Social and relationship capital

A social and ethics committee monitors the group’s activities in terms of social and economic development, including:

	Adherence to the principles of the UN Global Compact (a policy initiative to align businesses with 10 universally accepted principles covering human rights, labour, environment and anti-corruption), broad-based black economic empowerment, employment equity and the recommendations of the Organisation for Economic Cooperation and Development (OECD) on anti-corruption
	Good corporate citizenship that includes promoting equality, preventing unfair discrimination, corporate social responsibility and ethical behaviour
	Environmental, health and safety matters
	Consumer relations
	Labour and employment, including education and skills development

Community development

The company encourages preferential procurement, guided by procedures set out in our code of conduct. All our suppliers have been verified, and 95,1% of our procurement spend is BEE compliant. We intend to expand our procurement guidelines to include environment-related matters such as supply chain management, impacts on climate change and a rating scale to evaluate potential suppliers in awarding tenders.

During the year, we spent almost R3,4 billion with qualifying suppliers for a range of services including R21 million, with suppliers who are classified under enterprise development.

Corporate social investment (CSI)

Corporate social investment (CSI) takes place at two levels in Hyprop: at group level where we invested over R760 000 during the year, R1 053 000 at shopping centre level, and R2,1 million through various in-kind resources. This takes the total CSI to R3,9 million in the review period.

Our shopping centres have always played a central role in their local communities. In particular, Canal Walk is the only shopping centre in South Africa with its own foundation dedicated to community upliftment.

The Hyprop Foundation, established in 2013, is a centralised vehicle for our CSI projects, ensuring these are not isolated activities but part of the broader socially responsible performance of the group.

In line with the foundation’s vision of igniting a culture of involvement, funding is generated through a system of “care shares”, including:

	Donation shares
	Health shares
	Hour shares
	Needs shares
	Skills shares

In turn, Hyprop contributes a cash value for each share generated and funds are applied against relevant projects. All projects undertaken by the foundation comply with its philosophy, are in line with its code of good practice, and fall into the following categories:

	Education
	Enterprise development
	Social upliftment
	Poverty alleviation
	Health and wellbeing

In financial year 2014, our employees participated in several events to earn care shares for the foundation (detail on other projects and our partners appears on www.hyprop.co.za):

Stop Hunger Now (foundation category — social upliftment and enterprise development): the foundation partnered with Stop Hunger Now’s results-orientated nutrition programme as part of a community involvement project. At various events during the year, the foundation assisted with funding food purchases, providing facilities for packing events and allocating resources to markets and management. Communities in the immediate vicinity were included in the beneficiary list that received packaged parcels distributed by Stop Hunger Now. Our events produced 151 608 meals, enough to feed 5 000 children three meals a day for a year. The key focus of the project is to assist schools to develop their facilities sufficiently to qualify for registration with the Department of Social Development. By saving on food, these schools are able to invest in infrastructure and educational needs to provide safer, more hygienic and productive learning environments. This is monitored closely by Stop Hunger Now and monthly progress reports are provided to donors. Our participation creates awareness and contributes to increased foot traffic into participating shopping centres.

Ekhaya renovations in partnership with Mould Empower Serve (MES) (foundation category — poverty alleviation): Ekhaya shelter provides overnight accommodation for 150 homeless people. It also provides emergency accommodation during extreme weather conditions and when primary accommodation has been destroyed or is no longer suitable for habitation. Our contribution supported inner-city upliftment.

Summary of current CSI initiatives

Foundation category		Initiative		Objective (and partner)		Beneficiaries (estimated)
Education		Book drive		Equipping underresourced libraries in public schools, including early learning centres, primary and secondary schools.		Schools attended by children of Hyprop employees
		Holiday programme		Children’s programme, facilitated by MES over the June and December school holidays. Programmes are hosted in a child-friendly, safe environment with educational and creative activities that help to stimulate and nurture physical and emotional development. The children are also given a meal. The programme format is adjusted for the December holiday season to accommodate extended trading hours.		Children of tenants’ employees
		Book collection		Second-hand books are donated by Hyprop employees to the MES library in Hillbrow.		Families housed in MES buildings and students sponsored by MES
Enterprise development		I was shot in Joburg		Inner-city upliftment programme to train and support unemployed people as photographers so as to develop sustainable income-generating businesses. Their services were used at Hyprop’s 2013 year-end function.
		Michael’s entertainment		Inner-city upliftment programme to train and support unemployed people with musical talent to create a sustainable income stream. The service was used at Hyprop’s 2013 year-end function.
Social upliftment and enterprise development		Matla a bana		Project initiated and managed by the Callie and Monique Strydom Charity Trust addressing gaps in the South African child protection system. Hyprop Foundation has funded one year’s rental for the Matla a bana premises and provides guidance in moving to an independent and sustainable model. Clearwater Mall provides storage facilities and hosts education seminars on child abuse in its forecourts, in collaboration with the South African Police Service.
Foundation category		Initiative		Objective (and partner)		Beneficiaries (estimated)
Poverty alleviation		Give your heart to the City		A Valentine’s Day campaign, in partnership with MES, focused on the social needs of the city and its inhabitants.
		Winter drive — badges		Stations in Hyprop shopping centres, manned by MES beneficiaries, sell badges. Proceeds are used to buy and distribute scarves, beanies and gloves to the homeless.
		Soup drive		Annual initiative encouraging staff to donate soup to MES which, in turn, provides the homeless with a meal.		In 2014, we collected 25 830 servings, beating the target of 15 000.
		Angels in Blue		The South African Police Service identifies orphans of policemen and women who have died in the line of duty to receive Christmas gifts.		The foundation donated R7 000 in gifts to this cause, which is driven by Rosebank Mall.
Health and wellbeing		JP Morgan Corporate Challenge		A corporate sporting event that encourages employees to lead an active lifestyle while building a spirit of team effort.		Participation generated health shares to the foundation.
		Discovery 702 Walk the Talk		This 5km or 8km walk through the suburbs of Johannesburg gets Hyprop employees active and includes their families and pets.		Participation generates health shares to the foundation.
		Gymnastics equipment		Supporting MES in buying gymnastic equipment for preprimary learners to develop gross motor skills
		Hyprop health day		An annual health day at Hyprop’s head office and shopping centres. Employees are appropriately counselled and tested for HIV and have their blood pressure, sugar and cholesterol levels measured.		Hyprop employees. Participation generates health shares to the foundation.

Fines

Hyprop incurred no fines or prosecutions for non-compliance with social laws and regulations during the year.