Social and relationship capital
Broad-based black economic empowerment (BBBEE)
Hyprop recognises that integrating transformation into business practice is crucial for the sustainability of the company and South Africa. As such, we support the aims of the property transformation charter.
The social and ethics committee is responsible for driving progress in specific areas of the BBBEE scorecard. Management is dedicated to substantially increasing BBBEE at all levels of our business to assist in redressing the imbalances of the past and empowering historically disadvantaged individuals.
New BBBEE codes were effective from 1 April 2015, but property sector-specific code adjustments were postponed to October 2015. The new certificate will be available online from November 2016.
Corporate social investment (the Hyprop Foundation)
Corporate social investment (CSI) takes place at group level through the Hyprop Foundation to ensure we focus on addressing identified needs in communities around our properties, or those affected by our business operations.
The foundation’s long-term vision is to ignite a culture of sustainable projects for communities that support our business and to encourage our people and stakeholders to be involved.
In 2016, the Hyprop Foundation invested over R1,3 million in projects, primarily focused on education and community upliftment programmes.
Funding
The Hyprop Foundation’s budgets and projects are approved and monitored by the social and ethics committee. In line with the foundation’s vision, funding is generated through a system of “value shares”. The shares are created by Hyprop employees and stakeholders (e.g. retail tenants) contributing their time and resources to identified initiatives and the value of involvement is converted to a funding value. The aim is to ignite a culture of involvement in the company and with its stakeholders.
The foundation categorises these value shares as:
Donation shares |
Projects may require immediate donations of cash and products. Every tin of food, book or blanket collected counts as a donation share. A percentage of theatre productions and holiday events at shopping centres are allocated to project funding |
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Health shares |
Healthy living and activities are encouraged. Every kilometre walked, run or swum for a cause at specified events is rewarded with health shares |
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Hour shares |
When a Hyprop employee participates in a project, each hour worked translates into a predetermined rand value for the foundation |
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Skills shares |
Individuals with specific skills donate their time to initiatives that enhance community upliftment and skills transfer |
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| Children participating in the MES gymnastics programme |
The funding value contributed by Hyprop to the foundation for each share generated by employees and stakeholders in 2016 was over R1,4 million. All initiatives undertaken by the foundation comply with its philosophy and code of good practice, and fall into the following prioritised categories:
| Spend per priority element | Target 2017 % |
Target spend 2017 R |
Actual 2016 % |
Actual spend 2016 |
Actual BEE certification value earned 2016 |
Actual 2015 % |
Actual spend 2015 R |
Actual BEE certification value earned 2015 R |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Education | 67 | 1 073 000 | 68 | 911 941 | 1 076 091 | 56,2 | 649 061 | 1 514 811 | ||||||||
| Community upliftment | 25 | 396 682 | 29 | 391 786 | 757 562 | 35,3 | 407 831 | 1 015 204 | ||||||||
| Health and wellness | 3 | 41 000 | 1 | 5 400 | 353 456 | 0,3 | 3 401 | 107 860 | ||||||||
| Environmental upliftment | 5 | 80 000 | 2 | 29 938 | 42 902 | 8,2 | 93 923 | 103 691 | ||||||||
| Total | 1 590 682 | 1 339 065 | 2 230 011 | 1 154 216 | 2 741 566 |
The foundation revised its funding application during the year and considers the measurable impact before funding is allocated. Employee engagement is encouraged and employees can nominate projects and beneficiaries.
Measuring the return
| Target 2017 |
Actual 2016 |
Actual 2015 |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BEE certification value R |
Hyprop Foundation budget R |
Return value % |
Funding to be raised through shares R |
BEE certification value R |
Hyprop Foundation actual spend R |
Return value % |
BEE certification value 2014/2015 R |
Hyprop Foundation actual spend R |
Return value % |
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| 2 661 623 | 1 590 682 | 167 | 1 600 000 | 2 230 011 | 1 339 065 | 167 | 2 741 566 | 1 154 216 | 238 | ||||||||||
Identifying beneficiaries
All potential beneficiary partners are screened by the Hyprop Foundation management committee and Hyprop remains involved in each initiative. The foundation management committee reviews all funding proposals, and the decision to proceed is based on the proposal’s alignment to Hyprop’s core business. The foundation faces a number of challenges given the overwhelming need for assistance in every community and resulting volume of applications – the aid requested often exceeds available funds, while rejecting applications that do not comply with the foundation’s requirements can prove difficult.
For more information about Hyprop initiatives please view the Foundation report online. |
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| Book donation recipient |