Old Mutual retools empowerment plan
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Financial Services Editor
OLD Mutual SA was finalising a new black economic empowerment strategy that would build on the activities it had already ventured into, the group said as it launched its second annual corporate citizenship report.
This comes after a series of empowerment deals done recently by the group, including partnerships with Aka Capital, Wiphold and Jay & Jayendra, and awarding of a R30m contract to Nkonki Advisory Services. The group has completed R2bn worth of transactions in the past five years. The report says it spent R210m last year on affirmative procurement, representing 22% of its total procurement bill.
Corporate affairs GM Debra Marsden said the new empowerment strategy aligned with government thinking on the issue and would inform the group's input into the financial services sector charter.
She said corporate citizenship, and the associated "triple bottom line" reporting, was not just about social investment but related to core business activities . Old Mutual had made progress in several areas but there was a lot more to be done.
Old Mutual was one of the first SA groups to publish a comprehensive corporate citizenship report last year, following on from SABMiller. Several others, in financial services and other sectors, are expected to issue reports this year.
Marsden said 16% of the group's executive and senior management were now black and 16% were women. Black directors make up a third of Old Mutual SA's board, though there is only one woman. Old Mutual SA MD Roddy Sparks said the group had transformed from an allwhite, all-male executive team to a position where about 40% of its operating profits were now under the direct control of black executives.
The group is spending 6,7% of its payroll on training. Last year its social investment spending was about R50m, of which R20m came from the Old Mutual foundation and had no marketing spinoffs.
Apr 17 2003 07:20:20:000AM Hilary Joffe Business Day 1st Edition
Thursday
17 April 2003
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