and health are material issues. South African companies comply with the Occupational Health and Safety Act. International businesses meet relevant standards in their jurisdictions.

The number of fatalities increased to nine. Each fatal incident was fully investigated in conjunction with the relevant authorities. Training to entrench safety awareness and reinforce safe behaviour is a constant focus for companies at risk.

Engagement with customers

Operating largely in service industries, Bidvest forms part of the supply chain for our customers, who are mostly major businesses with important reputations at stake. Our customers regularly engage us regarding compliance with social, environmental and human rights standards.

In those industries where our companies engage consumers directly, we monitor call centres and independent complaint channels to find ways to improve our service. The Group ethics line, the general Bidvest e-mail address, the Bidvest website and direct calls to the Group chief executive are key feedback tools facilitating our continual improvement.

South Africa’s Consumer Protection Act became effective in March 2011. Companies conducted staff training to ensure provisions have been met. In general, our status as leaders in service and product quality meant that we were already well prepared for the new legislation.

Engagement with government, authorities and regulators

Our engagement with national authorities and regulators occurs mainly at divisional level, and is proactive across the Group. Engagement with relevant government authorities occurs only at Group level for overarching issues such as tax. However, at Bidvest South Africa, engagement with the Department of Labour on employment equity plans, for example, is devolved to the divisions. Consultations occur as needs arise.

Engagement with communities, community-based organisations and non-governmental organisations

As a large, transcontinental organisation, the Bidvest Group’s diverse companies operate in very different social and cultural environments. Our decentralised management policy is thus particularly appropriate with respect to how our operations engage with local communities. We may impact communities in a number of ways; primarily by providing employment. Across the Group, companies take pride in contributing to social and educational initiatives through donations and other forms of support. In South Africa our engagement is often a response to large disparities in wealth and opportunity. In the UK and Europe, programmes include healthy eating campaigns, while in other regions, disaster response is a focus.

CSI takes on a different flavour in different regions where we operate. For example, while senior citizens are a focus in some European companies, disaster management was a focus in New Zealand this year, and education and poverty alleviation are recurrent issues in South Africa.

• Tier one – Corporate supports a number of overarching worthy causes
• Tier two – individual divisions support their own flagship projects
• Tier three – individual businesses support community-based projects in their operational areas

Staff members responsible for these programmes assess the impact and outcomes of each programme and adjust investment accordingly.

Corporate encourages and guides CSI by sharing success stories in Bidvoice, on the website, the intranet, in reports, at roadshows and at company gatherings.

Rally to Read is one example of a South African CSI flagship programme.