Document Sample
million Powered By Docstoc
					 Sustainability Review

 oUr PeoPLe

 Growthpoint interacts with a diversity of people including our employees, investors, clients and contractors, as well as the communities which
 our properties serve, from those who work in our buildings every day to the people who shop at our retail centres. this section covers how we
 interact with people.

 human resources (hr) management:
                                                                                                         PROvidEd fOR
 we achieve this through:

                                                                                                         SOCiAl invEStmEnt
› an organisational culture which leads to sustainable, optimum performance in all sectors
› promoting equal opportunity and diversity in the workplace
› employee training and development
› people management practices and employee benefits that address

 employee needs and encourage productivity and motivation
› ensuring employee health and safety
 While Growthpoint has a long and solid track record, the company had no employees until
 three years ago when our former external management structure was replaced by an internal
 management model. We now have over 450 employees. our hr management continues to
 ensure that all the correct strategies, processes and programmes are in place to support our
 employees and our performance.
                                                                                                       hEAlth And

 organisational culture and values                                                                     SAfEty inCidEntS

 When Growthpoint adopted its innovative fully-integrated internal management approach
 in 2007, all employees participated to define a mission statement and core values for the
 company, a process which was finalised in 2009. this guides employee and business conduct.
 An annual survey has been designed and will be implemented, starting in fY2011, to track and
 measure our organisational effectiveness, to get a sense of our developing culture and assess
 whether we are true to our values. our mission and core values appear on page 9 of this review.

“our hr management continues
 to support the company’s
 strategy and vision in the
 implementation of its employee
 processes and programmes”

         Growthpoint Properties Annual Review 2010

ogilVY, BRYANSToN                                    equal opportunity
                                                     and diversity
                                                     to attain an equitable work environment,
                                                     Growthpoint is focused on achieving
                                                     representation of all employee groups,
                                                     removing barriers to the advancement
                                                     of designated groups and diversity.
                                                     our progress in fY2010 reflects
                                                     compliance with the employment equity
                                                     Plan submitted in fY2009, in addition
                                                     integrating the principles of employment
                                                     equity into business practices. Guided
                                                     by the employment equity Act we
                                                     are actively promoting education and
                                                     awareness among staff, constituting a
                                                     statutory representative body for staff,
                                                     and setting numeric objectives up to
                                                     2013. these objectives emphasise greater
                                                     gender representation at senior levels
                                                     and racial representation of around
                                                     50% by 2010. this has been achieved.
                                                     During fY2010 our employment equity
                                                     forum and management collectively
                                                     consulted to set new targets to 2013. our
                                                     recruitment efforts were clearly focused
                                                     and aligned to this with our new recruits
                                                     being 50% previously disadvantaged
                                                     individuals as measured for Bee purposes,
                                                     which excludes white females. this
                                                     equates to 79% previously disadvantaged
                                                     when measured for employment equity
                                                     purposes, which includes white females.

Sustainability Review • our People

               White         ee

%               57.4              55.1    50.0       45.1       41.9       38.9

%              42.6            44.9       50.0       54.9       58.1       61.1








               (SEpT 2008)









GROwthPOint mAnAGEmEnt SERviCES EmPlOymEnt Equity tARGEtS tO 2013

the above targets have been set according to the employment equity Act measurement criteria.
Internal transformation and equal opportunity is also promoted through hr policies and
conditions of employment. Growthpoint is committed not to engage in any discrimination.

 Growthpoint Properties Annual Review 2010

 employee development                          › study leave                                       hiv/aids approach
 Some 1.5% of our payroll is                   › compassionate leave, paternity leave,             Advances in research, education and
 allocated to employee learning                 family responsibility leave and religious leave    treatment mean that hIV/Aids is today
 and development each year.                                                                        very much in the same category as
                                               › financial assistance where study is               other chronic and life threatening
 the emphasis is on the development of
                                                aligned to the career at Growthpoint               diseases which have impacted on
 skills related to the property sector which
                                                and is approved by the manager.                    the economically active population.
 would be accredited by a recognised
 SetA, wherever possible. During the                                                               Although no survey is available for the
                                                health and saFety
 period under review, initiatives to                                                               property or financial services sector, there
 foster employee development included:          Growthpoint promotes optimum                       are two surveys, one in the education
                                                internal health and safety through                 sector and one in the legal services
› a performance development process,            the following initiatives:
 which will be operational in fY2011                                                               sector, which clearly indicate that our
                                               › in line with the occupational health and          industry’s prevalence of hIV/Aids can be
› a mentorship and leadership programme,        Safety Act, appointing the chief executive         expected to be lower than the national
 to ensure that depth of skill is developed     officer as the S16.1 appointee and the             prevalence. considering the profile of our
 in key areas of the organisation and           chief operating officer as the S16.2               staff, of which 28% is service staff and the
 that key talented individuals are              appointee. Various senior managers have            balance administrative, management and
 effectively managed, has been developed        also been appointed S16.2 appointees               professional staff, who are of an average
                                                for their respective operational areas             age of 40, it would be fair to expect
› committing a senior, experienced member
                                                                                                   that our prevalence is below the 10%
 of staff to manage the Learning and           › implementing safety committees at all
 Development initiative on a full-time basis                                                       mark, probably in the region of 6 to 8%.
                                                operational sites which include first aiders,
                                                fire fighters and evacuation marshals. the         Growthpoint’s approach
› the introduction of the Growthpoint
                                                risk manager is responsible for occupational       to hiv/Aids encompasses:
 Study Assistance Programme for the
                                                health and safety in all Growthpoint              › not prejudicing or discriminating against
 year under review, the organisation
                                                buildings and maintains a comprehensive            employees who disclose their hIV status or
 also completed its first comprehensive
                                                risk register. emergency procedures are            are diagnosed as hIV/Aids positive, in line
 succession planning and career review of
                                                rehearsed and first aid and safety officers        with our policy
 senior and key operatives. this review is
                                                are retrained within the statutory intervals
 now being refined and cascaded in fY2011.
                                                                                                  › ensuring that our corporate medical aid
 to ensure we always have sufficient depth     › regular safety inspections. Any incidents         schemes provide cover to members for
 of skill to manage the organisation, it        that occur are fully investigated and              hIV/Aids in terms of both the Prescribed
 will become an annual integral practice.       reported to the risk management                    minimum Benefits legislation and a
                                                committee. During fY2010, no incidents             comprehensive chronic disease management
 employee BeneFits and well-Being               involving our staff were reported. We              programme for registered members
 All employees qualify                          believe a significant contributor to
                                                this has been our continued focus on              › hosting annual wellness days,
 for the following benefits:
                                                active health and safety management,               to enable staff to partake in
› membership of a retirement fund               which has led to greater awareness                 voluntary counselling and testing
› membership of a medical aid scheme            and reduced risk of hazardous incidents
                                                                                                  › as part of World Aids Day, making
 which provides comprehensive cost             › in our buildings, security service providers      a donation to hIV/Aids organisations.
 effective cover for health care needs          are required to conduct an annual
                                                                                                   In addition, we have trained managers who
› additional dreaded disease and                risk assessment, provide emergency
                                                                                                   have had to deal with cases of incapacity
 personal accident cover is also available      assistance and take charge of any health
                                                                                                   and/or temporary disability on medical
                                                and safety emergencies that may arise.
› access to insured benefits that provide                                                          grounds during the year. this has proved
 income replacement for temporary                                                                  invaluable and we are investigating
 disability, rehabilitation and permanent                                                          introducing a comprehensive programme
 disability benefits. maternity leave covers                                                       for all managers of people in this regard.
 the full statutory period and is fully paid
› access to a confidential 24-hour
 employee Assistance Programme,
 providing counselling, wellness
 services and personal financial planning

 Sustainability Review • our People

 employee relations
 Growthpoint has an Employment                   through its business,
 Equity forum which is representative            Growthpoint strives for
 of all employees and meets
 regularly to discuss equity issues.
                                                 transformed property
 employee relations policies cover all           relations in South Africa
 employee rights, as outlined in the Labour      and to promote a vibrant
 relations Act. these include policies
 governing sick, maternity and paternity, and
                                                 and growing property
 study leave; prevention of discrimination       sector that reflects the
 and sexual harassment; and treatment            South African nation as
 of people suffering from disabilities.
                                                 a whole and contributes
 With Growthpoint’s culture encouraging
 open and honest dialogue among                  towards development and
 staff, workforce collective agreements          the establishment of an
 and union involvement have not been
 applicable to Growthpoint; nor has it
                                                 equitable society.
 experienced employee relations issues
 such as strike days and industrial action.      our current generic rating based on the
                                                 codes of Good Practice is Level three and

 transformation and Bee                          our Property charter rating is Level two.
                                                 We scored most highly for ownership and
                                                 preferential procurement, and achieved
 We are committed to the empowerment of          100% for enterprise development
 previously disadvantaged groups in South        and socio-economic development.
 Africa through:                                 our aim for the next rating would be
› our shareholder structure (as detailed in      to maintain or improve on the codes
 the financial Director’s review on page 48)     of Good Practice and Property charter.

› our Staff Incentive Scheme (as per our         We have a transformation committee
 human resources review on page 197)             that oversees all our transformation
                                                 activities. more information regarding the
› promoting equal opportunity and                transformation committee can be found
 diversity in the workplace (as per covered      on page 158.
 earlier in this report on page 206); and
› skills development training in the workplace
 (please refer to the training section
 of the operations review on page 198).
 We are committed to the seven pillars
 of the DtI code of Good Practice
 and Property Sector transformation
 charter scorecard: ownership; control;
 employment equity; preferential
 procurement; skills development; social
 responsibility and enterprise development.
 Growthpoint is committed to the
 implementation of the Property Sector
 transformation charter. the charter
 constitutes a framework and establishes
 the principles on which BBBee will be
 implemented in the property sector, in terms
 of the Department of trade and Industry
 (DtI) codes of Good Practice on BBBee.

 Growthpoint Properties Annual Review 2010

 corporate Social
 Investment (cSI)
 Growthpoint supports corporate social
 investment projects that promote skills
 development and empowerment among
 disadvantaged communities.
 our cSI contributions are distributed among
 the following initiatives:
› Strategic in-house initiatives. We have three
 main in-house initiatives which we manage:
    - Property Point, a small business
     development programme that
     develops Smmes in the property sector
    - a bursary programme for
     students in the property sector
    - Growsmart, an initiative that
     promotes literacy amongst scholars
› Ad hoc donations
 these fund cSI requests received throughout
 the year. requests above r50 000 are
 presented to our transformation
 com-mittee for approval and requests
 below r50 000 are approved
 at the discretion of the
                                                     “We strive to
 executive management team.
› halo - “helping and Loving others”
                                                    ensure that all
                                                   projects which
 this is a charitable project run by a
 committee of Growthpoint employees who
 give of their personal time to assist charities

                                                    we support or
 and people in need, usually those that are
 lesser known and have small support bases.
 We contribute r10 000 a month from our

                                                     embark upon
 cSI budget to the halo project and these
 funds are used to buy items for the charities
 being assisted.

                                                   are sustainable
                                                       and have a
                                                   positive impact
                                                        on society”

Sustainability Review • our People

                                                                  Bursary programme
                                     Operational reports of       We support both the SAPoA bursary
                                     all CSi initiatives are      programme as well as an internal
                                                                  Growthpoint Bursary Programme, which
                                     presented quarterly at our   was introduced this year, for students in the
                                     transformation Committee.    property sector.
                                     the transformation           Growthpoint has sponsored five students
                                     Committee is a               to undertake property studies at recognised
                                                                  South African universities.
                                     sub-committee of our
                                                                  With a budget of r250 000 allocated to
                                     main Board and they are      our direct bursary programme for fY2010,
                                     accountable to ensure that   a bursary for each student covers the
                                                                  cost of full tuition, residence at an official
                                     all initiatives we support   university facility, prescribed text books
                                     are sustainable and have     and compulsory membership fees at the
                                     an impact. in fy2010, we     various South African universities. on
                                                                  completion of their studies the students will
                                     expended R4.4million         have the opportunity to be employed within
                                     on CSi projects.             Growthpoint. holiday work experience is
                                                                  also offered to the students.
                                                                  the SAPoA bursary scheme aims to address
                                                                  the current and future skills crisis within
                                                                  the commercial property industry, and
                                                                  Growthpoint has sponsored two students
                                                                  through this programme.

                                                                  Future Focus
                                                                  Additional students will be taken into
                                                                  the programme as and when the current
                                                                  students graduate. It is our intention
                                                                  to have a total of five students on the
                                                                  programme at any given time, and
                                                                  as students graduate new bursary
                                                                  applicants will be sourced to ensure we
                                                                  continuously grow skills within
                                                                  the property industry.

Growthpoint Properties Annual Review 2010

growsmart –                                      development oF small Businesses
literacy development                             no longer do small businesses and
Growsmart, an initiative by Growthpoint          entrepreneurs serving the property sector
and in collaboration with the western            have to strike out on their own when
Cape department of Education                     establishing their companies.
(wCdE) is an educational campaign                Insufficient training, knowledge and support
to promote literacy in South Africa.             present sometimes insurmountable hurdles
the campaign promotes literacy through a         to success. enterprise development is
competition which targets learners in Grades     an innovative approach that overcomes
4, 5 and 6. Growsmart is being piloted in        the barriers to sustainable success and is
the Western cape with the aim to extend its      a key element of the broad-based black
reach in the future.                             economic empowerment (BBBee) codes of
the competition takes the form of                Good Practice. the BBBee codes of Good
a quiz and the objective is to raise             Practice is a strategy aimed at substantially
awareness of the importance of literacy.         increasing black participation at all levels
In addition, the winning school and              of the economy. enterprise development
learners will receive appropriate prizes.        forms one of the pillars of the BBBee codes
the winning school will receive approved         of Good Practice, specifically promoting the
improvements to the school premises              empowerment of Smmes in the economy.
and three learners from that school will
receive assistance towards their education.
the quiz is based on content from the
                                                 Section 9 of the Broad Based Black Economic
curriculum and incorporates various              Empowerment Act 53 of 2003 states the following
aspects of literacy, such as spelling and        about enterprise development:
comprehension. twenty schools from
the four school districts in the Western
                                                 › the objective of enterprise development is to grow sustainable
cape participated in Growsmart – a total
                                                  business enterprises that will create jobs and expand the economy
of 80 schools. the schools have been
chosen by the WceD, based on their               › to achieve the 15 points allocated to enterprise development on the BBBee
Grade 6 literacy results, these schools           scorecard, a company needs to spend 3% of its net profit after tax on enterprise
all had a literacy score below 50%.               development. 20 points may also be achieved through procurement from Bee suppliers
one team of three learners from each
participating school competed in the quiz.       › to qualify as a beneficiary of enterprise development,
                                                  a company should be at least 51% black-owned
Growsmart was officially launched on 18
february 2010. the first competition level       › a company will enjoy enhanced recognition for procurement from any supplier
took place on Saturdays in April and may          which is also simultaneously one of its enterprise development beneficiaries
2010. the second competition level took          › enterprise development involves the investment, support, facilitation and fostering of
place in July and August 2010. the final takes    new and existing small and micro-enterprises. enterprise development programmes,
place on 8 September 2010, which is the           such as Property Point, promote sustainability and provide for the measurement of
United Nations International Literacy Day.        enterprise growth.

future focuS
for fY2011 Growsmart will once again be
rolled out in the Western cape with an               intERvEntiOnS RAnGinG                                  BuSinESSES hAvE AttEndEd

                                                                                                       1 000
increased catchment of 120 schools. these            fROm COmPliAnCE thROuGh                                OuR vARiOuS intERvEntiOnS

schools will be selected by the Western              tO SyStEmS And dEvElOPmEnt
cape Department of education based
on the level of their literacy scores

Sustainability Review • our People

Property Point enterprise                                                                         our oBjectives
                                                                                                 › develop sustainable entrepreneurs
development initiative

                                                     diRECt jOBS CREAtEd
                                                                                                 › community uplifting through business
Growthpoint initiated Property Point in
may 2008 and continues to run
                                                                                                 › job creation
this ground-breaking enterprise                                                                  › sustainable business growth through
development programme that assists                                                                tangible procurement opportunities
small, medium and micro enterprises
(SmmEs) operating in the listed property                                                         › benefit both Growthpoint and
sector in South Africa.                                                                           the property sector as a whole.
                                                smme development
the initiative operates in Gauteng and is
                                                Property Point applies a two-pronged              the strengths oF our model are
currently being piloted in the Western cape.
Property Point aims to prepare Smmes            approach to the development of Smmes:            › ability to filter through masses of
serving the sector in a highly competitive      incubation and an information platform.           Smmes and identify businesses
marketplace by providing skills training        the focal point of the programme is the           with the potential for growth
and personal development. Ultimately, the       incubation of a selected group of businesses,
                                                usually 15 at a time, which participate in an    › a business assessment tool designed
objective is to help develop the Smmes                                                            to analyse Smmes’ ability to comply
into fully independent companies, and           intensive development process. An analysis
                                                of needs is conducted on each business and        with industry requirements, assess
break down the barriers between the ‘first’                                                       the strength and effectiveness of their
and ‘second’ economies by facilitating          a personalised development plan is designed
                                                to fill the “gaps” identified in the business.    overall operations and identify personal
information sharing.                                                                              development gaps of each entrepreneur
                                                the secondary element of the programme,
                                                the information platform, is designed to         › ability to successfully track and monitor
                                                reach a large audience of Smmes in the            the progress and growth of businesses
     diRECt BuSinESS linkAGES fOR                                                                 participating in the programme plus evaluate
                                                property sector through the presentation

     SmmES with GROwthPOint                                                                       the impact and benefits experienced
                                                of information sessions hosted by
                                                industry experts. these information               within the corporate client’s supply chain
                                                presentations provide a channel that             › a unique understanding of both
                                                assists in defining a pool of participants for    Smmes and property sector corporate
                                                consideration for incubation at a later stage.    procurement departments, enabling
                                                on 29 may 2010 Property Point launched            successful liaison between the two
                                                its second incubation programme                   parties and facilitation of business linkages.
                                                with 17 black-owned businesses
                                                across the property services sector.              partners

     PROCuREmEnt ‘BuSinESS                                                                        Property Point works in collaboration
                                                minimum requirement criteria                      with the Business Place to assist in the

     linkAGES’ fROm SmmES
                                                For smme participation                            development of the businesses. the Business
                                               › be 51% black-owned, as per the Broad-Based       Place is a national network of business
                                                Black economic empowerment Act of 2003            information and support centres, providing
                                                                                                  business support to enterprises at start-up
                                               › have operated for at least two years             and in the critical early stages of growth. the

                                               › provide property services                        founding objectives of the Business Place
                                                                                                  are to provide an enabling environment
                                               › provide suitable references and                  for entrepreneurs to explore ideas and
                                                prior contracts                                   their potential and to encourage the
                                                                                                  implementation of these ideas. the Business
                                               › show viable assessment potential for growth
                                                                                                  Place also seeks to provide a delivery
                                               › receive approval from Growthpoint’s              platform to integrate relevant multi-faceted
                                                facilities and Procurement division.              initiatives and programmes to support the
                                                                                                  Smme sector. the Business Place operates
                                                                                                  with an overall aim to make it easier for
                                                                                                  individuals to choose entrepreneurship
                                                                                                  and build successful businesses.

Growthpoint Properties Annual Review 2010

      inFormation platForm                          virtual incuBation                             desired outcome

  >   Network Sessions                         >   Business Development                        >   Independent companies
  >   Information Sessions                     >   Personal Development                        >   Sustainable Growth
  >   General training                         >   coaching                                    >   Job creation
  >   Virtual Incubation Possibility           >   Sector-specific mentoring                   >   community Upliftment
                                               >   Procurement opportunities                   >   Benefit to Property Sector
                                               >   compliance Awareness

                                                   njilingweni Cleaning
Businesses in our                                  Sam Dludla has always wanted
incubation programme have                          to be a business owner. he has
                                                   overcome many challenges to
experienced open doors for                         achieve this on a sustainable level.
development in the                                 thabempho trading (tmt Cleaning)
property industry due to                           entrepreneur mpho Sono is the sole
their involvement with                             founder of this company and specialises
                                                   in affordable, quality contract cleaning
Property Point.                                    service for commercial, residential,
                                                   industrial and retail companies.
recent property
point graduates                                    Future Focus
Apple Green holdings                               Growthpoint will continue to grow and
tim mohulatsi and Langa Sangoni’s                  evolve this meaningful and successful
business is a waste management                     enterprise development initiative. We are
services company that is 81% black                 currently piloting Property Point in cape
youth owned, with the balance held by              town, with the aim to formally launch the
strategic partner Umsobomvu Youth fund.            programme in fY2011 in this region.

Easy Security
founded by Smart Kunene in 1993
and registered six years later, easy
Security is fast making a name for
itself in the security business arena.
GdB designs
the three partners of GDB Designs
provide wide-ranging skills in architecture,
construction and project management.

  propertY point fREddY mAkoLA fRom kWApELE LANdScApINg

propertY point kooS mAhLANgU fRom kgf TRAdINg ENTERpRISE