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OUR MATERIAL MATTERS

| GOVERNANCE, RISK & REGULATION |

NETWORK QUALITY | ENVIRONMENTAL RESPONSIBILITY | INNOVATION |

25

ETHICAL BEHAVIOUR

Our ethics and values are the principles and standards that guide our behaviour

as employees and individuals. We use an independent ethics perception survey

and preventative measures like our continuous ethics awareness and staff anti-

corruption training programmes to monitor and manage the ethical culture within

Safaricom.

Ethics awareness sessions

We conduct regular ethics awareness sessions with staff every year. The focus

of these sessions is to address any concerns revealed by the ethics perception

survey. The survey is an independent assessment of the opinions of our internal

and external stakeholders conducted by the Ethics Institute of South Africa every

two years. The latest survey was conducted during the previous reporting period.

Topics covered during ethics awareness sessions throughout the year included

sexual misconduct, gifts and conflicts of interest.

Staff ethics training

Every member of staff is expected to attend ethics training at least once a

year. Most of the training is undertaken through face-to face-sessions and

supplemented by e-learning courses. The awareness training is tailored to address

the specific ethics risks faced by the attendees. For high risk departments, the

training focuses on anti-corruption and bribery.

Anti-corruption preventative measures

FY17 FY16 FY15

Ethics and anti-corruption staff training (% of total staff)

98%

98% 94%

High risk departments*

98% 98% 97%

Medium risk departments

98% 98% 83%

* Due to the nature of their work, these departments are more susceptible to fraud

† We consider 98% to be satisfactory, given the logistics of planned and unplanned staff absences.

We are pleased to report that we achieved a 98% attendance rate again this

year. This is attributable to an understanding across the business regarding the

importance of the sessions. We are finding that process owners now readily

welcome the sessions and, in some cases, even request them.

Business partner ethics training

We continued to promote ethical business practices and principles throughout

our value chain and the wider business ecosystem in Kenya during the year.

Our CEO is a committed member of the Businesses Against Corruption in Kenya

(BACK) initiative and we participated in the Siemens Anti-Corruption Collaborative

Action initiative. We also reviewed the syllabus and training materials used by the

UNGC for its good governance and anti-corruption training sessions for small-

to-medium sized businesses. We held ethics sessions and fraud training with our

M-PESA agents, dealers and suppliers. We supplemented the sessions with ethics-

related newsletters. Topics covered included anti money laundering, how to

safeguard against fraud and the new Bribery Act. We also continue to make it

mandatory for our suppliers to sign up to the Code of Ethics for Businesses in Kenya

(contracts are not renewed unless they do so) and, to date, 317or 98% of suppliers

with running contracts have signed up.

SDG 16

SDG 8

SDG 17