Business partners and communities

 

IN THIS SECTION:

Equity partners
Suppliers
Concessionaires
 

 

Communities
Social responsibility
 

AT A GLANCE

Our Business Partners are defined as equity partners, suppliers, concessionaires and the communities in which we operate. All are fundamental to our sustainable success and contribute in different ways. Our business partner framework deliberately provides strong B-BBEE opportunities.

The communities in which we operate benefit from our Social Investment and Enterprise Development spend. 1% of profit after tax is committed to Social Investment and 2.25% to Enterprise Development. In the year under review, our total Corporate Social Investment spend was R18.3 million. Numerous projects were completed over the course of the year, directed by the specific needs of communities in which we operate.
 
OUR ACHIEVEMENTS
 
OUR OBJECTIVES
Total corporate social investment spend in 2011 was R18.3 million.
Several significant health, welfare and education projects were launched.
 
To ensure alignment of our business partners with Sun International’s codes of conduct.
To actively pursue good relationships with our equity partners, suppliers and concessionaires and to leverage their skills and experience.
To have a positive impact on the communities that surround our properties.
 

Equity partners

Our equity partners are an integral part of Sun International’s success. They contribute skills, insight and creativity and allow the company to spread the benefits of its success to a wide-ranging group of stakeholders. They are highly valued partners in our business and in our future.

Refer to the review of the Group's transformation strategy and direction for the BEE ownership of the Group and its South African subsidiaries.
 
Other equity partners in various Group subsidiaries are:
Company Partner   % holding
SFIR Novomatic Austrian slot machine manufacturer with interests in casinos and sports betting 40%
Chilean Enterprises Private investors 10%
  International Group of Gaming and Resorts Private investors 10%
Lesotho Government of the Kingdom of Lesotho 36.4%
  Lesotho National Development Corporation   16.7%
Swaziland Tibiyo Taka Ngwane Swaziland development corporation established for the benefit of the Swazi people 39.7%
Botswana KYS Investments Limited Botswana government development agency 20%
TCN Ikeja Hotels Limited Listed Nigerian company controlled by the Ibru family 49%
 

Suppliers

Suppliers play a critical role in the success of Sun International and they constitute not only a family of service providers and external experts, but also investors in our business and its future. They provide the Group with a wide range of services in disciplines as varied as IT and human resources to landscaping and food and beverages. They co-operate closely with us on issues ranging from B-BBEE to standards improvement and cost control. Many of them have been supplying Sun International for well over a decade and partner with us on continuous improvement, constant innovation and value added services.

Our Group Code of Ethics commits management and employees to the highest ethical standards of conduct and the code articulates the Group’s commitment to its stakeholders, including our suppliers.
 

Concessionaires

Our concessionaires are close partners with us in all our properties and provide focused goods and services to our guests at the very highest standards of excellence. Given the symbiotic relationship they have with the Group and the fact that their brands work closely alongside our brand, they work with us on customer standards, service delivery and exceeding customer expectations.

Many of our concessionaires have concessions in several of the Group’s properties and have become part of the customer experience and expectation. The Group’s B-BBEE scorecard is affected by their ability to deliver real empowerment and in this many of our concessionaires – both older and emerging – have been particularly successful.
 

Communities

Sun International is committed to good corporate citizenship, responsible leadership and the responsible management of our obligations to and impact on all sectors of society. Our aim is to have a positive impact on society, while minimising environmental risks and making a sustainable contribution to the economy and society.

Our projects are managed both centrally and by unit, with our properties focusing on the immediate communities in the areas of their operations. Contributions are focused on a number of projects within the areas of Health and Welfare, Education and Community Development.

In Health and Welfare, projects such as Reach for a Dream, the Tapologo AIDS Hospice and Emmanuel’s Haven receive substantial assistance from Sun International and provide care for children in distress or in need.

In Education, secondary schools, bursary funds and the Study Trust receive financial aid from the company in areas from the Ekukhanyeni Primary School in Gauteng to the Clayhaven Primary School in KwaZulu-Natal.

The company is one of the major sponsors of the South African paralympic team that will compete in London in 2012. Sun International is also a founding member of the Arts and Culture Trust which has supported more than 500 projects throughout the country.

As reported in the 2010 annual report a judgement was handed down in March 2010 by the Land Claims Court which ordered that the land on which the Fish River Sun complex is located be restored to the Mazizini community. Another community, with competing claims to the Mazizini community in respect of the land occupied by the Fish River Sun, has brought an application in the Supreme Court of Appeal (SCA) in which it is seeking an order for the rescission of the Land Claims Court’s earlier judgment in favour of Mazizini. Indications are that the SCA may very well grant the rescission order and refer the matter back to the Land Claims Court to be dealt with afresh. Under the circumstances Emfuleni has pended the appeal it lodged in the SCA and is not opposing the new community’s request for rescission. Instead, Emfuleni will request the SCA to give directions to expedite the disposal of the land claim and to grant an order to recover its wasted costs in the earlier Land Claims Court proceedings.

Communities also share in our success through ownership of shares, such as with GPI, which has many thousands of investors who placed their faith in the company from the first day.

The Wild Coast Sun and the Minister of Rural Development and Land Reform have filed answering affidavits in the application brought by the Mngungundlovu community for restitution of the land occupied by the Wild Coast Sun under a long term notarial lease; alternatively, for the expropriation of those leasehold rights. The Wild Coast Sun requests the Land Claims Court to order, instead, transfer of ownership of the land from the State to the community; alternatively, if the expropriation order is granted, payment of compensation of R1.4 billion to the Wild Coast Sun. The Minister supports restoration to the community through a transparent process led by the Department of Rural Development and Land Reform. 
 

Social responsibility

Socio-economic contribution
1% of profit after tax is committed to Social Investment and 2.25% to Enterprise Development. In the year under review, our total Corporate Social Investment spend was R18.3 million. This was a decrease from the R20 million spent last year, in line with the Group decision to channel more money into Enterprise Development. The Sun International Social Community Development Trust was established to ensure that all projects were aligned with specific criteria. The company has identified five focus areas for SED: Health and Welfare; Education; Community Development; Sports; Arts and Culture; and “Other”.

Sun International has also entered into appropriate, public/private partnerships to ensure the sustainability of certain projects.
 
Social economic development spend comparative figures
 
Focus areas 2011   2010
Community development 21%   11%
Education 34%   25%
Health, welfare and HIV/AIDS 25%   39%
Other 12%   17%
Sports, arts & culture 8%   8%
Total 100%   100%
 
Community Development spend increased by 74.7% as compared with the previous financial year. Sun International business units operate across various regions, and many of the community development projects are sparked by specific local needs.

Education spend increased by 24.4% compared to 2010. This was driven by the dire need for schools and skills – the shortage of which has been driven by poor economic conditions. Many parents cannot afford to pay for school fees or further education, leading Sun International to become involved in the Study Trust.
 
 
The overall Health and Welfare contribution was reduced by 41.3% compared to the previous financial year. This was largely owing to the increased attention given to Community Development and Education.

Some of our flagship projects are included below to demonstrate the type of initiatives that Sun International was involved in. This list illustrates only rather than a comprehensive view of projects we are committed to.
 
Health and welfare (Including HIV/AIDS)
 
Reach for a Dream This initiative enabled 100 children suffering from life-threatening diseases to fulfil their dreams. The contribution to this initiative was R200 000.
SHAWCO This student-run NGO at the University of Cape Town has been in existence since 1943, providing the community with basic healthcare services. GrandWest invested R676 000 in the project during the year.
Pholosong Hospital The hospital is a regional hospital based in Gauteng and serves 900 000 previously disadvantaged citizens. Carnival City spent R502 100 towards revamping, equipment and the refurbishment of the trauma/casualty unit at the hospital. The trauma unit deals with approximately 40 000 patients per year.
 
 
Community development
 
Blisters for Bread GrandWest donated R538 153 to this feeding scheme which provides sustenance to 226 000 children in 630 schools across the Western Cape.
The Grootvalei/ Blesbokspruit Conservation Project This vital wetland in the heart of Gauteng is the centre of the project’s environmental education programme for local communities and for the year under review Carnival invested R230 000 in the programme out of a total of R360 000 we have committed to over three years.
Lukhanyiso Children’s home Boardwalk spent R430 650 on the extension of Lukhanyiso Children’s home.
Love in Action Project Love in Action is a shelter which takes care of the abandoned children ages 6 to 18 years. In 2010 Morula Sun assisted in completing the home for these children. The cost of the project was R309 738.
Umgungundlovu Tribal Authority Building Wild Coast Sun spent R133 538 on the building of a courthouse .The courthouse will provide a range of services for the 5 230 homes saving the poor and needy huge transport costs to and from Mbizana district offices to access services that will be offered by the new office.
The Mzamba Trauma and Care Centre This is funded by the Wild Coast Sun Mbizana Development Trust. The cost of the project was R1 163 526. The Trauma and Care Centre is situated at the Mzamba Police Station opposite the Wild Coast Sun in the Eastern Cape. Its purpose is for the protection and empowerment of victims, particularly of women and child abuse. It is envisaged that the centre will encourage reporting and facilitate solutions to problems affecting our communities.
 
 
Education
 
The Study Trust The combined efforts of Boardwalk and Head Office contribute R648 513 to the fund. The Trust is an independent national bursary organisation that grants bursaries to underprivileged deserving students studying, inter alia, finance, engineering, hospitality and tourism and information technology.
GrandWest CSI Bursary Fund Established in 2007, the fund makes grants to applicants in the Western Cape who are involved in full time studies in mathematics, science and technology. At its inception the fund pledged 5 million over five years and this year granted R2 245 640 worth of bursaries.
Nkosinathi High School This is a school in KwaZulu-Natal which had 14 classrooms with an enrolment of 1 200 African learners. The overcrowding in classrooms was the ratio of 86 students to 1 classroom. Sibaya constructed three classrooms and eight cubicle toilet blocks.
Stonebridge Primary School This school is located in Phoenix in KwaZulu-Natal. Sibaya renovated the existing library through refurbishing with new tiling, shelves, furniture and the purchasing of books. The value of the project was R204 339.
Factreton Primary School A primary school in Cape Town was renovated where the buildings were repaired and additional items such as books for the library were donated. GrandWest spent R183 864 on equipment, tools and labour.
Mobile Science Laboratories There were 10 laboratories purchased from Makhayise Industries to the value of R356 877 and donated to various underprivileged schools.
Career Exhibition The Carousel afforded 8 600 underprivileged young Grade 11 and 12 learners from 30 high schools from the Hammanskraal and Moretele communities an opportunity to attend a four day Career Exhibition Week and advised on choosing different careers. Funds also supported student bursaries and financial assistance. The value of this initiative was R192 876.
Norokie Entrepreneurial Skills Development Project This project located at Swartdam, with the aim being to provide a series of training workshops to develop dressmaking and manufacturing skills. The project also addresses life skills and healthcare problems such as HIV and AIDS, and contributes to the alleviation of poverty and related concerns in our immediate community. R200 000 was spent on this project.
 
 
Sports, Arts and Culture
 
SASCOC Paralympics Sun International is one of the major sponsors of the South African Paralympic team which competed in Beijing last year and will compete in London in 2012. R1.2 million has been set aside for 2012.
Arts and Culture Trust As a founding member of the Trust we have supported more than 500 projects throughout the country. This year our contribution was R400 000.