Social responsibility

We believe that large corporations play an important role and influence what is happening in the world today. Therefore, business social responsibility is growing. For us, corporate social responsibility is not just about commercial success and supporting charities. Through our work we strive to be of use to society in general and to each individual as well as to further stable social, economic and ecological development in the regions where we operate. Corporate social responsibility is an intrinsic part of the company's management and decision making system. We understand clearly that this corresponds with our long term economic interests.

For JFC, corporate social responsibility includes paying taxes in full, increasing staff efficiency, rising salaries, improving the professional skills of our staff and their quality of life in general. It also means controlling product quality, assisting social programs, caring for the environment and supporting charity programs.

Product Quality

It is not that easy to be responsible to society as a whole and also to each individual consumer. Everything that our staff do they do with a clear understanding of the responsibility that lies upon us as a leader in our sector. The quality of our products is without question our main priority. We make sure that our international suppliers have GlobalGAP Certification, which is the minimum standard assurance for agriculture and the environment in the process of cultivation. Our plantations regularly undergo GlobalGAP international agricultural product certification. Also, the packaging, transportation and storage of our produce are carried out according to the demands of the CODEX commission (GMP hygiene standards for working with food products). In Russia, as well as carrying out the regulation phytosanitary controls and quarantine of imported produce, we periodically conduct our own audit of the quality of produce stored and imported in the produce warehouses. This ensures that our fruits do not contain pesticides, heavy metals or harmful substances, and that the shops sell only fresh and high quality fruit and vegetables.

Environmental Safety

As we are a powerful producer in Russia and abroad we pay particular attention to the environmental situation in those regions where we are operating as well as to production security.

JFC terminals are an example of high technological horticultural produce storage and high environmental production. Modern automated gas and refrigeration equipment guarantees not only that the produce will be stored at all pre sale stages but will also save resources and guarantee minimal emissions of heat into the atmosphere.

Our plantations are certified according to GlobalGAP standards. This guarantees that the cultivation process has a minimal effect on the environment, reduces the use of chemical substances and follows the appropriate standards for work safety and staff well being. We don't stand still and regularly conduct programs to increase environmental awareness and also training on work safety.

Promoting the Nation's Health

We are proud that our work has a direct effect on the health of our fellow citizens. Fresh fruit and vegetables contribute to health and longevity, therefore we aim to bring them to everyone. In addition to direct import and distribution we are implementing programs to stimulate demand for exotic and very healthy fruit such as mango and papaya.

JFC was the first company on the Russian fruit market to actively brand and advertise its produce. We are responsible for the quality of our fruit and want our consumers to know this.

The company has created and patented fruit vending machines which offer a healthy alternative to usual snack foods (crisps, nuts and chocolate) sold from machines. Our children are our future; therefore, with the support of the Saint Petersburg Governor, JFC has implemented a separate program to distribute these machines in schools, institutes and other public places.

Charity

JFC traditionally concentrates on participating in significant social charity projects. One of the distinctive features of our program is the long term partnerships we have established with cultural and educational organisations. One of the company's latest projects is sponsorship of the Saint Petersburg Imperial Mikhailovsky Opera and Ballet Theatre. Also in 2007 JFC provided financial assistance to the Children and Youth School of the Olympic Reserve. In Ecuador the company works in partnership with the Charity Fund «Sisters of Dominga Bocca» which provides help for orphans and children from disadvantaged families.

Fiscal Transparency

Over the last few years JFC has been one of the largest tax payers in the regions where our terminals are situated. In 2007 alone the total amount of tax JFC put into the Russian budget was more than 279 million roubles. The amount in Ecuador was 650 thousand US Dollars.

The average monthly salary of JFC Group employees is significantly higher than the average national monthly salary. The income growth of JFC employees is based on increased productivity, efficiency and quality of work. Considering that local authorities receive most income from personal taxation and taxation on profit then JFC is not only helping to improve the quality of life for its employees but also for the regions as a whole.

Information Transparency

JFC remains in constant contact with consumers, regulating bodies and heads of the regions where the company operates. We are committed to a policy of information transparency and we publish all important information concerning our work in the public domain. We believe that publishing full and exhaustive information about us is not only the company's duty, but also a business development driver. The trust of our partners and consumers is one of the most valuable assets that the company can have.

Personnel Management

JFC personnel policy is to attract and keep highly qualified staff at all levels and to support them professionally, materially and socially.

In order to have professional staff who guarantee the efficient working of JFC, we have taken the following steps:

• professional training and career development;
• creation of conditions for each employee to realise their abilities, career development and increase work efficiency;
• to have a stable staff whose quality is added to with an inflow of young workers;
• train staff for management positions;
• strengthen work and production discipline;
• increase the overall cultural and educational level of the company's staff.

By the end of 2007 the average number of JFC Group employees was 3667. Of these 1491 were employed in Russia and 2176 abroad. The educational level of JFC employees is quite high and over half have higher education qualifications.

JFC Group is a reliable and responsible employer where staff are treated equally and honestly. The company is proud that employees share the team work philosophy and JFC's key values.

Motivation

The company aims to be one of the most attractive employers and has therefore established a motivation and incentives system for its employees. This includes not only salary and bonuses but also the possibility of personal and professional growth, confidence in the future and social security.

The main principles of financial incentives lie in carrying out efficiency indicators as described in the Regulation on bonuses, raises and material incentives as approved by the company's management. These include: for conscientiously and professionally carrying out one's responsibilities, guaranteeing best work practices, guaranteeing the smooth performance of the company's work and a decrease in costs, for introducing modern technologies into the production process and also staff encouragement for professional expertise and high professional quality.

Training

The variety of internal and external training programs conducted by the company using the best educational technologies enables JFC employees to gain new knowledge and develop their professional skills. By helping employees plan their career growth in the company we help them set themselves career growth goals and achieve those. JFC collaborates with many higher educational organisations whose students can have work practice in the company. In order to become familiar with modern business development trends and best practices, JFC regularly participates in professional conferences and forums.

Social policy in Russia

JFC has an effective social policy taking into account the sector's features and the company's possibilities.

An effective social security policy, developed and introduced by the company, helps attract qualified specialists and is an important factor in the company's success. Our employees are provided with a wide range of social benefits; voluntary medical insurance, accident insurance, food expenses compensation, financial assistance for weddings, births, anniversaries, retirement and additional business trip expenses payment.

JFC looks after the health and career development of its employees as well as increasing their cultural development. We organise regular trips for our employees and their families to interesting theatrical performances.

Social policy in Ecuador

We currently employ more than 2000 people in Ecuador, not counting fixed term contract workers. JFC completely satisfies the Ecuador Labour Law requirements, including not using child labour and paying a fair wage and providing social protection.

All employees are insured by IESS (Ecuadorian Social Security Institute) which gives them all the necessary social guarantees. The company has a number of agreements with hospitals in various production areas in order to provide swift help for plantation workers when needed. The company conducts an on-going vaccination program and monitors the health of all its employees. If necessary, employees are able to obtain credit from the company.