The Global Compact

“ Pranda Group of Companies ” was founded in 1973 initially as Pranda Design Company Limited to operate and export its own uniquely-designed jewelry mainly to European market and in the subsequent period to the United States. Thanks to rapid expansion and market growth, the Company expanded its business operation and set up its own factory to accommodate rising demands and was later renamed to Pranda Jewelry Limited in 1984 and listed in the Stock Exchange of on July 1,

1990. Pranda Jewelry Public Company Limited

Trade Partners Employees

The Group’s business accomplishment stems truly from the management’s far seeing strategic policies and visions which are based on ensuring responsibility and accountability for all stakeholders, be it shareholders, employees, trade partners, competitors, related institutions, government units, and neighboring communities with the steadfast belief that accountability to all stakeholders will directly benefit not only the Company, but most of all, our Customers’ who will gain from quality products and swift services.

The Pranda Group was one of the first companies in Thailand to sign up to the United Nations Global Compact which aims to strengthen cooperation between global corporations, internal units of the United Nations, organizations, public sector and the government sector to promote environmental protection, human rights, labor standards, and anti-corruption. Participation in the United Nations Global Compact program is a cornerstone of Corporate Social Responsibility which gives guidance to Corporations to run their businesses on an accountable and responsible basis both to society and the environment. The Group treats this responsibility as an indispensable principle for sustainable growth of gems and jewelry industry as a whole.

The Global Compact

The Pranda Group is committed not only to running the business in accordance with the Global Compact but also promoting the values of human rights, employment standards, environmental impact, and business ethics under a management philosophy based on honesty, righteousness integrity, shareholder benefits, efficiency, effectiveness, social responsibility, governing regulations and good corporate management. The Group has always realized the importance of responsibility for all stakeholders in society both in terms of environmental protection and safety and prosperity of community and the country. Mr. Prida, was the guest speaker at the Asia Pacific Business Forum.

***To Promote and Campaign to Build a Good Sense of Social Responsibility***

The Company has also joined in campaigns dedicated to royal charities to encourage management and employees to apply the principles of Sufficiency Economy initiated by His Majesty the King into practices both in working and daily life for the benefit of happiness and peace of the Kingdom.

Mrs.Prapee Sorakraikitikul, President of Pranda Jewelry Plc. receives award from Mr. Palakorn Suwanarath, the Privy Councilor for participating in a work performance competition under the “Philosophy of Sufficiency Economy’’ for large- scaled enterprises which run their business according to the Sufficiency Economy Philosophy organized by the Office of the Royal Development Projects Board of the Prime Minister’s Office.

The Global Compact

***Sufficiency Economy and Business Management of Pranda Jewelry Plc.*** • Moderation The Company has applied the principle of moderation in determining marketing policy, producing high quality products at moderate prices without stimulating excessive consumption and demand of customers. • Reasonableness The Company is fully aware of and well understands what particular markets demand and its own capability and competence, hence concentrating on the middle-end market as the company’s target to match its core competence and production strategy. • Self-Immunity Pranda Group accepts the need to be flexible and is poised to cope with changes by ;- 1.) Determining a clear marketing strategy to curb any possible impact from volatile economic conditions which may arise in certain countries.

2.) Expanding into markets worldwide to diversify risks and to avoid dependence on any particular markets by being committed not to selling more than 30% of the product portfolio to any particular market.

3.) Continuing expanding new markets such as Germany, Eastern European countries, and India. Exploring new appropriate production bases and ensuring that the quality of the products matches the purchase values of customers in the best bid to create maximum satisfaction to customers in each market.

- Knowledge The Company continually supports learning and development of its employees within the organization in jewelry production as well as strengthening their knowledge and understanding of product development.

- Virtues The Company has set the same pricing standards by making and distributing the quality products at appropriate prices as well as protecting environmental conditions in neighboring communities.

- Equilibrium and Sustainability The Company maintains a perfect balance or equilibrium on solid foundations as follows:-

The Global Compact

1. Design and Product Development Base of over 250 staff. Consisting of a highly skilled and creative designer team and world-class skilled model makers who are in charge of developing product designs for many of the world’s leading brands as well as the Company’s own brands.

Design and Product Development Building Designer

2. Production Base The Pranda Group of Companies have extensive and efficient jewelry production facilities which achieve economies of scale, bringing as a result appropriate production cost with product quality. The Company has also well diversified its production risks by setting up seven production facilities in four countries including Thailand, Indonesia, Vietnam and China with production capacity of over 8.23 million pieces a year to cover a wide range of product price points.

Thailand Indonesia Vietnam China

3. Distribution Bases The Group currently operates distribution and sales facilities not only in Thailand but also overseas markets to diversify marketing risks and expand the Group’s market base. Existing distribution bases now cover key regions around the world :- the United States, the United Kingdom, Germany, France, Italy, Spain, Indonesia, Japan, China, Vietnam, India and Thailand. Distribution channels include distributors, retailers, own-retail shops, and a retail franchising operation for the high end product.

The Global Compact

Pranda & Kroll GmbH & Co.KG (German Pranda Jewelry Private Limited(India) Pranda North America Inc. (USA)

4. Retail Base The Company operates a high end retail network ( wholly owned or Franchised ) through 200 outlets which are located in prime business areas and shopping centers worldwide from the Middle East to Asia Pacific region.

Pranda Vietnam Co.,Ltd. Pranda Guangzhou Co.,Ltd. PT Pranda SCL Indonesia PT Gold Martindo (Indonesia)

***Promotion and Campaign for sense of Social Accountabilities*** The Group has also encouraged all employees to jointly celebrate the 60th anniversary of His Majesty the King’s accession to the throne to show determination to do a good deed and wear a yellow T-shirt with the royal emblem. In addition, the Company has jointly organized activities within the Celebrations on the Auspicious Occasion of His Majesty the King’s 80th Birthday Anniversary. In order to promote and encourage Thai people as well as entrepreneurs to know how to sensibly purchase, sell, use and consume, the Company has jointly supported activities held by the Consumer Protection Board and Foundation for Consumers to explore for substantiated ways to protect customers.

Celebration on the Auspicious Occasion of His Majesty the King’s 80th Birthday To participate in the fund raising activities for the consumer protection institutes

The Global Compact

The Group together with employees has as well participated in blood donation campaigns on regular basis for every three months to the Thai Red Cross Society since 1991 as well as donating money and survival kits to the needy compatriots who suffer from crisis on different occasions such as the flood victims in many provinces and to contribute financial assistance through the Thai Gem and Jewelry Business Traders Association and the Thai Red Cross Society to cyclone Nagis victims in Burma. Blood Donation

*** To Promote the Social Venture Network (SVN)*** Pranda Group of Companies are members of the Social Venture Network (SVN), a global network of entrepreneurs who can exchange experiences and connect business leaders who share similar visions in business administration aiming to transform the way the world does business without hurting society and environment. The commitment of SVN is also to promote and support developing business consciousness which eventually results in the increased respect to society, the environment, the legitimate rights of the community and fair business activities for all parties. The network also understands that a disparity of existing resources, opportunities and potentials exists, and encourages each organization to grow their businesses with sustainable growth , responsibility, and business consciousness which eventually leads to increased respect to environments, the rights of community and society and care to the beautiful Mother Nature for our future next generations.

*** Life Quality Development in Pranda Group *** The Group has always recognized the importance of treating all employees as invaluable resources to the organization’s business achievement and actively promotes policies to providing education and welfare facilities at the place of work.These include medical services, a nursery center for employees’ children, food ,employee’s uniforms, annual health checks, social security, a provident fund, a savings co-operative set up for employees, a mailing services to employee’s families who live in the provinces and lodging services and other conveniences such as sports club, library and sports centers.

Labor Minister’s Visit Pranda funded Nursery Savings Co-operatives Annual Health Checks

The Global Compact

The Company has developed sanitation and safety standards in the workplaces and provided training on safety and sanitation issues to the employees and in addition to safety in the working environment, Pranda has created “green “ areas around the buildings and factories which includes a small park, fountain, pond and trees to create freshness to employees,

Equality Supports In the best effort to achieve job-related standards, the Company has pursued a clear-cut policy and guidelines to prohibit child labor, any forms of forced labor or overtime and no requirements are made for employees to place any form of deposit or special documents to get their jobs. The Company has ensured equality in opportunities and practices and acknowledged the legitimate rights of all employees by encouraging welfare committees to be set up and to participate in discussions with management, to negotiate and take part in creative activities organized by the Company.

In 2007, the Company continued to hold a number of activities to promote quality of life and safety of employees.

These activities held every year include health and eye checks by certified practitioners from hospitals, training on basic fire prevention and protection, fire drills, and the “The Week of Safety and All together Energy Conservation Program” activity to encourage employees to realize the importance of, and to create a good sense of safety, sanitation and environment in the workplace. The Company also organizes other activities to promote skill development of workers and employees in different issues such as Workshop V-Fast, a program designed to promote cross-department teamwork in order to encourage those who are engaged in particular problems to draw on their inner potentials or hidden capacities of each to settle those problems.

Thai Labor Standards Pranda Jewelry Public Company Limited has also participated in the Thai Labor Standard (TLS 8001-2003) scheme of the Department of Labor Protection and Welfare, The Ministry of Labor and carried out upgrading standards for over the years since September, 2005 and thanks to the Company’s effective planning and thorough reporting, business systemization and close monitoring as well as cooperation , sacrifice and dedication from all parties , the Company won the Thai Labor Standard (TLS 8001-2003) Certification for the Completion Level. The Thai Labor Standard (TLS 8001-2003) Certification for the Completion Level well reflects how the company pays special care to its employees and neighboring communities throughout its operations.

The Global Compact

Supports to the Youth Having acknowledged that education is the best foundation for the sustainable development of the underprivileged to create in them the self reliance to enable them to generate the well being of their family and overcome their poverty in the long run, the Company each year has allocated budget and resources to support education of those needy students. The Company has forged a partnership with the Golden Jubilee Royal Goldsmith College and the Arts and Crafts College to expand vocational education for the needy students in a “Bilateral Education Program” and in cooperation with the Non-Formal Education Department to offer occupational education opportunities to underprivileged children, enabling them to continue their studies on gems and jewelry at higher and advanced vocational certificate levels. The Company has operated the program continually for 8 years through cooperation with the Golden Jubilee Royal Goldsmith College and Schools for the Deaf to arrange and develop educational media about jewelry manufacturing profession to the deaf under the initiative of Her Royal Highness Princess Maha Chakri .

Bilateral Education Program

The Group has cooperated and co-sponsored activities of the “Art for All” Arts Camp held by University’s Faculty of Arts together with five partners and Primagold International Company Limited for disabled children, giving them an opportunity to learn and develop their artistic skills together with normal children.

Co-Sponsored Activities of the“Art for All”

The Global Compact

The Group has also teamed up with the Gems and Jewelry Institute of Thailand to support jewelry manufacturing skills as to develop the design capability of university students in Thailand Student Fashion Project Award 2007 scheme.” Pranda gave the contribution

Pranda Group of Companies through Primagold International Company Limited held a jewelry design contest under “BAJ 2007 Bangkok International Art and Jewelry Contest 2007’’ to develop the jewelry design capability of university students and the general public to vie for the trophy of HRH Princess Nariratana.

PRIMA GOLD held a jewelry design contest

It also organized activities under “Pranda Helps Brother” project, as well as constructing playgrounds and donating sports kits and educational tools to students of Tao Mor school in Chanthaburi province. It also donated educational equipment, stationary, souvenirs and gifts as well as snacks to children on The National Children Day to Pongployanusorn School, Sri-iamnusorn School, and Wat Bangna Nai School. Pranda has also allowed educational institutes and other private and public units to visit & observe the Company’s operation and factory as a way to provide additional knowledge to the youth and interested Donated sports kits and educational tools to students of Tao Mor school in Chanthaburi people.

Wat Bangna Nai School Bangna Police Station Wat Pongployanusorn School

The Global Compact

*** To Promote Good Relationship with Nearby Communities *** The Company has jointly sponsored community sport activities by contributing sports kits to Wanthong Community, Wat Pongploy Community and Rungsawang Community in a bid to underline good relationship between the Company and nearby communities and encourage their residents to make use of their leisure and stay away from drugs.

Rungsawang Community Wanthong Community

***Social Contribution Activities *** The Company has participated in the “All together energy conservation program held by the Energy Conservation Center of Thailand, the Department of Alternative Energy and Efficiency Development, and the Faculty of Engineering at .

“All together” energy conservation program

It has also cooperated with the Gem and Jewelry Institute of Thailand to establish the gem museum and to contribute gems, jewelry and samples of precious metals as well as equipment and apparatus used to make Jewelry and ornamental accessories as a valuable source to develop the knowledge of interested people.