Stakeholder relationships

Sustainable business success is dependent on the loyalty of stakeholders, and this loyalty is underpinned by a relationship of trust. All interactions with our stakeholders are conducted within the groupís values of excellence, teamwork, innovation, integrity and customer delight, and is reinforced by the groupís commitment to its code of ethics.

    Description and objectives of engagement   Key engagement issues   Means of engagement   Outcome of engagement in 2016
Primary stakeholders            
CUSTOMERS  

The group has a customer base of 743 000 predominantly female customers in the mass middle-income market.

Engaging with these customers enables the group to retain loyalty, understand her needs and enhance the brand, which should generate further revenue and ensure the sustainability of the business.

 
  • Merchandise offering
  • Personal loans
  • Service levels
  • Product delivery
  • Credit offering
 
  • Monthly catalogue mailings and regular telephonic contact with call centre agents
  • Electronic engagement through the Internet, including social media, e-mail and SMS
  • Feedback through customer surveys and the customer call centre
 
  • R2.7 billion revenue generated
  • R1.25 billion personal loans disbursed
  • 3.4 million website and 6 million mobi visitors
  • 495 000 followers on Facebook
EMPLOYEES  

Over 1 630 people are employed at the group’s head office and distribution centres.

By creating a rewarding working environment and investing in personal development, the group aims to retain key employees, minimise labour turnover and accelerate transformation.

 
  • Training and skills development
  • Remuneration and benefits
  • Performance management
  • Personal development
 
  • Internal media including intranet, e-mail and notice boards
  • Monthly presentations by the CEO and senior management; team meetings
  • Performance reviews, training needs analysis and annual talent management
  • ChoiceCare wellness programme
 
  • Reduced attrition rate in call centre of 42% (2015: 55%)
  • R3.4 million invested in training
  • 12 045 training interventions
  • Black staff as a percentage of total staff 90%
SHAREHOLDERS   Shareholders provide the group with capital and active engagement enables investors to make informed decisions and provides greater insight into the group’s performance and prospects.  
  • Trading and financial performance
  • Dividend payments
  • Capital management
  • Prospects
 
  • Annual general meeting and other formal shareholder meetings
  • Interim and annual reports
  • Media releases on company performance and developments
  • Investor website
  • Results presentations
 
  • Integrated annual report and AFS published
  • Investor presentations available on website
Secondary stakeholders            
SUPPLIERS  

The merchandise team engages with suppliers offshore and locally to ensure the group can offer exclusive, innovative, quality, value-for-money products which will ensure continued loyalty from customers.

The group also engages with a wide range of suppliers of services to ensure the efficient operation of the business.

 
  • Product exclusivity and innovation
  • Product availability
  • Quality and safety standards
  • Delivery lead times
  • Continuity and efficiency of supply
  • Payment terms and BEE accreditation of suppliers
 
  • Establishing alliances with suppliers
  • Supplier meetings and negotiations
  • Supplier take-on documentation and processes
  • Attending trade fairs
  • Regular site visits
  • Quality audits
 
  • Strong demand for group’s merchandise offering
  • Maintain own-brand strategy
  • Acceptable customer return rates
  • Good value services that support growth
  • ISP transports 66% of home deliveries in South Africa
REGULATORY BODIES   The increasingly complex legislative and regulatory environment requires the group to develop a thorough understanding of current, new and proposed regulation to ensure compliance and adherence to best practice.  
  • Legislation
  • Regulation
  • Compliance
  • Governance practices
 
  • Regulatory returns
  • Audits
  • Membership of industry bodies
  • Ongoing liaison with regulatory bodies
 
  • Compliance with all relevant legislation and regulation
  • All statutory returns submitted
COMMUNITY   As a responsible and caring corporate citizen the group supports the upliftment of communities in which it operates, with a focus on early childhood development in disadvantaged communities.  
  • Financial support
  • Staff donations
  • Volunteering support
 
  • Funding through the HomeChoice Development Trust (HDT)
  • Requests for funding assistance
  • Regular visits to beneficiaries
  • Annual feedback on funds utilised
  • Quarterly trustee meetings
  • Feedback to customers and staff
 
  • HCDT donation of R4.5 million in 2016
  • Staff participation in community events