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Material issues

Stakeholder engagement

Aveng recognises that a proactive and robust process of engagement with stakeholders is critical in understanding their views and concerns. The ability to effectively identify material issues relating to stakeholders, including risks and opportunities, and effectively respond to these issues will enable us to create and maintain value.

The recent Competition Commission investigation and settlement process has negatively impacted the Aveng Group’s reputation with a number of key stakeholders. An intensive process is being undertaken to engage with affected stakeholders to re-establish and build relationships and reputation.

The Group’s recent poor financial performance has also negatively impacted our reputation with investors and financiers. Our drive for clear communication and transparency of our strategic response to stabilise, turn around and grow the Group will be core to rebuilding our reputation as a business with exceptional potential and a management team that can deliver on its commitments. Notwithstanding these, and other challenges, there has been an underlying improvement in the performances of many operations that underperformed in 2013, reflecting Aveng’s commitment to deliver tangible and sustainable improvements in its results.

Our primary stakeholders are employees, shareholders, the investment community and media, trade unions, customers and clients, subcontractors, suppliers, service providers and business partners, and government, regulatory and industry bodies. We encourage dialogue and feedback at all levels in the business.

During the year under review, a stakeholder engagement plan and report-back process was implemented in which operating groups identified their material stakeholders based on their current or prospective positive or negative impact on the business. Specific focus is paid to how we engage with each stakeholder and how to elevate the engagement to the next level to build stronger relationships.

The table below sets out existing methods of engagement with our key stakeholders:  

Stakeholders  

Nature of engagement  

Customers and clients
Private and public across all sectors covered in the group business model. Refer to here.   
Customer meetings and site visits, conferences, events and exhibitions, written communication, contracts and service level agreements  
Employees Culture surveys and wellness days, engagement forums and training sessions, safety inspections, performance reviews, leadership conferences and senior management interaction  
Shareholders
SA-based (72%), North America and
Canada-based (16%), Europe-based (9%) 
Financial reports, trading updates and statements, results presentations and roadshows, AGMs, site visits, webcast sessions, individual meetings and the website  
Investment community and media
Lenders, analysts, media  
Financial reports, trading updates and statements, results presentations and roadshows, AGMs, site visits, webcast sessions, the website, corporate newsletters and conferences  
Trade unions
NUM, NUMSA, UASA, Solidarity  
Each operating group has its own agreements with its respective trade unions and engages through various methods and at various intervals  
Contractors, suppliers, service providers and business partners   Supplier meetings, workshops, presentations, industry body meetings, events and exhibitions, project steering committees, site and project visits, contracts and service agreements, project process meetings  
Government and regulatory bodies
National, provincial and local government, parastatals, CIDB, Competition Commission, Construction Sector Charter Council, JSE  
Submission of compliance reports, formal and informal meetings, consultations and workshops (e.g. SAFCEC-led industry CEO forum), conferences, seminars and presentations, and written communications  
Industry
SAFCEC, MBSA, SEIFSA, Business Against Crime  
Representation on key industry bodies, leadership meetings, correspondence, newsletters and sponsorships.  

Stakeholder concerns and their apparent impact on Aveng have been plotted on the matrix below. Material issues (those plotted on the top right of the matrix) are regarded as having the potential to significantly impact the Group in achieving its strategic objectives.

The stakeholder materiality matrix