Transformation is key to sustainability, says Old Mutual

Crispin Sonn, Director of Corporate Affairs, Communications & Marketing at Old Mutual South Africa (OMSA)

: "If South African businesses are to be sustainable in the long-term, it is critical that they operate in an economy in which more South Africans enjoy access and opportunity. This will stimulate growth and increase consumer demand to the benefit of all South Africans. There can be no doubt that broad-based black empowerment is not o­nly the right and just thing to do, but also makes profoundly good business sense in the long term,” says Crispin Sonn, Director of Corporate Affairs, Communications & Marketing at Old Mutual South Africa (OMSA).

Sonn was commenting o­n the company’s announcement that it had achieved BBBEE contributor status level two, putting the Old Mutual group (including Nedbank) at the head of the league of financial services providers in South Africa.

The largest and most well-established financial services provider in Southern Africa, Old Mutual’s position in the industry is reflected in strong operating performance across all businesses, good balance sheet, strong financial flexibility with demonstrated access to international capital markets and diversity of business.

“Making operations socially sustainable is crucial to these achievements. And transformation is the key to sustainability,” says Sonn.

The company’s DTI scorecard (confirmed at October 2010) has moved up to an impressive overall score of 86.99 - giving Old Mutual the number o­ne ranking in the financial service industry. The score was verified by AQRate, a leader in the verification of insurance companies in the financial services industry.

“Our greatest improvement is seen in skills development spending. Old Mutual’s research has shown us that poor financial planning habits are at the root of poor money management. We see our investment in skills development, therefore, as part of our social responsibility to educate the wider community o­n responsible financial behaviour.

“It is through tools and knowledge, not through handouts and donations, that we will meaningfully and sustainably transform and empower our country’s poorest and most disadvantaged people,” says Sonn.

Other areas of measurement include -

*Increased Black ownership – with effective voting rights held by blackinvestors approaching 30% (26,5%)
* Increased Black management and control
* Employment equity
* Procurement – a heavily weighted area in which Old Mutual scores extremely well, and
*Enterprise development and socio-economic development – in both of which Old Mutual has exceeded the financial services measurement criteria.

OMSA and Emerging Markets CEO Kuseni Dlamini is extremely clear o­n the benefits of transformation: “By being active corporate citizens, we can unleash the full potential of our great nation and be a real force for good for all South Africans,” he says.

“To some the BEE contributor status is just a score with the Department of Trade and Industry, but to us it serves as a reminder of the responsibility we have to South Africa, the stakeholders in our business, our employees, and each and every o­ne of our customers. We are not achieving our transformation initiatives o­n our own – and we recognise the great efforts of our partners who are making this journey with us,” he adds.

Dlamini believes attention to sustainability means that the company is better attuned to “delivering long-term success for all our stakeholders, including our shareholders.” Old Mutual’s reputation for upholding standards of integrity and ensuring that stakeholders are dealt with honestly and fairly, is safeguarded. And better informed customers understand and value the company’s product solutions better, helping Old Mutual maintain and nurture relationships so that it can continue to do great things together with its customers.