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STAKEHOLDERS |
| Relationships are built on trust. To ensure that we maintain
long-term relationships with all stakeholders, we are committed
to communicating transparently and openly. |
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Clients |
| We build long-term relationships with our clients. We are transparent,
ethical and professional in all our dealings. We listen to our
clients and by so doing are able to enhance our products and
develop new products to meet the changing needs of our clients. |
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| We have a dedicated team within each operating area to assess
the quality of service we are providing to our clients. Alexander
Forbes Risk Services in South Africa has recently been assessed
for certification to ISO 9001:2000. The certification to the
standard has been recommended and is pending ratification by
the TUV Rhineland Group. Alexander Forbes Financial Services
holds the international SAS70 accreditation (American auditing
standard). Testing assessed the design of our operational control
platform and compliance. |
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Suppliers |
| Service level agreements and reviews are ongoing with our existing
suppliers. |
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| In terms of our Black Economic Empowerment (“BEE”)
process, we have a preferential procurement policy where we have
proactively interviewed and surveyed our South African suppliers,
informing them of the principles of government’s broad-based
BEE strategy and of the Financial Sector Charter, thereby seeking
engagement with the process by each supplier. |
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Communities |
| Our Black Empowerment transactions with the Shanduka consortium
in South Africa, included participation by the Alexander Forbes
Community Trust. In order to ensure that this impacted on the
broad-based community, the trust was set up to assist the previously
disadvantaged and in particular the aged, disabled, women, those
affected by HIV/Aids and those requiring education. A similar
broad-based trust has been set up in Namibia, together with our
partners, Cherish Investments. |
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Shareholders |
| The investor relations programme in Alexander Forbes is actively
managed in a professional, objective, transparent, timeous and
relevant manner. |
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| On a biannual basis, on release of our year-end and interim
results, management meets with the investment community in an
open forum as well as meeting with shareholders and analysts
on a one-on-one basis. On a regular basis management initiates
discussions with potential investors, analysts and shareholders. |
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| Management is very conscious of the regulated nature of the
information disseminated to the investment community and ensures
compliance with all aspects. All information is simultaneously
published on our website. |
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EMPLOYEES |
| The environment in which we operate is highly technical and
regulated and it is imperative that we recruit and retain the
best calibre employees in the industry, who are passionate about
the work they do. It is our intention to be an “employer
of choice” in every geographical area in which we operate. |
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| A wide range of employee benefits is provided to protect employees
and their families. |
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| Being in the financial services sector, our people are our
most important asset and are what differentiates us from the
rest of the sector and ensures our economic success. |
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| In South Africa, Mpho Nkeli heads human resources and in the
United Kingdom, our other principal operating area, Tim Baggott
heads the human resources function. |
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Training and development |
| Training and development of employees continues to be a priority
within the group, with learning being a continuous process and
not an isolated event. Employees are assisted in studying appropriate
courses and in on-the-job training to build their careers. In
South Africa, training and development was increased over the
reporting period within each of the divisions, ensuring that
employees are always prepared to perform optimally in an ever
changing environment. |
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| For the 2004/5 financial year the factors influencing the business
in South Africa have been the Financial Advisory and Intermediary
Services Act (“FAIS”) and the requirements of the Financial
Sector Charter (“FSC”). Due to legislative requirements,
the majority of training undertaken has been in technical skills,
with behavioural training also being a continued focus. |
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| In the past year significant progress has been made in reviewing
the training material to become outcomes based and aligned to
the National Qualifications Framework (“NQF”) system.
Assessors and moderators have been retrained and the company
is in the process of becoming accredited, which requires that
quality audits are done to ensure that training meets the national
standards. The company also outsources training programmes, where
required. |
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| With the recent promulgation of the FAIS Act, all financial
advisors are required to obtain points in terms of the National
Qualifications Framework by 2007. The majority of employees who
give advice to clients have met the required criteria. For employees
who do not have the required NQF points, training programmes
are in place taking into consideration prior learning. The programme
is running smoothly and it is anticipated that targets will be
met within the deadline. |
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| The middle-management Management Leadership Development programme
aimed mainly at previously disadvantaged employees has been initiated
in conjunction with the Gordon Institute Business School (affiliated
to the University of Pretoria). |
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| A group of female managers has attended the Women in Management
programme set up by the Insurance Sector Education and Training
Authority (“INSETA”). Over 60% of our employees in
South Africa are women. |
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| To ensure that training is effective, a Return on Investment
(“ROI”) tool has been implemented in certain divisions
and will be rolled out, once tested. |
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| Within the benefit administration services division in Alexander
Forbes Financial Services, a pilot project has been initiated
with learners from previously disadvantaged backgrounds. The
learners receive on-the-job training as well as technical skills
and soft-skills training. Once evaluated, the project will be
extended. |
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Human resources systems |
| In response to the highly regulated environment in which we
work in South Africa and the required reporting in respect of
the Financial Sector Charter, Employment Equity Act, Skills Development
and the Financial Advisory and Intermediary Services Act, various
IT systems have been implemented within the group. These systems
are currently being assessed to ensure that they are less resource
intensive and can provide the required information in terms of
legislation and management reporting in the time period required.
The intentions are that the systems, being confidential, will
be accessible to both manager and employee. |
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| In the United Kingdom, the online training and development
portal “The Learning Zone” caters for staff development
needs. The system records continuing professional development
allowing for online performance and development reviews to take
place. |
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Health and safety |
| In South Africa, each office has a Health and Safety Committee
that ensures the well-being of our staff and identifies any related
risks. |
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| In the larger offices there are fire marshalls and first aiders
on each floor and they are required to meet once a month to address
concerns and any incidents. They are provided with continuous
training. Members of the Health and Safety Committee are required
to produce a monthly report on the status of offices to ensure
that the workplace is safe for employees at all times. Workplace
accidents are reported online to a central resource which coordinates
any claims and analyses trends so as to avoid recurrence. |
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| We aim to ensure that all our employees, no matter in which
geographical area, work in a safe and pleasant environment. |
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Remuneration and benefits |
| The group’s remuneration policy is consistent with the
belief that our people are the most important asset. In order
to ensure that we are able to recruit and retain the best calibre
employees in the industry, we reward individuals accordingly.
External surveys are undertaken by each division to ensure that
remuneration is competitive. |
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| Remuneration for employees in South Africa is based on a total
cost to company basis and includes retirement benefits, medical
scheme membership, as well as life, disability, personal accident,
traumatic illness insurance and funeral benefits. This is supported
by an employee assistance programme, which includes voluntary
participation in an HIV/Aids management programme. |
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| Directors’ remuneration is determined by an independent
Remuneration Committee which is responsible to the Alexander
Forbes Limited board. |
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HIV/Aids |
| Since October 2002, the company has contributed to a confidential,
voluntary programme for all employees in South Africa. The programme
provides awareness education, counselling, voluntary testing,
medical and related therapy as well as a 24–hour call centre
to support and counsel employees and their families. |
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| In South Africa the group offers voluntary on-site counselling
and testing on an annual basis, to coincide with World Aids Day
on 1 December. During the year, off-site voluntary counselling
and testing is available to all employees. Our objective is that
employees know their status and take responsibility to prevent
infection, or if positive undergo therapy so as to improve their
lifestyles, longevity and productivity. |
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| The programme is coordinated by Alexander Forbes Health Management
Solutions who have partnered with Right To Care and a network
of professional service providers to provide this service to
our employees and those of other organisations. |
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| During the reporting period 48% of employees in South Africa
were tested. Less than 1% of those employees are HIV-positive
with less than half of those registered for Highly Reactive Antiretroviral
Treatment (“HAART”). |
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| Due to the confidential nature of this programme, we are unable
to assess whether any employee deaths are related to the HIV/Aids
pandemic. |
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Employee well-being |
| At a cost to the company, employees in South Africa are able
to access an employee assistance programme, which is outsourced
to external professionals. The programme offering a 24-hour personal
support service relating to financial, family or work-related
issues, may be accessed by employees and immediate family members. |
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| A “Wellness Day” is arranged for employees on an
annual basis where specialised providers are brought into our
offices to encourage employees to take better care of their health
and general well-being. |
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| In some divisions employee satisfaction surveys are conducted
from time to time where employees are encouraged to communicate
both negative and positive issues. These issues are monitored
by management for improvement. |
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| Whilst employees are not unionised, there are various forums
in which they participate to address issues relating to their
performance. Employee Equity Committees are in place in line
with relevant legislation. |
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Recruitment and induction process |
| Employees are recruited on potential and are thoroughly tested
in terms of honesty, integrity, professionalism and technical
skills. |
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| In South Africa the group is thoroughly committed to ensuring
that Financial Sector Charter targets are met in terms of Black
individuals and both recruitment and retention of this group
of employees are key criteria for management’s performance
reviews. |
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| Each new employee is required to participate in an induction
process where the employee is given an overview of the company
with values, ethics, policies and procedures being communicated.
Various communication tools are used, including computer-based
and classroom-style knowledge transfer. |
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Disciplinary procedures |
| A policy and procedure is in place to recognise the importance
of employment fairness and the need to protect each employee
from arbitrary or unfair disciplinary action. The procedure also
assists in the efficient operation of the business and encouraging
satisfactory conduct and performance from its employees. |
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| Employees also have access to a grievance procedure ensuring
that grievances are considered and resolved at the lowest level
and in the shortest time. |
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| Every employee at Alexander Forbes has access to the Disciplinary
and Grievance Procedures and Guidelines. |
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HUMAN RIGHTS |
| In every geographical region in which the company operates,
legislation governs human rights. The board of Alexander Forbes
will not tolerate any violation of human rights. This no-tolerance
policy extends to employees, management and suppliers of the
group. |
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FRAUD, BRIBERY AND CORRUPTION |
| Due to the nature of our business, it is imperative that employees
act ethically and honestly at all times. There is zero tolerance
of any employee who is found to be dishonest. Any breach is dealt
with severely (in line with the disciplinary guidelines) and
immediately, and if required, handed over to the relevant authorities
for prosecution. |
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| The group is proactive in reducing the number of incidents
by providing ongoing training and communication to staff. Each
division maintains policy and procedure manuals; utilises internal
audit and quality control functions to monitor compliance; and
ensures that employees are working in a “best practice” environment,
reducing the potential for dishonest incidents. |
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| Employees have access to a “whistle-blowers” 24-hour
hotline. This confidential service is outsourced to external
auditors. |
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POLITICAL DONATIONS |
| The company does not fund any political party or political
party candidate. |
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ENVIRONMENT |
| Alexander Forbes is committed to ensuring that in every region
in which we operate, we comply with legislation in terms of the
environment. |
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| Being in the financial sector, we have a low impact in terms
of the environment. Our Health and Safety Committees and our
facilities management structures cooperate to ensure a safe and
environmentally friendly working environment. Our disaster recovery
plan highlights actions to be taken in the event of any threatening
incident. We have long contributed to wildlife management and
our Enterprise Wide Risk Management unit makes a contribution
to the environment in South Africa and to overseas-based clients
through employing specialist consultants who advise clients on
environmental risk management and insurance. |
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Energy conservation |
| We have appointed an organisation which monitors billings and
reports on utilisation trends and any manifest faults in respect
of water and electricity. At our two adjacent buildings in Sandton
we have introduced a peak-time policy so that airconditioning
does not operate on weekends nor at night. Lighting is on timing
switches and only operates at night or on weekends where employees
are at work. |
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Emissions |
| Due to the nature of our business, emissions to water and air
are limited. |
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Water consumption |
| Through the Health and Safety Committee all leaks are reported
timeously. In addition, we encourage our staff not to waste water. |
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Recycling |
| Where possible, the group’s waste resources are recycled,
including paper, tins and glass. We encourage employees to utilise
less paper, and this process is supported by use of e-mail and
intranet dissemination. |
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Peace Parks Foundation |
| The company funds the Alexander Forbes Chair in Wildlife Diseases
at the University of Pretoria. The University has the only functional
veterinary faculty in Africa. The contribution from the Alexander
Forbes Community Trust has assisted in opening the specialised
wildlife unit. The intention is that more than 40 veterinarians
from Africa, specialising in wildlife disease, will be trained
over the next eight years. The management of veterinary issues
affecting the human-livestock-wildlife interface are issues of
great economic, socio-economic and biological importance. Asian
bird flu is a reminder of the impact should there not be a “rapid
force” to react. |
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| Alexander Forbes is also a member of the Worldwide Wildlife
Fund. |
