OVERVIEW

Extract from 2009 annual report

RMBH is committed to good corporate citizenship practices and organisational integrity in the direction, control and stewardship of the Group’s affairs. To the extent that it is possible, the directors of RMBH seek to ensure that this commitment is practised and reported on by all the Company’s subsidiaries and associates. This commitment provides stakeholders with comfort that the Group’s affairs are being managed in an ethical and disciplined manner.

This discussion is a limited overview from a Group perspective. Each of the listed entities in the Group publishes detailed sustainability reviews.

The Group subscribes to a philosophy of providing meaningful, timely and accurate communication to its key stakeholders, based on transparency, accountability and integrity.

Shareholders, customers, employees, suppliers, regulators and the communities in which Group companies operate are regarded as the Group’s key stakeholders.

Shareholders

Communication

RMBH’s communication practices are designed to allow investors to make decisions about the acquisition and ownership of shares. The Company communicates formally with shareholders twice a year when it announces interim and year-end financial results. These comprehensive reports are sent to all shareholders and are accessible on the Company’s internet site (www.rmbh.co.za). The Chairman and the Chief Operating Officer meet with investors and investment analysts from time to time.

Ownership

Significant shareholdings are disclosed here. An analysis of the RMBH share price and trading data appears here.

Customers

The Group companies provide a comprehensive range of financial products and services to South African corporates and individuals. In this regard the integrity of its various brands, their image and reputation are paramount. To ensure the sustainability of their businesses, all companies in the Group regularly engage with their customers to measure satisfaction levels and gain insight into their needs.

In terms of the Financial Sector Charter, Group companies are committed to providing banking and financial service facilities to previously disadvantaged communities.

Employees

Group companies all seek to be the employer of choice in their respective fields.

The Group’s human resource strategy is to recruit and retain the best people from South Africa’s diverse population base. In particular, it seeks people with entrepreneurial attitude and encourages an owner- manager culture. People are empowered, held accountable for their actions and rewarded accordingly.

The Group operates in a number of sectors within the broader financial services industry, each with its own distinct employment practices and unique human resource pressures. To recognise and address such divergent needs, the Group follows a practice of devolving the design and implementation of appropriate remuneration structures through industry specific structures. Within this divisional framework, remuneration structures comprise:

basic salary plus benefits; and, where appropriate,
annual performance related rewards; as well as
share incentive schemes.

Remuneration is based on individual and business unit performance. Annual remuneration reviews encompass all three elements.

Employment equity

In line with the business philosophy of empowerment, each business unit in the Group is charged with meeting its targets in terms of plans submitted to the Department of Labour as required by the Employment Equity Act. Group companies are also expected to exceed targets determined by the Financial Sector Charter. In addition to setting affirmative action targets aimed at raising the number of designated groups as a percentage of the total staff complement, such plans commit Group companies to the following in pursuit of the appropriate employment equity in the organisation:

increasing the overall racial diversity of the workforce;
increasing the number of black and female managers;
creating awareness of the need for employment equity and diversity amongst employees;
the establishment of representative diversity forums; and
awareness of employment opportunities for people with disabilities.

Employee wellness

Of growing importance is the impact of HIV/Aids on the workforce and the South African economy in general. The Group has adopted an HIV/Aids policy that is based on education, communication, counselling and confidentiality.

Suppliers

The Group has established a set of procurement guidelines to assist Group companies in meeting their commitment to place business with BEE suppliers. At the FirstRand level a procurement council has been established to ensure that all suppliers are appropriately accredited.

Regulators

All operating companies in the Group are subject to the independent oversight of one of South Africa’s regulatory authorities. Group company representatives interact with a wide spectrum of regulatory bodies, including the South African Reserve Bank and the Financial Services Board. The relationship sought is one of compliance and constructive participation in committees with a view to ensuring that South African industry practice remains amongst the best in the world.

Group companies support initiatives aimed at infrastructure develop- ment, the promotion of democracy and business and Government dialogue. The Group is represented on the council which oversees the implementation of the Financial Sector Charter.

Communities

All Group companies are committed to uplifting the societies in which they operate through following sound employment practices and meeting the real needs of the communities. In addition, FirstRand Group companies contribute 1% of their after tax profits to the FirstRand Foundation which has, since its inception in 1999, contributed more than R633 million to various community upliftment programmes. In addition, staff in Group companies are encouraged to give of their time and skills in community related work.