Consistent with its Beliefs and Values and guided by the best corporate governance practices, Natura has been trying to convey to the community, in a broad, transparent, systematic and organized way, information about its business and activities. In its Annual Report 2002, Natura presented, for the third consecutive year, the economic, environmental and social indicators in accordance with the recommendations of the Global Reporting Initiative. The Annual Report presents an analysis of the economic-financial, social and environmental results of the company, giving them equivalent weight. On page 29, Natura informs that, among other codes of conduct, it is a signatory of the Global Compact. Natura believes that many of the values that have historically guided its corporate behavior are expressed in the Global Compact principles.

For more information on how Natura communicates progress in implementing the Global Compact principles, please view the document attached.

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Natura plans to improve its communication with society by adopting structured processes and formal communication channels that promote a constant dialogue with its stakeholders. In its Annual Report 2003, besides listing the Global Compact principles, Natura will also relate those principles to the GRI indicators it adopts.