Introduction

At PZ Cussons we believe in 'doing good business'. We do not believe that there need be any conflict or inconsistency between being a successful profitable organisation and, at the same time, running our operations in such a way that they have a positive impact on society. On the contrary, we believe that socially responsible conduct is value enhancing for our shareholders and all of our other stakeholders.

Our good reputation and our continued success as a business is largely dependent on how we discharge our responsibilities, as a Group and as individuals, to all of our stakeholders. Those stakeholders include our shareholders, customers, suppliers, employees, the wider community and the environment. We are committed to conducting our business with integrity and with care insofar as the social and environmental impact of our activities is concerned. We aim to make a positive impact on society through the products which we produce and sell, through the way in which our products are manufactured and packaged and through the contributions we make to the communities in which we operate.

This area of the website sets out the Group's values and principles in relation to key aspects of corporate social responsibility (CSR) and how these have been put into practice during the year. CSR describes how a business:

• recognises the ways in which its actions affect those around it; and

• regulates those actions so that, consistent with sustainable business and development, they have a positive impact.

We consider the principles of CSR to be integral to how the Group conducts its operations and key to the results which the Group has delivered in the past and to its continued success and development in the future. In particular, PZ Cussons recognises the potential benefits which may be derived where CSR activities are aligned to the concerns and demands of our stakeholders and we listen to and take account of those concerns in shaping our business strategies and practices. We also recognise that companies are subject to increasing regulation, particularly in respect of environmental issues, and we believe that the pursuit of a proactive and positive CSR policy reduces the risk of adverse regulatory action.

One of the Group's core strategic principles is to develop leading brands which are suited to local needs and tastes. The introduction of everyday, good quality, affordable products enhances the quality of the lives of consumers, particularly in developing countries, and we believe that our mix of products is consistent with the principles of good CSR. In particular:

• the provision of soaps and cleaning products in countries such as Nigeria, Kenya, Ghana and Indonesia has significant benefits in terms of the hygiene and health of the local population; and

• we provide a range of nutritional milk products in Africa, through our Nutricima joint venture with Glanbia plc. Nutricima continues to expand its range of nutritional products, helping to provide the essential daily nutritional requirement of the local population which is key to the fight against mortality rates (particularly amongst children) within the country.