Engaging with our stakeholders
Strong and constructive stakeholder relationships built on trust, respect, transparency, constructive engagement and ethical business practices are important to Telkom.
Telkom commits to open communication and engagement with its stakeholders on diverse matters. We strive to engage with and respond to our stakeholders' concerns appropriately and timeously. We aim to create value for Telkom and society through active stakeholder engagement.
Our stakeholder engagement framework and policy guide how we manage our stakeholder engagements. The stakeholder management programme is structured to identify stakeholders, engage with them, and understand their challenges and expectations. Telkom considers these in its strategic and operational objectives and targets.
Our key stakeholder groups are consistent with FY2021 and we engaged them regularly through appropriate channels.
Stakeholder governance structure
Ultimate owner of shareholder management matters and responsible for managing response strategies.
Assists the Board in fulfilling its responsibilities by ensuring key stakeholder relationships are effectively managed.
Ensures commitment to effective stakeholder management.
Considers critical stakeholder matters and reviews and discusses the stakeholder management profile. Members are assigned to monitor specific stakeholder groups.
Implements the overall stakeholder engagement process through the approval of the stakeholder engagement framework and policy.
Monitoring and reporting
We assess the effectiveness of stakeholder engagements and relations through KPIs that are linked to value creation and relationship quality. We ensure this is measured accurately and consistently across the Group. These assessments allow management to channel time and effort to those relations that are considered relatively weak.
During the FY2022 we focused on our most material stakeholder concerns and interventions. This focus will continue in FY2023. The key concerns during the year were:
- Leadership transition (Chairperson’s report and Remco report)
- Telkom’s lack of revenue growth (GCEO’s report )
- Spectrum auction and legal action (GCEO’s report)
- Customer experience, including resolution of complaints and issues (productive capital)
- Value Unlock programme, including Swiftnet’s proposed transaction (GCEO’s report and Strategy)
Customers
Customers underpin our existence and drive our reputation and brand. They consume the products and services that generate our revenue. Customer requirements guide product or service development in terms of new trends.
Needs and expectations
- A relationship of trust and transparency
- Reliable, affordable and value-rich products and services and solutions that support cost management
- Timeous resolution of complaints and issues that reflects quality service, and responsive communication on relevant products and services
- Effortless transactions and secure information
The value Telkom creates
- Offering our customers the most compelling voice and data value propositions on the market, be it budget-friendly for individuals, or high-value data packages enabling businesses to stay connected while on the move
- Expanding our network footprint and increasing capacity to ensure a better network quality experience
- Selling space on our communications towers enables communications businesses to access their customers without incurring passive infrastructure development costs
- Engaging our expertise and experience to design, implement and manage our customers’ operational ICT environments through optimisation of cost and complexity, providing a launchpad for their digital transformation
- Investing in e-commerce marketplace platforms to assist small and medium businesses to grow, which supports local employment and economic growth
Telkom’s desired outcomes
- Affordable products and services and a compelling value offering
- High-quality and improved network coverage
- Good customer experience, customer retention and an increase in market share
Further reading
Customers’ needs and expectations are valuable to our strategy and to our business units’ strategic focus areas (telkom business units). Refer to the productive capital for more insight into how we performed in line with our strategy to meet customers’ needs and expectations.
Investor community
The investor community creates access to equity and debt markets. It drives demand for Telkom shares, thereby impacting our market capitalisation.
Needs and expectations
- Long-term sustainable return on investment
- Clearly articulated investment case
- Stabilised debt levels
- A relationship of trust and transparency and access to management
- Improved ESG disclosures
The value Telkom creates
Telkom provides a sustainable return on the investments of financial capital providers through dividend payments, share price appreciation, capital and interest payments on bonds and interest repayment on loans.
Telkom’s desired outcomes
- Access to equity and debt markets
- Investor confidence and a fair valuation of share price
- Positive credit rating
- Returns to shareholders
Further reading
This report aims to provide insight into our value creation and prospects. Refer to the GCEO's report , and the GCFO’s report for an overview of this year’s performance. Telkom’s strategy is explained on strategy review, and our approach to enhancing ESG disclosures on our Group ESG strategy.
Government and regulators
Government policies, legislation and regulators impact the cost of doing business and our ability to derive a reasonable return on investment. Regulators issue critical licences such as those necessary to use radio frequency spectrum. Non-compliance with legislation and regulations can result in penalties and fines.
Needs and expectations
- A relationship of trust and transparency
- Compliance
- Quality and affordable products and services across South Africa
- Effective competition in the market and confidence of capital providers in the market
- Licensing of spectrum and the WOAN
- Support provided to consumers during the COVID-19 pandemic
- Social impact
The value Telkom creates
- Contributing to the fiscus through financial contributions such as tax payments, licence fees and contributions to the Universal Service and Access Agency of South Africa
- Enabling government’s social and economic development mandate through investment in networks and infrastructure
- Shaping government policies through robust engagement with government, regulators and competition authorities, and participating in industry forums
- Supporting local procurement and employment and value-adding corporate social initiatives (refer to communities on social and relatiionship capital and suppliers and business partners)
Telkom’s desired outcomes
- Fair regulations and policies that encourage investment
- Effective competition
Further reading
Telkom continues to engage the various government authorities and regulators. Refer to the GCEO's report for more information about our approach to spectrum.
There is continued support for consumers during COVID-19, including specific promotions, zero-rating access to educational sites, etc.
Employees
Employees possess the intellectual capital required for all core and supporting business processes. They are our strategic partner in ensuring the Group’s sustainability through performance, culture and skills.
Needs and expectations
- A relationship of trust and transparency
- Job security and adequate development and career progression
- Fair remuneration and recognition and reward for performance
- A non-discriminatory, safe and flexible work environment
The value Telkom creates
- We provide employment and career development opportunities in a non-discriminatory environment, supported by an integrated, accessible and flexible Employee Wellness programme that extends to our employees’ families. Our remuneration includes various benefits to enhance value to our employees
- Learning and Development programmes are aimed at fostering employee engagement, broadening
our employees’ skill base and developing skills for future leadership
Telkom’s desired outcomes
- Productive, innovative and competent workforce
- Talent attraction and retention
- Ethical leadership
Further reading
Telkom has a comprehensive and strategic approach to managing and supporting its human capital. Refer to human capital for more information.
Organised labour
Organised labour supports sound labour practices and assists in communicating labour-related matters. It is a strategic partner in shared value between Telkom and our employees. This relationship can influence the Group’s strategic plans and operations through industrial action.
Needs and expectations
- A relationship of trust and transparency
- Proactive consultation on business changes that impact employees and collaboration on agreements
- A stable workforce
- Continuous commitment to drive skills development, especially considering new technologies and employment equity progress
- The impact of retrenchments and outsourcing agreements on employment and terms and conditions of employment
The value Telkom creates
- Employees are allowed to exercise their right to freedom of association
- Access to the workforce
- Support for shop stewards
- Facilitation of fee deduction
Telkom’s desired outcomes
- Constructive relationships
- Satisfactory solutions to disputes
Further reading
We maintain positive relationships with trade unions to ensure open and effective communication and negotiations. Refer to our human capital chapter for more information on organised labour.
Our value-adding partnerships with our suppliers and business partners allow us to deliver high-quality products and services to customers. Suppliers underpin our value chain and directly influence raw materials and other input costs. Business partners often represent Telkom to customers. Suppliers and business partners impact our ability to meet customers’ expectations.
Needs and expectations
- Increased two-way communication and resolving complaints and issues timeously
- Joint contractual obligation management
- Performance visibility and feedback
- Adherence to payment terms and effortless transactions
The value Telkom creates
- Generating revenue for suppliers and business partners, and strengthening their brand through their association with Telkom
- Product and service development as relevant and applicable
- Development initiatives provided to subcontractors
- Supporting local procurement and employment through enterprise and supplier development (ESD) initiatives
Telkom’s desired outcomes
- A sustainable supply chain
- Supporting local procurement and employment, and uplifting small and medium businesses
- Leading broad-based black economic empowerment (B-BBEE) status
- Joint market opportunities
Further reading
We have a procurement support desk and conduct supplier surveys to ensure we understand this stakeholder group. Refer to the social and relationship chapter for more information about how we support ESD through our FutureMakers unit and our B-BBEE credentials.
Communities
Our communities drive our social licence to operate. We have a responsibility to contribute to the socio-economic environment we Communities operate in. Civil society and forums can impact our operations.
Needs and expectations
- Affordable products and services
- Access to communication
- Meaningful education and technology impact
- Financial support, local job creation and local business opportunities
The value Telkom creates
- The nature of Telkom’s products and services allows it to add value to communities in a broad context
- Our infrastructure allows any person to transact through electronic banking, either from an ATM or a point of sale
- Providing affordable internet connectivity to individuals and small, medium, and micro-enterprises (SMMEs) supports local employment and economic growth. This is further enhanced by Skills Development and ESD programmes
- Telkom Foundation and other initiatives support communities, with a focus on education
Telkom’s desired outcomes
- Partnerships with communities and a good corporate citizen status
- Youth empowerment
- Enabling SMMEs
Further reading
FutureMakers, our ESD unit, and the Telkom Foundation respond to our community’s needs through their various activities. Refer to the social and relationship capital chapter for more information.
Media, opinion makers and influencers
Media, opinion makers and influencers drive reputation and brand perception.
Needs and expectations
- Access to information, including company performance, technological advances and South Africa's regulatory context
- Responsiveness
- A relationship of transparency and trust
- Educating the public
The value Telkom creates
We provide information and context on technical and operational developments and thought leadership on issues affecting our industry.
Telkom’s desired outcomes
Enhanced reputation and positive brand positioning of Telkom’s products and services.
