APPENDIX 7

STATEMENT OF
CORPORATE PRINCIPLES

GROUP INTERNAL AUDIT 1 January 1997

XYZ

XYZ London Limited

 150 River Walk
London WC2 3XD

(Chairman’s name)
Chairman

(Date)

STATEMENT OF CORPORATE PRINCIPLES

This policy Statement addresses the general principles of our corporate life. Our separate Code
of Business Conduct sets out the rules which govern our application of these principles. Our
Code of Ethical Conduct applies our policy principles to scientific and environmental issues in
particular. You will find some wording in common between the Statement and the two Codes
where similar principles and practices are set out.

Copies of these three documents are available to all staff - from regional and country managers,
and from divisional and business unit heads. They are also available from Environmental Affairs
staff or through Internal Audit locally or at Group level, from whom guidance on interpretation
and application may be sought.

XYZ operates responsibly and with integrity, avoiding even the suggestion of impropriety. There
should be no risk to our reputation if any details about our affairs became public knowledge. It is
our policy to operate worldwide in a manner which protects the environment and the health of
our employees and of those in the communities where we have an impact. We conduct our
business honestly, scrupulously and free of deception or fraud. We observe applicable laws and
regulations. We endeavour to ensure that equivalent standards are followed in companies in
which XYZ has an interest but does not have control and also in those businesses with whom
XYZ has contractual relationships.

The Board of XYZ regards it as the duty of every individual employed by or acting for XYZ to
observe the principles set out here. Any individual has a right to raise concerns about apparent
breaches of these principles directly with senior management or with the Group Director of
Internal Audit.
Conflicts of interest
XYZ’s staff are to avoid any real or apparent conflict between their personal interests and those
of XYZ. XYZ’s assets and other resources are for use in XYZ’s business only.

Business gifts, favours and entertainment

XYZ does not encourage the practice of giving or receiving gifts, even of nominal value. This
also applies to gifts etc made indirectly by another on XYZ’s behalf. We believe that commercial
criteria, rather than the influence of gifts, etc, best serve XYZ’s interests. When gifts etc are
made they should be lawful and ethical, necessary and appropriate, of nominal or moderate value,
capable of reciprocation, and properly authorised and recorded. They should not be interpretable
as an improper inducement, nor be extravagant or too frequent.

Confidentiality
XYZ’s information is handled with discretion. It is not to be misused nor disclosed so as to place
XYZ at a potential or actual commercial disadvantage, or for the benefit of another who is not
entitled to receive it. Rights and responsibilities under privacy and other data legislation are to be
observed.

Internal control
XYZ acknowledges its duty to maintain an effective system of internal control which provides
reasonable assurance of the achievement of business objectives, of the reliability of information
used for reporting, of the safeguarding of resources, and of compliance with laws and regulations.

Operational and accounting records

It is company policy (a) that the operational records and accounts of the business are to be
reliable, truthful, accurate, complete, up-to-date and in compliance with prescribed standards and
regulations, and (b) that there shall be no falsification. There are to be no secret or unrecorded
activities, bank accounts, funds of money or other assets; no liabilities are to go knowingly
unrecorded or unprovided for; and there are to be no off-books transactions.

Relationships with suppliers

The viability of our suppliers is a key concern of XYZ. We set out to observe the terms of
purchase orders and contracts - including the payment of suppliers according to agreed payment
terms. We give weight to the quality of past service to XYZ while ensuring that transactions are
justified on commercial grounds, and while actively considering alternative sources of supply.
We avoid excessive dependence upon particular sources of supply when possible.

Political activities and contributions

XYZ companies are authorised to make political donations in the countries where they operate in
so far as the objective is to facilitate a healthy political process and to the extent that the
contributions are lawful and meet our other criteria relating to purpose, amount, transparency and
authorisation.
We have an interest in communicating relevant, reliable and responsible information and views on
issues of public concern which impact upon our business.
XYZ strives to be a good employer with regard to individual staff who are actively involved in
politics as private individuals.

Conduct towards employees

XYZ is committed to its employees. We seek to maximise the extent to which employees achieve
their personal potential through their work with XYZ. We do this in part through appropriate
commercial policies so that employees share in the company’s success, and in part through
policies which relate to health and safety. We believe in the inalienable right of every person to
their personal dignity and do not allow practices which infringe upon this. All XYZ employees
have equal opportunity in their employment. Staff are recruited for their relevant aptitudes, skills,
experience and ability. Discrimination or harassment on grounds of race, colour, marital status,
religion, sex, sexual orientation, ethnic or national origin, or legal political activity is not
permitted. Treatment at all times shall be fair in terms of compensation, job security, work
experiences, recognition of achievement and opportunities for advancement.

Conduct in the community, and charitable contributions

Our business is dedicated to the well-being of individuals. We have a duty to avoid conduct
prejudicial to the communities where we do business and to enhance community life where
practical. Our community support is targeted to improve economic or social well-being.

Customer relations and product quality

We strive to ensure that our products and services meet or exceed customer and statutory
requirements at economical price; that our product information is reliable, and that we are
responsive to customers’ enquiries.

Please use your best endeavours to bring this Statement to the attention of all personnel and to
any with whom we are associated or do business.

(Chairman’s Signature)