Tiger Brands: Integrated Annual Report 2018

Business overview

Our material matters

 

Determining materiality

Using the prior year's issues and the group risk register as a starting point, individual or group sessions were held with exco members. Their views were combined with issues arising from a detailed assessment of our operating environment and feedback from all stakeholder engagements, and then clustered into logical themes, in line with the group's strategy, to provide a concise representation of the issues Tiger Brands faces in this report. Where relevant, further details appear in our online sustainability report.

Strategic objective		Topic		Issue		Related risk		Our response
DRIVE GROWTH Clear strategies to win in each category, channel and customer		A weak macro-economic environment		Increased regulation Higher reliance on the private sector to deliver national infrastructure and services Exchange rate volatility High unemployment in a low-growth environment affects consumers’ propensity to spend Increase in value added tax Record fuel prices impacting consumers’ disposable income Increasingly competitive landscape among customers (including changing store formats and private label) and manufacturer restraint on pricing in an attempt to minimise consumer inflation and maximise volumes Low innovation rate inhibiting our ability to address unmet consumer needs and emerging trends; while anticipating potential legislation/regulation		Operating environment Failure to successfully execute business transformation programmes Inability to react to intensifying competition Failure to respond to changing consumer preferences		Our markets and operating environment Chief executive officer’s review Our business model Our competitive advantages and market position Operational review
BE EFFICIENT Efficiency in all we do, cost effective and an advantaged integrated supply chain		Business continuity		Security of natural resources and raw materials Exposure to cyber threat Disruptive technologies Compliance with new laws and regulations Unstable social environment » Strikes » Xenophobia Political environment and impact on labour » Unstable working environment » Infighting on shop floor between unions Fragmented union representation		Cybercrime and information security Business continuity vulnerabilities Data and information risk Regulatory non-compliance Fraud, theft, corruption and crime Ageing infrastructure Industrial action		Chief executive officer’s review Risk management
GREAT PEOPLE A great place to work and winning culture that energises consumerobsessed agile people		Human resources and skills		Safety Security Attraction Developing and retaining critical skills; developing core capabilities development; skills pipeline; employee relations; social impact Impact of automation on jobs BBBEE compliance		Threats to employee security Inability to attract and retain critical skills Occupational health and safety		Remuneration report
SUSTAINABLE FUTURE Sustainable environment, communities and company		Food security safety and quality; security of supply		Listeria Maintaining superior quality Increased regulation Uncertain policy on land expropriation BBBEE compliance Climate change Drought in South Africa Changes in legislation Carbon tax Our response to climate-change challenges » Effect on sourcing raw materials Waste Act » Food waste legislation and initiatives		Food safety and product quality Inability to be cost competitive Environmental risks Occupational health and safety		Supplementary sustainability report