RAYMOND ACKERMAN Chairman of Pick ‘n Pay

Highly regarded retailer Pick ‘n Pay has long been a champion of social development, as highlighted by the company’s record of community reinvestment

One of the most highly rated retailers on the Johannesburg Stock Exchange, Pick ‘n Pay also has the best performing share price of any blue-chip company on the exchange; an investment of R1,000 in the company in 1970 would be worth around R1 million today. The family controlled business is built on two fundamental principles: an unwavering belief in consumer sovereignty, and the application of the “four legs of the table” principle – a simple analogy whereby the business is a tabletop equally supported by strong administration, merchandise, promotion, social responsibility and people.

Concentrating on food, clothing and general merchandise, the group operates through three divisions: retail, group enterprises, and Franklins Australia, where its franchising strategy is flourishing. Underpinning its bluest of blue-chip performance are the cornerstone principles applied to company operations since its foundation by Chairman Raymond Ackerman. He attributes the company’s growth to its philosophy: the more you give, the more you get back.

Pick ‘n Pay was one of the first companies in South Africa to make a strong commitment to Corporate Social Responsibility (CSR) and has always given approximately 7 percent of post-tax profits back to South Africa in sponsorships and CSR initiatives. Mr. Ackerman affirms, “CSR is embedded in the DNA of the company.” Much more than just public relations sound bites, the principle infuses everything the company does, along with the importance of “doing the right thing”. Back in the apartheid era, Mr. Ackerman championed the right of black South Africans to own property in urban areas, defied the government by discounting petrol at Pick ‘n Pay hypermarkets, and voiced strong opposition to price regulation.

The maxim “doing good is good business” underscores Pick ‘n Pay’s social investment initiatives. The group has spearheaded employment equity and black economic empowerment programs, which have provided opportunities amongst young urban populations and aided economic prosperity.

‘Corporate Social Responsibility is embedded in the DNA of the company’

In 2000, the Ackerman Pick ‘n Pay Foundation was established and has to date committed more than R12 million ($1.67 million) to sustainable community development projects. The initiative focuses on making a measurable contribution to sustainable development by enhancing and developing skills, and supporting projects that encourage entrepreneurship, self-reliance and provide employment. Funds are not only distributed centrally from regional offices, but also from individual stores, which ensures they remain in touch with the communities that support them.

Many companies focus on a particular need or social concern, but Pick ‘n Pay adopts a much wider approach. Hundreds of charities and development projects benefit every year in arts and culture, education and literacy, community development and job creation, as well as invaluable healthcare schemes. Broad-based economic empowerment initiatives supported by the foundation include the Fort Hare Agricultural Project and Masiphathisane Leather Works Manufacturing Youth Project in Eastern Cape, the Bethlehem Farmers Trust and Jala Peo Trust in Free State, KM Cosmetics and the Creative Inner City Initiative in Gauteng, and also the Ncemane Sakhisizwe Construction rural housing project and the Coastal Cashews enterprise in KwaZulu-Natal.

Furthermore, the Raymond Ackerman Academy of Entrepreneurial Development was launched in February 2005 at the University of Cape Town’s Graduate School of Business. This aims to develop entrepreneurship by offering people from disadvantaged communities that would not ordinarily gain access to an institution of such stature a chance to enter the university environment and gain the skills and motivation required to start their own business ventures. The 2006 program has found support from the City of Cape Town in the form of a student bursary fund, and there are plans to extend the program to the other eight provinces.