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AfroCentric INTEGRATED ANNUAL REPORT 2016
93
Governance and sustainability
SOCIAL AND ETHICS COMMITTEE REPORT
In a country still struggling with social and economic
inequities, it is the duty of every company to contribute to
transformation and socio-economic development, to build
a future in which all South Africans have an opportunity
to realise their full potential. Shareholders don’t primarily
focus on financial returns. They seek social returns and
the sustainability of the Group depends on vigilant
attention to both. AfroCentric takes its responsibility as a
corporate citizen seriously, and is proud to play a leading
transformational role in its industry. The Social and Ethics
Committee oversees the Group’s activities as they relate to
legislative compliance and social responsibility.
The Group’s Social and Ethics Committee is constituted as a
formal Committee of the Board in terms of the Companies
Act.
The Committee has an independent role and is governed by
a formal charter. This report is prepared in compliance with
the requirements of the Companies Act.
ROLE OF THE COMMITTEE
The Social and Ethics Committee acts in terms of the
delegated authority of the Board and assists the Directors
in monitoring the Group’s activities in terms of legislation,
regulation and codes of best practices relating to:
Group policies (ethics, whistle-blowing, anti-corruption
and procurement)
Employment equity
Socio-economic development
Environmental impact
B-BBEE impact on the Group and measures taken to
comply with legislation
Internal labour organisation
RESPONSIBILITIES OF THE COMMITTEE
The responsibilities of the Committee are as follows:
Monitor the Company’s activities relating to social and
economic development, good corporate citizenship, the
environment, and health and public safety
Ensure appropriate short- and long-term targets are set by
management
Monitor progress on strategic empowerment and
performance against targets
Monitor changes in the application and interpretation of
empowerment charters and codes
Monitor functions required in terms of the Companies Act
and its regulations
COMPOSITION AND FUNCTIONING
The Committee comprises:
Mr GL Napier (Co-Chairperson)
Ms M Mashigo (Co-Chairperson)
Ms Y Masithela
Dr NB Bam
The effectiveness of the Committee is assessed as part of the
annual Board and Committee self-evaluation process.
ACTIVITIES OF THE COMMITTEE
The Committee met three times during the year under review
and performed the following activities:
Reviewed the Committee’s terms of reference
Monitored social and economic development in terms of
the goals and purposes of:
− The principles set out in the United Nations Global
Compact
− Employment Equity Act
− Preferential procurement
− Broad-based Black Economic Empowerment Act
− Procurement policies
− Health and Safety policies
Reviewed the Group’s contribution to the development of
communities in which it operates
Reviewed the Group’s philosophy and performance in
respect of social investment (sponsorships, donations and
charitable giving)
Reported internally on ethics performance to the Group
Reporting on and disclosing the Group’s ethics
performance
Monitored changes in legislation and compliance thereof
Details of
the Committee
members appear
on page 17.
Fees paid to the
Committee members for 2015
and the proposed fees for 2016
are disclosed in the Remuneration
Report on page 92.
The Group’s progress on empowerment
and transformation and environmental
management is covered under social
performance on page 94.