The new King III Code of Governance Principles for South Africa 2009 calls for integrated sustainability reporting. Underlying this call is the desire that companies should more clearly demonstrate how social, economic and environmental considerations impact on the company’s strategic growth drivers, as well as showing how these issues are being effectively integrated within the company’s core strategy and throughout its sphere of influence.
This is the mandate we use as we embark on this journey to integrated reporting. We believe that reporting on our contribution to and impact on the overall society and economy within which we operate is critical, allowing our stakeholders to judge us on a broader set of growth drivers.
At its most fundamental, growing our business is ultimately dependent upon the maintenance of a stable political environment, the ability to attract and retain the best and most appropriately skilled employees, and maintaining positive relationships with our principal stakeholders, including governments, business partners and the communities where we operate. Achieving each of these elements requires us to operate in an informed, responsive and socially responsible manner.
In addition to the various drivers relating to value protection – where the focus is primarily on risk management, compliance and operational efficiency – sustainable development also presents opportunities for value-creation. We believe, for example, that our financial education initiatives play a primary role in promoting a savings culture in South Africa.
But this also goes to the heart of the financial services business in South Africa. Our South African business continues to focus on understanding and supporting the needs of low- and middle-income customers. This, together with other competencies, has been recognised in the strategy of our parent company Old Mutual plc, which highlights the intention to “leverage the strength of our people and capabilities in South Africa.”
During 2010 we launched a new brand identity founded on how the wisdom we have gathered for 165 years has been used to: develop appropriate advice for our customers; deliver good performance; lead with product innovation while continuing to invest in the economic development of our country; and create positive futures for our customers.
Our integrity as a business will depend on how we deliver on this brand promise in the fullest sense of the word. The all-important task now is to ensure that we have full business alignment and consistency as we execute on our strategic vision of “becoming our customer’s most trusted partner”.
We at Old Mutual have the wisdom and the capacity to empower our stakeholders to achieve their potential – to guide them to ‘Do Great Things’.
Paul Hanratty: Chief Executive Officer Long-Term Savings, Old Mutual; and Chairman, Old Mutual South Africa