Cerebos' CSR strategy

CSR management lies at the heart of Cerebos' business. It goes without saying that excellent business methods and results are a requirement for continued corporate activities, but we believe that good CSR results further strengthen company and product branding. Cerebos' CSR policy aims at maximizing this effect by implementing a triple bottom line guideline: we look not only at the company's economic value (profitability), but also our social value (charity and participation in our local community) and our environmental value (our protection of the environment).

Corporate governance

We at Cerebos have set high standards for corporate governance, as should any publicly traded company. We aim at transparency for our shareholders and investors, making information sharing our default position. As a result, in April 2009 we were ranked 26 in The Business Times' Governance and Transparency Index. As required by our corporate governance bylaws, three of the nine members of our Board of Directors are external members. We have also established a Remuneration Committee, a Nominations Committee, and an Auditing Committee that board members sit on, ensuring that the needs of our shareholders are met. External board members lead all committees.

ISO 14001 certification

Cerebos has 11 plants in 7 countries, and most have attained ISO 14001 certification. We are currently well into our process of obtaining ISO 14001 and OHSAS 18001 (Occupational Health and Safety Management Systems) certifications for all of our operations in Asia. Our goal is to continue with good environmental management and making improvements in the future.

Activities at our plants

Our "Bird's Nest" Plant in Pin Thong, Thailand

Our Australian plants are working with the Department of Utilities, Energy and Sustainability to find ways to reduce resource usage and increase recycling. Our current activities include staff enlightenment programs, improving liquid waste disposal, reducing sewer water usage, and testing the introduction of bottle conveyor lubrication methods that do not require water. We are also working toward reducing packaging waste disposal that can impact the environment. In 2000, we announced our support of the policies set forth by the Australian National Packaging Covenant.

Beginning operations at our environmentally friendly plants

Our 2 new plants in Thailand and Malaysia, which opened in 2010, were designed to be environmentally friendly and energy efficient. Some of their features include solar cells, energy efficient lighting, natural lighting, low-energy utility systems for boiler and cooler management, and reuse of production line water for sanitary systems. These plants meet international standards, including GMP (process design), ISO 9001 (quality management systems), and ISO 14001 (environmental management systems). Our Thai plant has also received OHSAS 18001 (Occupational Health and Safety Management Systems) certification. We at Cerebos pledge to continue working toward reducing our environmental impact, in this way investing in a sustainable future for all of our stakeholders and in the growth of our society.

Waste reduction program

We have introduced waste reduction and recycling programs in our Singapore office. This program involves employee re-education about environmental activities, and an expansion of our integrative approach towards environmental management. As a result, our recycling rate has reached 60%, higher than the national average of 57%. We are currently planning on extending this program to all of our markets. We are also gradually introducing other environmental policies, such as reducing our power usage.

Customer relationship management

Since 2002, we have taken the maintenance of close relationships with our customers as one of our basic principles. We have introduced a customer relationship management (CRM) initiative in all areas, allowing us to better measure customer satisfaction and needs. Our customer database now holds information on 1.75 million customers, and continues to grow. This database allows us to communicate directly with our customers, which we believe helps to strengthen familiarity with our brand.

Contributing to customer lifestyles

Approximately 130,000 people attended the BRAND'S® Health Museum in Taiwan in celebration of our 175th anniversary

In 2010, our health supplements brand BRAND'S had its 175th anniversary. The brand started out with our "BRAND'S Essence of Chicken" product and today extends to a variety of products that are scientifically proven to support our customer's daily performance. In order to supply even higher value to our customers, BRAND's adapts to our customers' changing lifestyle, something that we feel is necessary for differentiating our products from those of our competitors. Alongside the tradition that has built up customer trust in our brand over the years, another thing that differentiates us from our competitors is our continuous investment in scientific research. Our customer relations management and branding activities allow us to remain always in tune with the rapid changes occurring in society. This is the foundation from which BRAND'S will maintain its accelerating growth, producing value both for our customers and our shareholders.

Events in Hong Kong and Singapore

A Golden Bird's Nest banquets

As one event commemorating BRAND'S 175th anniversary, we held Golden Bird's Nest Banquets in Hong Kong and Singapore. These events centered around Golden Bird's Nest, our premium Bird's Nest product, which was exciting for its fans. All chefs prepared fine cuisine using BRAND'S Golden Bird's Nest and our guests were treated to hospitality of the highest level. Those taking part were impressed by the complex manufacturing process that goes into assuring the quality of our Bird's Nest products.
We believe that such differentiation from our competitors and our increased use of CRM will allow us to maintain and strengthen our relationship with our customers, establishing brand loyalty, and realizing sustainable corporate growth.

Contributing to the local community

Contributing to society is an important foundation for Cerebos to succeed as a company that is socially trusted. We are therefore always looking for innovative and meaningful ways to contribute to the lives of our employees, their families, and persons less fortunate than ourselves. Our most significant contributions are in the areas of health, education, sports, and the arts.

Events in Hong Kong and Singapore

The successfully completed "Hope in a Bottle" project

BRAND'S "Hope in a Bottle" project was held as one of the commemorative events for BRAND'S 175th anniversary. The project entailed cooperative recycling of glass bottles used in BRAND'S products, with the resulting materials being used as building materials for houses for disadvantaged families in Pathum Thani, Thailand and Guangdong, China. This was a joint effort with Habitat for Humanity, and bottles were collected in Singapore, Malaysia, Hong Kong, Taiwan, and Thailand. We partnered with the Ngee Ann Polytechnic Centre of Innovation to develop the technology for recycling the bottles into building materials. Cerebos employees in each country volunteered for the project, helping to build the homes. We were also aided by student volunteers from institutes of higher learning from 5 countries. Not only did this become an opportunity for our employees to contribute to their local communities, we were also able to contribute to reducing environmental impact, as the use of glass bottles in building houses produces lower CO2 emissions than does building with concrete.

Exemplary CSR

Cerebos' CSR activities have an excellent reputation in Singapore. Cerebos was the first case study featured in the Singapore Compact for CSR's inaugural publication launched by Minister for Manpower, Mr. Gan Kim Yong.

Developing volunteer activities worldwide

Cerebos sponsored the "BRAND'S Asia Pacific Sudoku Challenge" in Singapore. This event resulted in donations amounting to more than SGD 10,000 to the Children's Cancer Foundation. We are also involved in other long-term volunteer activities, such as the Volunteer Doctor Foundation in Thailand, the BRAND'S Summer Camp (supporting 40,000 students for their college entrance exams in its 21st year), and the BRAND'S International Crossword Game King's Cup (supporting English skill development, now in its 25th year).

Other activities

"A Gift of Love" community project in Malaysia

• Taiwan: Providing "BRAND'S Essence of Chicken" products to elderly persons receiving care in private hospitals.

• Malaysia: We are co-sponsors of the "A Gift of Love" community project along with the Beautiful Gates Foundation. This project aids in basic skill development for young persons with disabilities, so that they may find work and lead independent lives.

Supporting Habitat for Humanity

Cerebos employees participating in a home building project in Ethiopia

Cerebos' Food & Coffee Division continues to support Habitat for Humanity in Australia and New Zealand. This organization operates under the theme "Building homes, building communities, building hope." We not only provide financial support in New Zealand and Australia, but have also sent 2 employees annually to Ethiopia to assist in a home-building project there. Ethiopia is also a fair trade coffee trading partner with Cerebos.

The STSPMF corporate charity

Employee activities have resulted in SGD 215,000 in charitable donations to the STSPMF

Cerebos has worked with the Straits Times School Pocket Money Fund (STSPMF) since it was established in 2000. The STSPMF seeks to increase public awareness that many low-income families must send their children to school without the necessary school supplies. The STSPMF assists 9,000 children annually, supplying them with school meals and providing them with bus fare and money to purchase supplies. The number of participants has increased from 3,000 in the year the STSPMF was founded to over 12,000 in 2010. The amount of money raised has also increased, from SGD 1.3 million to SGD 5.7 million.

Employees benefit the company

At Cerebos, our employees are our greatest asset. We believe that it is our employees who are the driving force behind do excellent business and delivering excellent results. We also believe that good physical and emotional health increases business efficiency and improves employee attitudes.

Supporting employee growth

We support employee growth because we feel this is the best way not only to create value for our employees, our customers, and our stockholders, but also to attain our vision of becoming the leading health supplements and food company in the Asia Pacific region.

Supporting employee volunteerism

Cerebos employees incorporate contributions to society and elements of our CSR into all aspects of their workplace and their lifestyles. In 2002, we established a Wellness Committee in which representatives from each department participate, planning activities that meet the varied interests of our employees. We work hard to ensure that each year committee members plan innovative and interesting activities for our employees.

Contributing to society through healthy activities

The 2010 Charity Marathon

In 2003, we introduced our "Charity Point" system. When employees participate in planned health maintenance activities, they receive 1 charity point. Charity points can be redeemed for SGD 5 each, with that money being donated in the employee's name to the STSPMF. Participation in activities therefore leads not only to better employee health, but also to school meals for less fortunate children. Both individuals and groups can participate in the program, and numerous programs are available to encourage participation from employees at all company levels and to allow for events that are of interest to our employees.