Murray & Roberts acknowledges that the “tone at the top” sets the foundation for an ethical culture within an organisation. A company builds an ethical culture in informal and formal ways. Formal means include compiling an ethics risk and opportunity profile, developing a statement of business principles (commonly referred to as a code of ethics) and integrating ethical standards into its business activities and reporting on and disclosing the company’s ethics performance. Murray & Roberts is in the process of finalising its statement of business principles which aims to promote and encourage ethical behaviour. The statement of business principles will apply to all Murray & Roberts employees irrespective of geographic location.

The Group ensures compliance with all its legal and regulatory requirements through application of its governance policies and procedures. Directors are bound by a board mandated Code of Conduct which contains standards of accepted behaviour.

Human rights

Murray & Roberts endorses employee rights contained within the Constitution of South Africa 108 of 1996, including the right to collective bargaining. Murray & Roberts acknowledges the right of individuals to freedom of association and rejects child and forced labour. A large portion of the Group’s employees, particularly in the South African mining activities, are represented by trade unions. Murray & Roberts, through its operating entities, actively participates in national bargaining forums, including its membership of the South African Federation of Civil Engineering Contractors and the Steel and Engineering Industries Federation of South Africa. Site-based forums are established where recognition and procedural agreements are in place and voluntary bargaining forums are often aligned to specific industries.

Murray & Roberts occasionally experiences industrial action within its operating entities. Procedures are in place in the operating companies to manage employee relations, industrial action and trade union negotiations.

Murray & Roberts respects the rights of indigenous people and partners with indigenous and local communities where appropriate. Examples include:

the introduction of broad-based trusts as 10% shareholders in the Group in December 2005 to support socio-economic development of the South African communities within which it operates
supporting the requirements of ASGISA where Murray & Roberts seeks to develop skills and enhance procurement within communities surrounding its major projects
Cementation Canada’s partnership with the Kitikmeot communities through Kitikmeot Corporation of Nunavut, in northern Canada. Kitikmeot Corporation is the economic development arm of the Kitikmeot Inuit Association, and is responsible for developing business opportunities for the Kitikmeot region.

Unfair discrimination and equality

Discrimination of any form is viewed in a very serious light by Murray & Roberts and appropriate disciplinary action is taken against offenders. Murray & Roberts believes that no person may unfairly discriminate, directly or indirectly, on one or more grounds including race, gender, pregnancy, marital status, family responsibility, ethnic or social origin, colour, sexual orientation, age, disability, religion, health (including HIV) status, conscience, belief, political opinion, culture, language and birth.

Murray & Roberts furthermore believes that it is not unfair discrimination to promote affirmative action consistent with the Employment Equity Act or to prefer or exclude any person on the basis of an inherent job requirement.

Fraud, corruption, anti-competitive behaviour and unfair business practices

The Partnering Against Corruption Initiative (PACI) was launched at the 2004 annual meeting of the World Economic Forum, backed by a set of principles for countering bribery in business. Murray & Roberts is a founding signatory to PACI and undertakes to counter corruption and bribery in the Group and its markets.

Murray & Roberts was one of only two construction companies which participated in the Ethics Institute of South Africa’s 2009 Corporate Ethics Indicator. The benchmark study which is in line with the recommendations of King III, provides the Group with independent, and statistically reliable information on the ethics management practice within the organisation.

Senior corporate and operating entity executives have undergone advanced training on the legislation covering anti-competitive behaviour and the Group has reviewed all operating entities to identify potential competition law risks. Where there is any possibility that such risks might exist, the competition authorities have been informed and appropriate actions taken to protect the company and its shareholders. Management and the Board are committed to the elimination of this unacceptable practice.

The Group has undertaken extensive training on the South African Competition Act, with more than 1 350 employees receiving online training and assessment during the year.

On 24 August 2010, the South African Competition Commission referred a collusion case against 13 scrap merchants in the markets for the supply of ferrous and non-ferrous scrap metal to the Competition Commission Tribunal. The Commission has asked the Tribunal to impose an administrative penalty of 10% of annual turnover on each of the firms involved. This includes National Scrap Metal (Pty) Ltd (NSM), an associate company of Murray & Roberts. Murray & Roberts has a 42% effective shareholding in NSM. No relief is sought against Murray & Roberts subsidiary Cape Town Iron and Steel Works (Pty) Ltd (Cisco) in these proceedings.

The group chief executive hosts “Ask Brian” on the Interchange and the CE Discussion Forum on the website to promote transparent direct communication on matters of importance to employees and broader society. He is also the direct point of contact for “Tip-offs Anonymous”, an independent hotline service that supports reporting of workplace dishonesty including discrimination, theft, fraud and corruption. The Group through its chief executive, engages a professional firm of forensic consultants and investigators to investigate all reported cases. Appropriate disciplinary and legal action is taken for any form of dishonest conduct.