Critical anchors

We actively cultivate an ethical workplace culture, ensuring our ethics-related principles are clearly understood and consistently practised by all employees. As a member of the Coalition for Ethical Operations, Tiger Brands supports industry-wide efforts to combat unethical behaviour and corruption. Our ethics policies, including the code of conduct, are regularly reviewed, updated and made accessible via the company intranet. We raise ethics awareness through ongoing internal communications, using posters and banners online and across our sites. These policies are reinforced through regular ethics training, prompt ethics line investigations and internal reports on ethical behaviour trends and actions taken against violators.

We provide regular ethics training to employees, including specialised instruction on human rights and combating corruption and bribery, particularly for senior managers. Training is delivered both in-person at various sites and online via a digital e-learning platform. All employees at junior management level and above must complete an annual e-learning module on our code of conduct, and new hires attend an in-person induction on compliance and ethics. Mandatory ethics training began in August 2024, with the deadline extended to 31 January 2025. Our corporate communications department organises annual ethics awareness activities and anti-bribery and anti-corruption training is conducted every two years for senior management (above Grade DL) in risk-prone roles.

Performance

In 2024, 18% of employees completed mandatory online ethics training. This marks a decrease from 2023, due to restructuring for operational reasons. The deadline to complete the training is 31 January 2025. After this date, consequence management will be implemented for those who fail to complete the mandatory training.

Human rights are a key concern for Tiger Brands, particularly within our supply chain where exposure to risk is highest. We are committed to advancing and safeguarding human rights across our operations and supply chain, continuously refining our management practices. Our human rights policy, last updated in 2022, focuses on protecting individual rights as well as the group's assets and reputation, with the next review scheduled for 2026. The policy outlines principles for monitoring, managing and reporting human rights impacts and risks, in alignment with our code of conduct.

It applies to our operations, suppliers, employees, temporary staff, contractors, service providers and consultants, and is publicly available at www.tigerbrands.com.

Human rights awareness is embedded in our annual communications programme, including the promotion of our ethics line for whistle-blowing and reporting potential abuses. This focus extends to mandatory ethics training and new employee inductions, which include human rights content from our code of conduct, alongside online learning modules. We do not audit third-party suppliers for human rights compliance but monitor media and corruption watch reports for potential abuses. Internally, we audit compliance with our ethics and human rights policies within our own operations through our combined assurance plan.

Performance

In 2024, we had no human rights infringements or complaints reported through our ethics line. Six cases of discrimination were lodged, with two found unsubstantiated. Four cases were closed, one of which was addressed as a grievance. In all cases, appropriate disciplinary action was taken where necessary. No monetary losses were incurred, as no legal proceedings related to human rights violations were initiated.

We enforce a zero-tolerance policy for any violations of our code of conduct, including bribery and corruption. Our anti-bribery and anti-corruption policy explicitly prohibits lobbying, facilitation payments and political donations. The declaration of interest policy requires employees to disclose potential conflicts of interest either annually or as soon as they arise. Additionally, our gifts, entertainment and hospitality policy outlines guidelines for giving or receiving such items, with disclosure required.

We maintain a customised fraud risk register and incorporate an informal fraud risk management programme into our combined assurance plan, using specific analytics to identify potential risks. Compliance audits, including reviews of our gifts policy and code of conduct, form part of this process. Results are reported monthly to the Exco and quarterly to the board. We also use a procurement tool to screen current and prospective suppliers for conflicts of interest, sanctions, criminal activity, or other ethical concerns. Anti-bribery and anti-corruption training is conducted every two years for senior management in risk-prone roles.

Performance

In 2024, there were two incidents of corruption, with no cases currently under investigation. In both cases, appropriate disciplinary actions were taken.

Promoting, supporting and protecting whistle-blowers is crucial for fostering an ethical culture, especially given the risks of fraud, bribery, crime and corruption in South Africa and Africa. By providing a secure channel for reporting unethical behaviour, we empower individuals within our network to act responsibly and enable the company to address violations that could undermine our integrity and reputation. Our approach aligns with South Africa's Protected Disclosures Act, and our whistle-blowing policy enforces a strict non-retaliation principle.

We offer a whistle-blowing facility for secure, anonymous reporting of unethical behaviour, dishonesty or fraud related to our business, personnel or relationships. Managed independently by Tip-offs Anonymous, a division of Deloitte, the facility includes a 24/7 ethics line supporting all local languages, accessible to employees, suppliers, customers, consumers and the public. Employees are regularly reminded of the ethics line's confidentiality and availability via corporate communications. Consumer product complaints are handled separately (see here).

Responsibility for ethics line reporting rests with the group Lead Council, following our ethics investigation framework. This framework streamlines the screening and reporting of complaints, speeding up investigations and ensuring prompt resolution. Complaints are received by the internal audit and risk director, group compliance director, employee relations director, chief financial officer and chief legal officer. Each complaint is assigned to an investigator within three days, with formal reports submitted to the relevant line manager and chief officer. When complaints are received from Deloitte, they undergo a triage process by the internal audit director, employee relations director and group compliance director, and are assigned for investigation based on the tiering system outlined in the ethics investigation framework.

Complaints are categorised (e.g. corruption, fraud, health and safety, HR, theft, human rights, unethical behaviour) to streamline responses and facilitate deeper analysis and learning. A monthly ethics report, detailing the status of all cases, is presented to Exco and tabled at SETCO and audit committee meetings. We also share ethics report outcomes internally to encourage ethical behaviour and promote the use of the whistle-blowing hotline.

Performance

In 2024, 99 cases were reported via the ethics line. Of these cases, 57 have been closed and 32 were found to be unsubstantiated, with 10 still under investigation. Notably, code of conduct complaints have continued to rise, particularly within the Bakeries division. Remedial actions have been implemented and criminal proceedings initiated where applicable.

Our tax objective is to protect and enhance shareholder value by adhering to tax laws in the jurisdictions where we operate, aiming for full compliance. Good governance is key, and we prioritise embedding robust and relevant tax controls within the group's tax framework. By continuously monitoring the evolving tax landscape, we ensure compliance with all regulations while maintaining the integrity of our reporting.

Our tax objectives are rooted in our corporate values, guiding us to uphold and protect our reputation. We avoid transactions that could compromise our integrity and remain committed to openness and transparency in our dealings with tax authorities.

Tax compliance is a high priority for the group, as is paying the right amount of tax at the right time. While we do not have a formal tax strategy, we maintain a strong governance framework and effective controls to mitigate risk, supported by highly skilled tax specialists who ensure the function is well-managed.

Our tax controls undergo annual internal audit reviews, covering all taxes, including income tax, VAT, carbon and sugar taxes. These controls, co-developed with the group's internal audit team, are designed to mitigate tax risks across the group. External auditors independently test our controls each year, ensuring compliance with the governance framework. Documents for testing are selected through an independent sample by the auditor. The audit committee oversees all group tax matters and receives reports on any control failures.

Performance

In 2024, the group's effective tax rate was 28,2% (before impairments, non-operational costs and income from associated companies), compared to 29% in 2023.

We prioritise building a security-smart digital culture to protect customer information and maintain trust. As technology and cyber security threats evolve, we continuously improve our security practices and capabilities, learning from past experiences. Our approach aligns with the Protection of Personal Information Act (PoPIA) 2013 and the EU General Data Protection Regulations (GDPR), ensuring full compliance.

We have developed roadmaps to enhance cyber resilience across the business, including manufacturing plants. These are driven by clear management commitments and overseen by the risk and sustainability and audit committees. The group information officer ensures ongoing PoPIA compliance and reports progress to the risk and sustainability committee. Independent assessments are regularly conducted to measure our performance against industry standards and any gaps identified are prioritised and addressed. Cyber security is also integrated into our business continuity planning and scenario analysis. Third-party compliance with cyber security and business continuity requirements is monitored, and remedial actions are tracked through our governance committees.

Training and awareness are key to managing insider threats and strengthening our cyber security. We run quarterly campaigns on specific topics through newsletters, videos, podcasts and email inserts. Our defined roadmaps embed cyber security principles across the organisation. To ensure readiness for potential cyber-attacks, we conduct regular cyber-incident simulations as part of our training at all levels.