SENWES Integrated Report 2020 | Page 31

THE BUSINESS TRADE-OFFS IN OUR USE OF SOCIAL AND RELATIONSHIP CAPITAL Senwes invests in social and relationship capital in order to promote financial capital growth over the long term and improve community and government relations. Financial capital is, however, decreased over the short term. In our view, a more holistic and collaborative approach to community engagement will provide a platform for meaningful and sustainable future solutions and interventions. ACTIONS TO IMPROVE OUTCOMES Digital consumer magazine; Ethics helpline; Fraud helpline; Social investments and projects; Improved and quality products and services; Competitive pricing of products and services; Involvement in initiatives to transform unproductive farms into productive farms; Recruitment of candidates from under-represented groups; The initiation and support of innovative programmes to find practical solutions for community problems and requirements; The support of sustainable community interventions, which will have a broader and more sustainable impact over the long term; and Improved communication in terms of content and frequency with all stakeholders. FUTURE CHALLENGES Rising cost of inputs and production; Rating by credit rating agencies; Fluctuating commodity prices; High degree of infrastructure decline; Lack of funding for initiatives, as well as poor bureaucracy in terms of distribution of financial support; Quality customer service and relationships; Food security and water shortages; Local and rural safety; Large scale expropriation of productive agricultural land without compensation; Bandwidth issues in rural areas; and Suppressed soft commodity prices. OUTCOMES 2020 2019 Active customers * Number 7 902 5 513 Active suppliers * Number 5 703 3 266 Spending in respect of authorities R‘m 211 262 Paid to suppliers of goods and services * R‘bn 3,5 1,7 Total corporate social investment and community spending Senwes Spinners Farm School Cricket Development Programme R‘m 3,1 2,5 Cumulative number of students reached 1 820 1 690 *Increase in active customers and active supplier numbers as well as amounts paid to suppliers, are largely attributable to the acquisition of KLK Landbou to the Senwes Group during the period under review REASSURANCE IN RESPECT OF SOCIAL AND RELATIONSHIP CAPITAL Social and Ethics Committee; All Senwes Grainlink silos are audited and certified by the Perishable Product Export Control Board according to a three-year cycle; Reduced conventional electricity consumption through various initiated projects; Reduced water consumption through initiated projects; Waste management through recycling efforts; and Continued focus and growth in Thobo Trust. SENWES INTEGRATED REPORT 2020 29