Stakeholder engagement

Our stakeholders include a wide range of groups and individuals who may be affected by our activities, products and services, and whose actions can be reasonably expected to affect our ability to successfully implement our strategic objectives. Our stakeholder groups have varying levels of involvement in the business, and diverse and sometimes conflicting interests and concerns that need to be balanced over time.

1Business relationships

  • 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.
  • OEMs – many OEMs have specific requirements on how we retail their products and 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.
  • Suppliers – our suppliers, and their adherence to our ethical standards, are critical to our customer relationships given their role in enabling the quality and delivery of our products and services.
  • Business partners – strategic partnerships, including finance partners, broad-based black economic empowerment (B-BBEE) partners and joint venture partners, enable a greater reach for our products and services.
Key issues and concerns raised
  • Ensuring transparency throughout the vehicle purchasing process.
  • Value for money vehicles, parts and services that meet customer affordability needs.
  • Customer communication focusing on vehicle availability, as well as parts and vehicle delivery dates and service completion times.
  • Meeting OEM customer satisfaction targets.

 

2Our people

  • 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 with career development interventions, as well as 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
  • Safe working environment, particularly during COVID-19.
  • Retrenchments caused by the need to rightsize operations.
  • Diverse and inclusive work culture that supports transformation.

 

3Financial capital relationships

  • 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
  • Ability to fund the growth strategy.
  • Response to weaker domestic outlook and declining new vehicle sales.
  • The impact of foreign currency volatility on margins, volumes and related product pricing.
  • Response to economic impact of COVID-19 on the reduced profitability, higher debt levels and longer-term sustainability.

4Regulatory relationships

  • 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.
  • Support transformation of the automotive industry in South Africa.
  • Response to cyber-security risks.
  • High duties, ad valorem taxes and the carbon tax.
mechanic

5Societal relationships

  • Civil society 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
  • How the Group is addressing climate change risk.
  • Skills development, job creation and enterprise and community development.
  • Job creation and meaningful employment.
  • Procurement strategies that support transformation.

 

LaptopIcon More information on our responses is provided in our material priorities section.