Stakeholder relationships

 

 

Sustainable value creation depends on successful interactions and engagement with stakeholders. Using our values as the basis of all exchanges, we aim to engage proactively with those who impact Bidvest, as well as those on whom we have an impact. This informs our strategy development and evaluation, our risk management as well as our material issues.

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Suppliers

Communication with key suppliers on market trends and requirements, as well as product innovations.

Key issues raised

  • Clear communication channels supporting accurate and timely information to all parties
  • Joint pursuit of efficiencies
  • Long-term sustainable support of small and/or black-owned supplier companies
  • Financial and operational challenges faced by certain suppliers
  

Our response

  • Established alternative supply channels
  • Engaged with suppliers on product innovation
  • Supportive relationships with small and/or black business to ensure their sustainability
  • Continued efforts to streamline logistics chain

Customers

Monitor call centers; Independent complaint channels; Group ethics line; Bidvest website; Group product and service brochure; Direct calls to divisional CE; Customer visits, feedback from sales representatives and client relations teams.

Key issues raised

  • Compliance to a customer centric ethos
  • Customers increasingly demand "smart green solutions" across all products and geographies
  • Increasingly complex and value-sensitive business environment
  • Retain and grow key customers
  • Demands for higher black ownership
  

Our response

  • Meet and exceed customer needs and expectations through innovative solutions and broader product ranges
  • Focus on key senior relationships with strategic customers
  • Pragmatic and commercial approach to black ownership
  • Energy saving projects implemented across the Group resulted in cost savings

Partners and potential partners

International, regional and industry contacts; and Market intelligence, focused on leaders in specific niche areas where Bidvest sees growth opportunities.

Key issues raised

  • Scope for complementary growth
  • Prospects for entry into new markets
  • Potential to better serve existing customers by forming an alliance or a relationship, thereby anticipating emerging needs
  

Our response

  • Constant evaluation of market developments, new technologies and solutions
  • Communication with brand principals, industry leaders and entrepreneurs

Government and governing bodies

Submissions; and Meetings as well as representation on industry bodies.

Key issues raised

  • Ongoing compliance with regulatory frameworks and good governance
  • Tender processes and adjudication
  • Local procurement and employment
  

Our response

  • Maintained sound governance policies and procedures
  • Constructive engagement with various tender boards
  • Introduced local partners and procurement elements in various contracts

Communities

Direct engagement by decentralised business operations with local communities and organisations with regards to community upliftment, particular projects and specific needs.

Key issues raised

  • Improving the lives of those in the communities
  • Use expertise to give back to communities
  • Local procurement and employment
  

Our response

  • Three-tier CSI strategy:
    — Corporate office supports a number of overarching worthy causes
    — Divisions support their own flagship projects
    — Individual businesses support community-based projects
  • Divisions run industry-specific training programs to equip communities for a sustainable future
  • R56m spend on socio-economic development

Employees and trade unions

Close involvement of local managers with local trade unions; Employment equity forums within Bidvest; Employee surveys; and Group ethics line.

Key issues raised

  • Market-related remuneration
  • Group communication to ensure good employee relationships and positive workforce
  • Bribery, corruption and cyber security awareness
  • Health and safety
  • Securing, retaining and development of necessary skills
  

Our response

  • Informal, hands-on managerial culture
  • Refreshed awareness drive and the independently managed ethics line
  • 7 485 participants in graduate recruitment programs
  • Concluded scheduled wage negotiations without major strike action

Equity and debt investors

Results presentations and company announcements; Investor meetings/ roadshows; Internet updates and other.

Key issues raised

  • Group strategy
  • Group performance
  • M&A pipeline and insights
  • Non-core asset disposal
  • Governance framework and board independence
  

Our response

  • Hosted investor briefing sessions to enhance market knowledge base
  • Comprehensive external re-evaluation of functional governance structure and board processes
  • Active engagement with potential interested parties with regards to non-core assets, directly and through advisors