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AIM PROGRESSRESPONSIBLESOURCINGSUPPLIERFORUMGurgaon IndiaAugust31st 2010 FORUMGOALS CommonUnderstandingofResponsibleSourcingReviewAIM PROGRESSObjectivesandActivitiesMutualRecognitionToolstocapturedata Sedex ReviewScopeofResponsibleSourcingAssessmentAgreeonNextSteps 2 2 LOGISTICS Logistics Locationofexits Evacuationroutes procedureLocationofrest rooms food beverage etcOthersecurity safetypolicesPerson s toseeifyouhaveanyquestionsthroughoutthedayRulesofEngagement Strictadherencetoethicalbusinesspractices businessintegrityandanti corruptionprinciplesAbsolutelyNOdiscussionsoftradeagreements pricing customer vendorrelationships orotherInformationinthispresentationwasreviewed approvedbyLegalcounsel Legalcounselwillbepresentthroughoutthemeetingtoaddressanyquestionsandensurecompliancebusinesstradelawsandprinciplesismaintained MORNINGAGENDA Registration10 00 11 00Welcome Introductions11 00 11 15CEORoundtable11 15 12 30Lunch12 30 13 30LeadershipIntroduction12 30 13 30OverviewofAIM PROGRESS13 40 14 10WhatisAIM PROGRESS WhatisResponsibleSourcing TheValuePropositionofCollaborationIndustryAlignment MutualRecognition AFTERNOONAGENDA AssessmentOverviewPrinciples Standards LocalLaw14 10 15 10RequirementsforComplianceatsitelevelGoodPractice LocalLawOverviewofon siteassessmentExamples CaseStudies Q AToolstoCaptureResponsibleSourcingDataIntroductiontoSEDEX15 10 15 30Registration Sharingdata SAQsUploadingAuditsandCAPsWrap Up Questions15 30 16 00 RESPONSIBLESOURCING ResponsibleSourcing Responsiblesourcingistheprocessofpurchasinggoods serviceswithoutcausingharmto orexploiting humansorthenaturalenvironment CoreResponsibleSourcingStandards Principlesaddress LegalComplianceForcedLaborWagesandBenefitsHoursofWorkFreedomofAssociationChildLaborDiscriminationAbuseofLaborHealthandSafetyEnvironmentBriberyandCorruption 7 VALUEPROPOSITION ResponsibleSourcing IncreasesemployeemoraleandproductivityinthesupplychainImprovesretentionratesLowerovertimeFewerHSEincidentsFewerqualityincidentsHigherbusinessperformanceIsasustainablefoundationforgrowthIs therightthingtodo Builds protectsreputationwith Customers Consumers Regulators Widersociety Investors Employees SECTORCOLLABORATION Examples EICC ElectronicsIndustryCodeofConduct GeSi WRAP ApparelETI UKbased multistakeholderinitiativeBSCI ContinentalEuroperetailerledICTI ToyIndustryAIM PROGRESS FMCGsectorAllarebaseduponthesameILOandUNGC andallrequireasimilarapproachtoimplementation AIM PROGRESS LaborStandards Health Safety EnvironmentalManagement BusinessIntegrity Globalforumofconsumergoodscompaniesassembledtoenable promoteresponsiblesourcingpracticesSponsoredbytheGroceryManufacturersAssociation GMA andtheEuropeanBrandsAssociation AIM 24CompaniesRepresenting USD TrillionannualrevenueAdditionalinformation www aim beunderresponsiblesourcing 4PILLARSOFRESPONSIBLESOURCING 9 24FMCGBrands 10 AIM PROGRESSMEMBERS AIM PROGRESSOBJECTIVES Topromoteresponsiblesourcingthroughcommon ormutuallyacceptable supplychainstandards LabourStandardsHealthandSafetyEnvironmentalManagementBusinessIntegrityToincreaseefficiencybysharingdata anauditforoneisanauditforall Toseekconvergencewithothersimilarinitiatives 11 Mitigatecompliancerisksinthesupplychain whileminimizingduplicationofeffort WHATISAIM PROGRESSDOING MutualRecognitionBenchmarkcompanyassessmentprotocolsSharingbestpracticesAuditdataexchangeCommondataexchangesystemUseoftheSedexsystemCommonassessmentmethodsMaximisesynergiesEngagingothersPromotingSupplierAwarenessAgriculturalinitiatives 12 MAXIMISINGSYNERGIES 13 MUTUALRECOGNITION Purpose ReduceAuditFatiguethroughmutualrecognitionofassessmentsReduceduplicativecoststhroughoutsupplychainAlignstandardsandsharebestpractices Resultstodate OverhalfofAim ProgresscompanieshavesignedontoMRCommonmessagingtosuppliersSupplierscontinuingprogram upholding MutualRecognition withtheirsuppliers MUTUALRECOGNITIONCOMMUNICATION 14 COMMONDATAEXCHANGE DuplicationofWorkand AuditFatigue Whatasupplierdoesforone theycandoformany 16 JOINTSUPPLIERTRAININGS 2010Objective Reach500 suppliersthrough4jointsupplierseminarsFirstjointtraininginQ42009inIstanbul Turkey130participantsfrom55suppliersinvitedby6participatingcompaniesResultedin35 completionrateofresponsiblesourcingrequirementswithin3monthsIn personandWeb basedtrainingshaveextendtomoreAIMPROGRESSmembers NorthAmerica Q22010Russia Q22010 Brazil Q32010China Q42010 SUPPLIERCOMMENTS Suppliercommentonthepurposeofinternalresponsiblesourcingprogram Toearnthetrustofourcustomers licensingpartners suppliers andconsumersbymanufacturingandpurchasingqualityproductsusingethicalstandards ReginaO Edwards J D MWV Director GlobalSupplyChainComplianceSuppliercommentonthebenefitsofSedex Wegetonenewcustomerrequesteverymonthforresponsiblesourcingdata AsSedexmembersallwehavetodoisgiveaccesstothosecompaniestoviewtheSAQandauditwealreadycompleted 17 WHATWEARENOTDOING

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