for the year ended 30 June 2017
The social and ethics committee ("SEC") is a formal committee operating in accordance with a board-approved mandate to assist the board with the monitoring, developing, reviewing and improving the group's social, ethical and sustainability practices. The board, in addition to its statutory responsibilities, assumes responsibility for ensuring that the company's ethics are effectively managed and does so through exercising ethical leadership, integrity and judgement in directing the company. Employees are in turn expected to act in a manner that upholds the company's values as contained in the City Lodge code of ethics and business conduct ("the code"). The code details the standards of behaviour expected of employees and is provided to employees at the commencement of their employment with the company.
This report outlines how the SEC has discharged its responsibilities as set out in section 72 of the Act and regulation 43 of the Companies Regulations 2011 issued in terms of the Act with further detail to be found on pages 70 to 72 and pages 48 to 58 which covers progress in this regard.
With the approval of the revised code, which sets out and reinforces the group's values and what is considered ethical behaviour, efforts will be directed to creating awareness, facilitating training on understanding and adherence to the code and implementing the "annual declaration of adherence to the code".
The committee is of the view that the group takes its environmental, social and governance responsibilities seriously and that appropriate policies, plans and programmes have been put in place to contribute to social and economic development, good corporate citizenship, environmental responsibility, fair labour practices and good consumer relations.
No incidents or acts indicating a material breach in the required standard of ethical behaviour were brought to the attention of the committee during the period under review nor were any instances of substantive non-compliance with legislation and regulation or non-adherence to codes of best practice.
Based on its monitoring activities, the SEC has no reason to believe that any such non-compliance or non-adherence has occurred and that the group is addressing the matters required to be monitored as detailed in its mandate in the appropriate manner and that it has effectively discharged its responsibilities.
K I M Shongwe
Chairman of the social and ethics committee
4 September 2017