Our Chairman’s corporate governance overview
Massmart believes that the first steps towards good corporate governance must include embracing the requirements of the relevant governance and regulatory frameworks, as well as corporate best practice. More than this, Massmart believes that sustainable and effective corporate governance is best demonstrated through a consistent pattern of doing the right thing regardless of the circumstances.
I am pleased to report that Massmart has responded appropriately to these requirements.
Corporate governance approach
The primary South African corporate governance framework is the King Report on Governance for South Africa and King Code of Governance Principles (King III), which forms the backbone to Massmart’s own corporate governance framework. In addition Massmart applies high ethical standards to its operating environment as reflected in the Group’s Code of Ethical Conduct. We are closely monitoring the development of King IV and will align governance requirements and formal practices upon the release of King IV.
Massmart believes that these guides to corporate decision making are essential for any governance framework to achieve desired outcomes consistent with our Group values. In addition to this corporate governance framework, the Group is committed to complying with all legislation, regulations and best practices relevant to our business, in every country where we conduct business.
Massmart’s Executive Committee has established a subcommittee to focus on Ethics and Compliance. This subcommittee meets every other month to consider a legal update; an ethics review; specific areas of focus that Massmart’s compliance team manage closely; feedback from Internal Audit; and ethics and compliance in general.