Annual Report - JD Group

Fraud and illegal acts
JD Group does not engage in or accept or condone the engaging in
of any illegal acts in the conduct of its business. The directors’ policy
is to actively pursue and prosecute the perpetrators of fraudulent or
other illegal activities, should they become aware of any such acts.
Black economic empowerment (“BEE”)
The Group actively participates in initiatives directed at the
empowerment of previously disadvantaged groups in the South
African community.
JD Group is fully cognisant of the Black Economic Empowerment
Act, 2003 and further awaits the regulations augmenting the Act
which are due to be published in the short term. To this end the
Group has actively engaged an external service provider to
interrogate the best of breed strategies in the market place and to
make formal recommendations with regard to the Group’s
approach to BEE.
Insider trading
No employee may deal, directly or indirectly, in JD Group shares on
the basis of unpublished price sensitive information regarding
the business or affairs of the Group. No director or executive
who participates in the JD Group share incentive schemes may
trade in JD Group shares during closed periods as defined in
the JSE Securities Exchange South Africa Listing Requirements.
Going concern
The directors report that, after making enquiries, they have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. For
this reason, the Group continues to adopt the going concern basis
in preparing the annual financial statements.
Accountability review
Performance measures are reported in accordance with triple
bottom line methodology in economic, environmental and social
categories. Social responsibility initiatives are discussed in detail on
page 23 of book 2.
Economic impacts
Corporate objective
To be a desired investment by all investors as a result of above
average performance and consistent growth.
The cornerstone of our business is to satisfy the consumer in the
pursuit of consistent, acceptable profit growth. We create wealth
for the benefit of all stakeholders. Our international expansion is
intended to continue in Poland. The Abra business is now one of
the largest furniture retailers in Poland. Revenues are increasing
and levels of customer satisfaction remain high. Employee
numbers continue to grow.
JD companies spent R6,4 billion during the year on inventory
purchases and services from suppliers. Our merchandise
executives are focused on securing cost effective sourcing that
guarantees consistent quality and service. Our first concern in
supplier relationships is to meet legal and contractual obligations,
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acknowledging that for many suppliers, their greatest need is to
be paid on time. Each chain and corporate service department
agrees fair payment terms and strives to meet them.
JD Group places the highest priority on maintaining constructive
relationships with governments at local and national levels and
with regulatory agencies.
Chains and corporate service departments must comply with all
laws and seek constructive engagements with public authorities
where necessary. As part of the accountability process, each chain
and corporate service department is required to report all
incidences of prosecutions or fines, major ongoing disputes and
any formal investigations.
Environmental impacts
Corporate objective
To manage the environmental impacts of our activities by
complying with all relevant safety, health and environmental
legislation and by enhancing awareness amongst our employees.
In relation to the environment, the Group aims at all times to
comply with all relevant legal obligations and regulations
concerning the environment and to adopt an all encompassing
approach to environmental protection measures with the object of
achieving continuous improvements.
The Group strives to keep waste materials to a minimum and to
reduce, recycle and, where necessary, dispose of waste by the
safest and most responsible means available to reduce
environmental impact.
The Group’s entire delivery fleet uses unleaded fuel to reduce the
emission of carbon dioxide. Daily vehicle inspections are
undertaken to ensure that fuel and oil leakages are kept to a
minimum. Where deliveries are outsourced, our service providers
have to comply with strict criteria in terms of minimising fuel and
oil wastage.
The need for minimising water and electricity consumption is
actively encouraged at all workplaces.
The Group’s internal audit department examines compliance with
key features of existing environmental, health and safety
legislation and reviews performance against agreed targets.
The Braamfontein Regeneration Project is a key factor in driving
inner city growth and renewal in Johannesburg. JD Group whose
corporate head office is situated in Braamfontein, together with
other major corporates, has been an integral part of this process,
as evidenced by its investment in purchasing JD House,
refurbishments thereto and the building of a parkade. It is an
active participant in the corporate precinct public environment
upgrade, which will not only benefit some 800 corporate office
employees, business partners, associates and visitors but also the
community at large. JD Group has made a financial contribution
towards the capital costs of the regeneration of Braamfontein and
also contributes towards operating costs.