Management of Social, Ethics
and Transformation in Afrox
July 2013
The Companies Act & King III requirements
08/04/2015 Fußzeile
Page 2
The Companies Act:
Social and Ethics committee should be Implement by 1 May 2012
COMPANIES ACT:
KING III:
● Ethical leadership & corporate citizenship
Stakeholder governance model in SA
(Not just shareholders – also refer King ● Compliance with laws, codes, rules &
standards
III)
● Governing stakeholder relationships
− To Monitor the companies activities,
Principle 8.1. – Stakeholder perceptions
having regard to relevant legislation,
Principle 8.2. – Manage stakeholder
to other legal requirements, or
relationships
prevailing codes of best practice
Princiople8.3. - balance all stakeholder
− To draw matters within it’s mandate
groupings
to the attention of the board
Principle 8.5. - Transparency in
− To report to shareholders at the AGM
communication
● Integrated reporting
9.1. – 9.3 – refer detail slide
Scope of matters – Detail from ACTS
Social and economic development
Good corporate citizenship
Environment, health and public safety
Consumer relationships
08/04/2015 Fußzeile
Page 3
Labour and employment
Social and Ethics Committee Approach
08/04/2015 Fußzeile
Page 4
Vision, Strategy and policy
May 2013
Corporate Responsibility Vision
At African Oxygen Limited (Afrox) we are accountable for our actions
and strive to be transparent in all decisions and activities that may
impact the environment and society in general.
Everything we do is based on integrity, honesty and equality and we
have great respect for all stakeholder interests, the rule of law, human
rights, and international standards of behavior.
08/04/2015
Page 6
Corporate Responsibility Strategy - Draft
At Afrox we are seen as a leader in Corporate Responsibility that creates shared value. We
contribute to sustainable wellbeing and economic growth for our company, society and the
environment…
We ensure that we have the right culture and leadership making corporate responsibility core to our
values and the way we do business.
We have good governance in all our processes, have the highest standards of integrity and will maintain
an ethical relationship of responsibility between the company and the society in which we operate.
We show our commitment to social and environmental considerations in our decision-making and are
accountable for the impacts of our decisions and activities.
We support the development and transformation goals of the South African Government and align both
local and global legislative and other requirements thus ensuring our good standing as a responsible
corporate citizen. We maintain our level 3 BBBEE rating and our inclusion in the SRI index and other
socially responsible indices and show our support for the UNGC 10 principles
We consider the interests of all stakeholders when deciding on the best interest of the company. We are
a total solutions partner to our stakeholders.
We have measurable CR policies and will follow a rigorous reporting and review cycle and will have
specific metrics associated with each CR goal. This will culminate in the annual Sustainability report.
08/04/2015
Page 7
08/04/2015
Page 8
Economic development
Market presence
BBEE position in market
Spend on local suppliers
Localisation
Community development
Donations & sponsorships
Consumer relations
Sustainability reporting
and communications
ransformation / Employment
equity
Decent work - GES
Employee health & Wellness
Education of employees
Corruption prevention
Consumer protection
King III
JSE SRI criteria for ethics
Federal Sentencing guidelines
SACEI Index
Environmental impact
Employee Safety
Public health & safety
Corporate Responsibility Policy
08/04/2015
Page 10
STRUCTURE
Linde Corporate Responsibility organisation
Governance structures
08/04/2015 Fußzeile
Page 12
Afrox Social, Ethics & Transformation (SET) Sub-committee
& working committees
Chairman:
Dr Khotso Mokhele
SET BOARD Committee
(Focus on Sustainability)
Co-ordinating
DRI:
Provides
feedback to
Linde
3 Independent
Non- exec board
members
3 Internal
Committee
members
Coordinating DRI
CSR Manager
Quarterly Updates
“deep dive” per topic
SET WORKING Committee
(Focus on Sustainability)
Economic
Sustainability
Social
Environment
Environmental
Sustainability
Workplace
Sustainability
Ethics
& Compliance
GM Risk & Strategy
CSR Manager
GM SHEQ
GM HR
Company Secretary
Integration with business
08/04/2015 Fußzeile
Page 13
Linde Corporate Responsibility Roadmap
Foundation


Compliance with laws

Reacting on
stakeholder enquiries

Basic CR reporting
Management of highrisk issues
Standard



Advanced
 Advanced reporting
Focus on risk
management
Scope of CR
manage-ment: own
operations
CR reporting in accordance with interna tional standards
Global KPIs and data
management
 systems for all CR
areas
(GRI A+, Advanced
Level UNGC)
 Focus extended on
sustainability
opportunities
 Inclusion in main
CR ratings
 Scope extended on
suppliers and
customers
 Active stakeholder
 Quantitative targets
Leading
 Integration of CR in
business strategy
and financial
 reporting
Collective action
with stakeholders on
 high priority issues
High scoring in CR
 rankings and ratings
CR as a
differentiator in
business
inclusion
for all CR focus areas
Solid management of
stakeholder enquiries
08/04/2015 Fußzeile
 in place; 
in progress; beyond reach with current set-up
Page 14
CR roadmap
CR Management (1)
Basic
CR organisation
CR commitment
and standards
KPIs, targets
and monitoring
08/04/2015
Basic
• Responsibilities for
CR topics defined
• CEO commitment
• Commitment to
comply with legal
requirements
• CR KPIs for RAF
• Collection of RAF
targets
StandardStandard





Advanced
Advanced
• CR department
coordinating
activities
• DRI’s for CR for all
aspects
• Active involve-ment
of board members
in CR decision
making

• CR integrated into
company culture
(Linde Spirit)
• Commitment to UN
Global Compact
• Commitment to
WBCSD

• KPIs monitored for
all CR topics
• External assurance
for selected CR
KPIs
• Qualitative targets






Leading
• Direct CR
responsibility of at
least one board
member
• DRIs for CR
actively involved
• Virtual crossfunctional CR
teams

• Code of conduct for
employees
• Code of conduct for
suppliers
• Regular review of
standards

• Assurance for all
major CR KPIs,
targets and
progress against
targets
• Quantitative global
targets

Leading
• Reporting line from
regional DRIs to
Group Corporate
Responsibility

• Public statements
for all main issues
of interest to
stakeholders (e.g.
human rights,
conflict minerals,
etc.)

• Quarterly
monitoring of KPIs
and progress
against targets






 = in place;  = in progress;  = not in place
Page 15
CR roadmap
CR Management (2)
Basic
Stakeholder
dialogue
Materiality
analysis
CR reporting
08/04/2015
StandardStandard
Basic
• Ad-hoc reaction on
stakeholder
enquiries

• Qualitative
approach
• Driven by CR
department
• Based on
stakeholder
expectations

• Annual CR report



Advanced
Advanced
• Systematic
evaluation of
stakeholder
expectations
• Integration of
stakeholder
expectations into
CR strategy

• Quantitative
approach
• Involvement of
issue owners in
evaluation process

Leading
Leading
• Pro-active and
structured
engagement with
stakeholders

• Collective action
with stakeholders
on high priority
issues

• Active involvement
of stakeholders in
evaluation process
• External assurance
of process
• Annual update

• Separate analysis
for each step of the
value chain
• Reporting in annual
report

• Best possible GRI
rating A+
• “Global Compact
Advanced” report
• Assurance of
complete report
• Additional regional
CR reports

• CR reporting fully
integrated into
financial report
• Better report than
competitors
• Better report than
peers


• CR report in
accordance with
established
standards (GRI, UN
Global Compact)
• Assurance of
selected parts of
CR reports









 = in place;  = in progress;  = not in place


Page 16
EXECUTE &
REPORT
Integrated reporting
Sustainability
report
content
used
08/04/2015 Fußzeile
Page 18
Opportunities
Ongoing management of day to day operation
with a Sustainability lens
08/04/2015 Fußzeile
Page 19