| SUSTAINABILITY REPORT CONTINUED |
| |
| RISK MANAGEMENT |
Risk assessments are conducted at group level to
support half year and full year financial reporting. At
operational level, assessments support the three year
business planning process. At project level, risk reviews
are conducted as part of bid preparation. Activity based
risk assessments are conducted on project sites to
establish health, safety and environmental exposures.
The Group conducts rigorous due diligence studies to
support the acquisition of new businesses. Capex
requirements to support capacity maintenance and
organic growth are assessed as part of the three year
business planning process, with exceptional items
reviewed by the group risk committee.
Procurement of work is the primary medium through
which risk enters the Group. The group risk appetite sets
the operational environment for risk. Prospects are filtered
against criteria such as value, country, legal system and
scope and the level of authorisation required is indicated.
The opportunity management system (OMS) supports
the evaluation and approval of project opportunities in
the context of the risk appetite. A major upgrade of the
OMS was deployed at the end of the financial year which
will add significant operational value to the existing
corporate control.
The table below indicates the group objectives for health, safety and environment management, and the extent to which
these have been achieved to date. |
| Objective |
Achievement |
| Zero harm consequences |
This continues to be the Group’s aspiration for all its activities. |
| Zero fatalities and permanent disablement |
A disappointing performance. This target has still to be achieved. |
| LTIFR < 3 |
The Group came close to achieving this mark, and will continue to
drive performance towards the long term goal
of < 1. |
| Comprehensive incident reporting |
This goal was met, as the majority of operating companies now
provide detailed HSE reports. This process is ongoing and new
measures will be put in place to better manage all HSE risks. |
| Stop.Think awareness campaign |
This was successfully rolled out to all South African operations and
all Murray & Roberts group companies will soon be involved. |
|
| |
| CORPORATE SOCIAL INVOLVEMENT |
Murray & Roberts is integrated with society and its
business activities have an impact on the communities in
which they are undertaken. The Group is committed to
managing this impact responsibly and accepts that its
obligation extends beyond statutory requirements to the
upliftment of society as a whole.
The Murray & Roberts corporate social involvement (CSI)
program focuses on development projects aligned with the
Group's business strategy, supporting mathematics,
science and technology education, numerical education in
early childhood development and environmental education.
Murray & Roberts supports sustainable social development
through many of its community initiatives. A number of
employees participate in community development as
champions of projects the Group supports.
Investment of R10 million (2006: R10 million) in CSI
projects during the year under review includes funding for
the Maths, Science and Technology in Engineering
project developed by the Maths Centre for Primary
School Teachers, the National Business Initiative's
Education Quality Improvement Partnership schools
program and the Endangered Wildlife Trust's Biodiversity
Environmental Education Project.
Murray & Roberts supports the Chair of Environmental
Education at Rhodes University, the Chair of Applied
Mechanics at the University of the Witwatersrand and the
Chair in Collaborative Governance and Accountability at
the University of South Africa. The Group is a founding
member of the international Engineering Risk Institute.
A number of awards are made each year to recognise and
reward initiatives that contribute to the enhancement of
society. These include the Jack Cheetham Memorial Award
for development in sport, the Des Baker Award for
students of architecture and the JD Roberts Award for
environmentally sustainable solutions to human dilemmas. |
| |
| BLACK ECONOMIC
EMPOWERMENT |
Murray & Roberts follows the provisions of the Broad-
Based Black Economic Empowerment Act and the
principles embodied in the draft Good Practice Codes,
by instituting a policy for the upliftment of the historically
disadvantaged.
This includes: |
| |
| • |
appropriate broad-based empowerment ownership at
the level of Murray & Roberts operating subsidiaries
through a tiered approach at Murray & Roberts
Holdings Limited and the operating subsidiaries |
| • |
a meaningful number of black senior executives in
the Group |
| • |
an employee complement that reflects the diversity of
South Africa's demographic profile |
| • |
a core complement of black professionals |
| • |
preferential procurement policies that recognise
the broad-based principles of black economic
empowerment |
| • |
enterprise and social development programs aimed at
accelerating the development, empowerment and
access to the economy of previously disadvantaged
individuals |
|
| |
Additional information on our black economic
empowerment strategy and practices is available on
pages 12 and 13 of the annual report.
A review which measured the Group's current
empowerment criteria was conducted during the year
and it confirmed that the Group's empowerment
status is compliant with various industry charters and
current legislation. |
