RALPH LAUREN CITIZENSHIP report 2013 A Message From Our Chairman and CHIEF EXECUTIVE OFFICER I am pleased to present Ralph Lauren Corporation’s first Citizenship Report, outlining our Company’s commitment to social and environmental responsibility. As we continue to grow and expand our horizons, so does our obligation to do so responsibly. Our journey over the past four decades has been extraordinary. We have much to be proud of; our talented, dedicated and high-performing global teams continue to set the gold standard for excellence throughout our industry. Today, we have freestanding stores in over 40 countries, and our product is sold in more than 80 countries worldwide. In the midst of this remarkable growth, our brand today remains synonymous with the vision I had when I created this Company in 1967. It has always stood for fine craftsmanship, quality and a timeless sense of style, underscored by a desire to give back to our community and to create a better world. Yet as we look back at all we have accomplished, I know there is more to do. Our genuine commitment to corporate responsibility helps to build goodwill in the communities where we work and live. We strive to help the underserved through our efforts in cancer care and prevention, education, volunteerism and philanthropy. We seek to reduce our environmental footprint as we operate our Company—from the supply chain and workplace, to products and packaging, to our environmental partnerships—with an emphasis on sustainability. Ultimately, we try to empower in a very personal way both our employees and our business partners to cultivate a healthy, productive and ethical workplace. From our worldwide Pink Pony campaign, to our Global Diversity Leadership Group, to the extensive recycling program at our main distribution center, we are proud of our efforts and the scope of our work. Innovative programs like these are the reason we were named one of Fortune magazine’s “World’s Most Admired Companies” this year, for the eighth year in a row. I could not be more proud. Ralph Lauren Corporation Reference Throughout this report, reference to “Ralph Lauren,” “ourselves,” “we,” “our,” “us,” and the “Company” refer to Ralph Lauren Corporation and its subsidiaries (“RLC”), unless the context indicates otherwise. Forward-Looking Language This document may contain forward-looking statements based on current expectations. Various statements in this report or incorporated by reference, in previously submitted and future f ilings by us with the Securities and Exchange Commission, in our press releases, and in oral statements made from time to time by us or on our behalf constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and are indicated by words or phrases such as “anticipate,” “estimate,” “expect,” “project,” “we believe,” “is or remains optimistic,” “currently envisions,” and similar words or phrases and involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance, or achievements to be materially different f rom the future results, performance, or achievements expressed in or implied by such forward-looking statements. By spearheading programs that benefit underserved communities, by strengthening our commitment to operating our Company with greater sustainability, and by encouraging our teams to maintain a work environment nurtured by respect and real human values, we feel our employees, and Ralph Lauren Corporation as a whole, have pursued responsible growth. We take great pride in creating a better world through our Company, and will continue to seek ways to expand our citizenship efforts around the world. This report represents our first effort to produce an overview of our work toward being good corporate citizens. We appreciate your interest in learning more about our vision for creating a company that values corporate responsibility as a way of life. Warmest Regards, Chairman and Chief Executive Off icer, Ralph Lauren Corporation For a complete listing of all forward looking statements please refer to our Form 10-K for the f iscal year ended March 29, 2014. These forward-looking statements are based largely on our expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. 1 RALPH LAUREN CITIZENSHIP report ta b le o f c o n t en t s about RALPH LAUREN CORPORATION page 5 about this report page 15 environment page 17 employees page 29 RESPONSIBLE SOURCING page 37 community page 45 The information indicated herein is subject to the precision of our data collection and analysis method, which is subject to future evolution and calibration. While we consider information from external resources and consultants to be reliable, we do not assume responsibility for its accuracy. Additionally, all numbers referenced are subject to the quality and comprehensiveness of the entities (internal and/or external) reporting and therefore are approximate and/or estimated values. It is also important to note that the availability of data varies from section to section of the report. Availability of data also varies with respect to f iscal or calendar year format. References to f iscal year will be represented as follows: Fiscal followed by the year; for example, Fiscal 2009. References to calendar year will be represented by the year alone; for example, 2009. We utilize a 52-53 week f iscal year ending on the Saturday closest to March 31. All references to "Fiscal 2014" represent the 52-week f iscal year ended March 29, 2014. All references to “Fiscal 2013” represent the 52-week f iscal year ended March 30, 2013. All references to “Fiscal 2012” represent the 52-week f iscal year ended March 31, 2012. All references to “Fiscal 2011” represent the 52-week f iscal year ended April 2, 2011. All references to “Fiscal 2010” represent the 53-week f iscal year ended April 3, 2010. All references to “Fiscal 2009” represent the 52-week f iscal year ended March 28, 2009. 3 AB O U T R ALPH LAU R EN C O R P O R ATIO N RALPH LAUREN about ralph lauren corporation “What I do is about living.” — Ralph Lauren I n t hi s s e c t i o n company highlights about ralph lauren corporation overview our operating segments our products & brands ta b le o f c o n t en t s 5 AB O U T R ALPH LAU R EN C O R P O R ATIO N AB O U T R ALPH LAU R EN C O R P O R ATIO N Company Highlights 1 1967 1971 1972 1976 1981 1996 1997 1998 2000 2004 Polo is launched with an innovative collection of wide ties, before expanding the following year to include a full line of menswear. The first freestanding Polo Ralph Lauren store opens on Rodeo Drive in Beverly Hills. An icon is born with the introduction of mesh polo shirts for men with the pony embroidered on the chest. A full line of Ralph Lauren Womenswear also debuts, inspired by refined menswear. Polo for Boys is launched, followed by a collection for girls the following year. The first European Polo Ralph Lauren store opens on New Bond Street in London. Lauren by Ralph Lauren is introduced. The line goes on to be a leading brand in the women's better sportswear categories in department stores. In its 30 th year of business, Polo Ralph Lauren becomes a publicly traded company on the New York Stock Exchange. Black Label, a sleek, sophisticated and modern line for women, is launched. A men's line of the same name debuts seven years later in 2005. Polo.com is launched, marking the Company's first venture into e-commerce. Seven years later, the site is renamed RalphLauren.com. Pink Pony also debuts on the runway in September. A European corporate headquarters is established in Geneva, Switzerland. 1993 1994 2005 2006 2009 2011 2013 RRL—a line of rugged, casual menswear named after the Lauren family's ranch in Colorado—debuts. Sartorial style returns to the spotlight when Purple Label— a collection of hand-tailored haberdashery— is launched. The United States Tennis Association selects Polo Ralph Lauren as the official apparel sponsor for the U.S. Open. It’s the first of many high-profile sports partnerships formed by the Company, including at Wimbledon and the Olympics. A freestanding Ralph Lauren store opens in Tokyo. Ralph Lauren Watches are debuted in partnership with luxury group Richemont. The following year the line expands to include fine jewelry for women. Denim & Supply Ralph Lauren, a line of premium denim and freespirited clothing for men and women, is launched. Two years later, dedicated freestanding stores open in New York and Boston. The first men's-only flagship store in Asia opens in Hong Kong at the Prince's Building. R alph L auren Home 6 1981 1983 1986 Twenty-page color spreads appear in magazines advertising Ralph Lauren, revolutionizing the ad world and establishing Mr. Lauren as an American designer/ storyteller. With the launch of Ralph Lauren Home, Mr. Lauren presents a comprehensive home collection. The first Company flagship opens in the Rhinelander mansion at 867 Madison Avenue in New York City. Later that year, a flagship opens in Paris. 7 AB O U T R ALPH LAU R EN C O R P O R ATIO N AB O U T R ALPH LAU R EN C O R P O R ATIO N ABOUT RALPH LAUREN corporation OVERVIEW Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of premium lifestyle products, including men's, women's, and children's apparel, accessories, fragrances, and home furnishings. For more than four decades, our long-standing reputation and distinctive image have been consistently developed across an expanding number of products, brands, sales channels, and international markets. We believe that our global reach, breadth of product, and multi-channel distribution are unique among luxury and apparel companies. Our Operating Segments We operate in three distinct but integrated segments: Wholesale, Retail, and Licensing. Wholesale Sales made principally to major depar tment stores and specialty stores around the world. Retail Sales made directly to consumers in our Ralph Lauren Corporation by the Numbers Ralph Lauren Corporation approximate net revenues in Fiscal 2014 represented by segment ( Wholesale, Retail, and Licensing) and by region (the Americas, Europe, and Asia). NET REVENUES BY segment fiscal 2014 retail stores around the world; through concession-based shop-within-shops located 2% primarily in Asia, Australia, and Europe; and through our retail e-commerce channel in North America, Europe, and Asia. 47% 51% Ralph Lauren e-commerce sites are currently available in Nor th America, Europe and Asia and service the U.S., Canada, Austria, Belgium, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Portugal, South Korea, Spain, and the United Kingdom. Retail 51% Wholesale 47% Licensing 2% NET REVENUES by region fiscal 2014 Licensing Royalty-based arrangements under which 12% we license to unrelated third-par ties the right to operate retail stores and/or to use 21% our various trademarks in connection with the manufacture and sale of designated 67% products, such as apparel, eyewear, and fragrances, in specified geographic areas for specified periods. 8 The Americas 67% Europe 21% Asia 12% 9 Our products, which include apparel, accessories, and fragrance collections for men and women, as well as childrenswear and home furnishings, comprise one of the world’s most widely recognized families of consumer AB O U T R ALPH LAU R EN C O R P O R ATIO N AB O U T R ALPH LAU R EN C O R P O R ATIO N Our Products & BRANDS brands. Reflecting a distinctive American perspective, we have been an innovator in aspirational lifestyle branding and believe that, under the direction of internationally renowned designer Mr. Ralph Lauren, we have had a considerable influence on the way people dress and the way that fashion is advertised throughout the world. We combine consumer insight with our design, marketing and imaging skills to offer, along with our licensing alliances, broad lifestyle product collections with a unified vision. Apparel Home Extensive collections of men’s, women’s and Coordinated home products include bedding and bath children’s clothing products, furniture, fabric and wallpaper, lighting, paint, tabletop, and giftware Accessories Broad range of products include footwear, eyewear, Fragrance watches, fine jewelry, hats, belts, and leathergoods, Fragrance products are sold under our Big Pony, including handbags and luggage Romance, Midnight Romance, Polo, Lauren, Safari, Ralph, Black Label and Purple Label brands, among others Our lifestyle brand image is reinforced by our stores and concession shop-within-shops, our wholesale channels of distribution, and our e-commerce sites, including our North American Ralph Lauren and Club Monaco e-commerce sites; and our Ralph Lauren e-commerce sites in Europe, Japan, and South Korea. 10 Ralph Lauren Women's Collection RLX Ralph Lauren Ralph Lauren Purple Label Lauren Ralph Lauren Accessories Ralph Lauren Childrenswear Ralph Lauren Watches Denim & Supply Ralph Lauren Ralph Lauren Fine Jewelry Golf Ralph Lauren Women's Black Label Pink Pony Ralph Lauren Men's Black Label Ralph Lauren Home Ralph Lauren Women's Black Label Denim Ralph Lauren Paint Ralph Lauren Men's Black Label Denim Fragrance Women's Polo Ralph Lauren Lauren for Men Men's Polo Ralph Lauren Ralph by Ralph Lauren Ralph Lauren Women's Blue Label Chaps RRL Club Monaco 11 AB O U T R ALPH LAU R EN C O R P O R ATIO N AB O U T R ALPH LAU R EN C O R P O R ATIO N Ralph Lauren Corporation Officers Ralph Lauren Chairman and Chief Executive Off icer Roger N. Farah Executive Vice Chairman* Jackwyn L. Nemerov President and Chief Operating Off icer Mitchell A. Kosh Executive Vice President, Human Resources Christopher H. Peterson Executive Vice President, Chief Administrative Off icer and Chief Financial Off icer Board of Directors Ralph Lauren Joel L. Fleishman Chairman and Chief Executive Off icer, Ralph Lauren Corporation Professor of Law and Public Policy, Duke University Roger N. Farah Hubert Joly Executive Vice Chairman, Ralph Lauren Corporation President and Chief Executive Off icer, Best Buy Co., Inc. Jackwyn L. Nemerov David Lauren President and Chief Operating Off icer, Ralph Lauren Corporation Executive Vice President of Global Advertising, Marketing and Communications, Ralph Lauren Corporation John R. Alchin Retired Executive Vice President and Co-Chief Financial Off icer, Comcast Corporation Judith McHale President and Chief Executive Off icer, Cane Investments, LLC Arnold H. Aronson Steven P. Murphy Managing Director, Retail Strategies, Kurt Salmon Chief Executive Off icer, Christie’s International PLC Frank A. Bennack, Jr. Retired Chairman and Chief Executive Off icer, NBC Universal; Vice Chairman, General Electric; Co-Founder & Chief Executive Off icer, Autism Speaks; Senior Advisor, Lee Equity Partners, LLC Chairman of the Executive Committee and Vice Chairman of the Board of Directors, The Hearst Corporation Robert C. Wright Dr. Joyce F. Brown President, Fashion Institute of Technology *On May 8, 2014, Roger N. Farah notified us of his resignation from the Company as Executive Vice Chairman, effective as of May 31, 2014. Mr. Farah will remain on our Board of Directors until our 2014 Annual Meeting of Stockholders in August 2014. 12 13 ABOUT THIS REPORT The 2013 Ralph Lauren Corporation Citizenship Report is our inaugural effort to formally define our corporate commitment to the environment and social responsibility. While this is our first report, being a responsible company has been and continues to be a priority. For years we have focused on creating a positive impact. Our belief in corporate responsibility is rooted in the heritage of our brand—creating authentic and quality products that people need and desire, that inspire a better way of life for themselves, their families and their homes, all over the world. In keeping with our Company’s reputation, we continually seek to conduct business according to high ethical, legal, social, and environmental standards. In our first report, we have focused on four main areas: Environment, Employees, Responsible Sourcing, and Community. These four areas guide the content, in which we address practices, initiatives, and metrics relevant to our areas of focus. In our Environment section, we discuss energy and climate; materials and recycling; and engagement practices. In our Employees section, we discuss our employee population as well as several initiatives and programs that support our employees. Our Responsible Sourcing section discusses our practices in sourcing; the manufacturing of our product, including vendor selection; and our product safety and social compliance practices. Finally, our Community section discusses our focus on giving back and working with local organizations through a variety of initiatives and programs. Since this is our first report, the time frame covered varies in certain sections. For example, the impact and results of select initiatives span from when they began through our fiscal year 2014 (Fiscal 2014), which ended on March 29, 2014. The availability of specific information may also vary from section to section based on the maturity of the practice and available information. In addition, references to both fiscal years and calendar years appear throughout the report, as certain programs and practices adhere to fiscal years, while others are based on calendar years. We see this report as an opportunity to reflect on the work we have already done to be a responsible corporate citizen, with an eye toward future progress. We will use our first report as the foundation for future reporting, strategy, performance assessment, and other opportunities. 15 ENVIRO N MEN T RALPH LAUREN environment “To preserve and protect the unique beauty of the earth and its natural resources for future generations is an obligation we all share, and our Company is committed to that trust every day.” — Ralph Lauren I n t hi s s e c t i o n : ENVIRONMENT OVERVIEW ENERGY & CLIMATE MATERIALS & RECYCLING engagement & outreach ta b le o f c o n t en t s 17 ENVIRO N MEN T ENVIRO N MEN T ENVIRONMENT OVERVIEW percent change in air mix FROM FISCAL 2009 Global air mix reduced more than one-third over six years. We strive to be an environmentally respectful company. We seek to continually improve energy and resource efficiency and environmental responsibility in every area of our business. We encourage our employees, our 1,800 homes' energy use for one year. business partners, and our customers to join us in supporting a more sustainable world. ENERGY & CLIMATE Reducing our global air mix AVOIDED 20,000 MTCO 2 of emissions f rom being released into the air, the equivalent of emissions f rom 2009 --- 2010 15% Transportation 2011 10% 2012 20% 2013 30% 2014 41% fiscal year % decreased We understand the significant impact the transportation sector has on the environment and climate and believe it is important to mitigate that impact. While we do not own or operate transport equipment, we encourage our logistics partners to prioritize efficiency and actively contribute to organizations working to move the logistics industry toward a more sustainable future. Our global logistics team focuses on ways to transport our merchandise with great efficiency. By implementing CLEAN CARGO Collaboration with other shippers and logistics providers allows us to encourage and contribute to industry innovation and improvement. Our logistics team works with leaders in the logistics industry to help achieve technology to study, plan and impact the movement of our merchandise, the logistics team identifies and puts these objectives. Beginning in 2009, we partnered with our container ship carriers through Business for Social into action initiatives to transpor t and manage our merchandise shipments in efficient and environmentally- Responsibility's Clean Cargo Working Group (CCWG). CCWG is dedicated to improving the environmental friendly ways. performance of ocean container transport through measurement, evaluation, and reporting. Shipper and carrier The global logistics team drives improvement in environmental performance through four primary areas of focus: emissions-efficient modes, routing, customer collaboration, and shipment consolidation. members share best practices and work together to set industry standards for environmental reporting. CCWG provides carbon accounting methodology that results in industry-best carrier-specific carbon accounting for ocean transport. Since 2011, 100 percent of our ocean carrier partners have been CCWG members. EmissionS-Efficient Modes GROUND PARTNERSHIP Mode selection has a large, direct impact on transport emissions and represents a key area for targeted Since 2009, we have been a member of the EPA's SmartWay program. This program helps freight shippers, improvements. carriers, and logistics companies improve fuel efficiency and reduce environmental impact. As part of our AIR TRANSPORT REDUCTION Air transport is an emissions-intensive mode of transportation. 1 By shifting volume to other modes of transport, participation in the program, we committed to using SmartWay carriers and making continuous improvements, such as no-idling truck policies. As of Fiscal 2014, we are a proud SmartWay Transport Partner with more than 98 percent of Company-controlled ground shipment mileage moving via SmartWay carriers. such as ocean and rail, the emissions resulting from movement of product significantly decrease. Our global logistics team has dramatically reduced air freight usage by leveraging end-to-end visibility solutions, Routing maintaining a menu of ser vice options to meet business needs, and allowing for the selection of the least Dynamic Routing carbon-intensive mode of transpor t wherever possible. As a result, since Fiscal 2009, we reduced our global air mix by more than one-third, avoiding more than 20,000 metric tons of carbon (CO 2) emissions in the latest fiscal year alone. 2 Designing efficient routing can significantly mitigate a shipment's environmental impact by reducing the distance traveled or minimizing emissions intensity. Our logistics team carefully examines existing product flows and routinely tests alternate routing to develop solutions that meet business needs. One solution we have adopted involves dynamic routing of ocean freight. By using end-to-end visibility and forecasting tools, our team can redirect shipments to use rail service instead of truckload or to ship via ocean to an alternate port, resulting in a much shorter truckload move to the distribution center. Either alternative lowers emissions by reducing truck mileage in favor of more emissions-efficient rail or ocean service. United States Environmental Protection Agency. "Optional Emissions from Commuting, Business Travel and Product Transport." May 2008. See also: United States Department of Energy. "Transportation Energy Data Book." 2010. 2 Carbon dioxide emissions, often referred to as carbon emissions, are converted to metric ton carbon or equivalent emissions. All equivalencies reference EPA values. 1 18 19 ENVIRO N MEN T ENVIRO N MEN T Carbon Footprint Intermodal Alternatives Our logistics team identified an opportunity to optimize service from our distribution centers to our stores that are particularly distant. Instead of shipping via air direct to certain stores, the team designed an intermodal solution using a mix Through use of intermodal solutions, we avoided emissions equal to CO 2 emissions from 390,000 gallons of gasoline. We began the process of establishing and tracking our carbon footprint in 2011. With the help of a consultant, we were able to put into place a dependable means of capturing footprint-related data by the end of Fiscal 2012. By monitoring our energy consumption and with the emissions FOOTPRINT of consolidated truckload and ocean freight. The successful help of our consultant, we have developed scope 1 implementation resulted in a more than 90 percent decrease (direct emissions—natural gas and heating oil) and 80 in our emissions for those shipments, avoiding an estimated scope 2 (indirect emissions—electricity) tracking 70 3,500 metric tons of CO 2 through Fiscal 2014. for our offices, retail stores and distribution centers Customer Collaboration carbon footprint is an approximation based upon solutions can often reduce the unnecessar y movement of certain products and thus improve environmental performance. Our logistics team utilizes data to consolidate and schedule shipments for our customers in a process aimed at minimizing truckload miles. Effective packaging of shipments is a key part of optimizing transport as well. By transitioning to higher quality and space-efficient car tons, we are able to ship the same volume tons co 2e (thousands) in North America and Europe. Specifically, the We work closely with our wholesale customers to leverage our mutual supply chain capabilities. Collaborative Shipment Consolidation (scope 1 and scope 2) measured (i.e. metered) energy consumption, as well as projected energy consumption developed through modeling same brand/similar-sized stores 60 60 50 40 30 20 10 0 for buildings for which we do not receive metered 2012 energy consumption details. The Fiscal 2014 carbon footprint is inclusive of all North America CONTAINER CAPACITY UTILIZATION We have improved container utilization and shipment consolidation, reducing excess ocean shipments and avoiding container drayage. 2013 2014 fiscal YEAR and Europe buildings but does not yet include all global facilities (e.g. facilities located in Asia). The char t above represents our North America and Europe carbon emissions from Fiscal 2012 (partial), 2013 and 2014. of product in less space, reducing overall shipment size. In addition, we implemented guidelines to select appropriately sized cartons for our product. emissions by facility North America (U.S. & Canada) emissions by facility Europe fiscal 2014 fiscal 2014 We also seek to drive efficient use of ocean container space. Routing guidelines direct our logistics partners to optimally select containers and maximize utilization, which avoids wasted space and reduces the number of containers 8% 2010 269 2011 563 2012 838 2013 778 2014 800 Our Fiscal 2014 global carbon footprint is equal to CO 2 emissions from generating electricity for 6,500 homes' energy use for one year. 31% we would otherwise ship. This not only lowers ocean freight emissions but also reduces the required number of dray Fiscal YEAR CONTAINER moves AVOIDED 63% 6% moves (transpor t of ocean containers by truck to or from 92% a port). Retail 63% Offices 6% Distribution Centers 31% Retail 92% Offices & Distribution Centers 8% The char ts above represent emissions by facility during Fiscal 2014, in which retail stores in Nor th America and Europe comprised 63 percent and 92 percent of our emissions footprint, respectively. 20 21 ENVIRO N MEN T ENVIRO N MEN T BUILDINGS We also strive to use more sustainable materials throughout our stores. We have incorporated a variety of energy-efficient practices and measures to help improve our overall energy performance. For example, by the end of Fiscal 2014, approximately 25,000 square yards of our stores, offices and showrooms had floors covered with coir/ sisal rugs and carpeting. Coir/sisal is a hybrid fiber made from plant byproducts known for its strength, flexibility and durability. Using coir/sisal Energy Management Systems instead of traditional rugs or carpeting allows us to have a more natural Since 2002, we have integrated energy management systems (EMS) into approximately 40 percent of our retail product in our various spaces and replace it less often. Our first coir/ stores. These are computer-based systems that allow us to remotely monitor, control and optimize lighting, sisal rugs appeared in stores in 2009. heating, ventilation, air conditioning, and other electrical systems in our stores. Use of EMS enables us to save energy by adjusting lighting and temperature levels in line with store needs. For example, lighting needs can be adjusted according to the time of day. Office Building Design In planning our new European office headquarters in Geneva, we wanted a space that prioritized environmentally sustainable features. We worked Store Design with our landlord to have the new building designed and constructed in In October of 2010, we opened a Polo Factory Store in Leeds, Alabama, and earned our first LEED® Silver accordance with the Swiss Minergie standards. Minergie provides a set certification from the U.S. Green Building Council (USGBC). This store uses approximately one-third of the energy of standards focused on building with eco-friendly materials and energy- used by a store of a similar size and location. efficient practices. Some of its features include: Some of the building's features include: High-grade rooftop insulation and white reflective f inish to reduce heating and cooling losses. 45 square meters of solar panels on the roof to produce hot water. Zero Volatile Organic Compound paint to reduce fumes and emissions. High-quality insulation (triple-layer windows). Water use reduction technology. Fully-automated temperature regulation on each floor/façade to help monitor consumption. The success of the store has allowed us to build a second store using LEED standards in Livermore, California. Exterior – Main Entrance We are currently seeking LEED Silver certification for this store. We have incorporated best practices from LEED standards in many of our other existing stores and office spaces. For example, all of our new Factor y Stores with open ceilings now have the same energy-efficient lighting coir/sisal rugs and carpeting Regulated sensors to illuminate the exterior of the building. Containers to recycle all waste (paper, plastic and glass bottles, batteries, cooking oil, toners, etc.). european office headquarters Water flow reducer on bathroom taps. fixtures used in the Polo Factor y Store in Leeds, Alabama. Light sensors in all off ices and common areas to reduce electricity usage. Forest Stewardship Council (FSC) certif ied off ice furniture. LEED stands for Leadership in Energy and Environmental Design. It's a building rating system created by the USGBC that provides standards for environmentally sustainable design and construction. Polo Factory Store in Leeds, AL 22 23 ENVIRO N MEN T ENVIRO N MEN T RECYCLED CONTENT INCORPORATED INTO PACKAGING (PERCENT) Fiscal 2010 - fiscal 2014 Procurement 50 Our procurement team identifies opportunities to select products with a reduced environmental impact while maintaining quality. In selecting vendors and purchasing partners for non-merchandise spending, our procurement team focuses on ways to improve our environmental performance. Packaging 31% 65% 2010 84% 2011 2012 One of the most important initiatives taken on by the procurement team is the environmentally-conscious selection of our consumer packaging. Partnering with various paper vendors, the team selects paper for our shopping bags and other packaging materials that incorporate recycled content and are also recyclable after use. TREES SAVED Fiscal 2010 - fiscal 2014 84% 80% thousands of trees (equivalent) materials & recycling 45 40 35 30 25 20 15 10 5 0 2010 2013 2011 2014 2012 2013 2014 Fiscal year The char ts above represent recycled content incorporated into our packaging from Fiscal 2010 to 2014, and the equivalent of trees saved from use of recycled material. Over the past several fiscal years, we have increased the amount of recycled content incorporated into our packaging. Purchasing Since 2011, our procurement team has worked with our office products supplier to improve our environmental performance with respect to how office items are selected, used, and delivered. By analyzing our spending patterns on supplies, our procurement team is able to identify our most-ordered items, such as toner cartridges and printer paper. The team then works to find, where feasible, substitutions categorized as or certified by our office products supplier as eco-products, which contain recycled and/or responsibly sourced content. These products account for approximately one-third of our purchases from our office products supplier. Additionally, our procurement team introduced an order consolidation program; orders must meet a minimum size requirement, which reduces packaging and transport emissions. 24 25 ENVIRO N MEN T ENVIRO N MEN T Recycling We have recycling practices in all of our corporate offices. In addition, our North Carolina distribution centers have developed many additional recycling initiatives. ENGAGEMENT & OUTREACH Inspiring our employees and our partners to be thoughtful in their environmental actions and decisions is essential to our sustainability mission. In 2000, we initiated collection of and recycling for paper, cardboard, plastic hangers, plastic bags, polybags, bottles, cans, paper, shrink-wrap, corrugate, light bulbs, and scrap metal at our main distribution center in North Carolina. We also began a Company-wide toner cartridge recycling program in 2009. Since then, we've recycled Advertising Initiatives Our internal advertising team continually identifies new opportunities to incorporate environmentally preferable more than 17,000 toner and ink car tridges. As our Company and facilities have grown, so has our recycling program. With the opening of additional facilities selections of paper, ink and other materials into their designs when possible. in North Carolina, our extensive recycling efforts increased to include our new locations. In 2012, we expanded For example, the proofing materials used to review photographs and advertisements are free of acetate overlays the program with the opening of a new nearby facility, followed shortly after by expansion to additional sites. and require no chemical washes, unlike previous proofing materials, reducing the environmental impact. Printing We track our recycling effor ts monthly to monitor progress, identify areas of improvement, ensure proper management of the process, and continue to find new and innovative ways to improve the program. inks now contain a varying degree of soy and vegetable product, reducing the amount of petroleum product used. Most of our mailers, including the World of RL Magalog, are FSC certified. Since January 2014, these changes kept over 32,186 pounds of solid waste from going into landfills. The team has also adjusted the default font used on computers to a font that uses 30 percent less ink when printed. recycled material emissions avoided by recycling fiscal 2010 - fiscal 2014 fiscal 2010 - fiscal 2014 EMISSIONS (mtco 2) AMOUNT RECYCLED (TONS) 5,000 4,000 3,000 2,000 1,000 Our sustainability team is dedicated to communicating with our employees and engaging them in the Company's 16,000 mission. The Sustainability site on the Company's internal website is a resource for news and information on 14,000 Company initiatives, tips and activities, events and FAQs. 12,000 Other outreach initiatives include: 10,000 8,000 6,000 Virtual internal sustainability suggestions/comments/questions box. 4,000 Earth Day e-mails and information for celebrating around the globe; events at various locations. 2,000 Various call-to-action communication encouraging employees to get involved. 0 0 2010 2011 2012 2013 2014 Fiscal YEAR Total recycled material from Fiscal 2010 to 2014 is represented; materials recycled include corrugate, plastic, and metal. 26 Sustainability Site & Other Employee Outreach PROGRAMS 18,000 6,000 2010 2011 2012 2013 2014 Fiscal YEAR Emissions avoided due to recycling materials, calculated according to EPA greenhouse gas equivalencies. Automatic double-sided printing for all networked multifunction printers. Convenient recycling bins (or single stream recycling in some locations). Filtered water stations to encourage ref illing of reusable water bottles. 27 EMPLOY EES RALPH LAUREN employees “At the core of our Company and our success are dedicated and talented employees who are passionate about who we are and the special contribution we make to the world of design and fashion.” — Ralph Lauren I n t hi s s e c t i o n : Employees overview Learning & Development Diversity Benefits Fair Employment practice department Wellness Global Talent Management Employee Recognition ta b le o f c o n t en t s 29 EMPLOY EES EMPLOY EES Employees overview DIVERSITY At Ralph Lauren Corporation, our people are at the heart of what we do. What began as a small, dedicated team Diversity is an essential factor in the success of our business. We began the process of institutionalizing working in a New York City office years ago has grown into a team of approximately 23,000 employees in Fiscal Strategic Diversity Management in 2000. Our mission was, and continues to be, the pursuit of a diversity-mature 2014. Though the Company continues to evolve and expand, we remain dedicated to maintaining the creative, organization—one in which each employee can perform optimally and be recognized based on the quality of his dynamic and inclusive environment we've had since day one. We value the talents of each individual and are or her performance. We are dedicated to working together to ensure that our long-term commitment to diversity committed to offering equal oppor tunities to each employee. management is embedded throughout the Company and is recognized as a core value for all employees. We are steadfast in our efforts to attract and retain the best talent, and remain focused on providing OUR Mission opportunities for our employees' growth and development. As we have grown, our workforce has evolved. Our employees represent a dynamic and diverse mix; they drive the spirit of the brand and bring our product to life. To create a structured process that enables our organization to develop and incorporate diversity management capability throughout the Company. To address diversity issues that arise in the workforce, the workplace, and the marketplace while enabling each employee to be rewarded based on merit. About RLC’s Global Diversity Leadership Group employees by work status 1 employees by geography 2 fiscal 2014 fiscal 2014 Our Global Diversity Leadership Group is comprised of seven Diversity Councils from all areas of the Company. This representative body strives to continue improving our workplace. Each Diversity Council works as a team to identify and address diversity-related organizational issues, and to explore ideas for action and solutions, as appropriate. Council members are trained on the principles of Strategic Diversity Management and engaged in continuous diversity-related education. Council members 39% 39% engage employees and are a valuable resource; they represent the voice of their respective division, function, and/or geography. The Diversity Councils meet regularly to continue identifying areas for additional action and to implement initiatives that have the greatest impact on diversity, such as management training, career 61% 61% development, communication, representation, and addressing cultural barriers. Diversity Engagement Initiatives: Global Diversity Website: Launched in 2009, the internal site functions as a virtual "global town square." It serves to educate employees about diversity while creating an online community where employees can share Full-time 61% Part-time 39% U.S. 61% International 39% their own thoughts about and experiences related to the subject of diversity. Additionally, the website encourages employees to participate in a vibrant, multimedia cultural exchange. An eclectic array of content— featuring ideas, videos, music, recipes, and literature —is contributed by employees from around the world. Heritage Celebrations: As part of our commitment to diversity and employee engagement, we recognize a variety of heritage months and important cultural celebrations, all of which are highlighted on our Global Diversity Website, including, but not limited to: Black History Month, Chinese New Year, Gay Pride Month, Hispanic Heritage Month, Women's History Month, and World Diversity Day. Diversity Training: We offer diversity training to our employees to maximize our organizational and their individual potential. The ultimate goal is to create a more diversity-mature workforce. Diversity training is an additional platform for employee engagement and outreach. In our training we encourage the sharing of learned skills and experiences. 1 2 30 Figures rounded to the nearest percentage. Figures rounded to the nearest percentage. 31 EMPLOY EES EMPLOY EES Global Culture Audit: Every three years, we conduct a comprehensive Culture Audit to measure changes in the favorability of our workplace culture. We engage a third-party consultant to conduct the survey and employees are invited to par ticipate in an anonymous and confidential workplace survey. The purpose of the Global Culture Audit is to evaluate the progress our Company has made in adapting its culture to support the effective management of diversity. FAIR EMPLOYMENT PRACTICE DEPARTMENT Our Fair Employment Practice (FEP) team was created in 2001 as a means of providing our employees with a place to voice their concerns about the workplace to an objective party. The department was established to Through the audit, employees have the opportunity to express how they feel about the workplace culture as ensure the consistent and equitable handling of all workplace issues across the Company globally, in order to it relates to a variety of topics such as, but not limited to, fairness, communication, equal opportunity, and ensure that all associates are treated in a fair and non-discriminatory way. teamwork. Town halls are held to share survey findings with employees. The survey helps us calibrate our ongoing initiatives and effor ts. FEP Mission Statement EMPLOYEE DEMOGRAPHICS Since people hold the key to achieving our business objectives, they constitute our most important asset. It is We survey our U.S. employee population by gender, and in accordance with the applicable laws, by ethnicity on a self-repor ted basis. 3 Our Fiscal 2014 survey shows that our U.S. workforce is balanced. With respect to gender, females comprise more than half of our employee population. 4 In addition, our U.S. workforce has a strong representation from a diverse set of ethnicities, with no one group comprising a majority of our total U.S. employee population. our policy to seek and employ the highest-qualified people for all of our teams. The Company provides equal opportunities for employment and advancement of employees, including promotion and training. We do not discriminate against any person because of race, color, religion, sex, gender, gender identity, sexual orientation, age, marital status, disability, ethnic or national origin, veteran status or any other characteristic protected by applicable law. FEP Core Responsibilities U.S. EMPLOYEES BY gender U.S. EMPLOYEES BY ethnicity fiscal 2014 fiscal 2014 Compliance: Ensure that all Company policies and/or local and federal workplace regulations are upheld. Investigation: Investigate all allegations of discrimination, harassment, and any other unfair treatment in 2% the workplace thoroughly and expeditiously. Understanding the sensitivities around many of these allegations, all information regarding specific incidents are kept confidential and on a business-need-to-know basis. The department also seeks to ensure that no employee is retaliated against for raising any concern. Equal Employment Opportunity (EEO) Training: Conduct appropriate levels of EEO training for the entire 40% 50% 48% 60% employee population. We are committed to fostering a workplace free of hostility and unfair treatment. We encourage the maintenance of a workplace environment that is positive and constructive in nature, to ensure that all of our employees are able to work to their highest potential. The FEP department remains committed and dedicated to this mission. Female 60% Male 40% White 50% Non-White 48% No Response 2% 3 4 32 Pursuant to the United States Equal Employment Opportunity Commission. All figures rounded to the nearest percentage. Reflects U.S. employees through Fiscal 2014. 33 EMPLOY EES EMPLOY EES GLOBAL TALENT MANAGEMENT WELLNESS We believe in the talent, creativity, and ingenuity of our people, and are committed to developing and expanding We aim to foster an environment that encourages total health and wellness for their scope of responsibility. all employees through education, opportunities and resources that promote a We seek to suppor t each of our employees throughout their career with the Company from day one. All new employees attend within their first month a one-and-a-half-day corporate orientation program. They also receive guidance from their manager, can enroll in the Co-Pilot Program (in which new employees are mentored by veteran employees), and share feedback in a 30-day survey about their first month with the Company. healthy lifestyle. We believe a work-life balance is essential, which is why we launched the RL Wellness program in November 2013. The RL Wellness program is one of the Company's newest initiatives focused on helping employees achieve optimal health and the ideal work-life balance. The program offers free on-site fitness classes, lunch-and-learn sessions with an array of experts, health-minded desk drops and discounts to local gyms, as well as several other Learning & Development opportunities for employees to participate. In the first two months of the RL Eight thousand employees received a free pedometer when RL Wellness launched in November of 2013. By the end of the year, a total of 665,660 steps had been recorded by participating employees. Wellness program, we distributed pedometers to 8,000 employees. We provide our employees with oppor tunities for engagement and development. We created the Ralph Lauren Learning Portal with the mission to provide education in an inspiring and comprehensive manner. The Ralph Lauren Learning Por tal provides employees around the world access to classroom-based or online EMPLOYEE RECOGNITION learning activities in such areas as Cultural Learning, Brand & Product, Professional Development, Business, The Legacy Awards were established in 2009 to recognize and honor employees and Systems & Technology. Courses are tailored to an employee's journey—with some courses directed at who have been with the Company for 10 or more years. Every December, an employee's first two weeks with the Company, others within the first 90 days, and many throughout their honored employees receive a letter from Mr. Lauren and participate in a special career with the Company. A sample of available training to all employees includes: team management skills, ceremony at our corporate headquarters in New York. Over the last five years, presentation skills, emotional intelligence, communication, business writing, situational leadership, as well as more than 3,300 employees around the world have been honored with a Ralph product training tools and learning an additional language. We take great pride in investing in an employee's Lauren Legacy Award. Of those, 167 were recognized for 25 years of service. ability to use various technologies and programs common in the apparel sector. In Fiscal 2014, 15,000 LIVING LEGACY Over the last f ive years, more than 3,300 employees around the world have been honored with a Ralph Lauren Legacy Award. attendees around the globe took advantage of Ralph Lauren Learning. BENEFITS Our benefits program is designed to provide qualifying employees with the resources they need to take care of themselves and their families. We offer an array of competitive health and welfare benefits as well as a 401(k) plan, commuter benefits plan, an employee assistance plan, and paid time off (vacation, sick/personal and holidays). Other competitive benefit offerings to all eligible employees include, but are not limited to: medical, prescription, dental and vision plans, flexible spending accounts, life, disability, critical illness, and accidental and business travel insurance. During 2013, we offered town halls to provide information about benefits and encourage proactive selection. 34 35 R ESPO NSIB LE SO U R C IN G RALPH LAUREN Responsible sourcing “I believe our Company continues to be successful because we care not only about the quality of our products, but first and foremost for the well-being and rights of the people who produce them all over the world.” — Ralph Lauren I n t hi s s e c t i o n : responsible Sourcing Overview Global Manufacturing & Sourcing Global Human Rights Compliance department ta b le o f c o n t en t s 37 GLOBAL MANUFACTURING & SOURCING At Ralph Lauren Corporation, our vendors and suppliers are our business partners. As a global corporation, we Our teams work together to achieve our goals, beginning with design, then product development, sourcing, require that all vendors and suppliers across all regions meet our corporate, social, and regulatory standards. quality assurance, human rights compliance, customs compliance, legal, manufacturing, finance and supply chain We are committed to producing high-quality products responsibly. We focus on strategic collaboration and compliance. These teams seek to ensure that all vendors and products are following our specifications and partnerships to increase information sharing and meaningful progress on human rights and the environment, regulations, as well as social and environmental guidelines. R ESPO NSIB LE SO U R C IN G R ESPO NSIB LE SO U R C IN G Responsible SOURCING OVERVIEW which we believe are essential to our success and our suppliers' success. Specifically, our sourcing teams work closely with our Global Human Rights Compliance (GHRC) department We believe it is our responsibility to source suppliers globally that exhibit best-in-class standards for quality when adopting new business partners. Since we contract for the manufacture of our products and do not own and compliance in the operations of their business. We contract for the manufacture of our products and do or operate any production facilities, we place the utmost importance on our vendor selection process. We look not own or operate any production facilities; as a result, our products are made by independent manufacturers. for suppliers that manufacture high-quality products with technical proficiency in safe workplace conditions with We recognize that these manufacturers are the stewards of their own businesses and must take a proactive competitive costs. By maintaining sourcing and quality-control offices in key regions, we are able to operate approach to continuous management of their operations. We work to foster positive business partnerships with under the close supervision of our Global Sourcing and Manufacturing division offices in the Americas, Europe, all contracted suppliers. and Asia. ralph lauren corporation contracted suppliers products Vendor Evaluation & Approval Process Our business partnerships begin when we work across our Company’s departments to focus on carefully and Over 700 different manufacturers worldwide produce our apparel, footwear, accessories, and home products at thoroughly vetting new vendors by evaluating several factors, such as: respect for human rights, environmental any given time, with no one manufacturer providing more than approximately four percent of our total production compliance, product safety and quality assurance, supply chain and customs compliance. As our supplier during Fiscal 2014. landscape evolves, every factor is weighed for careful consideration. High-quality and efficient manufacturing expertise is just as critical as high-quality workplace conditions and safety practices. regional sourcing distribution (FISCAL 2014) 1 1 Numbers represent percentage of manufacturing by region based on dollar volume in Fiscal 2014. Our Vendor Approval Process applies to all potential vendors, suppliers, factories and subcontractors intended to be involved in the manufacture of our products and their components. The Vendor Approval Process is guided by two main components: the Operating Guidelines, which serves as our supplier code of conduct, and the Vendor Compliance Packet, which is a comprehensive set of standard vendor contracts. All potential business partners are required to go through a rigorous selection process that involves thorough on-site evaluations. The on-site evaluation includes an inspection of all manufacturing entities, vendor offices, and factory and subcontractor facilities and is the basis of our vendor scorecard, which rates our vendors' manufacturing workmanship and quality capabilities, workplace conditions and human rights practices and policies, as well as customs compliance security practices. americas 9% emea 10% We also conduct a full financial review of the vendor for economic stability and potential supplier growth. In asia-pacific 81% addition to the certification of regulatory requirements within the Vendor Compliance Packet, we also require all business partners to sign our “Code of Ethical Conduct for Vendors and Third Party Service Providers,” which mandates compliance with our policies with respect to human rights, anti-bribery and corruption, self-dealing and fraud, and accurate record-keeping of product and environmental test reports, in order to protect the integrity of our products and our business practices for responsible sourcing. 1 38 Regional sourcing distribution represents percentage of manufacturing by region based on dollar volume in Fiscal 2014. 39 As a strong partner in our corporate efforts to source and manufacture responsibly, the GHRC team concentrates We have a robust Global Testing and Quality Assurance Program, which enforces a rigorous testing protocol to ensure that each product is tested at various stages of our supply chain and production to meet or exceed all applicable legal requirements and achieve superior quality and durability. All vendors, factories, subcontractors, third-party agents and subsidiaries that manufacture products for us are required to agree in writing with all R ESPO NSIB LE SO U R C IN G R ESPO NSIB LE SO U R C IN G Vendor Compliance & Restricted Substances significant effort in the evaluation and approval of new suppliers. We work in close partnership with the manufacturing and sourcing, quality assurance, customs compliance, and legal departments. The Vendor Approval Process and the Vendor Compliance Packet are the basis of our work with our new business partners. Starting with the on-site evaluation, we begin a process of continuous improvement. requirements in the Vendor Compliance Packet, including compliance with all applicable laws and regulations of Throughout the course of our business partnerships, each supplier is continuously evaluated and rated local and foreign jurisdictions relating to safety and restricted substances. In addition, all vendors must comply accordingly. Ratings are based on many factors including inherent country risks, business volumes, brand with the testing and production protocols of our Global Testing and Quality Assurance Program. management, quality and delivery, business reputation, and compliance. The ratings are communicated to relevant parties within the Company who analyze the ratings to be used when planning future strategies. GLOBAL HUMAN RIGHTS COMPLIANCE DEPARTMENT Vendor Compliance Packet We require our business partners to provide us with certain assurances and information set forth in our Vendor Last year marked the 15 th anniversary of the formation of our GHRC department. It was created to ensure that our suppliers’ operations throughout the world operate on the basis of principles of ethical business practices and recognition of the dignity of their workers and environmental sustainability. We take our responsibility seriously in ensuring safe, healthy, and ethical working conditions for the people around the world who make our products. Compliance Packet, which consists of contractual agreements including purchase order agreement language and a vendor profile. Given the current global business climate and vigorous enforcement efforts by governmental agencies with respect to international, national, and local laws and regulations, we are required to obtain certain assurances and information and we maintain this documentation in our Company records. Operating Guidelines 1 2 3 4 VENDOR APPROVAL PROCESS AUDITING AND MONITORING TRAINING AND REMEDIATION CONTINUOUS IMPROVEMENT AND CAPACITY BUILDING Our Operating Guidelines require all vendors, factories, subcontractors, and our licensees to comply with all laws pertaining to health and safety, wages and benefits, working hours and overtime, freedom of association, child labor, legal and ethical standards, environmental regulations as well as forced labor, prison labor, harassment and discrimination, unauthorized subcontracting, international customs, product safety regulations, conflicts of interest, and anti-bribery laws. The guidelines are translated into 32 languages and are distributed to every approved supplier for posting as a reminder of our mutual commitments, in plain view of workers and management. Our expectations of business partners are to respect and adhere to our Operating Guidelines as well as full compliance with the laws of their country of operations. This forms the basis of our social compliance monitoring program. We require that all vendors and suppliers across all regions meet our corporate, social, and regulatory standards. We carefully review all new facilities to determine if new suppliers meet our rigorous standards. After meeting our requirements, suppliers are placed into an auditing schedule. We regularly monitor our suppliers' facilities through third-party social audits. We then monitor them on a consistent basis. We work with our vendors and suppliers to continuously achieve compliance. Through training and remediation, we immediately work to address any problem we discover, analyze root causes, and continue to monitor the vendor or supplier closely until the problem is corrected. We continuously promote positive compliance through capacity building and factory efficiency trainings. We engage suppliers in Continuous Improvement Programs that include a systems assessment and review of all engineering and work flow processes by a third-party consultant. (See page 43 for the official guidelines.) Social Compliance Program Our ideal business partner strives to achieve efficiency and full compliance in their operations. We utilize several tools and programs in our efforts to improve factory standards. We regularly monitor our suppliers’ facilities through third-party social audits. The majority of our active suppliers are audited annually. When we learn of a potential problem at a supplier's facility, we work to address it immediately, conduct a root cause analysis and monitor the supplier closely until the problem is corrected. Our business partners must be fully transparent with all factory records during the social audit process. We have a “Supplier Transparency Initiative Program” that reinforces the need for transparent record keeping and provides tools for the factory to achieve this standard. 40 41 suppliers in Continuous Improvement Programs that include a systems assessment and review of all engineering and work flow processes by a third-party remediation consultant with industrial engineering capabilities. Creating greater ownership and efficiencies within the production process allows for better concentration in social compliance and environmental program trainings and sustainable improvements. We believe there is a strong OPERATING GUIDELINES LEGAL AND ETHICAL STANDARDS - Our business relationship is built on a mutual respect for and adherence to all legal requirements and the highest ethical standards. We expect our business par tners to obser ve all international standards, and national and local laws and regulations while operating their business. connection between a well-run, efficient factory and high compliance levels. WAGES, BENEFITS, WORKING HOURS AND TRANSPARENT RECORD KEEPING - Our business par tners must One of the most successful training initiatives we use is a program that focuses on training mid- to lower-level benefit policies must be consistent with prevailing national standards. Under ordinar y business circumstances, management. These managers learn essential skills to better manage the workforce and improve the overall employees must not be required to work excessive working hours per week, including over time, and have the factory environment. We also use vendor- and country-specific trainings that allow for greater and more valuable option of at least one day off in seven. We expect that all record keeping will be accurate and transparent at contributions. all times. Engaging the right stakeholders in the remediation process is necessary and requires a clear focus. We are committed to providing our suppliers with the proper tools, education, trainings and access to independent remediation associations or companies to develop sustainable improvements for management and workers alike. R ESPO NSIB LE SO U R C IN G R ESPO NSIB LE SO U R C IN G We promote sustainable compliance through capacity building and factory efficiency trainings. We engage comply with all laws regulating local wages, over time compensation, and legally mandated benefits. Wage and HEALTH AND SAFETY - Our business par tners must ensure that their employees are provided a safe and healthy work environment, and are not subject to unsanitar y or hazardous conditions. ENVIRONMENTAL SUSTAINABILITY - Our business par tners must embrace a fundamental concern for environmental protection and conduct their operations and services consistent with both applicable local laws Other Social Compliance Tools are: California Transparency in Supply Chains Act Our social compliance program incorporates the principles of the California Transparency in Supply Chains Act by working to prevent human trafficking and slave labor in all of our business par tners' facilities around the world. Better Work We par ticipate in the Better Work program in every country where it exists and where we manufacture. Better Work is an innovative partnership program between the International Labour Organization (ILO) and the International Finance Corporation (IFC). The program aims to improve both compliance with labor standards and competitiveness in global supply chains. and internationally recognized environmental best practices. They must also make progressive improvements by integrating principles of sustainability into their business decisions to operate more responsibly regarding natural resources, pollution prevention, and utilization of green technologies. CHILD LABOR - Our business partners must not use child labor, defined as employees under the age of 16. FORCED OR BONDED LABOR - Our business par tners will not work with or arrange for purchase of any materials or ser vices that suppor ts or utilizes forced or bonded labor. DISCIPLINARY PRACTICES - Our business par tners will not employ or conduct any business activity with par tners who employ any form of physical or mental coercion, or punishment or monetar y fines against employees. DISCRIMINATION AND HARASSMENT - Our business par tners will not practice any form of discrimination or Collaboration We collaborate with companies who share our high standards for compliance that are working in the same factories where we work in order to help align efforts to give the factory a more singular focus in addressing compliance issues. This helps reduce audit fatigue and provides common goals for the factory to achieve. Through industry collaboration, we can help suppliers meet our standards as well as create a positive impact. We continue to seek new and efficient ways to help monitor and train our suppliers and engage their workers. Our Affiliations are: Business for Social Responsibility This non-governmental organization has deep expertise in social and environmental issues across industries and regions and catalyzes change within business by integrating sustainability into strategy and operations, and promoting collaboration among companies and their stakeholders for systemic progress toward a just and sustainable world. American Apparel and Footwear Association This national trade association represents apparel, footwear and other sewn products companies, and their suppliers, which compete in the global market. 42 harassment in hiring and employment, based on race, color, religion, sex, gender, sexual orientation, age, marital status, disability, and ethnic or national origin. FREEDOM OF ASSOCIATION - Our business partners should respect the legal rights of employees to freely, and without harassment, participate in organizations of their choice. SUBCONTRACTING - Our business par tners may only subcontract to previously approved suppliers for manufacturing or ser vices according to our corporate requirements. All subcontracted suppliers must meet the same criteria as our direct contracted product and ser vice suppliers. CUSTOMS COMPLIANCE AND PRODUCT SAFETY - Our business partners must comply with applicable customs’ laws and regulations including, but not limited to, par ticipation in Customs-Trade Par tnership Against Terrorism Programs (C-TPAT) for all products and services as directed by the U.S. Depar tment of Homeland Security. In addition, all products must specifically meet all Consumer Product Safety Commission regulations and requirements including, but not limited to, the Consumer Product Safety Improvement Act of 2008 (“CPSIA”), and guarantee to abide by all international restrictions for Hazardous Substances. CONFLICTS OF INTEREST/ANTI-BRIBERY - Offering compensation of any value (gifts, discounts, ser vices, loans, payments) to any Ralph Lauren Corporation or affiliate employee, ser vice provider or government/political official to influence any act or decision to secure a business advantage is strictly prohibited. 43 CO MMU N ITY RALPH LAUREN COMMUNITY “I would love the legacy of this Company to be not only the beautiful products we made, but the way we thought about the world and tried to make it a better place…” — Ralph Lauren I n t hi s s e c t i o n community overview Cancer Care and Prevention Volunteerism Philanthropy Disaster Relief The Polo Ralph Lauren Foundation ta b le o f c o n t en t s 45 CO MMU N ITY CO MMU N ITY COMMUNITY OVERVIEW The Ralph Lauren Center provides prevention education and health information to the Harlem community and For decades, Ralph Lauren Corporation employees around the world have offered their time, resources, and cancer care and health outcomes in medically underserved populations similar to those served by the Ralph overall support for people in need. As our Company grows, so do our opportunities to make a difference. Lauren Center. Over the years, we have led a variety of philanthropic initiatives in support of programs for cancer care and prevention, education, and community building in underserved areas. beyond, and conducts research to help advance the understanding of the multiple factors that influence One of the cornerstones of the Ralph Lauren Center is its Patient Navigation Program pioneered by Dr. Harold Freeman, Founder and Chairman Emeritus of the Ralph Lauren Center. As part of this innovative program, each patient is assigned CANCER CARE AND PREVENTION a navigator as his or her personal advocate and problem solver, who provides Mr. Lauren and the Company have been leaders in the fight against cancer, steadfastly committed to raising Other key programs include Wellness and Survivorship—designed to help funds and suppor ting leading programs for cancer screenings, treatment, prevention, and patient navigation. patients and those close to them discover healthy ways to cope with the multiple After Mr. Lauren’s close friend and fashion editor of The Washington Post, Nina Hyde, was diagnosed with breast cancer, Mr. Lauren made a commitment to focus his philanthropic efforts on eradicating this devastating guidance through the complexities of the health care system. demands that cancer and the course of its treatment make upon them—and various outreach programs. disease. In 1989, with Katherine Graham of The Washington Post, Mr. Lauren co-founded the Nina Hyde Center for Breast Cancer Research at Georgetown University Medical Center in honor of his dear friend who lost her battle with the disease. THE PINK PONY CAMPAIGN In 2000, the Company designated its classic icon, the Polo Player, as the symbol for the Company’s Pink Pony In 1994, Mr. Lauren’s vision and energy inspired and helped mobilize the fashion industry to take a stand Campaign and sent models down the runway wearing Pink Pony shirts. This launched an important international against breast cancer. He designed the first “target” logo for the Council of Fashion Designers of America/CFDA initiative in the fight against cancer. Foundation’s successful Fashion Targets Breast Cancer initiative. The Fashion Targets Breast Cancer initiative was launched at a White House reception, which was hosted by then-First Lady Hillary Clinton. A percentage of the purchase price of Pink Pony products is donated to the Pink Pony Fund of the Polo Ralph Lauren Foundation (the Pink Pony Fund). In Fiscal 2014, 25 percent of the purchase price of Pink Pony products Organizations suppor ted by the Company to help in the fight against cancer include The Polo Ralph Lauren sold in the U.S. was donated to the Pink Pony Fund. Globally, 25 percent of the purchase price of Pink Pony Foundation, which has established the Pink Pony Fund to support cancer care and prevention, and the Ralph products supports cancer-related organizations in countries around the world: Lauren Center for Cancer Care and Prevention (the “Ralph Lauren Center”), which is an outpatient facility serving underserved populations in Harlem, New York City. THE RALPH LAUREN CENTER FOR CANCER CARE AND PREVENTION Established in 2003 in par tnership with Memorial Sloan-Kettering Cancer Center in New York City, the Ralph Lauren Center is a unique outpatient facility in Harlem. Over the past 10 years, the Ralph Lauren Center has cared for approximately 100,000 patients and 13,000 uninsured individuals from all five New York City boroughs. The modern, fully equipped 12,000-square-foot facility at Madison Avenue and 124th Street provides care, information, and intervention to those who might otherwise have nowhere to go—a purpose very personal to Mr. Lauren. “Seared in my childhood memor y,” he has said, “is one particular moment when my mother had a health scare and panicked about where she could turn for help.” It’s Mr. Lauren’s hope to prevent anyone else from experiencing such a helpless feeling. Specialists at the Ralph Lauren Center make treatment possible for a wide range of cancers, and all patients have access to pain management and palliative care services, as well as treatment of rare cancers through referrals to inpatient ser vices at Memorial Sloan-Kettering Cancer Center and other hospitals. 46 country beneficiary country beneficiary United States The Pink Pony Fund of The Polo Ralph Lauren Foundation Japan The Japan Cancer Society France AVEC Foundation Hong Kong & Macau Hong Kong Cancer Fund United Kingdom The Royal Marsden Cancer Charity Australia Cancer Australia Germany Komen Deutschland New Zealand New Zealand Breast Cancer Foundation Italy Lega Italiana per la Lotta contro I Tumoti Malaysia National Cancer Society Malaysia Bahrain Think Pink Spain Asociacion Española Contra El Cancer (AECC) UAE FOCP Sweden The Breast Cancer Foundation Korea Korea Breast Cancer Foundation Denmark Dansk Brystkraeft Organization Singapore Singapore Breast Cancer Society 47 CO MMU N ITY CO MMU N ITY The Pink Pony Fund of The Polo Ralph Lauren Foundation has benefited from a number of special partnerships, such as: Macy’s: In 2013, for the first time ever, Pink Pony apparel and accessories were sold in dedicated Pink Pony shops in select Macy’s stores. Additionally, Macy’s exclusively sold a Pink Pony pin in all of their doors that could be used as a shopping pass in stores. Pink Pony also partnered with Macy’s for regional events in Chicago, San Francisco, and Atlanta in support of Bright Pink, Breast Cancer Emergency Fund and Winship Cancer Institute at Emor y University. Chop’t Creative Salad Company: For the second year in a row, Chop’t Creative Salad Company (“Chop’t”) partnered with the Pink Pony Fund and offered a limited edition SuperSeasonal salad to benefit cancer care and prevention. During the month of October in both 2012 and 2013, Chop’t donated $2 from the sale of each Pink Goddess Salad and Pink Goddess Salad Sandwich in all Chop’t locations in New York, Washington, D.C., Maryland, and Virginia to the Pink Pony Fund. One Kings Lane: One Kings Lane par tnered with the Pink Pony Fund in 2013 to celebrate Ralph Lauren Home's 30 th anniversary. In October 2013, exclusive dog prints from Ralph Lauren Home’s archives were sold on the site, with $100 from the sale of certain prints benefiting the Pink Pony Fund. One Kings Lane also donated five percent of the purchase price of each Ralph Lauren Home item sold as part of the event to the Pink Pony Fund. Lauren Pink: The Lauren Pink capsule collection is carried exclusively at Belk, Dillard’s, and Lord & Taylor. The Company donated 10 percent of the purchase price of Lauren Pink products sold at Belk to Susan G. Komen. The Company also donated 10 percent of the purchase price of Lauren Pink products sold at Dillard’s and Lord & Taylor to the Pink Pony Fund. Tumblr: Since 2012, Tumblr has donated one of their Radar placements in October for an animated gif RETAIL EVENTS The Company hosts charity events at select retail locations around the world in order to raise awareness and funds in the fight against cancer. Our stores host charitable shopping events, where a percentage of sales is donated to local organizations. A selection of domestic stores that held charitable shopping events include: King of Prussia, Pennsylvania, benef iting Susan G. Komen Philadelphia New York, New York, benef iting the Lung Cancer Research Foundation Austin, Texas, benef iting The Seton Fund Chicago, Illinois, benef iting the Women’s Board of the University of Chicago Cancer Research Foundation PINK PONY DAY The Company celebrated its first annual Pink Pony Day in 2005, honoring the mission and passion of Pink Pony through celebrations held around the world for our employees. Most recently, the Company celebrated Pink Pony Day on October 24, 2013 and hosted fundraising events, such as product sales and a worldwide auction. Our employees were able to come together to make a difference to help the Company in its fight against cancer. All proceeds from Pink Pony Day employee activities worldwide benefit local charities. In 2013, multiple Ralph Lauren corporate offices from around the world participated, including: Australia, Hong Kong, India, Seoul, Shanghai, Singapore, Taiwan, Tokyo, Barcelona, Bologna, Geneva, London, Madrid, Milan, Paris, Portugal, Seville, Stockholm, Watford, Toronto, New Jersey, New York, North Carolina, and Panama City. Beneficiaries of Pink Pony Day 2013 included: AVEC (Paris) Josep Carreras Foundation (Spain and Portugal) post received more than 8 million impressions. Associazione Italiana per la Ricerca contro il Cancro (Milan and Bologna) Korea Breast Cancer Foundation (Korea) Polo Factory Stores: Our Polo Factory stores continue to support the Pink Pony Fund. A reusable organic cotton Breast Cancer Foundation (Singapore) created to promote Pink Pony. For ever y note the gif received, the Company donated $1 to the Pink Pony Fund, up to $25,000. For the second year in a row, the gif received 25,000 notes in less than 24 hours and the Pink Pony tote is sold in Polo Factor y stores with approximately $5 per bag sold benefiting the Pink Pony Fund. Customers have the oppor tunity to make a donation in the amount of their choice during checkout in Polo The Royal Marsden Hospital (London) Factory stores. Canadian Breast Cancer Foundation (Canada) Pink Pony Soft Ricky: The Pink Pony Soft Ricky Bag was created exclusively to support the Company’s Friends for an Earlier Breast Cancer Test (North Carolina) worldwide initiative in the fight against cancer. During October 2013, 50 percent of the purchase price from the limited-edition bag was directed to a network of cancer-related charities worldwide. Throughout the rest of the year, 25 percent of the purchase price was donated to a variety of cancer-related charities worldwide. High Point Regional Health System Foundation (North Carolina) Hong Kong Cancer Fund (Hong Kong) Japan Cancer Society ( Tokyo) 48 Ligue Genevoise Contre le Cancer (Geneva) MacMillan Cancer Support ( Watford) Pink Pony Fund (New Jersey and New York) Ralph Lauren Center For Cancer Care And Prevention (New Jersey and New York) Rangadore Memorial Hospital (India) Shanghai Cancer Recovery Club (China) Taiwan Breast Cancer Alliance ( Taiwan) The Swedish Breast Cancer Association (Stockholm) 49 CO MMU N ITY CO MMU N ITY VOLUNTEERISM For more than a decade now, Ralph Lauren Volunteers has empowered employees to create meaningful connections in the neighborhoods in which they work and live. It is part of our Company culture and values to lend a hand and help those in need. Ralph Lauren Volunteers was launched in 2000 in our New York and New Jersey corporate locations, with employees volunteering at non-profit organizations like God’s Love We Deliver and Habitat for Humanity. In recent years, Ralph Lauren Volunteers has grown and expanded to nearly every global corporate office location. Each year, thousands of Ralph Lauren Corporation employees around the world dedicate their time to making a difference. Whether by participating in the quarterly Ralph Lauren Gives Back weeks, joining a charity walk, holding drives to collect food, clothing and toys, or preparing meals for the needy, our employees put tremendous heart and spirit into lending a hand. Global Ralph Lauren Gives Back Week Organizations Include: Adopt-A-Beach San Diego AIDS Walk NYC Aigues-Vertes AISON Arance Della Salute Event Benef itting Associazione Italiana Per La Ricerca Sul Cancro Asociacion Nacional Amigos de los Animales Association for Educational Resources for Children at Risk Associazione Italiana Per La Ricera Sul Cancro Banco de Alimentos Madrid Bowery Mission Bright Hill Evergreen Home BRIS - Barnens ratt I Samhallet Caritas Carter Burden Center for the Aging Central Florida Charities Food Pantry 50 Chen Su Lan Methodist Children's Home Children Are Us Foundation City Harvest CityMeals-On-Wheels Clair Bois Colis du Coeur Community FoodBank of New Jersey Concrete Safari Guilford Education Alliance Habitat for Humanity Hans Andersen Club Hetrick-Martin Institute Hogar Don Orione Hong Kong Christian Services Hong Kong Red Cross Hong Kong Sheng Kung Hui Lady MacLehose Centre Emmaüs Hong Kong Young Women's Christian Association Fashion Delivers Hospital des Enfants Food Bank of Madrid Juan XIII Foundation Food Bank of New York Keep America Beautiful Great America Cleanup Foundation Foyer-Handicap Free Arts NYC Fundacion Juan XXIII God's Love We Deliver Grace Institute Greensboro Unity Ministry KIDS Project 2013 Kites Shanghai Community Center Korea Red Cross Leukemia & Lymphoma Society Nature Reservation Campaign 51 CO MMU N ITY CO MMU N ITY New Alternatives for Children Project Sunshine New Life Interactive Farm Ralph Lauren Center for Cancer Care and Prevention New Life Psychiatric Rehabilitation Association Numen School Nuture-Hogar NYC Service Only Make Believe Open Door Ministries Out of the Garden Project Pajama Program Partnership for Parks St. Francis Food Pantry & Shelter Stadsmissionen Recursos Educatius per la Infància en Risc Taipei Women’s Rescue Foundation Ronald McDonald House Taiwan Blood Services Room to Grow The Barnabas Network Salvation Army Triad Food Pantry Food Drive Second Harvest Food Bank Tunnel to Towers Foundation Societe Genevoise pour la Protection des Animaux UNICEF Someone Cares Soup Kitchen Special Olympics Union Settlement EDM artist Avicii launched a limited-edition, wearable MP3 Playbutton in an effort to raise awareness for the global fight against hunger. The artists, labels and publishers included on the Playbutton generously donated the rights to the use of their tracks. Additionally, Ralph Lauren Corporation made a donation to the FEED Foundation in honor of the collaboration. The FEED Foundation is dedicated to supporting programs and organizations that are effectively working to fight hunger and eliminate malnutrition in the world. The Playbutton launched exclusively in Denim & Supply Ralph Lauren shops and Macy’s stores nationwide, as well as on Macys.com and DenimandSupply.com. The Dog Walk: In October 2013, in conjunction with Adopt-a-Shelter-Dog Month in the U.S., Ralph Lauren Corporation partnered with the The American Society for the Prevention of Cruelty to Animals (ASPCA) to raise awareness for animal welfare. Internationally, the Company worked with a network of animal rescue organizations including the Battersea Dogs and Cats Home in the UK, Tiertafel Deutschland in Germany, SPA in France, Japan Animal Welfare Society (JAWS) in Japan, and the Korean Society for Animal Freedom in Korea. With a number of different collaborations, including a virtual runway show called The Dog Walk, which featured Watford FoodBank ASPCA rescue dogs presenting Ralph Lauren Fall 2013 Accessories, the Company's goal was to bring World Wide Fund for Nature awareness to animal adoption. Ralph Lauren Corporation donated 10 percent of the sales of select PHILANTHROPY Over the years, the Company has supported many philanthropic causes through events hosted in our stores, advocacy online at RalphLauren.com, and volunteerism in the communities in which we have a strong presence. The Company provides suppor t for a variety of causes and organizations that reflect our commitment to preserving histor y and the ar ts for future generations. The Company has provided generous donations to restore the Star-Spangled Banner, the Compass Rose Mural in Nantucket, Massachusetts, and Mulford Farm in East Hampton, New York. merchandise featured in The Dog Walk video to animal welfare organizations. RL Gang: Ralph Lauren Corporation produced three installments of RL Gang, a virtual book that introduced the season's childrenswear collections. Each book featured a celebrity narrator (Harry Connick, Jr., Uma Thurman and John Legend), and proceeds from the sale of hard copies of the book benefitted each celebrity’s charity of choice. Beneficiaries included the Ellis Marsalis Center for Music (EMCM), Room to Grow and the Show Me Campaign. Save America’s Treasures: In 1998, Ralph Lauren Corporation pledged $13 million to Save America’s Treasures for the Smithsonian’s National Museum of American History to preserve and protect the Star-Spangled Banner, the flag that inspired Francis Scott Key to pen the U.S. national anthem. At the time, the Company’s donation was the largest corporate gift ever received by the Smithsonian Institution in its 150-year history. The Walks for Charity: Ralph Lauren Corporation employees donate their time to participate in events like Light conservation efforts were part of Save America’s Treasures, a public-private partnership that includes the the Night (benefiting the Leukemia and Lymphoma Society), Race to Deliver (benefiting God’s Love We Deliver), National Trust for Historic Preservation, the National Park Service, the President’s Committee on the Arts and Bike MS – Nor th Carolina (benefiting the National MS Society), Relay for Life – North Carolina (benefiting the the Humanities, and the federal cultural agencies. The project took nearly a decade and required a team of American Cancer Society) and the AIDS Walks in New York City and San Francisco (benefiting organizations highly skilled professionals. Today the beloved American icon is on display at the Smithsonian National that support HIV/AIDS prevention, care and advocacy). With a partnership dating back to 2001, Ralph Lauren Museum of American History in a gallery specially created to provide the proper temperature, humidity, light, Corporation is the oldest sponsor of AIDS Walk NYC. and oxygen levels. Give in Style: Ralph Lauren Corporation, in conjunction with RalphLauren.com, launched a new concept in École Nationale Supérieure Des Beaux-Arts: In 2013, the Ralph Lauren Corporation made a commitment to 2009 called Give in Style—an invitation-only charitable sale designed to raise funds for a variety of causes. restore the elite L’École des Beaux-Arts in Paris, one of the most influential art schools in France. The During the campaign, Ralph Lauren Corporation donated $100,000 to the Pink Pony Fund, which supports renovation will help bring the institution’s teaching capabilities into the 21st century while also preserving the cancer care and prevention. classical Beaux-Arts style for future generations. Funds donated by Ralph Lauren Corporation will be The Eco-Friendly Reusable Tote: Since 2011, Polo Factory Stores have produced an eco-friendly reusable tote made from 100 percent organic cotton. Approximately $5 from the sale of each tote is donated to The Polo Ralph Lauren Foundation in suppor t of its various philanthropic initiatives, including the Pink Pony Fund, to help in the fight against cancer. 52 House For Hunger Denim & Supply Ralph Lauren Playbutton: Denim & Supply Ralph Lauren and renowned designated to restore the Amphithéâtre d'Honneur, the semi-circular lecture theatre at the heart of the school. The theatre will be fully updated to include state-of-the-art audiovisual equipment and improved stadium seating. The Company’s funding will also be used to modernize the school’s website with a series of digital content providing global audiences with access to a multitude of conferences, workshops, symposiums, and new online classes, placing the institution at the forefront of the contemporary art world. 53 CO MMU N ITY CO MMU N ITY East Hampton Historical Society: Through a partnership with the East Hampton Historical Society, the Jeffery Fashion Cares Museum of Modern Art still-standing structures in the nation. The donation allowed the East Hampton Historical Society to revamp The John F. Kennedy Center for the Performing Arts New Canaan Library, Inc. Company made a four-year commitment to the preservation of the Mulford Farm homestead, one of the oldest and complete their goal of restoring the farm to its Revolutionary War-era glory. In addition, the Company benefitted the restoration of the barns and landscape at Mulford Farm. Over a period of five years (2014 - Juvenile Diabetes Research Foundation 2018), the Company will fulfill a second commitment to the East Hampton Historical Society. This donation Legal Momentum will fund the transpor t and restoration of the Hedges Barn, a historic barn that will soon reside on the Mulford Ligue Genevoise Contre le Cancer designed a limited-edition East Hampton Historical Society product as a part of this partnership, which Farm proper ty. As a par t of this partnership, Ralph Lauren Corporation will again design limited-edition East Hampton Historical Society product. Nantucket Historical Association: In the fall of 2007, Ralph Lauren Corporation partnered with the Nantucket Historical Association (NHA) to restore the Compass Rose Mural at Gardiner’s Corner, a beloved Nantucket landmark, which adorns the side of Ralph Lauren’s Nantucket store. In honor of Ralph Lauren Corporation’s partnership with the Nantucket Historical Association, the Company designed Compass Rose t-shirts and hats Lincoln Center for the Performing Arts Lung Cancer Research Foundation New School New Yorkers for Children, Inc. NY Philharmonic NY Public Library NY Women in Communication Orchestra of St. Lukes Phoenix House Pratt Institute Royal Marsden Cancer Charity Tory Burch Foundation Turtle Conservancy UJA Federation Whitney Museum of American Art World of Children YMA DISASTER RELIEF PHILANTHROPY CONTRIBUTIONS Ralph Lauren Corporation has a tradition of responding when disaster strikes, contributing to relief efforts In aggregate, the Company's philanthropic and community-building activities have had a significant impact. following major tragedies worldwide. Collectively, the Company has helped victims of major hurricanes, Over the past few fiscal years (Fiscal 2011 - Fiscal 2014), the Company's philanthropic contributions in cash earthquakes and other natural disasters. and products have totaled $25 million. These contributions have been made to a variety of causes, including those in line with our philanthropic mission of supporting cancer care and prevention, underserved communities, and education. In October of 2012, the East Coast was left devastated by Hurricane Sandy. Ralph Lauren Corporation supported relief efforts by working with the American Red Cross Disaster Relief Fund. The Company made a donation and The Polo Ralph Lauren Foundation matched Company employee contributions to the American Red Cross. Other Select Organizations Ralph Lauren Corporation Has Historically Supported: Company employees also dedicated their time to help rebuild areas of destruction. Additionally, The Polo Ralph Lauren Foundation donated a total of $1 million to organizations aiding in disaster relief, including the Robin A Better Chance CFDA Frick Collection American Friends of Jamaica, Inc. Children’s Defense Fund Fund in the Sun Dress for Success Fundacion Sandra Ibarra East Side House Settlement Gordon Parks Foundation Empire State Pride Agenda Harlem YMCA Fashion Delivers HBC Foundation Fashion Group Inc. Hetrick-Martin Institute Fashion Institute of Technology Houseware Charities Father’s Day Mother’s Day Council Inner City School of these tragedies, the Company partnered with the American Red Cross and local relief organizations to provide much needed resources and support. Figure Skating in Harlem International Yacht Restoration School Gala Food Allergy Initiative, Inc. Japan Cancer Society Mr. Lauren designed a shirt for Fashion For Relief. All proceeds from the shirt were donated to AmeriCares, a American Heart Association American Jewish Committee amfAR Asociacion Infantil Oncologica Autism Speaks Baby2Baby Canadian Breast Cancer Foundation Cancer Research UK CancerCare 54 Ronald McDonald House YWCA NYC for men, women, and children with 100 percent of the purchase price benefiting the NHA. This product is exclusively available at the Ralph Lauren Nantucket store. Ralph Lauren Center for Cancer Care and Prevention Hood Relief Fund; the American Red Cross; the Hurricane Sandy NJ Relief Fund; United Way of Westchester, Connecticut, and Long Island; and Newark Now. In previous years, Ralph Lauren Corporation and United Way presented the Haiti Relief Polo Shirt and the Japan Hope Polo Shirt, where 100 percent of proceeds were donated to the humanitarian effort in Haiti through the United Way Worldwide Disaster Fund, and in Japan through the Central Community Chest of Japan, a part of the United Way worldwide network. In addition, the Company made a donation and matched employee contributions to the United Way Worldwide Disaster Fund and the Central Community Chest of Japan. It also donated clothing and engaged employees in a global clothing drive in conjunction with Fashion Delivers. Prior to the devastations in Haiti and Japan, the Company and its employees were quick to respond in the aftermath of the Indian Ocean earthquake and tsunami in 2004 and the earthquake in China in 2008. In each After Hurricane Katrina in 2005, in addition to Company and employee support to the American Red Cross, disaster relief and humanitarian aid organization that continues to support the victims of the hurricane. 55 CO MMU N ITY CO MMU N ITY THE POLO RALPH LAUREN FOUNDATION Established in April 2001, The Polo Ralph Lauren Foundation (the Foundation) is a charitable organization with a mission to suppor t programs for cancer care and prevention, education, and community building in underserved areas. EDUCATION One way in which the Foundation is working to build stronger communities is through education. By providing grants and volunteering with local schools, the Foundation provides opportunities that contribute to a positive learning experience, critical to the success of students. The Foundation’s efforts to support education are focused on students in challenging situations and schools in SELECT BENEFICIARIES OF THE POLO RALPH LAUREN FOUNDATION: underprivileged communities. The Foundation strives to enhance and enrich overall academic experiences and student achievement. AIDS Walk Leukemia and Lymphoma Society American Jewish Committee Lincoln Center Theatre American Red Cross New Alternatives for Children amfAR P.S. Arts Baby2Baby Project Sunshine Children’s Diabetes Foundation Ralph Lauren Center for Cancer Care and Prevention The American Heroes Fund of the Foundation, which is described in greater detail on the next page, continues Robin Hood Foundation provide opportunities for these students, as they reach college age. City Harvest City Parks Foundation East Harlem School Elton John AIDS Foundation Excellence Charter School of Bedford Fashion Delivers Free Arts for Abused Children God ’s Love We Deliver Room to Grow St. Francis Food Pantry Studio in a School Hetrick-Martin Institute The Nature Conservancy United Way Worldwide The Foundation has awarded grants to schools in nearby communities, providing funding for a variety of programs, such as summer semesters, school uniforms, and HIV/AIDS prevention. Selected schools include: The East Harlem School at Exodus House in New York City Excellence Charter School of Bedford Stuyvesant in Brooklyn, New York Hetrick-Martin Institute, Home of the Harvey Milk School in New York City to grant scholarships to children of victims of the attacks of September 11, 2001. The program will continue to American Heroes Fund The Foundation established the American Heroes Fund in the days following the 9/11 attacks to allow Ralph Lauren Corporation employees worldwide, as well as the Company’s customers and related business partners, to participate in the relief effort. The Company matched employee contributions dollar-for-dollar and donated 10 percent of customer purchases at Ralph Lauren stores and on its Internet site during the month of October 2001. The American Heroes Fund is a 20-year commitment between the Foundation and Scholarship America that provides annual scholarships for postsecondary study for the children of those killed or permanently disabled as THE PINK PONY FUND OF THE POLO RALPH LAUREN FOUNDATION The Pink Pony Fund aims to reduce disparities in cancer treatment and to increase access to screening, education and quality care in medically underserved communities. Some of the beneficiaries of the Pink Pony Fund include the Ralph Lauren Center for Cancer Care and Prevention, Breast Cancer Research Foundation, Ovarian Cancer Research Fund, and Women’s Cancer Research Fund. a result of the 9/11 attacks. Recipients must have financial need and may attend postsecondary institutions in the U.S. or abroad. Awards are available for undergraduate study only. Scholarships from the American Heroes Fund are awarded at the amount of $4,000 per year. Approximately 31 scholarships are awarded annually from the American Heroes Fund. The agreement between the Foundation and Scholarship America indicates the fund will last for 20 years. The American Heroes Fund is distributed through the Families of Freedom Scholarship Fund, which was established to benefit the dependents of deceased and permanently disabled victims of the 9/11 attacks. The Families of Freedom Scholarship has awarded more than $86.6 million to 2,186 students ($1.25 million of which represents the contribution from the American Heroes Fund, distributed to 276 students). 56 57