The key relationships on which we rely to create value

Sustainable value creation depends on successful interactions with stakeholders. Using our values as the basis of all exchanges, we aim to engage proactively with those who impact Nampak, as well as those on whom we have an impact. This informs our strategy development and evaluation, our risk management as well as our material issues.

The key stakeholders with whom we interact are:

Although stakeholder relationship management is implemented at all levels across all our divisions, in terms of King III, our social, ethics and transformation committee monitors the company’s activities in this regard. The Nampak board of directors, however, retains ultimate responsibility for corporate reputation and stakeholder relationships. Opportunities and risks arising from our stakeholder engagements are also addressed in our risk management process.

Any stakeholder wishing to report matters of concern anonymously can email nampak@tip-offs.com, which is operated independently by Deloitte & Touche.

In 2016, we considered the following to be the key issues of each stakeholder group, and our related actions. The icons show the links to our material issues.

Shareholders and other funders#
Key issues
Our actions
  • Strategy and sustainable returns
  • Liquidity issues in Angola and Nigeria
  • Debt management
  • Executive remuneration policy
  • Implemented numerous initiatives to improve operational efficiencies, cut costs, enhance profitability
  • Engaged with authorities in Angola and Nigeria
  • Implemented new cash management system; improved inventory management; restructured debt; concluded property sale and leaseback
  • Provided shareholders with opportunity to discuss remuneration policy

# At year-end, our shareholding was 54% local and 46% foreign. We received a merit award from EY for our focus on value creation in our 2015 integrated report, which was rated excellent.

Employees*
Key issues
Our actions
  • Post-retirement medical aid for employees with at least 25 years of service by 2011
  • Workplace safety
  • Securing and developing necessary skills
  • Performance management
  • Provided employees with lump-sum payments to fund their own post-retirement medical aid contributions
  • Renewed focus on safe working conditions; reduced LTIFR to 0.48 from 0.89
  • Put 109 people through managerial development programmes
  • Carried out performance reviews with 100% of managers

* Nampak News was a finalist for the Best Internal Magazine in the 2016 SA Publication Forum Awards.

Trade unions
Key issues
Our actions
  • Restructuring and retrenchments; pending closure of Bevcan Durban
  • Successful conclusion of wage negotiations
  • Establishment of Nampak Enterprise Bargaining Forum
  • Held successful joint consultative discussions with all trade unions; no disputes
  • Concluded scheduled wage negotiations at Glass and at Liquid Paper; no strikes
  • In consultation with NUMSA and other trade unions to establish Nampak Enterprise Bargaining Forum
 
Customers
Key issues
Our actions
  • Provide reliable supply of quality packaging and innovative solutions
  • Retain key customers
  • Sustain good customer relationships
  • Higher-than-acceptable spoilage at Bevcan Springs
  • Met customers’ needs by supplying quality products on time
  • Implemented a sales and marketing training programme
  • Improved manufacturing expertise and skills to reduce spoilage
 
Suppliers
Key issues
Our actions
  • Realise benefits of ‘buy better’ initiatives
  • Meet B-BBEE procurement targets
  • Ensure consistent supply of quality raw materials
  • Utilised centralised procurement expertise; reduced supplier numbers
  • Negotiated long-term contracts for the supply of critical raw materials
  • Established and tested alternative supply channels
  • Focused on identifying further B-BBEE suppliers
 
Industry bodies
Key issues
Our actions
  • Waste management
  • Environmental impact of post-consumer packaging
  • Submitted comments on intention to call for waste management plans
  • Provided responses to government on policy changes through Packaging SA, BUSA and the Manufacturing Circle
 
Governments and regulators
Key issues
Our actions
  • Good governance and compliance
  • Maintaining sound relations with the municipalities in which we operate
  • Additional proposed taxes on packaging and manufacturing
  • Proposed introduction of carbon and sugar tax
  • Liquidity issues in Angola and Nigeria
  • Maximising tax incentives
  • Maintained sound governance policies and processes
  • Participated in constructive engagements with municipalities
  • Provided detailed responses to various proposed policy changes
  • Formulated an enhanced engagement plan
  • Applied for tax incentives from revenue authorities
  • Close engagement with authorities in Angola and Nigeria helped improve liquidity
  • Complied with JSE and revenue authorities
 
Civil society
Key issues
Our actions
  • Improving the lives of communities in which we operate
  • Contributing significantly to secondary and tertiary education
  • Continuing our long-term commitment to environmental education
  • Dedicated R8.5 million in social investment
  • Continued supporting partnered schools; provided bursaries to qualifying students on merit
  • Extended support to Eco-schools initiative