Cairo in May 28th, 2019

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 Elhelaly
CEO

In accordance to our commitment to the principles of the UN Global Compact, Modern Bakeries will always aim to protect and advocate for human rights in all the company’s activities and spheres of influence, and will not knowingly be complicit to any governmental or other party human rights violations.
Our Company written policy on Human Rights structure all our communications and practices internally according to align with the human rights international declaration and specially in terms of equity between all our stakeholders regardless their asex, religion or political parties.

We have internal grievance mechanism where any abuse of human rights noticed is to be safely informed

we follow progress in terms of reports received and continuous internal review through our compliance systems.

in Modern Bakeries we respect
Integrity
Teamwork and Ownership
Quality, Safety and Hygiene
Leadership Leading by example - at work and in the community.
Building trust through reliability. Working towards one common goal. Always striving for excellence.
The Code of Ethics and Business Conduct explains how these core values translate into a comprehensive set of commitments of Modern Bakeries, and into standards to be followed throughout our activities.
Employee Health and Workplace Safety
Modern Bakeries is committed to ensure occupational safety and protect and promote the general health and well-being of its employees, through health and safety management systems certified to the international standard OHSAS-18001, and through the selection of safe machines and comprehensive safety procedures. The company supports the general health and well-being of its employees through awareness-raising and provision of medical insurance and services. We also work to prevent drug abuse by raising awareness on related risks, and conducting periodic analysis of employees.
Modern Bakeries therefore requires each and every employee to observe the rules of safety in all functions and at all times. Employees must inform the administration immediately of any unsafe mode of operation or of any employee who may violate safety rules and cause any safety hazard. Possession or distribution of alcohol, controlled substances, weapons or other dangerous illegal objects is strictly prohibited and the company retains the right to search also personal belongings of employees on company premises or during working hours.
Equal Opportunities
Modern Bakeries firmly believes in the principle of equal opportunities and strives to ensure equal rights of appointment, payment and promotion for all employees, and to prevent discrimination in hiring and employment practices on the ground of race, color, religion, gender, age, physical ability, national origin, or any other grounds that are not related to the performance of the employee’s duties.
According to the team-spirit throughout the organization, all employees are expected to display an attitude of fairness and respect towards their colleagues at any time.
Forced or Compulsory labor, child labor and young employees
In accordance with the fundamental provisions of the International Labor Organization ILO and its commitment to the UN Global Compact the company respects the human right to personal liberty. All employees must be employed on their own free will and informed clearly about the terms of their contract. The company will not make use of exploitative and illegal child labor. Young employees above the legal minimum age of 14 will be provided with a safe working environment, and appropriate training and development opportunities.

Modern Bakeries commits to comply with all applicable Egyptian and international laws and regulations. We therefore require – and support – all managers to educate themselves and their department on the relevant legal requirements to the performance of their duties, and to ensure and enforce the compliance of our activities. Violation of laws is strictly prohibited, even when to achieve other objectives of the company.

Disciplinary measures
Modern Bakeries believes that the best way of leadership is by motivating employees at all levels, appealing to their individual responsibility and commitment, and emphasizing incentives over sanctions. However, if grave violations or misconduct occur, the primary purpose of any disciplinary action is to prevent the re-occurrence of the problem. To uphold justice and equality, the company commits to ensure unbiased treatment of employees and to the application of firm and impartial disciplinary procedures as outlined in the employee handbook/ related policy

Modern Bakeries recognizes the natural environment as the foundation for human life and well- being, and our own business activities. The company is committed to protect the environment and the community by complying with the relevant national laws and proving the application of highest international standards by independent certification. The company constantly aims to improve the eco-efficiency of its operations, and contributes actively to combating climate change by reducing hazardous emissions.

In Modern Bakeries we are all aware of the climate changes and challenges and we focus on using environmental friendly technologies and ensure our all stakeholders are enviromently aware and knowledgable so we take environmental awareness raising into consideration and as a high priority.

we analyse incidents responses and we keep in our systems all reviews of past incident to learn and innovate in our protection strategies and also to compare and measure our impact we create on advancing environment protection

It is the policy of the Company to provide full, fair, accurate, timely and understandable disclosure in reports and documents to authorities, as required by law. This relates especially to financial accounts, budgets, annual financial statements and tax reports. The company requires all its business partners to register for tax declaration and conduct business with tax bills.
Therefore, every employee is personally responsible for maintaining his / her records, and is expected to only sign accurate and truthful documents. It is strictly prohibited to conceal or withhold information, or provide misleading information to the company’s internal or external auditors, directors, or legal department.

Fair Competition
Modern Bakeries believes that fair competition is fundamental to a market economy that serves the needs of our country. The company will not engage in anti-competitive conduct as prohibited by law, and our pricing policy will not illegally or unfairly affect our competitors or customers. We do not engage in predatory pricing strategies, or any arrangements or understandings with competitors affecting the price, quantity or type of products we produce or sell.
Bribery and Corruption (policy and programme under development)
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. 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.
Gifts and Hospitality
It is not permitted for employees at all functional levels to request, accept, offer or give, directly or indirectly, any gifts or other advantages.
We may accept small gifts of limited value that constitute occasional presents and other advantages whose value per giver, calendar year and staff member does not exceed 100 EGP. Symbolic presents such as flowers or chocolate up to a value of 300 L.E can only be accepted by management level staff and need to be reported immediately. We may not accept valuable items. Valuable items received as gifts must be returned or disposed of as agreed by management.
Conflicts of Interest
Modern Bakeries expects all employees to avoid conflicts of interest between personal interests and the interests of the company, and the company takes great care and has implemented clear rules to prevent such conflicts of interest in all departments. Any company member is prohibited to participate in an activity or decision that involves an actual or potential conflict of interest, unless notified to and approved by his/her supervisor, who will determine special terms and conditions where necessary. It is also prohibited for all the heads of all levels to use their subordinates or other workers for special services during their official working hours and to abuse their power for personal gain in any form.
Confidential Information and Insider Dealing
The protection of confidential information is of utmost importance for business success, as relates to proprietary information, internal strategies, technical and financial data. Just as important is the protection of sensitive data related to suppliers, customers and business partners.
The company also takes great care to protect the confidentiality of un-published information which could influence company share prices, and prevent any misuse of such information.

In Modern Bakeries we handle Information about how the company deals with incidents of corruption. We have Internal audits to ensure consistency with anti-corruption commitment, including periodic review by senior management and we measure every Specific progress made in the area of anti-corruption during the last reporting period.