Vodacom Integrated Report 2018

41 / 98

BBBEE results for Vodacom Group
We achieved significant improvement this year in scores across the majority of the elements, resulting in an overall increase in score of
6.12 points.
Scoring element
Target
points
Achieved
points
2018
Achieved
points
2017 Variance
Ownership 25 16.20 16.17 0.03
Management control 23 15.72 14.79 0.93
Board representation 8 5.83 5.33 0.50
Top management representation 5 4.33 4.33 –
Employment equity 10 5.56 5.13 0.43
Skills development 20 19.55 17.27 2.28
Enterprise and supplier development 50 44.79 41.68 3.11
Procurement 25 20.55 18.00 2.55
Supplier development 10 7.54 8.68 (1.14)
Enterprise development 15 16.70 15.00 1.70
Socioeconomic development 12 11.77 12.00 (0.23)
Total 130 108.03 101.91 6.12
Vodacom is committed to transformation through the implementation of Broad-Based
Black Economic Empowerment (BBBEE).
This commitment was recognised this year when Vodacom Group was awarded the Independent Top Empowered Companies Award for
the Most Empowered Black-Managed Company, as well as achieving a recognition award from the BBBEE Commission for being the first
company in South Africa to report fronting practices identified through its procurement processes.
Vodacom South Africa exceeded its target of Level 4 and attained a Level 3 BBBEE status, while its subsidiary Stortech retained its
Level 1 rating. This resulted in the Group having a significant improvement in its overall scorecard points, moving from 101.91 points
to 108.03 points.
Vodacom Group on track to transformational heights
Our Report of the Social and Ethics
Committee 2018
Vodacom’s separate Report of the Social and Ethics Committee
2018 provides a more detailed review of the activities that we
are taking to accelerate socioeconomic transformation in the
markets in which we operate. The report reviews the progress
we have made in ‘empowering a connected society’, reflecting
on our performance in implementing seven of the UN
Sustainable Development Goals, and it assesses our activities in ‘being a leading
digital company’ by ensuring our operations are responsible, ethical and
accountable.
The Report of the Social and Ethics Committee
is available at
Ownership
The Group has an effective black ownership of 17.56%, a nominal
increase from the previous year of 17.19%, resulting in a score
increase of 0.03 points – 16.20 out of 25.
Management control
The Group exceeded the previous year’s score of 14.79, with a
score of 15.72 out of 23, as a result of transformational changes in
its occupational levels under employment equity.
Skills development
Our consolidated training spend increased from R175 million to
R248 million, with more than R8.5 million invested in the
development of black youth living with disabilities, R5 million
more than the prior year. This resulted in an impressive total score
of 19.55 out of 20 points.
Enterprise and supplier development
This element has three sub-sets: procurement, supplier
development (2% net profit after tax (NPAT) spend target),
and enterprise development (3% NPAT spend target). Under
procurement, Vodacom’s commitment is demonstrated in the
shift of spend to BBBEE-status suppliers and black-owned
suppliers.
We spent R173 million on supplier development, up from
R151 million in the prior year, targeted on developing SMMEs
within Vodacom’s supplier base; this included investing
R14 million towards the transformation of our retail franchisee
base, which resulted in 24 Vodacom shops changing ownership
to black individuals. Under enterprise development, more than
R388 million was invested in developing black-owned ICT
SMMEs outside of Vodacom’s business. The collective score for
this element was 44.79 out of 50 – three points higher than the
previous year.
Socioeconomic development
The Group fell slightly short of obtaining full points.
Reportof
theSocial
andEthics
Committee
2018
The future isexciting.
Ready?
37
Our business Our performance Our governance Administration