SAN MIGUEL PURE FOODS COMPANY, INC

Business Ethics Practices

Documentation

Group 2: Cornista, Ryan Patrick H.;Francisco, Zairah

Khaite;Han, Dong;Lardino Pamela D.;Marzo, Kathleen Jean
M.;Pagulayan, Jane Antoinette B.;Sanchez, Danica Hanna
N.
4/12/2017
 San Miguel Pure Foods Company, Inc.
I. Executive Summary
A. Background towards Business Ethics Practices
The Company adheres to the SMC Code of Ethics and Conduct
that describes fundamental standards of conduct and values consistent
with the principles of good governance and business practices, which
guide and define the actions and decisions of the directors, officers and
employees of the entire San Miguel Group of companies, including
SMPFC.

The Board of Directors of the Company, at its meeting on August 8,

2013, approved the adoption of SMPFCs own Code of Ethics that
embodies the guidelines and principles on acceptable behavior and
performance of the employees and business partners of the San Miguel
Food Group, including their directors. It is aligned with the SMC Code of
Ethics and Conduct, and supports SMCs program on corporate
governance.

The SMPFC Code of Ethics is the centerpiece program of the

Company that integrates, as well as serves as the foundation for existing
and future policies to be observed by the San Miguel Food Group
employees and business partners. It intends to enlist employees and
business partners to SMPFCs core purpose, value and envisioned future,
thus engaging them to become more conscientious employees and
committed stakeholders in the San Miguel Food Group.

Procedures are also established for the communication and

investigation of concerns regarding the Companys accounting, internal
accounting controls, auditing, and financial reporting matters

B. Mission and Vision of San Miguel Pure Foods Company, Inc.

It is our fundamental belief that everything is loaned to us by our
Creator, to grow and multiply them for the good of everyone. As such, we
value and take care of what has been entrusted to us - malasakit. It is the
core value that permeates all other values that we espouse: Customer
focus, Social Responsibility, Passion for Success, Integrity, Respect for
our People, Innovation, and Teamwork.
 It is in this spirit that we will look after the welfare and interest of our
stakeholders.

We will delight our Customers with products and services of

uncompromising quality, great taste and value, and are easily within their
reach. We will create value and provide fair returns on our Shareholders
investments. We will work hand-in-hand with our Suppliers and other
Business Partners, helping them grow with us and assuring them of
reasonable returns. We will develop and motivate our Employees to
become best-in-class through cognitive and affective programs,
competitive compensation and benefits, and diverse career growth
opportunities. We will help improve the quality of life in Communities
where we operate. Collectively, we will give and do what is right and
become proponents of good stewardship.

II. Goals / Objectives

A. Holistic: Organizational Objectives

a. San Miguel Pure Foods core purpose is to nourish and

nurture families worldwide.

b. Delight the Customers with products and services of

uncompromising quality, great taste and value, easily within their
reach.

c. To create value and provide fair returns on their Shareholders

investments

d. To work hand-in-hand with their Suppliers and other Business

Partners, helping them grow with us, and assure them of reasonable
returns.

e. To help improve the quality of life in communities where they

operate.

B. Objective towards Business Ethics

San Miguel Pure Foods Company, Inc. ("the Company or San
Miguel Pure Foods) and all its subsidiaries (collectively referred to herein
as the Food Group) fully recognize that adherence to the highest
standards of business conduct is vital to its growth and success as a leader
in the industry. San Miguel Pure Foods and its Business Partners conduct
business with integrity and always in an ethical manner.
The Code of Ethics establishes the fundamental standards of
conduct and values consistent with the principles of good governance and
 business ethics for observance by all Food Group employees and business
partners alike. It does not intend to replace or supersede any applicable
legal or regulatory requirement and reads into it existing Food Group
policies, procedures and the corresponding sanctions for non-compliance
therewith, as well as those that may subsequently be adopted by the Food
Group in response to prevailing business conditions. Policies and/or
procedures may further be promulgated or revised as the need arises, to
give effect to the Code. Thus, the Code shall henceforth be the foundation
for all existing and future policies and procedures of the Food Group that
these shall find basis in and supplement the provisions of this Code. The
Code shall be reviewed from time to time as may be deemed necessary by
San Miguel Pure Foods.
III. Ethical Business Practices
A. Principles / Values / Credos / Advocacies

a. One of their principles or advocacy is Customer Focus: "Our

customer is our reason for existence. They strive to be the
customer's preferred choice. They develop a lasting relationship with
their customers by delighting them with products and services that
anticipate and respond to their needs.

b. Innovativeness and Passion Learning. They encourage

creativity and ingenuity in their processes and systems, products and
services continuously looking for better ways to do things, always
striving to be the first to deliver something better.

c. Meritocracy and Passion for Success. They constantly strive

for excellence. They aspire to be the best they can be and create
value in everything they do.

d. Accountability for Actions. They take full responsibility for all

their actions and decisions, and discharge our duties
conscientiously, honestly and efficiently.

e. Integrity and Mental Honesty. They say what they mean and
mean what they say. They compete fairly and honestly. They conduct
business in a manner which is ethical, fair and right and in all
reasonable circumstances, above reproach.

f. Teamwork and Open Communication. Everyone has his own

strength and intelligence. No one has the monopoly of greatness. We
can achieve more when do things together."

g. Respect for People, Authority and Property. They recognize

each other as individuals and commit nurturing each others
individual capabilities. They safeguard and maintain the
 confidentiality of knowledge and proprietary information on the Food
Groups product, formulations, trade secrets, business strategies,
technologies, processes and systems. .

B. Corporate Culture
The Code of Ethics of San Miguel helps maintain the integrity of their
name. It is their desire to keep the name of San Miguel Pure Foods and its
employees and partners intact with integrity and kept in good faith. Keeping
the Code of Ethics close to their hearts, discussing it freely with colleagues,
being accountable to each other and most importantly, learning to live it
every day is what we are expected to be as part of the San Miguel Pure
Foods family.
San Miguel Pure Foods Company, Inc. looks forward to their
employees support and to their commitment to the Code of Ethics it is their
way of life.

C. Corporate Social Responsibilities

San Miguel Pure Foods Company, Inc. strive towards good

corporate citizenship and pursue pro-active volunteerism. We contribute
positively to the promotion of social responsibility in the community in
which we live and work by supporting activities and programs geared
towards community welfare and environmental protection.

Handog Lusog is San Miguel Pure Foods' flagship Corporate Social

Responsibility activity and is a six-month supplemental feeding program.
It's our way of giving back to the communities that have helped us grow.
With our core value identified as malasakit, we make it our mission to
share our good fortune with those in need. Being a food company, our
core purpose has been appropriately defined as nourishing and nurturing
families worldwide and we strive to live up to this throughHandog Lusog.

D. Employee Relations
San Miguel Pure Foods Company Inc. (the Company) is
committed to its employees safety, health and welfare, and to nurture
their individual capabilities. Programs are in place to ensure the safety of
its workers. These programs include the elimination of occupational
hazards in the workplace, provision of protective wear and/or equipment,
proper training in the handling and use of machinery and materials, safety
reminders and other measures that may be necessary to maintain their
safety. Employees are protected from undue exposure to chemicals,
biological and physical hazards, and in the event exposure to these are
 inevitable, safety information is provided to educate, train and safeguard
employees.

E. Business Sustainability/ Stability

A San Miguel Pure Foods employee must act, think and respond to
work, circumstances and to society. Providing guiding principles help
establish and sustain the integrity, honor and image that San Miguel Pure
Foods as a Company, upholds.

The Code of Ethics helps maintain the integrity of their name. It is

said that a good name is worth more than riches. It is their desire to keep
the name of San Miguel Pure Foods and its employees and partners intact
with integrity and kept in good faith. Maintaining their good name
guarantees sustainability of their business because it wins the trust of
consumers the families worldwide whom they have promised to nourish
and nurture through their products and services.

IV. Impact and Importance

A. Impact of Ethical Practices
One of the significant impacts of San Miguel Foods Inc.'s ethical
business practice of food quality and food safety to the organization is its
insurance that the company's reputation would not be tainted by any issue
regarding unsafe or of low quality products. Through this practice, the
company can build consumer trust which benefits the company in a lot of
ways.
B. Importance of Ethical Business Practices
San Miguel Pure foods Inc., always conduct business with integrity
and in ethical manner for it is an important factor in maintaining its good
ethical business practices. The integrity was shown by not participating in
illegal inducements in business relationships. Moreover, the business is
consistent with fair and vigorous competition while complying with the law
that governs them by accurate and truthful advertising.
Every company is required to comply with the Food Group quality
and safety standards, which is the standard that regulates the market
which San Miguel Foods Inc. distributes and operates into. This practice of
them is very important because without it, they would not be allowed to
operate in the market.
V. Future Plans of San Miguel Corporation
In enhancing the strength of San Miguel Pure Foods Companys
brands, they know that they need to work on their core offer of not just
quality but the availability of their products. The companys products today
are well entrenched and they are working further to build their multi-
channel capabilities to create operations that support their growth
ambitions. As San Miguel Pure Foods Company, Inc. move forward with
their strategies, they will continue to count on their customers and
stockholders continued support to pursue the goals they have set for the
Company. The challenge for them is to accelerate their growth, to be bold,
and to embrace change, and at the same time maintain the high standards
of quality and excellence that they have become known for, not just in the
products they make, but also in their shared corporate values and good
governance practices.

They are truly excited for the future with the plans and programs
they have put in place and the value these will create for San Miguel Pure
Foods Company, Inc.