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.
The primary South African corporate governance framework is the King Report on Governance for South Africa, 2009, 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 Company 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.
For the year ended December 2015, apart from the exceptions outlined below, the Board confirms that the Group complied with the Code of Governance Principles as set out in King III.