By: Natasha Archary
Dis-Chem has defended the lack of transformation within the pharmaceutical group, after being questioned about the 0% black representation at top management.
The company’s CEO, Rui Morais said they were working very hard to push transformation at executive level but that could only happen if the opportunity presented itself.
Fielding the question at the company’s annual general meeting, Dis-Chem faced criticism for not reflecting South Africa’s diverse demographic makeup.
Dis-Chem’s upper echelons remain predominantly occupied by individuals from non-diverse backgrounds. This lack of diversity is seen not only as a failure to adhere to the principles of the Broad-Based Black Economic Empowerment (B-BBEE) policy but also as a missed opportunity to leverage the varied perspectives and ideas that come from a more inclusive leadership team.
The criticism of Dis-Chem’s leadership structure suggests that the company may be lagging behind in terms of implementing effective diversity and inclusion policies.
While the company has shown growth and success in various aspects of its business, the lack of transformation at the top could hinder its ability to fully tap into the potential of the South African market.
In 2022, a leaked memorandum sparked division over employment equity and racism at Dischem, where a moratorium was placed on the appointment of white individuals. This included both external and internal promotions.
The internal document which went viral, is said to have been written by group Chief Executive, Ivan Saltzman.
While the country may be split over Dischem’s recruitment processes, the company itself says it stands by its stance.
Israel Noko of NPI Governance Consulting addresses why transformation is such a huge problem in SA companies when it comes to top management.
Joining Gugulethu Mfuphi on Kaya Biz, Noko said that it might be time for Dis-Chem’s management should go back to the drawing board and reflect on some of the things that might not be working for them.
Noko is of the view that transformation and diversity requirements within companies should be moved away from the Human Resources departments.
