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2020 Annual Ombudsman Report

Copyright Mars, Incorporated / Confidential. For Internal Use Only.

Independent Neutral Informal Confidential

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Contents

Ombudsman’s introduction 3

Why have an Ombudsman Program? 4

Meet the Ombudsman Team 5

COVID-19 6

Who do I call? An overview of the Mars channels for help 7

Focus on Inclusion and Diversity 9

Supporting Line Managers on their GLM journey 10

What else we’ve heard 10

2020 Ombudsman Contacts: At a Glance 11

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All of us have been impacted by the effects of the COVID-19 pandemic. From home to work, our personal lives and the business have been disrupted to an extent that most of us have never experienced before. The challenges presented have required an unparalleled response, and many of you have shared with us your pride and appreciation for the company’s actions and support – guided by The Five Principles and the Associate Concept. Unsurprisingly, we received many contacts on the topic of the pandemic throughout the year and will explore some of those themes later in this report.

The Ombudsman Team was not immune to the crisis, both personally and professionally, but we are proud to have stayed connected with many of you through the power of technology.

• Going virtual: Our normal in-person visits to offices, factories and hospitals were put on hold, as we all worked from home for most of the year. With thanks to the efforts of our friends in Digital Technologies, we were able to participate in many townhalls, Q&A sessions, team meetings and 1:1 connections with a total of more than 18,200 Associates.

• Developing updated e-learning and program brochure: While we were grounded, we completed the development of a brand-new Ombudsman e-learning and program brochure. This completes the refresh of all our materials, which you can access via our website.

• Launching the Ombudsman Helpline: Early in 2020, we launched the Ombudsman Helpline to the Mars Veterinary Health teams in the United States and Canada and later in the year to the rest of the North American business units. The service was extended to the rest of the world in January. Available 24/7/365 and in all languages, the Helpline web portal and phone lines operated by Navex Global provide yet another confidential way to connect with us at a time that suits you best. It’s like having a personal receptionist available at any time to pass on a message to your Regional Ombudsman, who will then connect with you to help resolve your concern.

Ombudsman’s introductionWelcome to our latest annual report for the Mars, Incorporated Ombudsman Program, providing you with a snapshot into 2020 – an extraordinary and unprecedented year.

3,035 Associates contacted us directly in 2020, representing an increase of 16% over 2019 and giving us confidence that the Ombudsman Program remains a valuable resource for Associates around the world.

If you have a work-related matter on your mind, why not reach out to your Regional Ombudsman? After all, “If you need to talk, we’re here to listen.”

Debby on behalf of Gabor, Isabel, Ish, Jutta, Lorraine, Sam and Willem

Debby Hyde Corporate Ombudsman

Mars, Incorporated

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Why have an Ombudsman Program?We understand it’s not always easy or possible to share your concerns or feelings using formal business channels.

The Ombudsman Program provides an alternative channel

if you want to speak “off the record” about a work-related

matter. We find that Associates contact us when they:

• Want to talk or vent about a concern

• Want confidentiality and an “off the record”

conversation

• Want to get a different perspective

• Need a safe sounding board to identify or evaluate

their options

• Do not know where to take their concerns or need to

get more information

• Want to clarify company policies, practices,

procedures or decisions

• Want to present new ideas to improve the business

We will work with you to determine how we can best support

you, given your specific situation.

What will the Ombudsman actually do?

We want to support you in any way we can, and we offer a

number of services that Associates have told us they value.

These are described in more detail on the right, and the graph

below shows how often Associates use each of the services.

How often do Associates use each of these services?

Information Only: You may want to talk through a situation or simply provide information to an Ombudsman. This might include being a sounding board to vent or express frustration, which often helps put a matter to rest or achieve personal closure. The Ombudsman are all very experienced Associates and can be a resource for a wide variety of information. They can be especially helpful on questions about the Mars Culture, the ways of working of the company and the history of Mars, for example.

Coaching: The Ombudsman can be your personal one-on-one coach offering guidance on a wide range of topics. For example, you can ask the Ombudsman to help coach you to resolve issues you might be having or help you work through career-related decisions. They can coach you through important discussions or meetings you are preparing for by having mock interviews or role playing. All this can be done in the strictest of confidence. The scope of how an Ombudsman can help you here is wide and we encourage you to talk to your Ombudsman to see how he/she might be able to assist.

Referrals: You might contact an Ombudsman because you are not sure where to go with a problem or want to discuss an issue prior to informing someone in a formal channel. They also provide guidance to you in seeking outside help or counseling, such as the Associate Assistance Program or other programs as needed.

Facilitation: If you explicitly request it, the Ombudsman can review a situation with a Line Manager, P&O or any other relevant parties to get a better understanding of your concerns. There is also the option of having the Ombudsman facilitate discussions between you and other relevant parties. In all cases, it is your choice on what you want to do, and whether or not you would like to remain anonymous during the facilitation process.

Mediation: The Ombudsman will facilitate a standard mediation process between the relevant parties, typically two to three Associates. The mediation process ensures that all parties have the opportunity to state what is most important to them, and then work with each party to determine possible solutions that meet as many needs of the parties involved as possible. In such cases, the Ombudsman does not take sides or make judgments; they will simply provide the framework for respectful, constructive conversations.

23%

Information Only

2019 2020

0%

10%

20%

30%

40%

50%

13%

19% 20%

<1% <1%

23%

12%

45% 44%

Coaching Referrals Facilitation Mediation

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When you want to talk, our Ombudsman Team is here to listen.

Our Ombudsman Team is located around the globe and

has resources available for you 24 hours a day. Our contact

information is available on the Mars Ombudsman website.

Your Ombudsman Team is committed to providing the

highest standards of support and is guided not just by

our Five Principles and Associate Concept, but also by the

exacting requirements of the International Ombudsman

Association (IOA) “Code of Ethics and Standards of Practice.”

Meet the Ombudsman Team

Reach out to begin taking advantage of our support!

Debby HydeCorporate Ombudsman Based in Plymouth, UK (PLY)Language Spoken: English

Ismail (Ish) BakiAmericas Ombudsman – MVH Based in Phoenix, AZ USA (PHX)Languages Spoken: English/Spanish/Arabic

Isabel CalderonAmericas OmbudsmanBased in Hackettstown, NJ USA (HKP)Languages Spoken: English/Spanish/Portonol

Gabor KocsendaCentral EU/META/South East Asia/ANZ Ombudsman Based in Dubai, UAE (EXD)Languages Spoken: English/Hungarian/Arabic

Willem KweensEuropean Ombudsman Based in Veghel, Netherlands (VEG)Languages Spoken: Dutch/English/German

Lorraine MedalAmericas Ombudsman Based in Miami, FL USA (MOC)Languages Spoken: Spanish/English

Jutta ReitmeierCentral EU/CIS Western EU OmbudsmanBased in Munich, Germany (WUN)Languages Spoken: English/German/Russian/French

Sam ZhouNorth Asia Ombudsman Based in Beijing, China (HUA)Languages Spoken: Mandarin/English

Here is what Associates say about their experience!

"Both the pace and efficiency of progress toward a satisfactory resolution of my issue accelerated significantly from the moment the Ombudsman intervened."

"I knew the Ombudsman Program existed, but didn't know how it worked. I am glad I contacted the Ombudsman, as I had nowhere else to go."

"It's very helpful to have someone to talk to and to help guide me on how to proceed with an issue."

"I am an advocate for the Ombudsman Program and recommend it to others when I know they are in need of advice."

"Sometimes it's not necessarily about action, but about understanding. If I hadn't had this conversation, it would have reduced my engagement with the company."

"I felt like the Ombudsman was advocating for the right

outcome."

We do appreciate your feedback, as it supports our effort to continuously improve the Ombudsman Program and to make it more relevant for your needs. Click here to provide your feedback about the Ombudsman Program.

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COVID-19

Last year, the global pandemic exerted a huge impact on our Associates and our business. While we’ve moved out of crisis mode, the topic continues to shape our days and our business, as well as our private lives. More than 10% of Ombudsman contacts during 2020 were related to COVID-19, with a mix of both questions and concerns, as well as Associates expressing their appreciation and gratitude for how leaders have been guided by our Five Principles in making decisions, and in caring about and supporting them.

The main topics brought to our attention were:

1. Remote Working and Management:

Safety of our Associates in hospitals, Supply, Sales and Retail

• Concerns about their personal safety and the safety of their families

• Associates working from home expressed their appreciation for their colleagues working at the frontline

For some Associates, their “working from home” reality created unforeseen difficulties

• Home schooling and childcare

• Multiple generations living together and the stress of eldercare

• Simply having the space in which to work comfortably; connectivity issues (lack of internet bandwidth)

Difficulty for some Associates and their Managers to find the right level of interaction

• Frequency of checking on work progress and delivering on objectives

• Making time for casual check-ins and demonstrating understanding for Associates and how they are coping

• Setting up casual team huddles to enable “off the cuff” colleague interactions

2. Pressure on Mental Health:

Unsurprisingly, we observed an increase in mental health-related contacts. While every situation was different, the Ombudsman was often able to suggest and/or refer Associates to external professional help and support via the now globally available Associate Assistance Program (AAP).

3. Future of our Workplaces:

Despite the great efforts to make virtual work as engaging as possible, many Associates were (and still are) impacted by and feel the loss of connectivity with their teams. For others, the greater flexibility provided by working at home raised the hope that this could continue even after the pandemic.

We know that the organization has embarked on a big project to design the future of our workplace and that the experience of the last year is being taken into consideration as the work develops.

“The Ombudsman gave me excellent insight into the Mars point of view and ways that I could help myself.” *

*Quote taken from 2020 Associate feedback to the Ombudsman Team.

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Who do I call? An overview of the Mars channels for help

At Mars we pride ourselves on creating a work environment where we can all feel valued, respected, safe and supported. From time to time, that may not be your experience. If that is ever the case, there are multiple channels that you can turn to for help and guidance.

For some, selecting the “right” channel for help can be a bit daunting. We also hear from Associates who are not sure who they should contact, for what reason and if there are any rules about when to call.

We’ve described in the table below who your first point of contact is for questions and concerns Mars Associates might have.

Not surprisingly, your first contact is often your Manager, who would know you and your situation best and can therefore give very targeted feedback and coaching.

If you have a question about policies and practices you might consider reaching out to MyP&O by calling them directly or searching through their web portal, which is available 24/7. This team is also the first point of contact should you wish to formally initiate a workplace concern.

For Associates working in the Mars Veterinary Health businesses and non-MyP&O markets:

Answers to questions about policies can be found on your company intranet. For workplace concerns, your Manager and P&O are also available as needed.

Your Associate Relations Manager (or local P&O Manager in non-MyP&O markets) is the specialist when it comes to performance-related matters and workplace issues and can be contacted at any point in the process.

And finally, the Ombudsman Team is always here for you as an alternative channel that is impartial, independent, informal and confidential.

Addressing Associate Concerns – Roles and Responsibilities

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In addition to the formal channels mentioned above, Mars offers an external, confidential Associate Assistance Program (AAP) to Associates across the globe. The AAPs support a range of Associate concerns, such as debt counseling and mental wellbeing. The table below helps distinguish when the Ombudsman or the AAP would be your first contact. But, ultimately, it’s your choice. Both are completely confidential, and you can choose to leverage various aspects of both services to suit your needs.

Now, you might still be unclear where to turn first, and that’s OK. You are always welcome to contact your Ombudsman, and we’ll refer you to the channel that will be able to support you best.

Ombudsman vs. Associate Assistance Program (AAP): Who does what?

“I appreciate the Ombudsman for letting me talk through my concerns and providing many options for me to consider. I really appreciated being able to talk

freely and without judgment.”*

*Quote taken from 2020 Associate feedback to the Ombudsman Team.

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Focus on Inclusion and Diversity

Last year we saw an increased focus on Inclusion and Diversity (I&D). Not just inside the company, but also in the communities we are part of. As discussions around I&D gained momentum, so did the number of contacts to the Ombudsman, with many Associates sharing their thoughts and feelings on sometimes emotionally sensitive topics.

As you can imagine, within our globally diverse organization there were almost as many points of view shared with us as Associates contacting us. For some it was simply a relief to be able to share their personal experiences as part of a minority group and have the opportunity for their voices to be heard. For others, it was a chance to learn what resources are available to help them better understand the issues, while for some, we provided a safe place to vent their frustrations.

In September, the global I&D Strategy was announced. In November, the company launched its first ever I&D Week with the ambition to engage both the heads and hearts of Associates to build a more inclusive and diverse Mars, and we were all invited to join in the discussions.

• If you missed I&D Week, you can find all the materials here

• If you want to learn more, access the Mars U I&D learning pathway

• If you have questions or ideas, the I&D team led by Ibtehal Fathy would love to hear from you

• If you want to join in, connect with one of our many Associate Resource Groups (ARGs) listed here

When talking with the Ombudsman you can feel free to share your opinions – we are always confidential and impartial.

Examples of issues the Ombudsman talked about with Associates:

• Addressing personal experiences of discrimination

• How to address discrimination happening to others

• Seeking support and resources for respectfully engaging others in discussions about topics like Black Lives Matter, LGBTQ+, gender, ethnicity and culture, etc.

• Raising objections to the topics due to personal beliefs and values

The world we want tomorrow starts with how we do business today. And in the world we want tomorrow, society is inclusive.

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Supporting Line Managers on their GLM journey

The Ombudsman Team provides a range of complementary services to support all Mars Associates, including coaching, referrals, facilitation, mediation and being a sounding board, to name a few. In all our interactions we are keen to ensure that we remain impartial, maintain confidentiality and have positive intent in helping to develop resolution options with Associates.

Often, our conversations are with Line Managers, some seeking advice in handling tricky team situations and others who we must speak to because we have received feedback from their Associates. In either case, we are helping Managers “hold the mirror up” to better understand their leadership style and if it might be impacting their teams’ performance and/or engagement. At all times, we ensure the conversation remains only about the Line Manager and how they can improve, rather than what was said about them and by whom.

This type of crucial conversation has benefited many Line Managers and their teams. We often receive positive feedback about changes that Managers have made, enabling them to move from good to great without impacting trust and spoiling relationships within the team.

What else we’ve heardWe hope you’ve found our Annual Report to be thought-provoking. The topics included were only some of what we’ve talked about with Associates this year.

Other common areas of discussion were ones that also came up frequently in previous years, such as:

• PDP/PIP-related questions and concerns (6% of all cases)

• Conversations around how Managers engage and motivate Associates (6% of all cases)

• Organization Design/Restructuring (8% of all cases)

In each of these cases, we dedicated the time needed to coach Associates and facilitated or mediated where appropriate. We also summarized what we heard, without ever breaching our confidentiality rule, and shared important systemic observations with our leaders with the goal to tackle any topics that might not be in line with our Five Principles, always with the objective to make Mars a better place to work.

Some Line Managers also provided feedback to their Ombudsman after such interactions, including:

"Your feedback based on what you heard from my team really helped me adjust my style."

"Thanks for highlighting the need for career discussions with my team."

"I hadn't thought of all the options you brought into the conversation. Thanks!"

"Thanks for your neutrality in this complex matter!"

"Your perspective on the situation has enabled me to move forward with building a great team."

"Appreciate the early warning about the emerging disagreement in my department!"

These are just some examples of how the Ombudsman Program can bring benefits to the organization while supporting Associates.

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2020 Annual Ombudsman Report

Mars, Incorporated

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