Social, ethics and transformation committee report

The social, ethics and transformation committee operates within defined terms of reference as set out in its charter and the authority granted to it by the board. Broadly, the committee is tasked with overseeing the good corporate citizenship of the group on behalf of the board.

The committee is chaired by Bheki Sibiya and further comprises Chief Executive Officer Peter Matlare, independent non-executive group Chairman Andr Parker, independent non-executive Maya Makanjee and members of executive management. The committee meets at least three times a year. Details of meeting attendance are set out on page 63.

The committee’s role is to regularly monitor the group’s activities, with regard to any relevant legislation, other legal requirements or prevailing codes of best practice, in respect of the following:

	Social and economic development, including the group’s standing in terms of: • the 10 principles set out in the United Nations Global Compact Principles; • the anti-bribery and corruption legislation and best practice from around the world including OECD, US Foreign Corrupt Practices Act and UK Bribery Act; • the Employment Equity Act; and • the Broad-Based Black Economic Empowerment Act.
	Good corporate citizenship, including the group‘s: • promotion of equality, prevention of unfair discrimination, and reduction of corruption; • contribution to the development of the communities in which our activities are predominantly conducted or within which our products or services are predominantly marketed; and • record of sponsorship, donations and charitable giving.
	Consumer relations
	Environment, health and public safety, including the impact of the group‘s activities and its services
	Stakeholder relationships, including the group's advertising, public relations and compliance with consumer protection laws
	Labour and employment, including the group‘s: • standing in terms of the International Labour Organisation Protocol on decent work and working conditions • employment relationships, and our contribution towards the educational development of our employees.

The committee draws these matters to the attention of the board and reports on them to the shareholders at the annual general meeting. To this end, a reporting framework is in place which covers aspects contemplated in the United Nations Global Compact - specifically the 10 principles relating to human rights, labour, the environment and anti-corruption. It also covers the OECD recommendations which predominantly relate to anti-bribery and anti-corruption with specific emphasis on risk control systems.

Management reports to the committee on matters relevant to its deliberations to enable the members to fulfil their responsibilities.

Mechanisms to encourage ethical behaviour such as the Code of Ethics, and tip-off line, were confirmed as adequate by the committee in the year.

No human rights incidents were reported. In South Africa, aspects such as prohibition of child labour, forced compulsory labour and discriminatory practices are monitored by the Department of Labour in addition to the committee.

The committee also confirmed that all consumer complaints are monitored by executive management, as well as the risk and sustainability committee, in line with the Consumer Protection Act. A four-year consumer complaints review undertaken by the committee indicated a progressive decline in the number of complaints.

The group labour report was considered by the committee. Female representation is at 31% in junior management, 36% in middle management, 27% in senior management and 25% in executive management. Board representation is at 25%. The trend has remained consistent over a three-year period. Income differentials are also annually tracked by the Department of Labour.

Corporate social investment and the Tiger Brands Foundation are reported separately on pages 119 to 122.

In respect of broad-based black economic empowerment (B-BBEE) performance, the company retained a Level 3 contributor rating for the year. The focus areas for the year under review were employment equity, skills development and enterprise development. The group is currently reviewing its plans and strategies in order to align to the newly promulgated and revised B-BBEE codes.

Bheki Sibiya
Chairman of the social, ethics and transformation committee
18 November 2014