Blue Label Telecoms Integrated Annual Report 2019

96 Blue Label integrated annual report 2019 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 2019. 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 include holding at least three meetings per financial year. As prescribed by the Act, the role of the Committee is to monitor the Group’s activities in respect of: u u social and economic development, including the Group’s compliance with the Broad-Based Black Economic Empowerment Act and the Employment Equity Act; u u consumer relations and the Group’s compliance with consumer protection laws; u u 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; u u 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 giving; u u the environment, health and public safety and the impact thereon of the Group’s activities; and u u the 10 principles of the United Nations Global Compact. This year the Committee met three times in line with its terms of reference. Areas discussed with management included transformation across the Group’s workplace focusing on continuous improvement in meeting the Company’s transformation objectives and regulatory compliance. The Committee ensured that the Group published its consolidated B-BBEE rating in respect of the 2019 financial year as required by the JSE of all listed entities and published a consolidated B-BBEE scorecard on its website, issued a SENS announcement and submitted a report to the B-BBEE commissioner. In addition to monitoring and reporting on progress to date, the Company continued to explore implementation strategies to increase its B-BBEE compliance levels in line with our good corporate citizenship commitments. The Committee reviewed the impact of the revised and implemented dti codes of good practice to the Group and satisfied itself that management is ensuring a rigorous process to ensure compliance at individual subsidiary levels and that divisional management incorporates the Company’s transformation objectives as an integral part of their day-to-day performance scorecards. The Committee interacted with Senior Management and the Group’s joint CEOs to ensure inculcation of the guidance and recommendations of the Committee into both strategic and operational plans within the Group and its subsidiaries. The Committee continues to monitor progress of the roadmap to address the Company’s equity targets and B-BBEE shortfalls. We will continue to review current initiatives and their effectiveness and make appropriate recommendations to the Board. The following items were also considered and implemented during the year: u u The Committee approved the establishment of a dedicated B-BBEE and transformation business function to drive and support meaningful transformation across the Group. u u The Committee noted and approved the revised final CSI policy whose intention was to ensure that the principle of shared value for all stakeholders is embedded into all Group CSI initiatives. The new philosophy of Group CSI is around creating shared value and centralised co-ordination of resource application for high impact and Group outcomes. u u The Committee noted the establishment of the Trust Blu Foundation, the non-profit arm of the Group. The objective of the foundation is to collaborate with non-profit organisations and social enterprises with a view to create more synergies and better alignment with our shared value ethos. Please refer to the socio-economic and community development report on page 70. u u The Committee continued to monitor all CSI projects in particular our ongoing support of the flagship project since 2011; the Boys and Girls Clubs, which the Group is proud to be associated with as well as the cricket and educational youth development initiative in Alexandra. u u The monitoring of the coaching and skills development initiatives to ensure targeted spend of Group priorities and transformational objectives. u u Employment equity, including feedback from the Group Employment Equity Committee.