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Phumzile LangeniChairman of the Social and Ethics Committee

Social and Ethics Committee report

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The Social and Ethics Committee is responsible for overseeing and monitoring, on an ongoing basis, how the consequences of Massmart’s activities affect its status as a responsible corporate citizen. It has oversight of Massmart’s efforts towards supporting small local manufacturers; socio-economic development; responsible sourcing; efforts to minimise its environmental footprint; and its contribution to society through employment, skills development and a responsible tax policy.
BOARD MEMBERS
BOARD STATUS
MEMBER SINCE
ATTENDANCE
P Langeni (Chairman)
Independent non-Executive
20 Nov 2011
2/2^
Prof De Jongh
Independent permanent invitee
20 Nov 2011
2/2^
G Hayward
Chief Executive Officer
1 Jun 2014
2/2^
S Muigai
Non-Executive Director
26 May 2017
2/2^
^ Eligibility based on appointment date
Corporate governance
Compliance
General business management
Leadership
Accounting and finance
Economics/public policy
International retail
Risk management
Human resources

Members of the Massmart Social and Ethics Committee comprise the Massmart CEO, a non-Executive Directors, an independent permanent invitee and I, an Independent non-Executive Director, who is also Chairman of this Committee. The Chief Ethics and Compliance Executive, the Group Corporate Affairs Executive, the Group General Legal Counsel and Company Secretary and the Group Human Capital Executive attend meetings by invitation.

The Committee, which is governed by a Charter; monitors the Group’s performance in terms of defined Social and Ethics performance indicators which also include provisions of Regulation 43(5) of the Companies Act of 2008, as amended.

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 2018 to review performance in the following areas:

  • Legislative compliance
  • Consumer safety
  • Responsible sourcing
  • Employee welfare and relations
  • Ethical business practice
  • Anti-corruption
  • Transformation
  • Social and environmental responsibility and sustainability

The Committee also considered 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 2018 reporting period. Assurance can be provided that the Committee effectively discharged its responsibilities over the past financial year and also executed its statutory duties and in accordance with its Charter.


Phumzile Langeni
Chairman of the Social and Ethics Committee
4 April 2019