bold spirit - ArcelorMittal South Africa

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98 ArcelorMittal South Africa Annual Report 2010 Corporate governance appendix continued used to inform our Human Resources strategy for the future. To address these concerns, our areas of focus in the short term will cover recognition and reward, employee development and performance management. We discuss our human resources opportunities, challenges and responses more fully on page 58 of this report. NGOs, media and environmental interest groups ArcelorMittal Group’s global focus on increasing engagement with NGOs in 2009 coincided with our community interactions and liaison with environmental groups and the media. This is a crucial area in which we have been able to communicate our environmental strategy and ensure that this is in line with community priorities. We have a strategy in place that aims to assist NGOs to build capacity so that they can participate in environmental assessment and monitoring structures in the future. During the year we interacted with NGOs and the media directly and held a series of community forum meetings in Vanderbijlpark and Vereeniging which will be replicated in Saldanha and Newcastle. Key concerns included emissions, waste disposal, legacy rehabilitation projects and community health. Our engagement, environmental governance structures and responses are more fully discussed in the environmental section of the report on page 72. Investors Senior management interacts with investors on a regular basis, both oneon-one and at the quarterly results presentations. Investor concerns at present are focused on the shortterm high-profile issues of iron-ore supply, pricing and the B-BBEE transaction. Government and regulators As a responsible corporate citizen operating in a key strategic industry, we interact regularly with government at local and national levels, as well as with regulators across the country. Key stakeholders within this grouping include: • The Department of Environmental Affairs and Tourism • The Department of Water Affairs and Forestry • The Gauteng Department of Agriculture, Environment and Conservation • The Green Scorpions • The Department of Trade and Industry • The Department of Health • The Competition Commission and the Competition Tribunal • The South African Revenue Service The concerns raised by these stakeholders depend on their portfolios. Our interactions with them are described in the relevant sections of the report. Suppliers Building a sustainable supply chain is key to our future. We interact with our suppliers as a matter of course in the day-to-day operations and through our account management procedures. The most pressing issues raised by suppliers are getting fair access to business opportunities and appropriate payment terms. By operating in accordance with our code of conduct we believe we address these issues at an operational level. The most significant supplier issue this year has been the ongoing dispute with Kumba Iron Ore, which revolves
99 ArcelorMittal South Africa Annual Report 2010 around supply and pricing, as more fully discussed on page 37. While we are working to address this issue in a constructive and equitable manner, it is crucial for our future that we build a sustainable supply chain based on broadly predictable pricing. We also invest heavily in smaller suppliers where possible as more fully discussed in our socio-economic equity section on page 53. Customers Our customers look to us for a reliable supply of top-quality products at a fair price. We interact with them through day-to-day business activities and conduct an annual customer satisfaction survey. Every third year, we engage external reviewers to conduct this survey. This year’s external survey showed customers’ key concerns to be around efficient delivery, lead times in ordering and product quality. The business improvement projects discussed on page 14 are aimed at producing high-quality products at costs that are consistently in the lowest quartile of our international peers. We believe our approach to pricing, discussed on page 18, is transparent and fair. Interactions with our customers are more fully detailed in the section on product responsibility on page 87. While we believe that we are fair in all of our business conduct, we are the subject of several ongoing reviews by the competition authorities as discussed on page 23. Customer health and safety While the manufacture of steel is an extremely hazardous process, steel itself is not a hazardous material. While it is a product that has been around for many hundreds of years in its current form, there are new applications being thought of all the time, like light-steel frame applications in manufacturing. With a commodity such as steel, there is little requirement for assessments on the health and safety impacts on customers and there are no regulations or voluntary codes concerning health and safety impacts in South Africa. Information labeling At present there are no requirements for steel to carry information labeling relating to sustainability impacts in South Africa. Should such requirements come into force in the future we will assess them and implement them as appropriate. Marketing communications As our products are in most cases not sold directly to end-user consumers we are not affected by any laws, standards or voluntary codes related to marketing communications, including advertising, promotion and sponsorship. Customer privacy We do not collect customer information due to the nature of our business and we therefore do not expose customers to breaches of privacy or losses of customer data. Compliance While there were no significant fines for non-compliance with laws and regulations concerning the provision and use of products and services, the group’s activities are subject to ongoing scrutiny by the Competition Authority as referred to in more detail on page 23.
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