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 Board acknowledges that Blue Label’s relationship with its stakeholders is a core capital, as defined by the framework for International Integrated Reporting. The responsibility for satisfactory stakeholder relationships vests with every employee in the Group, as we consider a good reputation to be a competitive advantage, which gives the Group the ability to create additional 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, have 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, while building enduring relationships. 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 securities exchange news announcements, presentations, roadshows, telephone and conference calls, the Blue Label website (www.bluelabeltelecoms.co.za), investor site and trade visits. We may also rely on the results of perception studies, independent research, reputation audits, whistleblowing facilities and formal grievance mechanisms and 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 are encouraged wherever possible, which in turn are presented to Exco for consideration.

Blue Label’s stakeholder engagement programme supports its efforts to be a successful, stable and ethical company contributing to the economic growth of the communities in which we operate.

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 managing 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 Group; and

  • ensuring equitable treatment of shareholders.

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

Employees – we invest in the growth of our people

    

Ongoing communication with employees covers matters of a strategic, financial and operational nature, including new developments, product launches, health and safety initiatives, internal policies and practices such as the ethics hotline, competitions, business initiatives, charitable initiatives, human resource matters, staff wellness, staff-related news and regulatory and compliance matters.

Blue Label also holds an annual off-site conference attended by Directors and Senior Management. The purpose of the conference is to obtain input and feedback from attendees on strategic and common operational matters. Companies within the Group host their own management, sales and strategy conference, held at least once a year.

    

Staff meetings, newsletters, posters, e-mails, 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, and social events with employees, customers and service providers. More details are provided in the human capital section on page 81.

Keynote speakers from industry, discussion groups, breakaway sessions, motivational speakers and team building exercises.

    

Newly appointed staff attend an induction programme held at the beginning of each month.

Innovation in our entrepreneurial environment is nurtured, while motivation and values are reinforced in a safe and rewarding environment. Efforts are made to balance the organisation’s entrepreneurial spirit with a structured work environment by streamlining processes and procedures in a relatively flat organogram and an open communication system.

Staff performance is reviewed bi-annually with the intention of measuring performance and reviewing salaries. There is a forum to which staff may make recommendations and/or requests.

External training, coaching and mentoring programmes are available to staff on the recommendation of their line manager.

See pages 78 and 79 for more details.

Providers of capital, including shareholders, institutional and retail investors and financial analysts – we believe in delivering value to Blue Label’s shareholders

    

Engagement includes ongoing and/or ad hoc meetings with top management involving presentations and discussions covering Group financial performance, overview of strategic direction and the investment proposition.

Tours of the Demonstration Centre and warehouse at No 75 Grayston Drive and visits to a local mall, merchant trading grounds and our customers’ sites are arranged on request.

Individuals from this stakeholder group and their contact details are registered on the Blue Label investor database.

Questions received via telephone or e-mail are answered immediately where possible, with a return time of no longer than 48 hours from receipt, with due regard of close periods.

    

Management undertakes local and international roadshows to existing and prospective institutional investors and analysts.

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, with the long form posted on the Company website.

SENS announcements via the JSE.

Face-to-face meetings, group meetings, teleconference and videoconference calls.

Speaker and presenter at investor conferences, JSE showcases and other workshops.

Investor alerts are e-mailed once individuals register on the website to receive them.

Other activities as arranged by sell-side analysts, banks and financial communication houses.

    

To address this stakeholder group’s request to increase its understanding of the business model, the geographies and markets in which we operate, and 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.

The Demonstration Centre, situated at No 75 Grayston Drive, Sandton, provides an audio-visual overview of the Group, its activities and products and services, while transactions can be simulated on various types of terminals. A warehouse, also situated at No 75 Grayston Drive, can be visited by prior arrangement.

Visits are arranged to local markets, petroleum forecourts, retail outlets, Mom & Pop stores and malls, where our merchants’ activities can be witnessed. By prior arrangement the truck and footsoldier model can be seen in action in nearby local communities. Numerous visits of this nature were held in and around Johannesburg and Cape Town during the year.

Customers – we are at their service in enhancing innovation

    

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 servicing customers, POS device installations, marketing, Blu Approved branding, maintenance, support and sharing information on new products, market trends, business queries and other growth opportunities. Low-cost devices receive a more limited range of servicing.

Senior Management liaises regularly with its customers and supplier counterparts and, in so doing, continue building and strengthening long-term relationships, which in turn, 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 Group 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. It is essential that queries 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 that require 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 communications.

CRCs and regional managers maintain good relationships through a scheduled call cycle to ensure open communication and updates on new product offerings. Support is also provided for POS material, branding, minor repairs and maintenance. Emphasis is given to upselling and cross-selling opportunities within the Group’s products and services lists.

Business partners and suppliers – we collaborate to enhance the end customer’s experience

    

The relationships with business partners such as Vodacom, MTN, Cell C, Telkom, Eskom, municipalities, utilities, parastatals, event, concert and sport organisers, transport providers, commercial banks and merchant acquirers, as well as service providers are managed in terms of written distributor and/or dealer agreements. The nature of the agreements are generally long term.

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 confirmed, 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.

Engaging this group of stakeholders also provides a platform for product innovation, as well as line of sight into indicative market supply and demand trends.

    

Written 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 to ensure quality and value for money in products and services. Prompt and full payment for goods delivered and services rendered are key to maintaining sound relationships with this stakeholder group. Matters raised pertain mostly to technical and operational issues, which are resolved timeously to ensure a smooth service delivery.

Communities, educational institutions and research organisations – we participate with leaders in the communities in which we operate

    

By deepening our understanding of the interests of the communities in which we operate, we enhance trust and strengthen 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 to distribute the Group’s products more widely, create job opportunities for members of the communities and share a portion of the revenue with these communities.

Senior Management, such as the Group Head of Human Resources and the Head of Investor and Media Relations, also engages with the business community, professional associations and research organisations across various levels on a regular basis.

The Joint CEOs and Senior Management are involved in collaborative projects and workshops with the Gordon Institute of Business Science (GIBS), among other local and international business and secondary schools.

Management also takes cognisance of the work of Financial Technology Partners LP, Frost and Sullivan, and the Institute for Futures Research at the University of Stellenbosch. The outputs of relevant print, electronic and social media monitoring services are also noted.

The Joint CEOs are regularly recognised for their contributions to entrepreneurialism, business development and the community in general, if not as award recipient, then as a judge. Some accolades are listed in each person’s biography on page 21.

    

Face-to-face formal and informal meetings and forums.

Training and workshops. Outreach programmes, as requested.

Presentation at conferences, participation in panel and roundtable discussions.

Address public conferences, roundtable sessions on governance and sustainability.

Frequent engagement with lecturers, students and scholars at formal and informal settings. Case studies assist the Group and the community in better understanding developments, challenges, achievements and failures.

The Group, represented by Executive Directors or Senior Management, frequently participates in group discussions with the community on business entrepreneurialism and administration.

    

The Group supports making responsible contributions to broader societal issues, be it through its charitable donations, CSI spend or in developing our business model among communities. See page 80 for more detail.

The communities in which the TPC community channel operates are mainly worried about the upliftment of their community, the enhancement of skills and the delivery of services in their mostly rural areas. These concerns are directly addressed by the community channel, in focusing on providing services, creating job opportunities and stimulating economic upliftment.

These opportunities provide extramural stimulus for senior staff and enable them to extend their knowledge, mentoring reach and networks.

This provides the Group quick access to talented individuals, while gaining direct line of sight into academia, where it may be able to offer and receive learning.

Members of the media, including journalists, reporters and editors – we engage with outsiders to our business who may have difficulty understanding our activities

    

Briefings 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 online journalists and editors.

Ad hoc requests for interviews and participation in panel discussions.

    

News releases are distributed to media and news services both locally and overseas, as per a database maintained by the Company.

Print, online, broadcast and social media monitoring is outsourced and reports of coverage are received and distributed daily among business segments, as appropriate.

    

Mid-cap companies do not readily gain news coverage. To raise this stakeholder group’s interest and awareness of the scope of business, products and services, media site and trade visits, including to 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 the CEOs, financial performance, various new products such as ticketing and prepaid water, and distribution by truck and footsoldier to the informal sector.

Management regularly participates in radio and TV shows, especially around the release of our financial results.

Government, regulatory bodies and the public sector – we believe in partnering with regulators

    

The Group regularly engages national and local government, 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 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 and physically lodges returns at the CIPC to expedite registration.

    

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.

The Group meets all its statutory filing obligations in respect of the Department of Labour, CIPC, SARS, etc.

    

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.