‘03

In these first ten years of our democracy, South Africans have developed an enviable quality - that of demanding change while living with its associated volatility.

Consequently, there is no shortage of healthy debate around contentious issues in this land.

This is as it should be.

Particularly when that debate occurs among parties as committed to mutual respect as they are to their respective positions.

One of those debates - and perhaps the chief one for local business people - is the relationship between business and society.

The relationship takes on a particular complexity in South Africa. We are still having to contend with a society, and an infrastructure, left so blighted by the arrogance of apartheid.

Clearly, corporate South Africa bears a responsibility to help rebuild our country.

At Old Mutual our corporate citizenship stance is simple: we must continue to build a strong business, for the capacity to transform and act as a responsible corporate citizen is directly influenced by our financial performance. In turn, our positive citizenship practices lie at the heart of building that strong business.

Perhaps a clear statement of intent is necessary: Old Mutual is committed to transformation and to corporate citizenship practices of the highest order.

That commitment has played out in various initiatives and programmes, and has motivated the methods applied in the compilation of the Old Mutual Corporate Citizenship Report 2003.

This record of our transformation is being scrutinised against the Global Reporting Initiative's (GRI) Guidelines. In addition, we report our comparative progress over three years via a consolidated Old Mutual Transformation Matrix that is derived from the Financial Sector Charter and our own Transformation Strategy.

Undoubtedly the most important new development in the year under review was the public unveiling of the Financial Sector Charter. The Charter provided a major leap forward for black economic empowerment.

Old Mutual's contribution to the Charter was significant. Peter Moyo, our deputy-managing director, in his capacity as chairman of the Life Offices Association spearheaded the negotiations both within the industry, and between the various parties to the Charter. I represented Old Mutual on the Life Offices Steering Committee, and Debra Marsden, our general manager corporate affairs was integrally involved in the creation and drafting of the Charter.

Old Mutual is a strong supporter of the Charter and is committed to furthering its principles and to attaining and even exceeding the targets encapsulated in the balanced scorecard. Moreover, we share our Government's view that economic growth, development and black economic empowerment are inseparable.

The Charter applies this view to the financial services industry.

During the year under review, we have continued to run programmes throughout Old Mutual to manage HIV/AIDS. We are determined to ensure that we play a proactive role in addressing this challenge. Accordingly, we appreciate the decision of the Government to roll out the provision of antiretroviral medication to those South Africans living with AIDS.

Old Mutual's HIV/AIDS Workplace Programmes have received recognition from the Global Coalition on HIV/AIDS for their focus on education, services made available to staff, and on staff involvement in the management of the disease.

In an expanded section of this Report, we describe our strong approach to governance. Our reasoning is clear: sustainable businesses employ strong financial and risk management practices and an uncompromising approach to corporate governance.

The Corporate Citizenship Report 2003 offers a snapshot of Old Mutual's transformation activities, of which we are rightly proud. Nevertheless, we are constantly aware of society's expectations of us as a corporate citizen.

We are consequently determined to continue our transformation, to continue our commitment to empowerment investment, employment equity, staff education and training and rural development initiatives.

We are equally committed to achieving these while remaining the leader in wealth creation and investment.

RODDY SPARKS
Managing Director 
Old Mutual South Africa