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Wool Stocktake : AWI Annual Report 2017-18
Code of Conduct and Business Ethics AWI endeavours to be recognised as an organisation committed to high ethical standards in business. The Board acknowledges that transactions connected, directly or indirectly, to Directors and Officers may occur in the ordinary course of AWI’s business since the Board includes members actively involved in the wool industry. Therefore the Board has adopted a Code of Conduct and Business Ethics and a Board Charter to assist it to undertake decisions in an ethical and responsible way without being influenced by improper considerations, and to ensure that AWI’s contracts are at arm’s length commercial terms and are consistent with AWI’s legal obligations. Details of this policy and its implementation are available from AWI’s Company Secretary. Risk Management Policy and Framework There are expectations by key stakeholders, including key business partners and financiers, that risk is being managed efficiently and effectively. In addition, the Commonwealth Government requires AWI to have a Risk Management Plan and a Fraud Control Plan under the Statutory Funding Agreement. Most importantly, a more formal approach to risk and opportunity management serves to enhance the quality of business decision-making and acts as another form of assurance of the quality of our operations and services. Fraud Control Plan AWl is committed to accountability and transparency in conducting its business. The AWl Board believes that a strong corporate governance culture regarding fraud control is one of the cornerstones of this commitment and AWl’s approach is to minimise the incidence of fraud and “other unethical behaviour” through the development, implementation and regular review of a range of fraud prevention and detection actions. The desired outcome of this commitment is the elimination of fraud against AWl programs by staff and other persons. AWI considers that this policy applies to all Directors, employees, agents and contractors. AWl will consider all avenues to recover losses due to fraud against the Company. Staff may also face action for misconduct under AWl’s Code of Conduct and Business Ethics, and restitution for any money or property lost through fraudulent activity will be pursued. The main objective of the Fraud Control Plan is to minimise the risk of fraud against AWl. This objective is achieved through reference to the Commonwealth Fraud Control Guidelines including the adoption of the Australian Standard on Risk Management (ISO 31000) and the Australian Standard on Fraud and Corruption Control (AS 8001-2008) to identify fraud risks and to develop and implement actions to manage those risks. MONITORING AND EVALUATION AWI has had a company-wide Monitoring and Evaluation (M&E) Framework in place since 2011. The framework includes both post and ex ante monitoring and evaluation, meaning prior to any investment decision being made, an assessment is made of the likely outcome and return to growers, and upon completion of each investment, a further evaluation is undertaken to determine the return on investment for growers. AWI’s M&E Framework has been improved since its inception to address the unique technical and marketing context in which AWI operates and to ensure it continues to meet the needs and expectations of AWI’s stakeholders. Monitoring and evaluation are integrated into a comprehensive planning and reporting business cycle, which effectively links the Strategic Plan to the day to day operational activities of the organisation. This means AWI’s programs are monitored and reviewed regularly by AWI’s CEO and executive team and quarterly by the Board to ensure they are delivering on their targets. However, the recent Independent Review of Performance has recommended that AWI’s monitoring and evaluation processes be further improved. AWI has already begun examining ways for this to be carried out. Details of AWI’s M&E framework are available on AWI’s website at www.wool.com/measuring-performance AUDIT AWI continues to maintain a strong focus on accountability and on its internal control environment. As part of AWI’s ongoing governance practices during 2017/18 AWI put the global external audit to tender, and then took the recommendation to change to HLB Mann Judd to shareholders at AWI’s 2017 AGM. The recommendation was approved at the AGM. AWI engages the services of the following leading professional services firms: HLB Mann Judd has been engaged to conduct the external audit and report to AWI shareholders starting with the 2017/18 end financial year accounts. Ernst & Young, HLB Mann Judd and PricewaterhouseCoopers provide specific advice on taxation and other related matters pertaining to AWI and The Woolmark Company, as required. GOOD BUSINESS 61
AWI Annual Report 2016-17