Safaricom 2018 Sustainable Business Report

32 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT 2018 SUSTAINABLE BUSINESS REPORT Business partner ethics training We continued to promote ethical business practices among our business partners during the year. 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: honest business practices; adherence to the Know Your Customer (KYC) campaign; ethical selling; fraud awareness; bribery and corruption. We also continued to mandate that suppliers sign up to the Code of Ethics for Businesses in Kenya and will not renew their contracts unless they do so. Anti-corruption collaborations We continued our work tackling corruption and enhancing governance and transparency both internally and within our broader business ecosystem with the United Nations Global Compact (UNGC) and the B-Team — Africa during the year. Highlights of our collaboration included the finalising of the Anti-Corruption SME toolkit, which is now ready for dissemination, and a review of the gaps in the Kenyan Private Sector Anti-Bribery Act, which has identified areas within the guidelines (procedures) described by the Act that could be more specific and detailed. REGULATORY COMPLIANCE We ensure that we remain compliant with regulatory requirements by assessing our processes against all applicable laws and regulations. We also engage with our regulators proactively on all issues through a variety of channels (please see the Stakeholders section on page 56 of this report for further information about these important relationships). Our engagement with regulatory bodies and compliance with regulatory requirements is managed by the Regulatory and Public Policy Department. Communications Authority Quality of Service (QoS) compliance The Communications Authority of Kenya (CA) is mandated by government to ensure that mobile network operators are delivering services of adequate quality. Accordingly, the CA tests every operator annually against a series of Quality of Service (QoS) measures it has developed. Operators that fail to meet any of these criteria are fined. The results of these tests are made available to the public and published on the CA website. Non-compliance register FY18 FY17 FY16 FY15 Number of fines for non-compliance 0 1* 1* 1* Cost of fines for non-compliance (KES) 0 293,527,836 157,000,000 500,000 Non-monetary sanctions for non- compliance 0 0 0 1 Legal actions lodged for anti- competitive behaviour 0 0 2† 0 * Communications Authority of Kenya (CA) Quality of Service (QoS) fine † Escalated actions lodged before the Competition Authority (outcome pending) At the time of going to press with this report, the CA had not levied or imposed any fines on Safaricom. The CA introduced an enhanced framework for the measurement of the QoS of mobile networks halfway through the year. As part of this enhanced framework, the CA has introduced a new Quality of Experience (QoE) measure. The new S D G 1 7 S D G 9