Social and relationship capital

STAKEHOLDER RELATIONSHIPS ARE KEY

Our business is carried by our stakeholders and this is why we prioritise them. Each of our stakeholders holds a vested interest in the success of the group and, as such, are required to adhere to the values of the organisation in all of their dealings with us. Our employees and our suppliers are held to this standard as this is what is expected by our guests, our shareholders, our community, our regulators, and ultimately by the group itself.

During the year under review:

• Total monetary value of financial and in-kind political contributions made directly and indirectly (ZAR): Nil
• Total monetary value of financial assistance or relief received from any government (ZAR): Nil
• Total number and percentage of operations that have been subject to human rights reviews or human rights impact assessments: Nil
• Number and type of grievances reported with associated impacts related to a salient human rights issues in the reporting period: Nil

PARTNERING FOR ADDED VALUE

ENTERPRISE AND SUPPLIER DEVELOPMENT

CLHG has always been very loyal to its suppliers and close supplier relationships were formed over the years.

Although these relationships are important and are worthwhile retaining, we do need to address concerns and ask questions in line with our organisation’s values, where some suppliers fell short of our required standard.

To this end, we started to engage with a number of different suppliers to compare the value proposition of each, while ensuring a high level of congruence with our values, to make absolutely sure that we are still receiving the best quality at the best price with the best service.

In some instances, we needed to move over to new suppliers, specifically if we felt that the existing ones no longer did business in accordance with their value proposition and, in other cases, we were assured that this value proposition still holds.

Going forward, we are committed to ensuring that all suppliers are compared more regularly with their market peers, as well as to stay abreast of new market trends and developments, especially in respect of our sustainability and transformation goals.

The B-BBEE credentials of our various suppliers are also becoming increasingly important. Although we have dabbled in Enterprise and Supplier Development in the past, we are now placing renewed focus on this area with the assistance of the SATSA Incubator, which will hopefully allow us to make some meaningful contribution to Enterprise and Supplier Development within CLHG.

The group intends implementing the following supply chain checks in the upcoming financial year:

• Suppliers are to be screened using social criteria; and
• Suppliers are to be assessed in respect of their individual social impact, with actual and potential negative social impacts, if present, disqualifying that supplier from consideration by the group.

Up to and including 30 June 2022, no suppliers have been subjected to these checks.

Corporate Social Investment (CSI) schemes

Group CSI

While CLHG cares greatly about the difficulties of the members of our communities, our capacity to donate has been restricted this year. We have continued with our e-CSI initiative in terms of which guests may choose a charity from our website and, when they book, a percentage of the accommodation fee is donated on behalf of our guests. We contribute R5 for every reservation made to the charity chosen. Our current charity partners are Food and Trees for Africa and the Hospice Palliative Care Association of South Africa. In addition, we run the Cuppa for CANSA initiative in our Road Lodge brand to support the CANSA Foundation.

While the group does not directly fundraise for charities, other than for our e-CSI and Cuppa for CANSA programmes, we provide our hotel rooms and facilities as products or prizes for charitable fundraisers.

Hotel CSI

As our hotels are closer to their respective communities, each of our hotels adopts a local cause meaningful to their staff and partners. They raise funds, refurbish buildings, and generally assist with fulfilling specific needs. As is always the case, these charities see people in need and have plans to help them, but lack only the funds to truly make a sustainable difference, and this is where we step in. We encourage our people to spend time with our charities instead of simply writing out a cheque as we believe that this is a crucial part of providing fulfilment to our staff while at work. The group's CSI spend is budgeted in line with hotel performance and the B-BBEE scorecard target of 1% of net profit after tax, which the group typically exceeds.

Linen and towels that are usable but no longer up to display standards are donated to children's and old age homes, hospitals and hospices. We have also had Build-A-Bear workshops hosted and catered for by our hotels and have welcomed children into our kitchens for pizza-making lessons and have served the children their pizza in our dining rooms.

We know that our social responsibility objectives are shared by companies and charities around us and we aim to partner with these entities in order to achieve a greater reach in communities where our hotels are located, and this includes supporting local businesses, supporting local charities or non-profit organisations, and identifying opportunities for climate-change or sustainability related initiatives. In this regard, we have a combined CSI spend of R1 million, which amount has been distributed amongst those organisations that have values and objectives aligned with those of the group, and the work of these organisations is described below.

Chefs-to-be at Courtyard Hotel Waterfall City

I. The South African Golf Development Board (SAGDB)

The SAGDB is a non-profit organisation that was founded by South African businessman and SAGDB patron Johann Rupert. His vision was to create a grass-roots golf development programme that could grow the sport, develop golf skills into tangible benefits for graduates, and eventually produce champion golfers.

South Africa has a wealth of intelligent and talented young people who have limited access to opportunities. CLHG values brilliance and believes that providing opportunities to these young people and giving them the tools to realise their potential will enable them to become positive role models in their communities. Additionally, through the skills, discipline and values that these young people learn through the game, the SAGDB is able to empower them to become economically independent and, ideally, to provide opportunities to other members of their communities.

The young members of the SAGDB are recognised nationally and internationally and, in 2021, represented the organisation in the four national team events in the country, as well as internationally at the FISU World University Games in Italy. Following graduation from the programme, many of these graduates go on to excel in golf, and almost as many go on to complete university degrees in South African universities and in universities in the United States.

II. Food & Trees for Africa

Food & Trees for Africa is one of the leading environmental and social development organisations in Africa. It is a non-profit organisation that specialises in integrated and sustainable community interventions. It has been voted the most impactful food security and environmental organisation in South Africa every year since 2017.

CLHG became involved with Food & Trees for Africa when it became aware of their flagship programmes addressing, among others:

• the development of sustainable community gardens;
• the development of commercial gardens and orchards focusing on intensive production by locals for sale at local markets;
• gardening and nutrition programmes in schools across South Africa;
• training of farmers in business and administrative skills in eco-enterprise development; and
• reforestation projects in damaged and vulnerable natural areas.

The projects and programmes implemented by the organisation integrate food security, climate change, and community forestry interventions, which aligns the practices of the organisation with the CLHG values.

III. Cuppa for CANSA

CANSA is a public benefit organisation that aims to provide people facing cancer with information, day-to-day help, and the emotional support they need in the communities where they live. Cuppa for CANSA is an initiative that invites corporates, organisations, schools, and individuals to host a social gathering in order to raise funds for CANSA as it runs its care and support programmes at CANSA Care Centres.

CLHG is aware of the devastating impact of cancer on many families in our communities, and individual hotels within the group are encouraged to host Cuppa for CANSA events.

IV. Emthonjeni Community Centre

In April 2022 CLHG once again visited Emthonjeni Community Centre to deliver another donation of soft goods and toiletries. The donation included 1935 items of linen and towelling, 415 pillows and 3 000 bars of soap worth approximately R266 000.

CLHG's relationship with Emthonjeni Community Centre goes back to 2018. Most of the items go into the centre's 'swop shop', with Zandspruit residents earning points from bringing in glass for recycling, which they can then "spend" on a wide range of goods that have been donated. From books and toys, clothing and household goods, to bedding and building supplies, the Swop Shop offers everything the residents of this impoverished area need to build a life with dignity that does not require ready money.