Integrated Annual Report 2020

Stakeholder relations

Blue Label Telecoms is part of a greater socio-economic ecosystem and our stakeholders are a core element of that system and of our business.

Background

As a business embedded in emerging markets and embracing a growing ecosystem, the impact of our operations extends beyond our commercial partners, customers and employees. Providers of capital, communities, the media, government and non-governmental organisations, as well as other stakeholder groupings may each have differing viewpoints and expectations of our business. We recognise that we depend on robust relationships with all our stakeholders in order to grow our business and provide value to individuals, families, businesses and society.

We recognise that engagement and co-operation with stakeholders, including understanding their needs and concerns, as well as acknowledging that Blue Label is reliant on them is paramount, especially when navigating the COVID-19 pandemic. The intensity and quality of engagement with employees was ramped up in preparation for COVID-19 and has continued as the majority of employees work from home and will continue into the future given the very positive feedback received from staff. In preparing for lockdown level 5 that came into force on 27 March 2020, employees were provided with detailed guidelines on remaining safe and provided with training in order to install PCs and laptops in their homes. The Group provided employees with data and routers where required. Employees were invited to frequent webinars from leading medical experts and we continue to provide weekly communication from our joint CEOs and “hang-out” sessions with comedians and motivational speakers.

Digital innovation is the lifeblood of Blue Label and came to the forefront during lockdown. We created new products that allow indigent customers to access their free basic electricity grants via USSD and WhatsApp without leaving their homes, we developed specific products that combine a number products into single vouchers to help customers limit their need to venture out and we developed a streaming platform called COVID Zero. This platform helps Ticketpro, whose business has been severely impacted by the lockdown, to maintain relevance and provide artists and fans a platform to share and enjoy their content safely. COVID Zero empowers entertainers and raises funds for charities to provide less fortunate South Africans with face masks, hand sanitisers and food parcels. Importantly, Blue Label was able to set up a fully functioning remote Customer Interaction Centre to deal with any and all problems face by customers. The lockdown has not dented Blue Label’s ability to provide to provide airtime, data, electricity, bill payment and other financial services products seamlessly and 24/7. Our multi-channel approach provided customers with alternative outlets to access our products when retail stores were close and petroleum forecourts not utilised as much. The continuing move to digital buying patterns has seen banks and online applications increase in importance.

We have been pleased to note an uptick in productivity from our employees and management team. Working remotely has saved significant time in not having to commute. We believe that the requirement to engage online with all our stakeholders has worked well and saved all involved both time and money.

Blue Label’s stakeholder engagement policy, a requirement of King IV, outlines our approach to communicating and working with our stakeholders. Engagement is an integral part of developing an understanding of our stakeholders’ needs, interests and expectations and assists Blue Label with strategic, sustainable decision-making. Collaboration and regular interaction with all stakeholder groups is essential to the business’s long-term resilience and to the effectiveness of our integrated sustainability approach. Stakeholder engagement is undertaken with a far broader aim than merely communicating “to” various stakeholder groups. Rather, Blue Label considers its various stakeholders as key partners in its endeavours.

While the Blue Label’s Board has ultimate responsibility for our Group’s stakeholder engagement efforts, the process of engaging with stakeholders is decentralised to form part of the operations of our various subsidiaries in different geographic locations. Each business area is required to report regularly to Executive Management and the Board on its stakeholder engagements. This is to ensure the Group’s various business units maintain and commit to playing a role in nurturing impactful relationships that deliver mutual benefits.

Stakeholder identification

At Blue Label we identify our stakeholders and monitor our relationships through a multitude of communication channels including regular dialogue.

Key stakeholders are identified by recognising their interests, areas of expertise and levels of influence. Other factors may also be taken into consideration, such as stakeholders’ integrity, willingness to engage, stated expectations from engagement, dependence on the Group, and the value to be derived for the Group in engaging with stakeholders.

Identification also assists in allocating resources appropriately and efficiently. As stakeholders can change, stakeholder mapping may need to be conducted to ensure groupings are not omitted or do not overlap.

Stakeholders are prioritised according to the level of influence they have on Blue Label and the level of influence Blue Label has on them. Our primary key stakeholders are our employees, customers, shareholders, regulators, government, media, business partners and suppliers. These groups are discussed in detail in the stakeholder matrix table included at the end of this report.

Methods of engagement

Our methods of engagement include various channels and means of communications reliant on each specific stakeholder group. These methods are meticulously outlined in the stakeholder matrix.

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, speeches, roadshows, telephone and conference calls, the Blue Label website (www.bluelabeltelecoms.co.za), trade visits, phone hotlines, e-mail feedback forms, focus groups and workshops. Our processes are designed to both be proactive in terms of engagement and responsive to any attempt by stakeholders to engage with us. We actively use the data provided by our billions of transactions that we process annually to provide intelligent analysis of who we should actively engage with and how best to respond to any stakeholder needs.

We rely on the results of perception studies, independent research, reputation audits, whistleblowing facilities and formal grievance mechanisms as well as questions pertaining to our financial and integrated reports. In addition, we initiate publications such as newsletters, circulars and e-mail updates; regular customer, business partner and supplier meetings; below-the-line advertising, marketing and social media campaigns; 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.

Accountability

Blue Label’s 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.
In identifying and prioritising stakeholders, the Board considers the following criteria:

• groupings which interact with the Group, or are directly or indirectly affected by the Group’s activities; and
• groupings which have a positive or negative impact on our ability to operate.

Exco assesses the completeness thereof, with reference to the ecosystem in which the business as a whole operates. This approach to stakeholder identification and engagement is cascaded to all subsidiaries across the regions, although each is responsible for managing its own stakeholder relationships. Any key concerns at subsidiary level are escalated, either to line management or via the Internal Risk and Compliance Committee.

All subsidiaries or departments dealing with both external and internal stakeholders are directly responsible for receiving and dealing with complaints received. It is their duty to adequately resolve the complaints received to the satisfaction of both parties. Most complaints are directed to the client’s direct point of contact with Blue Label, including the multiple call centres. Each subsidiary is also responsible for generating proactive leads to engage with new potential stakeholders.

Stakeholder identification and prioritisation is an ongoing process and is evolving as the Group expands.

The Board’s approach to stakeholders also embraces:

• 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.

The management of stakeholder risks and opportunities is done through the completion of a risk assessment which forms part of the overall enterprise risk management process. This enables management to effectively deal with uncertainty, associated risks and opportunities, thereby allowing us to strengthen our stakeholder engagement. Our future engagement activities will expand on current initiatives and improve the accuracy and speed of communication efforts.

Major engagement activities in FY20

Apart from continuing daily engagement with all our staff, customers and suppliers, the major concern during the FY20 has been Blue Label’s urgent response to the COVID-19 pandemic as detailed on COVID-19 impacts, providing guidance to investors regarding the progress of the Cell C recapitalisation and keeping stakeholders apprised of our “back-to-basics” strategic approach to operating the business. The success of our back-to-basics approach is evident in our financial results to the year ended 31 May 2020. Our approach to investors is to provide them with continuous access to Executive Management at both Cell C and Blue Label via conference calls, face-to-face meetings and more recently via Microsoft Teams and Zoom. We provide updates to investors regarding our progress, over and above out regulatory obligations, as often as we are able to and whenever directly asked for information. Continuous engagement is necessary to remain up to date with the prevailing ideas and concerns of our stakeholders.

Our formal engagements through results presentations and roadshows also provide opportunities for investors to have all queries regarding our strategic and operational direction answered.

Our new operating structure has increased our ability to rapidly meet our customers’ needs, improve our service levels and speed to market. We have conducted extensive customer engagement activities to understand their needs and have designed products and solutions that meet their needs and cater for future requirements. Surveys regarding the performance of our Customer Interaction Centre have demonstrated that our customers are pleased with the increased speed of our turnaround times.

Stakeholder engagement matrix