Mars Human Rights Policy

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1 Mars Human Rights Policy INTRODUCTION: The business philosophy of Mars, Incorporated is deeply rooted in our Five Principles of Quality, Responsibility, Mutuality, Efficiency and Freedom. The Principles are the foundation of our Human Rights Policy. In accordance with the UN Guiding Principles on Business and Human Rights, this Policy is informed by the International Bill of Human Rights and the International Labour Organization's 1998 Declaration on Fundamental Principles and Rights at Work, as described below. OUR COMMITMENT: It is the duty of governments to protect and fulfil human rights. As a private company, we will respect and promote human rights in our value chain, starting with areas where we have greatest control and influence, and where we can have the greatest impact. In accordance with the UN Guiding Principles, we will implement a due diligence process to identify, mitigate and prevent adverse impacts on human rights and appropriate mechanisms for remediation. No matter where we operate, Mars strives to comply with the spirit and the letter of the law. Where local laws are less stringent than our Policy, we will operate in accordance with our standards. If there is a lack of clarity on the competing claims of rights bearers, we will work with stakeholders to seek resolutions that are consistent with this Policy. IMPLEMENTATION OF THIS POLICY To ensure that we target salient impacts, where we can make the most valuable contribution, this Policy will initially focus on two areas: our operations, where we have the most control; and sourcing, where we can have the greatest impact. Our areas of focus will be regularly reviewed with external stakeholders. We will make every effort to: - Equip our Associates with training and raise their awareness on human rights - Identify and validate the effectiveness of our initiatives through our risk and impact assessments. - Remediate any adverse human rights impacts and mitigate risks. This Policy complements other Mars policies, programs and practices, including: - Our Five Principles, which commit us to provide our Associates with a high-quality and safe workplace that respects and promotes human rights and business ethics and is free from harassment, discrimination and all other unlawful employment practices. 1 - Our Associate Concept, which captures one of the fundamental beliefs in Mars. It describes the unique relationship the company and its Associates hold, different from most other corporations. We want the specific relationship between Associates, their Line Managers and the company to reflect those beliefs and to be based

2 on The Five Principles. - Our Position on Freedom of Association and Collective Bargaining, which respects our Associates right to join, form or not to join, a labor union without fear of reprisal, intimidation or harassment. Where Associates are represented by a legally recognized union, we are committed to establishing a constructive dialogue with their freely chosen representatives. Mars is committed to bargaining in good faith with such representatives. - Our Supplier Code of Conduct, which includes 10 workplace standards that meet or exceed International Labour Organization guidelines. The content in the Code is aligned with the U.K. Bribery Act, the U.S. Foreign Corrupt Practices Act and the California Supply Chain Transparency Act. It sets our global expectations prohibiting the use of child labor in accordance with ILO Minimum Age Convention No. 138 and in the areas of health and safety, the environment and ethical business practices. - Our Responsible Sourcing Program, which implements our Supplier Code of Conduct with all our direct and indirect suppliers alongside a system of risk assessments, audits and remediation. - Our Deforestation Policy, which applies to our beef, palm oil, pulp and paper, and soy supply chains. It requires our producers and suppliers to produce or purchase all raw materials from legal sources and to comply with our Supplier Code of Conduct. Producers and suppliers must respect the rights of all affected communities to give or withhold their free, prior and informed consent for plantation developments on land they own legally, communally or by custom. They must resolve land rights disputes through a balanced and transparent dispute resolution process and support farmers and plantation owners to comply with our Deforestation Policy. GOVERNANCE AND REVIEW OF THIS POLICY This Policy was developed with input from Associates in key functional areas and from external stakeholders. It was approved by the company s Global Public Policy Group, which ensures that Mars has globally consistent policies across the company. Executive oversight and responsibility for the implementation of this Policy rests with our Global Leadership Team. At an operational level, this policy is implemented by Mars Human Rights Director, who reports to our Chief Sustainability Officer and advises the Global Leadership Team on human rights issues. This Policy applies to all Mars Associates worldwide. We expect our direct and indirect suppliers and distributors to comply with this Policy. Non-compliance is subject to escalation, investigation and remediation in accordance with internal corporate policies. NEXT STEPS We will work with stakeholders to continue to evolve our human rights approach, and will update this Policy as lessons are learned. We will also continue to report on our human rights progress and performance in our annual Principles in Action Summary. 2

3 MARS HUMAN RIGHTS POLICY: TALKING POINTS/FAQs Beginning Dec. 22, 2014, we will share our new Human Rights policy with our leaders, Associates and then with external stakeholders. Please leverage these talking points when speaking with Associates or external stakeholders interested in our human rights program. What do you mean by human rights? In 1948, the United Nations recognized universal human rights that needed protection, such as the right to freedom and right to non-discrimination. For example: o Child Labor o Voluntary employment/forced labor and human trafficking o Abuse, harassment, disciplinary action o Fair and equal treatment/discrimination o Compensation and benefits o Collective Bargaining o Health and Safety All 192 countries in the UN recognize these rights Countries are obliged to protect the human rights of their citizens Businesses, such as Mars, are expected to respect these rights, everywhere Learn more here: Why is Mars launching a human rights policy? It is our responsibility as a company to t demonstrate and promote respect for the human rights of everyone we work with Our human rights policy and program will help us promote the human rights of our stakeholders by identifying, preventing and mitigating negative impacts The policy demonstrates our commitment to creating mutually beneficial relationships with our stakeholders and people we work with. It strengthens our ability to deliver growth we are proud of by bringing our principles to life. Don t we already respect human rights at Mars? We make every effort to operate ethically and sustainably and to treat people with respect Our Human Rights Program is intended to build on our Principles by codifying our commitment to respect human rights What is the International Labor Organization s 1998 Declaration (the ILO Declaration ) and what is our position on Labor/Unions? The ILO Declaration establishes, and commits member states to, basic principles for worker well-being, including recognition of the right to free association and collective bargaining, elimination of forced labor, abolition of child labour and elimination of discrimination. Mars perspective on Associate well-being begins with the spirit of our Five Principles, which commit us to provide our Associates with a high-quality and safe workplace that respects and promotes human rights and business ethics and is free from harassment, discrimination and all other unlawful employment practices. In addition, Mars respects our Associates right to join, form or not to join, a labor union without fear of reprisal, intimidation or harassment. Where Associates are represented by a legally recognized union, we are committed to establishing a constructive dialogue with their freely chosen representatives, and Mars is committed to bargaining in good faith with such representatives. 3

4 This Policy reaffirms our commitment to treating our Associates in a manner that is consistent with the Five Principles and legal norms. What are the expected outcomes of the policy? The policy will help us identify and mitigate instances in which we are not living up to our aspirations when it comes to human rights impacts, starting with our most vulnerable stakeholders. 4 It will help us continue to improve as a sustainable, ethical business, and drive positive change externally as well. It will serve as a benchmark for our business What are some examples of what human rights would look like at Mars? Ensuring that our operations are safe environments for all Associates and contractors Working with our supply partners to make sure that the farmers that grow our ingredients are making a living wage, and that they are laboring of their own volition and not under duress Ensuring all Associates work in an environment free of discrimination or hostility How will the policy affect me? Our Human Rights Program will benefit all of us. Our Human Rights strategy is a core element of our commitment to extend success to everyone in our value chain. It applies a realistic, systematic and rigorous approach to promote respect for human rights across our operations As an Associate, you may be asked to participate in training on human rights issues relevant to your role and location (anticipated for early 2015) All new Associates will learn about our Human Rights Program as part of their induction training If you work in a function with a particular responsibility to uphold certain elements of the policy, there is no immediate requirement for any action. You can expect to hear more about any particular requirements in All Associates will be expected to operate in accordance with the Human Rights Policy and to escalate any potential violations of the policy to the Director of Human Rights What do I have to do now? Please read and understand the policy As a Mars Associate, you will be responsible for upholding the policy as part of your role Where will Mars implement the policy? We have a pragmatic and realistic plan to help us tackle our human rights impacts, starting with our most vulnerable stakeholders. We will start in those areas of our business where we have the most work to do to ensure that we are creating mutual benefits with the people with whom we work. Our Human Rights Program will first focus on our operations and our supply chain Our next step will be to include Distribution within this program How will Mars implement the policy? Our strategy is simple: Put in place procedures and processes to identify and mitigate adverse impacts Train Associates to ensure that they understand the policy and always act consistently with it Where possible, we will integrate human rights considerations into existing processes to avoid adding an extra layer of complexity Who will implement the program? The business is investing in additional resources and headcount to implement the program

5 This includes the new position of Human Rights Director, reporting to the Chief Sustainability Officer, who will be responsible for overall strategy and communications on human rights P&O will incorporate our Human Rights program and policy into existing training programs to educate Associates Once in place, the Human Rights Director will work with Commercial, P&O, Segments and Responsible Sourcing to implement the program in our supply chain Yes, the Human Rights Program was developed after extensive feedback from Mars stakeholders, consultations with external stakeholders, and benchmarking of peer companies Our Human Rights Program has the full support of our legal team and our senior leadership because it is the right thing to do. 5