Introduction

American President Calvin Coolidge said in the 1920s

that “the chief business of the American people is
business.” It was a popular observation in a time of
economic prosperity, when issues such as energy
security and climate change were practically
nonexistent. Almost a century later, things are very
different. Now, more than ever, private enterprise is
being called upon to exercise social responsibility,
especially when it comes to the environment. This
trend reflects the view that companies ought to do
more than simply meet the letter of the law and the
bare minimum of ethical business behavior. Today we
discuss the idea of “corporate social responsibility.”

Corporate social responsibility is a regulating business model that helps a company to be

socially accountable, sustainable and transparent to its self, its, stakeholders, and the public as
well. The company should exercise their responsibility to have an efficient and quality business
that remarks in every customer, to build a strong relationship and satisfiable needs and wants.
Corporate social responsibility is a management concept deals min ethical, economical and
environmental issues in a certain area.

President Coolidge, like many American presidents before and since, kept government out
of the affairs of business as much as possible. But starting in the 1960s and 1970s, the
environmental impact of an ever-expanding economy was generating more and more protest
from citizens. The result was a wave of legislation designed to reduce the pollution produced by
business activity. Those laws had positive effects and are now vital parts of the American
regulatory framework. But despite these regulations, controlling pollution continues to be a
challenge. And now there are even larger problems on the horizon.

Even though businesses today are more efficient and use fewer resources to make goods—
thanks to technological advances— many ecosystems continue to suffer. This is because the
scale of economic activity grows every year, despite environmental improvements by individual
enterprises. Starting a few years ago, many citizens in the U.S. and around the world began calls
for more action from private enterprise on these social issues—beyond compliance with
regulations and traditional charity-related work. The result was a new movement known as
corporate social responsibility, or CSR.

What Is Corporate Social Responsibility?

From the beginning, CSR has been the subject

of much debate. CSR’s critics argue that the
main responsibility of businesses is to
maximize return to their shareholders. They
point to the corporate legal system as the
proper place for regulating businesses’ conduct
with society. And besides, businesses are
already fulfilling a key public service by
providing jobs and services that society needs.

Other critics assert that many so-called CSR

activities are really just publicity stunts and
corporate “green washing.”

Supporters of CSR contend that there are

significant profit-related benefits in socially
responsible behavior. Companies are using their CSR activities to recruit and keep the best
management talent and to establish partnerships with communities to increase company
influence on legislation. And companies that make social responsibility an integrated part of
their business actually are managing risk—a key part of corporate development strategy.
Despite the ongoing debate, trends indicate that CSR is gathering force and is here to stay.
More and more leading companies in America and worldwide are releasing sustainability
reports. Plus, new industries like clean energy provide social and economic benefits while
fighting environmental problems like climate change. The result of that combination has been
called one of the greatest commercial opportunities in history.
As CSR is all about values and accountability then it is also about the behavior of your people
and the behavior of your suppliers. In this sense virtually everything that is found within the HR
remit - from training, recruitment, staff retention, policies, procedures and strategy - involves
CSR.

Traditionally HR and CSR have been led by the need for compliance and keeping up with
new laws on employment as well as environmental, ethical and social issues. Increasingly HR
managers are crucial to the delivery of training to deal with these issues in terms of
organizational objectives and strategy. Equally important is the importance CSR has to
recruitment: 75% of UK professionals take social or ethical considerations into account when
changing employment. Whilst over half of graduates will not work for companies they believe
to be unethical.

Corporate governance is a board level hot topic - you only have to look at how much
publicity the Higgs report on the role of non-executive directors received – and it will continue
to develop, as there is increased recognition that how an organization is run is key. This can
cover many areas such as financial integrity, transparency and accountability, leadership from
the board and being employer of choice.

It is central to the implementation of policies and programmers. Having good corporate

governance means that these areas are embedded in the organization and deliver to the
business and to stakeholder objectives, and are not just nice-to-have. The HR manager has
become central to this role in helping deliver culturally open and transparent organizations
where dialogue is celebrated not feared. For a business being CSR compliant is also an exercise
in future-proofing its business as risks and opportunities are identified. Quite often changes
lead to performance improvements such as increased staff retention and customer satisfaction.
Adding this value is one of the main reasons why CSR is of increasing relevance to the HR
manager. CSR is a crosscutting topic under which numerous issues can be grouped including
training and education, capacity building, leadership, health and safety, working conditions,
human rights, stakeholder engagement and corporate governance. Large multi-national
companies were the first to identify CSR as a potential tool to improve performance and now
through their supply chain they are asking suppliers to comply to their standards. It is here to
stay. In the UK there is a minister responsible for CSR within the Department for Trade and
Industry and there are a plethora of guidelines, indices, benchmarks, standards and legal codes.
Need for Corporate Social Responsibility

Communication- Business owners often get mired down in the details of running a business on
the operations side. After all, without creating, selling and delivering products or services there
are no revenues to support the business. Possessing or developing excellent communication
skills will help business leaders and their teams in every facet of business operations.
Economy- Is the science that generates relations between society and public and private
administration, thanks to the economy we can measure the stability of a country, its
development and growth in order to generate policies that tend to improve the overall welfare
situation.

Society- To produce and distribute goods and services to satisfy a public need or demand.
According to Business News Daily corporate social responsibility (CSR) is "a business practice
that involves participating in initiatives that benefit a society." However, corporate social
responsibility is more than just a simple business practice. When you pursue a Master of
Business Administration (MBA), you will learn how to differentiate the blurred lines of working
for profit and working to help maintain the social order. Society does not exist without some
form of an economy, and businesses are what make up the economic system of the world

Environment- Business is one of the most important entities in the society. Its decisions and
actions have the potential of creating a change in society, good and bad both. Therefore to not
misuse the trust of the society, businesses are bound by business ethics. It means fulfilling the
commitments given, undertaking responsibility, not compromising in the quality and to ensure
reliability.

Health and Safety- Health and Safety are important because it protects the well being of
employers, visitors and customers. Looking after Health and Safety makes good business sense.
Workplaces which neglect health and safety risk prosecution, may lose staff, and may increase
costs and reduce profitability.

Labor- Creating a peaceful relationship between employers and business. Employers can work
hand-in-hand with the business to achieve company goals. With good working conditions,
benefits and rights, employees become more cheerful in their jobs and they become positive
about their prospects in the business.

Management System- It is a set of tools for strategic planning and tactical implementation of
policies, practices, guidelines, processes and procedures that are used in the development,
deployment and execution of business plans and strategies and all associated management
activities. Business Management System provides a foundation for successful implementation
of both strategic and tactical business decisions regarding current activities, processes,
procedures and tasks for the purpose of meeting existing goals and objectives of a profit
organization and satisfying customer needs and expectations.
Corporate Social Responsibility in Today’s World
 A strategic approach to CSR is increasingly important to a company's competitiveness. It can
bring benefits in terms of risk management, cost savings, access to capital, customer
relationships, human resource management, and innovation capacity. It also encourages more
social and environmental responsibility from the corporate sector at a time when the crisis has
damaged consumer confidence and the levels of trust in business.

Through CSR, enterprises can significantly contribute to the European Union’s treaty objectives
of sustainable development and a highly competitive social market economy. CSR underpins
the objectives of the Europe 2020 strategy for smart, sustainable and inclusive growth,
including the 75% employment target. Responsible business conduct is especially important
when private sector operators provide public services.

CSR requires engagement with internal and external stakeholders so it enables enterprises to
anticipate better and take advantage of fast-changing expectations in society as well as
operating conditions. This means it can also act as a driver for the development of new markets
and create real opportunities for growth.

By addressing their social responsibility, enterprises can build long-term employee, consumer
and citizen trust as a basis for sustainable business models. This in turn helps to create an
environment in which enterprises can innovate and grow. The economic crisis and its social
consequences have to some extent damaged levels of trust in business, and have focused
public attention on the social and ethical performance of enterprises, including on issues such
as bonuses and executive pay.

Helping to mitigate the social effects of the crisis, including job losses, is part of the social
responsibility of enterprises. In the longer term, CSR offers a set of values on which to build a
more cohesive society and on which to base the transition to a sustainable economic system.

By renewing efforts to promote CSR now, the Commission aims to create conditions favorable
to sustainable growth, responsible business behavior and lasting job creation for the medium
and long-term.

Implementing Corporate Social Responsibility

There is no “one-size-fits-all” method for pursuing a

corporate social responsibility (CSR) approach. Each
firm has unique characteristics and circumstances
that will affect how it views its operational context
and its defining social responsibilities. Each will vary in its awareness of CSR issues and how
much work it has already done towards implementing a CSR approach.

That said, there is considerable value in proceeding with CSR implementation in a

systematic way—in harmony with the firm’s mission, and sensitive to its business culture,
environment and risk profile, and operating conditions. Many firms are already engaged in
customer, employee, community and environmental activities that can be excellent starting
points for firm-wide CSR approaches. CSR can be phased in by focusing carefully on priorities in
accordance with resource or time constraints. Alternatively, more comprehensive and
systematic approaches can be pursued when resources and overall priorities permit or require.
The bottom line is that CSR needs to be integrated into the firm’s core decision making,
strategy, management processes and activities, be it incrementally or comprehensively.

The impulse for harmonization also stems from the wider social context. As will be
described below, there are a number of governmental and partnership developed initiatives
that have emerged to provide guidance on governmental and societal expectations of business.
By using these instruments—such as the OECD MNE Guidelines or the UN Global Compact—
business users can be confident that they are basing their efforts on internationally-endorsed
approaches. What follows below is a broad framework for implementing a CSR approach that
builds on existing experience as well as knowledge of other fields, such as quality and
environmental management. The framework follows the familiar “plan, do, check and improve”
model that underlies such well-known initiatives as those of the International Organization for
Standardization in the areas of quality and environmental management systems. The
framework is also intended to be flexible, and firms are encouraged to adapt it as appropriate
for their organization

Arguments of CSR of Del Monte Corporation

 Fresh Del Monte argues that by selling those products in the produce section — sometimes
with the words “must be refrigerated” on the labels — Del Monte Foods is misleading and
confusing consumers, who may mistake the contents of the packages for fresh fruits. If the
products need to be refrigerated to prevent spoiling, Fresh Del Monte argued in its court filings,
they would be fresh fruit under the terms of the licensing agreement. And in any case, Raoul
Kennedy, the company’s litigator, argued in court, the contract and a previous court opinion
gives Fresh Del Monte, not Del Monte Foods, the exclusive right to sell refrigerated pineapple
and other fruits, including melons, berries, papayas and bananas “peeled, cut and cored.”

Mr. Kennedy said that if Del Monte Foods wanted to sell peanut butter in the produce
section, Fresh Del Monte would not have a problem with it because consumers would not
mistake peanut butter for “fresh melon.” “We’re talking about things that have this carefully
contrived perception of freshness to deliberately confuse people,” he said. In keeping with the
spirit of the fight, Del Monte Foods portrayed the lawsuit in court filings as “a classic case of
sour grapes.”

Arturo J. Gonzalez, a lawyer for Del Monte Foods, told the jurors that although the
company had been selling cut, processed and refrigerated fruit products since 1998, it had
heard no complaint from Fresh Del Monte until 2008, when the fresh produce company’s sales
began slipping. “We beat them in the market,” Mr. Gonzalez said. “Their product just doesn’t
sell.”

As evidence he cited a January 2009 e-mail from a Fresh Del Monte employee, describing to
a national account executive how the Shaw’s grocery stores in his neighborhood had moved the
company’s products to the lowest refrigerated shelves and replaced them with Del Monte
Foods’ Superfruit cups “by the hundreds.” “When I talk to the produce guys at the stores, they
say our stuff just doesn’t sell,” he wrote.

Mr. Gonzalez said Fresh Del Monte had offered no empirical evidence that consumers
mistook Fruit Naturals or any other of his client’s refrigerated and preserved fruit products for
fresh fruit. Most people, he said, know that fruit visibly packed in liquid and labeled as
containing sodium bicarbonate and other preservatives is not fresh. The one thing both
companies agree on is that Del Monte is one of the country’s best known brands. The name can
be traced back as far as an expensive blend of coffee prepared in the 1880s by an Oakland,
Calif., food distributor for the showy Hotel Del Monte on the Monterey Peninsula.

In 1892, that company decided to apply the name to a new line of canned peaches. The Del
Monte Corporation, comprising that original food distributor and others, did not exist until
1967. The Del Monte Corporation set a high standard in the food industry in 1971, when it
became the first American food company to put nutrition labeling on its packaging. Eight years
later, it was bought by R. J. Reynolds Industries, the tobacco company, which was on a
diversification binge. A decade later, what was then known as RJR Nabisco was taken over by
the private equity firm Kohlberg Kravis Roberts & Company, in a deal immortalized in the
book, “Barbarians at the Gate.” To raise money, KKR immediately set about selling assets,
including Del Monte.

“For reasons seemingly dictated by financial considerations, RJR Nabisco agreed to split the
Del Monte business,” recounted Judge Jed S. Rakoff, who in 1998 and 1999 presided over a
separate lawsuit between Fresh Del Monte and Del Monte Foods, the two companies that
resulted from that process. The split was known to insiders as the “Great Divide.”

The canned and preserved produce business, Del Monte Foods, was sold to an investor
group led by Merrill Lynch, which retained ownership of the trademark. The fresh produce
business went to Polly Peck International, a British conglomerate led by a prominent Turkish
Cypriot investor, Asil Nadir.

Polly Peck paid $875 million to use the Del Monte brand to sell fresh fruit and fresh
vegetables, as well as other cut, refrigerated and frozen fruit products, in perpetuity and with
no obligation to pay royalties, under the terms of the much disputed licensing agreements.

A year later, Polly Peck fell apart in a financial scandal that led to corporate legal reforms
in Britain. Fresh Del Monte was sold first to a set of Mexican investors who relied on a spiritual
adviser to formulate their bid, and then to a Palestinian investment group that incorporated it
in the Cayman Islands and eventually listed it on the New York Stock Exchange.

Mr. Nadir’s trial on charges that he diverted £150 million (about $240 million) from Polly
Peck began this year in London. Del Monte Foods was sold in 1997 to the Texas Pacific Group, a
private equity firm, and went public two years later. Then, in 2002, Del Monte bought several
prominent brands from the H. J. Heinz company — including College Inn and 9Lives cat food,
which it added to its growing pet foods business — and more than doubled the company’s size.
Then, in a strange twist of fate, KKR, together with two other private equity firms, rebought Del
Monte for $5.3 billion in 2010.

As Judge Rakoff and countless others have noted, the licensing agreements divvying up fresh
and processed produce were not a model of clarity. In an oral ruling from the bench in the
earlier case, Judge Rakoff said the licensing “certainly has more than its share of ambiguities,
and that is the function, the court finds, not only of the time pressures under which it was
drafted but also of the fact that it was largely negotiated between business persons who were
not, frankly, wholly candid with one another as to their ultimate goals and understandings.”
 In that case, Del Monte Foods sued Fresh Del Monte for test-marketing the sale of cut,
refrigerated fresh fruit in plastic cups, contending that constituted processing. Judge Rakoff
ruled in Fresh Del Monte’s favor. “Indeed,” he said, “it is refrigeration that keeps fresh fruit
fresh.”

The jury in the current case, which began its deliberations on Thursday, is unaware of that
ruling. Even though Fresh Del Monte and Del Monte Foods filed Judge Rakoff’s opinion with
their complaints, Del Monte Foods refused to allow it to be admitted into evidence.

The success of our business is intertwined with responsible stewardship of nature, the source
of our products and profits.

Around our community in

Bukidnon, Philippines

The success of our

business is intertwined
with responsible
stewardship of nature
which is the source of our
products. As such, we
continuously improve our
agricultural practices and oversight of growers, and communicate our Environmental Policy to
our stakeholders as we support sustainable processes to enhance our environmental footprint.

Our Environmental Policy is updated periodically to reflect new advances in best practice and
better serve the Company’s operating needs. This policy is posted in our facilities,
communicated to facility management and also incorporated in our training for operations
staff.

One of the projects implemented to maintain DMPI’s world class plantation management
system was the Drone Program which allows us to monitor the condition of the 25,000-hectare
pineapple field in Bukidnon, Philippines. It captures pictures, including topography and color,
which help determine the health of the plants and optimize inputs of production. Global
Positioning System (GPS) technology is also now being used to monitor the plantation and truck
deliveries to ensure efficiency, productivity and safety at work.

Part of our Quality Policy in the Philippines is our commitment to environmental standards and
sustainability objectives, statutory and regulatory compliance, and continuous improvement of

our quality system by adhering to the highest ethical standards within our operations and in
dealing with our business partners.

Pineapple spray operation in Bukidnon, Philippines

“There can be no Plan B because there is no planet B.”

The foundation of DMPI’s sustainable agriculture practices is efficient land use. Ecologically-
minded land use management was carried on from our pioneers who started farming in 1926.
Across over 90 years of operations, our land use practices are mainly aimed at improving
plantation yield through ecologically friendly land preparation, plant disease management and
chemical application, efficient water sourcing and drainage, and use of sustainable planting
materials.

Pineapple plantation in Bukidnon, Philippines

Our agricultural teams work closely with local farmers to adopt agronomic measures that can
mitigate adverse consequences of crop agriculture on soil and water conservation. Responsible
farming focuses on sustainable crop cultivation and efficient drainage systems, disease
management and innovative as well as tried-and-tested practices, including minimizing build-up
of surface water during heavy rain, and positioning grass strips at strategic points to slow down
water flow.
Fruit receiving line in cannery
Water Management
The agricultural sector uses 70% of the world’s accessible freshwater supply, and many
countries are reaching, or have already reached, their renewable water limits. With growing
climate instability resulting in increasing droughts and other water pollution concerns, water
scarcity is quickly becoming a top issue in the agriculture sector and governs where plants are
grown, placing limits on productivity.

Managing water resources to maximize water efficiency, minimize pollution, and protect access
to water for other users is truly a shared challenge for food processors.

Responsible farming focuses on sustainable crop cultivation and efficient drainage systems,
with innovative as well as tried-and-tested practices, including minimizing build-up of surface
water during heavy rain and positioning grass strips at strategic points to slow down water
flow.
We look for ways to optimize water use in all of our toll manufacturing operations, reduce
water usage and increase water reuse and recycling.

1. DMPI uses the condensate (water from steam and pineapple juice) of our evaporators
and permeate (water from mill juice) from our Reverse Osmosis (RO) system for Ultra
filtration System CIP and Ion Exchange Plants regeneration. These allow us to use less
fresh water and avoid water treatment costs.

2. Our PET Plant Operations measure the Water Use Ratio (WUR), i.e. total cubic meter
of water used per MT of finished product, or the volume of groundwater used per
volume of beverage product. Our WUR in the PET Plant for FY2018 is 11.29, below the
11.87 maximum targets.

3. The Pet Plant’s water conservation Initiatives include:

a. Improve WUR by 10%
b. Improve RO efficiency from 45% to 64%
c. RO water recovery system
d. Activation of additional Activated Carbon Filter tank

4. Our toll manufacturers have water conservation programs to eliminate waste and
reduce water usage. Wastewater discharges of all toll manufacturing lines are within
regulatory standards. WUR in beverage and culinary toll manufacturers are monitored
and will be reduced each year.
Pineapple planting in Bukidnon, Philippines

Soil Management

“In life we need to be a little likes the farmer, who puts back into the soil what he takes out.”

Paul Newman

Our plantation in the Philippines is Global Good Agricultural Practices certified, further
affirming a management system focused on Food Safety, Worker’s Health and Safety,
Environmental Protection and Conservation of Wildlife. GLOBALG.A.P. is a globally recognized
private sector body that sets voluntary standards for agricultural products. Our plantation and
pack house for fresh fruits have been certified ISO 9001:2015 for growing, harvesting and
packing of fresh fruits by SGS United Kingdom Ltd. Systems and Services Certification body.

Our participation in the GLOBAL G.A.P. Certification process was voluntary and was a strategic
response to customers’ demand for food safety worldwide. A Philippine Good Agricultural
Practices (Phil G.A.P.) certificate issued by the Philippine Department of Agriculture also attests
that our farms grow, pack and distribute fresh produce in conformance with international
standards on food safety and quality.
Field Workers in Bukidnon, Philippines

Occupational Health and Safety

We are committed to ensuring our employees’ health and safety. Providing employees with a
safe work environment is one of our priorities. We value our employees in a way that makes life
better for every member of the organization. Moreover, ensuring the health and safety of our
employees reduces costs arising from lost-time injuries and medical leaves.

We consistently provide safety training to plantation and cannery employees and enforce the
use of personal protective equipment required in performing their assigned duties and
responsibilities.

DMPI work committees identify potential safety risks and hazards, and devise action plans to
mitigate or avoid its occurrence. Safety programs are implemented and process improvements
are made to ensure workplace health and safety.

1. In the Philippines, the Workplace Environment Monitoring program also verifies the
company’s compliance with the standards of the OSH of Department of Labor and
Employment which includes measurements of workplace’s air quality, noise level,
illumination, temperature, relative humidity, vibration and heat stress.
2. Our managers and supervisors are expected to keep abreast of the workplace’s safety
laws and regulations that apply to their areas of responsibility and ensure compliance
with these provisions.

3. Facilities in the Philippines have Emergency Response Teams and Fire Brigade Teams,
which are identified and trained for cases of crises and these teams lead the conduct of
regular Emergency Preparedness Drills to ensure that all employees are aware of what
to do in case of emergencies and natural disasters.

4. Safety trainings have been extended to our service providers in both the plantation and
cannery.

5. We conduct periodic inspection of trucks and forums on safety and training on

defensive driving to help reduce our accident rate in the Philippine cannery and
plantation

6. Our office in Manila - the Jose Y Campos Centre building - was certified LEED Silver by
the USBGC for being energy and water efficient and for using safe materials, providing
employees with a safe and healthy work environment.

7. DMPI audits the toll manufacturers regularly for compliance with all laws and
regulations governing workplace safety and health, including Occupational Safety and
Health Regulations.

8. Toll manufacturers in the Philippines provide ongoing safety training to all their
employees, enforce the use of personal protective equipment required in performing
their assigned duties and responsibilities and conduct periodic Work Environment
Measurements for noise, illumination, nuisance dust particles and fumes to ensure
suitability of work environment.
We are a people-driven organization committed to growing wellness and a high quality of life
through healthy working relationships.

Del Monte Philippines CEO Joselito D Campos, Jr visiting cannery staff in Bugo, Cagayan de Oro
city, Philippines.

We are a people-driven organization committed to growing wellness and a high quality of life
through harmonious working relationships with all stakeholders, including customers,
employees, business partners and investors. Some 5,600 regular employees of the Company
work at our plantation, manufacturing facilities, administrative and marketing offices. About
3,500 are employees based in the Philippines and Singapore.

Given that our employees are our most valuable resource, we are committed to fundamental
human rights and adherence to labor standards. The farm and production facilities employ
people from surrounding communities in the Philippines. Workers are paid above average rates
in the industry and are informed of the terms and conditions of employment prior to their
appointment. They undergo medical examinations annually and whenever required. Child and
forced labor and any other form of exploitation are not.

Discrimination on the grounds of nationality, ethnicity, religion, age and gender is against the
Company’s Code of Business Ethics.
DMPI Plantation Director Alejandro G Chavarria inspecting a pineapple field in the Philippines

1. Landholdings are leased by the and silting basins specially

Company from lawful landowners designed for each field.
by virtue of their respective
3. Trees and shrubs are planted
ownership or stewardship
along river easement near
documents as attested by
pineapple fields to prevent soil
concerned government agencies.
erosion.
2. DMPI installs soil conservation
4. Our agricultural team conducts soil
measures in pineapple fields. For
erosion studies and has developed
better soil and drainage
a soil conservation manual.
management, the Crop Growing
Units implement deepening of 5. We also reinforce technical
ditches and install auxiliary canals competency through continuous
 training and education on soil 7. The Company cooperates with
management to reduce soil agrarian reform beneficiaries and
erosion in our plantation. the Philippine Department of
Agrarian Reform towards efficient
6. With better fruit quality and
implementation of Comprehensive
greater operational efficiency, we
Agrarian Reform Program.
have initiated programs to:
a. Minimize waste and improve 8. Some of the soil conservation
efficiencies in electricity and water measures done in the Philippines
consumption are standardized basin design,
b. Increase usage of recycled but using bamboo as check-dams
viable packaging materials following standard spacing and
c. Measure production efficiencies installation of back-slopes on
via 5S, Total Productive roads.
Maintenance and 6 Sigma
d. Enhance the health and well-
being of our workforce and their
families
e. Ensure compliance of our
service providers with local labor
laws
The generator sets for the waste-to-energy facility in Philippines

Climate Change Adaptation and Energy Efficiency

We face opportunities and risks associated

with climate change. Predicted impact of
climate change, such as increased
temperatures, less reliable water supplies,
and more intense extreme weather events,
can significantly impact our operations and
supply chain.

We closely monitor our carbon footprint. While most manufacturing companies, including food
companies, are carbon positive, meaning they emit more carbon dioxide into the atmosphere
than they sequester or absorb, the carbon footprint of Del Monte Philippines, Inc. (DMPI) is
negative. DMPI is the largest producer of pineapples in the country and its vast 25,000-hectare
pineapple plantation and forest areas reduce the amount of carbon dioxide, offsetting any
emissions in the atmosphere. There are not many companies that are carbon negative or even
carbon neutral. Less carbon emissions are better for the environment. DMPI, a leading
manufacturer of food and beverages, is uniquely positioned amongst food companies to help
mitigate climate change. DMPI plants various timber trees in plantation camps, company
grounds and facilities. Bamboos are planted along field boundaries and non-arable land.
The Company continually assesses our investment opportunities in renewable energy solutions
in each of our facilities. A number of renewable energy projects have been implemented across
our facilities in the Philippines.

In the Philippines, Del Monte embarked on a renewable energy project that produces biogas
using cannery wastewater. The waste-to-energy facility generates 2.8 MW of electricity. More
significantly, cleansed water discharged at coastal waters of Macajalar Bay has Biochemical
Oxygen Demand (BOD) levels below government mandated levels. The waste-to-energy facility
supports our Company’s long-range plan for increased production which ensures 100%
wastewater treatment, and serves as a shield against unstable power supply and power cost
increases.

We will continue to seek out energy reduction opportunities across all our facilities and invest
in improvements that collectively reduce our air emissions, including GHG, and our operating
costs.

1. Del Monte in the Philippines embarked on a renewable energy project that produces
biogas using cannery wastewater.

a. This plant complements the job done by an equally eco-effective but power-
intensive aerobic treatment plant.
b. This plant highlights our commitment to environmental stewardship on reduction of
our GHG in compliance with the Clean Air Act of the government -- recycling while
enhancing our business competitiveness through reduced energy costs.
c. This plant reduces the yearly energy cost of the company by approximately 40
million pesos because it is 20% cheaper than the grid which mostly relies on coal-fired
plants.
2. We received the Outstanding Award in the Don Emilio Abello Energy Effiency Awards
in 2017.
3. By using the waste-to-energy facility in the Philippines, we have reduced 29% of the
cannery’s power cost per kwh.
River clean-up drive by Del Monte employees in Laguna, Philippines

Waste Management

“There is no such thing as “away”. When we throw something away, it must go

somewhere.” Annie Leonard, Proponent of Sustainability
We are also committed to sustainable waste management across our operations. We aim to
reduce the overall consumption and usage of raw materials in all facets of our operation,
including toll manufacturers. In line with this, we encourage the reuse of materials in all areas
of operation. We promote the concept of recycling and the benefits of utilizing recycled
materials. When disposal is the only option, we seek to dispose materials in an environmentally
safe and responsible manner. We understand that the correct handling, storage and disposal of
waste materials is essential to comply with environmental regulations and pollution prevention.

Our pineapple pulp waste disposal system, a pioneering effort which started in the 1950s,
converts a by-product of the cannery into feed for our cattle farm at the plantation. This helps
us reduce waste and cut costs.
Coastal Clean-up of Macajalar Bay, Philippines

1. Awards received in Pollution Control Association in the Philippines include “The

Outstanding Pollution Control Officer Award” and 1 st Runner-up for “Mother Nature
Award.”

2. Our PET Plant Operation implements a solid waste segregation program in order to
capture recyclable wastes and sell them as scrap materials.
3. All toll manufacturers practice waste segregation, and waste management is part of
new employees’ training of our toll manufacturers. DMPI ensures that all toll
manufacturers comply with water and smoke discharge regulations.
Tree planting activities by Del Monte employees

Biodiversity and the Environment

Under our sustainability framework, we have significantly enhanced our stakeholder advocacy
program for environmental conservation. Our carbon footprint remains carbon-negative.
However, we continue to undertake many initiatives during the year to reduce process
residues, strengthen energy conservation in all worksites and plantation homes, and explore
more efficient energy sources.

1. Through its coffee production project, the Del Monte Foundation is able to assist 22
families who maintain the 3-hectare coffee farm in Bukidnon, Philippines. It will take 2
more years for the coffee plants to bear fruit and be harvested.

2. In the Philippines, we also spearheaded the River Rehabilitation Project: Vetiver

Planting. This project is a recipient of the World Water Day Award 2018 “Kampeon ng
Lawa (Champion of the Lake).”

3. Part of our CSR initiatives of our toll manufacturers are the Waterbody Program and
Quarterly Orchestrated Clean-up by the Department of Environmental Natural
Resources-Environmental Management Bureau. The theme was World Water 2018:
“Nature for Water”. Pro Foods International Corporation, one of our tollpackers, was
assigned the Butuanon River for continued protection and revitalization of our
adopted rivers.
 4. Our PET Plant has the Environmental Compliance Certificate ECC-R4A-1504-0291 and
Laguna Lake Development Authority Clearance PC-20a-016-00199.

5. The PET Plant is an active member of Cabuyao River Protection Advocates.

6. Clean-up Day and Adopt-A-Creek Projects were also conducted in the Philippines.

7. Our tree planting program in Mindanao, Philippines, started using mostly endemic
tree species seedlings sourced from nurseries sustained by local indigenous people to
provide a haven for wildlife to flourish.

BENEFITS
Our benefits are designed to provide employees the flexibility to select a package of coverage
that meets their unique needs. Benefits are available to employees and their dependents,
including children, spouses and domestic partners, and are generally effective on date of hire.
Medical
Medical Plan coverage is provided through a preferred provider option (PPO) with Blue Cross.
For California residents, Kaiser HMO is available as an alternate plan. The employee and the
Company share the cost of this benefit. The employee's contributions are before-tax
contributions.
Dental
A comprehensive Dental Plan coverage is provided through Delta Dental. For California
residents, a dental HMO is available as an alternative dental coverage. The employee and the
Company share the cost of this benefit. The employee's contributions are before-tax
contributions.
Vision
Vision coverage is available through Vision Service Plan (VSP). The employee and the Company
share the cost of this benefit. The employee's contributions are before-tax contributions.
Volunteer
To further support our communities and employees, we offer employees the option to take one
paid day off per year to volunteer for the non-profit organization of their choice.
Our employees regularly donate food and time to local food banks where we operate. Pic.
Short term disability
Employees are covered for salary continuation in the event of illness or injury. It replaces 100%
of employees' base pay or two-thirds of employees' base pay, depending upon employees'
years of service, for up to 26 consecutive weeks. The Company pays the entire cost of this
benefit.
Long term disability
Employees are covered for 60% of employees' base pay after 26 weeks of total disability. The
Company pays the entire cost of this benefit.
Core life insurance
Two options are offered under Core Life Insurance coverage. The Company pays the entire cost
of the option elected.
Optional life insurance
The employee can elect additional life insurance coverage of one, two or three times
employees' base pay up to a maximum of $1,800,000. Coverage for employees' eligible
dependents is also available under a number of options ranging from $2,000 per child and/or
$10,000 for employees' spouse/domestic partner to $4,000 per child and/or $20,000 for
employees' spouse/domestic partner. The employee pays for this benefit with after-tax
contributions.
Insurance
The employee can elect Accidental Death and Dismemberment Insurance for the employee in
the amount of one to five times employees' base pay up to a maximum of $500,000. AD&D
coverage is also available for eligible dependents. Coverage options for employees'
spouse/domestic partner range from one to five times employees' base pay up to a maximum
of $500,000; dependent children can be covered at 15% of the employee coverage amount.
Employees pay for this benefit with after-tax contributions.
Ethics policy of Del Monte
It is the policy of Fresh Del Monte Produce Inc. to adhere to all laws and ethical standards
applicable in all jurisdictions in which it conducts its business, to conduct its business affairs
lawfully and ethically and to do so with honesty and integrity; there will be no waivers or
exceptions in the name of competitive demands, social traditions, or other exigencies, except
as permitted or required by law.

Our Company expects and demands the highest level of ethical conduct on the part of our
Executives, Managers, and Staff. We do not condone or practice any behavior that fails to meet
the standards set forth in our Corporate Code of Conduct and Business Ethics Policy.

The general guidelines of these standards are:

 We neither offer, nor accept,  We do not make false or misleading

anything of value in exchange for, or statements to the Company’s
in the interest of inducing or independent auditors, internal
entering into any business auditors or regulators. Under no
relationship with us. circumstances may any employee
 We do not use corporate funds, take any actions to fraudulently
assets, services, or facilities directly, influence, coerce, manipulate or
or indirectly, for any personal use, or otherwise mislead the Company’s
for any unlawful or any unethical auditors in connection with ongoing
purpose. audits.
 We monitor compliance with all  We maintain our workplace free of
laws and regulations of the harassment and discrimination
countries in which we operate. based on sex, ethnicity, physical
 We allow no false, artificial, or handicap or religion.
misstated entries to be made to the
books, records, or financial
statements.
 PRODUCT OF DEL MONTE

Today that commitment to quality is deeply embedded in our culture. At Del Monte
Philippines, we will always strive to provide the best wholesome food and beverage to help you
and your family lives a life full of vitality and enjoyment.

Canned food is the original convenience product. It enables seasonal food to be eaten all
year round and makes exotic and ethnic food readily available. We believe we are a leading
marketer for branded canned fruit and pineapple in the European Union (EU) and other
European markets and the Middle East. To maintain the high standards of the Del Monte brand,
the fruit used for canning must be of the best quality. Del Monte Fresh Produce’s canning
operations ensure the quality of the product by heating the product in the can which retains all
the nutritional value. In addition, this process seals and preserves the contents and helps to
prevent nutrient loss over time.

Canned-Vegetables
Our canned vegetable line includes a wide range of products such as whole and sliced
mushrooms, garden peas, white and baked beans, artichokes, chick peas, red kidney beans,
sweet corn and many more. These products are nutritious, low fat and low calorie. Vegetables
contain essential vitamins, minerals and fiber and Del Monte canned vegetables are no
exception, harvested at the peak of freshness and ready to serve.
Canned-Pineapple
Del Monte Fresh Produce is most known for its Del Monte Gold® Extra Sweet pineapple and is a
leading marketer of canned and processed pineapples. Pineapple expertise is at the very heart
of our business. Canned pineapple is highly convenient, the perfect companion to ham, sweet
and juicy on a pizza, or as an exotic treat with ice cream. And don’t forget it’s healthy, too.

Pineapple-Desserts
Del Monte Fresh Produce brings innovation into the canned category by launching a truly
tempting and versatile fruit-based dessert range of pineapple in six amazing flavors including
vanilla, mango, lemon, bitter almond, ginger, and coconut. Consumers can indulge in this low
fat, premium quality pineapple dessert from Kenya all year round.

Deciduous Fruit

Canned-Fruit-Cocktail
Fruit cocktail consists of a mixture of peaches, pears, pineapples, grapes and cherries. Packing
of Fruit Cocktail takes place when harvest times of pears, peaches and grapes overlap. The
production in Greece starts in September and extends throughout October.
Canned-Peaches-Apricots
Canned Peaches are also incredibly versatile and are delicious served in savory dishes or on
your breakfast cereal to add an extra healthy touch to the start of the day. Sweet and
succulent, Del Monte Canned Apricots are delicious, nutritious and above all, convenient for
today’s healthy driven lifestyles.
Canned-Pears
Del Monte Canned Pears are a superb quality product. Always perfectly ripe, they are a
convenient alternative to fresh and are perfect with cream or ice cream. Unlike other fruit
picked for canning, pears are harvested early and are ripened under controlled conditions. This
reduces bruising during pre-cannery handling and helps to ensure a smooth texture. The pears
are washed, peeled and cored and graded by size as required.
Canned-Exotic
This delicious range is guaranteed to satisfy your cravings for new and exciting taste
experiences. Conveniently prepared, Del Monte Exotics are easy and versatile. This fantastic
fruity range is ideal for people with busy lifestyles, as it eliminates the time and trouble of
buying and preparing exotic fruit. You can enjoy these delicious fruit variations on their own,
for breakfast, or as a tasty dessert.
Canned Tomatoes
Del Monte offers sun-ripened tomatoes in a variety of forms such as;
• Chopped
• Peeled
• Ketchup
• Paste
• Pizza Sauces with spices
• Tomatoes with vegetable
Conclusion of Del Monte Corporation

To be successful in sustainable business practices often requires entrepreneurship and

innovation. This chapter provides an overview of entrepreneurship and innovation as it relates
to sustainable business. The discussion is most relevant to sustainable businesses focused on
offering new products and services in response to societal concerns. The importance of
entrepreneurship and innovation also applies to companies that change how they produce
products and services. The latter companies can use innovative practices and entrepreneurship
to establish their brand name and to be market leaders in doing things that create shared value
for society and their companies and also, over time, contribute to changes in practices in their
industry.

33
https://www.delmontephil.com/corporate-governance

https://www.delmontephil.com/our-products/products

https://www.delmonte.com/our-story

https://www.delmontepacific.com/careers/who-we-look-for

https://saylordotorg.github.io/text_the-sustainable-business-case-book/s09-04-del.monte.html

https://www.delmontephil.com/sustainability

34