R A L P H L A U R E N CITIZENSHIP report 2013

Transcription

1 RALPH LAUREN CITIZENSHIP report 2013

2 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 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 filings 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 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 from 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 fiscal year ended March 29, 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

3 RALPH LAUREN CITIZENSHIP report table of contents 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 fiscal or calendar year format. References to fiscal year will be represented as follows: Fiscal followed by the year; for example, Fiscal References to calendar year will be represented by the year alone; for example, We utilize a week fiscal year ending on the Saturday closest to March 31. All references to "Fiscal 2014" represent the 52-week fiscal year ended March 29, All references to Fiscal 2013 represent the 52-week fiscal year ended March 30, All references to Fiscal 2012 represent the 52-week fiscal year ended March 31, All references to Fiscal 2011 represent the 52-week fiscal year ended April 2, All references to Fiscal 2010 represent the 53-week fiscal year ended April 3, All references to Fiscal 2009 represent the 52-week fiscal year ended March 28,

4 RALPH LAUREN about ralph lauren corporation ABOUT RALPH LAUREN CORPORATION What I do is about living. Ralph Lauren In this section company highlights about ralph lauren corporation overview our operating segments our products & brands table of contents 5

5 ABOUT RALPH LAUREN CORPORATION Company Highlights ABOUT RALPH LAUREN CORPORATION 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 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. Ralph Lauren Home 1981 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 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. 6 7

6 ABOUT RALPH LAUREN CORPORATION 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. ABOUT RALPH LAUREN CORPORATION Our Operating Segments We operate in three distinct but integrated segments: Wholesale, Retail, and Licensing. Wholesale Sales made principally to major department stores and specialty stores around the world. Retail Sales made directly to consumers in our retail stores around the world; through concession-based shop-within-shops located primarily in Asia, Australia, and Europe; and through our retail e-commerce channel in North America, Europe, and Asia. Ralph Lauren e-commerce sites are currently available in North 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. Licensing Royalty-based arrangements under which we license to unrelated third-parties the right to operate retail stores and/or to use our various trademarks in connection with the manufacture and sale of designated products, such as apparel, eyewear, and fragrances, in specified geographic areas for specified periods. 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 % 2% 47% Retail 51% Wholesale 47% Licensing 2% NET REVENUES by region fiscal % 12% 21% The Americas 67% Europe 21% Asia 12% 8 9

7 ABOUT RALPH LAUREN CORPORATION Our Products & BRANDS 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 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. ABOUT RALPH LAUREN CORPORATION Apparel Extensive collections of men s, women s and children s clothing Accessories Broad range of products include footwear, eyewear, watches, fine jewelry, hats, belts, and leathergoods, including handbags and luggage Home Coordinated home products include bedding and bath products, furniture, fabric and wallpaper, lighting, paint, tabletop, and giftware Fragrance Fragrance products are sold under our Big Pony, 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. Ralph Lauren Women's Collection Ralph Lauren Purple Label Accessories Ralph Lauren Watches Ralph Lauren Fine Jewelry Ralph Lauren Women's Black Label Ralph Lauren Men's Black Label Ralph Lauren Women's Black Label Denim Ralph Lauren Men's Black Label Denim Women's Polo Ralph Lauren Men's Polo Ralph Lauren Ralph Lauren Women's Blue Label RRL RLX Ralph Lauren Lauren Ralph Lauren Ralph Lauren Childrenswear Denim & Supply Ralph Lauren Golf Pink Pony Ralph Lauren Home Ralph Lauren Paint Fragrance Lauren for Men Ralph by Ralph Lauren Chaps Club Monaco 10 11

8 ABOUT RALPH LAUREN CORPORATION 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 Chairman and Chief Executive Off icer, Ralph Lauren Corporation Joel L. Fleishman Professor of Law and Public Policy, Duke University ABOUT RALPH LAUREN CORPORATION Roger N. Farah Executive Vice Chairman, Ralph Lauren Corporation Jackwyn L. Nemerov President and Chief Operating Off icer, Ralph Lauren Corporation John R. Alchin Retired Executive Vice President and Co-Chief Financial Off icer, Comcast Corporation Arnold H. Aronson Managing Director, Retail Strategies, Kurt Salmon Frank A. Bennack, Jr. Chairman of the Executive Committee and Vice Chairman of the Board of Directors, The Hearst Corporation Hubert Joly President and Chief Executive Off icer, Best Buy Co., Inc. David Lauren Executive Vice President of Global Advertising, Marketing and Communications, Ralph Lauren Corporation Judith McHale President and Chief Executive Off icer, Cane Investments, LLC Steven P. Murphy Chief Executive Off icer, Christie s International PLC Robert C. Wright 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 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, Mr. Farah will remain on our Board of Directors until our 2014 Annual Meeting of Stockholders in August

9 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, 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

10 ENVIRONMENT 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 In this section: ENVIRONMENT OVERVIEW ENERGY & CLIMATE MATERIALS & RECYCLING engagement & outreach table of contents 17

11 ENVIRONMENT ENVIRONMENT ENVIRONMENT OVERVIEW 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 business partners, and our customers to join us in supporting a more sustainable world. percent change in air mix FROM FISCAL 2009 Global air mix reduced more than one-third over six years. Reducing our global air mix AVOIDED 20,000 MTCO 2 of emissions from being released into the air, the equivalent of emissions from 1,800 homes' energy use for one year. ENERGY & CLIMATE Transportation 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 technology to study, plan and impact the movement of our merchandise, the logistics team identifies and puts into action initiatives to transport and manage our merchandise shipments in efficient and environmentallyfriendly ways. The global logistics team drives improvement in environmental performance through four primary areas of focus: emissions-efficient modes, routing, customer collaboration, and shipment consolidation. EmissionS-Efficient Modes Mode selection has a large, direct impact on transport emissions and represents a key area for targeted improvements. AIR TRANSPORT REDUCTION Air transport is an emissions-intensive mode of transportation. 1 By shifting volume to other modes of transport, 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, maintaining a menu of service options to meet business needs, and allowing for the selection of the least carbon-intensive mode of transport 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 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 these objectives. Beginning in 2009, we partnered with our container ship carriers through Business for Social Responsibility's Clean Cargo Working Group (CCWG). CCWG is dedicated to improving the environmental performance of ocean container transport through measurement, evaluation, and reporting. Shipper and carrier 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. GROUND PARTNERSHIP Since 2009, we have been a member of the EPA's SmartWay program. This program helps freight shippers, carriers, and logistics companies improve fuel efficiency and reduce environmental impact. As part of our 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. Routing % Dynamic Routing % % fiscal year % decreased % % 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. 1 United States Environmental Protection Agency. "Optional Emissions from Commuting, Business Travel and Product Transport." May See also: United States Department of Energy. "Transportation Energy Data Book." Carbon dioxide emissions, often referred to as carbon emissions, are converted to metric ton carbon or equivalent emissions. All equivalencies reference EPA values

12 ENVIRONMENT ENVIRONMENT 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 of consolidated truckload and ocean freight. The successful implementation resulted in a more than 90 percent decrease in our emissions for those shipments, avoiding an estimated 3,500 metric tons of CO 2 through Fiscal Customer Collaboration We work closely with our wholesale customers to leverage our mutual supply chain capabilities. Collaborative solutions can often reduce the unnecessary 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. Shipment Consolidation Effective packaging of shipments is a key part of optimizing transport as well. By transitioning to higher quality and space-efficient cartons, we are able to ship the same volume of product in less space, reducing overall shipment size. In addition, we implemented guidelines to select appropriately sized cartons for our product. 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 we would otherwise ship. This not only lowers ocean freight emissions but also reduces the required number of dray moves (transport of ocean containers by truck to or from a port). Through use of intermodal solutions, we avoided emissions equal to CO 2 emissions from 390,000 gallons of gasoline. CONTAINER CAPACITY UTILIZATION We have improved container utilization and shipment consolidation, reducing excess ocean shipments and avoiding container drayage Fiscal YEAR CONTAINER moves AVOIDED Carbon Footprint We began the process of establishing and tracking our carbon footprint in 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 By monitoring our energy consumption and with the help of our consultant, we have developed scope 1 (direct emissions natural gas and heating oil) and scope 2 (indirect emissions electricity) tracking for our offices, retail stores and distribution centers in North America and Europe. Specifically, the carbon footprint is an approximation based upon measured (i.e. metered) energy consumption, as well as projected energy consumption developed through modeling same brand/similar-sized stores for buildings for which we do not receive metered energy consumption details. The Fiscal 2014 carbon footprint is inclusive of all North America and Europe buildings but does not yet include all global facilities (e.g. facilities located in Asia). emissions by facility North America (U.S. & Canada) fiscal % 31% 6% tons co 2 e (thousands) emissions FOOTPRINT (scope 1 and scope 2) fiscal YEAR The chart above represents our North America and Europe carbon emissions from Fiscal 2012 (partial), 2013 and emissions by facility Europe fiscal % 8% Our Fiscal 2014 global carbon footprint is equal to CO 2 emissions from generating electricity for 6,500 homes' energy use for one year. Retail 63% Offices 6% Distribution Centers 31% Retail 92% Offices & Distribution Centers 8% The charts above represent emissions by facility during Fiscal 2014, in which retail stores in North America and Europe comprised 63 percent and 92 percent of our emissions footprint, respectively

13 ENVIRONMENT ENVIRONMENT BUILDINGS We have incorporated a variety of energy-efficient practices and measures to help improve our overall energy performance. Energy Management Systems Since 2002, we have integrated energy management systems (EMS) into approximately 40 percent of our retail stores. These are computer-based systems that allow us to remotely monitor, control and optimize lighting, 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. Store Design In October of 2010, we opened a Polo Factory Store in Leeds, Alabama, and earned our first LEED Silver certification from the U.S. Green Building Council (USGBC). This store uses approximately one-third of the energy used by a store of a similar size and location. Some of its features include: High-grade rooftop insulation and white reflective finish to reduce heating and cooling losses. Zero Volatile Organic Compound paint to reduce fumes and emissions. Water use reduction technology. The success of the store has allowed us to build a second store using LEED standards in Livermore, California. 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 Factory Stores with open ceilings now have the same energy-efficient lighting fixtures used in the Polo Factory Store in Leeds, Alabama. We also strive to use more sustainable materials throughout our stores. 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 instead of traditional rugs or carpeting allows us to have a more natural product in our various spaces and replace it less often. Our first coir/ sisal rugs appeared in stores in Office Building Design In planning our new European office headquarters in Geneva, we wanted a space that prioritized environmentally sustainable features. We worked with our landlord to have the new building designed and constructed in accordance with the Swiss Minergie standards. Minergie provides a set of standards focused on building with eco-friendly materials and energyefficient practices. Some of the building's features include: 45 square meters of solar panels on the roof to produce hot water. High-quality insulation (triple-layer windows). Fully-automated temperature regulation on each floor/façade to help monitor consumption. Regulated sensors to illuminate the exterior of the building. Containers to recycle all waste (paper, plastic and glass bottles, batteries, cooking oil, toners, etc.). Water flow reducer on bathroom taps. Light sensors in all offices and common areas to reduce electricity usage. Forest Stewardship Council (FSC) certified office furniture. coir/sisal rugs and carpeting european office headquarters 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

14 ENVIRONMENT ENVIRONMENT materials & recycling Procurement 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 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. RECYCLED CONTENT INCORPORATED INTO PACKAGING (PERCENT) Fiscal fiscal % 65% 84% % 80% thousands of trees (equivalent) TREES SAVED Fiscal fiscal Fiscal year The charts 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

15 ENVIRONMENT ENVIRONMENT Recycling We have recycling practices in all of our corporate offices. In addition, our North Carolina distribution centers have developed many additional recycling initiatives. 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 Since then, we've recycled more than 17,000 toner and ink cartridges. As our Company and facilities have grown, so has our recycling program. With the opening of additional facilities in North Carolina, our extensive recycling efforts increased to include our new locations. In 2012, we expanded the program with the opening of a new nearby facility, followed shortly after by expansion to additional sites. We track our recycling efforts 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. ENGAGEMENT & OUTREACH Inspiring our employees and our partners to be thoughtful in their environmental actions and decisions is essential to our sustainability mission. Advertising Initiatives Our internal advertising team continually identifies new opportunities to incorporate environmentally preferable selections of paper, ink and other materials into their designs when possible. For example, the proofing materials used to review photographs and advertisements are free of acetate overlays and require no chemical washes, unlike previous proofing materials, reducing the environmental impact. Printing 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. AMOUNT RECYCLED (TONS) 6,000 5,000 4,000 3,000 2,000 1,000 0 recycled material fiscal fiscal Fiscal YEAR Total recycled material from Fiscal 2010 to 2014 is represented; materials recycled include corrugate, plastic, and metal. EMISSIONS (mtco 2 ) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 emissions avoided by recycling fiscal fiscal Fiscal YEAR Emissions avoided due to recycling materials, calculated according to EPA greenhouse gas equivalencies. Sustainability Site & Other Employee Outreach PROGRAMS Our sustainability team is dedicated to communicating with our employees and engaging them in the Company's mission. The Sustainability site on the Company's internal website is a resource for news and information on Company initiatives, tips and activities, events and FAQs. Other outreach initiatives include: Virtual internal sustainability suggestions/comments/questions box. Earth Day s and information for celebrating around the globe; events at various locations. Various call-to-action communication encouraging employees to get involved. Automatic double-sided printing for all networked multifunction printers. Convenient recycling bins (or single stream recycling in some locations). Filtered water stations to encourage refilling of reusable water bottles

16 EMPLOYEES 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 In this section: Employees overview Diversity Fair Employment practice department Global Talent Management Learning & Development Benefits Wellness Employee Recognition table of contents 29

17 EMPLOYEES EMPLOYEES Employees overview At Ralph Lauren Corporation, our people are at the heart of what we do. What began as a small, dedicated team working in a New York City office years ago has grown into a team of approximately 23,000 employees in Fiscal Though the Company continues to evolve and expand, we remain dedicated to maintaining the creative, dynamic and inclusive environment we've had since day one. We value the talents of each individual and are committed to offering equal opportunities to each employee. We are steadfast in our efforts to attract and retain the best talent, and remain focused on providing 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. DIVERSITY Diversity is an essential factor in the success of our business. We began the process of institutionalizing Strategic Diversity Management in Our mission was, and continues to be, the pursuit of a diversity-mature organization one in which each employee can perform optimally and be recognized based on the quality of his or her performance. We are dedicated to working together to ensure that our long-term commitment to diversity management is embedded throughout the Company and is recognized as a core value for all employees. OUR Mission 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. employees by work status 1 fiscal 2014 employees by geography 2 fiscal 2014 About RLC s Global Diversity Leadership Group 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. 61% 39% 61% 39% 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 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 development, communication, representation, and addressing cultural barriers. Diversity Engagement Initiatives: Full-time 61% Part-time 39% U.S. 61% International 39% 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 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 Figures rounded to the nearest percentage. 2 Figures rounded to the nearest percentage

18 EMPLOYEES EMPLOYEES 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 participate 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. Through the audit, employees have the opportunity to express how they feel about the workplace culture as it relates to a variety of topics such as, but not limited to, fairness, communication, equal opportunity, and teamwork. Town halls are held to share survey findings with employees. The survey helps us calibrate our ongoing initiatives and efforts. EMPLOYEE DEMOGRAPHICS We survey our U.S. employee population by gender, and in accordance with the applicable laws, by ethnicity on a self-reported 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. 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 ensure the consistent and equitable handling of all workplace issues across the Company globally, in order to ensure that all associates are treated in a fair and non-discriminatory way. FEP Mission Statement Since people hold the key to achieving our business objectives, they constitute our most important asset. It is 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. U.S. EMPLOYEES BY gender fiscal 2014 U.S. EMPLOYEES BY ethnicity fiscal % FEP Core Responsibilities 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 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. 40% Equal Employment Opportunity (EEO) Training: Conduct appropriate levels of EEO training for the entire employee population. 60% 50% 48% 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 Pursuant to the United States Equal Employment Opportunity Commission. 4 All figures rounded to the nearest percentage. Reflects U.S. employees through Fiscal

19 EMPLOYEES EMPLOYEES GLOBAL TALENT MANAGEMENT We believe in the talent, creativity, and ingenuity of our people, and are committed to developing and expanding their scope of responsibility. We seek to support 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. Learning & Development We provide our employees with opportunities 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 Portal provides employees around the world access to classroom-based or online learning activities in such areas as Cultural Learning, Brand & Product, Professional Development, Business, and Systems & Technology. Courses are tailored to an employee's journey with some courses directed at an employee's first two weeks with the Company, others within the first 90 days, and many throughout their career with the Company. A sample of available training to all employees includes: team management skills, presentation skills, emotional intelligence, communication, business writing, situational leadership, as well as product training tools and learning an additional language. We take great pride in investing in an employee's ability to use various technologies and programs common in the apparel sector. In Fiscal 2014, 15,000 attendees around the globe took advantage of Ralph Lauren Learning. WELLNESS We aim to foster an environment that encourages total health and wellness for all employees through education, opportunities and resources that promote a healthy lifestyle. We believe a work-life balance is essential, which is why we launched the RL Wellness program in November 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 opportunities for employees to participate. In the first two months of the RL Wellness program, we distributed pedometers to 8,000 employees. EMPLOYEE RECOGNITION The Legacy Awards were established in 2009 to recognize and honor employees who have been with the Company for 10 or more years. Every December, honored employees receive a letter from Mr. Lauren and participate in a special ceremony at our corporate headquarters in New York. Over the last five years, more than 3,300 employees around the world have been honored with a Ralph Lauren Legacy Award. Of those, 167 were recognized for 25 years of service. Eight thousand employees received a free pedometer when RL Wellness launched in November of By the end of the year, a total of 665,660 steps had been recorded by participating employees. LIVING LEGACY Over the last five years, more than 3,300 employees around the world have been honored with a Ralph Lauren Legacy Award. 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

20 RALPH LAUREN Responsible sourcing 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 In this section: responsible Sourcing Overview Global Manufacturing & Sourcing Global Human Rights Compliance department table of contents 37

21 RESPONSIBLE SOURCING Responsible SOURCING OVERVIEW GLOBAL MANUFACTURING & SOURCING RESPONSIBLE SOURCING At Ralph Lauren Corporation, our vendors and suppliers are our business partners. As a global corporation, we require that all vendors and suppliers across all regions meet our corporate, social, and regulatory standards. We are committed to producing high-quality products responsibly. We focus on strategic collaboration and partnerships to increase information sharing and meaningful progress on human rights and the environment, which we believe are essential to our success and our suppliers' success. We believe it is our responsibility to source suppliers globally that exhibit best-in-class standards for quality and compliance in the operations of their business. We contract for the manufacture of our products and do not own or operate any production facilities; as a result, our products are made by independent manufacturers. We recognize that these manufacturers are the stewards of their own businesses and must take a proactive approach to continuous management of their operations. We work to foster positive business partnerships with all contracted suppliers. Our teams work together to achieve our goals, beginning with design, then product development, sourcing, quality assurance, human rights compliance, customs compliance, legal, manufacturing, finance and supply chain compliance. These teams seek to ensure that all vendors and products are following our specifications and regulations, as well as social and environmental guidelines. Specifically, our sourcing teams work closely with our Global Human Rights Compliance (GHRC) department when adopting new business partners. Since we contract for the manufacture of our products and do not own or operate any production facilities, we place the utmost importance on our vendor selection process. We look for suppliers that manufacture high-quality products with technical proficiency in safe workplace conditions with competitive costs. By maintaining sourcing and quality-control offices in key regions, we are able to operate under the close supervision of our Global Sourcing and Manufacturing division offices in the Americas, Europe, 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 thoroughly vetting new vendors by evaluating several factors, such as: respect for human rights, environmental compliance, product safety and quality assurance, supply chain and customs compliance. As our supplier 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. Over 700 different manufacturers worldwide produce our apparel, footwear, accessories, and home products at any given time, with no one manufacturer providing more than approximately four percent of our total production during Fiscal regional sourcing distribution (FISCAL 2014) 1 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. 1 Numbers represent percentage of manufacturing by region based on dollar volume in Fiscal 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% asia-pacific 81% We also conduct a full financial review of the vendor for economic stability and potential supplier growth. In 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 Regional sourcing distribution represents percentage of manufacturing by region based on dollar volume in Fiscal

22 RESPONSIBLE SOURCING Vendor Compliance & Restricted Substances 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 requirements in the Vendor Compliance Packet, including compliance with all applicable laws and regulations of local and foreign jurisdictions relating to safety and restricted substances. In addition, all vendors must comply with the testing and production protocols of our Global Testing and Quality Assurance Program. As a strong partner in our corporate efforts to source and manufacture responsibly, the GHRC team concentrates 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. Throughout the course of our business partnerships, each supplier is continuously evaluated and rated accordingly. Ratings are based on many factors including inherent country risks, business volumes, brand 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. RESPONSIBLE SOURCING GLOBAL HUMAN RIGHTS COMPLIANCE DEPARTMENT 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. Vendor Compliance Packet We require our business partners to provide us with certain assurances and information set forth in our Vendor 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 VENDOR APPROVAL PROCESS 2 AUDITING AND MONITORING 3 TRAINING AND REMEDIATION 4 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

23 RESPONSIBLE SOURCING We promote sustainable 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 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 connection between a well-run, efficient factory and high compliance levels. One of the most successful training initiatives we use is a program that focuses on training mid- to lower-level management. These managers learn essential skills to better manage the workforce and improve the overall factory environment. We also use vendor- and country-specific trainings that allow for greater and more valuable contributions. 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 partners to observe all international standards, and national and local laws and regulations while operating their business. WAGES, BENEFITS, WORKING HOURS AND TRANSPARENT RECORD KEEPING - Our business partners must comply with all laws regulating local wages, overtime compensation, and legally mandated benefits. Wage and benefit policies must be consistent with prevailing national standards. Under ordinary business circumstances, employees must not be required to work excessive working hours per week, including overtime, and have the option of at least one day off in seven. We expect that all record keeping will be accurate and transparent at all times. RESPONSIBLE SOURCING 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. 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 partners' facilities around the world. HEALTH AND SAFETY - Our business partners must ensure that their employees are provided a safe and healthy work environment, and are not subject to unsanitary or hazardous conditions. ENVIRONMENTAL SUSTAINABILITY - Our business partners must embrace a fundamental concern for environmental protection and conduct their operations and services consistent with both applicable local laws 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. Better Work We participate 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. CHILD LABOR - Our business partners must not use child labor, defined as employees under the age of 16. FORCED OR BONDED LABOR - Our business partners will not work with or arrange for purchase of any materials or services that supports or utilizes forced or bonded labor. DISCIPLINARY PRACTICES - Our business partners will not employ or conduct any business activity with partners who employ any form of physical or mental coercion, or punishment or monetary fines against employees. 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. DISCRIMINATION AND HARASSMENT - Our business partners will not practice any form of discrimination or 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. 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. SUBCONTRACTING - Our business partners may only subcontract to previously approved suppliers for manufacturing or services according to our corporate requirements. All subcontracted suppliers must meet the same criteria as our direct contracted product and service suppliers. 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. CUSTOMS COMPLIANCE AND PRODUCT SAFETY - Our business partners must comply with applicable customs laws and regulations including, but not limited to, participation in Customs-Trade Partnership Against Terrorism Programs (C-TPAT) for all products and services as directed by the U.S. Department 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, services, loans, payments) to any Ralph Lauren Corporation or affiliate employee, service provider or government/political official to influence any act or decision to secure a business advantage is strictly prohibited

24 COMMUNITY 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 In this section community overview Cancer Care and Prevention Volunteerism Philanthropy Disaster Relief The Polo Ralph Lauren Foundation table of contents 45

25 COMMUNITY COMMUNITY COMMUNITY OVERVIEW For decades, Ralph Lauren Corporation employees around the world have offered their time, resources, and overall support for people in need. As our Company grows, so do our opportunities to make a difference. 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. CANCER CARE AND PREVENTION Mr. Lauren and the Company have been leaders in the fight against cancer, steadfastly committed to raising funds and supporting leading programs for cancer screenings, treatment, prevention, and patient navigation. 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 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. In 1994, Mr. Lauren s vision and energy inspired and helped mobilize the fashion industry to take a stand against breast cancer. He designed the first target logo for the Council of Fashion Designers of America/CFDA 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. Organizations supported by the Company to help in the fight against cancer include The Polo Ralph Lauren Foundation, which has established the Pink Pony Fund to support cancer care and prevention, and the Ralph 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 partnership 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 memory, 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 services at Memorial Sloan-Kettering Cancer Center and other hospitals. The Ralph Lauren Center provides prevention education and health information to the Harlem community and beyond, and conducts research to help advance the understanding of the multiple factors that influence cancer care and health outcomes in medically underserved populations similar to those served by the Ralph Lauren Center. 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 a navigator as his or her personal advocate and problem solver, who provides guidance through the complexities of the health care system. Other key programs include Wellness and Survivorship designed to help patients and those close to them discover healthy ways to cope with the multiple demands that cancer and the course of its treatment make upon them and various outreach programs. THE PINK PONY CAMPAIGN In 2000, the Company designated its classic icon, the Polo Player, as the symbol for the Company s Pink Pony Campaign and sent models down the runway wearing Pink Pony shirts. This launched an important international initiative in the fight against cancer. 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 sold in the U.S. was donated to the Pink Pony Fund. Globally, 25 percent of the purchase price of Pink Pony products supports cancer-related organizations in countries around the world: 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 Italy Lega Italiana per la Lotta contro I Tumoti Malaysia Bahrain Think Pink Spain New Zealand Breast Cancer Foundation National Cancer Society Malaysia 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 46 47

26 COMMUNITY COMMUNITY 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 Emory 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 partnered 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 created to promote Pink Pony. For every 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 post received more than 8 million impressions. Polo Factory Stores: Our Polo Factory stores continue to support the Pink Pony Fund. A reusable organic cotton Pink Pony tote is sold in Polo Factory stores with approximately $5 per bag sold benefiting the Pink Pony Fund. Customers have the opportunity to make a donation in the amount of their choice during checkout in Polo Factory stores. Pink Pony Soft Ricky: The Pink Pony Soft Ricky Bag was created exclusively to support the Company s 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. 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, benefiting Susan G. Komen Philadelphia New York, New York, benefiting the Lung Cancer Research Foundation Austin, Texas, benefiting The Seton Fund Chicago, Illinois, benefiting 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) Associazione Italiana per la Ricerca contro il Cancro (Milan and Bologna) Breast Cancer Foundation (Singapore) The Royal Marsden Hospital (London) Canadian Breast Cancer Foundation (Canada) Friends for an Earlier Breast Cancer Test (North Carolina) High Point Regional Health System Foundation (North Carolina) Hong Kong Cancer Fund (Hong Kong) Japan Cancer Society (Tokyo) Josep Carreras Foundation (Spain and Portugal) Korea Breast Cancer Foundation (Korea) 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) 48 49

27 COMMUNITY COMMUNITY 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 Benefitting 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 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 Emmaüs Fashion Delivers Food Bank of Madrid Food Bank of New York Foundation Foyer-Handicap Free Arts NYC Fundacion Juan XXIII God's Love We Deliver Grace Institute Greensboro Unity Ministry 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 Hong Kong Young Women's Christian Association Hospital des Enfants Juan XIII Foundation Keep America Beautiful Great America Cleanup KIDS Project 2013 Kites Shanghai Community Center Korea Red Cross Leukemia & Lymphoma Society Nature Reservation Campaign 50 51