Broad-based black economic empowerment

BEE represents both a risk and an opportunity. We supply government enterprises, large industrial groups and the mining industry, all of which are sensitive to the BEE status of their suppliers. Our response is to play an active role in improving not only our own BEE score, but also the scores of all businesses in our value chain. We utilise an electronic procurement tool that undertakes a BBBEE status-check and helps suppliers improve their empowerment credentials.

Overall performance

As a holding company, Bidvest has a B Rating and is a Level 5 Contributor to BBBEE. In the prior year, we reported the requirement for Bidvest subsidiaries to obtain individual ratings under the codes of good practice. The latest results are given in the accompanying table.

Performance by divisions

Please refer to the sustainability segment of the Bidvest annual report for further details on our BEE performance
(click here to view).

The Bidvest Charter for directors and management

In November 2003, Bidvest and our BEE partner Dinatla Investment Holdings (Dinatla) adopted the Bidvest Charter as the transformation vision for the Group. Charter signatories represent the Bidvest board, the executives of Bidvest and the management of Bidvest subsidiaries.

The Bidvest Charter describes our approach and commitment to transformation. The Charter guides what we do to transform Bidvest within the context of BBBEE. It is aligned with the DTI codes of good practice and will be reviewed regularly to ensure continued alignment with evolving legislation.

The vision of the Bidvest Charter is to transform the culture of the business, both on the inside and through the supply chain. By increasing the participation of black people in the economy of South Africa, we can achieve a more stable economic environment and a larger market within which to do business.

In line with Bidvest’s decentralised approach, individual companies implement strategy, formulating their own plans while undertaking specific initiatives.

The transformation committee, made up of executive and non-executive directors of Bidvest, reviews transformation progress against the Bidvest Charter, recommends transformation policies and strategies to the board. Effective communication and execution of BEE policies are ensured by a sub-committee, the transformation working committee, made up of senior divisional management.

Significant progress has been made migrating various company reporting initiatives onto the Group-wide sustainability data toolkit, with the aim of achieving a single channel for data collection, reporting, analysis and planning. A self-assessment tool enables companies to continually measure progress and identify gaps and opportunities for achieving targets.

Click here to download [PDF - 330kb] details of our transformation "blueprint" and to download our BEE certificate click here [PDF - 535kb].

BEE assurance

Click here to download [PDF - 330kb] the full text of The Bidvest Charter. For further information on our BEE initiatives and status in areas such as ownership and control, employment equity and skills development click here.

A significant initiative aimed at accelerating the development of black candidates is the Bidvest Academy. (click here to view).

Preferential procurement

Preferential procurement is an important element of the scorecard, accounting for 20% of the overall score. Preferential procurement by the Group increased from R8,4 billion to R17,4 billion. The provision of BEE supplier certificates has improved resulting in a significant increase in preferential procurement spend.

To improve Bidvest’s score, the Group’s supply chain needs to make a bigger contribution towards overall BEE transformation and strategic purchasing needs to target small, black-owned or black women-owned businesses. The flow-through effect is intended to profoundly transform the economy.

The challenge for Bidvest, as for all companies in South Africa, is to establish the contribution levels of its supplier base. Given time-lags in the process, company ratings will always be understated. Suppliers’ scores need to be assured by verification agencies, which in turn require accreditation – a process initiated only recently.

Of concern is the number of key suppliers that have either not made sufficient progress towards transformation or have not yet acquired an accredited rating. The high value of this procurement turnover naturally impairs Bidvest’s procurement progress. Bidvest has made it clear to all suppliers that greater efforts at compliance with Bidvest procurement policy are expected and has made available systems (including an internet-based procurement tool) to facilitate the process. In cases where suppliers remain non-compliant, Bidvest will look to change to suppliers who are making a committed effort to transform. Administration has been improved to ensure that individual supplier information and records are presentable for BEE verification.

Socio-economic and enterprise development

We recognise our responsibility towards the families of our employees and our duty towards communities that are affected by our operations. Many communities depend on the wages created by Bidvest businesses, while in turn offering a pool of fresh talent eager to be developed into skilled contributors to the ongoing success of these businesses.

Bidvest therefore makes investments in both social-economic (primarily educational initiatives) and enterprise development, reinforcing the future sustainability of both society and its own businesses. These investments are identified and coordinated independently by the divisions and their business units, allowing a closer and more direct link between the businesses, their employees and the communities concerned.

• Namsov uses its capital and expertise in a highly successful joint venture with four smaller local fishing companies that own two boats harvesting horse mackerel
• Bid Auto achieved a milestone with the launch of 21 parts delivery vehicles owned by former employees
• Bidfood Speciality sold its delivery fleet to a small entrepreneur who makes all Durban deliveries
• Bidfreight runs an intermodal owner-driver scheme

Corporate social investment is defined as socio-economic development under the codes of good practice. Bidvest’s total CSI spend is R33,4 million of which R3,0 million is donated to the Dinatla Trust, formed to assist needy employees with education for their dependants. (click here to view)

• tier one – corporate office supports a number of overarching worthy causes
• tier two – individual divisions support their own flagship projects
• tier three – individual businesses support community-based projects in their operational areas, focusing on a select number of projects

The guidelines stipulate that monitoring and evaluation indicators be used to assess progress and success. Staff members responsible for these programmes regularly assess the impact and outcomes of their SED / CSI contributions and adjust programmes accordingly.

Corporate encourages and guides societal investment by establishing and publishing targets under the DTI’s codes, sharing success stories in Bidvoice, on the website, intranet, in reports, at road-shows and company gatherings. Improved reporting procedures now include a database of all sponsored projects throughout the Group. A Group strategy has been drafted which encourages SED / CSI investment at three levels: Bidvest corporate, divisional and within the community via each business unit. SEC / CSI is focused mainly on education programmes and local community development. In 2009, Voltex built four classrooms for a rural school in Hammanskraal, while Namsov built facilities for schools in Walvis Bay. McCarthy’s Rally to Read is the Group’s flagship project. The literacy programme delivers books and reading material to thousands of rural schoolchildren.