Ethical performance

MANAGEMENT FRAMEWORKS

The “tone at the top” set by the Board and executive committee continued to drive a vision for and commitment to a morally and ethically sound culture within Murray & Roberts.

STATEMENT OF BUSINESS PRINCIPLES

Our Statement of Business Principles was widely distributed across the Group, both to existing staff and new recruits, and its message was disseminated in forums designed to reaffirm its importance as the standard bearer of the moral and ethical culture we are striving to embed at Murray & Roberts.

We continue to conduct our business within the framework set by the regulatory requirements applicable to our industries in every territory in which we operate. In this, we conduct our business in compliance with both the letter and the spirit of the law, our Group policies, and our Statement of Business Principles.

REGULATORY COMPLIANCE

Regulatory compliance became a key focus during the year, and our Compliance Officer implemented our regulatory compliance strategy through the latter part of the financial year. In adopting a risk-based approach, there was a continued focus on existing and anticipated high risk regulations in the South African market, which include:

	Occupational Health and Safety Act No. 85 of 1993
	Mine Health and Safety Act No. 29 of 1996
	National Environmental Management Act No. 107 of 1998
	Prevention and Combating of Corrupt Activities Act No. 12 of 2004
	Competition Act No. 89 of 1998
	Labour Relations Act Amendment Bill 2012
	Basic Conditions of Employment Act Amendment Bill 2012

Each operating company is developing and implementing its own risk management strategies that identify and implement the controls required to comply with all applicable laws and regulations.

Monitoring procedures were actively carried out, and this activity will increase in intensity in the months ahead. Risk areas of potential non-compliance were identified and earmarked for the implementation of immediate preventative measures. No significant fines or instances of material or often repeated instances of non-compliance were identified in the 2012 financial year. The only material instance of non-compliance pending a penalty in respect of prior periods is the Competition Commission matter referred to in the next section of this report.

FRAUD, CORRUPTION, ANTI-COMPETITIVE BEHAVIOUR AND UNFAIR BUSINESS PRACTICES

Murray & Roberts subscribes to good corporate governance, good corporate citizenship and ethical business practices. The Group is a signatory to the World Economic Forum Partnering Against Corruption Initiative (PACI). The Group is also a member of Business Leadership South Africa and supports their Code of Good Corporate Citizenship.

All executives involved in preparing and authorising each specific project bid, sign a Declaration that they have not committed, and are not aware that anyone else affiliated with the bid has committed, whether directly or indirectly, any unethical or unlawful practices in the preparation and submission of the tender or resultant project delivery.

We do not condone anti-competitive or collusive conduct in any shape or form by our employees in every jurisdiction in which we operate, whether or not there are anti-competitive or anti-collusive laws in place. We are also committed to compliance with the South African Competition Act.

The issue as to what actions the Group takes against perpetrators is guided by the Group’s Anti-Competitive and Collusive Conduct Consequence Matrix. In accordance with the Matrix, no actions have been taken or are required to be taken against any employee of the Group.

The Group still awaits finalisation of the Fast Track Settlement application lodged with the Competition Commission on 15 April 2011, which related to infringements of past employees of subsidiary companies. The Commission is in the process of reviewing the application and it is anticipated that the Fast Track Settlement process should be concluded by the end of September 2012.

In 2010 we launched a dedicated series of educational campaigns comprising seminars, workshop discussions and online training, aimed at instilling a culture of compliance within the Group, and raising the awareness and understanding of the requirements of and obligations imposed by the Competition Act.

These initiatives were extended to all new employees in senior management roles and those who may be exposed to anti-competitive or collusive conduct by nature of their position within the Group. Over and above the 1 058 individuals who completed the online training in previous campaigns, approximately 332 additional individuals had completed the online programme by the end of July 2012. Refresher training will be offered to all relevant employees during October 2012.

TRANSPARENCY

In our commitment to encourage concerned employees to report observed unethical behaviour taking place in the Group, we continued to promote our “Tip-Offs Anonymous” hotline service that supports reporting of workplace dishonesty and unethical behaviour, including discrimination, theft, fraud and corruption.

During the year under review, 58 cases were reported and investigated, of which 46 were closed out and 12 remain under investigation.

A professional firm of forensic consultants and investigators appointed by the Group assists with investigations into the reported cases. Appropriate disciplinary and legal action has been taken in all cases of dishonest conduct.

HUMAN RIGHTS

Murray & Roberts endorses the employee rights enshrined in the Constitution of the Republic of South Africa 1996, including the right to collective bargaining and other labour rights under constitutional laws, wherever we operate. Murray & Roberts acknowledges the right of individuals to freedom of association and rejects child and forced labour. Approximately 56% of the Group’s employees, particularly those in the South African mining activities, are represented by trade unions and by collective bargaining agreements.

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

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. We do not condone unfair discrimination and expect everyone who works for or acts on our behalf to adhere to the highest ethical standards. We expect all employees and service providers to treat those with whom they come in contact with dignity and respect. As a South African domiciled company, we believe that it is not unfair discrimination to promote affirmative action consistent with the Employment Equity Act or to prefer any person on the basis of an inherent job requirement.

TIP-OFFS ANONYMOUS

To support our commitment to conducting business honestly and with integrity, we subscribe to a service that allows all employees to report anonymously any unethical behaviour or dishonesty in the workplace. The hotline is managed by Deloitte & Touche and is completely independent of Murray & Roberts. All reports are investigated.

In the year under review, the hotline received 59 contacts, of which 24 reports were generated (the breakdown of reports is provided below).

Approximately 22% of the reports related to grievances, concerns and allegations requiring human resource and management interventions. A further 21% of the reports focused on preferential, discriminatory and unfair treatment in the workplace.