CORPORATE CITIZENSHIP

MANAGEMENT WAS ASKED TO FOCUS ON APPLYING "COST LEADERSHIP PRINCIPLES" ACROSS THE BUSINESS. IT WAS NECESSARY TO RESTRUCTURE SOME AREAS OF THE GROUP'S BUSINESS AND, REGRETTABLY, THIS RESULTED IN SOME RETRENCHMENTS ALTHOUGH STAFF WERE REDEPLOYED INTO OTHER AREAS WHEREVER POSSIBLE. R51 MILLION WAS SPENT ON RESTRUCTURING IN THE YEAR.

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Responsible Care*

Responsible Care* is the global chemical industry's voluntary initiative for continuous improvement of performance in safety, health and environmental practices. It is a public commitment to responsible management and stewardship of products and services throughout the lifecycle of products. It is also the vehicle used by the industry in its pursuit of improved performance in the areas of safety, health, the environment and product stewardship.

Responsible Care* was launched by the Canadian Chemical Producers' Association in 1984 and has now been adopted in 53 countries. The Chemical and Allied Industries' Association, chaired by an executive director of AECI, is the custodian of Responsible Care* in South Africa. The Responsible Care* Standing Committee, currently chaired by an AECI senior manager, is responsible for guiding the programme. In line with the guidelines of the International Council of Chemical Associations, the South African programme is based on eight fundamentals:

  1. a formal commitment by each member company to a set of guiding principles;
  2. a series of codes, guidance notes and checklists to help companies fulfil their commitment;
  3. the development of indicators against which improvements in performance can be measured;
  4. open communication on safety, health and environmental matters with interested parties, both inside and outside the industry;
  5. opportunities for companies to share views and exchange experiences on implementing Responsible Care*;
  6. consideration of how best to encourage all member companies to commit themselves to, and participate in, Responsible Care*;
  7. a title and logo which clearly identify national programmes as being consistent with, and part of, the Responsible Care* concept; and
  8. procedures for verifying that member companies have implemented the measurable or practical elements of Responsible Care*.

AECI, AEL and all the companies in Chemserve are signatories to Responsible Care*. In South Africa, signatories have their compliance with the management practice standards verified by third party auditors. The majority of signatory companies within the AECI Group have been audited successfully against these standards.

In the broader arena of broad-based corporate responsibility, it was most pleasing that AECI was included in the JSE Limited's Socially Responsible Investment Index for the first time in 2009.