Social, ethics and transformation

The Social, Ethics and Transformation Committee is a sub-committee of the board operating in compliance with the Companies Act. The committee assists the directors in monitoring the group’s activities relating to sustainability, ethics, stakeholder engagement, empowerment and transformation.

The group qualified for inclusion in the JSE Socially Responsible Investment (SRI) Index for a fourth successive year in 2015. The SRI Index is acknowledged as the benchmark of sustainability and recognises listed companies for incorporating sustainability practices into their business operations. The SRI Index covers environmental, social, governance and related sustainability issues as well as climate change.

Responsibilities of the committee

Social and ethics

Transformation

 

Composition and functioning

The committee comprises three non-executive directors, namely Professor Fatima Abrahams (Chairperson), David Nurek and Alan Smart, and an executive director, Johan Enslin. Senior management in the human resources, merchandise, socio-economic development and risk departments attend by invitation. Biographical details of the committee members appear here. The effectiveness of the committee is assessed as part of the annual board and committee evaluation process.

The members of the committee believe that the group is substantively addressing the issues required to be monitored by the committee in terms of the Companies Act.

Transformation

The group supports the principles and objectives of broad-based BEE contained in the DTI Codes of Good Practice on B-BBEE. The board acknowledges its oversight role in driving transformation and empowerment across all seven elements of the DTI scorecard.

The group was assigned a level four B-BBEE contributor status in April 2015, which has been verified by AQRate, an
accredited empowerment rating agency.

The committee has noted that the amended codes of good practice came into effect on 1 May 2015. The group obtained its B-BBEE rating on 30 April 2015 based on the previous codes of good practice.

BEE element Maximum 2015 2014 2013 2012 2011
Equity ownership 20 6.13 9.33 11.1 10.5 0
Management control 10 4.38 5.08 4.7 4.7 4.5
Employment equity 15 6.04 5.77 6.1 5.9 8.3
Skills development 15 11.69 12.0 11.7 11.5 7.9
Preferential procurement 20 18.73 17.4 18.0 16.6 18.5
Enterprise development 15 15.0 15.0 15.0 15.0 15.0
Socio-economic development 5 5.0 5.0 5.0 5.0 5.0
Total 100 66.97 69.58 71.6 69.2 59.1
B-BBEE contributor status Level 4 Level 4 Level 4 Level 4 Level 5

 

Click here to read more on Social, ethics and transformation report.