Business continuity plan. Approval date: 30/05/08 Approved by: Ori Yehudai President & CEO
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1 Business continuity plan Approval date: 30/05/08 Approved by: Ori Yehudai President & CEO 1
2 Introduction Frutarom Management established a Business Continuity Plan (BCP), which is reviewed annually The plan includes the following aspects: * Approval for BCP-related capital or ongoing expenses * Supplier threats/risks * Production & supply continuity in case of Crisis in production site such as: - Fire - War - Employee disease/epidemic * IT system/support * Ethical standards 2
3 Approval for BCP-related capital or ongoing expenses The Business Continuity Plan is an integrative part of the annual budget planning Capital and/or ongoing expenses are integrated into the annual budget Annual budget is prepared and approved according to the relevant Financial Global Procedure 3
4 Supplier threats/risks Implementation of Global Financial & QA procedure, including: * Selection & Approval of suppliers * Payments to Vendors * Prepaid Expenses * Provisions and Accruals The procedures above include: * Supplier approval according to quality & product safety aspects * Supplier questionnaires & agreements which include quality & financial aspects * Risk analysis regarding quality & financial risks/threats * Supplier evaluation & assessment including quality & purchasing aspects * Purchased products are linked to more than one approved supplier * Process to manage critical supplier issues connected to quality, product safety & financial/stability aspects 4
5 Production & supply continuity Frutarom has 18 production sites all over the world Frutarom has internal & external warehouses all over the world There is more than one site with the same technology & similar range of products Customer lists & products sold are available on a global basis Lists of products manufactured at each production site for each customer are available Global management is responsible for transfer of production from site to site when required Customer service department on each site in continuous connection with customers 5 Any relevant news is related to the customer
6 IT system/support The majority of Frutarom sites are working with the same ERP system Oracle Oracle was chosen as the global ERP system Action plan is in place for global implementation Data is available globally on the intranet Access to the ERP systems is limited by authorization rules There is a daily backup Data on discs is mirrored 6
7 Ethical standards Frutarom prepared & approved Code of Business Principles see next page Ethical standards is related to on the supplier questionnaire 7
8 Code of business principles Standard of conduct We at Frutarom conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. We shall similarly respect the legitimate interests of those with whom we have relationships. Obeying the law Frutarom companies and our employees are required to comply with the laws and regulations of the countries in and with which we operate. Employees Frutarom is committed to diversity in a working environment where there is mutual trust and respect; in which everyone feels responsible for the performance and reputation of our company. We will recruit, employ and promote employees solely on the basis of their qualifications, knowledge and abilities required for the work which is to be performed. We are committed to safe and healthy working conditions for all our employees. No use of any form of forced, compulsory or child labor will be adopted. We are committed to striving together with our employees to develop and enhance each individual s particular skills and capabilities. We respect the dignity of each individual and the employee's right to freedom of association. We will maintain good communications with employees through company-based information and consultation procedures. Consumers Frutarom is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labeled, advertised and communicated. Shareholders Frutarom will conduct its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders. 8 Business partners Frutarom is committed to establishing mutually beneficial relations with our suppliers, customers and business partners. In our business dealings we expect our partners to adhere to business principles consistent with our own.
9 9 Community involvement Frutarom strives to be a trusted corporate citizen and, as an integral part of society, endeavors to fulfill its responsibilities within the societies and communities in which the company operates. Public activities Frutarom companies are encouraged to promote and defend their legitimate business interests. Frutarom will cooperate with governments and other organizations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Frutarom neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests. The environment Frutarom is committed to making continuous improvements in the management of its environmental impact and to the longer-term goal of developing a sustainable business. Frutarom will work in partnership with others to promote environmental consciousness, increase understanding of environmental issues and disseminate good practice. Innovation creating value for our customers In our scientific innovation to meet consumer needs we will respect the concerns of society and our consumers. We will work on the basis of sound science, applying rigorous standards of product safety. Competition Frutarom believes in vigorous, yet fair competition and supports the development of appropriate competition laws. Frutarom companies and employees will conduct their operations in accordance with the principles of fair competition, abiding by all applicable regulations. Business integrity Frutarom does not give or receive, either directly nor indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment which is or may be construed as being a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Frutarom accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained. Conflicts of interests All Frutarom employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Frutarom employees must not seek gain for themselves or others through misuse of their positions.
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