Company profile

BEE credentials

 

The FirstRand Group was a signatory to the Financial Sector Charter (FSC) for broadbased black economic empowerment. BEE, as defined in legistlation, means the economic empowerment of all black (African, Coloured and Indian) South Africans.

History of the Financial Sector Charter (FSC)

The FSC was a voluntary initiative by the sector to address racially based income and social inequalities in South Africa. For four years FirstRand measured its black economic empowerment initiatives according to the Industry charter. The FSC was not gazetted as a Sector Charter and therefore the BEE measurement within the FirstRand organisation is now done according to the DTi Codes of Good Practice generic scorecard. The generic scorecard does not make provision for Industry related finance such as access to financial services; transformational infrastructure and the financing of small black business, to mention at few.

DTi generic BEE scorecard

The generic scorecard has the following components:

• Ownership
• Management and control
• Employment equity
• Skills development
• Affirmative procurement
• Enterprise development
• Socio-economic development / corporate social investment

Measured according to these components, FirstRand obtained a Level 3 Contributor BEE rating for 2009 and 2010 and a Level 2 for the 2011 reporting period.

 

Transformation within the organisation

FirstRand believes that transformation is about more than scorecards or BEE credentials, and the abovementioned components as well as those listed in the Financial Sector Charter are covered in our own five pillars of transformation as explained below:

The Group has embarked on the journey of transforming society, the company and its people. FirstRand believes that transformation takes place from the outside in. The company cannot be transformed without thinking of the country as whole. FirstRand acknowledges that the journey may be long and, at times, tough, But it is confident the steps it has taken already, demonstrate its commitment to the process. Within the organisation transformation efforts are concentrated into five key pillars:

• A better macro-environment

  We strive to improve the macro environment by changing attitudes and promoting confidence. And through the FirstRand Foundation, we donate 1% of its after-tax profits to carefully selected Corporate Social Investment initiatives. Internally, our philosophy embraces the concept of diversity.

• Investment imbalances

  We help redress investment imbalances by financing development infrastructure, housing and agriculture and by providing access to financial services to previously disadvantaged people in geographic locations where services weren’t previously available.

• Employment equity

  We aim to recruit a disproportionately large number of black people relative to the supply of skills, and then provide them with an environment where they can develop skills.

• Development of black business

  We are procuring from black companies and are also assisting them through mentorship and finance.

• Equitable ownership

  We have transferred significant ownership of our company to black beneficiaries. FirstRand’s (FSR) South African operations, direct black ownership is 26% and direct black women ownership is 12%. The Group also continues to facilitate the financing of ownership transfers of other companies and RMB are one of the leaders in both financing and participation in BEE deals since the Nineties.

 

To download BEE certificate, please click here.