2012/13
Contribution
to economy
Rm
Direct
Employment
#
Livelihoods
Supported
#
Taxes
Paid
(Direct/
Indirect)
Rm
Employee
remuneration
and benefits
Rm
Cane
Payment
to
private
growers
Rm
Benefits/
CSI
spend
Rm
Group
18 500
31 000
500 000
900
1 800
3 360
197
Malawi
3 000
11 552
>82 000
>254
251
159
24
Mozambique*
861
4 857
>35 000
45
127
83
25
South Africa
6 900
3 659
>195 000
132
580
1 900
33
Swaziland*
2 400
2 757
>68 000
>132
228
523
37
Tanzania*
1 200
2 545
>62 000
55
146
205
20
Zambia*
4 000
6 014
>54 000
91
462
488
58
* Recent significant investment projects undertaken in these countries
The Corporate Citizenship study revealed the significant quantum of the socio-economic benefits which
Illovo’s activities bring to the countries and communities in which we operate. It has also provided us
with a useful and practical tool to define our corporate responsibility objectives and to communicate more
effectively with our key stakeholders. We therefore plan to update the study from time to time and will
publish these results as and when we do so.
Illovo strives to make a positive impact and to eliminate, or at least minimise, negative impacts on the
communities in which we operate. Recognising that failure to respect internationally recognised human
rights principles presents a significant reputational risk, affecting the sustainability of a business, our risk
identification processes identify stakeholders’ interests and expectations relative to human rights issues
as priority areas. Risks associated with human rights are mitigated through interaction with stakeholders
such as non-governmental organisations, governmental authorities, and local communities, as well as
through responding to issues identified in reporting initiative frameworks such as CDP’s Climate Change
and Water responses, the JSE SRI Index requirements, the GRI requirements, the UN Global Compact
Principles and self-assessment toolkit, the UN Guiding Principles on Business and Human Rights, as
well as legal and regulatory requirements. Mitigating measures include requiring adherence by our
employees and suppliers to our Code of Conduct and Business Ethics (which may be found on our
website at
) and the integration of our human rights policies in our businesses and
the supply chain.
In relation to both our existing business operations and proposed new projects and business activities, a
robust “stage and gate process” includes the identification of both positive and negative impacts on local
communities.
Our Social and Ethics Committee work plans include human rights monitoring processes to track
performance against our human rights objectives.
DISCLOSURE OF MANAGEMENT APPROACH
Our overall management approach to expenditure ensures that all transactions are captured at source,
consolidated and cleared by local management at each cost centre and then submitted for consolidation
and consideration at the group level. High-level summaries of the group’s expenditure are reviewed by
the Illovo board and its relevant sub-committees. The internal audit function exercises a continuing
review of the recording and collating of expenditure-related information. Consolidated group reports are
subject to a half-yearly review and an annual audit by independent external auditors.