Performance Indicators - Society

G3 Indicator
Effectiveness of any programs and practices that manage the impact of operations on our communities
We employ a variety of approaches to assess and manage our impacts, both positive and negative, real and perceived. Since our formation, Mosaic's most significant mining and manufacturing operations have been located in and around three communities in Saskatchewan, Canada, and four counties in Florida, USA. Our response to this indicator addresses only our programs in those areas.

For years, we have successfully permitted our mining properties and anticipate that we will be able to continue to do so. However, in Florida, local community participation has become an increasingly important factor in the permitting process for mining companies, and various local counties, environmental groups and other parties in Florida have in the past and continue to express potential concerns about the impacts of Mosaic's operations, including through challenges to the permits we require. We have discussed these challenges in more detail in our periodic reports filed with the U.S. Securities and Exchange Commission. Mosaic's engagement around community impacts includes regular meetings with a series of local community advisory panels, leadership involvement in local chambers of commerce and other civic organizations and face-to-face engagement with elected officials, government staff and other opinion leaders. This approach continues month-in and month-out, regardless of any changes in our operations or special items of concern. We recognize that it is not practical to reach everyone through personal contact, so we reach out to the broader community through television, newspaper and direct mail public education initiatives in the areas where we operate and nearby communities. When our plans call for expanding our operations, we also participate in public hearings convened by local or regional governments.

We believe that working closely and communicating frequently with our employees and vendors can also help us understand and manage the impact of operations on our communities. In the areas of our most significant mining and manufacturing operations, we are a leading private sector employer and spend a substantial portion of our procurement budget with local vendors, as discussed in our response to Indicator EC6.

To help us evaluate the effectiveness of our programs and practices to understand and manage the impacts of our operations on the communities around our Florida Phosphates business, we have been conducting periodic, statistically valid public opinion surveys. From May 2006 to March 2009, we have seen a 42% net improvement in public opinion about our local industry and a 55% net improvement in the public's perception of our environmental stewardship.

In our Florida Phosphates business, where mine closure and reclamation happens over a shorter time frame than in our Potash business, we are also focused on looking ahead to support vibrant, self-sustaining communities in which previously mined and reclaimed lands can play an important role in a community's long-term economic development and environmental management plans. For example, in Hardee County, Florida we worked closely with the local government and economic development agency in planning for an extension of our South Fort Meade Mine. Our mining and reclamation plans were developed with an eye toward local government plans for long-term land use in the area. A development order issued by the local government includes a ten year $42 million commitment from Mosaic for infrastructure and other economic development in the county.

Business units analyzed for risks related to corruption
Mosaic has adopted a Code of Business Conduct and Ethics. We require almost all salaried employees to complete online code of conduct training and certify their compliance with the code, and demands strict compliance from our employees. We maintain a 24-hour confidential and anonymous incident reporting hotline for all Mosaic employees. Employees can report workplace incidents and issues including fraud, threats of violence, harassment, discrimination, dishonesty or any other workplace issue that may cause concern. In addition, Mosaic maintains formal audit programs for identifying risks for Sarbanes Oxley compliance and fraud risk assessment.

Employees trained in organization's anti-corruption policies and procedures
From July 2005 through May 2009, 269 Mosaic employees completed our online training regarding compliance with the Foreign Corrupt Practices Act (FCPA). In addition to the online training, instructor-led training was also provided to certain employees, based on their job responsibilities. In May 2009, Mosaic imposed a new requirement that all salaried employees (which include all management employees — approximately 2,000) to complete online training in the FCPA by July 2009.

Actions taken in response to incidents of corruption
Mosaic has had no known incidents of corruption (meaning bribery prohibited by the FCPA or domestic laws that prohibit similar conduct in areas where we operate) during the life of our company. Accordingly, we have not dismissed or disciplined any employee for corruption, nor have we declined to renew a contract with a business partner due to violations related to corruption.

Public Policy
Public policy position
Government officials at the local, state/provincial and federal levels play an important role in developing laws and regulations for the crop nutrient industry. Our goal is to comply with all laws and regulations, and when possible, to exceed those requirements.

Mosaic works to be proactive in educating government officials on our company's operations, the key issues our company faces, and our company's importance to local communities and role in the world's food supply. Mosaic has a policy team, as part of our Public Affairs staff, which works with our businesses and operations to address government relations issues. We determine how we engage with officials based on several factors:
  • Does the issue directly impact Mosaic and/or the company's operating or financial results?
  • If so, is it good public policy to participate in the legislative or regulatory debate?
  • If it is, who can best influence the debate on the issue (i.e. Mosaic or one of its trade associations)?
  • What type of resources will the company and/or the trade association allocate to the issue?
Once this analysis is complete, the company will decide how proactive to be in a particular issue.

Our primary lobbying activities in recent years have been:
  • Climate change As governments in Canada and the United States have considered climate change legislation, we have advocated for policies that guard against greenhouse gas (GHG) leakage by protecting domestic industries that compete in a global marketplace and that recognize businesses that took early action to reduce emissions before there was a legislative mandate or incentive to do so.
  • Electricity cogeneration from waste heat We have advocated in the United States for policies that permit, and acknowledge the fair value of, non-GHG-emitting electricity generated from waste heat from industrial operations.
  • Transportation infrastructure investment We have advocated in the United States for investment in transportation infrastructure, including at the Port of Tampa, Florida.
Value of financial and in-kind contributions to political parties, politicians and related institutions by country.

Political Contributions FY2008 FY 2009
United States $129,000 $69,950
Canada $24,959 $18,717

All amounts are reported in United States Dollars ($US). Amounts are reported based on when Mosaic wrote the check, which in some cases may be in a different fiscal year than when the check was delivered and reported by the receiving candidate or organization.

Anti-Competitive Behavior
Legal actions for anti-competitive behavior, anti trust, and monopoly practices.
In late 2008, a series of antitrust complaints was filed against Mosaic and other potash companies alleging that the defendants conspired to fix prices of potash sold in the United States. We believe that the allegations are without merit and intend to defend vigorously against them.
Significant fines and total sanctions for non- compliance with laws and regulations not covered by EN28 and PR9