Kraft 2002 Annual Report Download - page 28

Staying Connected with Public Expectations
Global corporations have risen to be among the most visible and
influential institutions of our day. Along with their influence have
come expectations, and a greater level of scrutiny than perhaps
at any time in the past. Quite rightly, the public wants assurance
that companies are operating lawfully and ethically, are providing
appropriate support to the community and are addressing
important social issues related to their business.
For our part, Kraft Foods is committed to meeting these
expectations.
Managing with integrity
Kraft has a long heritage of strong corporate governance.
We want to do the right thing, and we have the policies and
programs in place to help ensure that we do. And while we can
look back over a history of ethical conduct, our focus is on the
steps we are taking now to further strengthen the public’s trust.
Among these are:
•An expanded Compliance & Integrity program that provides
comprehensive standards for business conduct and is managed
by formal Compliance Councils, with oversight by the Audit
Committee of the Board of Directors.
•A new Disclosure Committee to ensure that the company is
meeting all disclosure requirements in its financial reporting.
•Independent Audit and Compensation & Governance
Committees of the Board of Directors, both composed
entirely of outside Directors.
Supporting the community
Under the Kraft Cares umbrella, we provided more than
$35 million in food and financial support in 2002 to communities
around the world, along with countless hours of personal
involvement by employee volunteers. Wherever possible, we
focus our resources on sustainable solutions that will increase
the long-term capabilities of individuals and organizations. A few
highlights of our efforts in the last year include:
•The Kraft Community Nutrition Program, which helps food
banks and other feeding programs in the U.S. increase the
quantity and nutritional quality of the food they provide.
•A regional cooperation agreement with the European Federation
of Food Banks to provide assistance in six countries.
•Green Roof for Europe, a program developed with Alp Action
to protect Europe’s alpine environment by planting more than
500,000 trees since 1991.
•More than $4 million of annual employee giving to the Kraft
Employee Fund and United Way in support of community
nonprofit organizations.
•A wide range of employee volunteer activities, including
Kraft Cares Day in the U.S., Brazil, Australia and the U.K.
•Emergency food for victims of natural disasters on
five continents.
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kraft foods inc. kraft and the community
Addressing key issues
The manufacture and marketing of food products inevitably
involves companies like Kraft in a variety of complex social issues
of importance to the public. We have the responsibility and the
desire to address these issues constructively. We are committed
to doing our part to help forge lasting solutions where we have a
meaningful role to play. Among the issues we are addressing are:
Nutrition, activity and health—The growing prevalence of
obesity is a major public health challenge. We are focusing
our efforts in three areas:
•Increasing our long-standing support for innovative public
education programs that help families improve their eating
and activity behaviors.
•Strengthening our marketing policies and practices to ensure
they are consistent with our commitment to helping people
make healthy lifestyle choices.
•Enhancing our range of product choices to make it easier to
eat and live better.
Food biotechnology—While we have no direct economic
investment in biotechnology, we believe it holds promise for
significant nutritional and environmental benefits. We also
believe that strong science-based regulatory systems must
be in place to ensure those benefits are attained safely. We
comply fully with applicable laws in each country in which
we sell our products, and make decisions regarding the use
of ingredients based on regulatory requirements and public
acceptance in individual markets.
Agricultural supply chain—Some of our products, such as
coffee and chocolate, are dependent on agricultural commodities
grown in developing countries. While we do not own or control
farms in these countries, we have made a range of commitments
in a number of locations to work with farmers, international
development organizations and others to improve farming
practices, support economic development and encourage
appropriate labor policies. These include:
•Programs to improve coffee quality and the value of crops in
Peru and Vietnam.
•Assistance for food and education programs in Nicaragua,
Panama and other countries affected by the current decline
in coffee prices.
•Joint efforts with industry and government groups to promote
labor practices on cocoa farms in West Africa in keeping with
International Labor Organization standards and Kraft’s own
labor policies.
Environment—In conducting our business, we are always
mindful of the environmental impacts our activities may have.
We have put programs in place to reduce these impacts wherever
practicable, and we strive to conduct our operations as a good
neighbor and a responsible corporate citizen.
We know that to sustain the public’s trust we must meet the
public’s expectations. Whether it’s support for the community
or our role in important social issues, Kraft is committed to
sustaining that trust.