Community

SO1

Outline the nature, scope and effectiveness of any programs and practices that assess and manage the impacts on communities, including entering, operating, and exiting.

Massmart‘s main focus is on impact assessments prior to the development of new store sites.  Our Masscash division has been conducting regular workshops with community leaders, representatives from the Mozambican Labour office, and two welfare associations, namely Amimo and OMEMAS (responsible for attending to the welfare of Mozambicans employed in RSA and their families).  Frequent staff and service support contractor meetings are also held across 15 warehouses in the Maputo, Gaza and Inhambane provinces to ensure that the impact is minimized to the satisfaction of all parties.

Corruption

SO2

Are all business units analyzed for risks related to corruption?

Massmart has a Code of Ethical Conduct which continues to be communicated to staff and strategic suppliers across all business units. The outsourced anonymous ethics hotline implemented last year continues to be monitored by Deloitte.

For further information around Massmart ethics.

S03

Were employees trained in the organization’s anti-corruption policies and procedures?

A total of 7,259 permanent and non-permanent employees successfully completed training in anti-corruption and ethics policies.

S04

What actions were taken in response to incidents of corruption?

A total of 87 calls (down from 144) received on the ethics line related to allegations of theft, fraud, abuse of power, sexual harassment or the acceptance of bribes. After investigation, some allegations led to actions including the laying of criminal charges, termination of employment, disciplinary action, counselling, formal complaints laid with the supplier concerned as well as the delisting of suppliers.

Public Policy

S05

Describe Massmart’s position on and participation in public policy development and lobbying.

Government liaison is conducted primarily at Group level where responsibility is shared between CEO, Group Corporate Affairs Executive and Channel Executive. The Channel Executive is responsible for legislative and regulatory issues covering operational activities and the Group’s merchandise proposition; whilst the Group Corporate Affairs Executive is responsible for broader public policy issues.  Public policy engagement efforts are made through written and verbal submissions to the appropriate parliamentary portfolio committees as well as participation in forums such as Business Unity South Africa.

S06

The value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

Massmart does not make donations to political parties or related institutions.

Anti-competitive behaviour

S07

How many legal actions were instituted for anti-competitive behaviour, anti-trust, and monopoly practices and what was the outcome.

No legal actions of this nature were instituted during the reporting period.

Compliance

S08

What is the monetary value of significant fines and the total number of non-monetary sanctions for non-compliance with laws and regulations?

No penalties were incurred under the Consumer Protection Act for the reporting period in question. Furthermore, no significant tax penalties were incurred by the Group’s divisions for the reporting period.