According to Kevin Welman, MD of FHSA, the deal embodies the principles of the agency: “Fleishman-Hillard's partnership with CIDA Investment Trust confirms that we are a proud and committed South African business, something our staff, clients and partners already know. Participating in South Africa's economic transformation is as much a matter of opportunity as it is of duty, and we believe that we are now better positioned than ever to do business, create jobs and empower South Africans.
“This agreement with CIDA Investment Trust extends beyond funding for non-profit educational activities for individuals from historically disadvantaged backgrounds, it deepens Fleishman-Hillard's commitment to add value in areas of our core competencies in developing marketing curriculum, lecturing PR-based modules and, finally, having an ongoing source for securing talent.”
According to the terms of the agreement, Fleishman-Hillard will retain a 51% stake in the company, with 30% going to the CIDA Investment Trust; therefore, 30% of post-tax profits of FHSA will go towards educating previously disadvantaged South Africans.
In addition, a Black Staff Ownership Trust has been formed with 5% of the shares, and the remaining 14% ownership stake in the company will be held by local management.
FHSA is also committed to a policy of skills transfer and development, and has paid for two (one mid and one senior-level) black employees to attend UNISA and Varsity College respectively. The agency has provided for external presentation skills courses for all staff and writing courses for the majority of mid-level staff.
This is in addition to an advanced in-house training programme and internship training programme, during which FHSA employed five interns in 2008, four of whom were black.
Beyond its own transformation, Fleishman-Hillard reports invests heavily in SA's transformation through corporate social investment initiatives. These include pro-bono work for the CIDA Campus and a mixture of pro-bono and paid work for Ma Afrika Tikkun, an NGO that cares for vulnerable children in townships. FHSA has also done pro-bono work for international development charity the Starfish Greathearts Foundation.
The CIDA Investment Trust was formed in 2005 to act as a vehicle for social purpose business ventures. Fleishman-Hillard is a part of Omnicom Group (www.omnicomgroup.com), a global advertising, marketing and corporate communications company with more than 5000 clients in more than 100 countries.
