Comment on the Process for Control

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• recognizes privacy as a human right;

• expects each of our companies to respectand follow the local laws and regulations concerning human rights practices. Where the own principles and regulations are stricter than local legislation, the higher standard applies;

• recognizes the responsibility of companies to respect human rights irrespective of the fact that governments are ultimately responsible for the establishment of a legal framework for protecting human rights within their jurisdictions.

The company upholds

• the freedom of association and the effective recognition of the right to collective bargaining (UNGC Principle 3);

• the elimination of all forms of forced and compulsory labor (UNGC Principle 4);

• the effective abolition of child labor (UNGC Principle 5);

• the elimination of discrimination in respect of employment occupation (UNGC Principle 6).

Nestle adheres to the eight fundamental Conventions of the International Labor Organisation (ILO), in particular Convention 87, Freedom of Association

and Protection of the Right to Organize (1948), as well as Convention 138, Minimum Age for Employment, and Convention 182, Worst Forms of Child Labor, which are based on the United Nations Convention of the Rights of the Child (Article 32). Furthermore, the company adheres to the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (ILO) of March 2006 and the OECD Guidelines for Multinational Enterprises of June 2000.

5. Leadership and personal responsibility

Nestle success is based on people. Employees treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. The company recruits competent and motivated people who respect our values, provides equal opportunities for their development and advancement, protect stheir privacy and do not tolerate any form of harassment or discrimination. Nestlé Management and Leadership Principles Our Management and Leadership Principles describe the culture and basic values we expect employees to uphold, as well as the attributes needed to be successful in management and leadership.

The Code of Business Conduct specifies certain non-negotiable minimum standards in key areas of employee behavior, including compliance with laws, conflicts of interests, anti-trust and fair dealing, bribery, corruption (UNGC Principle 10), discrimination and harassment, and integrity. Nestle believes in the importance of free competition and is committed to acting with integrity in all situations. Our Human Resources Policy specifies attitudes such as mutual respect, trust and transparency in relating to one another and encourages open communication and cooperation. The company also believes that long-term success depends on capacity to attract, develop, protect and retain the right and best employees. It respects international conventions concerning employees’ rights, does not tolerate discrimination for reasons such as origin, nationality, religion, race, gender, age or sexual orientation or engages in any kind of verbal or physical harassment based on any of the above or any other reason. It upholds the freedom of association of our employees and the effective recognition of the right to collective bargaining through unions or other types of associations (UNGC Principle 3). Nestle respects its employees’ right to privacy.

6. Safety and health at work

The company is committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain. The Policy on Safety and Health at Work establishes safety as a non-negotiable priority of culture. It recognizes and requires that everyone play an active role in providing a safe and healthy environment, and promote awareness and knowledge of safety and health to employees, contractors and other people related to or impacted by business activities by setting high standards. It monitors the performance through the Nestlé Occupational Safety and Health Management System to assure a safe and healthy workplace.

7. Supplier and customer relations

Nestle requires suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to non-negotiable standards. In the same way, it is committed to its own customers. The Nestlé Supplier Code specifies minimum standards that are asked suppliers, agents, subcontractors and their employees to respect and adhere to. The Supplier Code includes requirements such as business integrity, sustainable operating and agricultural practices, labor standards, safety, health and environmental practices. To ensure that the Supplier Code is put in practice, the company reserves the right to verify the suppliers’ compliance with the Code on a regular basis.

8. Agriculture and rural development

Nestle contributes to improvements in agricultural production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable.

To ensure that factories obtain raw materials competitively and at required quality and safety specifications

• Nestle engages in developing sustainable agricultural practices and systems that contribute to long-term production efficiency, viable incomes for farmers and the transfer of agricultural knowledge to suppliers;

• Nestle supports the application of new technologies and advances in agricultural science, including the opportunities offered by bioscience when their positive effect on food safety, environment, agricultural practices and production efficiency are scientifically confirmed and accepted by consumers.

The Sustainable Agriculture Initiative Nestlé (SAIN) guides the engagement in farming systems to support agricultural practices, rural development, sourcing processes and practices that are sustainable over the long term.

9. Environmental sustainability

The company commits itself to environmentally sustainable business practices. At all stages of the product life cycle it strives to use natural resources efficiently, favors the use of sustainably managed renewable resources, and targets zero waste.

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