An important aspect of stakeholder values creation remains how the business interacts with its stakeholders and Tongaat Hulett recognises the need to actively engage with those who affect or are affected by its operations. The business interfaces regularly, in an open and honest manner with a range of Governments, private farmers and their representative bodies, communities, employees and people impacted by company operations or expansion activities. Through meaningful discussion, the business is able to understand and address potential impacts and concerns about operations and create opportunities that are aligned with the interest of all parties. Through a structured and evolving approach to stakeholder engagement and using internal knowledge and expertise on stakeholder management the business is able to prioritise the most important issues requiring management attention and focus. The feedback that Tongaat Hulett sought from a range of stakeholders, during 2011/12 followed the release of its 2011 Integrated Annual Report, has been integrated into this report.

A broad overview of key stakeholders and the general approach to interfacing with each of them is briefly presented below:

Private farmers of sugarcane in the various countries of operation who supply the business’s cane requirements want to ensure that in addition to maximising the price that they receive for the supply of their product, that Tongaat Hulett is able to provide the necessary support to ensure their long term sustainability. This support includes the sourcing of key raw materials, including good quality seed cane and fertilizer at competitive prices, the provision of agronomy support to small-scale private farmers and schemes to assist farmers in dealing with the backlog in root replacement. In all the countries of operation, private farmers are organised according to their logistical areas of operation, and as the business continues to increase the level and quality of its of its interactions, further growth and development opportunities for both Tongaat Hulett this stakeholder grouping are being identified.

Government authorities and regulators expectations are that the business operates in accordance with all local, provincial and national laws and regulations. Government policies establish the general legal framework for society and define the general business environment for Tongaat Hulett. It is the company’s responsibility to provide adequate resources to ensure that its facilities operate in accordance with all applicable laws and regulations. The company works to establish and maintain constructive relationships with Governments of the countries within which it operates. It seeks to identify the impacts of government policy on its growth plans, as well as identifying how its strategy can support the growth strategies of these countries thereby ensuring alignment with the ongoing development of both the people and populations that surround the business operations of Tongaat Hulett.

Local communities are engaged in order to develop a broader understanding of their concerns, align priorities and allocate corporate social investment in areas where there will be maximum impact. Community related programmes include enterprise development, socio-economic development, training, employment, environment protection, cultural heritage and support for recreation through community trusts.

Shareholders, investors and analysts expectations are to ensure sustainable and profitable long-term growth is achieved through ethical and responsible business practices. It is the company’s responsibility to clearly and openly communicate its business strategy and financial results. Communication takes place through meetings with management, telephonic conversations, internet and email. A well-entrenched investor relations team exists with a focus on communicating with all stakeholders and ensuring adherence to corporate disclosure requirements. Annual and interim results presentations are held in Johannesburg, Cape Town and Durban and roadshows are undertaken in the United Kingdom and North America in order to explain the company’s performance and prospects. Engagement with the media takes place on a formal as well as informal basis with media briefings, press releases, SENS announcements and publishing of relevant information on the Tongaat Hulett website. Shareholders are also encouraged to attend the company’s Annual General Meeting. The company publishes highlights of its annual and interim results in the key South African daily newspapers.

Employees are interested in a stable employment relationship and a good working environment that guarantees health, safety, fairness and equal opportunity. It is the company’s responsibility to ensure ethical and responsible management procedures are in place to protect employees, support diversity and reward performance. It is therefore important to ensure regular collaboration on these topics. A variety of internal media, such as the intranet, internal newsletters and briefings and the company regularly interacts with employees, striving to achieve a high level of engagement. The bi-annual results presentations are made available to staff by invitation and also through the company intranet and internet. Specifically with regard to sustainability matters, during 2012 a roadshow was conducted in all operating facilities in order to build awareness and the company will report on progress in this regard in its next report.

Customers, suppliers and service providers’ expectations are to grow their business by supplying quality products that are desired by their customers. It is the company’s responsibility to continuously improve the quality, taste and innovative features of its products at a reasonable price. Tongaat Hulett is in regular contact with its largest customers to ensure exceptional customer service levels. It seeks to work together with these stakeholders on areas of mutual concern. We plan to engage with suppliers in responsible sourcing standards through regular procurement processes.

Managers in all company operations interact with trade unions on relevant employment issues with collective bargaining taking place on a need to have basis. The sugar and starch operations are the most labour intensive businesses and structures are in place to engage with various unions.