Community Development - 2011-06-22

B-BBEE and Transformation

Broad-Based Black Economic Empowerment (B-BBEE) is a coherent and comprehensive government programme to redress the imbalances of the past and promote access to opportunity, resulting in economic growth through inclusion. Transformation within Volkswagen of SA is driven by our mission to ensure:

• Transfer of assets, knowledge and management competency
• Active participation by black people in decision-making
• Skills development
• Socio-economic growth through inclusion

In our commitment to sustainable transformation, we have fully embraced the spirit and letter of the Codes of Good Practice, demonstrated by the fact that Volkswagen Group South Africa has achieved a Level 4 B-BBBEE rating in 2009.

Preferential Procurement and Purchasing

Volkswagen Group South Africa supports equality of opportunity and the continued development of our people, suppliers and Dealers to achieve globally competitive standards in quality, service and delivery. Corporate targets have been established for our Broad-Based Black Economic Empowerment Programme.

Proof of the effectiveness of Volkswagen Group South Africa’s programmes is that the company spent R2 billion with BBBEE suppliers in 2007. Volkswagen Group South Africa continues to participate in Joint German OEM Supplier Council activities, and negotiations with the Department of Trade and Industries (DTI) together with NAAMSA on the development of strategies and objectives.

Volkswagen of South Africa, as part of the multi-national business community, will continue to support BBBEE as a strategic initiative both nationally and in the local environment. Some other initiatives include:

• Identification of potential BBBEE suppliers 
• Providing coaching and assistance to BBBEE suppliers 
• Development of the current BBBEE supplier base 
• Encourage non-compliant suppliers to acquire a minimum of level 4 status 
• Introduce non-compliant companies to potential BBBEE partners 

BBBEE Franchised Dealerships

Volkswagen of South Africa is promoting black economic empowerment throughout its Dealer network.

Volkswagen of South Africa is actively supporting BBBEE Dealerships by channeling government and parastatal business through them. An early success is that all of Volkswagen of South Africa’s 13 new Commercial Vehicles Dealerships meet BBBEE requirements.

Public Private Partnerships

Uitenhage Dispatch Development Initiative

In March 2001, Volkswagen of South Africa, the Nelson Mandela Metro and the Eastern Cape Provincial Government, through the Eastern Cape Development Corporation (ECDC), established the Uitenhage Despatch Development Initiative (UDDI). The UDDI is an ambitious plan to upgrade the Uitenhage area to increase employment and create a world-class centre for both citizens and industry. This initiative was modelled on Volkswagen AG’s ‘Auto Vision’, a project set up with the Federal State of Lower Saxony and the Town Council of Wolfsburg to reduce unemployment.

The UDDI is now registered as a Section 21 company and has a full time project director, a small team of project managers and an office in Uitenhage.

Volkswagen Community Trust and National Flagship Initiatives

Volkswagen has a long history of community involvement and investment in local communities through its Corporate Social Investment activities. Corporate social giving is a powerful tool for doing good and effecting change, especially in the South African context where so many profound challenges divide the haves from the have-nots.  Volkswagen’s CSI initiatives assist in addressing some of these social ills which in the end also impact on the ability to do business.

A practical approach to CSI is based on sustainability and self-suffiency.  Our vision is to see our communities being independent and taking control of their future.

CSI activities are co-ordinated through the Volkswagen Community Trust based in the Nelson Mandela Metropolitan Municipality, on the doorstep of the company’s Uitenhage Plant as well as through its National Flagship projects.

Volkswagen invests in the following key focus areas :

• Education
• Youth Development
• Environment
• Sustainable Economic Development
• Health and Community Wellbeing

The Community Trust has managed CSI investments since 1987.  Having touched individuals lives through CSI investments, donations, partnerships and initiatives with more than 300 Non-Profit Organisations over the past two decades, the Volkswagen Community Trust supports programmes that cultivate the learning, social and creative skills needed by the broader community to empower themselves and their families economically and socially.

The company spends in excess of 1 percent of Net Profit After Tax each year on uplifting the community through different projects. By the end of 2010, Volkswagen had invested more than R400 million in training and skills development.

The Trust’s bursary programme is a priority investment area. Approximately 500 bursary recipients over the past five years have been studying towards qualifications in key skills demand areas such as Engineering, Finance, Commerce, Computer Studies, Science, Technology and Business Studies. More than 50 percent of these recipients are Black females.

Other Public Private Partnership initiatives include:

• Agriculture and Agri-Tourism
• Manufacturing/Clothing Production
• Business Against Crime

Working with the Community

As an integral member of its community Volkswagen of South Africa works with a wide range of local organisations to help raise the next generation of South Africans. The Volkswagen Community Trust has partnered with the following organisations to bring upliftment to the community:

• Betheli Christian Centre
• Edward Cook Feeding
• Sophamakama Community Based Development
• Khanya Development Foundation
• New Life Pregnancy Crisis Centre
• Masibambane African Action Group
• Jerusalem Ministries

Volkswagen of South Africa has also taken ’ownership’ of two cottages in two different children’s homes, namely SOS Children’s Village and Oosterland Youth.