2022 Sustainable Business Report

94 | SAFARICOM SUSTAINABLE BUSINESS REPORT 2022 KPI SUMMARY OUR MATERIAL TOPICS OUR BUSINESS OUR STAKEHOLDERS ASSESSING SUPPLIER PERFORMANCE The number of evaluations, which take place on a quarterly or bi-annual basis, has been steadily increasing over the past four years. We have instituted a process whereby we assist suppliers whose performance is below the required threshold (<80%) with customised performance improvement plans (PIP) and mentoring. Given our commitment to SDG 10: Reduced Inequalities , remuneration that at least aligns with the minimum wage, as well as the provision of appropriate personal protective equipment (PPE), are contract stipulations. We also conduct ongoing supplier compliance checks on human rights and labour compliance. In the period under review, we carried out onsite audits and ad-hoc checks on 20 high-risk contracts. Of these, 35% were found to be non-compliant and 86% of the non-compliance issues were closed by end of the financial year. We insist that all suppliers sign up to our Supplier Code of Conduct. The number of suppliers who had signed up to the Code of Ethics for Business in Kenya was 71% in FY22. Of the 29% flagged as having not signed up to the Code, 60% no longer have active engagements with Safaricom. SUPPLIER PERFORMANCE EVALUATION COVERAGE FY19 FY20 FY21 FY22 Supplier performance evaluations score (%) 80% 82.61 86 88.87 Number of evaluations performed 605 1 025 1 493 1 594 WOMEN IN BUSINESS Our target is to ensure women-owned businesses account for 10% of procurement spend. However, progress in achieving our Women in Business (WIB) targets remained slow. The number of women participating in tenders as a percentage of total tender participants declined from 71% to 55% year-on-year. Recognising that one of the key barriers is access to finance, we have established MOUs with ABSA, Citibank, Equity Bank. Kenya Commercial Bank and Safaricom Sacco for supply chain finance which benefits women suppliers. Women winners: Safaricom Supplier Recognition Awards We were very encouraged by the number of women winners in this year’s awards: • The winner in the Sales and Marketing category was Larger Than Life, a woman- owned business which demonstrated exceptional capabilities in providing high quality décor that brings event themes and products to life, while maintaining an impeccable record on health and safety with best practices clearly visible. • The first runner-up in the technology networks category Telenor Services Ltd, is a 100% Kenyan owned telecommunication Infrastructure construction company, with the majority shareholding comprising women. The company was recognised for the excellence of its base transceiver station rollout, ensuring continuous service availability and exceeding Safaricom’s expectations. • The first runner-up category in enterprise business was Fireside Group Limited, a women-owned and women-led organisation supplying Safaricom with fixed data customer deployment and support. There have been no escalations during their two years’ service due to their quick response and proficiency in resolving fixed data issues. • The Optimax Group Limited were second runner-up in the enterprise business category on their basis of their excellence in providing Safaricom with fixed data customer deployment and support. The company went the extra mile by educating customers on fixed services, thereby creating more awareness of Safaricom’s products and services, upselling products in the process. • The second runner-up in the Sales and Marketing category was Party Lounges. This women-owned, highly trained team provides bespoke, high-quality décor which brings the Safaricom brand to life in a meaningfully differentiated way. They were commended for the way their flexible operating model drives significant cost efficiencies.