Stakeholder relations

As a business embedded in emerging markets and embracing a growing ecosystem, the impact of our operations extends beyond our commercial partners, customers, and employees. Providers of capital, communities, the media, government, and non-governmental organisations may each have differing viewpoints and expectations of our business. We recognise that we depend on robust relationships with all our stakeholders to grow our business and provide value to individuals, families, businesses, and society.

Principles that underpin our stakeholder relations

Collaboration and regular interaction with all key stakeholder groups are essential to the Group’s
long-term resilience.
Successful stakeholder engagement requires far more than merely communicating ‘to’ various stakeholder groups. Two-way dialogue is imperative, especially since Blue Label considers its various stakeholders as key partners in its endeavours.
Our processes are designed to be both proactive in terms of engagement and responsive to any attempt by stakeholders to engage with us.
As the Group expands, stakeholder identification and prioritisation are an ongoing process.

Our stakeholder engagement process

Blue Label’s stakeholder engagement policy, a requirement of King IV, outlines our approach to communicating and working with our stakeholders. Engagement is an integral part of developing an understanding of our stakeholders’ needs, interests and expectations and assists Blue Label with strategic, sustainable decision-making.

While the Blue Label Board is ultimately responsible for stakeholder engagement, the process of engaging with stakeholders is decentralised.

Every Group company and business area deals directly with complaints from stakeholders and reports regularly to the Executive Management and the Board on its stakeholder relations. This ensures that the Group’s various business units take responsibility for maintaining impactful relationships that deliver mutual benefits.

In identifying and prioritising stakeholders, the Board considers the following criteria:

groupings which interact with the Group or are directly or indirectly affected by the Group’s activities; and
groupings which have a positive or negative impact on our ability to operate.

Exco assesses the outcome, with reference to the ecosystem in which the business as a whole operates.

Managing stakeholder risks and opportunities is performed by completion of a risk assessment as part of the overall enterprise risk management process. This enables management to deal effectively with issues and opportunities that arise while strengthening our stakeholder engagement.

Why we engage

Needs and expectations

Methods of engagement

Strategic outcomes and responses

Employees

Our greatest competitive advantage and key drivers of our strategy through their collective skills, experiences and ideas, ensuring that our objectives are reached

Providing strategic direction
Informing about Group's activities
Remaining an employer of choice that provides a safe, positive and inspiring working environment
Understanding and responding to the needs and concerns of our employees

A pleasant, safe and productive working environment supported by flexible work practices
Updates on the performance of the business
Career development and advancement opportunities
Frequent information, direction and encouragement around the remote work environment

A robust combination of face-to face, written, digital and broadcast communications
Ongoing and daily engagement at all levels as required by employees, supported by a Group employee and engagement plan
Regular, direct communication between managers, teams and individuals
E-mails and intranet communications
Employee functions

We engaged our staff on the riots and floods in KwaZulu-Natal and they responded through donations to families in need.

An employee engagement survey found that our employees were largely happy in the workplace.

Investment in staff development and training.

For more information about our human capital.

Customers

They buy our products, procure our services and in doing so, provide the primary source of our revenue, give us a reason to exist

Improved understanding of them, their aspirations, businesses and communication needs
Providing appropriate products and value-adding services
Ensuring that we maintain the high-service levels they expect and deserve
Informing product development and prioritisation
Developing products that service our customers' evolving technology needs

Access to world-class innovative and flexible solutions and services
Access to mobile transactional services that are secure, simple, convenient and efficient
Information about changes in operational procedure brought about by the COVID-19 lockdown and the floods and riots in KwaZulu-Natal

A fully functioning remote Customer Interaction Centre to deal with any and all problems faced by customers
Face-to-face formal and online meetings
Customer satisfaction surveys
Social media interaction
The Group has a customer relationship management (CRM) system, self-help facilities, and dedicated sales and technical consultants to enhance its customer engagement service

Blue Label has managed to increase gross revenue and gross profit.

We maintained open lines of communication to address any concerns related to changes in operational procedure brought about by the COVID-19 lockdown and other disruptions.

Strong growth in products launched.

Shareholders

Providers of capital needed for long-term growth, expecting returns based on sustainable and sound business practices while allowing us to contribute positively to our customers and the communities in which we operate

Providing current and future shareholders with relevant and timeous information, ensuring Blue Label shares are appropriately valued
Managing shareholder expectations and reputational risk
Maintaining strong relationships, keeping abreast of market developments and informing our shareholder targeting strategy
Ensuring good governance to deepen the trust placed in us and our brand
Getting feedback that informs our strategy, business operations and how we govern our business

To receive relevant and timeous information on our prospects and financial and non-financial performance so that shareholders can value and assign appropriate ratings
To understand our financial performance
To gain insight into our strategy, operations and management
Updates on the progress and completion of the Cell C recapitalisation transaction
Transparent reporting and disclosures

Conference calls
Roadshows and investor days
Annual and interim results announcements and roadshows
Annual General Meeting
Daily e-mails
Integrated annual reports
Meetings with Executive and Senior Management
SENS announcements

Shareholders have been encouraged by the success of our back-to-basics strategy.

The market has been regularly informed about development with regard to the Cell C recapitalisation transaction.

Investor interaction has increased thanks to virtual meetings.

Regulators

Meeting all statutory, legal and regulatory obligations to ensure continued operations and improve social acceptance of our products and services in a way that builds trust with our customers and suppliers

Maintaining open, honest and transparent relationships and ensuring compliance with all legal and regulatory requirements
Retaining our various operating licences and minimising our operational risk

The Group's regulatory compliance
Information about the soundness and stability of Blue Label

Various industry and regulatory forums
Meetings between regulators and our Board and management
One-on-one discussions with various executive officials

Compliance with all statutory and regulatory requirements.

Good relationships with all relevant regulators.

Government

Policy, regulation, decisions and expectations that impact directly on our business activities, products and strategy and we constantly explore opportunities to partner in order to influence and make a positive contribution in line with government's goals

Cementing our social licence to operate
Building and strengthening relationships with government, both as a partner in the development of the country and as a customer
Providing input into legislative development processes that will affect the economy, our activities and operations
Reaffirming our commitment to public sector business development
Participating visibly in, and being a partner to, the transformation of South Africa and the communications sector
Partnering in increasing economic growth and the reduction of inequality and unemployment

Information about Blue Label as a business and ways in which we can be of assistance to individuals and the economy of South Africa
The tracing and recovery of lost or stolen electricity revenue

Participation on various platforms with government
Ad hoc engagements with national and provincial departments

Working with authorities to explore ways to trace and recover lost or stolen electricity revenue.

Partnering with government on projects to alleviate youth unemployment and increase skills development and training.

Media

Managing our brand and reputation through regular engagement and increasing awareness around our products and services

Leveraging the reach and influence of media channels
Sharing our business and investment story with stakeholders
Communicating with relevant stakeholders and the broader public with a view to having a positive influence on behaviour that will lead to desired business results
Protecting and managing our reputation

Information about developments in the communications sector, and Blue Label specifically
Information about Blue Label's contribution to the South African economy and our products and services
Information that empowers their audiences to make informed financial decisions

Proactive, scheduled engagements
Ad hoc meetings with Executive and Senior Management
Launches of Blue Label products and services
Interviews with key business media on relevant financial reporting dates
Daily telephone and e-mail responses to media enquiries

Proactive engagement on the recapitalisation of Cell C, financial performance, and new innovation in the Group.

Regular engagement with editors of agencies that cover our operations and activities.

Increased understanding among journalists and editors about what we do and who we are.

Business partners and suppliers

Custodians of our reputation and a critical link between our customers and us, playing a vital role in attracting new business and in retaining existing customers

Obtaining products or services required for conducting our business
Maintaining an ideal and timeous supply of goods and services for our operations
Encouraging responsible practices across our supply chain, including
B-BBEE, local procurement, supplier conduct, and environmental considerations
Including critical suppliers in cross-functional teams to contribute expertise and advice before specifications are developed for products or services

Guidance and methodology for continuing business during the COVID-19 lockdown and the riots and floods in KwaZulu-Natal
Information about changes to the B-BBEE Codes of Good Practice, and to trading arrangements in terms of our procurement systems and enterprise resource planning (ERP)
To be associated with a brand that delivers on its promise

Supplier education workshops, indabas, and fairs
One-on-one negotiations and meetings

The provision of our core products of airtime, data, electricity, and financial services has remained uninterrupted during the COVID-19 lockdown and during the KwaZulu-Natal riots and floods.

Win-win strategic partnerships with those who enable us to deliver our products and broaden our reach.