The purpose and values of the business

Associated British Foods plc is an international food, ingredients and retail group with annual sales of 9.3bn and 96,000 employees.

The group is one of Europe's largest food companies with a wide range of successful brands and products in the food sector, and an increasingly strong presence in advanced research and technology, where we are turning natural products into innovative ingredients for the food, personal care and pharmaceutical industries. A significant supplier of branded and non-branded grocery products and a leading textile retailer, we have major businesses around the world.

Our aim is to concentrate our energies and our expertise to achieve strong, sustainable leadership positions in markets that offer potential for profitable growth. As a group, we are also constantly searching for better, more efficient and more profitable ways to manufacture food and ways to employ our technology in other related sectors.

As a responsible corporate citizen, we aim to act in a socially responsible manner at all times. The group's organisational structure is highly decentralised and as such our companies devise procedures appropriate to and compliant with local laws, culture and operating conditions but within the overall context of minimum overriding principles.

Overriding principles

Following the introduction of new provisions concerning the duties of directors under the Companies Act 2006, directors must act in the way they consider, in good faith, would be most likely to promote the long-term success of the Company for the benefit of its members as a whole. In so doing, the directors should have regard to a number of factors listed in that Act. Those factors include having regard to the Company's employees, the need to foster the Company's business relationships with suppliers and others, the impact of the Company's operations on the community and the environment and the desirability of the Company maintaining a reputation for high standards of business conduct.

With this in mind, we have reaffirmed our commitment to a number of overriding principles.

Employees

Our employees are our most crucial resource, and therefore we abide by the following principles:

• Equal opportunities - we are committed to offering equal opportunities to all people in their recruitment, training and career development, having regard for their particular aptitudes and abilities. Full and fair consideration is given to applicants with disabilities and every effort is made to give employees who become disabled whilst employed by the company an opportunity for retraining.
• Health and safety - we consider health and safety as equal in importance to that of any other function of the company and its business objectives. The policy and full global report is available on the company website at www.abf.co.uk
• Harassment - we will not tolerate sexual, mental or physical harassment in the workplace. We expect incidents of harassment to be reported to the appropriate human resources director.
• Human rights - managers must take account of the core International Labour Organisation labour conventions and strive to observe the UN Declaration on Human Rights, by respecting the dignity and human rights of our employees and in particular as stated below:
  
  'Universal respect for an observance of human rights and fundamental freedoms for all without discrimination as to race, sex, language or religion.'
  
  We remunerate fairly with respect to skills, performance, our peers and local conditions.
• Communication - we will brief employees and their representatives on all relevant matters on a regular basis.
• Security - the security of our staff and customers is paramount and we will at all times take the necessary steps to minimise risks to their safety.

Ethical business practices

• Competition - we are committed to free and fair competition and we will compete strongly but honestly complying with all local competition laws.
• Bribery - we will not condone the offering or receiving of bribes or other such facilitating payments to any person or entity for the purpose of obtaining or retaining business or influencing political decisions.
• Political donations - financial donations are not permitted to political parties within the European Union. The consent of the Chief Executive is required for any other donation to a political party.
• Confidentiality and accuracy of information - the confidentiality of information received in the course of business will be respected and never be used for personal gain. False information will not be given in the course of commercial negotiations.
• Conflict of interest - any personal interest, which may prejudice or might reasonably be deemed by others to prejudice, the impartiality of employees, must be formally declared to a senior manager. Examples of this include owning shares in business partners and personal or family involvement in trading contracts.
• Business gifts and hospitality - gifts, other than items of very small intrinsic value, are not accepted. Employees who receive hospitality must not allow themselves to reach a position whereby they might be deemed by others to have been influenced in making a business decision as a consequence. However, giving and receiving reasonable business-related products, marketing materials and entertainment are permitted.
• Insider trading - employees are prohibited from buying or selling shares or other securities (such as bonds, derivatives or spreadbets) on the basis of inside information. Inside information is defined as information that is not available to the public, and includes financial data, plans for mergers, acquisitions or divestitures, changes in dividends, new products or major management changes. Trading in shares in Associated British Foods plc or any other publicly traded company on the basis of inside information is prohibited, as is the passing on of insider information to anyone who uses it to purchase or sell securities. Insider trading is illegal and may result in prosecution.

Food safety

We recognise and acknowledge that consumer confidence in the quality and safety of our food products is essential. To this end a high priority is placed on all aspects of food safety.

To manage food safety risks, our sites operate food safety systems which are regularly reviewed to ensure they remain effective, including compliance with all regulatory requirements for hygiene and food safety. Our food products are made to high standards regardless of where they are manufactured. We will always put food safety before economic considerations.

Stakeholder relationships

Customers

We seek to be honest and fair in our relationships with our customers and above all to provide the standards of product and service that have been agreed whilst at the same time offering value for money. At all times we take all reasonable steps to ensure the safety and quality of the goods or services that we produce.

Shareholders

Associated British Foods plc is committed to increasing shareholder value, and we will communicate our achievements and prospects to our shareholders in an accurate and timely manner. Apart from the annual general meeting the company communicates with its shareholders by way of the annual report and accounts and the half yearly interim report. Significant matters relating to the trading or development of the business are disseminated to the market by way of Stock Exchange announcements. The company also holds meetings with its major institutional shareholders to discuss the company's operations.

Suppliers

We will carry out our business honestly, ethically and with respect for the rights and interests of our suppliers. We will settle our bills promptly being a signatory to the Better Payment Practice Code and we will co-operate with suppliers to improve quality and efficiency. We seek to develop relationships with supplier companies consistent with these basic principles, and specifically with respect to human rights and conditions of employment. Where supplier audits show shortcomings in any of these areas, we will strive to encourage a programme of improvement leading to compliance. Responsibility for specific supply codes and agreements rests with individual companies.

The wider community

We recognise our responsibilities as a member of the communities in which we operate and encourage our operating companies to engage with the local community in their areas of operation. Examples of this include cultural and community sponsorship in Australia through George Weston Foods and the community activities of British Sugar in the UK.

The Garfield Weston Foundation was set up by the late W. Garfield Weston in 1958. It is one of the UK's foremost philanthropic organisations and derives a substantial proportion of its funds from its interests in Associated British Foods plc's ultimate holding company, Wittington Investments Limited. Further information can be found on www.garfieldweston.org

Applying our principles

These business principles apply to all our employees and are a minimum standard for their behaviour; operating companies may have additional standards. Failure to comply with our principles may result in disciplinary action.

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