Social, Ethics and Transformation Committee's report

Dear stakeholders

I am pleased to report on the activities of the Committee for the financial year ended 31 May 2017.

The Committee was formed in February 2012 in accordance with section 72(4) of the Act and operates under Board-approved terms of reference, which includes holding meetings twice per financial year.

As prescribed by the Act, the role of the Committee is to monitor the Group's activities in respect of:

  • social and economic development, including the Group's compliance with the Broad-Based Black Economic Empowerment Act and the Employment Equity Act;
  • consumer relations and the Group's compliance with consumer protection laws;
  • the Group's standing in terms of the ILO protocol on decent work and working conditions, the Group's employment relationships and its contribution to the educational development of its employees;
  • good corporate citizenship, including the Group's promotion of equality, prevention of unfair discrimination and reduction of corruption, contribution to development of the communities in which the Group operates, and its record of sponsorships, donations and charitable givings;
  • the environment, health and public safety and the impact thereon of the Group's activities; and
  • the ten principles of the United Nations Global Compact.

This year the Committee met twice. Areas discussed with management included transformation across the Group's workplace focusing on the following issues:

  • The regulatory landscape.
  • Impacts of the revised and clarified dti codes of good practice.
  • Reviewing current initiatives and their effectiveness and making appropriate recommendations.
  • Monitoring progress of the roadmap to address equity B-BBEE shortfalls.
  • Company and subsidiary B-BBEE ratings.

The following items were also considered during the year:

  • Social and economic development matters.
  • Coaching and skills development initiatives.
  • Employment equity, including feedback from the Group Employment Equity Committee.
  • Ten principles of the United Global Compact.
  • Corporate citizenship:
    • Corporate Social Investment, including monitoring and spend on projects;
    • sponsorship and donations, in particular our ongoing support of the flagship project, the Boys & Girls Club in Protea Glen, Soweto; and
    • ethics statement and whistle-blowing policy.
  • Environment:
    • health and safety review;
    • health and safety practices; and
    • review of environmental footprint.

The Committee believes that the Group complies with the statutory duties, save for issues being addressed by management with regard to employment equity and aspects of procurement as the Group purchases mainly from the networks and power utilities.

On 11 January 2017 Yusuf Mahomed resigned and on 7 March 2017 we welcomed Phuti Mahanyele as a member to the Committee.

I look forward to reporting on our progress next year.

SJ Vilakazi

Chairman

23 November 2017