| SUSTAINABILITY REPORT |
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| Murray & Roberts is committed to enhancing the growth of its
business and adding value in a responsible and sustainable
manner. We recognise that we have a duty to create value for
our current stakeholders and future generations. |
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| Murray & Roberts has made a non-negotiable commitment
to sustainable earnings growth and value creation. |
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View sustainable earnings growth and value creation charts  |
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This commitment drives the Group's strategy and
decision making and reinforces its responsibility to create
value for current and future stakeholders and generations.
As corporate citizen, Murray & Roberts is committed
to the national agenda of South Africa, including the
pursuit of employment equity throughout our organisation,
the economic empowerment of all sectors of society
and facilitation of the growth of direct investment into
the economy.
Murray & Roberts sees an opportunity to take the lead in
tackling the skills deficit in South Africa using the
substantial National Industrial Participation Program
obligations it has incurred through its involvement in
various public sector projects and the new Central
Securities Depository Participant regulations that will
govern its involvement in the pending power generation
projects, particularly the nuclear program. This entails
the enhancement of academic knowledge in power
related subjects and establishment of large-scale
skills development capability within the communities
surrounding major power stations and selected
other developments.
The model for this process is derived from the success
achieved in skills development for the Mozal Aluminium
Smelter project in Mozambique where almost 10 000
Mozambicans were pre-selected from the community and
introduced to particular streams of development training.
Subvention partnerships are proposed with selected
universities to establish world class academic capacity
in fields such as nuclear physics and engineering,
manufacturing excellence and project management.
The current FET College partnership with the Department
of Education could also be extended through this
mechanism, to the selected investment areas. This will
facilitate the localised development of higher level artisan
skills for the investment program.
Murray & Roberts has adopted the Global Reporting
Initiative guidelines to measure performance and report
against economic, environmental and social parameters.
We apply the principle of zero disabling incident to all
aspects of our business - our people, the natural
environment in which we operate and broader society.
As part of a three year business planning process, the
Group assesses the financial performance of operating
companies and their compliance with risk, health, safety
& environment and broad-based black economic
empowerment requirements. Performance targets are
agreed with group leadership and operating companies
submit quarterly progress reports. |
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| STATEMENT OF VALUE ADDED |
| Value added is the measure of wealth the Group creates
through its operations by adding value to the cost of raw
materials, products and services purchased. The diagram
above summarises the total wealth created and how it
was shared by our stakeholders who contributed to its
creation. Also shown is the amount retained and
reinvested in the Group for the replacement of assets and
further development of people and operations. The
detailed statement of value added is published the financial statements. |
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| SHAREHOLDERS |
Shareholders benefited from a share price appreciation
of 152% over the year to 30 June 2007 and a 93%
increase in the total dividend. This has contributed to a
market capitalisation increase of more than 2 000% since
Rebuilding Murray & Roberts commenced in 2000.
General communication with shareholders is facilitated
through: |
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the Group’s annual and interim reports |
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the Murray & Roberts website (www.murrob.com) |
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the annual general meeting |
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media releases |
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the JSE news service (SENS) |
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operational news |
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the Murray & Roberts client service centre |
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Financial results presentations are held in February and
August each year.
Additional information is provided to the investment
community through: |
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one-on-one meetings with the group chief executive
and group financial director |
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road shows and investor conferences |
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subject-specific presentations |
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| Feedback from the market is obtained through: |
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broker reports |
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one-on-one contact |
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the CE forum on the public website |
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| CUSTOMERS |
| The Group's customer base includes corporate
institutions, governments, parastatals, mining houses,
large businesses and other contractors, and private
developers. Our stated objective is to gain preferred
status by delivering world class projects, products
and services that fulfil customer requirements.
Specific initiatives to enhance our customer/client
relationships include: |
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identification of customer/client needs |
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staff training programs |
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strategic alliances |
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market engagement |
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innovation and education |
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focus on quality, cost and delivery measurables |
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Mechanisms are in place to monitor customer/client
satisfaction. These include questionnaires and regular
customer surveys, with key account and project
managers maintaining regular contact with customers/
clients. Certain operations have call centres which field
enquiries and undertake to resolve complaints within a
specified period of time. A group client service centre
assists in bridging the knowledge gap between the Group
and its people, potential clients, existing clients and the
general public.
Contract terms and conditions typically provide the
mechanism for managing contractual disputes. These
may be adjudicated by a third party, arbitration or
litigation. Disputes are managed at the appropriate level
under the guidance of responsible executives and where
necessary, are escalated to executive director level. |
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| SUPPLIERS |
| There are policies and procedures in our operations for
the selection of suppliers. The following performance
deliverables are important: |
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pricing |
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quality |
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reliability |
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The creditworthiness, safety and environmental records
of joint venture partners or subcontractors are also
considered.
The performance of our suppliers is monitored on a
regular basis and supplier audits are conducted from time
to time.
In line with the Codes of Good Practice on broad-based
black economic empowerment (BBBEE) targets for
preferential procurement, the Group aims to achieve 50%
BBBEE procurement expenditure from all suppliers based
on the BBBEE procurement recognition levels as a
percentage of total measured procurement expenditure
by 2012. |
