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:
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.
Chairman of the Social and Ethics Committee
4 April 2019