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Social, societal and environmental responsibility

5.1 Danone social, societal and environmental approach

DANONE

REGISTRATION DOCUMENT 2015

172

IUF agreements

Danone has signed framework agreements with the IUF (International

Union of Food workers), beginning in 1988. As of December 31, 2015,

nine global agreements and one European agreement between

Danone and the IUF were in effect.

These agreements define rules and best practices, particularly with

regard to diversity, social dialogue, steps to be taken for business

changes impacting employment or working conditions, combating

all forms of discrimination and encouraging diversity, trade union

rights, and procedures for consulting employee representatives in

the case of business changes with consequences for employment.

The latest global agreement between Danone and the IUF was signed

on September 29, 2011 concerning health, safety, working conditions

and stress, and is a follow-up to the framework agreement signed

in 2010 with trade union organizations in France.

This agreement defines the following principles:

•

consideration for the human consequences of change, in advance

of major changes to the organization;

•

preservation of the balance between personal and professional life;

•

identification of ways to simplify work to improve efficiency as

well as employee well-being;

•

employee participation in safety-related preventive actions to

ensure their safety as well as their right to remove themselves

from a hazardous situation; and

•

implementation of medical monitoring at all subsidiaries and sites.

These framework agreements between Danone and the IUF are

implemented at each subsidiary and their application is evaluated

jointly each year by a representative from Danone and a represen-

tative from the IUF.

RESPECT

The RESPECT policy aims to protect the Sustainable Development

Principles across Danone's entire supply chain and in particular

with regard to Danone's major suppliers.

This policy was launched in 2005 and has been implemented since

2006 in all Divisions to ensure compliance with the seven funda-

mental labor principles formalized by Danone since 2001 based

on standards defined by the International Labor Organization: (i)

child labor, (ii) forced labor, (iii) non-discrimination, (iv) freedom

of association and the right to collective bargaining, (v) workplace

health and safety, (vi) working hours, and (vii) compensation. These

principles are described in the section hereafter.

The RESPECT methodology is based on a system of controls that

includes: (i) suppliers' signature of the Sustainable Development

Principles, (ii) a map of supplier risks drawn up by purchasing

managers, (iii) external labor audits of the most “at risk” suppliers,

(iv) corrective action plans in case of non-compliance identified

during the audit, and (v) monitoring of this action plan by Danone's

purchasing managers.

RESPECT is based on a specific tool called Sedex (Supplier Ethical

Data Exchange), a dedicated online information-sharing and pooling

platform used by many companies in the food and beverage sector

which allows their suppliers to (i) enter information regarding their

production sites, sustainable development and societal responsibility

policies, and (ii) share this informationwith several customers at once.

In 2009, the scope of the RESPECT policy was expanded to include

environmental and ethical sections.

Based on these three pillars –social, environmental and ethical–

RESPECT constitutes a global policy for managing sustainable

development standards with suppliers.

Food Nutrition Health Charter

Danone'sFoodNutritionHealthCharter describes the concretepolicies

that result from Danone's mission of “bringing health through food

to as many people as possible.” This charter, implemented in 2005

and updated in 2009, formalizes Danone's five commitments. These

commitments address the concerns of authorities on food-related

public health issues.

The five commitments include:

•

proposing nutritional solutions that are continuously tailored to

nutritional needs and recommendations, local tastes and incomes;

•

developing products with relevant, scientifically proven health

benefits;

•

informing consumers clearly and advertising responsibly;

•

promoting healthy diet and lifestyle;

•

addressing major societal challenges related to health and

nutrition.