https://ir2018.suninternational.com

Socio-economic development (SED) is integral to our sustainable business strategies. This allows us to create shared value, fulfil our licence conditions, and promote B-BBEE and corporate governance processes, while doing good. Our social licence to operate means we strive to uplift, empower and share value across the communities where our business units are located. We understand that community cohesion is critical to our future sustainability.

HIGHLIGHTS

  • Invested R23 673 966 million in SED projects across our focus areas: education, sports, and arts and culture
  • Improved the SED project governance process through policies, standard operating procedures and a new SED IFS to capture all SED projects and project budgets
  • Commenced the SED audit programme and continued to roll this out at various units across South Africa
  • Packed about 320 000 meals through our partnership with Rise Against Hunger South Africa, which impacted over 1 200 children’s lives by feeding them one nutritious meal, five times a week for one year
  • Continued to nurture and promote talented artists through our annual arts and culture donation
  • Appointed dedicated SED representatives at five of our big units and identified SED coordinators at the other units to assist with the SED strategy.

CHALLENGES

  • Ensuring the integration and alignment of social, health, wellness and environmental concerns in future SED projects to enhance Sun International’s social impact
  • Continuous and effective stakeholder engagement with our communities and employees
  • Ensuring corporate accountability through reporting and monitoring the group’s SED investments
  • Collecting and reporting on group CSI spend, including donations (in-kind, whether monetary or non-monetary), sponsorships and charitable givings.

FOCUS AREAS

Our focus for 2018 What we achieved   Self-assessment
Encouraging more students to register on Sun International’s hospitality curriculum development programme. Approximately 5 000 students have registered to date. The programme was successfully handed over to the Department of Education.   Achieved
Continuing to create value through the group’s SED focus areas – education, sports, and arts and culture. Various SED initiatives were successfully implemented across our focus areas.   Achieved
Implementing the new SED and community and stakeholder engagement strategic framework and policy.

Finalised and implemented the group community and stakeholder engagement policy. Developed a new SED and community stakeholder engagement framework that will be rolled out to all South Africa units in 2019.

  In progress
Improving the capturing of SED, CSI and licence conditions spend for reporting purposes.

Developed and implemented a new SED IFS to capture all SED projects and project budgets. This has improved overall project governance and accurately tracks the group’s 1% net profit after tax SED spend. A new process was identified for capturing and reporting CSI. This will be implemented at unit level going forward.

  In progress
Maintaining full points for SED as part of B-BBEE commitments. All business units achieved full points for SED in the 2018 Empowerdex audit.   Achieved

KEY PERFORMANCE INDICATORS

Sun International’s 1% NPAT spend for the period under review amounted to R23 673 966 million (2017: R16 million). This amount includes the SED spend for all 17 local units compared to 15 units reported on in the prior years (2017 SED spend did not include SunBet and SunSlots SED spend). In addition, the group invested in various CSI initiatives including donations, sponsorships and charitable givings.

1% NPAT     
(SED 2018)     
Rand     
1% NPAT
(SED 2017)
Rand
Boardwalk 580 000      338 768
Carousel 9 940      619 356
Carnival City 1 653 300      2 310 000
Flamingo 103 228      194 616
Golden Valley 213 981      182 867
GrandWest 5 746 862      4 642 000
Meropa 573 782      453 550
Sibaya 2 998 971      2 546 000
Sun City 1 333 363      1 348 034
Wild Coast Sun 849 000      680 158
Windmill 452 348      403 254
The Table Bay 439 837      293 209
Maslow Time Square 1 070 670      629 125
Maslow 38 110      338 602
Head Office 600 000      1 098 960
SunSlots 7 005 574      Not available
SunBet 5 000      Not available
TOTAL 23 673 966[1] 16 078 499
1 SED spend for 2018 includes SED spend for SunSlots and SunBet

Strategy

As a responsible corporate citizen, Sun International understands the necessity of empowering communities in the areas we operate. Therefore, SED is key to the group’s sustainable business strategy. We not only create economic value, we also aim to maximise the positive social impact on surrounding communities through creating shared value.

CSI was recently incorporated within the group’s SED portfolio. However, CSI is a unit-specific operational expense and is allocated to projects that are of interest to the group and its employees. CSI does not form part of the SED budget. Most of our CSI initiatives are funded by each business unit, and donations received from our guests and partners. Although the gaming boards recognise CSI spend, the B-BBEE scorecard only recognises the SED expenditure from NPAT. Our SED projects are allocated to initiatives that facilitate sustainable access to the economy for our beneficiaries. They are governed by our SED policy, which focuses on education, sport, and arts and culture. SED expenditure is based on our NPAT and is aligned with the B-BBEE Act requirements.

Social capital

Much of our social capital is accumulated through contributions from our business units and group initiatives close to the heart of our communities. We believe that the success of the communities in which we operate are paramount to the continued viability of our operations.

During 2018, we finalised our group SED strategy, which incorporates our SED framework. The strategy ensures all processes are streamlined across our South African business units. Our framework guides us in adhering to gaming licence conditions, data reporting and group targets. It guides applicable standards when identifying, approving and implementing SED projects, and provides a platform for projects that integrate environment and health and safety into the SED focus areas.

Governance process

Our SED governance process is depicted below. The SED portfolio comprises a dedicated group SED specialist, whose responsibilities include:

  • monitoring SED, group and unit projects, gaming legislation, regulations and standards
  • implementing and managing effective community engagement throughout the group.

This engagement ensures that Sun International’s stakeholder relationships offer shared value and improved opportunities.

SED reporting structure

During 2018, the group’s SED and community and stakeholder engagement policies were finalised and rolled out group-wide. Both policies align to the group’s sustainable business strategy, demonstrating our commitment to social upliftment and wealth creation for communities and stakeholders affected directly and indirectly by our operations. These policies also demonstrate our commitment to transparent and inclusive engagement.

To standardise SED processes group-wide, we implemented an SED standard operating procedure in 2018. This document provides a high-level overview of processes to follow when submitting information, requesting approvals and providing feedback on all SED initiatives to the group. It also ensures that all SED information is reported timeously, accurately and in line with the group’s SED strategy.

The group’s IFS, where SED projects are captured and reported on, gained traction during the year. In 2018, all business units captured their SED spend on the IFS. This system ensures constant monitoring of SED projects and project spend, which ensures accountability at each business unit and the that B-BBEE scores are accurately and timeously monitored to achieve maximum points.

Group SED and community and stakeholder engagement policy objectives

  • Making a positive, sustainable and measurable impact on communities
  • Investing and empowering communities through our core SED focus areas
  • Transparently and inclusively engaging with surrounding communities and stakeholders
  • Building and improving relationships with surrounding communities
  • Continuing to enhance the group’s caring corporate citizen reputation
  • Demonstrating responsible behaviour through strategic objectives, targets, good governance, targeted engagement and SED investment

SED project approval governance process

The group follows a robust process for identifying and governing SED approvals. This process ensures that the group continues to make a positive impact on one of our key and most vulnerable stakeholders — communities. All business units complete a project briefing template that highlights project background and sponsorship details. If projects do not align to our focus areas, the business unit’s general manager and SED officer complete a special project form that states the project purpose and reason for project consideration. These forms are reviewed and approved or declined by the SISCDT and the chief executive on an ongoing basis.

The SISCDT meets quarterly to review, approve, and monitor SED projects and budget spend. Management representatives from various functions within the group attend the SISCDT meetings to respond to any questions the trustees may have regarding the proposed projects. These functions include SED, sustainability, group finance, human resources, tax, public relations, and learning and development. All SED project payments are processed through the SISCDT to ensure the correct tax concessions are claimed by Sun International.

The following SED project approval process is followed:

Creating value

Social capital investments are essential to our long-term business sustainability. We create economic value in the communities we operate, and aim to maximise shared value. Return on investment is measured by the lasting positive impact and self-sustaining structure that all SED projects should have. Our people play an active role in investing their personal time in our social investment projects that resonate with them, from volunteering and mentoring bursary students, to providing business advice and training.

Value Creation

  • 70% of SED spend is allocated to group projects
  • 30% is allocated to property-specific projects
  • SED initiatives are focused on education, sports, and arts and culture projects
  • Effective stakeholder engagement is critical to the group, and continues to receive increased focus

Our SED project focus areas are education, sports, and arts and culture, with an emphasis on education. We believe education is critical in assisting poverty alleviation and ensuring economic stability. These focus areas were selected to unify the Sun International brand and meet the various gaming board licence conditions set out by the different gaming regulatory authorities. We strive to be known for innovative, inspired projects that positively impact our communities and afford them access to the economy. We also recognise the value in developing a sustainable model that connects our social investment to our core business strategy.

SED projects, as per the B-BBEE Codes, are funded by Sun International’s 1% NPAT and adhere to the various provincial gaming licence conditions. Our B-BBEE scorecard recognises only projects funded from NPAT, but not CSI initiatives. In addition to the NPAT SED spend, some provincial gaming boards specify an additional percentage of GGR to be allocated to SED initiatives.

CSI projects are a combination of business unit and guest donations. Through the white cards, winnings from self-excluded guests and various anonymous donations from our guests and partners, we continue to improve the lives of communities. As a group, and more specifically at business unit level, we also actively sponsor, donate and contribute to charities as part the SunWay culture.

As part of ongoing improvement, we will implement a formal system to track in-kind donations, which are distinguished as donations with and without rand value. In-kind donations with rand value include the donation of venues, accommodation, food, drinks and any other donations that could have been sold. These in-kind donations do not form part of the NPAT for calculating the group’s SED spend per the B-BBEE Codes. In-kind donations without rand value include donations of goods from which Sun International has already derived rand value and cannot be sold for the original value. For example, items such as discarded linens, furnishings and TVs would form part of this in-kind donation and would not be included in the NPAT for calculating the group’s SED spend per the B-BBEE Codes.

STAKEHOLDER ENGAGEMENT APPROACH

Stakeholder engagement is important in building and maintaining solid, transparent relationships in the areas we operate. Some of our stakeholders include communities and traditional leaders, provincial and national government, NGOs, NPOs, PBOs, foundations, and labour organisations. During 2018, the group’s engagement methodology was refreshed to ensure that all engagement and interventions are aligned with the group’s sustainability strategy and, more broadly, with provincial and national growth and development plans. This revised engagement methodology involves assessing various social aspects related to the wellbeing of the group’s communities, and their collective needs. Following these assessments, possible interventions are identified and discussed with the relevant stakeholders. It is anticipated that the new engagement methodology will be rolled out to all South African business units in 2019.

LOOKING AHEAD

  • Implementing our stakeholder engagement process and framework across all South African business units
  • Increasing the impact made on the ‘Adopt a Sustainable School’ initiative as part of our integrated sustainability approach
  • Maximising our employee volunteering initiatives
  • Effectively report on all CSI spend
  • Training dedicated SED managers and officers on our community engagement process
  • Training dedicated SED managers and officers as internal SED auditors
  • Conducting cross-unit SED audits at all local units in 2019

SED INITIATIVES

The case studies below detail some SED and CSI initiatives in which group-wide business units are involved.

EDUCATION

Sci-Com Foundation – a 10-year partnership with a 100% pass rate for 10 consecutive years
Sci-Com Foundation is an organisation that runs the Saturday School and Holiday Project to help disadvantaged learners improve their grade 10 to 12 results. Sci-Com targets learners who need additional tuition to excel in matric and go on to register at a tertiary institution. The foundation’s objective is to give the learners a solid grounding in mathematics and natural sciences at an early stage, and give exposure to science-related careers. In addition, learners participate in various team-building activities such as mentoring, attending a life science exploration camp, and receiving career advice to facilitate career options and encourage healthy lifestyle choices. About 89% of the learners who participated in this programme attained university entrance, and the number of distinctions averaged four per learner. Sci-Com also made a remarkable contribution to the academic performance of the Gauteng East District, which was among the top 20 highest-performing districts in 2018. Carnival City is the only funder of this organisation, and its resources are targeted at staff salaries and specific needs.

Grootvaly/Blesbokspruit – providing environmental education
Grootvaly/Blesbokspruit is the educational environmental facility at the Grootvaly Wetland Reserve. Through Carnival City’s annual contribution (R120 000) learners participate in field trips to the reserve where they learn about the ample bird life and various environmental aspects.

Carnival GROOTVALY

Sci com foundation

Sci com foundation

African Institute for Mathematical Science Schools Enrichment Centre (AIMSSEC) – inspiring future mathematicians
GrandWest engaged AIMSSEC to coordinate a tutoring project for Kulani High School in Langa in 2018 for school learners from grades 10 to 12 (about 76 learners in total). This was following a previously successful pilot project between GrandWest and AIMSSEC where masters’ students from AIMSSEC South Africa tutored school learners from grades 11 and 12. The pilot project resulted in an increased matric pass rate of 87% from 60%. AIMSSEC trained the masters’ students, provided training material for each mathematical session, arranged for transport for the learners and evaluated and provided project feedback. The masters’ students also received a stipend from AIMSSEC for the tutoring sessions. GrandWest invested R103 252 and provided food and beverages to the learners, tutors, lecturers and teachers who attended the sessions. Guest speakers were invited to provide motivational talks about the importance of mathematics; how to choose a career; and shared personal experiences on how they used mathematics in their careers. Positive feedback was received from several learners stating that they understood mathematics better. There was also an expression of appreciation from the tutors, lecturers and teachers who enjoyed giving back to the community and helping learners to be future mathematicians and future professionals that could help develop the African community.

Saxonsea Secondary School – providing on-the-job learnings in the hospitality industry and upgrading class rooms
Saxonsea High School was established in 1985 for several communities in the Western Cape. Despite many challenges facing this school, the learners have managed to achieve 80% or higher matric pass rates since 2012. GrandWest provided financial assistance (R300 000) to Saxonsea High School for upgrades to their consumer studies classroom. These upgrades include eight stoves, a fridge, a microwave, 15 workstations and some kitchen appliances. Refurbishments included painting, improved lighting, new cupboards, fixing kitchen sinks and taps and repairing the damaged floors and ceilings. GrandWest believes that education is a critical lever to achieve sustainable social upliftment. By creating education opportunities for the youth in our communities, GrandWest ensures a growing pool of talented and skilled people, which companies like Sun International can employ in the future.

A day in the life of a chef: GrandWest invited 10 learners from Saxonsea, who hope to become chefs, to participate in GrandWest’s SED career orientation programme. These learners were mentored by GrandWest chefs and experienced what it takes to work a hospitality environment so they can consider pursuing a career path in the hospitality industry.

AIMS Classes

AIMS Classes

Saxon sea launch

Saxon sea launch

Gojela High School – providing a classroom make-over for the hospitality class
Sun Meropa provided financial assistance (R300 000) to renovate and refurbish the Gojela High School hospitality classroom. These renovations and refurbishments included, among others, painting, flooring, plumbing, steelworks, extraction fan, and safety facilities and equipment.

Gojela school classroom

Gojela school classroom

Ekutheleni Primary School – helping to improve literacy skills
The Ekutheleni Primary School is in a disadvantaged community, where most parents are unemployed, and many learners are from child-headed households. Many cannot afford school fees. The school relies on donations and fundraising campaigns, and reciprocates by opening itself to the community on weekends and after school hours for church services and computer lessons. Sibaya provided financial assistance (R191 220) to employ English teachers for the learners’ to assist in developing a strong foundation for listening, speaking, reading and comprehension skills.

PROTEC – providing effective learner supplementary mathematics, science and technology education and career development opportunities
PROTEC was established in Soweto in 1982, with the aim of increasing the number of matriculants by preparing them for successful entry into the job market sustainably and effectively. The focus is on science, engineering and technology, which support the growth of technically skilled South Africans. In addition, PROTEC provides social and emotional support at both secondary and tertiary education levels to the point of successful integration into the job market. PROTEC has grown and is now a national organisation operating in all nine provinces. Sibaya’s financial resources (R100 000) assist in funding PROTEC’s 10-year learner excellence programme, which incorporates the school phase and the post-school phase. The school phase covers grades 10 to 12 and draws learners from rural and township schools to participate in its learner excellence programme (120 learners in total). The post-school phase prepares learners for successful placement in the work place and it offers learners support for seven years after completing grade 12.

The ELET – promoting literacy and numeracy education in the classroom
The ELET was established in 1984 to promote English language education in schools where it was a second language and the language of instruction. To date, these English teacher education projects are provided to five South African provinces (Eastern Cape, Free State, KwaZulu-Natal, Limpopo and Mpumalanga). English teaching material is published for use in primary and secondary schools. ELET works closely with various universities and holds a long-standing relationship local and national government. Sibaya invested R437 720 in the project to ensure the course is grounded in actual classroom practices and addressed teachers’ and learners’ language needs. These resources are used to fund workbooks and mathematics resource kits, aimed at improving numeracy and literacy levels.

Ekuthuleni ELEC

Flatfoot

Flatfoot

Lerome school classroom construction – building four classrooms
Lerome Secondary School caters for about 780 learners. To ensure learners have a safe schooling environment conducive to achieving expected academic results, Sun City is providing funding of R1.6 million to construct four classrooms. This investment should increase the probability for historically disadvantaged learners to be motivated to study.

Bio diversity

Golf academy

Hall of fame

St Mary’s School and Stephen Road Primary – uplifting children and empowering communities through education
With the high cost of living, high unemployment rate and financial pressure, many children in poorer communities wear ill-fitting, old shoes or none at all at school. This makes the children uncomfortable and can lead to various orthopedic problems. Many of these children also walk considerable distances to school every day. The Table Bay takes a special interest in Cape Town’s community life and decided to donate shoeboxes, individually decorated by The Table Bay employees, with a special message to make the gift more personal. The shoeboxes contain a pair of new school shoes and socks. This inspiring project gave 908 primary school children from these previously disadvantaged communities brand new school shoes at the beginning of the 2019 academic year.

Shoebox

Shoebox

Mamelodi East Pre-Vocational School – enriching learners by refurbishing and renovating hospitality classrooms
The Mamelodi East Pre-Vocational School was established to provide vocational studies to leaners of Mamelodi who have learning deficiencies. This school has achieved remarkable success with limited resources and has the following centres: hospitality/consumer, sewing, hairdressing, metal/welding and motor mechanics. Maslow Time Square invested R537 070 to refurbish each of these centres in three phases, starting in 2018.

Mamelodi school

Mamelodi prevocational school

Mamelodi prevocational school

Zondubuvila Cooperative – uplifting the community
Amadiba community owns the land on which Wild Coast Sun is located. They are important beneficiaries of our CSI initiatives as they enable Sun International to provide shared value and maintain its social and legal licence to operate. Wild Coast Sun provided financial capital (R85 000) to procure equipment and seeds to develop a vegetable garden that will supply food to local schools (for free) and to local suppliers for revenue to maintain the vegetable garden. The funds will be used to build a shelter from where the vegetables can be sold to the public to generate additional revenue.

Free Methodist School – constructing buildings for learners and teachers
The Free Methodist School needed a crèche, kitchen and toilets. Wild Coast Sun provided funding (R400 000) to meet these needs so the 250 learners could learn in a conducive environment that enables them to do their best in their studies. The handover took place in February 2019.

Maqongwana Senior Secondary School – helping a girl-child to go to school
Wild Coast Sun donated sanitary towels to Maqongwana Senior Secondary School. Previously, some girls would miss class during their monthly menstrual cycle as their parents could not afford to buy them sanitary products. This initiative enabled girls to attend classes. Pupils, teachers and community members were all present to witness this jubilant day.

Marhwatini community – empowering the community with entrepreneurial skills and alleviating poverty
As part of community upliftment, the Wild Coast Sun identified an NGO (Zondubuvila Cooperative) that will be supported for a three-year period to start and maintain a vegetable garden of five hectares, following which it should be self-sustaining. The support includes preparing land for ploughing, fencing, providing water pumps, seedlings, training and uniforms. This project will also enable the community to generate revenue to sustain their livelihood.

Wild coast

Wild coast

Wild coast

Lethabo Day Care Centre – assisting with obtaining a certificate of acceptability
Lethabo Day Care Centre was established in 1998 and provides early childhood development for almost 70 children aged from new-born to six years. The centre focuses on developing the children physically, emotionally, mentally and socially, as well as providing balanced meals. The centre requires a certificate of acceptability from the Department of Health to continue operating. It approached Sun Windmill to assist with funding (R76 845) to obtain the necessary equipment to upgrade the kitchen and fence to obtain their certificate. The handover was completed at the end of 2018, and Windmill employees donated toys and supplied food hampers.

Enviro Quiz
Sun Windmill has been a sponsor of the annual Enviro Quiz since 2009 and is part of the judging panel. This Enviro Quiz is a well-established environmental education programme that establishes environmental projects at schools in the Free State. The programme’s purpose is to increase environmental awareness at schools. Various themes are used each year to educate learners on specific topics. The 2018 theme was waste – previous themes included energy reduction, vegetable gardens and water. Over the years, there has been a positive impact on many schools in creating a love for the environment and playing a role in creating a sustainable future for all.

Lethabo day care project

Enviromental project

SPORTS

PGM Golf Academy – developing aspiring golfers and caddies
Sun International hosts the iconic Nedbank Golf Challenge (NGC) each year, which impacts the local community beyond the event week. The Sun City caddie, Mr Peter Mazibuko, has always had a passion for golf and helping local children in the North West, where Sun City is located. Peter arranges for the aspiring golfers to attend the NGC and his dream is to get some of the children competing in the under-12 and under-15 age group amateur tournaments at Sun City.

Sun International partners with Golf Operations and the North West Union to support this academy, which aims to provide sporting and job opportunities (caddies and/or pro golfers) to the youth. The academy has benefited about 25 children from the North West.

Sun International supports Peter’s efforts by transporting the children to our resorts and back, offering them access to the Lost City Golf Club’s driving range and supplying food packs. Sun International is aligning its CSI with the academy to benefit from the NGC charity funds raised, to support golf development in the North West at local schools.

Hall of Fame – honouring South African achievers
Sun City partnered with The South African Hall of Fame, whereby The Hall of Fame exhibition is located rent-free for a 10-year period. This exhibition affords many South Africans the opportunity to learn about various South African achievers celebrated by The Hall of Fame. The entry fee of R100 for guests staying at Sun City who visit the exhibition is discounted to zero by Sun City, as a direct service offering to the community. This allows The Hall of Fame to host numerous groups and schools from rural and informal areas, and more than 20 000 learners have been hosted to date.

ARTS AND CULTURE

FLATFOOT Dance Company – changing the world, one person at a time
The FLATFOOT Dance Company has an established track record of dance education and development in KwaZulu-Natal. About 1 000 children and youth participate at the organisation. Previous financial resources from Sibaya enabled the FLATFOOT to establish a Waterloo Dance programme that has been active for four year and has about 42 participants, as well as an ADD programme with 15 participants, catering for youth aged between 17 and 21 years. In 2017, two dancers from the ADD programme were afforded a 12-month work placement mentorship with a professional company where they worked side-by-side with professional dancers full-time. In 2018, Sibaya provided further funding (R100 000) in support of FLATFOOT’s new Junior ADD pilot programme which aims to promote the development of township female children towards a sustainable arts career. Presently 12 female dances (aged nine to 13 years) participate in the pilot programme.

Moses Kotane Secondary School – equipping learners with life skills orientation for making future life choices
This biodiversity, arts and culture programme provides learners with life skills critical for making choices in their lives. The programme provides a platform for recreation, leisure and entertainment, which many participants cannot afford. 310 learners were transported from their respective schools to Sun City to participate in a tour which complements the school curriculum in social science and arts and culture. Learners are taken on game drives, and provided leisure and entertainment. The learners enjoyed the Valley of Waves, after which they were taken back to their schools. Sun City’s financial support (R66 532) embedded a culture of life-long learning and pursuit of career path, and these skills can be utilised in Sun International’s workplace.

ACT – supporting and awarding talented South Africa artists
Sun International is a founding trustee of the ACT – South Africa’s premier independent arts and culture funding and development agency. Cofounded by Sun International and Nedbank in 1994, the trust supports, nurtures and promotes artists by providing bursaries for tertiary education and mentorship programmes. The ACT’s vision is to establish a self-sustaining perpetual fund for the development of arts, culture and heritage in South Africa. Its mission is to attract and provide funding to achieve the trust’s vision. The trust activities include development, scholarship and building blocks programme, an arts and culture conference and the annual ACT awards. Each of the founding trustees contributed R1 million to minimise dependence on annual grants. Over the past 20 years, the ACT disbursed more than R20 million to arts and culture projects across South Africa.

CSI

Carousel visited Wisani Old Age Home and Moepathutse Children’s Home and donated much-needed linen to make the residents’ lives easier.