Integrated Annual Report 2014
Our stakeholders and how we engage them
Key to this report.

Our stakeholders and how we engage them

Below is a list of our stakeholders, why they and their concerns are important and how we engage with each group:

Stakeholder group  Why they are important 
Customers  -
  • Provide the markets for our products
  • Provide revenue, without which the business could not function
Employees  -
  • Integral to delivery on our strategic objectives
  • Provide skilled labour to produce and market our products
  • Our most important and valued ambassadors
Government –
National, provincial, local and parliamentary
portfolio committees  
  • Develop legislation and policies that directly impact the environment in which we operate
  • Have the ability to grant or revoke licences necessary to operate
Shareholders  -
  • We are ultimately accountable to shareholders who expect returns on their investments
  • Influence decisions taken by the board
Suppliers  -
  • Directly influence raw material and other input costs
  • Reliable delivery impacts our ability to deliver on customer needs and expectations
 Trade unions -
  • More than 70% of our workforce belong to unions and more than 80% are covered by collective bargaining agreements
  • Good relationships with organised labour can avert industrial action and positively influence the outcome of wage negotiations 
Local communities – 
  • Live in the vicinity of our operations, their environment and employment opportunities being directly impacted by our business
  • Direct beneficiaries of our corporate social investments and economic opportunities presented by our operations
NGOs and special interest groups  -
  • Represent the social and environmental concerns of local communities and broader
    society
Small and medium enterprises  -
  • Provide a range of secondary products and services to our operations
  • Provide us with the opportunity to improve our preferential procurement and enterprise development score on the dti Codes of Good Practice scorecard
Media  -
  • Has the potential to influence public perception and brand reputation
Stakeholder group  Engagement platforms
Customers  -
  • Regular, ongoing engagement between sales staff, management and key customers to determine the needs of the market and identify
    issues as they arise
  • Direct ad hoc communication when necessary to inform customers about new developments or the resolution of specific issues
  • Customer satisfaction surveys
Employees  -
  • Internal magazines and announcement mailers, intranet, posters and email campaigns
  • Results presentations to senior management
  • CEO roadshows
  • Shop-floor safety meetings
  • Performance and career development reviews (package category employees)
  • Formal grievance and dispute resolution structures
  • Culture and values surveys
Government –
National, provincial, local and parliamentary
portfolio committees  
  • CEO and officers in charge of specialist functions engage on an individual level with national ministry, provincial and local
    government representatives
Shareholders  -
  • Quarterly reports, bi-annual and annual results presentations
  • Shareholder roadshows and meetings
Suppliers  -
  • Regular meetings between management and key suppliers
  • Managers on-site conduct ongoing engagement and management of contractors
  • Contractors undergo all safety training
 Trade unions -
  • Union representation on a range of committees including safety, health and environment, training and employment equity
  • Shop-floor line managers engage with union representatives on a daily basis
  • Formal engagement as part of the wage negotiation process
  • Meetings between CEO, senior management and union head-office level
  • Other engagement as and when issues arise 
Local communities – 
  • Annual community engagement facilitated by local councillors, municipal representatives, community leaders and NGOs
  • Environmental open days
  • Arranged meetings with CSI managers
  • Regular planned one-on-one meetings
  • Advertising
NGOs and special interest groups  -
  • Attend bi-annual environmental open days in line with Atmospheric Emissions Licence (AEL) conditions, and various community engagement forums
  • Responses to NGO requests for meetings and information on a case-by-case basis
Small and medium enterprises  -
  • Attend annual community engagement forums
  • Invited to attend preferential procurement days that detail our tender processes and opportunities
  • Arrange office meetings
Media  -
  • Company spokesperson deals directly with media on a regular basis, responding to queries and requests for information and keeping media informed of key developments at the company
  • CEO and officers in charge of specialist areas are interviewed by the media on a regular basis
  • Media representatives are invited to interim and full year results presentations as well as important company events such as the launch of corporate social investment (CSI) projects

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Towards the end of 2014 the corporate affairs department commissioned a study to assess the quality of relationships with key stakeholder groups including government, the media, statutory and sectoral bodies, NGOs and communities.

The study produced an “emotional barometer” with relationships being plotted on an index ranging from zero to 100. Scores below 40 were considered dysfunctional, while those 80 and above were deemed “excellent”.

We scored highest among industry bodies – a result that was to be expected given the fact that ArcelorMittal South Africa is the largest player in the domestic steel industry. Relationships with communities, NGOs and government were “strong” overall, while those with the media were generally weak.

Stakeholder engagement at ArcelorMittal South Africa is managed by the corporate affairs department reporting to the CEO’s office and in charge of the management of the following areas:

  • Government affairs and stakeholder engagement
  • Reputation and issue management
  • Corporate communications
  • Internal and external communications
  • ArcelorMittal Foundation and CSI projects
  • Trade and industry associations

The department has a mandate to work on the consolidation and enhancement of relationships with key stakeholders; managing public affairs; liaising with government at local, provincial and national government level as well as industry bodies, community members and district leaders; and forging open and honest relationships.

The performance of the department is assessed using specific performance indicators such as:

  • Positive media profile checked using surveys and qualitative data
  • Improved government relations checked using qualitative data such as feedback
  • Ranking in sustainability indexes such as JSE-SRI, etc
  • Number of awards received
  • Employee attraction and retention using internal and external surveys, benchmark, etc
  • Face-to-face meetings with local communities.

Performance in these areas, as with regular information about the company’s social, environmental and ethical performance, is disclosed regularly:

Internally

  • Executive management reports
  • Quarterly reports
  • Quarterly bar reports
  • Annual stakeholder engagement report
  • Electronic newsletter

Externally

  • Face-to-face feedback meetings
  • One-on-one meetings with stakeholders
  • Newsletters
  • Integrated annual reports
  • Forum and community meetings

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