17th August 2012

To our stakeholders:

I am pleased to confirm that [ Company Name ] 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 have a specific section in our code of conduct which you will receive an attachment from where we explain clearly how do you perceive human rights . we have written our code of conducts with direct alignment with the international labor law and the Egyptian labor law

We have both a hot line for any complain including human rights violation by or to our employees off the company’s primes and we have a complain box in case of any person wants to complain any sort of violation to human rights or any other sort of violation to be opened only by the CEO to ensure secrecy . and in case of any violation a committee from the legal affairs and the hr department investigate in the case till the truth is revealed and this committee report directly to the CEO with the Outcome, and the corrective action. We ensure that all policies and rules related in human rights in the code of conducts is explaines to all employees . and we make sure that they understand that they have to full this rules on and off premises .

Aside from being audit by our stakeholders in all aspects including human rights , we legal affairs and hr departments along with the CEO has an open door policy , that if any one has any sort of complain including human rights is free to walk in the office and report his incidence officially to be transformed into an investigation till we make sure that everything is clear for every one included .

We follow the Egyptian labor law and our code of conduct in this aspect without any division from the start line, where all labor rights are mentioned clearly without any confusion . and there is code of conduct attached to explain this part in details . in our code of conducts in brief we make sure that all people are treated equal and fair and there is no discrimination on any bases between people in our company. Also we have taken child labor a step further by making sure that there is no one will be employed on our company except has complete and accredited his high school degree to make sure that there is no gap for people below the legal adge in our company .

On the implementation phase both the hr and the legal affairs department ensure that all employees receive their rights . also we have an in house physician who visit company twice a week for support to all company’s employees equally . and we have health and safety department which is concerned with all health and safety policies and regulation on company’s premises . we have a trained team with first aid and safety procedures during emergency and we are trying thrown training to increase this number annually

we have health and safety department which ensures that all safety procedures are followed on periodical bases and they conduct internal audit as well as external audit which is conducted by our stake holders. We also conduct virtual emergency trials annually to ensure that the company is ready in case of any emergency . also we are being audited by our external stack holders to make sure that we update our health and safety systems and this report is being observed directly by the CEO .

• 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 eliminating the amount of dust of one of the production lines by establishing a new system for suction to reduce the flour dust and reuse it in production. Also, a modification is made in one of the machines (Depanner) that generates noise by installing a silencer to it eliminating the noise to acceptable levels.

We have a very high measures for fighting corruption all actions which may have a negative influence on company’s reputation . there is a very specific division of our company’s code of conducts where we have a very clear explanation of all sorts of action and activities which could mean or understood as bribery , including giving or evening taking gifts. Were it is totally prohibited according to our policy and regulations.

We in modern bakeries have a very strict policies toward corruption where we ensure this massage is being clearly understood to all our employees and stake holders . We distribute our code of conducts to all our employees , and also we make sure it is being explained to all new hired employees. Accompanied by a special division in his contract where he sign to make sure that he is fully aware with our anti corruption policies. Also we have a hot line on all our trucks and products in case of any person has any concern or observed any violation of rules or policies on or of the company’s.

As there is no reported incidence till now with any sort of rule violation concerning the anti corruption policy . but we conduct a periodical audits on contracts and employees to make sure that they are fully aware of all our anti corruption policies and make sure that they received an awareness session in there induction program covering the code of conduct where the anti corruption policies are mention .