The social and ethics committee ensures that the business takes responsibility in a social and ethical manner. It can therefore be referred to as the social conscience of the business and it is responsible to ensure that the company behaves responsibly in a social, commercial and environmental way.
Who needs a Social & Ethics Committee?
Who makes up a Social & Ethics Committee?
The Committee shall be appointed by The Board and shall comprise of a Chairman and at least 2 other members. The Board shall have the power at any time to remove any members from the Committee and to fill any vacancies created by such removal.
The majority of the members of The Committee shall be managers within the Company.
The Board shall appoint The Committee Chairman who shall be independent fromthe Company (such as a non-executive independent director) and determine the period for which they shall hold office. The Chairman of the Committee shall not be Chairman of the Board, but the Chairman of the Board may be a member of the Committee.
If a regular member is unable to act due to absence, illness or any other cause, the Chairman of The Committee may appoint another manager of the Company to serve as an alternate member having due regard to maintaining the required balance of executive and independent non-executive members.
Functions of the Committee
- Company’s socio-economic activities
- The Board regularly
- Shareholders @ AGM
How can we help?
We at BizArmour are very knowledgeable when it comes to social and ethics committees and can help your company as follows-
- Draft the committee charter for your organisation
- Establishing the committee;
- Conduct training for your staff educating them about the committee;
- Assist with preparation of board reports; and
- Chair the committee as an independent chairperson.
The information shared on this article/blog/vlog should be read and understood within the current legal framework of South Africa. It is meant purely for educational discussion and does not amount to legal advice. For specific legal advice, please consult a legal practitioner prior to application.