Safaricom - 2021 Sustainable Business Report

34 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 / STANDING TOGETHER: GOING BEYOND //// OUR MATERIAL TOPICS / OUR STAKEHOLDERS / KPI SUMMARY GOVERNANCE, BUSINESS ETHICS AND RISK REINFORCING OUR RESPONSIBILITY TO KENYAN SOCIETY Good corporate governance practices are essential to the delivery of long-term, sustainable stakeholder and shareholder value. The ability to generate long-term value is based on good corporate governance which helps to regulate risk. Implementing strong governance structures including a governance code, an ethical culture and a robust risk management framework are foremost in our minds as a responsible corporate citizen. Our focused adherence to governance and ethics underpins our risk management framework. We also work beyond our own business to stand together with society and drive behavioural change through effective collective action initiatives. As examples, our business partners are included in ethics training. We also play an active role in collaborative advocacy action that promotes ethics and integrity through quarterly fraud forums for financial institutions. In FY21 these forums were attended by 233 participants. Our priorities in terms of governance, business ethics and risk in FY21 were as follows: • Further embedding a positive risk culture across our organisation • Customer obsession • Data privacy and protection • Cyber security • Crisis management • A coordinated COVID-19 response (described on pages 8-10 of this report). OUR GOVERNANCE STRUCTURE The cornerstones of our governance structure are the Governance Charter and our Board of Directors who are accountable to all stakeholders. To monitor adherence to governance procedures, members of our Board meet a least four times a year and undertake collective and individual performance assessments at least once annually. By helping to build effective, accountable and inclusive institutions at all levels (SDG16), through partnerships within the wider business community (SDG17), we are enabling sustained, inclusive economic growth (SDG8). This, in turn, is driving progress, creating decent jobs for all and improving living standards. OUR HIGHLIGHTS • Ongoing leveraging of machine learning and cyber threat intelligence. • Robust cyber security programme in place. • Establishment of specialised fraud management squads. • Development of an in-house solution to detect and respond to fraud impacting financial institution partners interacting with M-PESA. • Quarterly fraud forums for financial institutions were attended by 233 participants. Please refer to the ‘Our Governance’ section of the 2021 Safaricom Annual Report at https://www. safaricom.co.ke/investor-relation/financials/reports/annual- reports for more information regarding our governance structures and reporting processes. BOARD COMPOSITION The Safaricom Board comprises 11 Board members reflecting a 35% female and 65% male split: MALE FEMALE EXECUTIVE DIRECTOR / CEO COMPANY SECRETARY NON-EXECUTIVE DIRECTORS