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88 Governance
We reviewed the condential hotline process, which is a key tool in BT’s
whistleblowing procedures. We supported the proposal to undertake an
external review and benchmarking exercise of the hotline. At the joint
meeting with the
Audit & Risk Committee
(see below), we reviewed the
ndings of that exercise. Also at each meeting we received an overview
of the condential hotline statistics and trends, as well as a summary of
key cases and outcomes.
Joint meeting with the
Audit & Risk Committee
We held a joint meeting in March 2014 with the
Audit & Risk
Committee
to cover areas of common interest to both committees.
We discussed
• the ndings from the external review and benchmark of BT’s
condential hotline programme and endorsed the proposed
actionplan
• the design and controls of the sales teams’ pay plans in BT Global
Services and the review under way of sales pay plans across the
group and
• our UK telecommunications regulatory compliance programme
and how BT manages and mitigates regulatory risk.
We also received an update on BT’s human rights compliance
programme.
South East Asia
Sub-Committee
Nominating & Governance Committee
India Sub-Committee
Latin America RGC
AsiaPaciƬc & Middle
East &{Africa RGC
Europe RGC US & Canada RGCUK & Republic of
Ireland RGC
Regional Governance Committees
The structure of our RGCs is set out in the diagram above they each
oversee and monitor governance and compliance in their region.
Wereceived an update at each meeting on the work of our ve RGCs.
This included a review of their performance against the agreed
objectivesand progress on the rollout of governance and compliance
regional risk management.
RGC chairs presented at our meetings, with focus this year on Europe,
Latin America, the US & Canada. The presentations included progress
in the region on the implementation and running of core governance
and compliance programmes including mandatory compliance training
adherence to BT’s gifts and hospitality policy the position on ling of
tax and statutory accounts and the rollout of the agents programme.
We were also updated on the region’s governance and compliance risk
management framework, with particular focus and discussion on the
top ve governance and compliance risk areas and the progress of
corresponding mitigation plans and actions.
We also approved some changes to the terms of reference of the RGCs to
provide more detail on the governance and compliance areas which the
RGCs oversee and monitor include a quarterly review of governance and
compliance recommendations from group internal audit promote the
rollout of compliance and ethics consequence management programmes
across their regions and provide greater clarity on the roles and
accountabilities of the members of each RGC.
Sir Michael Rake
Chairman of the Nominating & Governance Committee
7 May 2014
Our Regional Governance Committee (RGC) Structure