ArcelorMittal South Africa 2007 Sustainability Report Page 42 An historical legacy of wilful neglect of entire communities means South Africa faces substantial social challenges. Society and community as stakeholders Poverty, unemployment, lack of access to basic services and poor education standards are among the many daily hurdles that still characterise the lives of thousands of South Africans. The security, sustainability and economic health of the country will be determined by how well we as a nation are able to collectively find workable solutions to these problems. Big businesses, such as ArcelorMittal South Africa, are key stakeholders in this concern and together with government, NGOs and civil society, have a vitally important role to play in helping to uplift historically disadvantaged communities to the benefit of all. Doing so is not only the right thing to do, but also makes good business sense. Thriving communities that have educated, skilled and employable people are better able to serve the needs of businesses such as ArcelorMittal South Africa. Alignment with national imperatives The company strongly believes that, in order for this social transformation to be meaningful and have relevant impact in the communities where the greatest need lies, social development efforts need to be co-ordinated to work towards common goals. As such, ArcelorMittal South Africa has aligned its social development goals with those of government. The company’s focus areas seek to address common national development challenges even though its geographic reach extends only to the communities in the company’s areas of operation, namely Vanderbijlpark, Vereeniging, Newcastle and Saldanha. The needs of our stakeholders People living in these areas are directly affected by the business of ArcelorMittal South Africa. Their homes, schools, hospitals and neighbourhoods are located close to the company’s plants, which are often the main source of employment in the area. These communities share the same key challenges as many impoverished groups throughout the country. The company recognises the importance of understanding who its stakeholders are within each of its communities and what their specific challenges are. By engaging with municipalities and local government, ArcelorMittal South Africa has been able to identify the most pressing needs in each community. Although each geographic area is different, communities face similar challenges. A synopsis of each community has highlighted the most common as being poor education facilities and underperformance in maths and science, general unemployment, lack of housing and a high rate of HIV/Aids infection. Vanderbijlpark and Vereeniging The 3,8 million people who reside in Vanderbijlpark and Vereeniging are divided among more affluent suburbs and historically disadvantaged townships. The townships represent the areas of greatest need and it is on these that ArcelorMittal South Africa necessarily focuses most of its CSI projects. They include Boipatong, Bophelong, Evaton, Loch Vaal, Sebokeng, Sharpeville and Tshepiso in Vanderbijlpark, and Meyerton, Eikenhof, Walkerville, Henley-on-Klip, Randvaal, Risiville, Suikerbosrand, Sicero, Roshnee, Rust-Ter-Vaal and Orange Farm in Vereeniging. A staggering 46,1% of the economically active people living in these communities are unemployed, a problem which is further compounded by the poor educational facilities and lack of properly skilled educators at schools which serve the children of this community. Without proper education, the future generations in Vereeniging and Vanderbijlpark will fall victim to the same cycle of poverty that characterises the lives of their parents and grandparents. For this reason, ArcelorMittal South Africa has placed a strong emphasis on uplifting educational facilities, educator capacity and learner performance in these communities. Newcastle Situated in KwaZulu-Natal, Newcastle is home to approximately 900 000 people, the most disadvantaged of whom reside in Madadeni, Blaubosch, Osizweni, Utrecht and Paulpietersburg. The KwaZulu-Natal province has experienced the ravages of HIV/Aids more severely than any other area