STAKEHOLDER RELATIONS
The board recognises the important role it has to play as the ultimate custodian of the corporate reputation of Foschini and its relationships with stakeholders. Whilst management is responsible for the implementation of the policies and processes relating to stakeholder engagement, the board performs an oversight role in ensuring that there are no significant gaps between stakeholder perceptions and the performance of the company.
Foschini acknowledges the importance of proactive engagement with all of its stakeholders and in this connection strives to foster sound relationships between the company and each stakeholder grouping. The identified stakeholder groups include:
- employees;
- shareholders and investors;
- banks and other financial institutions;
- customers;
- suppliers;
- government, regulatory authorities and industry bodies (including the Department of Labour, Unions, CCMA, Labour courts); and
- community.
Foschini acknowledges that the main audience of this integrated report is shareholders and investors. Communication with these stakeholder groupings is primarily through formal means via the group’s investor website (www.foschinigroup.co.za) via the JSE stock exchange news service, in the press (where this is required) and through the distribution of annual and interim reports in the mail.
Executive directors and senior management are accessible to investors, and regular meetings are held with local and international shareholders, both current and prospective. In addition, invitations are extended to members of the Investment Analysts Society to attend results presentations to provide them with timeous and relevant information regarding financial performance and prospects.
A summary of the group’s engagement
with its various stakeholder groups is
provided in the following table:
| Stakeholder group |
Principal methods of engagement |
Key issues and concerns raised by the stakeholders |
How we are responding |
Employees |
|
Requests relating to employee benefits |
Human resources policies are all available to staff on our intranet. Ad-hoc requests are discussed on an individual basis, either in person, telephonically or via e-mail |
|---|---|---|---|
Institutional shareholders
|
|
Consistency of trading performance particularly with respect to the Foschini brand | New management recently put in place with turnaround strategy well under way. Performance is improving and the processes being implemented should ensure consistent results in future |
Shareholders |
|
Consistency of trading performance particularly with respect to the Foschini brand | New management recently put in place with turnaround strategy well under way. Performance is improving and the processes being implemented should ensure consistent results in future |
Banks and other
|
|
Bank facility reviews and general banking issues | There are no specific areas of concern |
Customers |
|
Customers most frequently raise specific issues relating to an in-store experience | We monitor issues raised by customers via our customer services call centre, our websites and we are linked to external customer service websites |
Suppliers |
|
Longevity and sustainability of relationships between the group and suppliers. Illegal imports are increasingly impacting on the competitiveness of the local supply base | Group Merchandise Procurement (GMP) division established to oversee and ensure responsible management and quality assurance in procurement practices. Formalised processes are in place to evaluate existing and potential suppliers, and monitor supplier performance. GMP assists suppliers requiring corrective action to be taken in order to ensure compliance. The group meets with SARS and DTI through the NCRF to address concerns around illegal and under-invoiced imports |
Government
|
|
On occasion government and regulatory authorities approach the group with queries on compliance with the law, or requesting input on draft legislation. Recently the group has been extensively involved with the process of drafting the Consumer Protection Act; we are now focusing on the anticipated content of the regulations and have sent a written submission to the Department of Trade and Industry. In addition we are considering our involvement in the drafting and adopting of an industry code. Recently we have also submitted comments on legislation that falls within the Department of Justice’s responsibility, such as the Protection of Personal Information Bill. On the National Credit Act, we meet with the National Credit Regulator as and if required. We are currently engaging with a task team that has been set up by the National Credit Regulator to address the bottlenecks in the debt review process. Business Unity South Africa communicates to its members any government and regulatory authority concerns as regards businesses, and also provides opportunity for member organisations to meet with government and regulatory authority representatives, submit comments on draft laws and be represented at formal interactions between business and key government and regulatory representatives | The group submits comments on draft laws to the relevant government department or authority. Government representatives may ask for clarification on a submission or ask for suggested wording for draft laws. Where government and regulatory authorities approach the group with a concern or question they may have on the law, we will either meet with the government or regulatory representative in person or submit a written reply. Where it is recommended or advised that the group change a practice based on a government or regulatory authority’s interpretation of the law, this is discussed with the authority and we will take measures to ensure compliance |
Department of Labour |
|
Key issues of interest include implementation of employment equity plans, and ensuring compliance with legislation regarding PAYE, COIDA, skills levies and employment equity | We engage on a continuous basis with the DoL on various issues, including on our employment equity plans. We provide proof that the payments as required by relevant legislation have been completed |
Unions |
|
Issues pertaining to wage negotiations | We strive to gain consensus in terms of wage demands and we manage any workplace disputes and determine an agreement. Where it is policy related, this could necessitate a policy change |
Community |
|
The most frequent questions we deal with are (a) requests for information on how we fund from external stakeholders wanting to apply for funding and (b) questions from internal stakeholders wanting to know more about our CSI activities | NGO’s requesting CSI funding are referred to our CSI website for information. If they believe that their application meets our funding criteria, they can submit an application. These applications are screened by the CSI department. Shortlisted projects are visited before a final decision is made. All successful and unsuccessful applications are acknowledged in writing. Funding is usually allocated for a maximum period of three years. We engage with our internal stakeholders via annual communication campaigns involving various channels of communication. From time to time, staff are also invited to participate in or support CSI activities |
Retailers' Association |
|
Common issues relevant to the members of the association; this could be of a legislative, socio-economic nature and that could have a direct impact on our business | Active engagement on how to approach these matters as they will impact our business in order to determine whether a collaborative/business only approach should be determined |
Retail and Wholesale SETA's |
|
Common issues relevant to training and development within the wholesale and retail sector; this could be of a legislative, socio-economic nature and could have a direct impact on the skills levy refunds received by our business | Continuous engagement with the SETA regarding mandatory and discretionary skills levy refunds and requests for the approval of learnerships |
CCMA |
|
TIssues referred to the CCMA are that of dismissals, retrenchments or any disciplinary process where the employee is dissatisfied with the outcome | Defend the matter with specific focus on the substantive and procedural issues pertaining to those dismissals/disciplinary actions |
Labour Courts |
|
Review of arbitration awards as set down by the CCMA and the merits pertaining to that case; defence of the award as set down by the CCMA | Reasons for the dismissal of the award received at the CCMA; response to the applicant in defence of the award received at the CCMA |
