2016/SOM3/CTI/SEM/004 Jointly Promoting Self- in China Submitted by: Mars Seminar on Sharing Good Practices and Experiences on Self- Among APEC Economies Lima, Peru 22-23 August 2016
Jointly Promoting Self- in China Judy Zhang Content Overview of self-regulation in Asia and China Leading food company with a unique DNA Driving responsible advertising in China 1
Overview of self-regulation in Asia Asia is not homogenous, spanning from Istanbul to Tokyo, Siberia to Port Moresby standards look very different across the continent: no one-size-fits-all An increasing interest in self regulatory and co-regulatory industry-led advertising standards The status of self-regulation in Asia Updated Law encourages industry selfregulation Japan Review Organization (JARO) Association runs a Board of Ethics to set common standards Standards Council of India (ASCI) Most advanced systems of advertising standards Developing systems of advertising standards Standards Council of the Philippines Standards Advisory of Malaysia Mandate from Law on 2012 to develop an Appraisal Council and an industry code of conduct Standards Authority of Singapore Limited industry involvement in advertising standards 2
More developed systems of ad standards India: The Standards Council of India (ASCI) is recognised by law and has MoU s with government agencies. It has been the first port of call to deal with consumer/competitor complaints since 1985. The Philippines: The Standards Council of the Philippines is a highly respected body and has pre-screened ad copy for over 30 years. Malaysia: The Standards Advisory of Malaysia was established in 1977. Singapore: The Standards Authority of Singapore is an advisory council under the auspices of the Consumers Association (CASE). Japan: The Japan Review Organization (JARO) handles complaints and inquiries from consumers, competitors and other sectors and was founded in 1974. Developing systems of in Asia China: 2015 advertising law encourages the development of industry self-regulation. Vietnam: Law on from 2012 mandates the development of an Appraisal Council and an industry code of conduct. Thailand: Association of Thailand runs a Board of Ethics to set common standards. 3
Nascent systems/limited industry involvement in ad standards Cambodia Indonesia Laos Pakistan South Korea Sri Lanka Taiwan Etc. Case Study: China 4
The New Normal & Rule of Law The New Normal From high speed growth to a medium-to-high one From quantity and speed to quality and efficiency From investment driven to innovation driven Create a business environment that is international, market-oriented and ruled by law Rule of Law Changing and complicated regulatory environment Since 2014, Over 300 newly-issued or amended laws, regulations and rules like the Consumer Right Protection Law, Law and Food Safety Law. 9 Amendment Journey of Law 1994 2009 2014 2015 The Law was issued by President of China, taking effect in 1995 The Draft Amendment was drafted by SAIC and submitted to the Sate Council 1 st & 2 nd Review of the Draft Amendment by NPC 3 rd Review by NPC and issued by President of China, taking effect on September 1 st, 2015 SAIC: State Administration for Industry & Commerce 10 NPC: National People s Congress 5
Comprehensive System in China Law Food Online Medical Apparatus Medical Treatment Medicine Veterinary Drug Agricultural Chemical Real Estate Language The enforcement by AICs SAIC Provincial AICs City-level AICs County-level AICs Lower-level AIC Stations 12 6
China s new Law calls for industry self-regulation Article 7 industry organizations shall, in accordance with the provisions of the laws, regulations and associations charters, formulate industry standards, strengthen industry self-regulation, promote the advertising industry development, and guide their members to engage in advertising activities in accordance with the law and boost the ethical integrity of the industry - CHINA S ADVERTISING LAW Government supervision and industry self-regulation in China SAIC Provincial & Municipal AICs China Association (CAA) City-level AICs County-level AICs in China Selfregulation China Association of National Advertisers (CANA) International Chamber of Commerce China (ICC China) Lower-level AIC Stations SAIC: State Administration for Industry and Commerce AIC: Administration for Industry and Commerce 7
Industry efforts in advocating and promoting self-regulation 2016 ICC China Marketing & Committee 2015 CANA s Responsible Marketing Committee 2014 APEC Standards Forum 2011 Global Advertisers Week Responsible Marketing Declaration Content Overview of self-regulation in Asia and China Leading food company with a unique DNA Driving responsible advertising in China 8
Leading Food Company with Unique DNA The company s objective is the manufacture and distribution of food products in such manner as to promote a mutuality of services and benefits among all stakeholders. Forrest E. Mars, Sr. 1947 Our Founding Principles We put our Five Principles into action in our interactions and operations generating genuine, mutual benefits for people, pets and the planet 9
Our Responsible Marketing Core Principles Launched in 2007, the Global Mars Marketing Code for Food, Chocolate, Confections and Gum led global advocacy and commitment Children under 12 should not be marketed to Gatekeepers are central to our approach to responsible marketing We shall support consumers to make informed choices about our products and their lifestyles We do not use nutrition criteria to guide our marketing across media channels MMC Training and Governance at Mars All Mars associates understand and implement MMC Add MMC as Mars New associates essential training content Integrate MMC training in Mars functional colleague training 100% MMC license acquirement for all marketing associates 100% MMC license acquirement for all communication and media agencies 10
These are some of the areas where we have led the industry in responsible marketing Mars Marketing Code In 2007, we were the first to not advertise in media where >25% of the audience are children under 12 years old. GDA Labelling We are the first company to commit to using GDA labelling on our food and confectionary products (excluding gum) worldwide. 250 kcal per portion In 2010, we committed to only develop single serving sizes of less than 250 kcal. SaFa Reduction We have reduced saturated fat in our portfolio and are setting new targets for further reduction. Mars Marketing Code - long history with track record Mars actively involved in trade associations, creating robust self-regulatory approaches First company to launch a marketing code and lead the industry in not marketing to children < 12 Received an A- rating by the CSPI for not marketing to children Our ATNI rating significantly driven by the Code Launched code s third iteration - industry leading positions 2000 2007 2012 2013 2014 11
Content Overview of self-regulation in Asia and China Leading food company with a unique DNA Driving responsible advertising in China One of the biggest corporations in China Drinks Chocolate Petcare Wrigley 12
True, legal and ethical Driving responsible advertising in China Pursues the concept of harmonious development of people, nature, economy and society Benefits the company in terms of brand building, market penetration, and perceived innovation Sculpts positive corporate image, strengthens corporate reputation and market competitiveness COPYRIGHT 2011 MARS INCORPORATED CONFIDENTIAL Mars public footprint in China Beijing Asian GamesBeijing Olympic Games Expo 2010 Shanghai Boao Forum For Asia China Development Forum 1990 2008 2010 2014 2016 26 COPYRIGHT 2014 MARS INCORPORATED CONFIDENTIAL 13
Marketing responsibly to consumers in China 100% of Mars related brands in China have GDA labelling 25% sodium reduction from 2007-2012 99.8% of our chocolate or confectionary products met the 250 calories per portion 100% of Mars brands in China compliant with 25% threshold High standards in Mars products 28 Environmental protection logo displayed on all packaging of Wrigley gum products 14
Jointly driving a responsible advertising environment Responsibility Mutuality Freedom Commitment to Consumers and Society Provide safe and quality products with innovation Drive Industry Growth and promote industry development thru responsible advertising Work with Government and Associations to advance advertising environment How can you support us? Please join us on 22 October 2016 in Hainan for the International Seminar on Responsible with a launch of an industry pledge on advertising selfregulation during the China Festival Boosting international good practice sharing on responsible advertising to support self-regulation environment building in China 30 15
THANK YOU COPYRIGHT MARS COPYRIGHT INCORPORATED MARS INCORPORATED CONFIDENTIAL CONFIDENTIAL 16