Massmart Annual Report 2008

Sustainability Context

Massmart’s sustainability proposition

Massmart’s sustainability proposition has been updated this year (2008) to include reference to customer and supplier advocacy.

Our sustainability proposition is to achieve commercial success by adopting a cost-effective mass distribution business model that offers benefits on both ends of the retail value chain without compromising our commitment to socially responsible business practice.

This approach recognises that for Massmart, good sustainability practice involves:

  • sensibly integrating sustainability practices with business objectives;
  • offering suppliers an efficient channel to their markets;
  • optimising value for customers by providing affordable access to quality safe merchandise;
  • acting in a socially responsible manner and embracing opportunities and managing risks arising from economic, environmental and social (triple bottom-line) developments; and
  • advocating the principles of responsible consumerism to customers and responsible business practice to suppliers.

At the core of this proposition is our commitment to apply the highest standard of ethical conduct in our dealings with all stakeholders.

Managing sustainability at Massmart sustainability

Responsibility for monitoring the scope and quality an efficient of sustainability practice rests with the Massmart Sustainability Committee which is a committee of for customers the Massmart Board. The committee meets with the objective of reviewing Massmart’s responsible Socially Responsible Investment Index, Broad-based Black Economic Empowerment, and Sustainability Reporting Performance.

The Group’s annual sustainability priorities are agreed by the Massmart Executive Committee on the recommendation of the Group Corporate Affairs Executive. Implementation is coordinated by the Corporate Affairs Executive who works in close collaboration with divisional line managers. In this sense sustainability practice in the divisions is regarded as a line management function.

We believe that the ultimate measure of our sustainability commitment is our ability to sustainably add exceptional economic value in a way that is responsive to the social and environmental challenges that confront the markets in which we operate.

Our Economic value added statement serves as the mechanism for demonstrating the success with which we achieve this, whilst our SRI-Index performance helps us to understand our responsiveness to social and environmental factors.

Economic value added statement

  R 44 616,7 million
  Sales, royalties, franchise
fees, rentals, management,
& admin fees (incl VAT)
R 32 481,4 million
  Cost of sales
R 100,7 million
  Interest and
investment income
R 2 344,5 million
  Net costs of services and
other operating expenses
R 9 891,5 million
  Money spent and shared as below