29th December 2013
To our stakeholders:
I am pleased to confirm that Modern Bakeries ] 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.
Sincerely yours,
Amr El Helaly
CEO

We, Modern Bakeries, ensure the protection of human rights within our operational activities on/ off premises.
We develop an important section to document Human Rights within our activities in the Conduct of Conduct , which is being supervised and observed that it is being implemented and protected by associated parties (legal affairs and outsourced HR Department

We have an internal communication system that permits every employee to address his issues directly to the ceo through complaint and suggestion box and periodical meeting and the open door policy that the ceo follows that allow any employee to meet him anytime.

we have a periodic meeting with the blue collar to give them a brief of their rights and their obligations towards the company. we created a manual for all business processes inside the company to provide reference for all the employees on how to properly perform the tasks they are trusted with a better understanding for their role inside the organization .

A total restructured for the organization chart inside the company to create a new vacant positions and to establish a solid career path and new promotion opportunities inside the company

set a training agenda for the whole year to cover all business & skills needed

Believing from us that everyone should be evaluated according to his/her performance without being affected by his gender, color, religion, and race, we implement the performance management system, which is being monitored by our outsourced HR department .

in case of human right violation, we in MB conduct an investigation through the legal affairs department supervision and monitored by the out sourced HR department , in order to make sure that all rights are preserved and no misconduct should occur again . Should the investigation result in such prohibited misconduct a strict disciplinarian action is taken against the employee .All the disciplinarian actions taken are abided by the Egyptian labor law.

An annual external audit made by a well known companies that covers all the related topics related to human rights

We in MB ensure that all labor receive their right fully by following the Egyptian Labor law in all our operational activity . As we abide by labor law we do not force child labor, compulsory labor and employment discrimination which is explained thoroughly in our coc ref
Concerning labor health and safety we in MB is very concerned with our employees health and safety we conduct a periodical health and safety trainings internally and externally , to make sure that every person in our company is aware with hazardous nature of our operation. To guarantee the safety of our employees ,we conduct periodical first aid and CPR training to make sure that people could support each other in case of emergency.

We have an internal communication system that permits every employee to address his issues directly to the suggestion box that opened periodically by the CEO

An awareness sessions held by senior managements to clarify their rights and describe each and every policy .

we MB have a specific team to cover all the health and safety issues and we have a policy that covered all the concerned areas

We conduct periodical training on all the system implemented in our company and post to this training , a training assessment report is executed to as well as a small exam to ensure that every person is aware with the training conducted.
Ensuring that that every person receives a fair employment package we exercise an annual salary satisfaction survey by our HR outsourcing provider to make sure that we are exactly within the market boundaries. Also in the annual raise we depend mainly on the performance appraisal process which is also conducted and monitored by the hr outsourcing department who analyze and decide on the annual raise. The HR department ensure that every employee approves his/her score in his performance appraisal .

Believing from us that everyone should be evaluated according to his/her performance without being affected by his gender, color, religion, and race, we implement the performance management system, which is being monitored by our outsourced HR department .

In case of any violation, we in MB conduct an investigation through the legal affairs department supervision and monitored by the out sourced HR department , in order to make sure that all rights are preserved and no misconduct should occur again . Should the investigation result in such prohibited misconduct a strict disciplinarian action is taken against the employee.

concerning any rulings , fines it is clearly mentioned in the coc as well as the employment contract , that each and every party know his role and his duties .

A non technical training related to work ethics & self development held this year 2013 with a professional life coaching company .

SA 8000 is applied in the company from with annual external auditing by certification body.

• Annual measurement of the Environmental aspects (such as dust , exhaust , sewage …….) is conducted by governmental authority in order to be controlled and comply with safe limits reported by the government. Appropriate actions are taken in case of any deviations of the environmental aspects. This issue is internally audited twice per year through internal audits and once per year externally by the certification body of ISO 14001:2004.\
• Company policy is designed to address the environmental issues and its responsibility along with all its employees to control their activities to be “Environment- friendly” and to avoid any negative impact of the activity on the community and environment. It is established to emphasize on the importance of the environment issues for our life, product and business success. It is written, communicated to all levels of employees to be reviewed once per year by Top Management through Management Review meetings and twice per year in the internal audits.
• Separate procedures addressing all environmental issues are established , locating the responsibilities of controlling every aspect and issue within the company.
• Certain procedure is established that defines responsibilities , procedures to protect humans, products , environment from the impact of incidents. Any incident is to be recorded in details determining the root cause of this incident , corrective actions needed , individuals related to this incident to be a lesson for future activities and periodically counted to evaluate the level of the company against the environmental system.
• Legal requirement identification procedure is established to identify the legal requirements for environmental issues ,responsibilities for applying, monitoring these requirements and actions taken in case of any violations of these issues.
• ISO 14001:2004 System is applied in the company from 2006 till present with annual external auditing by certification body

• Training and refreshment sessions are scheduled annually in the training plan to all employees on the requirements of ISO 14001:2004 Standard and tools used to protect environment from any violations.
• Project on reducing/saving different resources are initiated such as waste , energy …….etc. A saving project list is available indicating saving target , action plan and time frame.
• Productivity and process efficiency are measured and followed up on daily basis to achieve highest rates with lowest amount of resources (i.e. productivity per man hour , % of losses , % of rework , down time , % of OEE). Records and values of these KPIs are available upon request.
• ISO 14001:2004 is established , applied ,monitored and audited including the responsibility of Top Management till lower levels of individuals towards the environmental aspects that covers Policy , decision making , periodic awareness , specific environment measures , auditing all environmental management system activities regularly.
• Annual objectives and targets related to improving the environmental issues are set, responsibilities are designated , means and time frames are settled , periodically followed up and evaluated.
• Top management reviews all environmental system activities and its follow up at least once annually through the management review meetings.

• Suppliers are audited annually to assure they have a certain approach or system to focus on and handle all the environmental issues and their evaluation is influenced by these issues.
• The company is looking for a methodology to modify the processes to eliminate their impact on the environmental aspects such as conserving the resources by :-
Reducing the production losses either finished product by enhancing the quality control activities and tools (reduced by 18% in 2013) or raw materials using accurate techniques an weighing and restricted control measures.
2- Controlling the water consumption for each production or service unit to eliminate the waste of water and put a standard consumption for each individual process or activity by putting a flow meter for each one.

Modern Bakeries is determined to combat corruption and bribery in all its forms. Our strict zero-tolerance policy contains provisions for transparency and legal compliance of all financial transactions and reports, and strictly prohibits the offering or accepting of bribes or facilitation payments in dealing with governmental and non-governmental agencies, as well as the use of personal relations to advance company affairs.

Modern Bakeries has an Anti Corruption policy that covers all the corruption areas " bribery , gifts ,contributions ,conflict of interest

We have an internal communication system that permits every employee to address his issues directly to the ceo through complaint and suggestion box and periodical meeting and the open door policy that the ceo follows that allow any employee to meet him anytime

we spread awareness of the need to combat corruption and bribery, also through employee training, and require all staff to sign the anti-corruption policy.

Any case of doubt has to be reported to the Compliance Officer for documentation " legal affair manager "

In any case of doubt, staff members should consult the supervisor/department head/CEO (for high-level employees), or the Compliance Officer, who will then make a pertinent decision
Internal Record
For Modern Bakeries’ internal transparency and to support future decisions there is kept an internal record of cases. It must be reported to, and documented by, the Compliance Officer:
the past year we gathered all the areas that may cause any corruption and set a policies that cover all these areas