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ETHICAL BUSINESS CONDUCT

Pharmaceutical retailers are subject to heightened ethical scrutiny due to their role and responsibilities
regarding patient privacy and care. Dis‑Chem has a set of corporate values that guides our actions and a
code of ethics with mandatory employee compliance.

Our values drive ethical behaviour CASE STUDY

Our vision, mission and values are set out on page 5.
The behaviours that have been extensively DIS‑CHEM VALUES AMBASSADORS
communicated around the Group’s values are incorporated into
the Dis‑Chem D-Bucks rewards programme and performance We encourage managers and employees to nominate
management system. In the latter, values-based behaviours
D-Bucks issued (number per calendar year)
Values Ambassadors for their business areas. This aims
are measured through a 360-degree survey that offers well- to reward and recognise individuals who conduct
rounded evaluation and feedback, including individual 50 000
themselves according to the four Dis‑Chem values.

48 015
employees’ strengths and developmental areas.
Nominations and motivations are logged monthly 40000

31 141
Dis‑Chem’s values are included in the recruitment process on our SuccessFactors platform.

26 331
as part of competency-based questionnaires and individual
Employees who are nominated as Values 30 000
assessments. These values are also included in the onboarding
programme to ensure new employees know and understand Ambassadors are awarded one D-Buck each, subject

12 003
expected behaviour. to human resource approval. The nomination process 20 000
applies to employees who have demonstrated a

7 785

6 582
These interventions are supported by visible communication

4 001
particular behaviour in line with a specific value. 10 000

2 194
2 595
around the Group’s values in publicly available documents,
such as this report and on our website, as well as in newsletters, D-Bucks are exclusively used as values-related
reward points. 0
the intranet and internal branding. 2021 2022 2023
Team members who receive the most nominations Average per month Average per quarter Annual total
for a particular category are awarded the title of
Our values bind us across the business and are based on “Values Ambassador” for a particular value. These
one message. We base our decisions on the vision, mission employees stand a chance to participate in an Annual The increase in D-Bucks awarded over time shows
and these values, which we believe will lead to a stronger Values Awards programme which consolidates all increasing awareness and appreciation for our
and more sustainable Dis‑Chem. By defining our values, “Values Ambassadors” in Dis‑Chem for the year. employees who live the values.
employees understand what is expected from them.
Customers and suppliers understand what we believe in.
Since 2019, Dis‑Chem has been running several values activation initiatives across
Our values shape the Dis‑Chem culture and are an
important recruitment criterion as we aim to appoint
the business to embed these behaviours and to feature role models. Activations
people who align with our culture and values. For us, included competitions, Power Fridays, International Women’s Day celebrations,
these are not just words we are sticking on a wall. Our Hopetober music entertainment, Youth Day commemorations and much more.
values unite us and define our brand.

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Our code of ethics

The code of ethics sets out Dis‑Chem’s expectations in terms of compliance with laws and regulations, disclosure of conflicts of interest, relationships with customers and
suppliers, gifting, insider trading and more. It also addresses employment equity and environmental responsibility. The code includes a gift declaration form and sets out the
whistleblowing procedure should any employee wish to report allegations of fraud, corruption or unethical behaviour.

DIS‑CHEM TAKES A
WHISTLEBLOWING
ZERO-TOLERANCE
APPROACH TO THEFT, FRAUD, CORRUPTION AND HUMAN
CALL 0800 444 315
SMS 33490
EMAIL DISCHEM@WHISTLEBLOWING.CO.ZA
RIGHTS VIOLATIONS
WEBSITE HTTPS://WWW.WHISTLEBLOWING.CO.ZA/

ALL WHISTLEBLOWING REPORTS ARE FORMALLY NO MONETARY LOSSES AS A RESULT OF LEGAL

PROCEEDINGS ASSOCIATED WITH MARKETING AND/OR LABELLING
LOGGED AND PROGRESS TRACKED.
PRACTICES (2023: R0)

THE DIS‑CHEM CODE OF ETHICS

While the Group supports democracy in South Africa, we do not make financial donations to individual political
WE PROMOTE WHISTLEBLOWING parties. Further to this, our code of ethics states:

THROUGH TRAINING, + Dis‑Chem funds, goods or services may not be used as contributions to political parties and facilities
may not be made available to political parties or their candidates.
COMMUNICATION AND + Dis‑Chem’s policy is to recruit, hire, promote and provide equal opportunities for all employees without
AWARENESS, INCLUDING regard to race, ethnic origin, sex, religion or belief, age, disability, national origin or sexual orientation or
veteran status. Harassment or unequal treatment of other employees is not permitted.
NEWSLETTERS AND POSTERS THAT + All employees must perform their duties diligently, effectively and efficiently, and act honestly and in
good faith at all times and report any harmful activity they observe in the workplace.
ARE DISTRIBUTED TO ALL STORES + Various anti-corruption treaties, laws and regulations require that neither Dis‑Chem, its employees, its
AND DISTRIBUTION CENTRES. representatives and agents directly or indirectly, pay commercial bribes or kickbacks or make payments
for the purpose of obtaining, retaining or directing business to any person.

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We believe in ethical OUR GOVERNANCE APPROACH TO ETHICAL BUSINESS CONDUCT

marketing The Board has mandated the SEC to be the primary oversight body with regard to ethical business conduct,
As a pharmaceutical retailer, Dis‑Chem also focuses including anti-bribery and corruption. The SEC, as a sub-committee of the Board, reports back to the Board on
on ethical marketing. The Dis‑Chem marketing guide all related matters.
sets out clear rules per category, defining what kind of
+ The SEC receives a biannual whistleblowing report detailing the number of incidents, nature of cases, level
marketing can be regarded as safe, what to avoid, and
of management involvement, challenges, actions taken and trends. All identified cases are reported to the
what to authorise with the technical compliance team.
South African Police Services and where appropriate to the applicable registered bodies such as the Health
For example, regulated products for infants and young
Professionals Council of South Africa (HPCSA). Civil recoveries are pursued by prejudiced business units
children up to three years are not to be dispersed as
where financially appropriate. As per our policy, fraud of over R100 000 has to be reported
free samples, and competitions may only run under
strict conditions. Dis‑Chem is an active participating + The whistleblowing policy explains the procedures to be followed including whistle-blowers’ right to remain
member of the Health Products Association (HPA) and anonymous and to be protected
the Infant Feeding Association (IFA), and complies with + Advertising and marketing material that are going onto Dis‑Chem platforms are required to be sent to the
their respective codes of conduct. technical compliance team for approval
We also apply ethical marketing principles for Dis‑Chem also has a conflict-of-interest policy to guide directors and prescribed officers on matters relating
complementary products such as supplements and to conflicts of interests and their management at Board level. The policy aims to promote transparency,
vitamins. integrity, and accountability in the decision-making process while protecting the interests of Dis‑Chem and its
shareholders.
Product claims about health or nutrition benefits are
particularly strict.
Read more about ethics in our 2024 Integrated Annual Report.
Medicines that are allowed to be advertised to the
general public are required to adhere to specific
requirements set out by the Medicines Act and its
regulations, regulated by the South African Health
Products Regulatory Authority (SAHPRA). Dis‑Chem The Dis‑Chem sustainability policy sets out our commitment to being a good corporate citizen. We strive to:
adheres to these guidelines in all marketing and
advertising initiatives. + Conduct our business in compliance with applicable regulatory requirements and standards
+ Provide an approved confidential reporting mechanism to enable reporting of unethical, illegal or
The Group ensures that its advertising content,
irresponsible behaviour
irrespective of channel, is appropriate and non-
offensive to all cultures, races and various heritages. + Eliminate all forms of bribery and corruption, collusion and price fixing, and anti-competitive behaviour
+ Implement a policy that governs our employee code of business ethics
Communication with customers includes educational
material, such as the Better Health Starts Here podcast, + Roll-out ethical sourcing and responsible supply chain practices across our value chain
radio features, the Dis‑Chem magazines and customer + Ensure that our suppliers commit to our supplier code of conduct
mailers. This enables customers to make informed and
ethical choices about their health.

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