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SUCCESSION MANAGEMENT

Adcock Ingram is using a systematic integrated approach to maintain

leadership continuity within the business by ensuring the growth and

development of potential successors. ‘It is not about people... it is about

having the right talent, in the right place, at the right time’.

Succession management provides a framework to align leadership

with the strategic needs of the business. It also provides ongoing job

analysis and opportunity for key talent to adjust roles based on changing

business conditions and strategic initiatives.

To date the following succession benefits have been realised:

• Promotion of key talent into strategic roles;

• Improvement of transformation profile with the progression of black

successors;

• Implementation of leadership development programmes for key

talent and potential successors;

• Implementation of executive coaching for potential successors; and

• Building a diverse talent pool which mirrors the customers and

communities in which we operate.

EMPLOYEE WELLNESS

To be able to provide excellent service and achieve business goals,

the emotional and psychological well-being of employees needs

to be a prime goal. According to the Director of the Department

of Public Health and Environment (WHO), ‘the wealth of business

depends on the health of workers’. The Employee Assistance

Programme is well suited to provide health counselling as well as

resources/tools required to achieve an optimal state of well-being

for employees. It is in this context that ICAS has been engaged to

provide employee wellness programme services to Adcock Ingram

as a partner in behavioural risk management.

HIV/AIDS PROGRAMME

Employees and their dependents, who are HIV positive, can enrol

in the chronic disease management programme that is offered

to employees through a service provider, Universal Care. This is

open to all employees whether or not they are medical scheme

members. Currently there are 23 participants on this voluntary

support programme.

HEALTH AND SAFETY

Facilities

The annual risk control standards grading audits were conducted

by Marsh (Pty) Ltd at all Adcock Ingram sites, excluding Ghana.

In conducting these audits, the various sites were assessed in

terms of preparedness and their performance with regard to risk

control organisation, fire defence, security, emergency planning,

occupational health and safety and motor fleet. The lowest and

highest ratings were 97% and 99% respectively. Shortcomings were

minor and were addressed.

The environmental risk control audit conducted by Marsh (Pty)

Ltd assesses Adcock Ingram’s sites in regard to their performance

in environmental leadership, environmental management

implementation, operational management, monitoring and review

and specific operations. This audit was conducted during the

financial year at the manufacturing site in Bangalore, India, the

Research and Development site at Aeroton and the distribution

outlet in Cape Town. The lowest and highest ratings were 95% and

99% respectively.

Employees

There was a marked reduction in the number of lost time injuries,

showing an improvement over the previous year.

Following are the statistics for the number of lost time injuries

(injuries on duty leading to at least one lost day) for the year:

Aeroton Wadeville Clayville Midrand Durban Total

2016

7

0

3

2

0

12

2015

19

2

9

2

1

33

LTIFR 2016 0.80

0

0.56 0.26

0 0.20

LTIFR 2015 2.18 0.55

1.95 0.32 0.85 0.73

LTIFR = lost time injury frequency rate

No fatalities (injuries on duty resulting in death) occurred during the

current or prior year. There were 81 medical cases (injury on duty

leading to medical treatment without losing a day’s work) in the

current year compared to 68 medical cases in the prior year.

ENVIRONMENT

As a responsible citizen and a healthcare company, the protection

of the environment is a key consideration for Adcock Ingram which

is committed to the sustainable management and conservation of

the environment. Throughout its operations the Company focuses

on providing a quality service that creates a safe and healthy

workplace for employees while minimising the potential impact on

the environment.

Key areas of focus are:

• water management;

• electricity consumption;

• carbon emissions; and

• stakeholder education and awareness.

Increased factory throughput automatically results in higher usage

of water and electricity. Despite this, good progress has been made

with the replacement of fluorescent lights with low energy lights in

the manufacturing facilities; the installation of day/night sensors; the

charging of forklifts outside peak demand times and the shutdown

of chillers and cooling towers during weekends.

Progress was also made with the conservation of water, with the

repair of leaks, ongoing recycling of water and increasing borehole

utilisation. Careful production planning, with longer runs and

therefore less need for ‘Cleaning in Place’, has also made a significant

contribution to more efficient water usage.

OUR PERFORMANCE

(continued)

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Integrated Report 2016