Social and relationship capital

Broad-based black economic empowerment (BBBEE)

Hyprop recognises that integrating transformation into business practice is crucial for the sustainability of the company and South Africa. As such, we support the aims of the property transformation charter.

The social and ethics committee is responsible for monitoring progress in specific areas of the BBBEE scorecard. Management focuses on implementing business practices to contribute to the BBBEE score.

View our BBBEE certificate online


Corporate social investment

The company's corporate social investment programme (CSI) is managed through the Hyprop Foundation which ensures that we focus on addressing identified needs in communities around our properties, or those affected by our business operations.

The foundation's long-term vision is to ignite a culture of sustainable projects for communities that support our business and to encourage our people and stakeholders to be involved.

In 2017, the Hyprop Foundation invested R1,6 million in projects, primarily focused on education and community upliftment.

Funding

The foundation's budgets and projects are approved and monitored by the social and ethics committee. In line with the foundation's vision, funding is generated through a system of 'value shares' that are created by Hyprop employees and stakeholders (eg retail tenants) contributing their time and resources to identified initiatives, with the value of involvement converted to a funding value. The aim is to ignite a culture of involvement in the company and by stakeholders.

The foundation categorises these value shares as:

  Donation shares Projects may require immediate donations of cash and products. Every tin of food, book or blanket collected counts as a donation share. A percentage of theatre productions and holiday events at shopping centres is allocated to project funding
  Health shares Healthy living and activities are encouraged. Every kilometre walked, run or swum for a cause at specified events is rewarded with health shares
  Hour shares When a Hyprop employee participates in a project, each hour worked translates into a predetermined Rand value for the foundation
  Skills shares Individuals with specific skills donate their time to initiatives that enhance community upliftment and skills transfer

All initiatives undertaken by the foundation comply with its philosophy and code of good practice. In the prior period, the foundation revised its funding approach and now considers the measurable impact before funding is allocated. Employee engagement is encouraged and employees can nominate projects and beneficiaries.

Measuring the return

    Target 2017               Actual 2017           Actual 2016      
BBBEE certification
value
R000
  Hyprop Foundation budget
R000
  Return
value
(%)
  Funding
to be raised through
shares
R000
  BBBEE certification value
R000
  Hyprop Foundation actual
spend
R000
  Return
value
(%)
  BBBEE certification
value
R000
  Hyprop Foundation
actual
spend
R000
  Return
value
(%)
 
2 635   1 516   174   2 050   2 286   1 586   144   2 230   1 339   167  

Identifying beneficiaries

All potential beneficiary partners are screened by the foundation's management committee and Hyprop remains involved in each initiative. The committee reviews all funding proposals, and the decision to proceed is based on the proposal's alignment to our core business.

The foundation's key challenge remains the overwhelming need for assistance and the resulting volume of applications. The aid requested often exceeds available funds, while rejecting applications that do not comply with the foundation's requirements can prove difficult.