A stakeholder dialogue at McCain in Latin-America

Preliminary proposal Forum EmpresaJanuary 18th 2012

The aim of this proposal is to develop an open dialogue with stakeholders in Argentina as a way to recognize their insights and views, to help the company shape its actions and to archive its objectives related to developing the business significantly in the next 5 years.

Specifically:

To identify the most important stakeholders of the company, To raise expectations of the stakeholders and the main concerns regarding McCain

business, To receive critical feedback on how Mc Cain is operating its business in Argentina, To start a process of dialogue on relevant issues for the company and the stakeholders.

We suggest the manufacture facility located in Balcarce, Argentina to start the dialogues in Latin-America, the biggest in the region.

Deliverables

Forum Empresa will deliver:

Facilitation of a 4 hour session with a group of no more than 35 people, A full report including the methodology used during the dialogue, A list of McCain’s stakeholders in Argentina and their main expectations , A list of critical issues that were mentioned during the dialogue and recommendations on

how to address them, The results of the dialogue from the perspective of the participants, A summary of conclusions on how the company could further mainstream a stakeholder

engagement program.

Facilitators

IARSE Instituto Argentino de RSE, a partner of Forum Empresa in Argentina

Alicia Rolando de Serra

She is co-founder, and also Research and Development Director of IARSE (Argentine Institute of Corporate Social Responsibility). Alicia is in charge of the Academic Coordination of the Annual Training Courses given by IARSE. These are: CSR Intensive Course for Corporate Executives, and CSR Actualisation Course for the Upper Management, as well as other training programmes delivered in Argentina, and in nearby countries.

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She is also author and co-author of several publications issued by IARSE and Empresas por la Infancia (Fundación Arcor; Save the Children; UNICEF). Alicia leads the team of professionals that generate the management tools (IARSE/ETHOS Self-Application and Self- Diagnosis Indexes for SMEs and Big Corporations).

This team is also responsible for the formulation and development of specific programmes in alliance with national and foreign Foundations, Civil Society Organisations and Corporations.

She also does training and consulting in different topics related with the corporate social responsibility, sustainability reporting, and stakeholder engagement.

Josefina Shapira

Josefina Schapira is a partner in Perspectivas Sociales from where she conducts research and performs consulting activities for businesses and social sector organizations.

From 2001 and until 2003 she coordinated a Civic Journalism Initiative funded by the Avina Foundation which included the participation of mayor local media and more than 500 citizens.

From 2006 until 2009 she was responsible for AVINA’s "Learning Cycle", a quantitative research performed annualy to meet the expectations and satisfaction of their leaders and partners in Latin America and since 2005 collaborates in qualitative research conducted in different AVINA offices in Latin America.

She participated in the systematization of different perspectives on CSR in two meetings of the Network of Latin America and the Caribbean promoters of CSR organized by IARSE / Kellogg Foundation.

In the past seven years she has been working with the NGO Inclusion Social in developing strategies for positioning "work culture" and for bridging the gap between young people and their potential employers through dialogue.

In 2011 she signed a biannual advisory and research agreement with Junior Achievement Foundation's office in Cordoba to measure the impact of the programs that they teach and to identify and then speed up communication processes with stakeholders.

She is also responsible for measuring the impact of the project "Women Entrepreneurs" coordinated by the Junior Achievement Foundation for the Americas and Citi in Argentina, Paraguay, Peru and Dominican Republic.

She is a member of the Advisory Council on Inclusion Social Foudation since 2004 and member of the Board of Directors of the Argentine Institute of Corporate Social Responsibility since 2009.

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Methodology

Step 1: Planning the dialogue

We suggest starting conversations with McCain UK, Argentina, Forum and IARSE in order to agree on the following issues:

1.1. Jointly defining the focus and purpose of the dialogue.

1.2. Clarifying if this action is connected to others including stakeholders.

1.3. Securing the involvement of senior executives.

1.4. Guarantying commitments.

Step 2: Setting rules and conditions

2.1. To list stakeholders to be invited. The definition will consider these criteria:

o Responsibility o Influenceo Interestso Tensions o Expectationso Dependency o Representation

A map including the ability and impact of each stakeholder will be validated with the company.

A preliminary list of invited Stakeholders to be checked with Mc Cain is included below:

Senior executives of the company Employees (trade union representatives) Customers (selection of main clients in Argentina) Consumers (associations of consumers) Suppliers (representatives of associations of farmers and other types of suppliers) Government (local and national authorities on health, agriculture, environment and

energy) Interest groups (environmentalist, national and local journalists, other nonprofit groups

related to agriculture)

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Approximately thirty senior representatives are expected. Representatives will be able to reflect the concerns of major stakeholder groups, and will secure expertise, reputation, time and goodwill towards the dialogue.

2.2. To design rules for participation: confidentiality, public communication of the dialogue.

2.3. To define the topics to be addressed and debated and to review emerging topics that could unexpectedly arise.

The dialogue will focus on two main issues:

Food and agriculture Environment and water usage

A preliminary list of issues is included below:

Information regarding seeds and its effect on health Contractual relations with farmers. Selection of suppliers Sustainable farming Working methods Labor conditions Balanced diet in the community. Information on potato processing Waste disposal and treatment Use of energy and water Information on environmental impact report Distribution process: truck traffic

The selection of issues will be made together with the company throwing an activity aiming to map stakeholders´ expectations and its impact on the business. Please consider the following as an example of this tool.

Stakeholder Expectation Effect Consumers Quality products Sales

Investors Low risk and high profitability Capital

Employees Good working conditions Productivity

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Governments and authorities That are responsible ‘accountable’

Legislations and regulations

Local community Socioeconomic development Legitimacy / license to operate

NGOs Transparency and equity Reputation

Industry Minimum standard Best practice

However, the selection of topics should be careful about raising issues the company is not prepared or does not deserve to address. For this purpose each of the topics will be analyzed considering relevance and the ability to respond during the dialogue.

Step 3: Delivering the workshop dialogue

3.1. To help stakeholders to gain a better understanding of corporate strategies and operations.

3.2. To build trust through listening to the real expectations of the stakeholders and to start a dialogue on their main areas of concern.

3.3. To respond or commit to responding and informing stakeholders of future plans.

Step 4: Measuring results

A full report will measure the results including the methodology used during the dialogue; a list of McCain´s stakeholders in Argentina and their main expectations; a list of critical issues that were mentioned during the dialogue and recommendations on how to address them; the dialogue participants evaluation results; and a summary of conclusions on how the company could further mainstream a stakeholder engagement program.

In the short term future: To elaborate plans and programs taking into account the expectations of the stakeholders and informing them of advances.

In the long term future: The vision is to create a common environmental and social agenda. This agenda of common interests could lead to the process of creating joint actions in order to archive new management standards (together with workers), common goals regarding local living conditions (together with neighbors and local authorities) and actions to improve the green environment shared by the company and the community (together with environmentalists).

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About Forum Empresa

FORUM EMPRESA is an alliance of CSR-based business organizations that promotes corporate social responsibility (CSR) throughout the Americas. Its mission is to articulate and reinforce the Forum Empresa Network’s member organizations in their objective of fomenting Corporate Social Responsibility in their respective countries, favoring interaction and exchange between them. It also works on common projects with international organizations with the purpose of promoting CSR in a specific country or region.

About IARSE

The Argentine Institute of Corporate Social Responsibility (IARSE) was founded in 2002. It is a private, nonprofit organization created with the initial support of the Foundations W. K. Kellogg from United States, and AVINA from Switzerland.

Now it has a strong and growing group of member companies that support it in fulfilling its mission. It focuses on making available information and management tools to incorporate the practice of CSR in business organizations. It also produces spaces that allow the exchange of experiences between stakeholders from business, social and academic fields, and promotes mutual cooperation between the companies that have decided to make responsible behavior a value to build a more just and sustainable economy.

A committed team of specialists from the world of business and the social sector has succeeded in making the institution become one of the main national and regional references on CSR.

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