Investment and Procurement Practices

HR1

What percentage of significant investment agreements include human rights clauses, or have undergone human rights screening?

All import and local merchandise supply agreements include clauses covering compliance with applicable laws in respect of the manufacture, sale and distribution of goods, including those relating to customs and excise, taxation and labour.  Conditions listed include stipulation that the goods bear authentic country of origin markings and are not manufactured in sweat-shops which are defined as those which use child-labour or other labour practices that are regarded as illegal in the Republic of SA.

These terms are also included in all significant service level agreements and service supply agreements.

HR2

What percentage of significant suppliers and contractors have undergone screening on human rights and describe the actions taken?

Factories of significant suppliers are visited by our buyers and agents pre-shipment and although there are no formalized human rights screening processes followed, it does form part of the general factory pre-qualification visit.

We are not aware of any action having been taken against any of our major suppliers accounting for 80% of our business.

HR 3

How many employees received training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained?

A total of 4,103 full-time employees and 573 part-time employees received training around human rights this financial year-- approximately 15% of our total staff complement.

Non-Discrimination

HR4

How many incidents of discrimination were reported and what actions were taken?

Massmart is committed to achieving the highest standards of ethical behaviour and continued its strong emphasis on promoting awareness of, and compliance with, Massmart’s Code of Ethical Practice.

Massmart continued to operate an independently run Ethics Line by Deloitte Tip Offs Anonymous to which any third party, member of staff or supplier may report a suspected unethical practice.  Contacting the Massmart Ethics Line is made easy by either a FreeCall number 0800 203 246, by sending a ‘please call me’ SMS to a dedicated number, FreeFax or email.

A total of 1,345 calls were received, 19 of which concerned  race discrimination and xenophobia, all of which were investigated by an impartial third party and were resolved without the need for legal action.

For further insights into Massmart’s Corporate Ethics.

Freedom of Association and Collective Bargaining

HR5

Were any operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk? What actions are taken to support these rights?

Massmart views the percentage of unionized staff as one of the indicators of commitment to freedom of association.  37.3% of our total staff complement is currently unionized. No incidents of a threat to exercise freedom of association were reported for the period.

Child Labour

HR6

Operations identified as having significant risk for incidents of child labour , and measures taken to contribute to the elimination of child labour.  

Massmart regularly communicates its Code of Ethical Practice to suppliers and service providers, and attempts to ensure that they comply with our ethical standards.   Suppliers and service provides are invited to make use of the independently managed ethics reporting line; and Massmart’s formal trading agreements detail ethnical practices that suppliers are expected to uphold.   Examples include : suppliers are expected to abide by the laws and regulations of the country; and that all products and services comply with legal and safety standards; and that Massmart will not tolerate the use of child labour practices or the use of illegal labour. 

Massmart applies the same code of ethics and values at all subsidiaries, including non-South African stores or businesses that it operates from.
No incidents of child labour were reported.

Forced and Compulsory Labour

HR7

Operations identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination thereof.

No incidents of forced or compulsory labour were reported. 

Security Practices

HR8

Are security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.

Security staff receive training related to the legal procedures that they must follow when apprehending an employee, customer or supplier suspected of wrongdoing.  Training of security personnel ensures that they are aware of Massmart’s expectations of human rights performance.   

Indigenous Rights

HR9

How many incidents of violations involving rights of indigenous people were reported and what action was taken.

No violations were reported.  Massmart’s general principle is that the dignity and rights of all individuals be respected and never infringed by the way in which Massmart conducts its business in all countries in which we operate