Giving Back Through Tough Times. Employee Giving Programs that Boost Your Bottom Line

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1 Giving Back Through Tough Times Employee Giving Programs that Boost Your Bottom Line

2 CREATING COLLECTIVE BENEFIT Employees and Community Investment at Gap Inc. Gail Gershon Director, Employee Engagement Gap Foundation Gap Inc.

3 GAP FOUNDATION S ROLE Global Social Investor Employee Catalyst Business Advisor

4 OUR PURPOSE To fulfill personal promise to change the course of lives in an effort to break the cycle of poverty

5 STRATEGIC PILLARS TARGET CAUSES

6 STRATEGIC PILLARS LEVERAGE COMPANY ASSETS THE VIRTUOUS CYCLE COMMUNITY SHAREHOLDERS COLLECTIVE BENEFIT EMPLOYEES CONSUMERS

7 Strategic Pillar #1: WE RE BEYOND CASH LEVERAGE COMPANY ASSETS Employees Stores Vendor relationships Brands Marketing Product

8 WE BELIEVE EMPLOYEES ARE OUR MOST VALUABLE ASSET. How we engage employees to drive social change: Hands-on volunteerism. Skills-based volunteerism and pro bono service. Employee financial giving. Recognition programs to inspire employees and promote innovation. Gap Inc. matches employee donations of both money and time.

9 Strategic Pillar #2: THE VIRTUOUS CYCLE COMMUNITY Collective Benefit drives sustainability SHAREHOLDERS EMPLOYEES CUSTOMERS

10 TWO TARGET CAUSES YOUTH (Developed World Target Cause) Youth empowerment through employment WOMEN (Developing World Target Cause) Women s advancement through life & work skills education

11 Our developed world target cause, youth empowerment through employment, leverages Gap Inc. employee expertise around preparing young people for first job success.

12 We believe there s a promise that exists in all of us and it s not just in the people we serve, but it s in ourselves.

13

14 KAREN DAVIS

15 GIVING THE GIFTS OF HOPE, PLAY AND A HELPING HAND Our mission is to assist children in triumphing over critical life obstacles and bring the joy of play into their lives Hope = Grants Play = Product Helping Hand = Team Hasbro

16 TWO TYPES OF GIVING Philanthropic Partnerships Multi-Year Grants Product Employee Engagement Local Support Where we have offices Yearly grants Product Employee Engagement

17 STRATEGIC FOCUS Support children in need Put product into the hands of children who would otherwise not experience the joy of play Team Hasbro: Employees are given four hours a month to volunteer with children Employee Giving: Employees are given the opportunity to contribute to our philanthropic partners

18 EXAMPLE: GIVE KIDS THE WORLD Grants Boundless Playground Christmas Every Thursday Product Candy Land Customize Game Product Donations for Thursday Event Team Hasbro Designed Game Designed Playground General Volunteering at Event Cause Marketing My Little Pony 25th Anniversary La-Ti-Da Children s Spa Product at Retail to Support GKTW

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21 PepsiCo Foundation Snapshot Founded in 1962 by Pepsi-Cola Company prior to Frito-Lay merger in 1965 Philanthropic arm of PepsiCo Inc. Making grants outside of the U.S. since 2005 Average annual spend $31mm Grant portfolios worldwide Leveraging engagement Disaster relief & recovery 2

22 PepsiCo Foundation Mission As PepsiCo s philanthropic anchor, the PepsiCo Foundation is committed to developing sustainable partnerships and programs that provide opportunities for improved Health, Environment and Education, with an emphasis on underserved communities in the U.S. and in developing countries. 3

23 Complementing Performance with Purpose Human Sustainability Environmental Sustainability Talent Sustainability Food Security and Under-Nutrition Over-Nutrition Energy Balance Water Security Safe Water to 1MM More Crop Per Drop High School Graduation Rates Opportunity for Underserved Groups Economic Development in Emerging Markets 4

24 Social ROI Moves the World Forward Investment not Subsidy Taps Our Strengths & Core Competencies 5

25 Smart Philanthropy Results driven; metrics Scalability Capacity building Local relevance Market-driven solutions Distribution of dollars RFP process; re-granting Micro finance and credit Leverage: Challenge & Matching Engagement Service Corps Associates Pro bono Skills 6

26 Grant Example: Health Portfolio Save the Children Give $5 million over three years Prevent malnutrition and mortality in children under five-years-old in India and Bangladesh Work with community health educators to teach and train families about nutrition, water, sanitation and hygiene Expanding the partnership across regions coordinated CSR programming 7

27 Grant Example: Health Portfolio World Food Programme The UN s frontline agency in the fight against hunger Feeds 90 million people, mostly children, in 80 countries Program to assist with improving WFP s logistical capabilities PepsiCo Foundation Service Corps Retired Associates 8

28 Environment Portfolio Choosing Strategic Innovative Partners last mile A three-pronged approach to bring safe water to one million people in underserved populations by 2010 Protection at the Watershed resource Purification of the water for the community Sanitation & Hygiene at discharge to prevent recontamination Distribution to the people that need it 9

29 Grant Example: Inclusion Portfolio Escalera $2.08 million in Program created with National Council of La Raza in 2001 Goal: increase High School graduation rates of Latinos and prepare students for college and careers Escalera is now a signature program, active in seven cities in the U.S. Spawned new national Diplomas Now dropout prevention program for underserved youth in middle and high schools Regional overlap with Diamond Scholars program Adelante engagement is a core component 10

30 Employee Programs $9.2 million in 2008 ExCEL Scholarships United Way Matching Gifts Program 11

31 Purpose Continuum Everyone, every function, every division & every company in PepsiCo has a role and opportunity to do good by doing well. 12

32 Next Steps for Contributions Advancing engagement in our DNA Weaving our competencies deeper into the business to further social benefit Sustainability guides us to move beyond cause Anchor the enterprise on purpose, partnering, Social ROI & impacts Linking & aligning in a decentralized system herding cats to drive strategic impacts Expanding our network of foundations Growing skills based engagement 13

33 Claire Lyons Global Grant Portfolios Foundation & Contributions September 23, Global Giving & HR Magazine

34 Guaranteed Goodness. September 2009 July 2009

35 GlobalGiving web platform + projects = corporate solutions

36 Example: Liquidnet Holdings Custom Gift Cards Employees kids New employees Customer recognition

37 Example: SA Gems Cause Marketing Diamond distributor created small program with retailers Contribution in honor of buyers of diamonds over set price $1 for every carat sold by participating retailers

38 Institutional Partners 20+ INSTITUTIONAL PARTNERS

Here are some highlights from our work in Learn more > Visit bewhatspossible.com

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