Natura remains faithful to its commitment to establish, maintain, and value relationships grounded in ethics, transparency, and open and ongoing dialogue with all our stakeholders, from employees, consultants, suppliers, shareholders, and surrounding communities to the final consumers. Whether in Brazil or in our foreign operations, we want to forge closer ties, and to achieve this we are always working to improve the quality of the relationships we build.

In 2008, we continued the process of managing the quality of relationships, launching a systematic process of stakeholder engagement that consists of pushing back the frontier of the organization through dialogue and collaboration with all our many stakeholders. This is how we will develop valuable solutions both for Natura and for all parties that have some form of relationship with us and our brand, and thus are a part of our community.

We developed initiatives to engage in dialogue with five stakeholder groups most closely involved with our business: employees, consultants, customers, shareholders, and suppliers. These virtual collaborative dialogues identified problems and opportunities in the relationship. We also staged a face-to-face workshop with representatives from the five stakeholder groups to discover topics of interest to the Natura Community. The results of this workshop will enrich our strategic planning, in addition to already having helped set the priorities for the topics contained in this report.

To forge closer ties with all our stakeholders and to lend more legitimacy to these relationships, we created in 2008 the Executive Committee for Managing the Quality of Relationships, which will be expanded in 2009 with the participation of external members. The primary focus of the committee’s work, in the first year, was to come up with a set of relationship guidelines with the various stakeholders. The committee has also decided that the process of developing and updating the Relationship Principles, as well as the disclosure of their contents, will now be the responsibility of the stakeholder managers, and also be a part of the process of managing the quality of relationships.

See below the various relationship channels with our stakeholders:

RELATIONSHIP CHANNELS

Employees

  • Meeting with the CEO’s Office

    - Opportunity for employees to openly give their opinions, make suggestions and raise criticisms to senior management.
  • Scheduled meetings

    - Events held on an irregular frequency with operating and administrative staff to inform, align, give direction and integrate them with leaders. They are also opportunities to openly give opinions, suggestions and criticisms of management.
  • Talk to Natura

    - Communication channel via e-mail/company intranet to openly express doubts, compliments, complaints, requests, criticisms and suggestions. The department involved with the issue raised is responsible for giving the response.
  • Satisfaction survey

    - Conducted once a year to assess the quality of and improve the relationship through the monitoring of indicators.
  • Climate representatives

    - Employees chosen by their own colleagues to represent staff in discussions on the changes in the organizational climate.
  • Ombudsman´s Office

    - Channel for inquiries on the quality of relationships that are monitored through to their resolution.

Communities surrounding Itapecerica and Cajamar

  • Surrounding communities relationship staff

    - Natura staff relates with the community primarily through civil society organizations, government representatives and community leaders.
  • Forums and opportunities for participation

    - We are also involved in the forums and opportunities for participation held by the municipalities, such as: social network; municipal councils; discussion forums. Natura has also created opportunities for democratic participation in the municipalities, such as the course on the municipal Master Plan.

Suppliers

  • Supply Staff

    - Staff committed to the relationship with suppliers, and the principal contact between Natura and this important stakeholder group.
  • Satisfaction survey

    - Survey conducted annually to gauge, quantitatively and qualitatively, the relationship between Natura and its suppliers.
  • Ombudsman´s Office

    - Channel for inquiries on the quality of relationships that are monitored through to their resolution.

Supplier Communities

  • Supplier communities relationship staff

    - Natura has a specialized and multidisciplinary team responsible for streamlining the relationship with this stakeholder group, as well as for capturing and internally forwarding the demands.

Consultants

  • Natura Meeting

    - A meeting held every 21-day cycle organized and conducted by the Relationship Managers (RMs), bringing together a significant portion of the sales force (Natura Consultants - NCs and Natura Consultant Advisers - NCAs). These are opportunities to develop the relationship between Natura and its consultants that focus on presenting the main new product launches and promotions for the cycle. It also, allows them to share information on sales activities, engage in discussions about the company’s values and practices, and take part in group training sessions.
  • Website

    - A virtual space providing multimedia information about the company and its products and services. It serves as a platform for sending orders, with marketing tools specially designed for consultants, such as sending e-mails with information and promotions, highlights about the latest product launches, sales tips and other functions. It also has web platform 2.0 features such as blogs and online dialogue channels.
  • Natura Service Center (CAN)

    - Direct communication channel that helps manage the satisfaction of consultants. It handles all contacts – including taking product orders – receives suggestions and complaints from the NCs and monitors the processes through to their resolution. It can be contacted by a toll-free 0800 number or through the internet.
  • Satisfaction surveyo

    - Annual survey conducted to monitor the change in the relationship and identify points of improvement.
  • Relationship Manager (RM)

    - The Natura RM is an employee responsible for the direct relationship with the consultant. They are the key link between the company and its NCs.

Consumers

  • Natura Customer Service Center (SNAC)

    - This service can be contacted by a toll-free 0800 number. It is staffed by a team trained to receive information, complaints, suggestions and criticisms. The SNAC monitors the processes through to their resolution.
  • Customer Satisfaction Instantaneous Survey (PISC)

    - A survey conducted to monitor the changes in the relationship and identify points of improvement, administered after the customer contact with SNAC.

Shareholders and investors

  • Investor relations staff

    - Staff committed to the ongoing relationship with investors and potential investors, and the principal contact between Natura and this important stakeholder group.
  • Talk to the IR service

    - An area on the Natura’s investor relations part of the Natura website (www.natura.net/investidor) reserved for market analysts, investors and other interested parties to talk directly to the company’s Investor Relations staff
    by e-mail.
  • Conferences, one-on-one meetings and road shows

    - Meetings and events with the Investor Relations department held in Brazil and abroad. The purpose is to update and inform our investors and potential investors about the company’s main results.
  • Perception Study

    - An annual survey to evaluate the perception of investors about Natura as an investment and about the company’s communication with investors.