1. PIONEER FOODS CORPORATE GIVING POLICY STATEMENT

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1 1. PIONEER FOODS CORPORATE GIVING POLICY STATEMENT 1.1. Corporate Social Responsibility (CSR) is the concept whereby organisations integrate social and environmental concerns into their business operations Social Economic Development (SED) means Socio-Economic Development as defined in code 700 of the BEE Codes of Good Practice Enterprise Development (ED) means Enterprise Development as defined in Code 600 of the BEE Codes of Good Practice B-BBEE Codes of Good Practice - mean the Broad-Based Black Economic Empowerment Codes of Good Practice as promulgated on 09 February 2007 and include the BEE Act of SED Beneficiaries Black individuals; and/or Organisations that distribute benefit to black individuals 1.6. ED B e n e f i c i a r i e s and integrated in Black Entrepreneurs who are established, supported mainstream business processes. To ensure that these empowerment initiatives are sustainable, support includes access to finance, infrastructure, information and knowledge systems Black means African, Coloured, Chinese or Indian persons, born in SA, a citizen by descent; or African, Coloured, Chinese or Indian persons who became a citizen before 27 April 1994; or African, Coloured, Chinese or Indian persons who can demonstrate that they were unable to obtain citizenship by naturalisation under apartheid Sustainability - Sustainability is a concept which deals with mankind's impact, through development, on the environment. Sustainable Development is development which meets the needs of the present without compromising the ability of future generations to meet their own needs. (World Commission on Environment and Development, 1987)

2 1.9. Shared Value - Shared value may be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates (Porter and Kramer, 2011). Shared Value is also a feature of the triple bottom line (Elkington, 1999) which sets out a value proposition based on economic prosperity, environmental quality and social justice. 2. PURPOSE The purpose of this policy statement is to provide guiding principles for corporate giving related processes and procedures within the Group. As a food and beverage producer, Pioneer Foods is fully committed to the principle of CSR and intends that CSR should become embedded, where appropriate, into its policies and practices, to the benefit of employees as well as the wider community within which it operates. There is already much good work which could be classified as contributing to CSR taking place within the company. 3. SCOPE Introduction Whilst striving to improve our understanding of the effects of our business operations on the surrounding communities with regards to shared environmental resources e.g. land and water, Pioneer Foods aims to be recognised as an organisation that is transparent and ethical in all its dealings as well as making a positive contribution to the community in which it operates. It is committed to its core values in all aspects of its work, including the fulfilment of its social responsibility at all levels within its current and future business operations. We recognise that, as well as making a return for our shareholders, we can at the same time contribute to social and environmental objectives. Pioneer Foods also acknowledges the potential opportunities and risks related to CSR as well as changing stakeholder and consumer expectations in this regard. As such we are not only committed to adopting best practice in the area of CSR but to also managing, measuring and reporting our key social impacts. This policy statement will be a tool to enable Pioneer Foods to accomplish this and fulfil its sustainability goal of increasing long-term shareholder and social values.

3 Guiding Principles While taking into cognisance the objectives of the Millennium Development Goals (MDG) and with a commitment to the highest ethical standards of community service, Pioneer Foods seeks to achieve corporate and social objectives by focusing on four strategic areas: Food Security Education Environment Enterprise Development This Corporate Giving policy statement is applicable to the Group, all the divisions and business units, with regards to all current, planned and future activities. The Executive Management has adopted a hybrid strategy towards the execution and management of CSR for the Group as set out below: Group SED & ED: The Pioneer Foods Community and Education Trust has been created as a consequence of the second phase B-BBEE ownership transaction and is accountable to the Board s Social and Ethics Committee. The Trust s objectives are to: to assist in the provision of school buildings or equipment for public schools and educational institutions engaged in public benefit activities; the provision of scholarships, bursaries, awards and loans for study, research and teaching The Executive Management has also recommended that the 1% of NPAT prescribed by the Department of Trade and Industry (DTI) B-BBEE Codes of Good Practice (Codes) for SED as well as the ED 3% NPAT spent every year and all major SED and ED projects be approved and administered through The Pioneer Foods Community and Education Trust to ensure that the strategic objectives of the company are met, in line with the Corporate Giving Decision Making Framework

4 Divisional SED: Each Division shall, at its own discretion, invest in projects in the communities in which they operate. It is hoped that they contribute towards the upliftment of the greater South African community. Divisional SED spend shall be reported to Corporate Affairs & Sustainability as set out in Procedures. Reporting Procedures and Reviews The Board of Directors is committed to these principles. Divisional executives are responsible for management of their operations in alignment with this policy statement. Managers and Supervisors are accountable for the implementation of the attendant practices and all employees are responsible for compliance with them. This policy statement applies throughout Pioneer Foods sites and will be reviewed annually and may be amended as required subject to approval from the Board. 4. ESSENTIAL SUPPORTING DOCUMENTS The document is to be read in conjunction with the following Pioneer Foods documents: HRPP-01A Code of Ethics HRPP 10 Employee Wellness Sustainability Strategy Lulu Khumalo

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