social and relationship capital

Clover has its own Corporate Social Investment programme, which the Group developed to support community projects. Clover identified all its material stakeholder groups and prioritises its stakeholder concerns as part of its risk management activities.

clover MaMa afrika

Good corporate citizenship

Clover prides itself in conducting business by taking into account our legal, ethical and economic responsibilities. While it is our goal to preserve profitability for our shareholders, we also aim to create higher standards of living and quality of life in the communities in which we operate.

• Corporate social and community investment 
  Clover Mama Afrika Trust was started eleven years ago in 2004. Over the past years, Clover Mama Afrika has established a reputation for being one of the country’s most innovative, effective and sustainable corporate investment programmes, bringing tangible benefits to the people it aims to uplift.

The Clover Mama Afrika initiative has set out to restore some of the best aspects of African tradition into modern life, such as caring for one another, passing on skills and protecting the young, the weak, the aged as well as HIV/ AIDS victims. Today, the Clover Mama Afrika project places a strong emphasis on assisting people in disadvantaged communities to learn to help themselves so that they may regain their pride, establish self- sustaining livelihoods and become valuable members of their communities and to society at large.

At the heart of the programme are the carefully chosen “mamas” who already act as pillars of strength in their communities. Hand-picked by Clover, the mamas are incredibly special ladies who already make a difference in the lives of the people around them and want to empower others to become self-sustaining too. The programme sees that they are trained in a variety of essential skills that can then be passed on to other community members. Cooking, baking, sewing, quilting, curio making, hair care and food gardening are just some of the training they receive and significantly, they are also presented with the necessary tools, equipment and infrastructure to create an income for their communities on the back of their newly acquired skills. Currently, the Clover Mama Afrika project has 41 Mamas countrywide who collectively care for over 15 500 children and more than 2 500 elderly across the whole of South Africa.

Value drivers of the Clover Mama Afrika initiative

• Skills selection centres

  Relevant, employable and marketable skills are aligned to the needs of each respective community to ensure that the centres become self-sustainable. After skills-training, Clover Mama Afrika provides start-up equipment to allow for immediate income generation and passing on of skills.

• Site improvement

  Clover Mama Afrika assists communities with the repairs and renovations to basic facilities such as appropriate ablution facilities. It is important for us to create a safe haven for all the children in the care of a Clover Mama Afrika.

• Monitoring and Evaluation

  Regular monitoring and evaluation of each self- help project is implemented, which allows for the identification of strengths and weaknesses on an individual basis. Immediate support and assistance is provided where necessary.

• Partners

  Clover is of the firm belief that the best way for Clover Mama Afrika to have the greatest possible impact is through partnership and collaboration with other organisations and individuals that want to embed sustainability into the fabric of South African society. Besides, the wide-ranging needs of South African communities require committed teamwork from as many people as possible who have the means to make things happen for those who are less fortunate.

Hugely important to the success of Clover Mama Afrika is the open-hearted attitude of the programme’s corporate partners and sponsors who assist to make it meaningful for so many needy people across South Africa. Professor Elain Vlok, Clover’s manager of Corporate Services who drives Clover Mama Afrika with passion, dedication and insight, believes that the programme’s on-going success is built on a generosity of spirit that is at the same time, the very essence of “Ubuntu”.

Blue chip partners which contribute to the success of Clover Mama Afrika and co-fund 40% of the Trust’s expenses include:

• Expeditors International;
• HCI Foundation;
• Eqstra Holdings Limited; and
• Mix Telematics

recipients of the clover MaMa afrika project

Below is an illustration of the number of people who benefitted from the Clover Mama Afrika project during the 2014 and 2015 year ends:

Skills training	Members  trained  2014	Members  trained  2015	Operating  centres  2014	Operating  centres  2015	Skills  transferred  2014	Skills  transferred  2015	Employed  member  earning  wages/  salaries as  reported  2014	Employed  member  earning  wages/  salaries as  reported  2015
Sewing	107	115	28	26	1 501	1 707	60	60
Bread Baking	562	577	26	24	1 563	1 880	92	98
Cooking & baking	82	84	22	22	762	970	63	53
Food gardens*	557	557	23	21	684	744	28	40
Quilting	42	48	14	13	295	333	15	18
Crochet & knitting	28	28	15	16	454	570	16	15
Hair-dressing	18	27	3	4	67	118	13	17
Pottery	1	1	1	1	20	20	3	3

*	Food gardens feed up to well over 5 500 members per day.

Value-added skills training

Skills training	Members  trained  2014	Members  trained  2015	Operating  centres  2014	Operating  centres  2015	Skills  transferred  2014	Skills  transferred  2015	Employed  member  earning  wages/  salaries as  reported  2014	Employed  member  earning  wages/  salaries as  reported  2015
Poultry egg laying	10	12	3	3	24	45	11	9
Beadwork	21	21	16	15	319	338	22	22
Arts	40	40	26	23	526	574	21	17
Flower arrangement	39	41	12	13	523	576	19	15
Mobile Phones	79	79	26	26	–	–	–	–
Save a child	175	125	13	13	–	–	–	–
Welding	8	8	8	7	–	–	–	–
MKI health information	18	–	18	–	–	–	–	–
Basic Admin/ Finance	27	45	27	27	–	–	–	–
Totals	1 764	1 808	245	254	6 738	7 875	363	367

AWARDS

Clover Mama Afrika has won prestigious awards since the inception of the project.

2005			PMR Diamond Arrow Award 2005 – PRISA Prism Gold Award Proudly SA Homegrown – Bridge Builder of the Year Award
2006			Proudly SA Homegrown – Corporate Social Investment of the Year Award
2008			PMR Gold Arrow Award
2009			PMR overall Diamond Arrow Award 2010 FoodBev SETA Baobab Award
2010			PMR overall Diamond Arrow Award 2010 Mail & Guardian Investing in the Future Award – Corporate category
2011			Proudly SA Homegrown – CSI Champion of the Year Award
2012			PMR Diamond Arrow Award
2013			2nd Annual SA Premier Business Awards – Rural Development
2014			PMR Diamond Arrow Award
2015			PMR Diamond Arrow Award

Clover Mama Afrika has positioned itself as a successful, award winning example of a sustainable and effective CSI project, which is making a real difference in the lives of many needy South Africans.

Based on the most recent B-BBEE verification performed by Middle and Partners, Clover achieved full allocation of available points under the Socio-Economic Development element of the B-BBEE balanced scorecard.

As a respected JSE-listed company with a century-long history of serving farmers and the public through a wide range of world class “Way Better” dairy and beverage products, Clover is committed to maintaining Clover Mama Afrika’s status as a corporate social investment programme that makes a real difference. In line with its commitment to the programme, Clover also ensures that Clover Mama Afrika meets the highest levels of transparency and corporate governance.

	Rand amount spent for the 30 June 2015 financial year
Education/Training/Skills development	2 867 070
Infrastructure Development (site improvements and communication)	1 458 855
Other charitable givings	869 461
Donation of Clover products (gifts in kind)	95 588

Please note that 2015 is the base year and comparatives are therefore not available.

Past, present and future of Clover Mama AfriKa

governing stakeholder relationships/consuMer relationships

Throughout the 2015 financial year the Group has actively engaged with all its key stakeholders. Management have identified all material stakeholders as well as their legitimate interests in and expectations of the Group on a continuous basis as stakeholders’ interests in the Group are dynamic and subject to change.

Once stakeholders are identified, management decides through consultation with the various stakeholder groups how to further engage with each constituency. This process forms part of the Group’s risk management framework. As a result of Clover’s diverse business model, Clover interacts through a wide range of functions within the business with various stakeholder groupings on an ongoing basis. The Clover stakeholders that have been identified are all stakeholder groups that can materially influence the attainment of Clover’s strategic objectives, but also more specifically it is those groups, individuals or entities, who can be affected by the actions and operations of Clover or, on the contrary, whose operations can materially impact on Clover’s operations. Amongst all the major stakeholder groupings videntified, Clover has a distinct criterion for its strategic stakeholder partners whose relationships are required for the Group to attain its future strategic objectives.

Click the image below to enlarge

Stakeholder Group	How we engage with our stakeholders	Their contribution to value creation	What our stakeholders expect from us	What is key for our stakeholders	Method of Governance
Communities, traditional and civic society	Direct interaction through various corporate social investment initiatives and environmental campaigns in various communities	Participation with the community affords Clover the opportunity to understand their needs and to further align our business in a way that improves the lives of our communities at large	Ongoing commitment to our core strategic social investment initiatives adding to the wellbeing of the community	consideration of community interests; corporate social investment and donations; preferential procurement policy; and Clover Mama Afrika	Corporate Governance policies
Consumers	Promotions and community-based initiatives, social media, Clover consumer centre, Consumer Goods Council	Loyal consumers continued support of their most admired brands and trusted products	Providing high quality and trusted products of their most admired brands in fulfilling consumers’ needs	research in gaining consumer insights in product categories; regular communication on all core brands via social media; effective consumer centre dealing with complaints and enquiries; GDA table (Guideline daily amount) informs consumers of nutritional values in Clover products; cost competitiveness of products; food safety standards; and developing products seen as healthy alternatives	Social media policy, Consumer crises policy, Competition Law policy, product quality assurance programmes
Customers/ trade	Meetings, conferences and workshops, CSC taking orders from trade	Extensive retailer footprint providing the basis for continued growth. Clover’s brand expansion through retail expansion into Africa	Providing good quality products at competitive prices	quality of products; effective product stewardship; effective merchandising services; valued partnerships to drive efficiency and continued future growth; promotional activities; trading terms; category expansion; cost efficiencies; and ensuring optimum stock levels at retail outlets	Service level agreements
Employees/ Management	Intranet, CE briefs, management and general staff briefings, Corporate bi-monthly newsletter (In Clover), workshops and conferences, training programmes, notice boards, intranet communication and performance reviews	Employees acting in accordance with Clover’s values of respect, integrity, fairness and responsibility form the foundation of our business. By providing Clover employees timely updated business information and relevant strategic information, Clover would embed its strategy while achieving company objectives	A stimulating and gratifying work environment, while offering prospects to meet career growth aspirations	health and safety; ongoing training and development; open communication between employees and managers; transformation in line with EE Plan; and access to HIV counselling and employee wellness programmes.	SHE Policy, EE Plan Employment policy
Government and regulating authorities	Personal meetings, written and verbal communication, through business organisations, Parliamentary portfolio committees	Government gives us our licence to operate and provides the enabling regulatory framework	Continued contribution to the economic growth and social upliftment of the communities in which we operate. Exercise good corporate governance practices while ensuring compliance with all applicable legislation	increased contribution to the South African economy, including job creation and youth development; good corporate citizenship; timeous payments of taxes; empowerment, transformation and adherence to the revised BEE Codes; reduction of energy and water consumption; disclosure and management of carbon emissions; and provide input on policy changes in the agricultural sector and food security.	Public participation
Insurers	Meetings and site surveys	Ensure Clover has insurance cover for material insurable loss events	Open and transparent communication enabling insurers to assess risk appropriately	Proactively ensure that sites conform to legislative requirements and best practice fire safety requirements.
Media	Media statements and briefings, Social media pages and site visits	The media contributes in sustaining our brand reputation and increase awareness on new products, community development programmes and changes in our business strategy	Good Corporate Citizenship	transparent and responsible reporting; and non-compliance to legislation.	Protocol to respond to media set in social media policy
Milk producers	Circulars, regional individual and group meetings with producers, media and the Clover producer forums	Clover’s milk producers provide good quality raw milk used in manufacturing of our dairy products	A stable market for milk produced for delivery to Clover	large fluctuations in milk prices; increases in farm overhead costs; and land reform.	Producer agreements
Principals	Contract and service level agreements, meetings, transactional information integrated via respective ERP systems	Participation in growing the footprint of retailers while achieving economies of scale and reducing costs in the supply chain	Timely delivery of ordered product with professional in store merchandising	Clover not meeting the agreed upon service levels in distribution and merchandising activities	Service level agreements
Refer to Report on Governance, Risk and Compliance where this has been addressed. Shareholders, investors and analysts	Investor presentations and road shows, circulars to shareholders, Integrated Annual Report, Annual General Meeting, Press releases, announcements and notifications through SENS, Clover website and site visits	Investors provide the financial capital necessary to sustain growth. Shareholders are encouraged to attend the Company’s Annual General Meeting to vote on resolutions and to discuss relevant issues with the Company’s Directors and management	Providing sustained returns on investment by achieving business objectives through delivery on embedded strategy, sound risk management identifying strategic growth opportunities and good governance practice	delivering consistently superior financial results for sustainable growth; leadership and strategic direction seizing strategic opportunities; policies and procedures ensuring governance i.e. ERM Policy; corporate governance and ethics; progress with project pipeline and future growth projects; capital expenditure for current and future periods; effectiveness of risk management process; and stability of IT systems.	Price sensitive information policy, Insider trading policy, ERM policy, Governance policy and Social and Ethics Policy
Suppliers and service provider	Supplier meetings, site visits, performance evaluation and audits, business association meetings	Our suppliers provide us with good quality raw materials and services that enable us to produce quality products for our consumers	Conducting business in a transparent manner that is mutually beneficial and sustainable	long-term security of supply; effectiveness of planned procureto- pay process; preferential procurement; and efficiency with imports.	Procurement policies
Trade unions	Regular meetings with Unions and collective bargaining forums	To engage organised labour in a positive manner on matters affecting their members as well as matters of mutual interest	Positive work relationships in dealing with matters sensibly during the negotiation process	Provision of competitive remuneration packages and safe working conditions	Exco, collective bargaining agreements

Consumer relationships, advertising, public relations and compliance to consumer protection laws

Regulation 43(5)(a)(iv) of the Companies Act (Act No 71 of 2008) requires companies to monitor their activities around consumer relationships including the Company’s advertising, public relations and compliance with consumer protection laws.

Consumer relations are managed through the Clover Consumer Centre (“CCC”). The CCC strives to consistently service our consumers’ expectations and needs by demonstrating the required respect for their needs and opinions. All complaints and enquiries are dealt with professionally by trained consultants to ensure that the image of Clover, Clover’s brand names and services are protected, while ensuring compliance with the Consumer Protection Act. As required by the Consumer Protection Act, a procedure is in place and will be applied in situations where a serious risk or threat exists for Clover in general, Clover’s brand names or products, Clover’s personnel or any possible environmental impact.

Type of call	Description
Priority 1	Critical calls Complaint which can: damage the image of Clover or the Clover brand name; threaten the health or safety of the consumer and/or Clover personnel; hold a contamination threat to the environment; result in a consumer suffering damages as a result of a Clover product; possibly result in negative publication in the media; possibly result in legal action against Clover; and possibly result in the consumer referring the matter to the Consumer Council
Priority 2	Client requests feedback in writing The complaint receives urgent attention and the consumer is kept informed by the head of the Consumer Centre until such time as the investigation is completed and complies with the requirements of the consumer.
Priority 3	Client wants to speak with manager Complaints, which are not satisfactorily dealt with by the consultant and where the consumer insists on communicating with the head of the Consumer Centre, the complaint must be escalated to her for her attention.
Priority 4	Completed by consultants Complaints are attended to by the consultant with the information at hand and no further escalation of the complaint/incident is necessary.

During the year under review, Adams and Adams conducted a review of all our product labelling and corrective measures have been implemented where risks were identified.

Public and Investor relations

Public Relations within Clover is managed through the Corporate Services department. No Clover employee may comment or conduct any interviews with the media on behalf of Clover. This function is managed by Dr. Chris Lerm who is assisted by the Company Secretary, Jacques van Heerden as well as Prof Elain Vlok (Manager: Corporate Services) when required. With regards to Investor relations, this function is delegated to Johann Vorster (Chief Executive), Jacques Botha (Chief Financial Officer) and Jacques van Heerden (Company Secretary) who are responsible for all investor communications with the assistance of an external agency.

Compliance with Consumer Protection Laws

The Group has taken proactive steps to ensure that it is fully prepared for the application of the Consumer Protection Act (“CPA”). High-level induction programmes to key individuals in the Group on the potential effect of the application of the CPA are ongoing. The process of establishing a CPA Centre of Excellence is in progress which will enable Clover to maintain its commitment towards compliance with laws and regulations. The marketing department provides the Social and Ethics Committee with regular reports on its activities to enable the Social and Ethics Committee to monitor compliance with the CPA. Furthermore logs are maintained for any

promotional and trade coupon promotions in line with the CPA. The Company Secretary together with the Group Manager: Product Innovation and Technology are responsible for the annual review of the company’s compliance with regards to the following acts:

• consumer Protection Act;
• food stuff, Cosmetics and Disinfectants Act;
• other labelling legislation; and
• various other acts that impact our stakeholders.

Please refer to the Report on Governance, Risk and Compliance where this has been discussed in detail here.