SOCIAL RESPONSIBILITY

At Krug we have built our reputation over 130 years on the principles of integrity and dignity in our relations with staff, customers, suppliers, and the communities in which we operate. Meeting legal and regulatory requirements is simply the minimum.

Health & Safety
The safety of staff is one our highest priorities. High standards are established in policies, procedures and training. We strive to have zero lost-time accidents. We measure, monitor and aim to continually reduce the number of incidents requiring medical aid. There has been a 46% reduction in medical aids from 2006 to 2010. There is continuous health and safety training of all staff.

The following chart shows the progress made over the past 5 years.



Senior management meets monthly to ensure the safety program is sound. There is an ongoing process that includes:

• Reviewing performance
• Ensuring the Joint Health and Safety Committees are operating effectively
• Promotions
• Communication of results to all staff
• Updating training
• Development and maintenance of safety polices
• Auditing for compliance in areas such as housekeeping, use of personal protective equipment , machining guarding, and safe operation of forklifts

This is complemented by a rigorous investigation of all accidents and near misses to ensure appropriate corrective actions are implemented.

The health and well-being of staff is crucial to their productive contribution to the company's success. Benefits and an employee assistance program provide support to staff families.

Inclusiveness, Employment Equity and Human Rights
Krug will not tolerate discrimination on the basis of age, race, gender, religion, those with disabilities or aboriginal peoples. All staff members are made aware of this policy. The company's Employment Equity program eliminates any barriers to employment.

Krug's staff breaks down as follows:

	2009	2009	2011	Characteristics of the Population in Communities where Plants are Located
Male	63.40%	64.10%	63.90%
Female	36.60%	35.90%	36.10%
Visible Minority	8.95%	8.75%	9.76%	15%
Aboriginal	1.12%	1.15%	1.47%	2%
Disability	2.24%	2.3%	2.21%

Krug protects and respects the rights of its people. Employees' rights are further guarded by other legislation including the Canadian Charter of Rights and Freedoms and the Workplace Violence and Harassment Act. Krug endeavours to satisfy itself that the treatment of staff within its suppliers' operations is acceptable.

Community Outreach And Involvment
Krug is a strong supporter of the communities in which it operates. This includes charitable donations of cash and furniture, as well as staff contributions of cash and volunteer hours. For decades Krug has been a strong supporter of the hospitals in its community. Over the years, the company has donated hundreds of thousands of dollars to the hospitals and its staff members have provided hundreds, if not thousands, of hours of volunteer time.

Similarly, the company and its staff have been long-time financial contributors to the United Way and have provided a substantial amount of volunteer leadership time at the local, provincial and national levels.

Krug is involved in supporting the community in many other ways. For example, it supports a Foster Child, and has donated both financially and in-kind (furniture) to many charitable organizations. Its staff members have provided volunteer time to many organizations including Kidsability, Canadian Cancer Society, Foodbank, Conestoga College, and the Kitchener and Waterloo Community Foundation.

The company's President has financed Centro de Capacitacion de Estudiantes Del Sagrado Corazon de Jesus (Sacred Heart of Jesus School) in Valle Sacta, a girl's orphanage/school in Bolivia, for the past 5 years with the intent of eventually having the company also participate financially in this. There are about 70 children who would otherwise not be getting any or much in the way of an education, medical care, nutrition and clothing, and in many cases, would be destitute and on their own.

In the past 12months, among others, Krug and its staff supported the following organizations in donations of cash, time, furniture or materials:

• United Way
• Ronald McDonald House
• Rotary International
• Mennonite Relief
• Habatit for Humanity
• Grand River Hospital
• Local Schools
• Common Thread for the Cure
• Local youth team sports
• The Food Bank
• Foster Child program
• Grand River All Breeds Rescue
• Firefighters Tournament for MS

Corporate Ethics
Krug demands the highest level of ethical behaviour in all of its dealings. A gift policy prevents individuals who are directly involved with customers or vendors from being influenced in their decision-making. This is accomplished by ensuring that no individual personally benefits from a gift.