2013 Sustainability Report | Imagem Corporativa by Alexandra Marchesini

2013 Sustainability Report 1

SUMMARY

The Report

CEOâ&#x20AC;&#x2122;s Message

2013 Highlights

Imagem Corporativa Profile

Corporate Governance

Business Expansion

Main Stakeholders Employees Clients Press and Opinion Makers

18 20 24 26

Social and Environmental Responsibility

GRI and Global Compact Indicators

THE REPORT 2013 is the second year we have conducted this important corporate-sustainability exercise. Imagem Corporativa (IC) is Brazil’s first Public Relations agency to publish a report in line with the criteria of the Global Reporting Initiative (GRI), the institution responsible for the world’s main standard for sustainability reports. With this edition, we will also be the first to publish a report that complies with the G4, the most current version of the GRI criteria, which will become obligatory as of 2016. We opted for the Core format. Companies in the PR area in Brazil are typically secretive, and they do not customarily share information concerning their challenges and strategies. Accordingly, we believe that the publication of this report, which follows the GRI-G4 criteria, can contribute to positive changes throughout the market, with other agencies following the same path. More than a mere motive for pride, our decision to consolidate the company’s corporate sustainability initiatives according to the world’s most highly accepted and widely used standards is strategic. We believe that the process of compiling this document leads us to rethink and improve our practices and relationships with the most diverse stakeholders. By way of this report, we evaluate the results we achieved, our market and its perspectives; consider the challenges presented; and contemplate the strategies we prepared for meeting such challenges, always keeping our attention focused on our principles and values. In short, this is an opportunity for us to reconsider our modus operandi in order to redirect our course and recognize initiatives that display positive results. While the preparation of our first report led us to consolidate our Code of Conduct and various internal policies, during this year’s process we decided to share our Code with clients and invest more intensely in our employees, who are essential to Imagem Corporativa.

Definition of Materiality More than a catchphrase, our conclusion that people are the agency’s main asset is the result of a survey

conducted throughout 2013 as part of the process required for compliance with GRI-G4 guidelines: the definition of materiality. In order to discover which issues are considered “material” by our stakeholders, we surveyed employees, clients, partners, journalists and opinion formers. We also examined the recommendations of the GRI media supplement and heard the company’s board of directors, including the CEO. The result of this process demonstrated that a PR agency’s materiality lies in its people. The five most important themes to the stakeholders surveyed were the following: Human Rights; Employment Practices and Employee Relations; Product Liability (Imagem Corporativa’s products are the everyday services provided by our teams); Financial Performance; and Purchasing and Hiring Practices. In the qualitative survey, certain issues stood out, namely responsibility for one’s work (especially with regard to the manipulation of information), human resource policies and the quality of the relationships established by the agency. In other words, issues that are relevant to Imagem Corporativa’s sustainability depend essentially on the people that make up the agency. Accordingly, this is the document’s main highlight. More specifically, this report presents the Corporate Governance procedures followed and the way we operate alongside our main stakeholders, considering the events of 2013 and all of the agency’s operations (São Paulo, Rio de Janeiro and Brasília) as a parameter. It also demonstrates the way we fulfill our social role using tools inherent to a company specializing in corporate communications, public relations, and public affairs matters. We do not publish a balance sheet because we are a limited partnership. Nonetheless, we present important financial information related to sustainability, as recommended by the GRI. It is also worth emphasizing that Imagem Corporativa has been GRI’s Public Relations partner in Brazil for three years. 3

CEO’S MESSAGE Resulting from a society undergoing constant evolution, the increasingly complex and sophisticated corporate environment has contributed to the PR sector’s development as a whole. We are currently witnessing a growing demand (unprecedented at this level) for quality, ethics and relationships that are more just and transparent. Imagem Corporativa has positioned itself at the forefront of this movement in the Brazilian Public Relations market, which in this context refers to the sum of the various disciplines of the communications field. In recent years, we improved our practices and conduct in relation to employees, clients, opinion formers and other agents that are directly or indirectly part of our business. In 2012, this stance led us to launch a sustainability report that already came with the approval of the Global Reporting Initiative (GRI), the world’s main standard for this type of document. With its publication, we became Brazil’s first PR agency to have a report that was in line with GRI parameters. As a company associated with the Brazilian Association of Communications Agencies (Abracom), the Brazilian Corporate Communications Association (Aberje), the Ethos Institute and international sectoral organizations such as PROI Worldwide, the International Communications Consultancy Organisation (ICCO), the International Public Relations Association (Ipra) and the Public Relations Consultants Association (PRCA), among others, as well as a signatory to the Global Compact (UN), we now aim to influence our equals to adopt increasingly sustainable practices. In Brazil, the corporate communications sector can hardly be called mature in relation to best practices, and there are a significant number of players that still have not adhered to the most advanced forms of Corporate Governance.

In this second sustainability report, we demonstrate our efforts to improve Imagem Corporativa’s performance in a very challenging year. In 2013, the Brazilian Public Relations segment’s revenues remained at the same level as that of 2012, according to the 2014 Brazilian Corporate Communications Annual, while the Gross Domestic Product (GDP) exhibited a 2.3% increase. This result reflects the more cautious scenario, with lower consumption levels, reduced investments in various sectors and a growing inflation rate. Even within this context, Imagem Corporativa’s revenues increased by 7% in 2013. In order to achieve these earnings, we continued our strategy of launching new services, offering increasingly integrated solutions and seeking out clients from various sectors and countries. In this increasingly sophisticated environment, we are investing in the training of our teams. An allencompassing vision of communications, its new tools and approaches, and economic, social and political variables is essential for today’s Public Relations professionals. In 2013, we increased training time by almost 80% and attained an average of 69 hours per person during the year. We also believe in the importance of providing our employees with international experience in our area of operations, and we are thus continuing our traditional exchange program with Public Relations agencies in different countries. Launched in 2009, this program has already taken the company’s professionals to the United Kingdom, Germany, the United States, China, and Chile; and, in 2013, India.

performance of companies from the most diverse sectors; and we won the ACE Awards in the Media Relations category and the Stevie Awards as Public Relations Agency of the Year in Mexico, Central America and South America (bronze seal). I personally monitor compliance with Global Compact principles, which we are committed to following. This is achieved through constant meetings with the board of directors and the HR department, as well as with the employees in general. Meetings with the team occur in a structured manner, with predefined dates, and on a daily basis, for I follow an open-door policy, and issues related to the Principles are given priority on my agenda. Our progress on sustainability’s various fronts would not have been possible without the direct participation of our stakeholders. In conclusion, I thus want to thank the entire Imagem Corporativa team for its involvement and dedication – a team that works hard to construct an agency that gets better every day. I also thank our clients, suppliers and other business partners for their trust in our company.

Ciro Dias Reis Chief Executive Officer, Imagem Corporativa

In terms of market recognition, 2013 was a highly positive year. We were among the finalists of the Ethical Corporation Responsible Business Awards, in the United Kingdom, which awards the sustainable

2013 HIGHLIGHTS

PERSONNEL MANAGEMENT Survey conducted according to the Great Place to Work methodology; intensification of the exchange and training programs, which registered an average of 69 training hours per professional during the year.

MANAGEMENT TRAINING Training for managers conducted by the consulting firm Great Place to Work, with emphasis on creating a healthier work environment.

PREPARATION FOR THE FUTURE External advisory services and development of an exclusive PR management system to increase the efficiency of the agency’s business.

SOCIAL RESPONSIBILITY Consolidation of the IC Social Responsibility Committee; training course with NGOs recommended by clients; and development of pro bono projects focused on sustainability.

BUSINESS EXPASION Focused on mid- and long-term target dates, with the development of new services and the establishment of international partnerships to bring innovative products to Brazil.

View of Imagem Corporativa’s headquarters, in São Paulo

IMAGEM CORPORATIVA PROFILE Founded 13 years ago by journalist Ciro Dias Reis, Imagem Corporativa is currently among Brazil’s top PR agencies. Throughout this period, it has been constructing its history on a solid foundation, with ethics and transparency as essential principles. Since we truly believe that reputation is the company’s greatest asset, we consider this issue in everything we do, whether in the management of internal processes, the counseling of clients or our day-to-day relationship with the most diverse publics. Imagem Corporativa provides companies and other organizations with a wide range of services, which include the following: diagnostics and strategic communications consultancy; relations with opinion formers and social media agents; management of internal and external channels; training programs; processes for managing potential risks, emergency situations and crises; internal communications; production of content; corporate social responsibility programs; and public affairs activities. In 2013, IC enjoyed R$ 14.1 million in revenues. Headquartered in São Paulo, IC features offices in Rio de Janeiro and Brasília. Due to being the Brazilian partner of PROI Worldwide, the world’s largest partnership of independent Public Relations agencies, IC operates globally by serving international clients throughout Brazil and developing programs for Brazilian companies in other markets. Its 90 professionals (March 2013) possess a wide range of qualifications, which contributes to the agency being recognized in the market for its broad vision, not only concerning communications, but also in relation to macroeconomic, social and political variables and as

regards the sectors in which its clients operate. In 2013, Imagem Corporativa received international awards. We were the winning agency in the Media Relations category of the ACE Awards, which are promoted by Ragan Communication and PR Daily, two digital platforms that operate together, on a global scale, covering various aspects of the communications sector and providing services in this field. We were also among the finalists of the Ethical Corporation award, which recognizes companies from various sectors for their advances in the sustainability area. Additionally, we won the bronze seal in the category “Public Relations Agency of the Year” in Mexico, Central America and South America (Stevie Awards). As a dynamic company in its sector, Imagem Corporativa is a member of various organizations. In the communications area, it is associated with PROI Worldwide, the Brazilian Corporate Communications Association (Aberje), the Brazilian Association of Communications Agencies (Abracom), the International Communications Consultancy Organisation (ICCO), the International Association of Business Communicators (IABC), the International Public Relations Association (Ipra) and the Public Relations Consultants Association (PRCA). It is also a member of the Ethos Institute, the Global Reporting Initiative (GRI) and Amcham Brazil (American Chamber of Commerce), and is a signatory to the Global Compact (UN). The agency is represented on the boards of directors of Abracom and PROI, on the board of the ICCO and on the executive council of the department of publicity and public relations of the University of Georgia, in the USA.

Weekly Partners Meeting

CORPORATE GOVERNANCE

Our Structure Imagem Corporativa is a closely held company in which the majority of the partners participate in the agency’s decisions and daily routine. The senior partner (Ciro Dias dos Reis) holds the position of Chief Executive Officer of the agency and meets weekly with the other directors to discuss the progress of our activities, evaluate results and strategically define the company’s short-, mid- and long-term targets.

CORPORATE STRUCTURE Agostinho Gaspar

Ciro Dias Reis

(Investment Partner)

(Chief Executive Officer)

Rodrigo Pinotti

Fernanda Arimura

Samanta Greghi

Renata Dalla Déa

Ana Letícia Wiederkehr

Eliza Diniz

(Director)

Paulo Silva

Danilo Maeda

Julia Reis

Maira Escovar

(Coordinator)

Some of Imagem Corporativa’s main decisions are made at these forums. The major highlights in 2013 were the consolidation of investments and improvements in the area of human resource management (for more details, please see Main Stakeholders – Employees); the strengthening of our internal communications and social responsibility committees; the development of new products and services; the establishment of international partnerships to bring innovative communications tools to Brazil and provide continuity to the agency and its partners’ support of and adaptation to the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, the Environment and Anticorruption. The agency keeps its Social Responsibility and Internal Communications committees strongly active. Both committees are comprised of employee volunteers, and they always enjoy the participation of the agency’s partners. The members of each group are renewed annually. The committees operate independently in relation to the agency’s organization chart; however, they conform to the strategic guidelines of the board of directors. They meet periodically – at least once a month – to define the practices and initiatives of the two areas. The initiatives and results are described in detail in specific chapters (Main Stakeholders; Social and Environmental Responsibility). 12

Our Responsibility In order to formalize our commitments with clients, employees, suppliers, partners and society as a whole, in 2012 we consolidated the agency’s Code of Conduct and policies. This document was the result of an organizational revision initiated with the production of the first sustainability report. It consolidates our values, premises and policies of institutional and governmental relations, customer service, corporate social responsibility, internal communications, human resource management and administrative procedures. In addition, Imagem Corporativa is a signatory to the Global Compact of the United Nations Organization (UN), a commitment that requires us to promote and make continuous improvements in four broad areas: Human Rights, Labor, the Environment and Anticorruption. As a document that regulates the behavior of all our professionals, our Code of Conduct gathers together the agency’s general principles and encompasses ethical questions and issues concerning relations with our stakeholders: clients, employees, governments, commercial partners, competitors, journalists, social media agents and other opinion makers. This document also stipulates the conduct of the agency and its employees with respect to the four main themes of

the Global Compact. It also specifies punishment for conduct and attitudes that come to violate human rights principles, guaranteeing our professionals’ freedom of association and a work environment free of prejudice, discrimination, abuse and harassment of all types, forced or compulsory labor, and child labor. We registered no cases of this type in 2013. We believe that the key material factors for the agency’s sustainability reside in the day-to-day performance of each of our professionals: the way each employee interacts with our various stakeholders is what defines us. Accordingly, the initiatives mentioned in this chapter are disseminated to all of the agency’s employees through readings of the Code of Conduct and specific training conducted periodically. In 2013, we achieved an important advance in relation to collaborating toward a more responsible corporate environment: we shared our Code of Conduct with our clients, aiming at establishing joint commitments, especially with regard to the themes and priorities presented in the Global Compact of the UN. In addition to guaranteeing application of the principles and commitments we abide by, the agency’s policies contribute to guaranteeing that our culture, ethics and way of doing business are present in all activities. Everything, from the everyday routines performed by our support teams to our most important strategic decisions, must obey the same ethical principles and standards.

frequently contact clients, business partners, journalists and other opinion formers. All of our partners are responsible for conducting such monitoring and orienting their teams to see to the demands presented, in addition to resolving eventual conflicts. This process produces content for the company’s annual planning and enables us to ascertain whether our operating principles are reflected in the way the agency is perceived by the market in general. In 2013, we substituted our annual survey of clients, journalists and other contacts (business partners, associated companies and institutions) for a procedure that led us to the construction of our materiality list. Along with this procedure, our definition of stakeholders followed the criteria of their relevance to the development of our activity and to business continuity in general. As a consulting firm, Imagem Corporativa has a supply chain that has no significant impact on the businesses operated; thus, our report concentrates on the activities promoted by the agency itself with respect to adapting to and promoting sustainability within the company and among our stakeholders. In any event, in the table below we summarize our attempts to influence our production chain in the direction of constructing a more sustainable business environment: Material aspects

Aspect limit

Our golden rule is to employ transparency, ethics and commitment to the truth in everything we do. We disseminate these practices on our bulletin boards and at the IC Panel (a meeting of all of the agency’s teams to present cases and hold debates concerning best practices), which occurs twice a year.

Human rights

IC + clients and suppliers

Labor practices/ employee relations

IC + clients and suppliers

Responsibility for products

During this period, we honored our commitment to monitor and evaluate the level of adherence to the agency’s principles and policies. Our partners monitor at least 50% of all content produced and distributed and contacts established with our stakeholders. Our partners’ participation on internal committees also guarantees that our practices comply with our policies.

Financial performance

Acquisition/purchasing/ contracting practices

IC + clients and suppliers

Market presence

Society

IC + clients and suppliers

Environmental management

IC + clients and suppliers

Stakeholder Engagement

Environmental materials

IC + clients and suppliers

In order to discover what our main stakeholders expect of the agency, we conduct routine monitoring and

BUSINESS EXPANSION

Despite considerable growth in the last five years, 2013 was challenging for the Brazilian corporate communications sector aimed at serving the private sector. We credit this tendency to market accommodation after years of significant growth and to the reduction itself in the level of expansion in Brazil, which led to fewer investments, especially affecting service providers, such as consulting firms and advisory bodies. DISTRIBUTION OF ADDED VALUE (DVA, IN PORTUGUESE) R$ 14.1 MILLION

24%

25%

26%

Dividends and returns on our own capital Operating costs Salaries and benefits Taxes

In 2013, we achieved revenues of R$ 14.1 million, a 7% increase over 2012. We closed the year, nonetheless, with a series of new projects scheduled to begin in the first quarter of 2014. We invested in new products and services, began operating in sectors in which we did not operate previously and expanded both the portfolio contracted by clients whose loyalty had already been earned and the geographical diversification (at both a national level, with clients in different regions, and an international level, working with companies and institutions in the USA, Belgium, United Kingdom, Luxemburg, Singapore, Malaysia and Argentina). For the coming years, the agencyâ&#x20AC;&#x2122;s global target is to continue growing by around 15% yearly. To do this, 16

we defined specific targets for each region and service type that take into consideration the evolution of each operating area in the last years, the market conditions for each product and the economic projections. We believe that sustainable growth can only be achieved through consistent planning. Thus, we established an investment policy that encompasses innovative solutions for handling the demands of this increasingly complex market; management; employee training; technology; and the expansion of our physical infrastructure. The evolution of our business over the years and the high client-retention rate demonstrate that this stance has been successful. As a means of maintaining a high quality level and protecting our operation from crises or sectoral decelerations, our strategy permits dealing with organizations from various segments, a premise that offers us the advantages of diversified operations and knowledge of different economic, regulatory, social and political variables. In order to guarantee the agencyâ&#x20AC;&#x2122;s financial health, we adopt profit targets for all of our contracts with clients. This was the result of a process promoted by a consulting firm specializing in management (Cosin Consulting) that developed our system of planning, financial operation and profit calculation, which considers the EBITDA margin a premise. Additionally, we sought to diversify our services and products. In 2013, we formed partnerships to bring innovative technologies to Brazil, such as MyNewsDesk, an unprecedented media-room service developed by a Swedish company. The system is based on a robust digital platform, facilitating the lives of companies, journalists and other publics. This occurs because they place all of their publicity material on this platform, without volume limits, and people that are registered automatically receive alerts every time new information is added. In addition to these conveniences, communications are speedy, which is essential today. In order to better understand market tendencies and become acquainted with global practices, in 2013 we contracted an international consulting firm with expertise in the communications sector, Lansons

IC Management System

Communications. The survey they produced aided our planning for 2014-2017. In relation to technology, 2013 was the year in which we sought to increase our efficiency and operating agility. We began using Google cloud solutions, both for email exchange services and for servers that store the information produced by the agency. We also entered the final development phase of our Management System, which will encompass all the agency’s processes and activities. As of the second quarter of 2014, we will begin to conduct our internal routine and customer service via this network. With this, we will be able to increase our agility, take better

advantage of the synergies between teams, improve the way of organizing all our materials and rapidly present results in various ways. Clients will also enjoy remote access to the content produced by the agency in its day-to-day routine of services. Furthermore, our financial and administrative department began developing an ERP system by which it will be possible to integrate financial operations, accounting activities and commercial relations with suppliers and clients. This technology will also provide tax support, producing – in a more practical and simple manner – reports and information required by Brazil’s Federal Revenue Service. 17

MAIN STAKEHOLDERS

EMPLOYEES In our business, employees are the chief asset and competitive edge. The work performed daily by our teams is undoubtedly the substantive content most relevant to the agencyâ&#x20AC;&#x2122;s sustainability. Hence, in recent years, Imagem Corporativa has been improving its personnel management practices and today boasts various initiatives in this area, including a training program, a performance evaluation system and an individual development plan. In 2013, our training courses included all job levels and totaled 6,186 hours, a 79% increase over 2012, representing 69 hours per person.

IC Panel gathers together employees from all three offices

In March 2014, we reached a total of 90 employees (11 partners and 79 employees, 9 from our administrative department and 81 engaged in Public Relations activities).

TEAM PROFILE

100%

77% Women

of our managers are from metropolitan regions in which the agency operates

FEMALE LEADERS

ALL OUR PROFESSIONALS, EXCLUDING PARTNERS AND TRAINEES, ARE COVERED BY

COLLECTIVE AGREEMENTS

PROFESSIONALS ON MATERNITY LEAVE

RETURN IN 2014

MALE LEADERS

SALARY:

WOMEN ENJOY AVERAGE SALARIES

0,9%

GREATER THAN THOSE OF MEN

GOVERNANCE STRUCTURE CHIEF EXECUTIVE OFFICER (PARTNER) DIRECTORS (PARTNERS) COORDINATORS/ADMINISTRATIVE AND FINANCIAL MANAGER (PARTNERS AND NON-PARTNERS) ANALYSTS I, II AND III ASSISTANTS TRAINEES

Evaluation and Meritocracy For seven years, all of Imagem Corporativa’s employees have participated in an evaluation program developed by a personnel-management consulting firm that, in partnership with the agency’s director, established a system that appraises the technical and behavioral skills required for the company’s job positions or operational levels. These professionals conduct a self-evaluation. They are also assessed by their managers. The results are compared at meetings where Individual Development Plans are drawn up. Such plans promote employee growth, and they are implemented via courses, processes and new behavioral attitudes that can help improve our employees’ work.

360° system, which means that the professionals are evaluated by their direct superiors, by their peers and by their team, in addition to their self-evaluation.

Great Place to Work In 2013, our executives participated in a training course given by the consulting firm Great Place to Work. The course focused on improving our work environment and strengthening the agency’s ties with its employees. Additionally, the consulting firm surveyed all of IC’s professionals to gauge the internal climate and identify opportunities for improvement in

The system also serves as a management tool since it generates scores and ranks employees according to their professional levels and opportunities for improvement. This evaluation process is our main instrument for defining promotions and salary increases. At the end of each year, the agency’s executives meet in plenary session to analyze the whole staff and, based on meritocratic criteria, decide which talented professionals are prepared to face new challenges. The agency’s coordinators and directors (including the CEO) also participate in this process – however, via the

Great Place to Work’s training course for executives

Benefits Imagem Corporativa’s contracting system follows the CLT (the Brazilian labor and employment law), guaranteeing that our professionals receive the benefits of this system, as well as health and group life insurance plans. Our directors and part of the coordinators are the company’s partners. Because we adopted these practices, there was only one labor suit during the entire year, which was resolved via court settlement.

Journalist Mílton Jung administered an Internal Training Program class

Investments in Training With the aim of preparing our professionals for the growing challenges of the communications area, Imagem Corporativa possesses a structured training program with rules that are defined in our Personnel Management Policy. This area of action includes our Internal Training Program (PIC, in Portuguese), which involves themes related to our day-to-day PR routine. It is given by employees and outside guests. It also encompasses foreign language courses, specialization courses, postgraduate programs and training in the Public Relations field conducted by external institutions, in addition to the overseas exchange program for agencies that are part of PROI Worldwide. In 2013, we invested R$ 85,700 in training.

It is Imagem Corporativa’s policy to recognize the outstanding efforts of its professionals, independent of their position or function. Generating new business for the company always results in compensation for employees, whether financially or through promotions to new job challenges. These practices and policies also aim at reducing the agency’s turnover rate, which registered a 4% monthly average in 2013. This high rate reflects the dynamism of the sector, which is characterized by increased turnover due to the growing supply of opportunities.

Exchange Program As a policy of recognizing and investing in its talented professionals, since 2009 Imagem Corporativa has conducted an Exchange Program with overseas Public Relations agencies that are part of PROI Worldwide, a network of independent agencies, of which Imagem Corporativa is a member. In this program, employees are chosen to spend time with one of our partner agencies. In 2013, Caroline Matricardi, one of our press relations department employees, worked for one month with colleagues at Adfactors PR, in India. In previous years, our professionals participated in exchange programs with agencies in the United Kingdom, China, Chile, the USA and Germany.

Employee Caroline Matricardi during the Exchange Program in India

Hiring and Remuneration System The agency contracts professionals according to criteria of both a technical nature (based on administering tests with questions related to the PR field) and a behavioral nature, through interviews that enable us to understand whether the candidate’s profile is in line with the client’s needs. This assessment is entirely focused on skills, since our internal Code of Conduct repudiates and punishes all forms of discrimination, independent of the hierarchical level. The hiring process is conducted by our personnel management department. As of the first quarter of 2014, in addition to the team responsible for the new position, it began to involve representatives from other boards. The objective is to more amply ascertain the alignment of the candidate’s profile with IC’s values.

introducing new employees; and the IC Mural, a biweekly news board, with diversified coverage, whose purpose is to highlight information disseminated by our executive boards and HR department, in addition to contributing to the exchange of knowledge among our employees. In 2013, we created IC Morning, an initiative that is part of our program of employee integration projects. IC Morning meetings are an opportunity for new employees to share their experiences with the agency’s president. The campaigns we conducted in 2013 included dissemination of the Great Place to Work climate survey and the Social Responsibility Committee’s initiatives, such as IC Pink Day (to raise awareness concerning breast cancer), Children’s Day and Christmas activities, as well as special commemorations such as June Fest, Christmas and Women’s Day.

Currently, the salaries of the women that work for the agency is very similar to that of the men: the women receive an average monthly income that is 0.9% higher than that of the men.

Internal Communications In 2009, Imagem Corporativa created the Internal Communications Committee, which is made up of the employees themselves and conducts the management of the agency’s internal channels, organizes internal events and campaigns, and disseminates the IC culture. The committee also serves as a forum for suggestions and ideas for initiatives involving interaction with employees, as well as being a strong ally of the personnel management department in the dissemination of programs. This committee uses the following instruments as tools: ICNews, an electronic bulletin board for displaying messages and

Breakfast for new employees with the company’s CEO

CLIENTS In 2013, Imagem Corporativa increased its client portfolio by 20%. We finished the year with 48 fixed clients that contract our services of press and Public Relations; scenario analysis and monitoring; identification of potential risks and crisis prevention; and advisory services related to the management of communications, internal communications, social media, and public affairs.

2013:

In addition to evaluating clients, our partners and coordinators’ involvement in the agency’s day-to-day work routine aims at guaranteeing that our teams consider the agency a consulting firm of excellence in Communications and Reputation. Consequently, our work is never limited to local initiatives, of an operational nature. Our commitment to each client is to help indicate the best paths to follow, promote relationships and achieve positive results for the company itself and its employees, shareholders and the stakeholders in general with which it interacts.

INCREASE IN THE NUMBER OF CLIENTS

In order to achieve these objectives, items such as common sense, an analytical viewpoint, consideration of the future and processes, planning, responsibility, a sense of urgency, attention, constant focus and refined methods are essential and indispensable to our selection processes.

FIXED

clients

20%

We also work with specific projects (jobs) and, in this manner, we work alongside dozens of companies, providing training in communications, Public Relations, crisis management, analyses and strategic consulting. In its 13 years of operations, Imagem Corporativa has constructed a portfolio of clients that hold leading positions in their segments and seek to employ PR as an important tool for generating business and managing and constructing their reputation. The agency has already provided services to Brazilian and foreign companies in the most important markets: finance, steel, mining, foods, beverages, aviation, technology, audits and consulting, health, automobile, defense, energy, infrastructure, farming and livestock, hygiene and beauty, luxury items, tourism and others. In order to guarantee the quality of the services we provide, we (together with all of our clients) adopted a system of monthly, semi-annual and annual targets.

These targets are negotiated with our teams and are part of our internal evaluation process. We also hold regular meetings with the interfaces of our clients and service teams, moments in which evaluations of the agency’s performance are made.

As part of our policy of transparency in our relationships, we distribute our Code of Conduct and Policies to all our clients. These documents describe our principles and the conduct and attitudes we expect of our clients. Throughout the agency’s history, we have already avoided jobs that were not in line with our principles and have relinquished participation in bidding processes that, directly or indirectly, could represent conflicts of interest to our clients or risks to Imagem Corporativa’s reputation and modus operandi. We also seek to generate knowledge for our clients, an activity that is not limited by the ordinary scope of our services. Accordingly, we produce a series of articles that are distributed for free via social media, electronic newsletters and printed publications. Additionally, we promote training events and opportunities, such as the first two editions of our workshop on communications and sustainability that were held in March and May at BM&FBOVESPA (more information is available in the chapter on Social and Environmental Responsibility).

Ciro Dias Reis, the agencyâ&#x20AC;&#x2122;s CEO, talked about PR at BM&F BOVESPA

PRESS AND OPINION MAKERS As a Public Relations agency, Imagem Corporativa mainly conducts activities that include the representation of its clients and the establishment of relationships with diverse stakeholders, especially journalists and other opinion makers. Furthermore, government representatives, regulatory agencies and outstanding professionals in specific fields are also part of our relationship chart. Since conduct is an item of extreme importance to the agency’s business, our Code of Conduct presents several precepts that are essential to establishing healthy relationships with these stakeholders. The agency’s responsibilities with respect to journalists and social media agents are the following: • Comprehend and respect the work of the press, aiming at maintaining a positive relationship • Use the truth as the primary basis for one’s work • Seek harmony between the communications demands of our clients and the interests of journalists, social media agents and other opinion makers • Point out, to anyone who has the need to know, the existence of incorrect and/or false information • Act responsibly when using information under one’s control, aiming at being honest in one’s disclosures • Constantly pursue excellence in one’s services, implementing improvement processes that result in gains for the publics that receive the information the agency deals with In order to guarantee these principles, the agency’s coordinators and directors monitor the company’s services daily: a minimum of 50% of all the content produced and distributed and at least half of the contacts made with our stakeholders. Additionally,

in April 2013 we conducted a specific training course concerning work ethics and corporate responsibility that involved all of the agency’s professionals. It was given by Glaucia Terreo, director of the GRI in Brazil. Furthermore, our public affairs policy serves as a guideline for our relationships with government institutions and agencies, stakeholders that are especially important to our Brasília office. The main activities we conduct in the nation’s capital include scheduling meetings between our clients and representatives from the Executive and Legislative branches of government and institutions, producing papers and presentations for our meetings, mapping stakeholders and elaborating scenario analyses. We do not make political donations. Our commitments with respect to public affairs are the following: • Act correctly in relation to all representatives from the public sphere, maintaining an ethical, objective and transparent relationship • Always furnish unbiased, true information so that public authorities receive knowledge of all aspects of an issue when making decisions • Offer no type of financial or other advantage in exchange for favors of any kind • Do not serve as a channel for illegal, immoral and/or unethical negotiations • Work against all forms of corruption, including extortion and bribery (as defined by Principle 10 of the Global Compact of the United Nations Organization) • Immediately report (or encourage reporting via responsible channels) all violations of current legislation in Brazil, when known by the agency

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

At Imagem Corporativa, we believe social responsibility and community relations are essential to the agency’s sustainability. Accordingly, we follow a policy of working in this area and we implement various initiatives, by way of the IC Corporate Social Responsibility Committee. In 2013, the committee made progress with projects in its three main areas (listed below), fulfilling its policy of social responsibility, which calls for a focus on education and young people. • Training: training in communications concepts aimed at selected institutions • In-house: initiatives related to environmental responsibility and sustainability within the company • Social programs: social initiatives in partnership with an NGO from the educational field IC Corporate Social Responsibility is made up of both a supervisor appointed by the agency’s board of directors and employee volunteers. Its composition is renewed annually. The group meets regularly to plan the agency’s activities in the area of corporate social responsibility. Accordingly, volunteers create initiatives, identify the NGOs to be supported, conduct training, and participate in collective efforts, among other activities. All social responsibility initiatives suggested during committee meetings are approved by the agency’s board of directors. The outstanding initiatives conducted in 2013 in each area are described below:

TRAINING Center for the Education of Children and Adolescents (Ceca) Located in Embu das Artes, São Paulo, the Ceca functions as a shelter for children that suffer from domestic violence. Directed by Dr. Alberto Frisoli Junior, a physician at the Albert Einstein Hospital, the NGO is currently undergoing a restructuring and expansion process that will be completed in 2016. With this expansion, the Ceca will also open a center for training young professionals and rehabilitating people with reduced mobility, as well as caring for the elderly. Currently, the NGO’s main challenge is to raise funds for financing the construction of the expansion, which will give shape to the “New Ceca.” By way of meetings with the institution’s board of directors, the IC Corporate Social Resposibility Committee provided the NGO with advisory services in the area of communications. A new institutional positioning and a plan of action to contribute to raising funds and establishing relationships with potential investors and donators were developed jointly. The planning was drawn up in an all-inclusive manner. It thus involves scenario assessment, target definition, key messages, strategies, fundraising tools, and initiatives for communicating and establishing relationships with stakeholders. Additionally, the committee presented suggestions for improvements to the Ceca website. The planning is being conducted by the NGO’s team, which is enjoying Imagem Corporativa’s support as an adviser concerning the operating strategy and the development of communications tools and materials.

Training in Organizational Communications for NGOs

Meeting of IC CSR Committee

With the aim of benefitting NGOs with operations that are relevant to our stakeholders, the IC Social Committee gave a training

people in socially vulnerable situations.

Training program for NGOs at the agency’s main office

course for institutions that were recommended by our clients. Lasting 4 hours and given free of charge at the agency’s main office, the course provided 12 NGO representatives with training in communications tools capable of boosting these groups’ performance in stakeholder relations and in the dissemination of their projects. IC executives and professionals participated in the training course, which included institutional communications talks, sharing of experiences, and practical exercises. Two groups from NGOs recommended by Imagem Corporativa’s clients were trained. The agency classified the groups based on a survey of the institutions’ levels of experience in the communications field. The course included everything from basic concepts of organizational communications to specific tools and instrumentation related to issues such as press relations, internal communications and social media.

IN-HOUSE

In 2013, another important initiative involved monitoring the disposal of waste produced by the agency. Currently, we promote selective waste collection and dispose of recyclable waste together with other companies that share the same building. The material is collected and stored until being removed by a specialized company, which provides for the separation and proper removal of all the waste produced. With respect to natural resource consumption, we made advances that were proposed in 2012. Our São Paulo office’s current energy consumption (875 MWh) is 10% less than it was in 2012. In addition to people’s contributions, this result was achieved by way of several simple internal changes, such as redistributing the energy framework, substituting common light bulbs for economical ones, exchanging CRT monitors for LED versions (which consume less electricity) and segmenting the lighting of our facilities. In relation to carbon emissions, there are no significant impacts; however, the agency encourages holding virtual conferences and meetings with clients and suppliers as a way of reducing environmental damage caused by commuting and business trips. Just as in October 2012, we once again conducted our Pink October campaign to alert employees as to the importance of the early detection of breast cancer. On IC Pink Day, our employees wore pink clothing and accessories for a photo taken at the heliport of the building in which the agency’s main office is located, in São Paulo.

This action front reflects the belief that our sustainability initiatives must begin internally. Accordingly, the IC Corporate Social Resposibility Committee is dedicated to mapping and planning internal engagement programs and activities related to economizing resources. Ever since it was founded, the agency has been donating electronic equipment, furniture and magazines to a educational organization known as Instituto Reciclar. This NGO’s mission is to provide educational and learning opportunities for young

Pink October at Imagem Corporativa

SOCIAL ACTION In 2013, adhering to the agency’s social responsibility policy, the IC Corporate Social Resposibility Committee implemented various initiatives to benefit the youths at the, which is near the agency’s main office in São Paulo and develops projects focused on education for children and youths in socially vulnerable situations. On Labor Day, we received the adolescents from the Odila Franco Home, the Foundation’s home for minors removed from family life, and we promoted activities related to education and professional perspectives. In addition to taking part in a talk with the agency’s managers, the youths participated in recreational and educational activities and became acquainted with the agency’s structure, including its studio, where they recorded testimonials on video. Furthermore, during the second semester, in commemoration of Children’s Day, we received all of the minors from the home for a second visit to our facilities. The program included activities such as workshops and educational games, as well as a presentation of the video testimonials recorded in May and distribution of learning-related presents. The funds for implementing these initiatives came from donations made by employees and the agency, which doubled its financial contributions. In addition to the IC Corporate Social Resposibility Committee’s programs, Imagem Corporativa has other corporate responsibility initiatives, such as follows: IC Corporate Social Resposibility Committee PR Since 2009, IC has been performing pro bono work for the Global Reporting Initiative (GRI), such as the nongovernmental organization’s press relations services in Brazil. GRI is responsible for the world’s main guidelines relating to the preparation of sustainability reports. In 2013, we also began to operate a pro bono system for analyzing and monitoring the companies listed on the BM&FBOVESPA Corporate Sustainability Index (ISE, in Portuguese). This system was developed in partnership

with the BM&FBOVESPA and the Getulio Vargas Foundation Sustainability Research Center (GVCes). Another organization that we backed in this area is Junior Achievement, a global NGO that works with education for entrepreneurs. In 2013, we conducted communications planning, in addition to making press releases and producing content for the institution’s social media channels.

Global Compact Since 2011, Imagem Corporativa has been a signatory to the Global Compact, a United Nations Organization (UN) initiative focused on the business community. The companies that sign this document promise to conform (in their businesses) to practices related to human rights, labor relations, the environment and anticorruption – practices that are expressed through ten principles. Compliance with these principles is guaranteed by our internal codes, which are followed by the company and its employees. These principles cover the four main themes of the Global Compact.

Distribution of Content Imagem Corporativa produces a large amount of free content for its clients, contacts and opinion makers. These materials provide information for thousands of people, since they are shared with the press and reproduced periodically on communications channels. The content is aimed at transmitting concepts related to sustainability, ethics and corporate governance, among other topics, and is produced in an impartial manner, without bias. Additionally, the production of such content involves many of the agency’s professionals. By itself, Boletim Brasil (the main publication we distributed in 2013) involved 26 people in the reading and analyzing of 15 international publications daily.

GRI AND GLOBAL COMPACT INDICATORS G4 INDEX Item

Description

GLOBAL COMPACT Engagement Level

LOCATION Chapter

Pages

PERFIL STRATEGY & ANALYSIS G4-1

Declaration made by the organization’s chief executive officer concerning the relevance of sustainability to the organization and its strategy

Declaration of endorsement of the initiative, made by the highest executive

CEO’s Message

ORGANIZATIONAL PROFILE G4-3

Name of the organization

Imagem Corporativa Profile

G4-4

Main brands, products and/or services

Imagem Corporativa Profile

G4-5

Location of the organization’s main office

Imagem Corporativa Profile

G4-6

Geographical scope

Imagem Corporativa Profile

G4-7

Type and legal nature of the property

Corporate Governance

G4-8

Markets served

Business Expansion

G4-9

Size of the organization

Imagem Corporativa Profile

G4-10

Employees

Main Stakeholders – Employees

G4-11

Employees covered by collective agreements

Main Stakeholders – Employees

G4-12

Value chain

Corporate Governance

G4-13

Principal changes

The Report; 2013 Highlights; Business Expansion

3, 6, 7, 16 & 17

G4-14

Risk prevention

Corporate Governance; Business Expansion

12, 13, 16 & 17

G4-15

Charters and principles endorsed

Reference made to the Global Compact and examples of initiatives developed

CEO’s Message; Imagem Corporativa Profile; Corporate Governance; Social and Environmental Responsibility

4, 5, 9, 12, 13 & 32

G4-16

Commitments

Imagem Corporativa Profile

DEFINITION OF MATERIALITY G4-17

Entities included in financial statements

Corporate Governance

G4-18

Process for defining content

The Report

G4-19

Material aspects

The Report; Corporate Governance

G4-20

Limit of the aspects (within the organization)

Corporate Governance

G4-21

Limit of the aspects (outside the organization)

Corporate Governance

G4-22

Accuracy of the information

Not applicable

G4-23

Changes in the period reported

Not applicable

3 &13

STAKEHOLDER ENGAGEMENT G4-24

List of stakeholders

Corporate Governance

G4-25

Identification and prioritization of stakeholders

Corporate Governance

G4-26

Approach to stakeholder engagement

The Report; Corporate Governance

3 &13

G4-27

Principal issues, concerns and solutions (for each stakeholder)

Sharing the principles with clients, employees and suppliers

Main Stakeholders

20-32

PROFILE OF THE REPORT

G4-28

Period covered

The Report

G4-29

Previous report date

The Report

G4-30

Report cycle

The Report

G4-31

Contact information

Credits

G4-32

Reporting options

The Report

G4-33

External Assurance

Not applicable

GOVERNANCE

G4-34

Corporate Governance

Corporate Governance; Main Stakeholders – Press and Opinion Makers

Governance structure

ETHICS & INTEGRITY G4-56

Values, principles, norms and standards of conduct

12 12 & 26

PERFORMANCE INDICATORS FINANCIAL PERFORMANCE

G4-EC1

Business Expansion

ENVIRONMENTAL – ENERGY

G4-EN3

Energy consumption within the organization

Principle 8

Social and Environmental Responsibility

G4-EN6

Energy consumption reductions

Principles 7, 8 and 9

Social and Environmental Responsibility

EMPLOYMENT PRACTICES

G4-LA1

Number of admissions and turnover rate

Main Stakeholders – Employees

G4-LA2

Benefits

Main Stakeholders – Employees

20 to 23

G4-LA3

Return after maternity leave

Main Stakeholders – Employees

G4-LA9

Average training hours per employee

Main Stakeholders – Employees

G4-LA12

Governance structure and list of employees by category, according to gender, age group, minority group and other diversity indicators

Principle 1

Main Stakeholders – Employees

G4-LA13

Base-salary difference between men and women

Principles 1 and 6

Main Stakeholders – Employees

G4-LA16

Number of complaints related to employment practices

Main Stakeholders – Employees

Direct monetary value produced and distributed

HUMAN RIGHTS

G4-HR2

Hours of training in human rights or human rights-related processes relevant to our operations

Corporate Governance; Main Stakeholders – Press and Opinion Makers

G4-HR3

Total number of cases of discrimination; measures taken

Principles 1, 2 and 6

Corporate Governance

SOCIETY

13 & 26 13

G4-SO1

Operations with programs implemented to engage the community; evaluations of impact and progress

Social and Environmental Responsibility

G4-SO6

Political donations

Principles 1 and 10

Main Stakeholders – Press and Opinion Makers

Corporate Governance

13 22

SECTORAL – MEDIA

Methodology for gauging compliance and monitoring the values created by the content disseminated

Initiatives to improve adherence to the production of content and the results obtained

Main Stakeholders – Employees

Methods for interacting with stakeholders and the results obtained

Main Stakeholders

M7 34

Measures taken to empower stakeholders

Social and Environmental Responsibility

30 to 32

20-32 30

Text: Danilo Maeda Editing: Fernanda Arimura Coordination: Danilo Maeda and Fernanda Arimura Proofreading: Regina Pereira Graphic Design: Alexandra Marchesini Photos: Arquivo Imagem Corporativa and Victor Marchesini Printing: Arvato Print The Imagem Corporativa Sustainability Report was printed on 240 g/m2 (cover and back) and 150 g/m2 (main body) Offset Chambril International Paper, both of which are FSC-certified. More information concerning this report can be obtained from the team involved in its production. Send an email to: relatoriosustentabilidade@imagemcorporativa.com.br 35

Imagem Corporativa | São Paulo Av. Angélica, 2.530 - 19º andar - Consolação CEP: 01228-200 - São Paulo - SP Telephone: 55 11 3526-4500

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