Corporate social responsibility
The Group is committed to uplifting the societies in which it operates through following sound employment practices and meeting the real needs of those communities.
Italtile continues to invest in South Africa and neighbouring countries in education, training and skills transfer through the Italtile training academy which has provided tiling, technical and business skills to numerous previously unemployed individuals.
Ad hoc contributions were also made to the following deserving causes:
- Sparrow Ministries Aids Village, a non-profit organisation which provides care and comfort to adults and children who have been infected or affected by the HIV/Aids pandemic;
- One School at a Time;
- Little Eden;
- World Wildlife Fund; and
- National Sea Rescue Institute.
Furthermore, the Group implemented a community investment programme to establish up to two sports grounds per year in areas lacking such facilities. This initiative is based on an existing successful venture, the Soweto sports ground, a community-centred facility sustained by various sponsorship efforts, with which the Group has been involved for many years.
In addition, a number of Group-owned, joint-venture and franchised stores across the Group make ongoing corporate social investments to various community causes.
Occupational health and safety
Italtile complies with the Occupational Health and Safety Act, No 85 of 1993 and other relevant legislation, regulations and codes of practice for South Africa. The aim of the Group's Health and Safety policy is to prevent and minimise work-related and health impairments by ensuring that all employees are provided with adequate training and supervision to undertake their roles.
The Group's environmental department is instrumental in implementing Italtile's long-standing environmental consciousness values across the business. Programmes are aimed at measuring, managing and reducing the Group's impact on the environment and promoting its long term sustainability. This department operates in conjunction with the property portfolio department, with a view to better aligning and integrating the Green agenda into the day-to-day processes and functioning of the business.
The Group's Green agenda is discussed in greater detail here.
Human capital development
Italtile strives to be the employer of choice in its industry. The Group's strategy is to recruit and retain the best people from South Africa's erse population base, and to ensure they are empowered, accountable for their actions and rewarded accordingly.
The Group's goal is:
- to match the demographics of the organisation with the erse markets in which it operates. To achieve this, a representative team is tasked with managing the employment equity plan and ensuring that milestones are achieved;
- to employ a range of mechanisms to promote worker participation in the operational decision-making process;
- to continue to implement the profit incentive scheme instituted in 1990, whereby all members of staff share in the Group's trading profits;
- to cultivate entrepreneurship within the Group by ensuring trading operations are franchised or in partnerships with the Group; and
- to evaluate and evolve training initiatives continuously to improve the skills level in the organisation.
Training and development initiatives are formulated and conducted in-house, ensuring relevance to the Group's culture, values and strategy.
178 (2013: 86) Group-wide training courses were conducted during the year. Courses are designed for students ranging from Beginners to Intermediate and Advanced levels. Training courses include an induction course for all new employees, as well as focused business, technical, management and corporate governance programmes. Minimum training competencies have been mapped for all job titles to support consistent standards across the Group.
Over the past year R5 million (2013: R5 million) was spent on training and staff communications and course development. 1 311 (2013: 964) staff members completed courses in the review period.
In addition to Group-wide training interventions, Italtile's Tiling, Plumbing and Laminate Academy continues to raise the benchmark in product knowledge training.
Italtile is committed to satisfying the needs of its customers while delivering acceptable profit growth. The Group endeavours to create wealth for the benefit of all stakeholders.
The value added statement is a measurement of the wealth the Group created in its operations by adding value to the cost of raw materials, products and services purchased. The statement shows the total wealth created and how that was distributed.
The statement also takes into account the amounts retained and reinvested in the Group for the replacement of assets and development of future operations.
Value added statement
|2 745||2 141|
|Cost of goods and services||(1 597)||(1 182)|
Income from investments and interest received
|Value added||1 159||985|
Value distributed and retained
|– Salaries, incentives and benefits||178||15||155||16|
|Providers of capital||172||15||161||16|
|– Outside equity holders||15||1||20||2|
|– Ordinary dividend||157||14||141||14|
|Reinvested in Group activities||577||50||497||51|
|– Retained income||509||44||444||46|
Value distributed and retained 2014
Providers of capital
Reinvested in Group activities
Value distributed and retained 2014
The total economic impact of an organisation includes indirect impacts. These are usually benefits arising in the course of its business to which a monetary amount is not directly attributable. Italtile does not assess and quantify its indirect economic impacts although the Group does provide indirect economic benefits:
- The Group spent R1 597 million during the year purchasing tiles and sanitaryware as well as other products and services from suppliers. This in turn creates opportunities for suppliers to employ more staff to keep pace with the Group's demands.
- During the year the Group paid R232 million in taxation, for the ultimate benefit of all South Africans.
- The Group paid R178 million during the year to employees in the form of salaries, incentives and benefits. These employees in turn supported their families, contributing to the economic activity of their communities and the South African economy.