Social and ethics committee report

“Ethics is knowing the difference between what you have the right to do and what is the right thing to do.”

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ROLE OF THE SOCIAL AND ETHICS COMMITTEE

The committee was established to assist the Board in ensuring that the Group is and remains a committed socially responsible corporate citizen and reports on organisational ethics, sustainable development and stakeholder relationships. This role includes organisational ethics and covers the statutory duties and to encourage leading practice by having the social and ethics committee progress beyond mere compliance to contribute to the creation of value in the Group.

The commitment to sustainable development involves ensuring that the Group conducts operations in a manner that meets existing needs without compromising the ability of future generations to meet their needs. The committee’s primary role is to supplement, support, advise and provide guidance on the effectiveness or otherwise of management’s efforts in respect of sustainable development, social and ethics-related matters and ensure that the Group is and is seen to be a responsible corporate citizen.

REPORT OF THE SOCIAL AND ETHICS COMMITTEE

The social and ethics committee assisted the Board in ensuring that the Group is and remains a committed, socially responsible corporate citizen. It performed the statutory functions required in terms of the Companies Act and King IVTM. The committee’s commitment to sustainable development involved ensuring that the Group conducted its operations in a manner that meets existing needs without compromising the ability of future generations to meet their needs. The committee provided support, advice and guidance on the effectiveness, or otherwise of management’s efforts, in respect of sustainable development and social and ethics-related matters. The committee updated the Code of Ethics and Code of Conduct during the year. The Company is reviewing the development of a compliance framework and dashboard.

During the year under review, the committee undertook the following:

  • Governed the ethics of the Group in a way that supports the establishment of an ethical culture and monitored the Group’s activities, having regard to all relevant legislation, legal requirements, codes of best practice through ongoing staff awareness around the following policies:
    • The Way We Work Policy
    • Anti-corruption and Bribery
    • Code of Conduct
    • Code of Ethics
  • Ensured that employees and stakeholders familiarised themselves with the organisation’s ethical standards
  • Exercised ongoing oversight of the management of ethics and in particular that it resulted in the application of the organisation’s ethical standards to the processes for the recruitment and evaluation of employees, as well as the sourcing of suppliers
  • Monitored, reviewed and made recommendations regarding the Group’s:
    • personnel manuals and ensured that all policies are in line with the amended Basic Conditions of Employment Act, 1997 (No. 75 of 1997) (Basic Conditions of Employment Act), the Employment Equity Act, 1998 (No. 55 of 1998) (Employment Equity Act) as well as skills development;
    • ensured compliance against the UN’s Global Compact’s 10 principles in the areas of human rights, labour, the environment and anti-corruption;
    • ensured ongoing human resources, employment relationships and skills development through the contribution of educational development of employees by conducting a skills audit and training analysis which identified training needs; and
    • ensured the Group’s promotion of equality and prevention of unfair discrimination.
  • Monitored, reviewed and ensured compliance to the Group’s standing in terms of social and economic development and ensured that the business units contribute and give back to the communities in which they operate and made recommendations
  • Monitored, reviewed and ensured that the businesses in the Group recognise that they have a responsibility to apply good environmental practices and to improve on their environmental performance as part of the Group’s strategy and commitment to sustainability; to meet and where possible exceed environmental legislative and regulatory requirements; as well as to promote sustainability by monitoring their environmental impact in terms of health and public safety, including the impact of their activities and/or products or services
  • Ensured compliance and standing in terms of the regulations governing B-BBEE
  • Monitored and ensured that the Group is seen to be and is a responsible corporate citizen through societal and environmental initiatives and the Group’s contribution to the development of communities in which the Group’s activities are conducted, including sponsorship, donations and charitable giving
  • Monitored the Group’s consumer relationships, including advertising, public relations and compliance with consumer protection laws
  • Monitored the anonymous tip-off line and dedicated email address and confirmed that there was no corruption or fraud reported

Planned areas of future focus

  • Continue to govern ethics in the Group in a way that continues to support the establishment of an ethical culture
  • Monitor labour, employment relationships, training and skills development, employment equity, promotion of equality and the prevention of unfair discrimination
  • Exercise ongoing oversight of the management of ethics and in particular oversee that it results in the following:
    • Application of the organisations ethical standards to the processes for the recruitment, evaluation of employees, as well as the sourcing of suppliers
    • Having sanctions and remedies in place for when the organisation’s ethical standards are breached
    • Monitor the use of protected disclosure and whistle-blowing mechanisms to detect breaches of ethical standards and dealing with such disclosures appropriately
    • The monitoring of adherence to the organisation’s ethical standards by employees and other stakeholders through, among other, periodic independent assessments
  • Monitor, review and ensure compliance to the Group’s standing in terms of social and economic development
  • Monitor and review to ensure that the businesses in the Group recognise that they have a responsibility to apply good environmental practices and to improve on their environmental performance
  • Ensure compliance and standing in terms of the regulations governing B-BBEE
  • Monitor and ensure that the Group is seen to be a responsible corporate citizen through societal and environmental initiatives and the Group’s contribution to the development of communities in which the Group’s activities are conducted
  • Monitor the Group’s consumer relationships, including advertising, public relations and compliance with consumer protection law

(King IVTM – Principles 2, 3, 4, 13 and 16)

For the year under review, the committee is satisfied that is has fulfilled all its statutory duties assigned by the Board. The chairman of the social and ethics committee reports to the Board on the activities of the committee at Board meetings.

Taking into account the various inputs, including the outcomes, the Board combined the social and ethics and the transformation committees going forward.