SOCIAL AND ETHICS COMMITTEE

The Massmart Social and Ethics Committee was reconstituted as a result of the Walmart transaction and now comprises two non-executive Directors, Ms Phumzile Langeni (Chairperson) and Mr JP Suarez, and the Massmart CEO, Grant Pattison.  An independent expert, Professor Derek de Jongh (Director: Centre for Responsible Leadership, The Facility of Economic and Management Sciences, University of Pretoria) , 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.  The role of the Committee broadly is to assist the Group with its responsibility towards sustainability with respect to practices that are consistent with good corporate citizenship.  The Companies Act includes specific responsibilities including: the company’s standing in terms of the United Nations Global Compact Principles, the OECD recommendations concerning corruption, the contribution to development within our communities, labour and employment, and the environment and health and public safety. The Committee met twice during the financial year with the objective of reviewing Massmart’s Socially Responsible Investment Index, broad-based black economic empowerment, and sustainability reporting performance.

Performance in each of these areas is measured with reference to the Johannesburg Stock Exchange’s (JSE) Socially Responsible Investment Index criteria, the Department of Trade and Industry’s (DTI) Broad-based Black Economic Empowerment (B-BBEE) scorecard and the Global Reporting Initiative III guidelines.

The Committee is satisfied with Massmart’s sustainability performance and is particularly encouraged that the Group continues to exceed its interim B-BBEE target and is now a Level 4 contributor.

The Social and Ethics Committee met once in the 26 weeks ended 23 December 2012. 

Further detail on the Group’s sustainability practices can be found at http://www.massmart.co.za.