Governance philosophy and approach

Entrepreneurship and innovation underpinned by good governance

The philosophy of Blue Label 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. 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

Blue Label favours the outcomes-based approach of King IV that focuses on the quality of governance outcomes and not simply a structural and compliance approach. The Board applies the King IV principles to continuously review, revitalise and streamline its governance structures and practices to the requirements of the expanding Blue Label. The most appropriate recommended practices and adaptations have been applied in achieving the outcomes-based principles of King IV.

The Board Charter and subcommittee terms of reference and work plans have been substantially aligned with King IV practices and policies. Practices and processes are continuously reviewed and enhanced to ensure appropriateness and robustness, as outlined in this report on an ongoing basis.

The disclosure requirements of King IV have been provided throughout this report and explain Blue Label's governance philosophies, structures, practices and outcomes in adopting and embracing the principles of King IV.

Current year Board focus and future focus

The focus of the Board in the current year remains the restructuring of the business to focus on core operations, to reduce debt, improve cash generation and ready Blue Label for implementing programmes that return value to shareholders through dividend and share buy-back programmes. The Board and its committees have put significant effort into closely monitoring the improvement of the effectiveness of governance, risk management, the control environment, liquidity and cost management at Cell C. The Board has also spent significant time on improving governance, regulatory, capital allocation, compliance and security protocols within the Blue Label Group.

Following the gap analysis and materiality assessment of sustainability matters, including environmental, social and governance (ESG) we have begun our journey on developing and integrating sustainability and ESG into our governance, risk management, strategy and performance management, including remuneration, processes and structures. The progress we have made on our sustainability reporting journey has been set out in the respective sections of this integrated report.