SOCIAL AND ETHICS COMMITTEE REPORTfor the year ended 23 December 2012

The Massmart Social and Ethics Committee was constituted in June 2011 and comprises two non-executive Directors and the Massmart CEO. An independent external advisor, the Group General Counsel, the Group’s Human Resources Executive and the Group’s Corporate Affairs Executive attend meetings by invitation.

The Committee is governed by a charter and monitors Group performance in terms of defined Social and Ethics performance indicators that have been formulated with reference to Regulation 43(5) of the 2008 Companies Act.

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 Committee met once, on 20 November 2012, during the 26 weeks ended 23 December 2012, at which meeting, in response to the requirements of the Companies Act, performance in the following areas was reviewed:

  • JSE Socially Responsible Investment Index;
  • Anti-corruption Compliance;
  • Consumer & Product Safety;
  • Human Capital Management;
  • Stakeholder Relations;
  • Socio-Economic Development; and
  • Environmental Impact.

The Committee confirms that no material issues were identified during this review.

Phumzile Langeni

Chairperson of the Social and Ethics Committee

8 April 2013