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SOCIAL AND RELATIONSHIP CAPITAL |
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OUR PEOPLE (Human capital) |
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OUR BRAND, REPUTATION AND COMPANY CULTURE |
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| KEY INPUTS |
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- Committed workforce
- Investor confidence
- Constructive relationship with government and regulators
- Positive supplier and customer relations
- Trusted brand and reputation with consumers and society
- Stable operating context contributing to sustained market demand.
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- Strong and diverse board
- Experienced executive team
- 10 158 permanent employees
- Enabling environment
- Adequate governance structures
- Improved reward and personal development opportunities.
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- Long operating history
- Strong brand and reputation
- Unique product formulations and trusted recipes
- Research and development capacity
- Governance and business systems
- Company culture.
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| ACTIONS TO SUSTAIN VALUE |
- Product and process innovation including
with value, health and nutrition,
convenience and sustainability
- Active engagement with suppliers
- Trading terms that are fair, equal and
available to all customers
- Regular investor communication
- Structured engagement with regulators;
continued focus on compliance and
societal contributions
- Increased food support to communities
most in need during the National Disaster
period.
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- Implemented our people strategy to build
a diverse talent base, develop leadership
capacity and creating a great place to
work
- Invested in employee reward and personal
development opportunities
- R4,0 billion on wages and benefits
- R94 million on employee training
- Continued focus on promoting diversity
and employment equity
- 2021 Southern Africa Gender
Mainstreaming Champion
- Prioritised employee health and safety
during the lockdown period and recent
regional riots
- Embedded our enhanced employee
wellbeing programme (THRIVE).
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- Continued focus on innovation and
renovation to meet consumer needs
including with value, health and nutrition,
convenience, e-commerce and
sustainability
- Deploy marketing best practice toolkit
across the business
- Drive relevance in value segment by
building the clear benefits of our current
brands.
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| OUTCOMES OF OUR ACTIVITIES |
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Generally positive relations across key
stakeholder groups
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40% reduction in marketplace incidents |
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25% reduction in consumer complaints |
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R14 billion BBBEE-verified supplier spend |
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Empowerment of Women in the
Community Award and the Economic
Empowerment Award in the annual
Mainstreaming Awards recognising our
contribution to sustainable initiatives that
provide income opportunities to women
and poor communities as well as our
enterprise development programmes,
such as the Dipuno Fund and Agricultural
Aggregator Model, that empower
women-owned and managed businesses. |
| ✓ |
Consumer favoured swift and decisive
reaction to packaging defect with KOO
with net promoter score improving post
the recall. |
Continuing concerns in certain areas
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Pending listeria Class Action lawsuit and
associated reputational concerns |
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Investor uncertainty on growth prospects
in tough market. |
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Maintained focus on employee
motivation and engagement in a
challenging Covid-19 context
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Voted number one employer of choice
in manufacturing sector by graduates |
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Recognised as a Top Employer 2021. |
Strengthened board diversity
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2021 Southern Africa Gender
Mainstreaming Champion in the listed
category at the annual Gender
Mainstreaming Awards |
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Women on Boards – currently 54% of
our board of directors, 36% of group
executive committee and 44% of senior
leadership are women. |
Improvements in employee health and
safety
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Zero fatalities (2020: 2) |
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9% improvement in lost-time injury frequency rate. |
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Sustained a strong brand presence
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Completed purpose journeys on majority
of our major brands with evident impact |
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Won Kantar award for Best Liked Ad in
2020 (Tastic). |
Innovation launches
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Value: new value packs in bread,
chutneys, KOO vegetables and Personal
Care categories |
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Health: new product lines in the Snacks,
Baby, and Personal Care categories, and
relaunch of a lower calorie drinks product |
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Further significant launches imminent in
health and snackification. |
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| SIGNIFICANT CAPITAL
TRADE-OFFS |
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Our success as a business depends
ultimately on the quality of our relationships
with key stakeholders, particularly with our
customers, suppliers, regulators and
investors. These stakeholders often have
different and sometimes conflicting priority
interests (see here); balancing these
competing interests requires trade-offs as we
may be seen to favour certain stakeholder
priorities over others. Investing in social and
relationship capital also often requires short
and medium-term financial capital inputs,
placing heightened pressure on margins in
the short term, but generally generating
positive return over the longer term. |
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Labour remains one of our most significant
costs. In the context of heightened demand
for skills, attracting, retaining and developing
executive talent can be a material short-term
cost, not only depleting financial capital in
the short term, but also potentially raising
concerns regarding inequitable pay
distribution. In the context of tough operating
conditions, and pressure to increase margins,
there was a strong drive to secure further
labour efficiencies and productivity gains
across our operations. While reducing labour
costs has benefits in terms of financial capital,
it has potentially significant negative
implications on human and social capital. |
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Our legacy is built on the strength of our
brands and the quality of our products, which
in turn depends on our proprietary product
recipes, our capacity to innovate in response
to changing consumer preferences, our
robust food quality and safety systems, and
our innovative marketing and consumer
engagement. Maintaining our leadership in
these areas is key to long-term growth, but
often has short-term implications on financial
capital. |
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 SEE HERE AND SUSTAINABILITY REPORT. |
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