OUR GOVERNANCE

Driving Value Creation

Social, Ethics and Transformation Committee (SETCO)

Committee purpose and how it contributes to value creation

The committee’s main responsibility is to support the Board in carrying out its independent oversight duties with regard to matters of safety, security, health, the environment, society, ethics, transformation, and sustainable development, as well as stakeholder relations. It also ensures that the Institute upholds good corporate citizenship principles and conducts its operations in an ethical and sustainable manner.

Chairperson
  • Yasmin Forbes (until 13 June 2024)
  • Sibonelo Cyril Madiba (from 13 June 2024)
Members of committee in the period 1 January 2024 to 31 December 2024 and attendance
  • Yasmin Forbes (from 1 June 2023) (100%)
  • Alice le Roux (until 13 June 2024) (100%)
  • Sibonelo Cyril Madiba (from 26 May 2022) (100%)
  • Akash Singh (from 13 June 2024) (67%)
  • Babalwa Bekwa (from 13 June 2024) (67%)
Meeting attendance

86.8%

Declaration

The committee met six times and reports that for the year ended 31 December 2024, it is satisfied that it has fulfilled its responsibilities in accordance with the Companies Act, the Board Charter, the Committee Terms of Reference, King IV™ and other applicable standards and codes.

Key focus areas and value creating activities for the period under review
Trust Restoration
  • The proof-of-concept for the establishment of the Centre for Audit Quality (CAQ) as a SAICA-controlled entity was finalised and approved
  • Anti-Money Laundering (AML): SAICA continues to engage with regulators about understanding laws, supporting members, offering the Compliance in Practice series and Techtalk snippets on AML topics, developing certification for trust accounting officers to address risks, and searching for AML compliance software for small businesses to suggest to members
Disciplinary
  • The disciplinary processes were monitored and an independent review of SAICA’s disciplinary processes has been commissioned for improvement of effectiveness
  • A new disciplinary case management system was deployed to assist with effective case handling
Sustainability
  • The Integrated Sustainability Plan (ISP) included sustainability reporting, natural capital, climate change, sustainability events, submissions, guides, and stakeholder engagement. Creating a roadmap for the implementation of the International Sustainability Standards in South Africa received focus
  • SAICA continued to hold its annual Climate Change Conference with representatives from key stakeholders in the sustainability landscape in attendance
  • A sustainability framework is being developed, linked to SAICA’s overall strategy, to enable the organisation to contribute to the UN Sustainable Development Goals
Member Engagement
  • The main functions included community-building activities and projects aimed at enhancing member experience. Key surveys were performed in this regard to better inform the initiatives
Regulations
  • The committee considered the following constitution and by-law amendments to the Board:
  • The elevation of the National Public Sector Committee from an Interest Group to a Prescribed Committee (recommended by SETCO 8 August 2024 and approved by Board 17 September 2024) – in line with SAICA’s focus on this sector in its 2024–2028 Strategy
  • The committee considered and recommended to the Board the alignment of the SAICA Code of Professional Conduct to the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics
B-BBEE
  • SAICA’s target is set to maintain a Level 4 scorecard. An improved score was attained, and the external verification audit was concluded at a Level 2. The development of a clear roadmap for the attainment of SAICA’s B-BBEE targets is being considered
  • Preferential Procurement, Enterprise Development and Socio-Economic Development elements have been consistent in favourable points achieved in the past three financial years
Employee Relations
  • Employee relations matters remained stable during the 2024 financial year, with a minimal number of matters resulting in Commission for Conciliation, Mediation and Arbitration (CCMA) cases. Some of the employees who departed the organisation included senior staff
  • The committee has satisfied itself that the employment relations environment is sound and that adherence to the United Nations Global Compact principles on human rights and labour was ensured
Management reported regularly on SAICA’s standing in terms of the principles relating to:
  • Stakeholder engagement
  • Good corporate citizenship
  • Management of Ethics that is both effective and consistent, with updates provided through the Integrated Ethics Plan (IEP) progress report
  • Employment Equity in terms of Labour and Employment
  • Occupational Health and Safety
  • Sponsorship, attractiveness and transformation initiatives
  • B-BBEE Programme relating to transformation in skills and supplier development
  • The Organisation for Economic Co-Operation and Development (OECD) principles regarding corruption:
  • Monitoring and implementation of the anti-corruption plan
  • Ongoing leadership intent programme – whistleblowing measures remain in place
Future focus areas 2025
Audit Reform
  • Monitor the implementation of the CAQ proof-of-concept
Disciplinary
  • Complete the independent review and monitor the implementation of the recommendations
  • Monitor the utilisation of the case management system for more effective case handling
Sustainability
  • Implementation of roadmap for adoption of the International Sustainability Standards in South Africa
  • Finalise and implement SAICA’s entity sustainability framework
Member Engagement
  • Implementation of initiatives to address the improvement areas identified by the member surveys for an effective member experience
Regulations
  • Monitor the implementation of the changes in the constitution and by-laws outlined above as well as the constitutional changes that may be required as a result of the recommendations of the Governance Review
B-BBEE
  • Maintain the consistency on Preferential Procurement, Enterprise Development and Socio-Economic Development elements, as well as explore improvement areas
  • Conclude the development of a clear roadmap for the attainment of SAICA’s B-BBEE targets and monitor its implementation
Reporting Matters
  • Monitor SAICA’s standing on the matters for regular reporting outlined above
Risks
Capitals
King IVTM
TrustTrust
Stakeholders

Internal: CEO, EXCO, Company Secretary, National Council, MANCO and SAICA-controlled entities
External: IRBA and other regulators

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Disciplinary Matters