HOW OUR STAKEHOLDERS’ NEEDS
INFORM OUR REALITY
HOW CLOVER CREATES VALUE TODAY: GOVERNING STAKEHOLDER RELATIONSHIPS
In order to achieve Clover’s strategic objectives as described in Clover’s vision and mission, the Company relies on effectively executing all value creation processes in its business model, which are interdependent of Clover’s material stakeholders’ contributions. These stakeholder groups or individuals can be affected by Clover’s actions and operations or their processes can materially impact on Clover’s business
Clover actively engages with all our stakeholders throughout the year on its
strategic aspirations as well as understanding stakeholders’ needs, interests
and perspectives. Material matters arising from stakeholder engagements are
managed as part of the risk management process. The review of material risks
and opportunities include stakeholders’ perspectives, ensuring alignment of
Clover’s business model with those of its respective stakeholders.
Clover’s material stakeholder groups are described in the table below:
COMMUNITIES, TRADITIONAL AND CIVIC SOCIETY
How Clover supports our stakeholders’ needs
Means of engagementDirect interaction through various corporate social investment initiatives, such as:
Benefits to Clover through support and engagement with our stakeholdersEngagement with our communities helps us determine our impact on the communities and gives Clover the opportunity to develop new product offerings |
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RealityHigh unemployment rates, rising inflation and poverty in the communities we serve Clover’s
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Clover Mama Afrika programme, supporting over 1
Clover Masakhane distribution model, which increases our reach into rural communities, providing access to our
SUPPLIERS
How Clover supports our stakeholders’ needs
Means of engagementSupplier meetings, site visits and performance evaluations Benefits to Clover through support and engagement with our stakeholders
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RealityWeakening/volatile Rand increases costs and uncertainty of supply Clover’s response/strategy
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MILK PRODUCERS
How Clover supports our stakeholders’ needs
Means of engagement
Benefits to Clover through support and engagement with our stakeholders
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RealityOversupply of raw milk and cheap imports increase the cost to balance excess milk Clover’s response/strategy
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EMPLOYEES
How Clover supports our stakeholders’ needs
Means of engagement
Benefits to Clover through support and engagement with our stakeholdersEmployees acting in accordance with Clover’s values of respect, integrity, fairness and responsibility |
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RealityWage increases are greater than inflation and the price recoveries from the market Struggling to retain qualified individuals as a result of approaches by multinationals Clover’s response/strategy
Various employee development and training programmes |
RETAILERS/TRADE
How Clover supports our stakeholders’ needs
Means of engagement
Benefits to Clover through support and engagement with our stakeholders
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RealityPressure on selling prices, volumes and margins Clover’s response/strategy
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CONSUMERS
How Clover supports our stakeholders’ needsHigh-quality and trusted branded products, at competitive prices that are easily accessible Means of engagementIn-store promotions, TV advertising, our Tropika island of treasure TV show as well as through our interactions on our social media pages Benefits to Clover through support and engagement with our stakeholdersTo increase our market share and improve brand loyalty by providing high-quality products at an affordable price to our consumers |
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RealityConsumers are under pressure due to taxes and the rising fuel price Consumers want the right quality product to be alway available at the right price, and will buy on promotion to get value for money Clover’s response/strategy
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PROVIDERS OF FINANCIAL CAPITAL (CREDIT FACILITIES)
How Clover supports our stakeholders’ needs
Means of engagementContract/agreements with providers of credit Benefits to Clover through support and engagement with our stakeholdersAccess to capital at a fair price/terms |
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RealityGood access to credit facilities Good relationships with providers of finance facilities Clover’s response/strategy
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SHAREHOLDERS/INVESTORS
How Clover supports our stakeholders’ needs
Means of engagement
Benefits to Clover through support and engagement with our stakeholders
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RealityProvide a sustainable return to our shareholders/investors whilst balancing the needs of all stakeholders Clover’s response/strategy
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GOVERNMENT
How Clover supports our stakeholders’ needs
Means of engagementPersonal meetings, written and verbal communications Benefits to Clover through support and engagement with our stakeholders
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Reality
Clover’s response/strategy
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PRINCIPALS
How Clover supports our stakeholders’ needs
Means of engagement
Benefits to Clover through support and engagement with our stakeholders
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RealityReduced income from principals particularly due to listeria outbreak that impacted the industry. The loss of service income from Remgro margarine and spreads business from the 4 March 2019 Clover’s response/strategy
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Reputation as a value driver
