Community Investment Practical Approaches for Business

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Community Investment Practical Approaches for Business Srpanj 2006. Darko Marinac Podravka 19 0ctober, Zagreb

Podravka Group the largest food company Podravka Group in Croatia annual sales around EUR 500 mln strong distribution network- close to our customers on foreign markets PODRAVKA GROUP 47% of total sales realised on foreign markets building local impact through community investment is member of the Council of the Affiliation of Enviromental Protection Podravka s Food main markets: & Pharmaceutical Croatia, B&H, Serbia, Slovenia, Business Czech Republic, Slovakia & Poland worldwide is member of the Management Board of HRPSOR (Croatian Business Council for Sustainable Development Podravka is member of WBCSD (World Business Council for Sustainable Development) the second Pharmaceutical company per MS becomes IBLF s Council Member

Podravka becomes IBLF's first Croatian Council Member Podravka supports The Healthy Eating & Active Living Global Partnership (HEAL)- IBLF s programe that promotes and facilitates ways in which business can address the massive increase in lifestyle related chronic diseases

Podravka s Impact on Sustainable Development CORE BUSINESS Stimulate agriculture Stimulate SMEs Accelerate business development Retail Sector ECONOMIC DEVELOPMENT ADVANCED TECHNOLOGY Ecologically Acceptable Manufacturing Processes Waste Management Air Quality Protaction ENVIRONMENTAL DEVELOPMENT HUMAN RESOURCES Engagement in networks Knowledge & Skills Education Systems Community Spirit COMMUNITY DEVELOPMENT

Community Investment Policy Community Investment Programmes performance evaluation Identify both strengths and areas for development Adding new community long term benefits programmes Setting targets for improvement Involvement in programmes with mass benefit

Community Investment Strategy Community Investment Programmes driven by strategy Community Investment programmes as long term strateigic involvement in community partnership Specific Aims of Community Investment programmes- create proactive society Building healthy and informed society Human resources development programmes

Podravka s Community Investment Areas Sport & Health Education STRATEGIC DRIVEN INVESTMENT AREAS Environmental Protection NGOs EDUCATION HEALTH PROACTIVE APPROACH PODRAVKA GROUP Art & Culture NGOs INVESTING REACTIVE APPROACH Business and public sector financial resources War & Disaster Victims Youth skills knowledge

Education: Investment in Creative Science Prof. Zlata Bartl Foundation - encourage and promote the creative and innovative work of graduate and postgraduate students. Prof. Zlata Bartl Foundation EDUCATION TOP scholarship for TOP students Podravka is one of the partners of this action -award excellence, versatility and efforts of students. network of excellence e-student Ruđer Bošković Institute The agreement on cooperation with e-student on solving marketing, financial, strategic and other problems related to business operations. The long-term cooperation agreement with Ruđer Bošković Institute in the area of development of new production and quality control.

Health: Sport, Health & Education Eco-School A.N. Gostovinski Eco-School programme Building healthy awareness Teddy Bear Hospital Belupo s Health School Podravka with sponsorship supports the European Eco-School programme HEALTH Youth Educational programmes Podravka s website promotes healthy living Developing sport culture Podravka supports different sport projects for young Healthy Eating & Active Learning Global Partnership

Supporting NGOs Croatian National Theatre in Osijek Theatre ITD in Zagreb City Theatre Trešnja Cultural Arts Club Lado(Folk Dance Ensemble of Croatia) Cultural-Artistic Association & Institutions ART, CULTURE & NGOs Other NGOs Associations for the Blind Associations for people with learning disabilities and for physically disabled Youth Associations War Veterans Associations Caritas Croatia Cultural Associations UBIUDR (The Association of Defenders, Disabled and Widows of the Homeland War) War Victims and Demining Local manifestations Rooster legend Podravina s motives Podravka sponsors Cooking against Mines project which raises funds for demining Croatia

Community Investment programmes cycle 450 thousand 380 thousand Education, Science projects PODRAVKA Art, Culture& Entertainment Inputs in Community Strategic Community Investment programmes Requests, Appeals, Sponsorships, Donations Socially handicaped, demining, in-kind & other 300 thousand Sport & Health 3.3 million Higher education Proactivity COMMUNITY Outputs to the Community Better access to business Health awareness

Levels of Community Investments IMPROVING BUSINESS PRACTICE AND THE ENVIRONMENT IN WHICH BUSINESS OPERATES sharing best practice new partnership mobilising others CORPORATE SOFT INVESTMENTS employee engagement in the community effective community investment programme CORPORATE HARD INVESTMENTS

Podravka Community Investment Business Benefits better understanding of community needs COMMUNITY INVESTMENT brand loyalty/ reputation/ higher profit better market perception developing new product/ brands

Aims of Podravka s future steps in Community Investment TODAY TOMORROW SYNERGY proactive business partner social responsible partner opinion leader significan presence on SEE market reinforce position in society employees social engagement partners engagement role model in CCI practice (SEE) NEW SUSTAINABLE BUSINESS MODELS

Thank You! Company with a heart