This was achieved through implementation of training initiatives focusing on certification-based education, compliance training and executive management programmes. Additionally, an all-encompassing diversity training curriculum was rolled out to all employees within the Group.

During the period, we further assisted seven employees with bursaries to further their education in the field of their existing positions and career aspirations. All bursaries were rewarded on condition that the staff member(s) has a retainer in place and the business sees a positive return on investment. 

Transformation both, within the Group and in our society at large, has always been and remains a key driver of AYO’s socio-economic development activities. We take our responsibility in this regard seriously and aim not simply to be compliant, but to create value within our communities and society and to pursue initiatives with real tangible and measurable impact in the lives of their intended beneficiaries.

A lot of thought and effort was put into indirect empowerment during the period with the Company spending a total of R9.7 million on enterprise, supplier and socioeconomic development initiatives. 

Our investment into the Inyosi Fund, which disburses ED loan funding to black-owned ICT businesses, contributed to numerous entities, aligned to the broader scope of products and services required in the industry, and ultimately resulted in strengthening of AYO’s value chain. This investment was supplemented with a grant made to a specialised entity for the development of robust cyber forensic investigations infrastructure including digital laboratories, web-based training, data collection and technology assessment. The two initiatives brought AYO’s total investment in enterprise development projects to R5.5 million.

The Group pioneered a supplier development programme in the previous reporting period, designed to improve the economic participation of black-owned SMEs into its supply chain by providing them with business development support services and tailored financial solutions. The programme was particularly successful and its implementation continued in the 2020 financial year, assisting beneficiary businesses to scale up and compete with larger, more established ICT providers. A total of R2.5 million was invested in the initiative during the period.

A further R1.7 million was spent on socio-economic transformation projects during the year that foster technology learning culture within disadvantaged communities and provide the necessary tools and resources to prepare learners for the work environment. The projects were implemented in symbiotic partnerships with Sakhikamva Foundation, SAME Foundation and QASA and aimed to provide comprehensive support of beneficiary communities, focusing on all aspects of work readiness from infrastructure (building and equipping school science laboratories) to economic support (offering special bursary grants to high-achieving young learners) and integrated job-shadowing opportunities.

Of course, we couldn’t ignore the impact of the COVID-19 pandemic on these vulnerable communities and supplemented our education-focused investments with generous donations of food parcels, grocery vouchers and PPE to community-based organisations.

In terms of direct empowerment, AYO has remained an exemplary corporate citizen, achieving its employment equity objectives once again in 2020. Yet, the committee was of the view that even more could be done to enable transformation and agreed on even more stringent targets for the future, aiming for 55% female and 70% black representation at Board level.

Despite all of the above successes, the Company’s B-BBEE score was reduced to level 4 during the reporting period, stemming from unsatisfactory achievement of procurement targets. This performance was driven by procurement with respect of a large contract AYO was delivering on, which required purchases’ flow via a supplier which was not recognised and accredited in terms of the B-BBEE Act. With the termination of the said contract at the end of the reporting period, we look forward to significantly improving the Company’s B-BBEE score to the previously achieved level 3, or even level 2, in the upcoming year.

The establishment, promotion and monitoring of ethical culture within the organisation is another key deliverable for the committee and I am very proud of the progress we have achieved in this respect. Several programmes were introduced and implemented during the period with the objective to integrate ethical behaviour into the operational processes and conduct of all employees within the Group.

AYO seeks to uphold the 10 principles of the United Nations Global Compact and serve as an example to peer organisations in terms of ethical leadership and operations. Thus, an exhaustive list of legislation literature was considered to develop an ethical governance framework, consisting of a Code of Ethical Conduct governing the behaviour of all level employees as well as external partners, a Way We Work Policy facilitating the implementation of the Global Compact principles in the business’ operations and an Indicators-Based Monitoring Plan, which enables the committee to objectively and accurately assess the implementation of adopted ethical behaviour principles. The framework encompasses all aspects of ethical corporate citizenship and follows a multi-dimensional monitoring approach covering clarity with regards to policies and procedures, positive role modelling, transparency, approachability, feasibility, commitment and enforcement.

A notable development in the promotion and encouragement of ethical behaviour has been the establishment of a fraud cracker hot line, managed by an external third-party provider. We believe this new initiative, in conjunction with the newly adopted Anti-Corruption and Bribery Policy, will assist in the timely detection of unethical practices, should such practices take place, protection of whistle-blowers and entrenchment of the honourable ethos we pride ourselves in.

In closing, I would like to thank the members of the committee for their dedication, input and hard work in 2020. They have proven to be a highly devoted team, achieving high levels of attendance to all four committee meetings, despite the disruptions experienced during the national lockdown, participating actively in the affairs of the committee and going beyond the call of duty to promote good corporate citizenship throughout the organisation. They have more than delivered on the committee’s tenure to lead transformation within the Group and to ensure that AYO is and remains a committed, socially responsible corporate citizen, contributing generously to the creation of value. I am confident in my report that the committee has fulfilled its mandate as prescribed by the Companies Regulations to the Companies Act and there are no instances of material non-compliance to disclose. I congratulate them on a successful term and look forward to reporting on many more constructive implementations in 2021.

Dr Dennis George
Chair of Social, Ethics and Transformation Committee
22 December 2020

SOCIAL, ETHICS AND TRANSFORMATION COMMITTEE MEETING STATISTICS