INTEGRATED ANNUAL REPORT FOR MULTICHOICE SOUTH AFRICA HOLDINGS (PTY) LTD AND PHUTHUMA NATHI INVESTMENTS (RF) LTD

GOVERNANCE AND ACCOUNTABILITY Application of King IV A disciplined reporting structure ensures the MultiChoice South Africa board is fully apprised of subsidiary activities, risks and opportunities. All controlled entities are required to subscribe to the relevant principles of King IV. Business and governance structures have clear approval frameworks. Compliance and progress are monitored jointly by the risk and audit committees and reported to the board. In the review period, we effected system and process changes to align the group to King IV’s principles. A comprehensive analysis of our governance framework against King IV has been conducted and considered by the audit and risk committees. Our full King IV application report, detailing how we apply King IV principles, can be found on our website. Business ethics Our code of business ethics and conduct appears under the corporate governance tab on the MultiChoice Group Limited website, www.multichoice.com . This code is reviewed annually and applies to all directors and employees in the MultiChoice group. Ensuring group companies adopt appropriate processes and establish supporting policies and procedures is an ongoing process. Management focuses on policies and procedures that address key ethical risks, including potential conflicts of interest, accepting and giving inappropriate gifts (including entertainment) and unethical business conduct. A key area of focus in the reporting period was the creation of awareness and continued integration of the code of ethics and business conduct in the business. Planned future focus areas include improved reporting to the board and audit committee. The board is the overall custodian of business ethics. The disciplinary codes and procedures of the various companies are used to ensure compliance with policies and practices that underpin the overall code of business ethics and conduct. Unethical business behaviour by senior staff members, as well as the manner in which the company’s disciplinary code was applied in such instances, is reported to the remuneration and equity committee, which assists the board in carrying out its duties in relation to business ethics. The group is committed to conducting its business in compliance with the law, with integrity and with proper regard for ethical business practices. Whistleblowing facilities enable employees to anonymously report unethical business conduct. Corporate citizenship The board has approved the sustainable development policy which incorporates corporate citizenship considerations. The group’s values, strategies and purpose are aligned with corporate citizenship principles. As MultiChoice South Africa expands its business, it aims to contribute to the communities in which it operates, develop its own people, contribute to general economic prosperity and minimise its impact on the environment. MultiChoice’s approach is structured around the six capitals. The various areas are monitored and measured in accordance with legislative requirements, good governance guidelines, CORPORATE GOVERNANCE REVIEW continued 68  MultiChoice South Africa Holdings Proprietary Limited integrated annual report 2019