LENMED AIR 2019.pdf

SOCIAL AND ETHICS COMMITTEE REPORT REPORT TO SHAREHOLDERS The Social and Ethics Committee (the “Committee”) is pleased to present its report for the financial year ended 28 February 2019 to the shareholders of Lenmed Health Group. This report is prepared in accordance with the requirements of the Companies Act (No 71 of 2008), as amended (Companies Act) and describes how the Committee has discharged its statutory duties in terms of the Companies Act and its additional duties assigned to it by the Board. COMMITTEE MANDATE The Committee is responsible for assisting the Board with the monitoring and reporting of social, ethical, transformational and sustainability practices that are consistent with good corporate citizenship and assisting the Group in discharging its business responsibilities in relation thereto. The Committee is governed by a formal Charter, which guides the Committee in terms of its objectives, authority and responsibilities. The Charter incorporates the requirements of the Companies Act, specifically regulation 43(5). The focus areas of the Committee are detailed here. In discharging its duties, the Committee takes into consideration any relevant legislation, other legal requirements or prevailing codes of best practice in all markets where the Group operates. COMPOSITION OF THE COMMITTEE The Committee comprises suitably skilled and experienced members appointed by the Board. Mrs N V Simamane, who is an independent non-executive director, chairs the Committee. Committee members include Dr N Bechan, the Hospital Manager for Ethekwini, Mr E Asmal, the Regional Director and Dr N Patel, the Chief Medical Officer. Invitees include senior managers in the areas of Human Resources, Finance, Marketing and Internal Audit, currently undertaken by PWC. The Group Company Secretary acts as the secretary of the Committee. THE COMMITTEE CHARTER AND WORK PLAN The Board approved the Committee Charter and work plan, which details the role, responsibilities and mandate of the Committee. In terms of the Committee’s mandate, at least two meetings should be held annually. During this financial year, the Committee held three meetings. THE COMMITTEE’S ROLE AND RESPONSIBILITIES Role The Committee has an independent role with accountability to the Board. The Committee does not assume the functions of management, which remain the responsibility of the executive directors, officers and other members of senior management. The overall role of the Committee is to assist the Board with the oversight of social, ethical and transformation matters relating to the company. Responsibilities The Committee performs all the functions as is necessary to fulfil its role as stated above, including its statutory duties. In fulfilling its statutory duties and performing its functions as delegated by the Board, the Committee considers and evaluates the sustainability of the Group with reference to the company’s: + ethical culture and values; + adoption of UNGC principles + 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; and + corporate citizenship. Policy review The Committee is responsible for developing and reviewing the Group’s policies with regard to the commitment, governance and reporting of the Group’s sustainable development performance and for making recommendations to management and/or the Board in this regard. During the year, the Committee reviewed various policies, including the Human Rights, CSI, Employment Equity, Employee Wellness and Chronic Illness, Legal Ethical, Tax Ethical and Employee Relations Policy. In fulfilling its functions, the Committee has received and reviewed reports on: + Human rights practices within the company. There have been no incidents of human rights abuses declared against the company in the year under review. + Labour and employment practices. The Committee reviewed the employee headcount, progress of employment initiatives undertaken during the year, employment equity reporting, skills development reporting and legislative updates. Reports on Employment Equity were submitted to the Department of Labour timely. + Transformation. The Committee reviewed the company’s performance against the newB-BBEE codes, includingOwnership, Skills development, Preferential Procurement, Management Control/Employment Equity, Supplier development, Enterprise development and Socio-economic development. The Group focused on implementing the action plans and targets defined from the gap analysis with this yielding a significant improvement in the group’s B-BBEE rating. + Corporate Social Investment (CSI). The company’s CSI expenditure and its progress against planned initiatives during the year was assessed and found to be satisfactory. + Anti-corruption, ethics and compliance. During the year, the Committee received various reports on ethics and compliance. 80 ENSURING AND PROTECTING VALUE