Our business

Stakeholder engagement

Our stakeholders are defined as entities or individuals that may be affected by the Group's activities, products and services, as well as those whose actions can be reasonably expected to affect the ability of the Group to successfully implement our strategic objectives.

Our stakeholders include a wide range of groups and individuals with varying levels of involvement in the business and diverse and sometimes conflicting interests and concerns that need to be balanced over time.

Our key relationships

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  • Owners – share owners expect favourable long-term returns on their investments in the Group and have the inalienable right to exercise effective ownership over their investments. Any dilution of this ownership right by management for whatever reason will irretrievably undermine our corporate integrity.
  • Investment community – research analysts facilitate an understanding of the Group for our owners and prospective investors, who provide the capital we need to deliver our strategy. Collectively, the investment community supports the effective functioning of equity markets, which is essential to attracting capital at a fair price.
  • Debt providers – we work with debt providers to access debt funding at competitive rates in different jurisdictions, facilitated by our balance sheet position.

Key issues and concerns raised

  • Our response to a significantly weaker domestic outlook and the impact of slower new vehicle sales.
  • Our ability to fund the growth strategy.
  • The impact of foreign currency volatility on margins, volumes and related product pricing.
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  • Civil society, non-profit organisations and communities – our social licence to operate depends on being a good corporate citizen and maintaining constructive relationships with the communities in which we operate.
  • Media – provides a channel of communication with our stakeholders and influences their opinions about the credibility of our investment proposition and reputation.

Key issues and concerns raised

  • Skills development, job creation and enterprise and community development.
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  • Government departments and regulators – the Group is subject to a complex range of regulations across our markets.
  • Industry associations – our memberships enable us to advocate for more effective regulatory policies.

Key issues and concerns raised

  • General compliance with legal and regulatory requirements, with a particular focus on the new financial sector regulatory framework, consumer protection, cyber security and the protection of intangible assets.
  • Support transformation of the automotive industry in South Africa.
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  • Customers – our customers' needs drive the nature of the products and services we offer and the way in which we deliver them. Strong competition and changes in operating contexts require that we strengthen our customer focus and unlock value for them.
  • Suppliers and OEMs – our suppliers are critical to our customer relationships given their role in the quality and delivery of products and services, as well as their adherence to our ethical standards. A number of OEMs have specific requirements on how we retail their products.
  • Business partners – strategic partnerships, including finance partners, B-BBEE partners and joint venture partners, enable a greater reach for our products and services.

Key issues and concerns raised

  • Product pricing and availability.
  • Transparency during the vehicle purchasing process and excessive levels of paperwork.
  • Customer communication, particularly on parts and vehicle delivery dates, and service completion times.
  • Meeting OEM customer satisfaction targets.
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  • Employees – every employee contributes skills, perspective and energy to building, maintaining and deepening the relationships with our customers and other stakeholders on which we depend. Providing a high-quality working environment and development interventions and our ability to attract and retain talent are key imperatives.
  • Organised labour – many of our employees choose union representation in exercising their rights. While we respect their choice to do so, it can never diminish our obligation to interact directly with them as individuals in a fair, open and respectful manner.

Key issues and concerns raised

  • Effective and fair career management processes.
  • Further improvement in the transformation of executive and senior and middle management are part of the executive strategy of the business.
  • Market-related remuneration, parity of remuneration and clearer links between pay and performance.
  • Investment in targeted leadership development programmes.

 

Stakeholder engagement