Integrated Annual Report 2016
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creating value for all
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Our stakeholders and how we engage them

Here we list our stakeholders, why they and their concerns are important and how we engage with each group:

Stakeholder
group
  Why they are important   Their interests in our business   Strategic objectives
and material issues
  How we engage with them
Customers  
  • Provide the markets for our products
  • Provide revenue, without which the business could not function
 
  • Quality products
  • Pricing
  • On-time delivery
  • Product choice
  • Protection against unfair imports
 
  • Driving profitability
  • Creating social value
  • Customer focus and
  • establishing a fair price for steel
 
  • Regular, ongoing engagement between sales staff, management and key customers to determine the needs of the market and identify issues as they arise
  • Direct ad hoc communication to inform customers about new developments or the resolution of specific issues
  • Industry associations
  • Engagement on customer requirements for new product specifications and grades
  • Working with government and regulators to assist downstream customers with import protection on finished products
  • Granting and administration of rebates
  • Online claims tracking system (new from 2016)
  • Customer satisfaction surveys
  • Social media
Employees  
  • Integral to delivery on our strategic objectives
  • Provide skilled labour to produce and market our products
  • Our most important and most valued ambassadors
 
  • Workplace safety
  • Reward and recognition
  • Security of employment
  • Career progression
  • Education and training
  • Corporate reputation
  • Our profitability
 
  • Workplace safety
  • Creating a high-performance
  • culture
  • Driving profitability
  • Optimising our industrial
  • footprint
  • Training for a new operating reality
 
  • Internal newsletters 1Magazine, Enews, CEO newsletter, CEO blog (#AskWim) and announcement mailers, intranet, posters and email campaigns
  • CEO roadshows and CEO Recognition Awards
  • Shopfloor safety meetings
  • Performance and career development reviews (package category employees)
  • Formal grievance and dispute resolution structures
  • Culture and values surveys
  • Training and skills development
  • Communications around employee shareholding
Government
(national, provincial, local), parliamentary portfolio committees, regulators
 
  • Develop legislation and policies that directly impact our business
  • Have the ability to grant or revoke licences necessary to operate and impose penalties
  • Enforce tariff protection and the designation of local steel
 
  • Product pricing
  • Job creation
  • Legislative and regulatory compliance
  • Socio-economic impact
  • Environmental compliance
  • Transformation
 
  • Creating social value
  • Seeking the implementation of protection against unfair imports
  • Competition Commission issues
  • Customer focus and establishing a fair price for steel
 
  • CEO and officers in charge of specialist functions engage on an individual level with national ministry, provincial and local government representatives
  • Industry meetings with government
  • Detailed reports on company financial, commercial and socio-economic performance
  • Integrated annual report
  • International Trade Administration Commission committee meetings
  • Industry-specific task force
  • Direct ad hoc communications to inform government about industry developments
Shareholders  
  • We are accountable to shareholders who expect returns on their investments
  • Influence decisions taken by the board
  • Support the value of investing in the local steel industry
 
  • Sustainability of our business
  • Return on investment
  • Effective risk management and corporate governance
  • Good corporate citizenship
  • Transformation
 
  • Driving profitability
  • B-BBEE compliance
 
  • Bi-annual and annual results presentations
  • Shareholder and business unit roadshows and meetings
  • Quarterly production trading updates and SENS announcements
  • Integrated annual report
  • Website
  • Site visits and special events
Suppliers and contractors  
  • Directly influence raw material and other input costs
  • Reliable delivery impacts our ability to deliver on customer needs and expectations
  • Impact our safety performance
 
  • Opportunities for continuing and new business
  • Fair and transparent treatment including predictable payment
  • Employee safety
 
  • Driving profitability
  • Workplace safety
  • Optimising our industrial footprint
 
  • Regular meetings between management and key suppliers
  • Managers on site conduct ongoing engagement and management of contractors
  • Safety training for contractors
  • Incubation hub
  • Enterprise and supplier development projects
  • Health and safety day
  • Online supplier registration portal
Trade unions  
  • More than 70% of our workforce belong to unions and more than 80% are covered by collective bargaining agreements
  • Good relationships with organised labour can avert industrial action and positively influence the outcome of wage negotiations
  • Union support can help secure regulatory measures which ensure our sustainability
 
  • Maintenance of employment and new job creation
  • Workplace safety
  • Employee remuneration
  • Members’ career advancement
  • Employee safety
  • Transformation
  • Industry sustainability
 
  • Creating a high-performance culture
  • Creating social value
  • Ensuring workplace safety
 
  • Union representation on a range of committees including safety, health and environment, training and employment equity
  • Shopfloor line managers’ engagement with union representatives on a daily basis
  • Wage negotiation process
  • Meetings between CEO, senior management and union head offi ce level
  • Integrated annual report
  • Joint presentations to government
Local communities  
  • Living in the vicinity of our operations, their environment and employment opportunities are directly impacted by our business
  • Direct beneficiaries of our corporate social investments and economic opportunities presented by our operations
  • Will become company shareholders
 
  • Our financial sustainability
  • CSI and socio-economic development projects
  • Environmental performance
  • Opportunities for employment and business
 
  • Creating social value
  • B-BBEE compliance
  • Environmental compliance
 
  • Annual community engagement facilitated by local councillors, community leaders and NGOs
  • Environmental open days
  • Arranged meetings with CSI managers
  • Meetings and joint local upliftment projects with chambers of commerce and municipalities
  • Regular planned one-on-one meetings
  • Advertising and media buying through advertorials
  • Integrated annual report
  • CSI projects and investments
NGOs and special interest groups  
  • Represent the social and environmental concerns of local communities and broader society
  • We previously had acrimonious relations with some community organisations
 
  • CSI and socio-economic impacts
  • Environmental performance
 
  • Creating social value
  • Environmental compliance
 
  • Annual community engagement forums
  • Local environmental quality forums
  • Integrated annual report
  • Structures representing government, NGOs and business
  • Office meetings
  • Training of local women
  • Science centres
  • Website
Small and medium enterprises  
  • Provide a range of secondary products and services to our operations
  • Provide us with the opportunities to improve our ESD scores on the dti Codes of Good Practice scorecard
  • Are integral parts of our local communities
 
  • Business opportunities
  • Enterprise development
  • Preferential procurement
 
  • Creating social value
  • B-BBEE compliance
 
  • Annual community engagement forums
  • Preferential procurement days and supplier days
  • Online vendor portal
  • Enterprise and supplier development training
  • Interaction with supplier development officials at business units and head office
  • Supplier incubator hub
Lenders  
  • Provide funding required to remain in business and to invest in growth
 
  • Business sustainability
  • Predictable payment of interest and principal debt and regular servicing of facilities
  • Security of credit
 
  • Driving profitability liquidity
 
  • Daily electronic and telephonic communication
  • Regular updates by CEO and senior fi nance offi cials
  • Bespoke presentations
  • SENS announcements
Media  
  • Can influence public perception and brand reputation
 
  • Access to newsworthy, timeous information
  • Industry and economic insight
 
  • Creating social value
 
  • Company spokesperson responds to media queries and requests for information while keeping media informed of key developments
  • CEO and officers in charge of specialist areas are regularly interviewed
  • Media are invited to interim and full-year results presentations as well as important company events such as the launch of CSI projects
  • SENS announcements and media releases
  • Integrated annual report
  • Site visits and media conferences
  • Round tables and editors’ lunches


© ArcelorMittal 2017