Stakeholder Engagement

The directors appreciate that stakeholder relationship management is an essential element of strategy implementation supporting long-term sustainability objectives. The board has set up processes to regularly consider and address legitimate interests of stakeholders with the conviction that stakeholder perceptions affect the group’s reputation and stakeholder support influences group performance.

Stakeholder management poses significant challenges due to the large number of diverse stakeholders, arising from the variety of crops produced in diverse geographic locations. The board considers stakeholder management particularly important because of the impact of agriculture on the daily lives of communities in terms of job opportunities, water quality and availability, food security and land occupation. Because of this, government and quasi-government institutions tend to take a keen interest in the agricultural sector. In South Africa alone, the group deals on a regular basis with the Department of Agriculture, the Department of Rural Development and Land Reform, the Land Claims Commission, the Department of Water Affairs, the Department of Labour, all at both regional and national level, and local municipal structures.

To address this challenge, both centrally and at regional level, the group has compiled a comprehensive stakeholder database and introduced a formalised planning and reporting structure. Stakeholder interaction is a management priority.

At regional or estate level, the general managers are responsible for the identification of stakeholders and the management of these stakeholders, including communication and,
relationships, the reporting process and most importantly, the continuity and follow-up of matters arising from the interactions.

The group executive committee carries the responsibility for the facilitation and co-ordination of an integrated process. The group’s internal audit team periodically evaluates the results and reports thereon to the risk committee.

STAKEHOLDER GROUPING RESPONSIBILITIES ENGAGEMENT PROCESS
Business partners

Consistent trading performance

Efficient dispute resolution process

Transparent and effective communication

Ad-hoc informal communication

Participation on boards of directors

Regular management meetings

Participation in management development workshops

Communities

Business opportunities

Employment opportunities

Investment

Programmed meetings

Corporate Social Investment initiatives

Community functions

Customers

Quality products

Reliable delivery

Sustainability of relationship

Formal interaction driven by line management

Participation on working group committees

Employees

Challenging and safe work

Fair remuneration and benefits

Sound inter-group relationships

Formal and informal interaction on a daily basis

Internal communication channels

Newsletters on functions

Participation in forums and committees

Government and regulators

Land restitution

Regulatory compliance

Sector transformation

Structured communication programme

Formal meetings

Ad-hoc problem-solving

Attendance at workshops and functions

Shareholders and investors

Sustainable returns

Long-term growth

Consistent trading performance

Annual general meeting

Integrated annual report

SENS announcements and press releases

Meetings and roadshows

Suppliers

Communication of requirements

Fair payment terms

Sustainability of relationship

Formal and informal interaction via line management

Issue of tenders

Briefings in terms of standards and specifications