The EOH governance framework arises from the fiduciary obligations and responsibilities of directors as defined by the Companies Act and King IV best practice principles of oversight and control. It is based on the accountability and line of authority and is applicable to all businesses in the Group to ensure the governance objectives are met. The seven pillars of EOH's governance framework represent the key processes or mechanisms applied to effectively uphold, sustain, defend and enforce the ethical values of good governance throughout the Company.

8 GOVERNANCE PILLARS

The EOH Framework is represented as a pyramid, with eight governancepillars supported by five governance objectives. Each pillar has supporting elements.

Our approach to governance

EOH is committed to the highest standards of business integrity, ethics and professionalism. The Board and executive management, in setting the tone from the top, are committed to the principles of good governance, striving to be an ethical, relevant force for good and to play a positive role in society.

Definition of governance

We define corporate governance as exercising ethical and effective leadership to direct and manage effective governance and standards of accountability and transparency within the Company. Good governance is implemented through a best practice governance framework that aligns to the principles of the King IV Report on Corporate Governance for South Africa, 2016 (King IV), as well as the governance requirements of the JSE Listings Requirements and the Companies Act. The governance framework provides an integrated approach to connect critical factors that affect EOH's ability to create and protect value for all stakeholders in a sustainable way.

Governance structure

The EOH governance structure arises from the fiduciary obligations and responsibilities of directors as defined by the Companies Act and King IV best practice principles of oversight and control. It is based on the accountability line of authority and is applicable to all businesses in the Group to ensure the governance objectives are met.

Governance objectives

The EOH governance objectives stem from the Board Charter and Board committee terms of reference and align with the EOH purpose, philosophies and values.

1. Ethical leadership and culture
2. Sustainability and growth
3. Stakeholder engagement
4. Statutory and regulatory compliance
5. Responsible corporate citizenship

We have branded our programme to deliver the governance objectives as CODE. Delivery of this programme to embed governance will be a major focus throughout 2020, focused on building the functional capabilities needed to futureproof EOH.

Governance pillars

The seven pillars of EOH's governance framework represent the key processes or mechanisms applied to effectively uphold, sustain, defend and enforce the ethical values of good governance throughout the Company. Each of the seven governance pillars has defined critical value elements. These value elements are the key building blocks that ensure that the Group's objectives of good governance are implemented and continuously pursued.

1. Ethical leadership and culture
2. Transparency and disclosure
3. Risk and compliance framework
4. Corporate citizenship framework
5. Sustainability and resilience
6. Governance structures and accountability
7. Strategy management

The governance pillars are inherently aligned to our philosophies and our purpose.