Pizza Hut 2008 Annual Report Download - page 48

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abide by all laws and regulations and established industry practice that govern their business, wherever
they operate, and we have developed the resources, through the purchasing cooperative of which we are a
member in the U.S., to independently evaluate supplier conduct. If it is brought to our attention that any
supplier of YUM is in repeated violation of any employment law or regulation governing their business,
and corrective action is not taken, we would terminate our approval of this supplier. Moreover, we will
continue our commitment to protecting the environment and enhancing the quality of life in the
communities in which we operate.
We believe that creating the report required by the proposal would not be productive because our own
business interests require that our food chain be both safe and sustainable, and we have available the
expertise to make those determinations internally. We are working to leverage these resources and
improve in the areas discussed above. In addition, many of these issues were recently discussed and
addressed in detail in our global Corporate Responsibility Report. In sum, the proposed sustainability
report and review is unnecessary and would not result in any additional benefit to our shareholders or
employees. The proposed report would be costly and time-intensive, and is duplicative of many of our
existing initiatives, policies and efforts.
FOR THESE REASONS, WE RECOMMEND THAT YOU VOTE AGAINST THIS PROPOSAL.
What vote is required to approve this proposal?
Approval of this proposal requires the affirmative vote of a majority of the shares present in person or
represented by proxy and entitled to vote at the Annual Meeting.
Proxy Statement
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