Group broad-based black economic empowerment
(B-BBEE) strategy and commitment form part of everyday business throughout the businesses.
KAP endorses the B-BBEE strategy of the Department of Trade and Industry, which supports the policy of the South African government towards an ‘integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increases in the numbers of previously disadvantaged individuals (PDIs) that manage, own and control the country’s economy, and significant decreases in the income inequalities’.
The B-BBEE Codes of Good Practice have recently been revised subsequent to the last ratings that were done and which are published. The group will be evaluating the new codes to establish a revised minimum group target after taking into account its evaluation of the codes, and itsability to sustainably comply with the revised targets. Overall, the group is achieving a level 4 score.
Divisional targets for preferential procurement, ownership, management control, employment equity, corporate social investment and training and development (in line with industry-specific standards/codes of good practice) are in place in each of the divisions. Each division is responsible for its own compliance rating and all scorecards are externally audited by an accredited B-BBEE verification agency.
The broad-based employee share scheme (S’khulasonke) that was concluded by Steinhoff International in December 2008, made share ownership a reality for eligible employees in South Africa. The scheme’s purpose is to make wealth creation a possibility for those employees. All permanent South African employees (at that time with some exclusions) are included as part of the scheme. The scheme is structured in such a way that these employees will own Steinhoff shares after a nine-year participation period. The share scheme was extended to also include the “traditional” KAP employees as part of the successful incorporation of KAP into the Steinhoff group in 2012.
Through a special-purpose vehicle, Steinhoff S’khulasonke Investments Proprietary Limited, approximately 13 000 Steinhoff and KAP employees, of whom the majority are PDIs, hold 40 377 900 Steinhoff International shares. Participants of the S’khulasonke receive annual dividends.
To align numerical representations within management levels with those of the national economically active population demographic numbers, remains a challenge. However, the various divisions have set targets and specific plans in place to improve such representation. Therefore, the balance between quality appointments, future leadership successors and employment equity targets is a priority for the future viability of the operations.
To retain and recruit a higher level of managerial black employee, Steinhoff also introduced a black management share participation scheme in 2008, as part of the S’khulasonke Scheme, which now also includes KAP’s black management employees.