Anti-bribery and corruption

We prohibit fraud, bribery and corruption in any form, and comply with applicable anti-bribery and corruption laws wherever we conduct business.

We believe that through the fair allocation of resources, we create value and can make a difference to the communities where we operate.  However, corruption, if not appropriately addressed, negatively impacts the lives of people in our host communities by depriving them of needed benefits, driving up the costs of public services and works, misallocates resources and wastes opportunities that arise from resource development.  It also undermines the integrity of governments, including through the improper influencing of government decision making.  

As part of our commitment to act ethically, responsibly and lawfully, we operate a risk-based anti-bribery and corruption (ABC) compliance program which our Chief Executive Officer, Lead Team and Board support.  

Our Business Integrity team is responsible for the program design (including relevant ABC policies and procedures), implementation, risk assessment work, monitoring, training, incident response, continuous program improvement and related reporting to our Lead Team and Board.  Our Business Integrity team also investigates any identified actual or potential breach of our ABC policies and procedures.  Our internal reporting processes also involve informing our Risk and Audit Committee of any material ABC concerns, including material breaches of our ABC policies and procedures.

In November 2019, we published with an updated Code of Business Conduct, our new ABC Policy.  This ABC Policy supports our Code, is available to everyone and meets the 4th edition of the ASX Corporate Governance Council Principles and Recommendations, well ahead of their effective date, demonstrating our commitment to high standards of corporate governance.

Our ABC compliance program: 

• Includes performing ABC risk assessments.  Such risk assessments form a critical part of our ABC compliance program, allowing us to focus our resources on the highest risk areas and we adopt adequate controls to mitigate these risks.

• Focuses particular attention on third party representatives who interact with government officials on our behalf. Our Code contains our anti-corruption expectations available to everyone, including our third parties who represent us. Our Code is supplemented by additional internal ABC requirements in related standards and procedures.  We have processes requiring our Business Integrity team to pre-clear certain of our third party representatives before they are engaged.   As part of this process, our Business Integrity team conducts enhanced risk-based anti-corruption due diligence on them.  We also include suitable ABC clauses in our standard contracts with such third party representatives. 

• Also requires our Business Integrity team to pre-approve:
  • offering, giving or receiving above modest value gifts, entertainment and/or hospitality;
  • offering or giving community and charitable contributions, and sponsorships;
  • attending any paid political event or activity; and
  • offering or giving any other thing of value to a government official.

• Encourages our People to speak up and report ABC concerns.  We have numerous options available for reporting such concerns, including through our confidential EthicsPoint reporting hotline.  People can also report anonymously through this hotline. We do not tolerate any retaliation against anyone for reporting such a concern.  Our Business Integrity team assesses, and if necessary, appropriately manages the investigation of any such concerns.

• Includes ABC training for identified employees at higher risk of exposure to bribery and corruption.

During FY19, South32 was not identified in any anti-corruption regulatory investigations or legal actions pending or completed during the reporting period.