Hatch Institute supports Dis-Chem’s transformation agenda

The Hatch Institute, which promotes culture-driven business leadership, says it supports Dis-Chem’s bid to boost the transformation agenda, despite disagreeing with the manner in which the pharmaceutical retail giant relayed its intentions.

Dis-Chem faced widespread criticism after managers were urged to improve the company’s employment equity profile and effect transformation. The JSE-listed firm issued a moratorium in September on the external and internal hiring of white people, which some believed was a contravention of the Employment Equity Act.

Dis-Chem apologises for wording in leaked memo:

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The Hatch Institute’s CEO Ian Fuhr explains why he agrees with Dis-Chem’s decision.

“As far as the Dis-Chem thing is concerned, I do believe that what they did was right. I am not exactly agreeing with the way that they executed it but the reality is that we do need this change. SA is not going to be, in the future, what it was in the past. I am involved in race relations and culture in the corporate environment. I have seen all the issues around this and we are quite important that we understand that SA is one of the most unequal societies in the world. If we don’t change that then we are going to have some really bit problems,” says Fuhr.

Reaction to Dis-Chem’s moratorium on hiring whites:

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On Wednesday, Dis-Chem reported on its half-year earnings which revealed that the group’s total income increased by over 22% to R5.2 billion and its interim dividend increased by more than half. This surge is attributed to Dis-Chem’s acquisitions of new baby stores as well as the demand for medicines and vaccinations after the easing of covid-19 restrictions.

During the reporting of the retailer’s half-year performance, Dis-Chem’s Chief Financial Officer, Rui Morales Marais, gave comment on the company’s policy saying it is working towards equality and transformation through the establishment of a skilled and transformed workforce that is representative of South Africa.

“I think underpinning all of our strategic objectives is the principle of equity and we are ambitious with respect to our healthcare objectives, as in the nature that we want equity within access to healthcare. That same is true around a skilled and transformed workforce,” said Marais.