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The process Preserving the status quo

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									                                              INSTITUTE OF DIRECTORS IN SOUTHERN AFRICA


                                                                                           4th Quarter 2007




    KING III
Given changes in legislation and                   the legal aspects contained in the Report.
                                                                                                      Prof M.E. King (Chairman)
                                                                                                         Editting Committee
                                                                                                                                   Ms L. Engelbrecht (IoD)



international governance trends, it’s              The information is then considered by the
time for an updated version of South               main Committee and followed by public
Africa’s own corporate governance                  input before King III will be finalised. “The
bible, the Institute of Directors’ (IoD)           same process was used for King II”, says
King Report.                                       Engelbrecht. As with King II, the new report
                                                   will be the work of over one hundred experts
With just under a year to go before the            including public input.
                                                                                                           Mr F. Nomvalo                 Mr L. Weil
third King Report will be released for public                                                             National Treasury               SACOB
comment and its publication due at the             King III’s seven subcommittees and their
end of 2008, the 29 members of the King            respective chairpersons are as follows:
Committee on Corporate Governance, its 86          Board and Directors Committee, Roy
subcommittee members and 6 researchers             Andersen (14 members); Risk Management
are hard at work compiling a report that’s         Committee, Nigel Payne (8 members);
widely expected by the business community          Internal Audit Committee, Anton van Wyk
to be as influential as King I and King II.        (13 members); Accounting and Auditing
                                                   Committee, Suresh Kana (12 members);
“The changes in the law being brought              Sustainability Committee, Reuel Khoza                    Mr M. Adam               Ms M. Feinstein
about by the new Companies Act, as well as         (16 members); Compliance Committee,                      Independent               Law Society
                                                                                                                                   Compliance Convenor
international trends in corporate governance,      Miranda Feinstein (10 members); Business
have made it necessary for the Institute of        Rescue Committee, Professor David
Directors to request the King Committee to         Burdette (7 members); Mergers and
ensure that King III will be at the forefront of   Acquisitions Committee, Richard Connellan
governance in the world as its predecessors        (3 members).
have been,” says Lindie Engelbrecht, the
IoD’s Chief Executive.                             Preserving the status quo
                                                   Corporations may be governed either on a
                                                                                                            Mr N. Payne               Mr W.S. Yeowart
The process                                        statutory basis (as in the US), as a code of                 IIA                    Independent

As with King II there are several                  principles and practices, or as a combination     Risk Management Convenor

subcommittees, each dealing with its               of the two, as will be the case in South Africa
own remit and with its own convenor.               as well as the remaining 55 countries of
As Convenor of all the subcommittees,              the Commonwealth and the 27 EU states,
it is Lindie Engelbrecht’s job to edit the         including the United Kingdom.
information submitted to her before passing
it on to Professor Mervyn King, the Chairman       “Because an onerous, one-size-fits-all
of the King Committee for comment, and             approach to governance has proven itself
finally to Michael Katz, who will check all        to be counterproductive in the US – and                 Mr R. Anderson                Mr S. Kana
                                                                                                            Independent            Independent Accounting
                                                   we believe it would be disastrous for             Boards & Directors Convenor     & Auditing Convenor

                                                                                                                                           Bulletin 1
KING III
                                                                                                        Mr I. Sehoole          Mr J. Burke
                                                                                                           SAICA               JSE Limited




the growing economy - we as the King             “Therefore, in King III, we are looking at
Committee continue to believe that it is the     sustainability issues as information which
best approach for our private sector to abide    will enable stakeholders to better assess the
by a code of principles and practices on a       economic value of a company.” This means
‘comply or explain’ basis,” says Engelbrecht.    the annual statement should show how
Since King II, the United Nations has issued     the company has positively or negatively
its code on an “adopt or explain” basis and      affected the community in which it operates,
                                                                                                         Prof M. Katz
                                                                                                         Independent
                                                                                                                               Mr V. Sekese
                                                                                                                                  ABASA
the Dutch on an “apply or explain” basis.        as well as how it plans to do better during
                                                                                                       Editing Committe


                                                 the following year.
Boards are obliged in law to comply with
their duties such as acting in good faith, and
                                                 Alternative dispute resolution
in doing so, they must apply their minds in
                                                 It is increasingly becoming accepted around
the best interests of the company in regard
                                                 the world that Alternative Dispute Resolution
to any recommended practice, Engelbrecht
                                                 (ADR), far from being a reflection on the
explains. If the recommended practice
                                                 judicial system of a country, is a key element
is not in the best interests of a company
                                                 of good governance. “It is important for
in a particular set of circumstances, it is
                                                 directors to attempt to preserve business              Mr D. Cooper          Dr R.J. Khoza
a board’s collective legal duty to adopt a                                                              Independent            Independent
different practice and explain it. Describing    relationships through mediation and be                                   Sustainability Convenor

the different practice and explaining it is      afforded the novel solutions that a court
a compliance. In those circumstances,            cannot produce,” says Engelbrecht. For this
mindless compliance would be irresponsible       reason the IoD has established a mediation
and illegal.                                     centre and developed an ADR clause for
                                                 inclusion in contracts.
“South African listed companies are
regarded by foreign institutional investors      Internal audit
as being among the best governed in the          The international trend towards a risk-based
world’s emerging economies and we must           approach to internal audit recognises the fact
                                                                                                         Mr B. Sibiya         Ms L. de Beer
strive to continue that high ranking,” says      that for internal audit to add value, at least          Independent          Independent

Engelbrecht.                                     the head of internal audit must understand
                                                 the strategic direction of the company. “We
The highlights                                   believe that internal auditors should give
The King Committee subcommittees                 an annual assessment of the adequacy of
have been tasked with dealing with all the       internal controls,” says Engelbrecht. “The
international trends in corporate governance     audit committee then needs to report to the
in a bid to ensure that the King III Report is   board on this assessment.”
truly at the forefront of governance in the
world. Here’s a brief look at what you can
                                                 IT governance                                         Mr C.D. Kneale          Mr D. Tshidi
expect.
                                                 IT Governance is dealt with in some detail                ICSA                   FSB

                                                 for the first time in King III, given the
Sustainability
                                                 integral role that IT plays in the strategy of a
Over the past few years, governance,
                                                 business. “In IT governance, one is looking
strategy and sustainability have become
                                                 for confidentiality, integrity, availability of the
inseparable. “Boards can no longer
make decisions concerning themselves             functioning of the system, amongst other
only with the needs of the present and           attributes,” says Engelbrecht. “It is important
thereby compromising the ability of future       for prudent steps to be taken in this regard –
generations to meet their own needs,” says       and legislation is definitely not the answer.
Engelbrecht.                                                                                           Mr R. de Lorenzo         Dr L. Konar
                                                                                                           CIPRO               Independent

 Bulletin 2
KING III
                                                                                                          Mr A. van Wyk                   Mr A.D. Dixon
                                                                                                           Independent                    Independent
                                                                                                     Internal Audit Convenor




Business rescue                                   In conclusion, Engelbrecht says she believes
The King III Report will include a section on     the King III Report will once again set the
business rescue because of the novelty for        standard for guidelines on governance.
companies in South Africa.                        “Each member of the committee is devoting
                                                  much time and effort in the interests of SA
Mergers and acquisitions                          Inc – once again without any remuneration              Mr R. Loubser                    Mr J. Vilakazi
                                                                                                          JSE Limited                        BUSA
Due to the changes in the new Companies           or reimbursement of expenses. The Institute
Act, King III includes a section on mergers and   of Directors is grateful for their efforts and
acquisitions in order to ensure that directors    believes that the fruit of their labours will go
are aware of their new responsibilities and       a long way towards further improving the
duties.                                           standards of governance in South Africa.”



  Angela Oosthuizen promoted to
  Chief Operating Officer (COO)
                                                                                                         Mr M.D. Dunn                       Dr I. May
                                                                                                         Independent                      Independent



                               It is with great excitement that we announce the promotion
                               of Angela Oosthuizen to the role of Chief Operating Officer
                               (COO). In her new role she will oversee the day to day
                               operations of the IoD, as support to the Chief Executive, while
                               continuing to head the Director Development department.
                               We wish Angela everything of the best and if her impact in
                               the Director Development Department is anything to go by,
                               we are confident that she will make a tremendous difference                               Ms A. vd Merwe
                                                                                                                          Independent
                               to the IoD as COO. Congratulations!




IoD e-mail addresses have been changed

From 1 January IoD staff e-mail addresses will be as follows: first name + first letter of surname @iodsa.co.za
(This exempts Lindie Engelbrecht, lindie@iodsa.co.za)


E-mail addresses that have been changed are:
Angela Steyn (angelas@iodsa.co.za)                                       Lebo Botolo (lebob@iodsa.co.za)
Angela Oosthuizen (angelao@iodsa.co.za)                                  and Vuyo Machimana (vuyom@iodsa.co.za)
Johannes Sangweni (johanness@iodsa.co.za)




                                                                                                                                             Bulletin 3
                                                       Business challenges
                                                       in a changing 2007
Shepherd Shonhiwa
Chairman of the IoD

The close of 2007 is fast approaching,            Lastly, notable changes in the workplace         and other ancillary services. The mainstay
leaving many players perplexed. Some              were apparent across the board. Major            activity of the Institute for the past five years
are taking stock of their accomplishments,        among these were the redefining of BEE           has been director development. This was
others wishing they had achieved more             charters to entrench the force of the Act        given fresh impetus by revising the approach
and yet others wondering what happened.           and the supportive evaluation scorecard.         to provide additional accelerated training
Such is the effect of the fast changing world     The upshot of it was increased momentum          in response to the needs of business. In
around us that it is advisable to pause and       in major BEE investment in the mining,           keeping with one of its integral objectives
reflect, in order to understand some of the       financial services, media and secondary          of upgrading constructive understanding
intricacies.                                      service sectors. Fresh impetus was also          amongst all business stakeholders, the
                                                  given to the concept of BBBEE when large         Institute provided mediation services to help
What challenges?                                  financial institutions, media and telecoms       members manage the business challenges
For brevity, one can categorise the 2007          implemented wholesale schemes to bring           meted out in 2007. “Since we cannot
business year according to macro-economic         on board HDPs as shareholders. All these         change reality, let us change the eyes
shifts and national socio-economic, political     developments were defining moments for the       which see it”. (Nikos Kazantzakis)
and workplace changes. Due to their integral      business environment, changing the profile
connection, they all impacted most people         of the shareholder mix in colour, gender,        The future
and businesses at varying levels. It may be       culture and economic orientation. The            Looking to the future, let us look into the
reasonable to liken the confusion arising         melting pot impact will become increasingly      crystal ball to predict the likely challenges
from such high-speed challenges to that           evident for decades to come and create real      to business in 2008. South Africa Inc will
experienced by the lead actor in the movie        equality in our society. This will give some     survive and continue to prosper in many
“The Gods must be crazy”!                         meaning to Henry Miller’s observation that       ways, including preparations for the 2010
                                                  “One’s destination is never a place, but         World Cup.        There will be sharpened
On the macro-economic front, the biggest          a new way of looking at things”.                 focus on poverty reduction; bolstering the
challenge to business this year has been                                                           economy to maintain GDP growth of 5%
the run-away price of crude oil which is          Contribution of the IoD                          per annum and containing the scourge of
threatening the $100 per barrel mark by           The IoD was ready to play a meaningful role      violent crime of all forms. The year will see
December. This has a real domino effect           in facilitating management of all these mega     heightened political activity as democracy
through society as oil is a cost driver in        challenges in the business environment           finds new meaning ahead of the 2009
all goods and services, and particularly          in South Africa. As a professional institute     general and presidential elections. The
on inflation. The main socio-economic             promoting good corporate governance,             tempo of business reincarnation through
challenges pertain to the high cost of living,    its contribution sometimes transcends the        demands such as BBBEE will be intensified
which bred unprecedented labour unrest in         direct needs of its members, to assist the       ahead of 2009. Development of meaningful
most key economic sectors. Business have          broader society. This was done in many           skills will receive sharper focus as the skills
suffered significant losses from lengthy stay-    ways, major of which are:                        deficit deepens vis-a-viz the demands of
aways, while the masses bore the brunt of         • participating in the company law               economic growth. Most of all, the necessity
mainly unprovoked violence. Interest rate         review process as part of private sector         for sound corporate governance will increase
hikes have reduced workers’ disposable            representation to protect the interests of the   in keeping with the changing environment.
income, leading to strained employer-worker       corporate fraternity;                            The IoD will continue to be active in shaping
relations that in turn retard productivity.       • revising existing relationships to redefine    the future through the King III Report now
                                                  smart alliances with relevant professional       underway, and advising on director issues,
The South African political climate has been      and business representative bodies like          such as remuneration, amid its current
a whirlwind for the whole year. This is fuelled   SAICA and BUSA;                                  activities. As the Red Indian proverbs goes,
by the ANC leadership race to be concluded        • assisting corporates and fledgling IoDs        the IoD “Shall be remembered forever by
in December. The end game will have far-          in neighbouring countries with training          the marks it leaves behind”.
reaching effects on the future governance         in directors’ duties and vital aspects of
of the country. Business will be affected to      corporate governance;                            IoD Chairman,
the extent that investment attractiveness         • restructuring the Institute for more           Shepherd Shonhiwa
correlates closely with political democracy       effectiveness in the areas of member
and openness.                                     information services, board evaluation

 Bulletin 4
  Portfolio
  update
A message from Board Services
The demand for independently facilitated          be able to tick the box, have recognised the     so when a post review action plan is put
board appraisals has increased dramatically       shortcomings of this exercise as well as the     in place to address some of the areas
since the IoD’s launch of this service            real value that an experienced independent       recognised as needing improvement. The
approximately a year ago. In collaboration        facilitator can add and are now using the        IoD, as part of its service, has assisted
with our sister organisations world wide the      IoD to assist them in the process.               many companies with the post review
IoD is recognised as a leading pioneer of this                                                     implementation process.
important aspect of governance and is now         The process has also proved to be a good
probably the leading provider of this service     basis for identifying and resolving issues       Members are encouraged to promote the
in South Africa. Utilising methodology that       that might be negatively affecting board         value added aspects of a board appraisal
is comparable to international best practice      dynamics but have been left unaddressed          and are welcome to contact the IoD for
our service has assisted many boards, in          because of power imbalances or other             further information.
both the private and public sector, in their      factors
desire to achieve greater effectiveness.                                                           With kind regards,
                                                  The real benefits of an appraisal arise not      Tony Dixon
Many of those organisations that were             so much from the appraisal process itself,       Director: Board Services
conducting internal appraisals, largely to        although there are indeed some, but more


A message from Director Development
Dear Members,                                     who missed this intake, the good news is         With kind regards,
                                                  that we are scheduling and additional 4          Angela Oosthuizen
It is now that time of year to start your diary   programmes from April - November next            Chief Operating Officer
planning for 2008 and make the commitment         year. We will be celebrating with the fist lot
to continuing professional development. We        of successful delegates from our September
hope that in your planning, you will consider     2007 intake as we host their certificate
one or more of the IoD Director Development       presentation in early February.
offerings and look forward to seeing many
of you again.                                     May I take this opportunity to thank our more
                                                  steadfast Director Development clients and
All past delegates and course attendees,          friends who continue to show commitment
please diarise our important Director             to development and support the IoD’s
Development events like the IoD Alumni            initiatives - BMF; Microsoft; IDC; Vodacom;
Dinner - 4 September 2008 and watch out           Group 5; De Beers; MQA; BASA and many
for the detail early in 2008.                     others. Thank you to our Alliance Partners
                                                  SAICA and CIMA and to those of you just
Once again our next IoD Accelerated               embarking on your relationship with us, may
Directorship programme (ADP) for January          2008 be prosperous.
is nearly fully booked, but for those of you


A message from Membership
Dear Members                                           and Contemporary Gazette services.

We received an overwhelming response to the            Your username is your e-mail address and your
Affinity Partner Survey we conducted a few             password is your membership number.
months ago – thank you!
                                                       Members should prepare themselves for a busy
94% of the members said they would like                year. Due to the demand, we have increased the
to continue receiving the getAbstract and              number of member networking breakfast and we
Contemporary Gazette services in 2008. The             hope to see you all there.
results are contained in this issue of the bulletin.
                                                       With kind regards,
From 1 January 2008 a single login is required to      Amanda Bougardt
access the IoD website as well as the getAbstract      Head of Membership

                                                                                                                                 Bulletin 5
  IoD wall of fame
  Featured member: Les Weil
  South African honoured by RICS
The IoD has instituted a “Wall of fame” to recognise any outstanding achievements of its members.
If you as an IoD member or if you know of any IoD members who qualify to be recognised on the
IoD “Wall of fame” please contact Michellé Blundell on 011 643 8086 / michelleb@iodsa.co.za
                                                                                                                                       Les Weil
Les Weil, chairman of JHI, was awarded          A number of South African institutions have         role in our development, infrastructure and
a fellowship of the Royal Institution of        allied themselves with RICS. “This made             municipal management”.
Chartered Surveyors, London. The award          eminent sense”, said Weil, “bearing in mind
was made in recognition of a 30-year plus       that property like so many other types of           Weil said that the UK market is being
contribution to the South African property      business has become global”                         affected by the sub-prime mortgage lending
industry.                                                                                           scenario and yields have moved out by
                                                Weil believes that young South Africans             0.25%. More importantly, there is hesitation
Weil’s certificate was presented to him         wishing to make a career in real estate will        on the part of buyers who are not prepared
by David Tuffin, president of RICS, at the      find it highly attractive to obtain the RICS        to pay the premium prices demanded by
Institution’s London HO building, which         qualification in view of its international          sellers, which has caused a substantial
fronts onto Parliament Square where the         recognition and the consequent opening up           switch-off in transaction volume during the
statue of Nelson Mandela was unveiled.          of employment opportunities internationally.        last few weeks.
                                                “It has the benefit of enabling South Africans
The 136 year old RICS is one of the             to gain international experience through an         Having regard to the huge volume of liquidity
most respected and high profiled global         internationally recognised qualification and        still seeking real estate investments in all
standards and membership organisations          hopefully many of those attaining a RICS            countries, Weil’s view is that the market
for professionals involved in land, property,   qualification will return to South Africa           correction will neither be too dramatic nor
construction and environmental issues.          and utilise their skills on the local property      of long duration. He remains particularly
Its membership body consists of 136 000         scene. Having regard for the current skill          optimistic about South African prospects but
professionals across 120 countries. Its         shortage in South Africa, raising the RICS          believes that yields in the listed sector and
undergraduate qualification requires a          profile here should encourage those who             on direct investments will move upward by
four year course at university or similar       have qualified in England and elsewhere to          0.5 to 1% over the next year.
(accredited) institution.                       seek employment in South Africa and play a



IoD Education Trust student receives editors award
Luvuyo Rani, AIM IoD Education Trust student 2006,         Rani’s company, Silulo Ulutho Technologies, operates
received the Editor’s Award at the Cape Times/KPMG         a one-stop centre in Khayelitsha that sells re-serviced
Business Personality of the Year Awards ceremony at        computers, does repairs, offers internet connections,
the Mount Nelson Hotel.                                    lamination, CV formatting and scanning services.

“The Editor’s Award was introduced in 1996 in              It was set up in 2004 after the introduction of outcomes-
recognition of entrepreneurial excellence in smaller or    based education, when Rani said he spotted an
emerging businesses, and job creation in previously        opportunity to help teachers understand how to use
disadvantaged communities.                                 computers. The company has four shareholders and
                                                           five full-time employees and also has full-time students
Rani said winning the Editor’s Award was a ‘huge thing’    attending short courses.”
for his business. ‘It gives us confidence to do more in
communication.’                                            From all of us at the IoD, well done Luvuyo!                            Luvuyo Rani


                        IoD Education Trust student gets BMF manager
                        of the year
                        Wallace Manyara, a 2007 PGDMP IoD Education Trust student, was recently awarded Manager of the Year of
                        the Black Management Forum.
                        Congratulations Wallace!

                        Wallace Manyara
 Bulletin 6
Regional roundup
IoD annual golf day - Gauteng
On 5 November, the IoD held its Annual Golf Day at                Our winning 4-Ball from left Darren Smith,Siya Wotshela,
Johannesburg Country Club in Woodmead. With our lead              Graham Luden and Kwanele Gumbi
sponsor, PriceWaterhouseCoopers, the day turned out to be
the best the IoD has ever hosted. 224 golfers played on the two
courses making it the biggest field an IoD golf day has seen.
Congratulations to the 4-ball who captured first prize, Kwanele
Gumbi, Darren Smith, Siya Wotshela and Graham Luden.

The IoD extends a very big thank you to our participants,
sponsors and organisers. A special mention to all those who
sponsored holes and/or prizes: AIG SA, American Express
International, Bells, Compleat Golfer, Courier & Freight Group,
David Brown Gear Industries, Dale Hayes Golf Events, Easigas,
Ethos Private equity, Gumbi Global, HM Timber Limited, HRG
Connex Travel, Institute of Bankers, Letsema Communications,
Marsh Vikela, Nashua Mobile, Otis, PriceWaterhouseCoopers,
SAB Miller, Spencer Stuart, Stallion Guarding, Teba Bank and
Webber Wentzel Bowens.

And to save the best for last our organiser, Sharon Bruyns,
from Dale Hayes Golf Events who single handedly planned the
day to perfection, while Dale, who was on form as usual, had
everyone rolling with laughter, as our MC for the evening.




                                                                        The Caddies




                                                                         Another bunker shot well out by Russel Fox from PWC




     IoD EXCO Member & Captain of The JCC Malcolm Dunn



                                                                                                                      Bulletin 7
Year end luncheon - Western Cape
The IoD Educational Trust is in the process of selecting
students with UCT’s Graduate School of Business for
the 2008 Future Leadership Development Programme,
the final year of the 3-year programme to see a total of
90 students through Associate in Management (AIM)
or Post Graduate Diploma in Management Practice
(PGDMP).

“Most entertaining”, “enlightening” and “thoroughly
enjoyable” was some of the feedback received from
members and guests attending the IoD Western
Cape year end lunch addressed by Richard Cock at
the Vineyard Hotel in Cape Town on 29 November
2007.

His topic was Workplace Harmony as a conductor and
parallels for leaders in business. It was an occasion
well in keeping with the high standards achieved in
previous years. Guthrie & Rushton Attorneys kindly
sponsored the wine.

Generous donations and pledges raised R25 000
in the raffle, proceeds to the Red Cross Children’s
Hospital School. Winning tickets were held by Nic
Cronjé for the Erinvale weekend; James Louw and
Craig Guthrie for two double Bishops Chapel concert
tickets; Mary van Apeldoorn and Leif Westvig for
Vergeleegen wine and MUM magnum; Jill Britt for
Recipes from the Hearth, fundraiser cookbook of
Business Against Crime Western Cape.




 Bulletin 8
                                                                                   IoD supports
                                                                                       fair trade
Fair Trade is a trading partnership, based       are required to compensate for the profit-      is an enormous industry affecting the lives
on dialogue, transparency and respect, that      driven disappointments that are visible in      of millions! Growing and processing coffee
seeks greater equity in international trade.     every country and on every continent.           is highly labour-intensive. Each coffee
It contributes to sustainable development                                                        cherry is carefully handpicked from the tree
by offering better trading conditions to,        Fair trade is an organised social movement      and every coffee bean is hand-sorted and
and securing the rights of, marginalised         and market-based model of international         graded. Thousands of people are involved
producers and workers. Fair trade                trade which promotes the payment of a fair      in providing the end-user with a cup of
organisations (backed by consumers) are          price as well as social and environmental       coffee. The majority of these people work
engaged actively in supporting producers,        standards in areas related to the production    at the initial stage in the coffee process.
awareness raising and in campaigning             of a wide variety of goods. The movement        The farmers, the pickers, the sorters, these
for changes in the rules and practice of         focuses in particular on exports from           people spend their lives in the coffee industry
conventional international trade.                developing      countries   to    developed     and are arguably the most crucial facet of
                                                 countries.                                      the industry; however, they are notoriously
It is with the above in mind that the IoD                                                        underpaid and underappreciated. Fair trade
has incorporated the principles of fair          Citizens of the United Kingdom and the          attempts to address this injustice.
trade in our procurement strategy and will       United States have led the way in developing
endeavour to make use of suppliers who           and demanding fair trade practices, most        For Bean There Coffee Company fair trade
practice fair trade, such as “Bean There         notably, in the area of coffee. Coffee is       is non-negotiable. There is no other way to
Coffee Company” who now supply the IoD           the second-most traded commodity in the         trade. Fair trade is the only option and the
with all our coffee requirements.                world after oil. Approximately 1.4 billion      only route passionately taken. Bean There
                                                 cups of coffee are consumed worldwide           operates in cohesion with the principles
Fair trade coffee                                every day and over 30 million people are        of direct fair trade of which relationships
A quick Google search of the term “fair          employed in the global coffee industry.         are central. Bean There begins the fair
trade” reveals over 8 million results in         Coffee grows in more than 50 countries. It      trade process by visiting each farm from
seconds. Fair trade organisations, fair
trade companies, fair trade products, calls
for more fair trade, all light up the screen
asking for an additional few minutes of one’s
time. Twenty years ago the term “fair trade”
was barely heard of let alone understood.
But now in 2007, “fair trade” is dancing on
the lips of consumers the world over and
hitting the agendas of the world’s largest
corporations. People are demanding ethical
options. A new conscious consumer has
emerged, and corporations and businesses
need to take heed!

As words, “fair trade” appears simple to
comprehend. It is logical and one might
think that it is the only way to trade. But in
today’s capitalist world where profit is the
primary motivation and financials the real
indicators of success, fairness has been
shoved aside. The vast divide between the
rich and the poor is a devastating gauge
of the lack of fairness in trade and the
                                                 KENYA - NYERI
immense failures of pure market capitalism.
                                                 Agnes Kanja (left) is a coffee farmer at Ruthagati and has two children Anne (15) Telvin (10).
However, it is highly unlikely that capitalism
                                                 The premium paid by Bean There will help to ensure both of Agnes’ children finish school.
will ever fall away; therefore, adaptations

                                                                                                                                   Bulletin 9
                                                                                                    community. The idea is to provide a hand
                                                                                                    up and not a hand out.

                                                                                                    Bean There purchases two coffees from
                                                                                                    Ethiopia. The regular Ethiopian coffee
                                                                                                    supports a community in the region of
                                                                                                    Sidamo. A percentage of all sales of Bean
                                                                                                    to Ethiopia go directly into a development
                                                                                                    fund for that coffee community. The
                                                                                                    Ethiopian Decaf coffee assists the children
                                                                                                    of Addis Ababa by financially supporting the
                                                                                                    Kidane Mehret Student’s Association which
                                                                                                    provides after-school care, education,
                                                                                                    social development, and sporting activities
                                                                                                    for underprivileged children.
                                                                                                    The southern region of Mbeya in Tanzania
                                                                                                    is where Bean There has sourced its other
                                                                                                    single origin coffee. The coffee is purchased
                                                                                                    through the Hope Project at a significant
                                                                                                    premium. Taking part in the Hope Project
                                                                                                    has enabled the coffee farmers to improve
                                                                                                    their growing methods and educate their
 TANZANIA – MBEYA
                                                                                                    children.
 George, Nzunda, Jonathan, Dixon
 Farmers involved with the Tanzanian Hope Project which Bean There supports.
                                                                                                    Bean There’s most recent origin is from
                                                                                                    Kenya and the coffee is grown and produced
which it purchases coffee. These visits           support and contribute to development,            by the Ruthagati community in Nyeri near
entail meeting the people working on and          growth, and social development continent-         the base of Mount Kenya. This coffee is
managing the farm, meeting their families,        wide.                                             Utz Certified meaning responsible and fair
and discussing and discerning the social,                                                           trading is required in purchasing.
business, and environmental needs of              Bean There Coffee Company currently
the community. Bean There is a people-            purchases coffee from three African               Bean There does not rely on a fair
centric business motivated by the ideals of       countries: Ethiopia, Tanzania, and Kenya.         trade middle-man. This ensures greater
development through fair trade.                   The region within each country has been           transparency and accountability in the
                                                  selected according to the quality of the          coffee purchasing process. When you
With a love for coffee and a passion for          coffee produced and the needs and                 buy a bag of Bean There coffee you are
the African adventure, Bean There Coffee          success of that region. The first principle       making an ethical consumer choice and by
Company sources the world’s finest single         of direct fair trade relates to the purchase      doing so you are enabling and promoting
origin coffees which are traditionally hand-      price of the coffee. Bean There will always       development throughout Africa’s coffee-
roasted in small batches to produce an            pay a premium above the international             growing regions. It will be trade that makes
exclusive optimal roast. Bean There is aware      market price of coffee. The second principle      the difference in Africa, not aid. Fair trade
of and appreciates the fact that their success    of direct fair trade involves the relationships   does not mean ‘special treatment’ to
is hugely dependent on the success of the         built with the coffee community supported. It     producers in developing countries; it means
coffee farmers in Africa. Exploitation is not     is crucial to know the farmers, to understand     equitable treatment; treating others as we
only morally inconceivable, but is also leads     their needs, and to genuinely appreciate          would like to be treated. So get involved.
to questionable agricultural practices which      their successes. The third principle of           Buy Bean There coffee, drink Bean There
directly taints the quality of the coffee. Fair   direct fair trade is the goal of sustainable      coffee, and make a positive impact.
trade is not an obligation for Bean There but     development. This involves creating a             Exclusivity and enjoyment has never before
an opportunity; an opportunity to actively        system able to evolve and grow with the           produced such lasting results!




Dates to diarise in the 1st quarter
                      Gauteng                                                  Western Cape
                      31 January         Member Breakfast                      17 January           Networking, Time-Out Café, GSB
                      19 February        Chairmen’s Chat                       18 February          Being a Director - Part 1
                      27 February        Women in Directorship                 21 February          New Companies Act, Stellenbosch
                      18 March           AIDA – Civic Theatre                  27 March             Law & Order, Durbanville


Bulletin 10
A warm IoD welcome
                      ...to all our new members
Mr B Agulhas           Mr M Fair             Mr BA Lottering        Mrs Y Montalbano   Mr BA Sarwan

Mr DC Ashort           Mr GG Foulkes-Jones   Mr JA Louw             Dr M Monyamane     Mr U Schackermann

Mrs J Bailey           Ms NS Fuhri           Dr JJ Mabasa           Mrs APG Moola      Mr SE Schuyling van

Mrs B Baker            Mr RA Gainsford       Mr RC Mack             Mr AR Moosa        Doorn

Mr RF Barnard          Mr EF Gibbens         Mr CD Mackintosh       Mrs T Moshoeu      Ms KP Seopela

Mr W Barske            Mr E Goga             Mr DT Maile            Ms RM Motanyane    Mr D Sibanda

Mr SR Beecroft         Mr PJ Golesworthy     Mr P Maine             Mrs MA Moteane     Mr GC Smith

Mr H Benatar           Mr M Govender         Mr K Makan             Mr DP Mouton       Mr DA Stadler

Mrs BE Blades          Mrs JN Gressel        Mr AS Makhanya         Dr N Mrwetyana     Mr AJP Steenkamp

Mr AD Bonamour         Mr MW Grose           Mr MJ Makhunga         Mr MI Mthenjane    Mr H Steyn

Mr D Bonthuys          Mr M Hewlett          Mr T Malete            Mr ND Mulaudzi     Mr IM Strydom

Ms T Booth-Oliveira    Mr BE Hoboyi          Dr SS Malinga          Mr S Naidoo        Ms T Sulaman

Mr XP Bucwa            Mr KJS Horn           Mr MR Mamiala          Mr D Ndebele       Rev J Thamae

Mr MJ Bukula           Mr E Hough            Mr NN Maredi           Mr BA Ngonyama     Mr K Thipe

Mr N Buthelezi         Dr ACM Issa           Mr AP Marokoane        Mr JJ Ngulube      Ms CJ Thomas

Mr G Cadogan           Mr T Issel            Mr W Marshall-Smith    Mrs NM Nkadimeng   Ms LG Timothy

Mr L Caron             Mr T James            Mr BH Maseti           Mr KC Ntumba       Mr DC Tullis

Mr FP Cawdry           Mr B Jay              Ms R Masilo            Mr J Pampallis     Mr DJ van Dyk

Mr CK Chabedi          Mr TS Joosub          Mr BB Mathebula        Ms A Parboosing    Mrs YE van Esch

Mr L Chisango          Dr A Jordaan          Mr S Mathe-Mabitsela   Mr AFW Peters      Dr JS van Vollenhoven

Mr RS Claunch          Mr G Kabengele        Ms SJ Matsolo          Mr H Pretorius     Mrs LA Veldsman

Mr G Coetzee           Mr DK Kadima          Mrs H Mazibuko         Mr R Probart       Mr MR Veldsman

Mrs H Coetzee          Mr S Kawakami         Mr B Mbewu             Mr M Qalaza        Ms AF Venter

Mrs LO Cook            Mr MG Kearns          Mr S McCafferty        Ms L Ramokgopa     Mr CJH Venter

Prof L de Koker        Mr LP Kekana          Mr WD McNeil           Mr V Ramruthan     Mr JM Vice

Mr MJ Dladla           Mr BR Kennedy         Mr H Meaker            Mr A Rasethaba     Mr FJ Wasserman

Mr AB Dlamini          Mrs MA King           Mr TT Mendrew          Mr JJ Ravjee       Mr JJ Wasserman

Mrs F-A du Plessis     Mr RR King            Mr A Merino            Mr Y Reddy         Mr JJ Watson

Mr AJ du Preez         Ms BM Kortjass        Mr C Mkunsha           Mr MJ Reyneke      Mr HH Wessels

Mr DC Duffield         Mrs B Kumalo          Mr S Mngomezulu        Mr G Rizzo         Mr C West-Russell

Mr S Dunsmore          Mr MG Langlois        Mrs M Mofammere        Mr IC Rosekilly    Mrs M Williamson

Mrs L Engelbrecht      Mr TP Leeuw           Mr LD Mokoena          Adv V Rukoro       Dr TL Xulu

Mrs C Engelbrecht      Mr JL Levin           Ms M Molai             Mr L Samakande     Mr B Zaayman

Mr D Engelbrecht       Mr S Liedtke          Mr LS Moloi            Mr WMG Samson
Mr O Esterhuizen       Ms NV Lila            Mr FP Moloi            Mr PB Sarjoo


                                                                                                      Bulletin 11
  Staff news                                     Key contacts

Congratulations                                  NATIONAL OFFICE
                                                 Johannesburg
                                                                                          CENTRE FOR MEDIATION AND
                                                                                          MEMBERSHIP
                                                 PO Box 908                               Amanda Bougardt
                                                 Parklands 2121                           amandab@iodsa.co.za
                                                 Tel (011) 643 8086
                                                 Fax (011) 484 1416                       MARKETING AND PUBLIC RELATIONS
                                                 Email iodsa@iodsa.co.za                  Michelle Blundell
                                                                                          michelleb@iodsa.co.za
                                                 EASTERN CAPE BRANCH
                                                 East London                              CENTRE FOR CORPORATE
                                                 PO Box 313                               GOVERNANCE & ADMINISTRATION
                                                 East London 5200                         Thapelo Kgari
                                                 Tel (043) 726 9898                       thapelok@iodsa.co.za
                                                 Fax (043) 726 9899
                                                 Email tbalshaw@gtec.co.za                FINANCE
                                                                                          Angela Steyn
                                                 WESTERN CAPE BRANCH                      angelas@iodsa.co.za
                                                 Cape Town
                                                 PO Box 300                               REGIONAL CHAIRPERSONS
                                                 Constantia 7848                          KwaZulu-Natal: Don McArthur
We would like to congratulate IoD                Tel (021) 715 3757                       dmcarthur@deloitte.co.za
Marketing Co-ordinator, Vuyo Machimana           Fax (021) 715 3762                       Eastern Cape: Tony Balshaw
and her husband Peter on their family’s          Email: iodwestcape@iodsa.co.za           tbalshaw@gtec.co.za
latest addition, a beautiful baby girl and                                                Western Cape: Alex Andersen
wish them every happiness with their new         KWAZULU-NATAL BRANCH                     ajag@iafrica.com
bundle of joy.                                   Durban
                                                 PO Box 50661                             PORTFOLIO CHAIRPERSONS

Farewell                                         Musgrave 4062
                                                 Tel (031) 303 9829
                                                                                          Sustainability
                                                                                          Julie Stacey
                                                 Fax (031) 312 8978                       julie@adcability.com
                                                 Email: dmcarthur@deloitte.co.za
                                                                                          Board Services
                                                 CHIEF EXECUTIVE                          Michael Judin
                                                 Lindie Engelbrecht                       law@elawnet.co.za
                                                 lindie@iodsa.co.za
                                                                                          Centre for Mediation
                                                 DIRECTOR & BOARD SERVICES                Mervyn King
                                                 Tony Dixon                               mking@brait.com
                                                 tonyd@iodsa.co.za

                                                 CHIEF OPERATING OFFICER
                                                 & DIRECTOR DEVELOPMENT
                                                 Angela Oosthuizen
                                                 angelao@iodsa.co.za


                                                 NATIONAL OFFICE SUPPORT
It is with sadness that we say goodbye to        Director Development              Portia Gumede        portiag@iodsa.co.za
Claudia Liebenberg who has been an incredible    Director Development              Wendy Nyandoro       wendyn@iodsa.co.za
resource in the IoD membership department        Membership                        Amanda Bougardt      amandab@iodsa.co.za
over the past two years. However, as change is   Board Services and Secritariat    Lebo Botolo          lebob@iodsa.co.za
the only constant, we wish Claudia everything    Reception                         Octavia Lengoati     octavial@iodsa.co.za
of the best in her new adventure.                Production                        Johannes Sangweni    johanness@iodsa.co.za
                                                 Finance Assistance                Joel Banda           joelb@iodsa.co.za
                                                 Office Support                    Phumzile Matukane




Bulletin 12

								
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