Blue Label Telecoms

Governance philosophy and approach

Entrepreneurship and innovation underpinned by good governance

The philosophy of the Group is that good corporate governance provides an essential platform upon which to achieve its strategic objectives through the pursuit of the entrepreneurial and innovative ethos of the Group. The Board recognises that good corporate governance is essentially about effective and responsible leadership that rests on a foundation of ethical values.

King IV and Blue Label Telecoms

The Group favours the outcomes-based approach of the King IV Report on Corporate Governance for South Africa 2016 (King IV) that focuses on the quality of governance outcomes and not simply the structural and compliance approach. The Board sees the adoption of King IV as an opportunity to review, revitalise and streamline its governance structures and practices to the requirements of the expanding group. A process is currently under way to review the most appropriate recommended practices and adaptations to be applied in achieving the outcomes-based principles of King IV. Based on this review an implementation plan will be determined to fully transition the Group to the desired application of King IV.

In the interim the disclosure requirements of King IV have been adopted in this year's integrated report, as far as possible, and explain the continuation of robust governance principles and practices adopted under King III and some of the transitional initiatives to adopting King IV.

Current year Board focus and future focus

The focus of the Board in the current year has been on continuing development and maturing of the risk management and compliance of the Group as it expands both organically and through acquisitions. While focus was maintained on the core operations, intensive Board attention has been placed on the acquisition of 3G Mobile and the 45% interest in Cell C.

Further focus will be placed on overseeing the integration and synergy plans relating to these acquisitions. With the broadening footprint and scale of the Group's operations continued attention will be paid to further developing the governance framework for Group companies and investments to ensure that adequate strategic direction and oversight is placed on these investments.