Relationships on which we rely to create value

Pursuing shared value

In pursuit of shared value, we recognise the critical importance of successful interactions with our stakeholders. We strive to understand what is important to those who impact our business, as well as to those on whom we have an impact, and to be responsive to their expectations. This informs our material matters, our strategy and our management of risks, and is part of our efforts to align our stakeholder engagement approach with the principles of King IV.

In June 2017, we combined the group regulatory affairs and public policy division with the group corporate affairs division to create an integrated approach to the identification, engagement and management of stakeholder relationships that is aligned to our BRIGHT strategy.

Assessing the quality of our relationships

While the quality of our relationships with particular stakeholders can differ from one country to another, here we provide a consolidated informal view at group level, using the following scale. A more structured approach to this assessment is being developed.

  Relationship exists, but work to be done to improve the quality.
  Good progress towards developing more mutually beneficial relationship.
  Strong relationship of mutual benefit.

 

Government and regulatory authorities

  • Provide enabling environment for value creation
  • Provide access to licences and spectrum.

Link to strategy

Priority interest area

  • Contribution to local economies
  • National security, personal privacy and consumer protection.

Desired outcome

  • To be considered a committed partner in the growth and development of each of the countries in which we operate
  • Adherence to laws and licence conditions.

Performance in 2017

  • Remained committed to respecting and upholding the security of information
  • At times, regulatory interventions affected our customers' experience as we continued to act in line with prevailing laws and our licence conditions
  • Progressed preparations for listing of MTN Nigeria and MTN Ghana shares
  • Extended efforts to employ local talent and procure more goods and services locally
  • Employed 63 nationalities
  • Committed a total of R27,9 billion in taxes
  • Materially enhanced our management structure and activities to support risk management and regulatory compliance
  • Introduced more internal controls and new code of conduct.

Investors

  • Provide financial capital for sustainable growth.

Link to strategy

Priority interest area

  • Sustainable and attractive total shareholder returns.

Desired outcome

  • The trust and confidence of our investors and the ability to access the financial capital we require.

Performance in 2017

  • Introduced our BRIGHT strategy and aligned our financial KPIs to it
  • Reviewed our capital allocation model
  • Declared a total dividend of 700 cents a share
  • Introduced medium-term targets including a re-basing of our dividend to 500 cents for 2018, growing 10% to 20% per year.

 

 

 

 

Customers

  • Purchase competitive and reliable products and services.

Link to strategy


Priority interest area

  • Affordable pricing and excellent customer service on a high-quality network
  • Personal data protection and privacy.

Desired outcome

  • Affordable products and services on a quality network
  • Ensuring that customers can communicate safely over our networks.

Performance in 2017

  • Reported 22 million active MTN Mobile Money customers
  • Where gaps in our information security processes were identified, we acted decisively to ensure our compliance with laws and customer expectations
  • Spent R31,5 billion in capex
  • Partnered with Lumos in Nigeria and Ivory Coast and ReadyPay in Zambia and Ivory Coast to provide prepaid mobile solar energy services to customers in support of digital, financial and energy access inclusion.

Community and civil society

  • Provide a market for our products
  • Ensure we are responsible and accountable.

Link to strategy

Priority interest area

  • Community development
  • Digital human rights
  • Impact of our business on the environment.

Desired outcome

  • Constructive and mutually beneficial relationships with our communities.

Performance in 2017

  • Extended our work to empower communities in education, health and enterprise development
  • Continued to evaluate our impact on the environment.
  • Engaged in discussions with investors and civil rights groups concerned about online rights and freedoms.

 

Employees

  • Provide skills required to deliver on our strategy, vision and purpose.

Link to strategy

Priority interest area

  • Career opportunities
  • Workplace conditions and practices
  • Visible ethical leadership.

Desired outcome

  • Competent, engaged, motivated and diverse employees who ensure the success and sustainability of MTN.

Performance in 2017

  • A refreshed management team introduced the BRIGHT strategy
  • Continued to develop employees through our learning academy, spent R252 million on employee training
  • Increased levels of employee engagement, with an increase in the group culture audit score.

Suppliers and business partners

  • Supply quality products and services as well as the opportunity to jointly create solutions for greater value creation.

Link to strategy

Priority interest area

  • Increased network deployment, coverage and quality
  • Ethical and responsible supply chain practices
  • Regulatory compliance.

Desired outcome

  • Transparent, efficient and mutually beneficial relationships with suppliers and partners.

Performance in 2017

  • Launched a new code of conduct to ensure that our suppliers, employees and subcontractors all adhere to ethical and good governance practices
  • Explored partnerships with suppliers to address upstream and downstream waste.

 

Media

  • Inform other stakeholders about developments at MTN and in the industry.

Link to strategy

Priority interest area

  • Network coverage and quality
  • Consumer and data protection
  • Business performance and impact.

Desired outcome

  • Positive and productive relationships with journalists, built on trust and reliability
  • Enhanced reputation for MTN.

Performance in 2017

  • Increased the visibility and accessibility of group and opco executives to the media
  • Supported activities of the South African National Editors Forum and Highway Africa conference.

Looking ahead

To improve trust in the MTN brand, enhance our reputation and secure our social legitimacy and licence to operate, in the year ahead we will continue our work to further develop our stakeholder-inclusive approach in line with the principles of King IV.

This follows an internal gap analysis, which identified the following as areas requiring intervention, and on which we have already launched a number of initiatives:

  • Hone the group policy on stakeholder relationship management to focus on stakeholder inclusivity and responsible corporate citizenship
  • Ensure that we use a standardised, shared and simple blueprint for managing stakeholder relationships across our markets
  • Create a system to monitor and evaluate the health of our relationships with all stakeholders.