CORPORATE SOCIAL INVESTMENT REPORT 2011
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1 CORPORATE SOCIAL INVESTMENT REPORT 2011
2 CORPORATE SOCIAL INVESTMENT INTRODUCTION Socio-economic development is important to the sustainable economic growth of the country and the Group recognises its responsibility to contribute to community upliftment and economic empowerment. Corporate social investment (CSI) is therefore central to the overall transformation strategy and the Group achieved the maximum score for socio-economic development in the latest broad-based black economic empowerment (BBBEE) rating based on the Department of Trade and Industry s Codes of Good Practice. The Group s CSI programme has in recent years focused increasingly on healthcare (as shown in the accompanying diagram), with a secondary focus on projects in education, social development, arts and culture, and sport. The CSI strategy has also been realigned to invest in fewer but more substantial projects to make a greater impact on uplifting social infrastructure in order to benefit people specifically from disadvantaged communities. Expenditure by focus area % 6% 7% 4% 17% 48% 15% 49% 23% 25% HEALTHCARE EDUCATION HEALTHCARE EDUCATION SOCIAL DEVELOPMENT SPORT ARTS AND CULTURE SOCIAL DEVELOPMENT SPORT ARTS AND CULTURE COMMITMENT TO CSI As social investment and sustainability issues are becoming increasingly important to stakeholders, the Group has developed its CSI branding to identify Truworths social investment projects and to demonstrate its commitment to sustainability. The new branding is reflective of the Group s CSI philosophy which has always been to engage with the stakeholders of each project in an attempt to understand the needs of each project, rather than merely handing over a cheque. This approach builds mutual trust and respect and has enabled the Group to become truly involved in the communities and projects it supports.
3 FUNDING THE CSI PROGRAMME The CSI programme is funded through three trusts. These trusts were established to accumulate funds that would ultimately enable the CSI programme to become self-sustaining. The investments held by the three trusts totalled R120.4 million (2010: R105.0 million) at the end of the financial period. Truworths Social Involvement Trust Truworths Community Foundation Truworths Chairman s Foundation Supports organisations and projects that do not qualify for tax-exempt status. Supports beneficiaries with public benefit organisation status. Supports beneficiaries with public benefit organisation status that are approved in terms of section 18A of the Income Tax Act. Divisional Director: Human Resources Human Resources Executive R86.2 million Divisional Director: Human Resources Human Resources Executive R29.4 million Chairman of Truworths International Chief Executive Officer R4.8 million SPONSORING AN AREA OF CRITICAL NEED Improving access to proper healthcare treatment is one of the main social priorities facing South Africa. Support from the private sector is critical to creating a more efficient healthcare system in the country where less than 20% of the population is covered by health insurance. The CSI programme has continued to sponsor bricks and mortar infrastructure in the healthcare sector. In partnership with the provincial health departments and the SA Medical Foundation, the Group aims to develop hospital facilities in disadvantaged communities which serve its customer base. Major projects were undertaken at three healthcare facilities during the period: Healthcare facility Project Donation Partners Mitchells Plain Community Health Centre Upgrade of the new paediatric trauma section and surrounding areas, including furnishings, equipment and upgrading doctors and nurses rest rooms. R1.0 million (From funds committed during the 2010 financial period) Western Cape Department of Health SA Medical Foundation Hanover Park Community Health Centre Sponsored a new peri-natal mental health facility. R (From funds committed during the 2010 and 2011 financial periods) Western Cape Department of Health University of Cape Town Leratong Provincial Hospital Renovation of the main reception area and part of the Casualty section, which included structural work as well as furnishing of these areas. R1.55 million Gauteng Department of Health SA Medical Foundation
4 CORPORATE SOCIAL INVESTMENT The funding of these projects follows the investment in health facilities in the prior financial period when the Group contributed R2 million towards the paediatric ward in the new trauma unit at the Somerset Hospital in Cape Town and funded improvements to the mother-care facility at the Mowbray Maternity Hospital. Plans are being finalised to sponsor another large hospital project in Smaller projects in the Healthcare sector include sponsorship of a nurse at the Won Life Clinic in Fisantekraal near Cape Town, and assistance with upgrading the infrastructure at the new Desmond Tutu HIV Foundation Youth Centre in Masiphumelele, Western Cape. EDUCATION, SOCIAL DEVELOPMENT, SPORT AND ARTS AND CULTURE In relation to Education, the Group continued to support the Entrepreneurship module at Tsiba College for disadvantaged students studying towards a B.Admin degree. A number of outsourced programmes such as the Junior Achievers Mini Enterprise Programme for secondary schools, as well as Ballet, Chess, Art and The Shine Centre literacy programmes at Observatory Junior School in Cape Town have provided disadvantaged learners with opportunities to experience programmes of this nature. The Group also continued to provide bursaries for five students at a design college in Cape Town. These students are being mentored with a view to joining the Group upon successful graduation. In the area of Social Development, the Group s continued support of the Sisanda Fundaytion has enabled more than 500 children from orphanages and disadvantaged homes to participate in fun day outings to places of interest. In the area of Sport, the Group once again sponsored the annual Open Ballroom and Latin-American Dance championships for 300 differently-abled youth, which was held in Stellenbosch. Support has been given for Ballroom and Latin dance classes for disadvantaged youth for more than 12 years, providing costumes, transport, and coaching fees for both able-bodied and disabled youth. Eight Truworths Future Stars Basketball teams took part in the Western Cape Basketball Association (WCBA) league, and during the year under review four team members achieved their Western Province colours, whilst three of their founder coaches have represented South Africa in their coaching capacity at qualifying games in North Africa. The Group s support for The Good Hope Art Residency at the Castle of Good Hope continues to provide disadvantaged emerging artists with space to work in a stimulating environment. Through this programme several artists are given the opportunity to network and attend workshops, and on a rotational basis are encouraged to exhibit and sell their work at the Group s Head Office. The Meaningful Access programme provides tactile and musical workshops for disabled youth, as part of the Friends of the SA National Gallery/Truworths partnership. Supporting children of employees The Group recognises its social responsibility to employees. Through the Operation Education Scheme employees at lower income levels are able to apply for assistance for the education costs of children from pre-primary through to secondary education. Funding is also provided to employees with physically or mentally disabled children or to children who have excelled academically. In the reporting period 555 grants were provided to staff to fund the education of their children.
5 Encouraging employee participation Employees are encouraged to participate in the CSI programme and to give back to society by contributing time, money or in-kind donations. A portion of the annual CSI budget is allocated to match employee donations to charities which have been nominated for support by employees. Employees again demonstrated their social awareness in the past year by supporting in-house charity fund-raising projects such as the M October Beard Fest, Movember and Mandela Day which raised funds for The Cancer Association of South Africa (CANSA), the Saartjie Baartman Centre (for abused women and children) and Home from Home (community-based foster care homes for children). The annual Blisters for Bread charity family fun walk is also well supported by staff and proceeds are donated to the Peninsula School Feeding Association. Regular drives are organised for charitable donations such as the annual Toys for Charity campaign in December and mid-year jersey collection. The Group s regional offices are encouraged to nominate worthy causes each year and through employee participation, were able to make meaningful contributions to the SOS Children s Villages, Abraham Kriel Home, Aurora Centre and Thutong Pre-School. Clothing donations to charity More than units of quality-rejected clothing with a charitable value of almost R1.3 million was donated to community organisations during this financial year. The CSI team works with these charities to ensure the quality-rejected merchandise can be used by remodelling garments and fabric, thereby avoiding large quantities of fabric having to be consigned to landfill sites. CSI donations The table below outlines the Group s donations to CSI: Summary of CSI donations Donations by the Group to the CSI trusts (R 000) Donations of merchandise for distribution to charities (R 000) Total donations by the Group (R 000) Total donations by the Group as a percentage of the Group s after-tax profit (%) CSI disbursements and funds committed by the trusts (R 000) Number of CSI projects supported during the period Number of beneficiaries assisted in ongoing projects Number of CSI projects supported for over 10 years Details of projects supported by the Group during the financial period are available on under the Investor Relations CSR section.
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