Repository Date of publication The Nestlé …

1 Principles Principles Mandatory Mandatory Author / issuing department June 2010 June 2010 Chairman and Chief Executive Officer Target audience All employees Related Group Principles / Policies, Standards or Guidelines Code of Business Conduct, The Nestl Management and Leadership Principles Repository All Nestl Principles and Policies, Standards and Guidelines can be found in the Centre online Repository at Date of publication June 2010. Copyright and confidentiality The Nestl corporate The content of this document may not be reproduced without proper authorisation. All rights belong to Nestec Ltd., 1800 Vevey, Switzerland. Business Principles 2010, Nestec Ltd. In case of doubt or differences of interpretation, the English version shall prevail.

2 Design Nestec Ltd., corporate Identity & Design, Vevey, Switzerland Production Altavia Swiss Paper This report is printed on BVS, a paper produced from well-managed forests and other controlled sources certified by the Forest Stewardship Council (FSC). Principles Principles Mandatory Mandatory Author / issuing department June 2010 June 2010 Chairman and Chief Executive Officer Target audience All employees Related Group Principles / Policies, Standards or Guidelines Code of Business Conduct, The Nestl Management and Leadership Principles Repository All Nestl Principles and Policies, Standards and Guidelines can be found in the Centre online Repository at Date of publication June 2010.

3 Copyright and confidentiality The Nestl corporate The content of this document may not be reproduced without proper authorisation. All rights belong to Nestec Ltd., 1800 Vevey, Switzerland. Business Principles 2010, Nestec Ltd. In case of doubt or differences of interpretation, the English version shall prevail. Design Nestec Ltd., corporate Identity & Design, Vevey, Switzerland Production Altavia Swiss Paper This report is printed on BVS, a paper produced from well-managed forests and other controlled sources certified by the Forest Stewardship Council (FSC). Table of contents 3 commitment of the Chairman and the Chief Executive Officer 5 The foundation for sustainability and Creating Shared Value 6 The ten principles of business operations Consumers 1 Nutrition.

4 Health and Wellness 2 Quality assurance and product safety 3 Consumer communication Human rights and labour practices 4 Human rights in our business activities Our people 5 Leadership and personal responsibility 6 Safety and health at work Suppliers and customers 7 Supplier and customer relations 8 Agriculture and rural development The environment 9 Environmental sustainability 10 Water 8 Detailed descriptions and links to corporate policies 8 Consumers 9 Human rights and labour practices 10 Our people 11 Suppliers and customers 12 The environment 13 Auditing The Nestl corporate Business Principles 1. Nestl principles and policies map Auditing The ten principles of business operations The Nestl corporate Business Principles are mandatory statements for all Nestl managers and employees and are integrated in business planning, auditing and performance reviews.

5 The corporate Business Principles are Consumers Human rights Our people Suppliers and customers The environment associated with specific policies and reference and labour codes, where compliance procedures are outlined. practices See the Nestl principles and policies map for the appropriate linkages and reference policies 1. 2 3 4 5 6 7 8 9 10. (inside front cover). Nestl 's compliance regarding its corporate Nutrition, Quality assurance Consumer Human rights Leadership Safety and Supplier Agriculture Environmental Water Business Principles is regularly reviewed by its Health and and product communication in our business and personal health at work and customer and rural sustainability internal auditors on the basis of clear auditing Wellness safety activities responsibility relations development instructions, which are published for all employees to consult on the Nestl intranet.

6 Compliance regarding human resources, safety, health, Nestl Principles Nestl Quality Policy Nestl Consumer UN Global Compact* Nestl Management Nestl Policy Nestl Supplier Code Nestl Policy Nestl Policy Nestl Policy on Nutrition, Health Communication and Leadership on Safety and on Environmental on Environmental on Environmental environment and business integrity is assessed and Wellness Principles Principles Health at Work Sustainability Sustainability Sustainability through our CARE Programme which relies on Nestl Nutrition ILO Conventions 87, an independent external audit network. Our Quality Policy 138, 182*. Nestl Policy Nestl Code Nestl Commitments reports on Creating Shared Value are audited by on Nutrition and of Business Conduct on Water independent external auditors for accuracy and Health Claims UN Convention validation.

7 Our external auditors KPMG, when of the Rights of the Child: Article 32* Nestl Human obtaining an understanding of the internal control Nestl Nutritional Resources Policy system of Nestl , consider how the corporate Profiling System Business Principles fit into the overall corporate OECD Guidelines for Multinational governance framework of the Group. Nestl Nutritional Enterprises 2000* Findings and recommendations are Compass reported through the Board Audit Committee ILO Declaration to the Nestl Board of Directors. WHO International on Multinational Code of Marketing of Enterprises 2006*. Breast-milk Substitutes*. Nestl Privacy Policy * External references The Nestl corporate Business Principles 13.

8 Nestl principles and policies map Auditing The ten principles of business operations The Nestl corporate Business Principles are mandatory statements for all Nestl managers and employees and are integrated in business planning, auditing and performance reviews. The corporate Business Principles are Consumers Human rights Our people Suppliers and customers The environment associated with specific policies and reference and labour codes, where compliance procedures are outlined. practices See the Nestl principles and policies map for the appropriate linkages and reference policies 1. 2 3 4 5 6 7 8 9 10. (inside front cover). Nestl 's compliance regarding its corporate Nutrition, Quality assurance Consumer Human rights Leadership Safety and Supplier Agriculture Environmental Water Business Principles is regularly reviewed by its Health and and product communication in our business and personal health at work and customer and rural sustainability internal auditors on the basis of clear auditing Wellness safety activities responsibility relations development instructions, which are published for all employees to consult on the Nestl intranet.

9 Compliance regarding human resources, safety, health, Nestl Principles Nestl Quality Policy Nestl Consumer UN Global Compact* Nestl Management Nestl Policy Nestl Supplier Code Nestl Policy Nestl Policy Nestl Policy on Nutrition, Health Communication and Leadership on Safety and on Environmental on Environmental on Environmental environment and business integrity is assessed and Wellness Principles Principles Health at Work Sustainability Sustainability Sustainability through our CARE Programme which relies on Nestl Nutrition ILO Conventions 87, an independent external audit network. Our Quality Policy 138, 182*. Nestl Policy Nestl Code Nestl Commitments reports on Creating Shared Value are audited by on Nutrition and of Business Conduct on Water independent external auditors for accuracy and Health Claims UN Convention validation.

10 Our external auditors KPMG, when of the Rights of the Child: Article 32* Nestl Human obtaining an understanding of the internal control Nestl Nutritional Resources Policy system of Nestl , consider how the corporate Profiling System Business Principles fit into the overall corporate OECD Guidelines for Multinational governance framework of the Group. Nestl Nutritional Enterprises 2000* Findings and recommendations are Compass reported through the Board Audit Committee ILO Declaration to the Nestl Board of Directors. WHO International on Multinational Code of Marketing of Enterprises 2006*. Breast-milk Substitutes*. Nestl Privacy Policy * External references The Nestl corporate Business Principles 13.