The Massmart Social and Ethics Committee comprises the Massmart CEO and two non-Executive Directors. The Committee is chaired by an independent non-Executive Director. An independent external advisor, the Chief Ethics and Compliance Officer, the Group Corporate Affairs Executive, the Group General Counsel and the Group Human Capital Executive attended meetings by invitation.

The Committee is governed by a charter and monitors Group performance in terms of defined Social and Ethics performance indicators that have been formulated with reference to Regulation 43(5) of the Companies Act.

These indicators, which include but are not limited to, OECD anti-corruption guidelines, United Nations Global Compact principles, the Employment Equity Act, Johannesburg Stock Exchange Socially Responsible Index criteria and Broad-based Black Economic Empowerment elements, are reviewed by the Committee, on a rotational or core agenda basis.

The Committee met twice during the year ended December 2015, at which meetings performance in the following areas were reviewed, in response to the requirements of the Companies Act:

  • JSE Socially Responsible Investment Index;
  • Anti-corruption Compliance;
  • Consumer & Product Safety;
  • Human Capital Management;
  • Regulatory and Compliance Matters;
  • Stakeholder Relations;
  • Broad-Based Black Economic Empowerment (BBBEE) and Socio-Economic Development; and
  • Environmental Impact.

These meetings were supplemented by regular management briefings to the Committee Chairman regarding key topics including; Massmart Employee Engagement Survey Results, Equal Work for Equal Pay, Temporary Employment Services, Response to Updated BBBEE Codes, Economic Freedom Fighters (EFF) Memorandum to Johannesburg Stock Exchange Limited, Fees Must Fall, Responsible Sourcing, Supply Chain Advocacy, Response to African Drought Conditions, Energy Efficiency and Renewable Energy Opportunities.

The Committee confirms that no material issues were identified by the Social and Ethics Committee during the period.

Phumzile
Phumzile Langeni
Chairman of the Social and Ethics Committee
1 April 2016