Social, Ethics and Transformation Committee report
The Social, Ethics and Transformation Committee’s responsibility is to ensure that the company acts as a responsible corporate citizen and also establishes ethical guidelines within which staff should engage with stakeholders and interact with the environment.
Although management is tasked with overseeing the day-to-day operational sustainability of their respective areas of business and reporting thereon to the committee, the Board remains ultimately responsible for the objectives which it has delegated.
The committee is chaired by independent Non-executive Director, Neo Mokhesi, and further comprises independent Non-executive Directors Nkosemntu, Nika, Vusi Twala and Non-executive Director Nokuzola Tsotsotso. Details of attendance are set out here. Executive management including the CEO, CFO and the Executive Heads of human resources, legal, sales and marketing, public affairs and communications and SHE are invited to attend every meeting.
The purpose of the committee is to guide the Board’s approach to the ethical conduct of business and to regularly monitor the group’s activities with regards to, inter alia:
- monitoring the social, labour, economic and environmental activities of the company;
- ensuring that the company remains a socially committed corporate citizen; and
- evaluating Directors’ declarations of interests and making recommendations thereon.
The committee draws these matters to the attention of the Board and reports on them to shareholders at the annual general meeting.
The committee met twice in the period under review and considered, inter alia, standing agenda items related to social and economic development, labour, employment and training, customer relations, environment, health and safety and ethics.
An impact assessment of the CSI projects was conducted and the committee was pleased with the progress including that Scaw has invested more than R5 million over the past years in community upliftment projects relating to sports development, environment, and education. It is the intention to fund new projects in the new financial year with the same focus areas in mind and further, to focus on employee engagement.
In respect of customer relationships, the key activities have centred on trade shows, customer engagement and developing an in-house system to capture information about customers, visiting sales representative, customer comments, etc. The implementation of a formal CRM system is on hold due to cost constraints.
The ethics initiatives included communicating the business integrity policy in a phased approach to the company. Further, a Directors’ conflict of interests policy has been formulated, endorsed by the committee and approved by the Board. The Competition Law Manual was updated and a training session (dos and don’ts) was provided to Scaw employees who attend industry body association meetings.
The committee’s terms of reference was updated to accommodate the mandate from the Board to consider Directors’ conflicts of interests and to make recommendations thereon.
A report on the company’s B-BBEE performance was provided and the potential rating that can be expected in terms of the new dti codes. A new verification agency has been appointed to conduct the BEE audit for the new financial year.
With respect to labour, employment and transformation, the company embarked on company-wide s189 process and the committee was kept informed of the developments. Further, a plan to improve relations with our labour partners was presented to the committee. Management advised that generally, the company was tracking relatively well against its employee equity targets. However, there are gaps in terms of women in management as well as people with disabilities.
Regarding training, management advised that 65% of all accredited learnerships and skills programmes are
funded from external grants, thus making a huge contribution to the company’s
Safety, health and environment reports are regularly provided to the committee.
No human rights violations/incidents were reported. Scaw does not tolerate any use of child labour within its own operations.
Social, Ethics and Transformation Committee Chairperson
13 June 2016