How clover creates value and reporting on the six capitals
- How Clover creates value today
- Overview of Clover’s value creation process
- Reporting on the six capitals
- Clover’s business model
- Human capital
- Natural capital
- Manufactured capital
- Intellectual capital
- Social and relationship capital
- Financial capital
- How Clover sustains value for Tomorrow
- Clover’s future value creation philosophy
- Human capital
- Natural capital
- Manufactured capital
- Intellectual capital
- Social and relationship capital
- Combined Assurance
How Clover creates value today
Overview of Clover’s value creation process
Clover’s value creation process starts with our vision and mission, as the business model is designed to put these into effect. Our business model is the engine of Clover’s value creation and is driven by the resources fed through it in accordance with Clover’s strategy. Its outputs and outcomes are the short-, medium- and long-term value created in terms of Clover’s vision and mission. Clover’s leadership, support services and our people at all levels must ensure that Clover’s vision flows seamlessly and accurately through the entire value chain and the business model to be transformed into outputs and outcomes that actualise this vision.
Yesterday
Since its establishment 119 years ago, Clover has always had its roots in dairy and its related products. Over decades, Clover evolved into a branded consumer goods company with one of the largest chilled distribution networks spread across southern Africa. It retained its dairy heritage, developing new, value-added dairy and complimentary products. At the same time, it leveraged its distribution network and merchandising expertise to become the supplier of choice for a number of international principals.
Clover underwent a major shift in 2010, to address regulatory legacy issues and position the Company for future growth. This unlocked significant value for producer shareholders and realised costs savings of more than R100 million per annum.
Subsequently, as a listed company, Clover began leveraging the King III code and Integrated Reporting principles to guide the development of our value creation processes for the long-term sustainability of the Company and the environments that we impact.
Today
Since the 2008 global financial crisis, the demand for transparency, early and accurate corporate reporting across all the bottom lines has escalated to new levels. Even in South Africa, corporate activism is on the rise and investors are responding more proactively to how a business is managed and shareholder value created.
Clover has long taken the view that the Integrated Report is not simply a compliance document that takes up management time. On the contrary, we utilise it as a key management tool for conducting a regular “reality check” of our performance and strategies.
We also devote considerable time to tell Clover’s value creation story as concisely, plainly and transparently for the benefit of all stakeholders. This enables stakeholders, including shareholders and potential investors to evaluate our actions from an informed basis.
Tomorrow
How a company creates value is its “reason for existence”. Clover has taken the view that company value creation chains, incorporating their business models, will soon become the single most important measure against which companies will be judged.
This will attract long-term investors who are supportive a company’s investment case regardless of the macro-economic cycle.
In this report, Clover has endeavoured to use King III and Integrated Reporting principles to clearly show how our value creation chain and business model works to unlock shareholder and stakeholder value.
