Business Ethics & Corporate Social Responsibility

1. Business Ethics & Corporate Social Responsibility Zuzana KissováCorporate AffairsPhilip Morris Slovakia s.r.o.

2. Quiz • Name at least two arguments why Mr. Friedman thought it was unethical for a corporation to give money to a charity • Which question would you like to have answered about business ethics and/or CSR?

3. Philip Morris International • Philip Morris International (PMI) is the leading international tobacco company, with products sold in approximately 180 countries. • 7 of the top 15 global brands, including Marlboro • In 2010, we held an estimated 16.0 percent share of the total international cigarette market outside of the U.S., or 27.6 percent excluding the People’s Republic of China and the U.S. • 78 000 employees world-wide

4. PMI Goals • To meet the expectations of adult smokers by offering innovative tobacco products of the highest quality available in their preferred price category • To generate superior returns to our stockholders through revenue, volume, income and cash flow growth and a balanced program of dividends and share repurchases • To reduce the harm caused by tobacco products by supporting comprehensive regulation and developing products with the potential to reduce the risk of tobacco related diseases • To be a responsible corporate citizen and to conduct our business with the highest degree of integrity

5. Responsibility • Compliance and integrity • Product • Process • People • Communication • Regulation • Community

6. Compliance and integrity “Nothing is more important than our commitment to compliance and integrity — no financial objective, no marketing target, and no effort to outdo the competition. No desire to please the boss outweighs that core commitment. Our commitment to compliance and integrity must always come first.” Louis C. Camilleri Chairman and CEO Philip Morris International PMI Code of conduct

7. Compliance and integrity Integrity: Doing What Is Right Ask Before Acting • Is it legal? • Does it follow company policy? • Is it the right thing to do? • How would it look to those outside the company? Remember These Rules • Know the legal and company standards that apply to your job. • Follow these standards — always. • Ask if you are ever unsure what’s the right thing to do. • Keep asking until you get the answer.

8. Compliance and integrity

9. How we operate • We communicate about the serious health effects of smoking. • We advocate for comprehensive tobacco regulation focused on harm reduction. • We support the enactment and strict enforcement of laws that set a minimum age to purchase tobacco products. • We work closely with retailers to implement youth smoking prevention programs (YSP). • We work with regulators, law enforcement agencies, and retailers to combat the illicit trade in counterfeit and contraband cigarettes. • We have adopted policies and implemented programs to consistently reduce our environmental impact • We work with growers and suppliers to promote sustainable tobacco farming.  • We work with suppliers, stakeholders, and governments to address the problems of child labor and other abuses in labor markets related to our supply chain. • We contribute to improving our local communities through charitable giving, volunteer activities, and support of a wide network of non-profit organizations

10. PMI Charitable Giving Program • Disaster relief • Domestic violence • Education • Hunger and extreme poverty • Rural living conditions

11. Charitable Giving in Slovakia

12. Charitable Giving in Slovakia

13. Charitable Giving in Slovakia

14. Youth Smoking Prevention

15. Youth Smoking Prevention Let’s keep our eyes on the ban of selling cigarettes to underage. Objectives • Retail: Motivate towards active approach to the topic Acquire new partners • Sellers: Educate 20 000 sellers in stores, HoReCas and independent tobacco product sellers – the law, their rights, risks, assertivity training • Public: Raise awareness, address issue of indifference and responsibility when witnessing selling to underage Educate about the rights and obligations of sellers

16. Youth Smoking Prevention Tools • Communication • Billboards, cityboards, digital citylights • Internet – www.navekuzalezi.sk, banners on webportals • Branded grocery store shopping load divider • Branded shopping cart chip/counter • Branded shopping bags • Leaflet informing about the competition • Education • Guidebook for sellers • Communication Q&A circle • Webpage www.navekuzalezi.sk • eLearning: Academia Responsible Seller Academia Age Matters (for the public)

17. Youth Smoking Prevention • E-Learning

18. Questions?

19. Thank you! Zuzana Kissová Regulatory & Fiscal Affairs Executive Corporate Affairs Philip Morris Slovakia zuzana.kissova@pmi.com