Transformation as a business and cultural imperative continues to be driven rigorously at all levels across the RACEC Group. We need to go beyond the legal stipulations of the country’s transformation objectives. To do this, the Group realises that creating a high-performance, ethical, and inclusive culture in the workplace will not only attract-and retain-the necessary skills set but will help transform the company into a successful sustainable business.
RACEC Group has an active transformation policy in place and wants to be seen as a significant black-empowered engineering company. Broad-based Black Economic Empowerment (BBBEE) remains a key priority as it influences our local operations. We are currently a level 3 contributor and intend to further strengthen our BBBEE credentials during the coming year. We are looking to grow preferential procurement considerably with the advent of new projects.
Apart from the many individual BEE Shareholders, Solethu Civils Holdings (Pty) Ltd, a black owned and controlled company, which is strategically placed in the rail logistics industry, has purchased a 34% stake in RACEC Group Limited.
In 2004, the RACEC Employee Trust was established with ownership offered to all our staff. This has proved to be a resounding success, not only as a staff motivator, but as a means of providing true empowerment for our staff. The RACEC Employee Trust has a 3.9% equity stake in RACEC Group Limited.
All subsidiary operations of RACEC Group have in excess of a 34% BEE Equity Holding.
“We strive to build long term relationships with our clients by providing quality products and services which are cost effective.”
RACEC makes every effort to subscribe to the corporate governance principles as laid out in the King III report on Corporate Governance. To this end, in the past financial year we have implemented an Approvals Framework, a Code of Conduct, an anonymous tip-off mechanism and convened an ethics and a risk committee. In addition, we improved various board committee charters to encompass the relevant business principles as laid down in the code. Where we have not fully complied with the “must comply” elements of the code, we have felt it prudent to disclose these in the 2011 annual report.
There is an informal mechanism in place to ensure that pertinent internal and external legal requirements are met. While the board takes the necessary steps to identify the laws, rules, codes and standards applicable to the company, a formal structure will be put in place for all material items.
THE RACEC Group’s employees are its most valued asset and therefore their well-being and development is of great importance to us. RACEC has a dedicated manager responsible for handling all issues related to employment equity and training. As a Group, we are committed to creating opportunities for our employees through training and promotion from within.
We strive to provide a working environment in which our employees operate in a secure, healthy environment conducive to productivity and well-being, contributing to their personal development and to the company’s success. We encourage a work-life balance and proactively manage health risks by providing access to healthcare.
Ethics in the workforce
RACEC has an independent, anonymous ethics line which enables employees and other to report any irregularities and misconduct through a third-party provider, without fear of victimisation or recrimination. The notification and outcome of “tip-offs” are reported and managed at our quarterly audit compliance and risk meetings. As a result of one of these meetings we took legal action against a director and he was formally dismissed.
The RACEC Group’s health, safety and environment committee and the appointment of a Group Health, Safety and Environmental (HSE) Manager is part of our ongoing efforts to inform our stakeholders and the community where we operate, that we are committed to ensure the delivery of sustainable outcomes for our business and social partners a key business objective. The business has a limited effect on the environment in which we operate, and therefore, limited progress has been made in the monitoring of key indicators during 2011. Further improvements are planned for 2012.
Code of conduct
RACEC makes every effort to subscribe to the corporate governance principles as laid out in the King III report on Corporate Governance. To this end, in the past financial year we have implemented a Code of Conduct that supports our mission by :
- Focusing on ethical performance in keeping with our values of excellence, integrity, respect and service delivery.
- Ensuring management is prepared to implement and manage the pursuit of excellence in engineering.
- Improving the lives of communities by contributing to the development and maintenance of national infrastructures.
- Enabling a growth environment in which stakeholders may realise their full potential.
- Generating prosperity and profits in the short and long-term.
- Balancing our stakeholders’ needs, our impact on the planet and our determination to create a sustainable environment for our children to inherit.