This South African company has been tipped to ‘change the world’
More companies are using the profit motive to help the planet and tackle social problems. Fortune Magazine has published its fourth annual list of what it believes is the best of these, including a South African company.
According to Fortune, the list identifies companies that “have had a positive social impact through activities that are part of their core business strategy”.
“We prioritize companies with annual revenues of $1 billion or more,” it said.
The 57 companies chosen for this year’s Change the World list hail from 19 countries, including one company from South Africa, namely Bidvest Group.
“This conglomerate with stakes in financial services and freight hauling is tackling South Africa’s youth unemployment rate (57%).
“In 2017, Bidvest spent $42 million on skills development programs, focusing on the motor industry, management, and executive training. Much of the help went to black communities, where joblessness is severe; nearly 400 students have found work so far,” Fortune said.
Bidvest Group
- Impact Segment: Economic Opportunity/Financial Inclusion
- Sector: Industrials
- Industry: Conglomerate
- CEO: Lindsay Peter Ralphs
- Employees: 117,705
- Revenues ($m) (Last Fiscal Year): $5,227
- Profits ($m) (Last Fiscal Year): $351
- Market Value ($m): $4,507
Fortune listed the following companies in the top 10, lead by Reliance Jio, and India based technology company which operates an LTE network, rolling out 4G. Pharma company Merck, is ranked second, while Bank of America is third. Bidvest is 33rd on the list.
Fortune writers and editors then evaluate and rank the companies by these four factors:
- Measurable social impact: “We consider the reach, nature, and durability of the company’s impact on one or more specific societal problems. This category receives extra weight.”
- Business results: “We consider the benefit the socially impactful work brings to the company. Profitability and contribution to shareholder value outweigh benefits to the company’s’ reputation.”
- Degree of innovation: “We consider how innovative the company’s effort is relative to that of others in its industry and whether other companies have followed its example.”
- Corporate Integration: “We consider how integral the initiative is to a company’s overall strategy, and how well that strategy is communicated through the ranks and elsewhere.”
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