Members of the Massmart Social and Ethics Committee comprise the Massmart CEO and two non-Executive Directors. The Committee is chaired by myself, an independent non-Executive Director. An independent external advisor, the Chief Ethics and Compliance Officer, the Group Ethics Officer, the Group Corporate Affairs Executive, the Group General Counsel and the Group Human Capital Executive attend 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 charter was updated and approved in November 2017 to ensure alignment to the principles of King IV.
The Committee met twice during 2017 to review performance in the following areas, in response to the requirements of the Companies Act:
- Legislative compliance
- Consumer safety
- Responsible sourcing
- Employee welfare and relations
- Ethical business practice
- Social and environmental responsibility
The Committee monitored the Company’s activities, having regard to the relevant Company policies, any relevant legislation, other legal requirements or prevailing codes of best practice with regard to matters relating to good ethical conduct, with reference to the Company’s code of ethical conduct, related policies and accepted best practice.
These meetings were supplemented by regular management briefings to the Committee Chairman regarding key topics including: the Cape Town water crisis, the listeriosis outbreak, genetic seafood testing, the Supplier Development Programme, the proactive management of anti-corruption and responsible sourcing amongst others.
The Committee confirms that no material issues were identified during the 2017 reporting period. In the execution of its statutory duties and in accordance with its charter, the Committee effectively discharged its responsibilities over the past financial year.
Chairman of the Social and Ethics Committee
29 March 2018
The Social and Ethics Committee comprises:
Ms Phumzile Langeni
Independent non-Executive Director
Mr Guy Hayward
Chief Executive Officer
Ms Susan Muigai*
Professor Derick de Jongh
Independent permanent invitee
Mr JP Suarez was a member of the Social and Ethics Committee until his resignation from the Board in May 2017.
* Ms Susan Muigai was appointed as a member of the Social and Ethics Committee on 20 May 2018.
More information on the Social and Ethics Committee’s roles and responsibilities can be found here