LENMED AIR 2019.pdf

LEADERSHIP Principle 1 The governing body should lead ethically and effectively . The Board leads ethically and effectively. In this regard, the philosophy of this Board is to ensure compliance with the principles of King IV™, ensure sustainability of the company and to be a good corporate citizen. Although Lenmed is not a listed company it voluntarily chose to appoint independent directors of a high standing who serve on other prominent boards. The Board leads with a clear set of ethics and morals and sends a clear message on ethics throughout the Group. At meetings there are robust discussions and Board members challenge and hold each other accountable. Disclosure of interests is a standard agenda item at Board and committee meetings and there is an annual declaration by all directors. The Group does not engage in or accept unethical conduct or unfair business practices in the conduct of its business. A zero-tolerance approach has been adopted, supported by a Code of Ethics and Conduct. A whistleblowing facility is in place and is administered by Tip-offs Anonymous, which guarantees the anonymity of the complainant. Reports are provided to the Group Internal Audit Manager and a summary is provided to the Audit and Risk Committee. There is also a Director Induction and Training Programme, which is reviewed annually. Training is made available to directors on a needs basis. The Board and senior management hold a two-day annual strategy session and strategic targets are monitored at every meeting. Also, risks and opportunities are monitored at every Board meeting. Further, various aspects of Principle 1 are covered in Lenmed’s Board Charter and other key documents. ORGANISATIONAL ETHICS Principle 2 The governing body should govern the ethics of the organisation in a way that supports the establishment of an ethical culture . The ethical tone at Lenmed is set by the Board and applies throughout the organisation. Although Lenmed’s Code of Ethics applies to all directors and employees, it has not yet been extended to other stakeholders. Key ethical risks of the organisation are monitored via the Code of Ethics and whistleblowing line. The relevant legal processes are followed for any ethical breaches. A whistleblowing facility is in place and is administered by Tip-offs Anonymous, which guarantees the anonymity of the complainant. Reports are provided to the COO and CFO, any reports on directors and the Executive Committee (Exco) go directly to the Chairman of the Audit Committee and a summary is provided to the Audit and Risk Committee. Results are monitored on an ongoing basis by the Audit Committee and any complaints are sent to the Chairman of the committee. RESPONSIBLE CORPORATE CITIZEN Principle 3 The governing body should ensure that the organisation is and is seen to be a responsible corporate citizen . Lenmed’s hospitals are of international standard and many of them are located in previously underserved and outlying areas. These hospitals serve the community and are also one of biggest employers in these areas, stimulating the local economy. Further, the healthcare sector is highly regulated which places greater levels of demand and vigilance on the Board and management. The Board’s approach to being a responsible corporate citizen is also supported by various policies and the work done by the Social and Ethics Committee and the Clinical Governance Committee. These committees consider and evaluate the sustainability of the Group with reference to the rigid demands of: + Ethical culture and values + Approach to compliance + Commitment to transformation and B-BBEE + Health and public safety, which includes occupational health and safety, as well as the clinical quality of the Group’s services and waste management + Environmental matters + Patient satisfaction + Labour relations + Corporate citizenship The committee reports back to the Board on these matters and makes recommendations. KING IV™ OVERVIEW The register set out below provides an overview of Lenmed’s application of the principles contained in King IV™. The register should be read in conjunction with Lenmed’s Annual Integrated Report, including the individual reports of the Board committees. LENMED ANNUAL INTEGRATED REPORT 2019 63