Massmart has over 500 Private Label and direct import suppliers participating in our Responsible Sourcing Compliance programme to ensure what we are selling is responsibly sourced and sustainable from both an environmental and social perspective.
We are thoughtful about what we sell to our customers and recognise that we have a level of responsibility in this regard to ensure the decisions our buyers make are well thought through. We need to make sure our products are safe and that they are produced in safe facilities. We want our customers to be able to trust that what we are selling is responsibly sourced and sustainable from both an environmental and social perspective.
Our Responsible Sourcing Compliance team assists with the integration of responsible sourcing practices into merchant strategies, processes, systems and buying decisions, which includes the selection of suppliers and the development of new products. Merchants and sourcing associates receive training that helps them understand how their decisions can influence supply chain conditions and the role they can play in reinforcing appropriate working practices with suppliers.
We promote responsible labour practices in our supply chain, which helps mitigate business risks. Our Standards for Suppliers make clear our expectations of those who sell their products to us for resale, as well as the facilities and agents they use.
Through our Responsible Sourcing Compliance programme we help combat practices such as forced and under-age labour and unsafe working conditions. We monitor Private Label and Direct Import suppliers’ facilities for compliance with our Standards, even when there are no allegations of misconduct.
At year-end 2020 Massmart had over 500 Private Label and direct import suppliers participating in our Responsible Sourcing Compliance programme, with over 800 facilities required to undergo regular social compliance audits. 94% of the audits conducted in 2020 showed a good level of compliance. Social compliance audits are not common practice in South Africa. As a result, domestic manufacturers are less familiar with the requirements and tend to have more non-compliances identified. At the beginning of 2019 only 49% of our domestic manufacturers achieved a good level compliance. By year-end 2019 this had improved to over 70% and in 2020 through engagement with our suppliers it was at 84%.
Should we receive information alleging violations of our Standards by a supplier or their facilities, the allegations are evaluated through a global case management process.
