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The corporate social responsibility plan is an integral part of the group’s overall business strategy. In particular, the group is committed to uplifting the community which we serve. The main objectives of the plan are:
The aim of our social responsibility programme is to assist the economic and social progress of marginalised communities with the sponsorship of upliftment projects. The majority of our support goes toward education and training followed by health and social development. The focus of the programme has been more towards the plight of children in our society.
We have continued to support the building of classrooms and amenities for schools in KwaZulu-Natal though Project Build. Project Build was established in 1977 and aims to improve the quality of life for impoverished communities in KwaZulu-Natal in respect of education and community facilities. The emphasis of our sponsorship will be in the rural areas where there are no facilities and, in fact, many children in the area still attend school under trees or in overcrowded and dilapidated mud huts with no protection from the climate.
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Earlier this year, we completed the building of two sanitation facilities at Sicelulwazi Primary School at KwaMashu. We are also sponsoring the building of two classrooms and a sanitation facility at Ifafa Primary School near Umzinto and three classrooms for Ethangeni Combined School near Dundee. We continued to support the Children of the Dawn organisation, which focuses on caring for HIV/AIDS orphans and vulnerable children throughout South Africa. Lewis is currently sponsoring 45 children and such sponsorship covers their needs such as schooling, nutrition, clothing, hygiene and health. It is our intention to expand this sponsorship to include a further 38 children. Support has been given to the following:
Our corporate social responsibility programme has been extended to include communities in Botswana, Lesotho, Namibia and Swaziland which we serve through our extensive retail network. Our major sponsorship has been to the SOS Children’s Homes in each country where we have provided merchandise items such as fridges, stoves, television sets, furniture, beds and mattresses. We have also provided funding for the general day to day running costs. Lewis is one of the major sponsors of the Community Chest Twilight Run, an annual event in Cape Town. The proceeds of the thousands of entries to this run contributes to the Community Chest’s fund-raising. Sundry ad hoc assistance is provided to various non-profit organisations in response to requests. In addition, financial assistance and donations of kit are made to sports clubs in previously disadvantaged areas. Through the Lewis Club, the following contributions have been made to the social and economic upliftment of our communities:
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 Handover ceremony of Ethangeni Combined School, Dundee  
Handover ceremony of Ifafa Junior Primary, Umzinto, KwaZulu-Natal
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In the Financial Mail/Empowerdex Empowerment survey of April 2008, Lewis Group was placed second in the Retail sector. The DTI introduced revised codes and we are currently recalibrating systems to be able to measure our rating in terms of the revised standards.
The group continues to measure progress in meeting internal targets for transformation. Regular reports in respect of employment equity, training, procurement and the corporate social responsibility programme are presented bi-annually to the Transformation Committee. The Transformation Committee assesses the progress relative to targets set. To date, we are making good progress, particularly in respect of employment equity.
Our business success relies on a productive workforce, where sound employee relations are key. We aim to create an environment where loyal people with strong entrepreneurial and work ethic are rewarded and the skills and experience of the staff are retained to ensure the enduring performance of the group.
In particular, Lewis is aware of the costs associated with employee turnover and the cost of acquiring and training new staff. Consequently, priority is given to staff retention, particularly those who show potential to grow within the group. There are a number of benefits to this strategy, one of which is to reward employees who contribute to the success of the group and secondly, to create a culture where employees feel a sense of belonging to the “Lewis family”.
We are also committed to ensuring a workplace that is representative of the demographics of South Africa and our customer base. We continually monitor our employee profile to ensure that it is reflective of the communities which we serve. 85% of our staff are from black communities.
We provide for the development of our staff offering an extensive range of training courses for all employees concentrating on the skills set for each of the job categories. It is the responsibility of operational management to continually identify candidates who require further training to enhance their performance and overall skills. During 2008, 2 698 staff members attended training courses including 1 908 previous disadvantaged staff. Particular emphasis was placed on training in respect of the National Credit Act.
Staff with management potential are continually being identified and being given the opportunity to further develop their career within the group. Manager development programmes are in place to take the employee through junior management levels through to senior management roles. In addition, a development pool confirming staff from previous disadvantaged communities, who have been identified as having management potential, are receiving further training and exposure.
A training team working closely with the human resources department travels throughout South Africa providing on-site and off-site training supplementing interactive computer training on product knowledge at the stores.
The group has expanded skills training and product knowledge by means of a weekly television broadcast, known as “Lewis Live”, directly to our branches. During the broadcast, employees are exposed to skills training and product knowledge. This contributes to a team culture where the staff understand the requirements of other jobs in the store environment.
We are accredited as a training provider within the Wholesale and Retail Sector Educational and Training Authority.
The group provides a number of other benefits:
We recognise our employees' rights to associate freely and to bargain collectively and a recognition agreement exists with the South African Commercial, Catering and Allied Workers’ Union (SACCAWU). Recognition agreements have also been concluded with unions in Botswana, Lesotho and Swaziland.
Lewis has an HIV/AIDS awareness programme which is integrated into the regular company training programmes available to our staff. The aim of the programme is to advise staff members of the effects of HIV/AIDS and available preventative methods. Brochures are regularly distributed to staff.
An HIV/AIDS management programme has been made available to permanent staff and their immediate families. The programme is run by an external service provider who provides the following services:
Participation by employees and their families is voluntary and all counselling given is treated as confidential. The group bears the cost of this cover on behalf of all its employees.
This HIV/AIDS management programme has been promoted through all the staff communication channels.
A substantial amount of merchandise is procured from suppliers, which are mostly small, medium and micro enterprises and mostly owned by persons from designated groups. During the year, approximately 40% of purchases in the furniture category were bought from Black Economic Empowerment (BEE) suppliers. In addition, 90% of all vehicles purchased were bought from a BEE vehicle dealership and approximately 30% of our rental premises are owned or controlled by previously disadvantaged individuals. Our payment terms are 30 days which support the cash flows of these suppliers. Our Enterprise Development initiatives include supporting small black owned businesses that provide services to our group. Financial assistance is also given to these businesses.
We recognise that our activities do impact on the environment. The impact is minimised through adopting a strategy of regularly reviewing the group’s activities and compliance with relevant legislation.
The main areas of focus are:
With respect to our suppliers, where practicable, we review their activities and supply chain to determine the impact on the environment and communities.
Pupils and staff at Ifafa Junior Primary School
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Two classrooms for Ifafa Junior Primary, Umzinto, KwaZulu-Natal
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