I am pleased to confirm that Macfarlane Packaging reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Yours sincerely,

Peter D Atkinson
Chief Executive

http://www.macfarlanegroup.com/corporate-resp_corp/corporate-resp_corp
http://www.macfarlanegroup.com/corporate-resp_corp/environment_corp
http://www.macfarlanepackaging.com/media/pdf/Macfarlane%20AR%202013.pdf

Macfarlane Group does not have a specific human rights policy at present but there are policies in place, which reflect the established human right principles. These are:
· Code of Conduct
· Equality – Macfarlane is committed to providing equal opportunities in employment and avoiding unlawful discrimination in recruitment, employment or to its customers and suppliers. Striving to ensure that the work environment is free of harassment and bullying and that everyone is treated with dignity and respect is an important aspect of ensuring equal opportunities in employment and there is a specific dignity at work policy.
· Engagement – Macfarlane recognises the importance of meaningful communication and consultation in maintaining good employee relations. This is achieved through formal and informal meetings across the business.
· Bribery and Corruption – Macfarlane Group has an anti-bribery and corruption policy, which is supplemented by a gift register and associated policy on accepting gifts.
· Whistleblowing policy – There is provision for employee to use an independent service if they are not comfortable speaking to anyone within Macfarlane Group with regard to any mattes which give them concern. This service is promoted throughout the Group also available on the Company intranet for all employees

As described above there are a number of policies in place with regards to Human Rights. In addition to the whistleblowing policy there is a grievance policy providing a further mechanism for employees to raise concerns.

All Human Resources policies are also available on the Company intranet for all employees

Macfarlane Group is audited regularly both internally and externally, any areas of concern raised are fully investigated. There is also a process in place to monitor and measure employee satisfaction along with the number of employee grievances and the calls reported to the whilstingblowing service.

Macfarlane Group does not have a specific labour policy at present but there are policies in place, which reflect the principles of the ILO core conventions. These are:
· Equality - Macfarlane is committed to providing equal opportunities in employment and avoiding unlawful discrimination in recruitment, employment or to its customers and suppliers. Striving to ensure that the work environment is free of harassment and bullying and that everyone is treated with dignity and respect is an important aspect of ensuring equal opportunities in employment and there is a specific dignity at work policy. Where an employee becomes disabled every effort is made to ensure their employment continues and that appropriate adjustments are made.
· Contracts of employment – All employees are provided with a contract of employment detailing individual rights in terms of pay, benefits, and notice periods (all employees are free to leave)
· Recruitment policy - Macfarlane do not employee those under the school leaving age unless this is part of an apprenticeship-training scheme.
· All HR policies are available on the Company Intranet and are accessible by all employees

http://www.macfarlanegroup.com/corporate-resp_corp/corporate-resp_corp

As described above there are a number of policies in place with regards to Labour Principles. In addition Macfarlane has a whistleblowing policy providing employees with an independent service if they are not comfortable speaking to anyone within Macfarlane Group with regard to any matters which give them concern. Also there is a grievance policy providing a further mechanism for employees to raise concerns.

There are processes in place to monitor and measure employee satisfaction along with the number of employee grievances and the calls reported to the whistleblowing service.

The equality and fair treatment of all individuals is paramount to Macfarlane Packaging, with guidance and support provided to all employees.

In line with Macfarlane Group’s commitment to equality and fair treatment to all individuals, equal opportunities monitoring is carried out; monitoring diversity across management and employees.

If reported any incident of violation of labour principles will be independently investigated and appropriate action taken. Macfarlane Group also undergoes internal and external audits on a regular basis to identify any violations.

Macfarlane Group is committed to reducing the impact of it activities on the environment.
· We work closely with our suppliers to use sustainable resources wherever practical; and
· We support our customers in their efforts to reduce their environmental impact through their packaging choice.

http://www.macfarlanegroup.com/corporate-resp_corp/environment_corp
http://www.macfarlanegroup.com/corporate-resp_corp/corporate-resp_corp

We have implemented an environmental management system designed to continually improve our environmental performance. In order to meet this commitment, we pursue the following objectives:
· Ensure compliance with all applicable legislation and regulations
· Reduce emissions pollution
· Improve waste management practices
· Reduce the consumption of natural resources
· Minimise noise and other nuisances
· Continuously assess our environmental performance

All our UK packaging sites are registered to BSI ISO14001 environmental management standard.

Detailed measurements on our progress are available as follows
http://www.macfarlanegroup.com/corporate-resp_corp/corporate-resp_corp
http://www.macfarlanegroup.com/corporate-resp_corp/environment_corp

Bribery and corruption will not be tolerated within Macfarlane Group. Macfarlane is committed to preventing, detecting and responding to fraud, and co-operating with other organisations to reduce opportunities for fraud. There is a zero tolerance of criminal breaches of business practice and these may be reported to police. All employees have a responsibility for fraud prevention and detection.

Macfarlane Group has polices covering the anti-corruption and bribery along with a policy on the acceptance of gifts, ensuring that the business conduct of all employees is appropriate to the nature of the company and is conducted in a manner which avoids any conflict of interest and allegation of bribery or compromise.

http://www.macfarlanegroup.com/corporate-resp_corp/corporate-resp_corp

The policies referred to above are available for all employees on the intranet. They provide guidance on dealing with issues. Through the grievance policy and the whistleblowing call provision employees have the mechanism to report any issues.

Macfarlane Group undertakes through reference checking including financial information where appropriate, to ensure there are no conflicts of interest. Throughout business processes there are various levels of authority again to ensure there is no conflict of interest.

As part of the Gift Policy, Macfarlane Group operates a gift register where by any individuals who receive or provide a gift register the details. This register is monitored to identify any patterns or concerns. Internal audits are carried out and findings highlighted to management.