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Corporate profile

Stakeholder engagement

Every two years we measure our corporate reputation using the proprietary Global REPTRACK tool of the Reputation Institute. The most recent study, completed in 2011, revealed that the IDC’s emotional connection amongst its key stakeholders is considered strong at 73 index points, above the global mean for financial services. Further, the IDC has a strong following with 87% of stakeholders trusting the organisation to “do the right thing”.

Stakeholders defined the most important of the IDC’s attributes as “offering high-quality products and services”, “being financially sustainable” and “having a clear vision for the future”. To improve reputation and mitigate risks, the IDC needs to focus on “having excellent managers”, “being a well-organised organisation”, “employee wellbeing”, “offering value for money products and services”, “meeting customer needs” and “having a positive influence on society”.

Broader society, as well as applicants for funding, often have difficulty in understanding the role of the IDC and its mandate for adding value in the economy.

Indeed, less than two-thirds of our stakeholders are aware that the IDC’s purpose is to provide funding and to support business development.

Considering this challenge, we embarked on a campaign to proactively engage our stakeholders, establish their concerns and expectations, and put forward a clear and feasible strategy for achieving our organisation’s mandate.

In addition to various direct stakeholder engagement events during this financial year, we contracted a third party to conduct various surveys, including customer satisfaction, stakeholder and employee engagement surveys.

We plan to continue building our understanding of the key concerns of our stakeholders and ensure that we maintain a high level of transparency and accountability in our reporting. This will enable us to not only become more effective in managing stakeholder expectations, but also maximise the development impact we can deliver.

The criteria for identifying the IDC stakeholders listed in this report was based on three factors, namely:
  • Their power to influence perceptions about the IDC
  • The legitimacy of their engagement with the IDC
  • The urgency with which the IDC needs to engage them

The following table provides a brief overview of our stakeholders, their expectations and concerns:

Stakeholder category   How we engage with our stakeholders   Expectations and concerns
Shareholder        
  • Economic Development Department (EDD)
  • Parliamentary portfolio committees
  • Three spheres of government (national, provincial and local)
 
  • Board meetings
  • Meetings between government ministries and IDC executive and senior managers
  • Presentations to parliamentary portfolio committee: economic cluster
  • Presentations to provincial executive committees
 
  • Increase impact on job creation
  • Increase impact of levels of industrial financing
  • Be more proactive in identifying opportunities
  • Finding ways to lower cost of funding
  • Need to provide a quick service to customers
  • Investment has to contribute to industrial development
  • Need to assist in moving South Africa to a less carbon-intensive economy and maximise job creation in green industries
  • Need to incorporate black economic empowerment and SMME development into industrial development activities
  • Co-operate with other spheres of government including government agencies and enterprises to stimulate economic activity in under-developed regions
  • Need to consider the impact on women and youth in our development activities
Employees        
 
  • Board feedback and CEO updates
  • Meetings hosted by divisional executives or heads of strategic business units (SBUs) and departments
  • Internal newsletter
  • Internal events and activities
  • Corporate strategy presentations
  • e-mail
  • Performance reviews
  • Targeted presentations on various initiatives
  • Quality of leadership
  • Communication of strategy
  • Work satisfaction and working environment
  • Career development, training and advancement
  • Reward and recognition
  • Fair labour practice
  • Open communication and a positive corporate culture
Customers        
  • Existing IDC clients
  • New applicants
  • Potential clients
 
  • Website
  • Brochures
  • Research publications
  • Hospitality events
  • Annual report
  • Existing clients:
    • Client visits by SBUs, regional offices and Post Investment Monitoring Department
    • Stakeholder newsletter
    • Direct communication with, and face-to-face visits by SBUs and departments representatives
    • Regional roadshows and site visits
  • Potential clients:
    • Walk-ins, call centre
    • Advertising, media releases
    • Sector workshops
    • CEO roadshows
    • Presentations by regional managers to business associations/chambers
    • Exhibitions/conferences
 
  • Relevant products and services
  • Competitive pricing
  • Quality of after-care services
  • Expertise in all areas where IDC operates
  • Excellent customer service:
    • Simplicity of application processes
    • Speed of approval process
    • Responsiveness
    • Legal agreements
  • Credibility and sound reputation in the market
  • Open communication
  • Good governance and leadership
Influencers        
  • Regulators
  • Media
  • Unions and activist bodies
 
  • Media statements
  • Annual report
  • Presentations by IDC Executive and senior management
 
  • Developmental impact
  • Long-term financial viability
  • Meet IDC’s mandate
  • Adherence to good corporate governance
  • Transparency towards all stakeholders
  • Ability to innovate
Partners        
  • Commercial banks
  • Co-funders
  • DFIs
  • State-owned enterprises
  • Corporates
  • Project developers
  • Government agencies
  • Rating agencies
  • Suppliers
  • Researchers
 
  • Media statements
  • Annual report
  • Direct communication
  • Engagement sessions with IDC executive and management
  • Presentations on specific issues
 
  • Relevance of products and services
  • Sharing expertise in key areas
  • Financial performance
  • Good governance and leadership
  • Positive impact on the economy and society
Business  
  • Business associations (local and international)
  • Chambers of commerce
 
  • Media statements
  • Annual report
  • Direct communication
  • Engagement sessions with IDC executive and management
  • Presentations on specific issues
 
  • Relevance of products and services
  • Positive impact on society
  • IDC’s influence on government policy
  • Have experts in the business sector
  • Ability to innovate
  • Governance and leadership
Communities  
  • Workers
  • NGOs
  • Beneficiaries of IDC activities (e.g. CSI)
  • Higher education institutions
  • General public
 
  • Media statements
  • Annual report
  • Engagement through projects
 
  • IDC to be a good corporate citizen
  • Expect IDC to be innovative
  • Leadership and governance
  • Impact on society
  • A good employer