STAKEHOLDER RELATIONS

The Board has ultimate accountability for stakeholder strategy and engagement, recognising that developing and nurturing dialogue with key stakeholders is a driver of business sustainability. The responsibility for satisfactory stakeholder relationships vests with every employee in the Group, as we recognise that a good reputation is a competitive advantage.

GOVERNING STAKEHOLDER RELATIONSHIPS

The nature of the relationships with stakeholders can affect the Group’s reputation and therefore ability to create value. We approach stakeholders with trust and respect and look to them for the same mutual good faith. A broad range of internal and external stakeholders with a material or potential interest in, or who are affected by us, has been identified.

We recognise the importance of identifying issues of a shared interest, but also value the opportunity for engagement, as it provides a unique insight into the expectations of each stakeholder group. We apply a measured approach to interacting with and responding to stakeholders. A stakeholder engagement programme has been formalised for the most relevant stakeholder groupings. This process takes into account the impact that each stakeholder group may have on our business, while the frequency and form of engagement is aligned to its estimated impact.

Some of the initiatives and methods used in the process of engaging with stakeholders comprise face-to-face formal or informal, individual or group meetings (including the AGM), media and stock exchange news announcements, presentations, roadshows, conference calls, the Blue Label website (www.bluelabeltelecoms.co.za), investor site and trade visits. We also rely on the results of perception studies, reputation audits, whistle-blowing facilities and formal grievance mechanisms, financial and sustainability reports. In addition, we initiate newsletters, circulars and e-mail updates, regular customer, business partner and supplier meetings, below- and above-the-line advertising and marketing across various channels, formal consultations and audit processes, and host management and sales conferences. Dialogue, review and feedback is encouraged wherever possible, which in turn is presented to Exco and/or committees, such as the Social, Ethics and Transformation Committee, for consideration and/or further action.

In terms of King III and the Board’s requirement to address stakeholder management, the Board’s approach to stakeholder engagement includes:

	identifying and engaging with important stakeholders;
	appreciating that stakeholder perceptions affect reputation, and therefore manage reputation risk;
	delegating to management the responsibility to deal with stakeholder relationships;
	overseeing the mechanisms and processes for the constructive engagement of stakeholders;
	disclosing stakeholder engagement in the integrated annual report;
	striving to achieve a balance of stakeholders’ legitimate expectations in the best interests of the Company; and
	ensuring equitable treatment of shareholders.

Ultimately, our stakeholder engagement programme supports our efforts to be a successful, stable and ethical company contributing to the economic growth of the communities in which we operate.

Stakeholder group	Nature of engagement	Method of engagement	Dialogue process and outcomes

Employees	Ongoing communication with employees covers matters of a strategic, fi nancial and operational nature, including new developments, product launches, health and safety initiatives, internal policies and practices such as the ethics hotline, new products, competitions, business initiatives, charitable initiatives, human resource matters and staff-related news and regulatory and compliance matters. Blue Label also holds an annual conference attended by Senior Management. The purpose of the conference is to obtain input and feedback from attendees on strategic and common operational matters. Most companies host their own management and strategy conference, held at least once a year.	Staff meetings, newsletters, posters, e-mail, staff notices posted on notice boards, in the canteen and in lifts, lunch and coffee station discussions, management presentations and briefings of strategy updates, financial and personal performance. Other methods include wellness days, a carnival day, blood donor drives, health campaigns, the winter Olympics, the year-end awards ceremony, social events with employees, customers and service providers. More details are provided in the human capital section on page 88. Keynote speakers from industry, discussion groups, breakaway sessions, motivational speakers, team building exercises and industrial theatre performances.	Innovation in our entrepreneurial environment is nurtured, while motivation and values are reinforced in a safe and rewarding environment. Staff performance is reviewed annually with the intention of measuring performance and reviewing salaries. There is a forum to which staff may make recommendations and/or requests.
Providers of capital, including shareholders, institutional and retail investors and financial analysts	Engagement includes ongoing and/or ad hoc meetings with top management involving presentations covering fi nancial performance of the Group, overview of strategic direction and discussion of the investment proposition. Visits to the Demonstration Centre and warehouse at No 75 Grayston Drive and visits to our customers’ sites are arranged on request. Individuals from this stakeholder group and their contact details are registered on the Blue Label investor database.	Integrated annual report, interim report and AGM. The highlights of the interim and year-end results are published in the press as a short-form advertisement. SENS announcements via the JSE. Face-to-face meetings, group meetings, teleconference and video-conference calls. Speaker and presenter at investor conferences, JSE Showcases and other workshops. Investor alerts are e-mailed after website registration. See detailed typical annual calendar rogramme on page 56.	To address this stakeholder group’s request to increase its understanding of the business model, as well as products and services, management is available to take meetings and conference calls throughout the year, subject to close period dates. Presentations and webcasts are posted on the Company’s website (www.bluelabeltelecoms.co.za). The Company’s Demonstration Centre, situated at No 75 Grayston Drive, Sandton, provides an audio-visual overview of the Group and its activities, while simulating transactions on various types of terminals. A warehouse, also situated at No 75 Grayston Drive, can be visited by prior arrangement.
Members of the media, including journalists, reporters and editors	Announcements of activities and events in the Group, including the release of fi nancial information twice a year, are communicated timeously to the fi nancial media, trade press and other interested media registered on the Blue Label media database. Briefi ngs to media are held at the interim and full-year results, followed by Q&A. One-on-one interviews are conducted on radio, TV and with print and on-line journalists and editors.	News releases are distributed to media and news services both locally and overseas, as per a database maintained by the Company. Print and on-line media monitoring is outsourced and reports of coverage are received and distributed daily among business segments, as appropriate.	To raise this stakeholder group’s interest and awareness of the scope of business, products and services, a number of media site and trade visits, including the Demonstration Centre, were held during the year. A number of interviews with Senior Management resulted in articles published in the press, with subjects covering financial performance, financial services products and distribution to the informal sector.

ENGAGEMENT PROGRAMME

A typical investor relations, employee and media engagement programme of activities for a calendar year includes:

January

February

March

April

May

June

July

August

September

October

November

December

Financial year-end

✓

Results announcement for the year ended 31 May released on SENS and posted to website

✓

Dividend declared

✓

Dividend paid

✓

Results presentation to market – Johannesburg and webcast, materials posted to website

✓

Results roadshow to institutional investors and sell side analysts – SA

✓

Results roadshow to institutional investors and sell side analysts – UK and USA

✓

Integrated annual report and notice of AGM posted to website and shareholders

✓

AGM

✓

Half-year-end

✓

Interim results announcement for the six months ended 30 November released on SENS and posted to website

✓

January

February

March

April

May

June

July

August

September

October

November

December

Conference call by management to update market on specific activities/operations

✓

Participation at investor conferences

✓

Site visits

✓

Management engages investors, analysts, media

✓

Close periods per JSE

✓

Ad hoc announcements disclosed through SENS

✓

Announcements posted to website and distributed to global database of stakeholders

✓

Global database of stakeholders maintained by Investor Relations

✓

Guide market analysts into half- and year-end results

✓

Media

✓

Employees

✓

Stakeholder group	Nature of engagement	Method of engagement	Dialogue process and outcomes

Customers	The Group’s customer base comprises corporate clients, chain stores, large independent retail clients, wholesale/cash-and-carry stores, Mom & Pop stores and petroleum forecourts. Engagement involves sharing information on new products, market trends, business queries, device installations, marketing, BLU Approved branding, maintenance and support and any other growth opportunities. Senior Management liaises regularly with their counterparts at customers and suppliers and, in so doing, are building long-term relationships, which furthers growth opportunities.	A dedicated, national helpdesk operating daily from 07:00 to 21:00, with a team of customer relationship and technical support consultants. Face-to-face formal and informal meetings, as well as formal consultation. The Company has a CRM system, self-help facilities and dedicated CRCs to enhance its customer engagement service.	Price and value for money drive the relationship with this stakeholder group. FAQs by customers usually involve technical matters or account queries, so it is essential that these are expeditiously resolved to impart a greater sense of value to the customer. A call-out is logged for technical matters and a technician will visit the site within 24 to 48 hours. Account queries needing escalation are dealt with by a CRC who will visit the merchant. The contact centre sends regular updates to the merchant base through SMS and e-mail communication. CRCs and Regional Managers maintain good relationships through a set call cycle to ensure open communication and updates on new product offerings. Support is also provided for point-of-sale material, branding, minor repairs and maintenance. Emphasis is given to up-selling and cross-selling opportunities within the Group’s products and services lists.
Business partners and suppliers	The relationships with business partners such as Vodacom, MTN, Cell C, Telkom, Eskom, municipalities, utilities, parastatals, commercial banks and merchant acquirers, as well as service providers, among others, are managed in terms of distributor and/or dealer agreements. Relationship managers are appointed to each partner to provide a single and dedicated point of contact. Suppliers are managed in a formal procurement process, during which issues such as quality of product, creditworthiness and B-BBEE status are confi rmed, prior to their appointment. Suppliers of services are, if appropriate, initially engaged through a tender process and, where successful, agreements are concluded. The majority of the Group’s goods and services are procured from locally based suppliers.	Distributor and/or dealer agreements. Face-to-face formal and informal meetings. Site visits are held on request.	We recognise the need to work co-operatively with this stakeholder group to ensure quality and value-for-money in products and services. Matters raised pertain mostly to technical and operational issues, which are resolved timeously to ensure smooth service delivery.
Communities, educational institutions and research organisations	In deepening our understanding of the interests of the community in which we operate, while enhancing both trust and relationships, the TPC Community Channel specialises in the development and empowerment of broad-based communities through the deployment of mobile technology and products. The community channel aims not only to distribute the Group’s products more widely but also to create job opportunities for the members of the communities and to share a portion of the revenues earned with these communities. Senior management, like the Group Company Secretary, the Group Head of Human Resources and the Head of Investor and Media Relations, also engages with the business community, including research organisations, across various levels on a regular basis. The joint CEOs and senior management are involved in collaborative projects with the Gordon Institute of Business Science (GIBS), and other business and secondary schools. Management also takes cognisance of the work of Frost and Sullivan and the Institute for Futures Research at the University of Stellenbosch. The joint CEOs are regularly recognised for their contributions to the community, if not as an award judge then as a recipient. Some of their accolades are detailed in each person’s biography on pages 21 and 22.	Face-to-face formal and informal meetings and forums. Training and orkshops. Outreach programmes, as requested. Presentation at conferences, participation in panel and round-table discussions. Address public conferences, round-table sessions on governance and sustainability. Frequent engagement with lecturers, students and scholars in formal and informal settings. Case studies assist the Company and the community in better understanding challenges, achievements and failures. The Company, represented by executives or senior management, frequently participates in group discussions with the community on business entrepreneurialism and administration.	In support of contributing responsibly to broader societal issues, the communities in which the TPC Community Channel operates are concerned about the upliftment of their community, the enhancement of skills and the delivery of services in their areas, which are mostly rural. This concern is directly addressed by the Community Channel, as it focuses on providing services to these communities, as well as creating job opportunities and economic upliftment. This provides extra-mural stimulus for staff and enables them to extend their networks. This enables the Group quick access to talented individuals, while gaining direct line of sight into academia, where it may be able to offer and receive learnings.
Government, regulatory bodies and the public sector	The Group regularly engages government (at national and local level), parastatals and other public organisations through various tender processes. From a compliance perspective, the completion and rendition of statutory returns are undertaken diligently. Blue Label is not a member of any industry association and/or national/international advocacy organisation in which the Company has positions in governance bodies, participates in projects or committees or provides substantive funding. The Group occasionally consults the Department of Labour.	Formal personal meetings, written communications and tender processes. The Group takes cognisance of the implications of the B-BBEE Codes of Best Practice. Meetings are held covering matters such as health and safety and the Codes of Best Practice.	Our good reputation is our licence to operate and we therefore have to uphold our stature with all stakeholders. During the year under review no prosecutions were brought against the Group for the contravention or non-compliance of any laws or regulations. Advice is considered by management and, where appropriate, recommendations made to the Social Ethics and Transformation Committee.

STAKEHOLDER RELATIONS

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