CORPORATE CORPORATE SOCIAL SOCIAL

RESPONSIBILITYRESPONSIBILITY

SHRESTHA RUNTHALASHRESTHA RUNTHALASURBHI MODISURBHI MODI

Social responsibility in the textile industry

Textiles firms are slowly realizing their responsibility towards various industries associated with them and the environment.

The ways in which a textile firm can fulfill its responsibilities is similar to others firms:

Towards employees: • Providing a competitive and

challenging work environment. • Having ethical recruitment,

remuneration, promotion and other policies

• Providing opportunities to voice their opinion and complaints and have an effective policy for the solution of these complaints.

• Ensuring a safe working environment.

Towards shareholders: • Representing a fair picture of the company’s financial position

and profit/loss to the shareholders• Paying them a fair rate of dividend

Towards the government: • Providing the necessary information to the government as and

when required • Making payment of the due taxes and duties at the proper

time • Abiding by the laws and regulations of the area in which the

firm operates.

Towards customers: • Providing quality products to the customers at reasonable

prices • Undertaking constant R&D and coming up with innovative and

more useful products from time to time

Towards investors: • Giving the investors a true and fair picture of the financial

condition of the business. • Giving them due returns on the investment made by them.

Towards suppliers • Making competitive payment to the

suppliers for the products purchased from them.

• Maintaining a good relationship with the suppliers.

Towards competitors: • Indulging in ethical and healthy competition

Towards society: • Undertaking community development and

area development programmes. • Undertaking charity work for the

underprivileged sections of the society. • By creating job opportunities.

Towards environment: • Ensuring the purchase of environment-

friendly supplies. • Ensuring a pollution-free process of

production • Having an efficient system for the disposal

of waste • Making the product and the process of

production as environment-friendly as possible.

• Adopting eco-friendly packaging.

OverviewOverview From its founding in 1856, From its founding in 1856,

Burberry has become a leading Burberry has become a leading luxury brand with a global luxury brand with a global business.business.

The Burberry brand is defined The Burberry brand is defined by its:by its:• Authentic British heritageAuthentic British heritage• Unique democratic Unique democratic

positioning within the luxury positioning within the luxury arenaarena

• Founding principles of Founding principles of quality, function and modern quality, function and modern classic style, rooted in the classic style, rooted in the integrity of its outerwearintegrity of its outerwear

• Globally recognised icon Globally recognised icon portfolio: the trench coat, portfolio: the trench coat, trademark check and trademark check and Prorsum horse logo.Prorsum horse logo.

Burberry has always sought to achieve the high quality standards. This focus is an integral part of the brand to ensure that Burberry is recognized as much for operational excellence as it is for its luxury products.

Putting Corporate Social Responsibility at the heart of Burberry's business practices is a key part of this philosophy.

Burberry's current approach Burberry's current approach to tackle challenging issues, to tackle challenging issues, & some achievements in & some achievements in 2009/10:2009/10:

30% increase in visits to product 30% increase in visits to product suppliers' factories over prior year to suppliers' factories over prior year to 634 634

Launched Sustainability Leaders Launched Sustainability Leaders Initiative across the business Initiative across the business

Continued to reduce their COContinued to reduce their CO22 emissions emissions from the Group's buildings by a further from the Group's buildings by a further 9% per £1,000 of turnover 9% per £1,000 of turnover

Committed to purchasing 29% of all Committed to purchasing 29% of all their UK electricity from Combined Heat their UK electricity from Combined Heat and Power and renewable sources in and Power and renewable sources in 2010.2010.

Burberry is included in the FTSE4Good Burberry is included in the FTSE4Good Indices and is a signatory of the UN Indices and is a signatory of the UN Global Compact. Global Compact.

Burberry embraces, supports and enacts Burberry embraces, supports and enacts the ten UN Global Compact principles of the ten UN Global Compact principles of human rights, labour standards, the human rights, labour standards, the environment, and anti-corruption. environment, and anti-corruption.

One of Burberry's five strategic themes is One of Burberry's five strategic themes is pursuing operational excellence. pursuing operational excellence. Operational excellence in CR has five key Operational excellence in CR has five key areas of focus:areas of focus:

Healthy business partnershipsHealthy business partnerships: : based on shared values and high ethical based on shared values and high ethical standards.standards.

Excellent products and serviceExcellent products and service: : quality, craftsmanship, heritage and quality, craftsmanship, heritage and service standards.service standards.

Environmental excellenceEnvironmental excellence: operating : operating

efficiently with minimum waste and efficiently with minimum waste and maximum control .maximum control .

Excellence in people managementExcellence in people management: : attracting and retaining talented attracting and retaining talented employees.employees.

Contributing to societyContributing to society: investing and : investing and engaging in the communities where engaging in the communities where Burberry operatesBurberry operates

Ethical trading: supply chainEthical trading: supply chain Monitoring the supply chainMonitoring the supply chain Burberry’s products are made in Burberry’s products are made in

factories that comply with local factories that comply with local labor and environmental laws and labor and environmental laws and by workers who work fair but not by workers who work fair but not excessive hours; are provided with excessive hours; are provided with a safe and hygienic work a safe and hygienic work environment; and who can exercise environment; and who can exercise their right to freedom of association their right to freedom of association and collective bargaining.and collective bargaining.

All new Burberry suppliers, All new Burberry suppliers, regardless of location, are approved regardless of location, are approved by the CR team prior to production by the CR team prior to production taking place.taking place.

All Burberry suppliers are governed All Burberry suppliers are governed by its Ethical Trading Policy that by its Ethical Trading Policy that sets clear expectations regarding sets clear expectations regarding issues like living wage, child labour issues like living wage, child labour and regular employment. and regular employment.

A team regularly visits factories to A team regularly visits factories to assess their performance related assess their performance related to Burberry's Ethical Trading to Burberry's Ethical Trading Policy and develops factory Policy and develops factory improvement plans based on their improvement plans based on their findings.findings.

Burberry is a member of Business Burberry is a member of Business for Social Responsibility (BSR) and for Social Responsibility (BSR) and a founding member of the BSR a founding member of the BSR Luxury Brands working group.Luxury Brands working group.

The group was established to The group was established to explore common approaches to explore common approaches to collectively address material CR collectively address material CR issues specific to the luxury sector issues specific to the luxury sector like the use of exotic skins. The like the use of exotic skins. The Group is currently developing an Group is currently developing an animal welfare policy for working animal welfare policy for working group members. group members.

Product and supply chain Product and supply chain standards standards

Burberry strives to achieve the highest quality standards in all components Burberry strives to achieve the highest quality standards in all components and stages of its supply chain process.and stages of its supply chain process.

LeatherLeatherBurberry joined the BLC Leather Working Group to have a clear Burberry joined the BLC Leather Working Group to have a clear understanding of environmental impact of tanneries, investigate the understanding of environmental impact of tanneries, investigate the possibility of hide traceability and collaborate with other brands and possibility of hide traceability and collaborate with other brands and tanneries to improve environmental standards within the leather industry. tanneries to improve environmental standards within the leather industry. Burberry supports the working group's efforts to ensure the preservation of Burberry supports the working group's efforts to ensure the preservation of the Amazon Biome (rainforest).the Amazon Biome (rainforest).

FurFurBurberry believes that any materials derived from animals should be Burberry believes that any materials derived from animals should be produced without inflicting cruelty or threatening the environment. For this produced without inflicting cruelty or threatening the environment. For this reason, Burberry does not source such materials from China. Fur is reason, Burberry does not source such materials from China. Fur is principally sourced from SAGA furs which is known for upholding high principally sourced from SAGA furs which is known for upholding high standards of ethical treatment of animals and shares the Group's concerns standards of ethical treatment of animals and shares the Group's concerns about animal welfare.about animal welfare.

Uzbek cottonUzbek cottonFollowing the deeply concerning reports relating to alleged forced child Following the deeply concerning reports relating to alleged forced child labour in the Uzbekistan cotton industry, Burberry has taken steps to labour in the Uzbekistan cotton industry, Burberry has taken steps to exclude Uzbek cotton from its supply chain. In progress is a cotton exclude Uzbek cotton from its supply chain. In progress is a cotton traceability project related to Uzbek cotton and other raw materials.traceability project related to Uzbek cotton and other raw materials.

Environmental performanceEnvironmental performance Burberry is committed to reducing its environmental footprint Burberry is committed to reducing its environmental footprint

throughout its global operations. It plays an important role in throughout its global operations. It plays an important role in ensuring that its environmental impact is minimized in the ensuring that its environmental impact is minimized in the countries from where it sources materials.countries from where it sources materials.

Strong environmental performance is important to Burberry Strong environmental performance is important to Burberry employees, customers and future generations & it is good for employees, customers and future generations & it is good for business as it ultimately improves efficiency and leads to cost business as it ultimately improves efficiency and leads to cost savings. savings.

Burberry established a Burberry established a Global Sustainability CommitteeGlobal Sustainability Committee in in 2009 where every region or function of the business is 2009 where every region or function of the business is represented by a nominated Sustainability Leader.represented by a nominated Sustainability Leader.

Burberry regularly communicates its revised Global Burberry regularly communicates its revised Global Environmental Policy to all vendors and integrates Environmental Policy to all vendors and integrates environmental best practices directly into Non-Stock environmental best practices directly into Non-Stock Procurement procedures and contractual negotiations.Procurement procedures and contractual negotiations.

2009/10 environmental 2009/10 environmental performance resultsperformance results

Energy:Energy: Reduced CO2 emissions from the Group's buildings by Reduced CO2 emissions from the Group's buildings by

9% per £1,000 of turnover.9% per £1,000 of turnover. Committed to purchasing 29% of the Group's UK Committed to purchasing 29% of the Group's UK

electricity from CHP and renewable sources in the electricity from CHP and renewable sources in the 2010 calendar year to drive demand for renewables in 2010 calendar year to drive demand for renewables in the UK the UK

Installed 'Solar Control Window Film' in the new Installed 'Solar Control Window Film' in the new Burberry Americas headquarters in New York, with a Burberry Americas headquarters in New York, with a projected annual savings of close to 300,000 kWh.projected annual savings of close to 300,000 kWh.

Implemented an automated PC shut-down system on Implemented an automated PC shut-down system on

the Burberry network worldwide to save energy the Burberry network worldwide to save energy overnightovernight

Packaging:Packaging: Launched a new Established range of consumer Launched a new Established range of consumer

packaging made with paper from sustainably managed packaging made with paper from sustainably managed forests and 100% elemental chlorine free.forests and 100% elemental chlorine free.

Logistics transport emissions:Logistics transport emissions: Continued to pursue a programme to divert freight to Continued to pursue a programme to divert freight to

sea from air driving reductions in carbon emissionssea from air driving reductions in carbon emissions

Business travel:Business travel: Reduced air travel for UK employees by 10% per £1,000 of turnover, through Reduced air travel for UK employees by 10% per £1,000 of turnover, through

utilisation of virtual meetings via video conferencing facilities.utilisation of virtual meetings via video conferencing facilities.

Waste:Waste: Renewed focus on increasing recycling globally. In the UK, recycling has Renewed focus on increasing recycling globally. In the UK, recycling has

increased to 47% of the total waste produced.increased to 47% of the total waste produced. Developed a closed loop textile recycling system in the UK. The Group's global Developed a closed loop textile recycling system in the UK. The Group's global

recycling partner converts sample and raw material waste into car door recycling partner converts sample and raw material waste into car door insulation.insulation.

Digitalisation:Digitalisation: Converted lookbooks from paper to digital – used by buying teams and Converted lookbooks from paper to digital – used by buying teams and

wholesale customers to choose products. This is estimated to save 32 tonnes of wholesale customers to choose products. This is estimated to save 32 tonnes of paper and £70,000 annually. paper and £70,000 annually.

Digitised visual merchandising props ordering process for regional teams Digitised visual merchandising props ordering process for regional teams Information technology. Information technology.

Launched an online environmental data management system to cover 100% of Launched an online environmental data management system to cover 100% of Burberry's global sites.Burberry's global sites.

Excellence in peopleExcellence in people A commitment to diversity and A commitment to diversity and

respect for all is a key foundation respect for all is a key foundation underlying the Burberry culture.underlying the Burberry culture.

Burberry's global nature is Burberry's global nature is reflected not only through its reflected not only through its geographic footprint, but also geographic footprint, but also through its workforce. In the global through its workforce. In the global headquarters at Horseferry House, headquarters at Horseferry House, Burberry employs nationals of 39 Burberry employs nationals of 39 different countries from the five different countries from the five continents.continents.

Women make up a large part of the Women make up a large part of the workforce in all parts of the workforce in all parts of the organisation, from its organisation, from its manufacturing sites through to its manufacturing sites through to its headquarters (70% women). headquarters (70% women).

Health and safetyHealth and safety As a core priority, Burberry continues As a core priority, Burberry continues

to ensure a to ensure a healthy and safe healthy and safe environment for all employees environment for all employees and customersand customers. There is a formal . There is a formal health and safety audit process and health and safety audit process and programme that ensures all Burberry programme that ensures all Burberry manufacturing sites and distribution manufacturing sites and distribution centres are audited at least annually centres are audited at least annually with major offices and retail with major offices and retail locations audited at least once every locations audited at least once every three years. three years.

To further strengthen this area, a To further strengthen this area, a Corporate Health and Safety Corporate Health and Safety Manager further develop the Global Manager further develop the Global management system and related management system and related training programmes. training programmes.

Community investmentCommunity investment Ongoing investment in the communities where the majority Ongoing investment in the communities where the majority

of employees live and work remains a key element of the of employees live and work remains a key element of the Burberry Corporate Responsibility strategy. Burberry Corporate Responsibility strategy.

The Burberry FoundationThe Burberry Foundation An extension of the tradition of philanthropy at the Company, An extension of the tradition of philanthropy at the Company, the the

Burberry FoundationBurberry Foundation provides a strategic platform for provides a strategic platform for Burberry's community engagement and builds charitable giving in Burberry's community engagement and builds charitable giving in its regions.its regions.

Established in 2008, the Foundation is dedicated to helping young Established in 2008, the Foundation is dedicated to helping young people realise their dreams and potential through the power of people realise their dreams and potential through the power of their creativity.their creativity.

The Foundation's goals are to help young people to:• gain confidence in their daily lives and develop self-

esteem • build connections to their families, friends, partners

and society at large • develop the ability to reach for opportunities in school,

work and life The Foundation receives donations from Burberry and other The Foundation receives donations from Burberry and other

benefactors to award strategic grants and make targeted benefactors to award strategic grants and make targeted donations of in-kind gifts. donations of in-kind gifts.

In 2009/10, the Group's donations to the Foundation amounted to In 2009/10, the Group's donations to the Foundation amounted to £800,000 in cash and more than £150,000 in-kind. These £800,000 in cash and more than £150,000 in-kind. These contributions enabled the Foundation to support charities in contributions enabled the Foundation to support charities in Boston, Chicago, Hong Kong, London, Los Angeles, New York, San Boston, Chicago, Hong Kong, London, Los Angeles, New York, San Francisco and Seoul.Francisco and Seoul.

Employee engagementEmployee engagement Burberry employees are Burberry employees are

encouraged to further support the encouraged to further support the Foundation's grant recipients Foundation's grant recipients through the Company's through the Company's employee employee engagement programmeengagement programme, which , which allows staff to take up to four hours allows staff to take up to four hours per month of paid leave to per month of paid leave to volunteer with any one of the volunteer with any one of the Foundation's charity partners Foundation's charity partners around the world.around the world.

In 2009/10, employees volunteered In 2009/10, employees volunteered more than 3,500 hours of time.more than 3,500 hours of time.

A significant part of Burberry's A significant part of Burberry's employee engagement efforts this employee engagement efforts this past year was dedicated to job past year was dedicated to job training programmes for young training programmes for young people in London and New York people in London and New York City. City.

In-kind donationsIn-kind donationsBurberry donates products to the Burberry Foundation for Burberry donates products to the Burberry Foundation for distribution to charities in its grants portfolio. distribution to charities in its grants portfolio.

Corporate donationsCorporate donationsEach regional office has a discretionary charity budget which is Each regional office has a discretionary charity budget which is managed and approved locally.managed and approved locally.

Disaster reliefDisaster reliefIn response to the catastrophic earthquake in Haiti on 12 January In response to the catastrophic earthquake in Haiti on 12 January 2010, Burberry and its employees donated over £149,250 to British 2010, Burberry and its employees donated over £149,250 to British and International Red Cross agencies around the globe to assist and International Red Cross agencies around the globe to assist with its relief and reconstruction efforts.with its relief and reconstruction efforts.

Future FocusFuture Focus Burberry is proud of its long Burberry is proud of its long

history of exploration, In line history of exploration, In line with this, they will continue with this, they will continue to push to achieve the very to push to achieve the very highest quality standards in highest quality standards in corporate responsibility corporate responsibility improving factory conditions improving factory conditions at all levels of the supply at all levels of the supply chain, drive environmental chain, drive environmental sustainability and invest in sustainability and invest in global communities.global communities.

THANK YOUTHANK YOU

DO GOOD. FEEL GOOD.DO GOOD. FEEL GOOD.