Interacting with stakeholders

The mobile communications industry is heavily regulated. In many countries, it provides key infrastructure essential to economic development as a de facto provider of communications services and is a large national taxpayer and a significant employer. For these reasons alone, engagement with a wide spectrum of stakeholders is important.

In 2011, MTN, including its board members, made progress on stakeholder engagement and input. A stakeholder framework, which aims to better track and formalise stakeholder engagement and input, will ultimately be rolled out throughout the Group and its operating companies. It takes into account policies and principles defined in King III and the AA 1000 Stakeholder Engagement Standard and Information Privacy: Fair Information Practices and Principles (FTC, 1999).

In our 2010 report we identified some of our key stakeholders. This year, we provide a few select examples of new initiatives to build on these relationships.

Employees

We launched a new employee value proposition and a new approach to managing leadership talent. Further details are contained in the people and people and remuneration report on pages 58 – 73.

Regulators

MTN has always prioritised constructive engagement with regulators and continues to build on this in light of increased regulation and its impact across our footprint.

Government bodies

MTN closely guards its independence. However, it recognises the importance of balancing this with appropriate engagement with key government bodies by the right people from MTN. The significance of this engagement has recently been highlighted by the increase in Western sanctions against certain of our operating countries.

The media

MTN recognises the important role of the media in our communication with all stakeholders. The Group is adopting a more proactive approach to this engagement both at a Group and local level.

NGOs

The new social and ethics committee will provide guidance on dealing with the challenges of operating in high-risk countries as well as better engaging with key players on a broad spectrum of issues.

Shareholders and the investor community

During the year, we established a new format of engagement with our larger investors. In line with best practice, the chairman and the lead independent director gained valuable first-hand insight into their views during these meetings. We also introduced a new forum for sell-side analysts which is held regularly after the release of the half- and full-year financial results. These meetings have been well attended by our senior executives and a wide range of equity analysts from leading research houses.

Customers

As competition increases, we recognise the importance of better understanding our customers’ needs and their behaviour. To this end, we are enhancing our business intelligence tools and use thereof.

Distributors

Engagement with distributors is managed on a country-by-country basis, through established corporate structures.

Suppliers and business partners

The transformation of our procurement processes has led to a more centralised and closer engagement with original equipment manufacturers and other key suppliers. The role and strategic nature of our business partners such as the tower companies have fundamentally changed as our business model evolves.

Competitors

As markets mature, industry forums have become more prevalent. As the leading mobile operator in 15 markets, MTN takes its role in such groupings seriously, without compromising issues of competition.

Local communities and the general public

As evidenced in this report, our contribution to economic, social and environmental sustainability continues to grow and extends well beyond our basic commercial mandate. This is informed by formally communicated government priorities and the needs of the general public, channelled through various touchpoints with the organisation, including our foundations, corporate affairs departments and staff.

Ratings agencies

We assist key ratings agencies in better understanding our business and corporate structure. This is managed formally through regular meetings.