Our Approach to Business

Letter from
Paul S. Michaels

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OurCEO Paul S, Michaels
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What most people know about Mars is that we have a portfolio of brands that are loved by billions of consumers around the globe. What most people don’t know is that we are one of the world’s leading privately-owned corporations with more than 65,000 Associates, and that we touch millions more in the communities where we operate or source our ingredients. We have always been active in communicating about our products, but historically did not feel the need to say much about our company. Why change now? And, why this particular summary?

Times have changed. It used to be that consistently delivering the highest quality and value in products and services was the most important thing a company needed to do to earn the trust of its stakeholders. Those expectations have in no way diminished, but today, there is also an expectation that companies demonstrate quality and values in everything they do to bring these products to market. Very reasonably, people want to know that they are choosing to support companies that meet their responsibilities to their Associates, consumers, customers, suppliers, communities and the environment.

As president of Mars, I am proud that delivering against these responsibilities is at the very heart of who we are, and has been for generations. To know Mars, Incorporated is to understand our heritage, and the Five Principles that guide us every day, are at the heart of how we operate, and have helped us become the successful global food business we are today.

These Five Principles: Quality, Responsibility, Mutuality, Efficiency and Freedom, unite all of us at Mars across generations, geographies, languages and cultures.

Our business purpose, first expressed by Forrest E. Mars, Sr. in the early 1930s, calls upon us to create mutual benefits for all of our stakeholders. This purpose, and the stewardship of the Mars Family, inspire us to put our Mars Principles into action in everything we do, and strive to make a difference to people and the planet through our performance.

We do have a positive impact on the environment and the quality of life of many around the world, but we also have some challenges.

Our main environmental impacts occur in the fields, forests and oceans that supply the ingredients for our chocolate, confections, foods, pet foods and hot drinks. Our manufacturing also has an impact via carbon emissions, water use and waste generation.

We are also focused on our social impacts through our products, and in our operating and sourcing communities. In addition to employing thousands in our manufacturing sites and contributing to the economic prosperity of our operating communities, we play an important role in the lives of the millions of farmers that supply our raw materials. Some of these crops provide profitable livelihoods for growers. In others, like cocoa, there is the need to improve the prosperity of farmers – and ensure that these farming communities are reaping the benefits of supplying the global chocolate industry.

We manage our environmental and social impacts by leveraging the best science possible to understand, chart and minimize the negatives, and maximize the positives – working with partners of all types: governmental, non-governmental, academic and corporate. Where Mars is a major global player in a given material – such as cocoa and rice – we can be leaders in progress toward sustainable, positive developments. Where we are less important consumers – as in grains and sugars – we are equally committed to playing our part through partnership with others better equipped to deliver positive change.

Mars’ boldest environmental strategy is what we call Sustainable in a Generation: by 2040 our offices and plants will use no fossil fuels and emit no greenhouse gases, and we are developing similar long-term commitments for waste and water.

In addition to an explanation of these targets, this summary describes how we are putting our Principles in action across our entire business, including our focus on our supply chain, health and nutrition of our products, and creating a workplace where all our Associates are free to demonstrate leadership, learn and grow.

My thanks to all of the Mars Associates that bring our Principles to life every day and, in particular, to the Mars family that have enabled all of us to create a business of which we can be proud.

My thanks also to the critical partners that have helped us move forward with our ambition to make a difference for people and the planet through our performance and who continue to work with us to tackle our on-going challenges and opportunities. We are on a journey as a company, and we are pleased to share with all our Associates and partners the roadmap we’re developing for the future and our progress to date.

Paul S. Michaels

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