CORPORATE SOCIAL INVESTMENT POLICY

Transcription

1 CORPORATE SOCIAL INVESTMENT POLICY

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3 Table of Contents 1. PREAMBLE SUSTAINABLE DEVELOPMENT AS THE BIGGER PICTURE CSI VISION CSI MISSION STATEMENT COMPANY VALUES STRATEGIC OBJECTIVE CORPORATE RESPONSIBILITY FOCUS AREAS GUIDING PRINCIPLES Criteria for selecting projects General exclusions CSI BUDGET EMPLOYEE INVOLVEMENT DECISION MAKING STRUCTURE, ROLES AND RESPONSIBILITIES Formation of structure Roles and responsibilities of CSI committee REPORTING STRUCTURE Project Reporting Management Reporting COMMUNICATION Internal Communication External Communication EVALUATION AND FEEDBACK EFFECTIVE DATE AND APPROVAL Page 3 of 10

4 1. PREAMBLE African Chemicals is inherently designed to meet the needs of African people and industries, it is a passion and focus which we are wholeheartedly dedicated to. Within a population of approximately 1.1 billion people (2013), there are eminent challenges such as poverty, food security, education, low income growth, child mortality, access to sanitation facilities, equality, women access to paying jobs as well as access to clean water amongst many others. Commercial organisations can play a significant role in reducing or overcoming these challenges through implementing business models which are structured to simultaneously fulfill profit requirements and the needs of the people where it operates. Corporate social investment (CSI) is the way in which a company helps to create a sustainable environment outside of the business. It is an integral part of African Chemicals business strategy and a primary terrain for enhancing the company s reputation as a responsible corporate citizen and valued partner amongst communities. African Chemical s plan of action is designed to improve the lives of the local people in locations where it operates and the areas where African people live. We have a fundamental responsibility to assist in improving the lives of disadvantaged communities in Africa. We have therefore developed a corporate social investment policy which is aligned to the company s values. We strongly believe that strategy, risk, performance and sustainability are inseparable. 2. SUSTAINABLE DEVELOPMENT AS THE BIGGER PICTURE The World Commission on Environment and Development defines sustainable development as development which meets the needs of the present without compromising the ability of future generations to meet their own needs. Meeting the needs of the future depends on how well we balance social, economic and environmental objectives as we make decision with regard to current affairs. The three pillars which we focus on in order to meet sustainable development principles are: People Equity Education Economic participation Empowernment Cultural preservation Prosperity Local communities Household needs Industrial growth Effecient use of labour Planet Clean water and air Ecosystem integrity Natural resources Biodiversity Figure 1: Pillars of sustainable development. Page 4 of 10

5 We see a great need to balance our social, economic and environmental objectives in the short terms in order to sustain our development in the long term. Corporate Social Investment is part of our means to achieve some sustainable development objectives. 3. CSI VISION To drive positive change and economic progress through remaining true to our values; combating poverty; promoting education and uplifting communities wherever we have reach within the African continent. 4. CSI MISSION STATEMENT To contribute into the lives of all Africans through integrated, efficient and effective social investment programmes in the identified focus areas and make a sustainable and measurable impact. 5. COMPANY VALUES The following values are the fibre makes African Chemicals who we are: Passion Intellect Respect Sustainability Collaboration Care 6. STRATEGIC OBJECTIVE The African market environment is very unique relative to the rest of the world as it requires sensitivity to the wellbeing of its people. The African Chemicals CSI policy and programme is aimed at: Creating and building a transparent, honest and constructive relationship with all stakeholders concerned. Stakeholders consist of suppliers; customers; employees and their families; local communities where we operate as well as investors; Making a positive, sustainable and measurable impact in the communities in which African Chemicals operates through investing in and improving the quality of life of the disadvantaged; Aligning with various governmental regulations and legislation which seek to redress economic inequality as well as boost domestic economic growth; Ensuring that the future generation enjoys the physical environment by adopting and carrying out sustainable environmental practices during the present day; Attracting qualified, socially responsible staff to the company as well as retain and enhance the loyalty and pride of existing staff in the company; Shaping the personality of the company as a caring corporate citizen. Page 5 of 10

6 7. CORPORATE RESPONSIBILITY FOCUS AREAS The focus areas outlined in this policy indicate areas in which African Chemicals shall direct their Corporate Social Investment spend. The three (3) overarching areas of positive impact on people; preservation of the environment and prosperity for all stakeholders. Our focus areas are as follows: High-impact initiatives that contribute to development of African people Working with customers, industry and other stakeholders to create jobs within Africa Skills development and local community economic growth support Supporting local communities with access to health-care Funding and promoting education of Africans in collaboration with educational institutions, government departments and stakeholders within the market in which we operate Support for environmental issues relating to community well-being in association with the Safety Health Environment and Quality (HSEQ) initiative. These priority areas will provide the cornerstones of our CSI strategies, social plans and interactions with beneficiary communities. Priority areas will be reviewed periodically to ensure that they are relevant to community needs. 8. GUIDING PRINCIPLES The guiding principles seek to contribute towards the successful implementation of the company s vision and mission statement. As the company grows and becomes more established in the marketplace, these will updated according to the company s economic capabilities and reach. The principles guiding African Chemical s CSI initiatives are: Creating and sustaining relationships between us, our customers and their surrounding communities A balance between African Chemical s interests and development imperatives Compliance with corporate governance principles and guidelines of the guidelines of the King Report (drafted by Institute of Directors South Africa) Focus on the disadvantaged communities within Africa Biases towards women, the disabled, youth and socially destitute Working with organisations which have a track record and are able to demonstrate good internal controls and some form of sustainability Only working with organisations which are registered as Non Profit Organisations with the Department of Social Development s NPO Directorate and have Section 18(A) tax exemption status Alignment with national imperatives and government s socio-economic framework Page 6 of 10

7 Reflection of values inherent in African Chemicals and encouragement of employee participation that builds unity and capacity in beneficiary communities Periodic audit, evaluation and review of projects by African Chemicals board African Chemicals does not use funds, resources or services to contribute to political parties or their candidates. In addition to this, African Chemicals does not offer financial support to nor partner with: Profit-making organisations Labour movements/unions Organisations that do not have Section 18(A) tax exemption status Organisations which do not uphold Sustainable development principles or do not have respect for human rights Individuals, all funding must benefit the wider community or groups with common purpose 9. CSI BUDGET The CSI budget will run from the 1st of April until the 30th of March each year. African Chemicals CSI expenditure will be comprised of: At least 2% of company net profits after tax (this will be review as the company realizes greater economic growth and establishes itself in the market) Transfer of shares to partners which reside within proximity to our customers operations (this assists our customers in enhancing their local procurement spend and also improving Broad Based Black Economic Empowerment) Non-financial contributions in terms of staff volunteer hours Any sponsorship raised by employees in any fund raising initiatives 10. EMPLOYEE INVOLVEMENT African chemicals realizes the value of involving employees in its CSI activities and shall therefore develop and implement an employee participation programme which seeks to address the needs of employees in a holistic manner while achieving corporate objectives at the same time. The following are commitment which African Chemicals binds itself to in order to provide a platform for employee involvement: African Chemicals will develop a formal employee volunteer programme where employees will be encourage to volunteer at set days during the year at a range of community development project which will be initiated internally or externally. In accordance with HR policy, employees will be entitled to two day s non-consecutive paid leave per annum to volunteer at selected projects which will be either internally conceived or fall Page 7 of 10

8 outside the company. Should the initiative fall outside the company it must be aligned with the company s CSI policy. Employee volunteering support can include volunteer time, financial contributions and donations in kind. The volunteer needs of projects that the company is supporting will be identified and communicated to employees to ensure that employees are aware of the opportunities available. CPA recognizes that many social investment initiatives require highly specialized professional skills in interacting with the disabled and other individuals and it will not subject its employees to undue pressure to work in an environment that they may find emotionally disturbing or uncomfortable. 11. DECISION MAKING STRUCTURE, ROLES AND RESPONSIBILITIES A formal CSI Committee will be established to ensure that a co ordinated, coherent and focused social investment strategy is realized. The CSI Committee will meet on a quarterly basis. The Committee shall be chaired by an African Chemicals Executive as head of CSI (selected periodically) and include (although not limited to) the following members: Financial department representative Human Resource department representative Staff representatives (3) The role of the CSI committee shall include: Determination of CSI policy and strategy and the refreshment thereof according to changes in markets Identification and approval of selected projects for investment Determination and allocation of budget to selected projects Monitoring the effectiveness of funded projects Drawing up of contracts/grant agreements with the selected projects External and internal CSI reporting Co-ordination of an effective CSI communication programme The CSI programme will be managed on a day to day basis an elected person from the committee until such time that African Chemicals has the capacity to employ a CSI coordinator. The responsibilities of the elected member of the committee in the context of CSI strategy implementation shall be: Identifying, screening and selecting CSI projects to present to the CSI Committee Controlling the CSI expenditure Page 8 of 10

9 Managing the implementation of selected projects on a day to day basis External and internal CSI reporting The Chief Executive Officer of African Chemicals shall be responsible for: Final approval of the CSI budget; Final approval of the CSI policy; Monitoring the implementation and outcome of CSI initiatives. 12. REPORTING STRUCTURE The reporting methodology and dates for submissions shall be set out in the grant agreements to be signed by each project funded. The CSI Co ordinator will report to the CSI committee as well as staff on all CSI activities through project progress reports at the CSI committee meetings The CSI Co ordinator will report to the CEO and CFO annually on the CSI programme The CSI Co ordinator will report to staff regularly on the projects progress 13. COMMUNICATION The objective of the communication plan is to enhance the company s reputation for good corporate citizenship in the marketplace and internal environment. Investors and potential partners are also imperative targeted audience. The development and implementation of the external and internal communication plan will be the responsibility of the CSI co-ordinator in collaboration with relevant/capable department. The internal communication plan will provide feedback to staff and management on the CSI policy and strategy, projects selected, project achievements, and project volunteer opportunities. This will be communicated through the following mediums: Corporate communication Staff meetings Office Noticeboards New employee induction packs Page 9 of 10

10 The external communication plan will create public awareness for the company s CSI programme and their role in community upliftment through: Company website Social Media Sales presentations Tender documents Company brochure and other marketing collateral; Public Relations programme including press releases and publicity; 14. EVALUATION AND FEEDBACK Evaluation and impact analysis of CSI investments shall only be carried out on large projects (i.e. projects requiring more than R50, 000 per annum or at once). The measurement and evaluation of the projects will be defined within the grant agreements which set the framework for periodic evaluation. For flagship projects a pre funding evaluation, site visits and end of contract evaluation will be conducted where a full impact analysis will be undertaken. Furthermore funded organisations will be required to have an in built monitoring element for the programme being funded. For larger projects, a pre-funding evaluation, site visits and end of contract evaluation will be conducted where a full impact analysis will be undertaken. Furthermore they will be required to have an in-built monitoring element for the programme being funded. Full disclosure of grantees and the amount of grants made are in the best interest of African Chemicals in terms of good Corporate Governance practices. 15. EFFECTIVE DATE AND APPROVAL This policy is effective from date of signature below: Date Reviewed : 29 February 2016 Date Approved : 2 March 2016 Approved by : Mr. Lesiba Gwangwa Designation : Chief Executive Officer Signature : For further enquiries contact info@africhemicals.com Page 10 of 10