Social, ethics and transformation committee report
The PPC group social, ethics and transformation committee (SET) is a statutory committee that assists the board in monitoring the group's activities as set out below.
The committee is governed by terms of reference that detail its duties under the Companies Act, the JSE Listings Requirements and King lVTM, as well as responsibilities assigned by the board.
Terms of reference
SET's terms of reference were reviewed during the period and approved by the board. The committee has executed its duties for the year in line with these terms of reference.
Composition and functioning
Detailed on page 95.
The committee does not assume the functions of management, which remain the responsibility of the executive directors, officers and other members of senior management. Its prescribed role is to assist the board to monitor the company's activities against relevant legislation, other legal requirements or prevailing codes of best practice, specifically:
- Social and economic development, including PPC's standing in terms of the goals of the:
- Employment Equity Act
- Broad-Based Black Economic Empowerment Act
- Transformation, including overseeing the development of an appropriate transformation strategy; monitoring implementation of the transformation roadmap; reviewing policies, plans and processes to facilitate transformation in the group; and reviewing the integrated report to stakeholders on aspects of transformation
- Good corporate citizenship, including promoting equality, preventing unfair discrimination and reducing corruption; and contributing to the development of communities in which its activities are predominantly conducted or within which its products or services are predominantly marketed
- The environment, health and public safety, including the impact of PPC's activities (including pollution) and of its products or services on these matters and surrounding communities
- Stakeholder relationships and the company's advertising, public relations and compliance with consumer protection laws
- Labour and employment, including the group's standing under the International Labour Organisation protocol on decent work and working conditions; employment relationships; and PPC's contribution to the educational development of its employees
- The governance of ethics and implementing the ethics management programme in the group
- Monitor functions required by the Companies Act and its regulations
In terms of its delegated authority, the committee has the power to investigate any activity within the scope of its terms of reference.
Key activities in the review period
The committee met twice during the year to:
- Review and recommend for board approval the top-up BBBEE structure to achieve 30% black ownership in the South African holding company to comply with MPRDA
- Consider the external verification of the group's empowerment activities
- Monitor progress against transformation targets in PPC's employment equity plans as well as the investment in employee learning and development
- Review results of the employee climate satisfaction survey and plans to enhance employee engagement and retention
- Assess sustainability performance, particularly health and safety, environment and energy
- Review and recommend to the board for approval the independent assurance report on sustainability elements, to be included on page 158 for 2018
- Consider the social and labour plan (SLP) reports, which are a compliance element under regulation 46 of the MPRDA
- Consider the stakeholder engagement framework for recommendation to the board for approval. The framework encompasses customers, investors, regulators, media and banks (refer page 30 )
- Consider progress on the group's corporate social investment (CSI) programme, focusing primarily on the employee voluntarism programme, internships and graduate programmes, investment in employee learning and development
- Consider progress on the group's strategy for procurement in line with the MPRDA and dti scorecard, particularly enterprise and supplier development programmes. PPC scored well (99%) under the enterprise and supplier development element of the dti's revised codes of good practice for its supplier-rotation approach in the value chain
- Review compliance with regulatory frameworks applicable to the group and received reports on litigation matters relevant to its mandate
- Consider the ethics policy, ethics reports, code of conduct policy and reports
These aspects are detailed in our supplementary report.
The committee monitors the group's performance against our vision and values, and makes recommendations to the board to meet the expectations of various stakeholders of the group. It also considered, and was satisfied with, progress in managing engagement processes with all key stakeholders.
Chairman social and ethics committee
12 July 2018