- Organizing Relations with Stakeholder
- Reporting Non-Compliant Practices
- Employee Incentives and Remuneration Policy
1) Organizing Relations with Stakeholder:
The Board shall establish clear and written policies and procedures to regulate the relationship with stakeholders in order to protect and preserve their rights, including the requirements stipulated in Article (83) of the CMA's CG Regulations. In light of this, the Board has developed the following policy:
Stakeholders’ Relation Policy
The purpose of this policy is to outline the guidelines that shall govern Savola Group for issues related to Stakeholder Relations within Savola Group (“Savola” or the “Company”) and enable them to file complaints, grievances and report any violating practices.
Savola’s Board of Directors is committed to the highest ethical standards as Savola desires its stakeholders to have strong faith and commitment towards it. Stakeholders can be defined as individuals or groups of individuals that have a direct or indirect stake in an organization who can affect or be affected by the organization’s actions, objectives and policies. Key stakeholders in an organization include “shareholders, Executive Management, employees, customers, creditors, banks, suppliers, local community and government”. In order to develop successful stakeholder relations, Savola Group shall abide by the following principles:
- Those affected by Savola’s business have the right to be informed about the Company’s activities, participate in a transparent stakeholder engagement process and be involved in issues and opportunities that affect them.
- Stakeholders shall be provided with timely and accurate information about the business.
- Savola Group shall keenly seek out feedback from its stakeholders on its business decisions.
- Savola Group shall encourage stakeholders to define the manner in which they wish to be consulted, and shall strive to remain flexible and responsive to stakeholder preferences.
- Savola Group respects the values and culture of each stakeholder.
- Savola Group shall ensure that the Company’s transactions with Board members and related parties are entered into on terms identical to the terms of transactions with stakeholders without any discrimination or bias.
3) Main Stakeholders
The table below shows the groups of stakeholders and their main interests and impact on Savola:
The Company responsibility towards stakeholders
Savola Group is committed to creating sustainable shareholder value, in order to maximize their investments, achieve reasonable financial returns and act in the Shareholders’ best interest provided for in the Company’s Bylaws in accordance with the relevant laws and regulations.
b) Banks and Other Lenders (i.e. Creditors, Institutional Investors)
Careful attention shall be paid to Savola’s obligations to its banks and financial institutions. Many lenders will have covenants in place that require Savola Group to adhere to predetermined ratios and other requirements in order to satisfy financing arrangements.
Board members need to have a clear understanding of these requirements and ensure that management are appropriately monitoring Savola’s position to ensure these covenants are not breached and penalties or other consequences are not triggered. In addition, care should be taken to establish open communication with Savola’s financiers, engaging them in dialogue on a periodic basis and responding positively to their information needs and requests.
Savola shall respect its creditors and it is important to understand and respond appropriately to the needs and expectations of the shareholders. Savola needs to ensure that it balances the expectations and demands of institutional investors against the interests of shareholders as a whole, and to ensure that there is fair, equitable and consistent treatment of all shareholders.
c) Board members, managers and employees
Savola Group is committed to treating its people (Board members and employees) with dignity and providing equal employment opportunities for all employees in its employment practices, including recruiting, compensation, professional development and promotion. The Board of Savola Group believe in providing safe and healthy working conditions, respecting human rights and respecting employees’ rights. The Board of Savola Group expects its employees to speak out when they see ethical lapses in light of the whistleblowing policy approved by the Board. Board members shall also be aware of the importance of employee support and commitment to enable Savola to achieve its objectives.
d) Customers and Suppliers
The Board shall take an active interest in how Savola handles and resolves customer complaints and not depend solely on management. Pertinent statistics and key emerging issues outlined in customer complaints shall be reported to the Board on a periodical basis.
Savola Group is committed to providing end products of superior quality, excellent services and value-adding solutions. Savola Group seeks to deal with customers and suppliers in a straightforward and honest manner. The Company additionally seeks to build and maintain good relations with both its customers and suppliers and shall ensure the confidentiality of information related to them is protected.
Public expectations require companies to be socially responsible in their operations and dealings with the community. This needs to be considered as part of Savola’s decision-making processes and in the conduct of its business activities. Failure to understand and respond appropriately to relevant issues may have adverse financial, reputational or other consequences for the Company.
As a result, Savola Group is committed to contributing to the overall quality of life wherever it operates and to use resources responsibly to preserve the environment. The Board wants communities to count on Savola’s help in charitable and other community activities.
4) Mechanisms to Resolve Disputes and Complaints of Stakeholders
In the event where a complaint or dispute may arise between the stakeholder and Savola Group other than employees, the stakeholder should contact Savola’s Board Secretary or any other person designated by the Company. Once the Board Secretary or the designated person is notified, the concern shall be forwarded to the Audit Committee for direction, and appropriate actions and decisions shall be made in this regard. The Audit Committee shall ensure that corrective action is taken or recommended in order to adequately resolve the issue in a manner that guarantees fair investigations and actions. The Company may also develop additional detailed policies and procedures, along with the established policy, to ensure the effective implementation.
If a dispute arises between Savola Group and any of its employees, the Grievance Committee established by Savola Group for this purpose shall handle all cases in line with the Company’s grievance policy, along with the established policy, to ensure the effective implementation. Where the resolution is not satisfactory to the respective parties, the case could be referred to the RNC. In conducting the necessary investigations, the Committee shall also take into account conflicts of interest and avoid them, in the light of the existing policy of grievances and escalation mechanisms within the Group.
5) Review and Amendments of this Policy
To ensure that Savola Group operates in a manner consistent with this policy, the Board shall, periodically, conduct a review and assess for the effectiveness and adequacy of this policy and amend it when needed.
2) Reporting Non-Compliant Practices:
The Board shall, upon the proposal of the Audit Committee, establish the necessary policies or procedures to be followed by stakeholders, including those who submit complaints or report infringing practices, taking into account Article 84 of the CG Regulations issued by the CMA.
3) Employee Incentives and Remuneration Policy:
Savola Group is keen to motivate its employees and treat them fairly in the light of this policy and its human resource policies, which guarantee the employee a mechanism for development and promotion without discrimination or bias, as the Company develops programs to develop and motivate the participation and performance of its employees. In the light of this, the RNC shall review the salary scale specified for all employees and Senior Executives and the incentive program and plans on a continuous basis and adopt them on the recommendation of the Executive Management, in a manner that does not contradict with the Labor Law and any applicable regulations. In this respect, employee rewards, including Executive Management, shall include:
- Basic salary (paid at the end of each month and on a monthly basis);
- Allowances which include, but are not limited to, housing allowance, transportation allowance, education allowance, and telephone allowance (as per the grades established by the internal human resources policy);
- Medical insurance benefits for employees and their families;
- Life insurance policy (including work injuries, partial and total disability and death at work);
- Annual bonus linked to the performance indicators according to the annual appraisal in this regard;
- Short-term incentive schemes associated with exceptional performance, and long-term incentive schemes such as equity options programs (if any) adopted by the Company in light of its Bylaws and relevant regulations;
- Other benefits including, but are not limited to, annual leave, annual travel tickets, executive airport services to Executive Management team, and end of service benefits according to the charter and human resources policy adopted by the Company;
- Employee housing loan program in light of the internal policy adopted in this regard;
- Plans, programs, and general guidelines for Senior Executive bonuses shall be approved by the RNC; and
- The CEO shall implement the bonus policy for staff and Senior Executives in the light of the plans, programs and general guidelines approved by the Committee.
 The whistleblowing policy and procedures have been approved by the Board at its meeting on 2/11/2017.
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