It is an honor to lead a company that is first and foremost about people — whether it is our own associates, our supply chain partners, our customers, or the broader communities where we live and conduct business. PVH has a long history of community involvement, and we are proud to offer all of our associates a great place to work. We took a leadership position in corporate social responsibility (CSR) in 1991 when we became one of the first companies to adopt a code of conduct. Our commitment to human rights, labor, and employment conditions was demonstrated by creation of a department within PVH that is dedicated to managing critical social issues with our vendors.
Over the last decade, PVH has grown significantly with the transformational acquisitions of Calvin Klein in 2003, and Tommy Hilfiger in 2010. In late 2012, we announced the acquisition of The Warnaco Group, Inc., a strategically important move that reinforces our strategy of driving the global reach of the Calvin Klein brand, reuniting the “House of Calvin Klein” by bringing the Calvin Klein jeans and underwear businesses under one owner.
PVH is a company rooted in community involvement; a good corporate citizen offering a great place to work. We are proud to have maintained this culture through these large acquisitions and significant growth. As we continue to grow globally, we strive to remain at the forefront of our industry when it comes to CSR.
2012 was another year of advances for our CSR program, starting with the appointment of Melanie Steiner as our first Chief Risk Officer. In this role, Melanie is responsible for the four pillars of our CSR program — community, people, supply chain and environment. This new governance structure allows us to take a more holistic approach to CSR.
In 2012, the CSR Committee of the Board of Directors (CSR Committee) participated in a factory tour through Asia. This provided the CSR Committee, and senior leaders who joined them, with a deeper understanding of PVH’s human rights program, and demonstrated some of the key issues and how we manage them.
I am also pleased to note a number of our accomplishments in 2012. From a human rights perspective, we made significant progress in the integration of Tommy Hilfiger onto the PVH human rights platform. We also enhanced our program to move beyond compliance, working directly with factories to build their capabilities to self-manage these issues. With a view to take a more sustainable approach to our supply chain, we began to expand our efforts with our partners to address key environmental issues such as water, energy and chemical management. These efforts will continue in 2013 and beyond with the support of our Global Supply Chain organization.
Recognizing that we cannot make progress alone, PVH continued to drive collaboration and convergence within the apparel industry in 2012. We extended our association with important multi-stakeholder initiatives such as the Fair Labor Association (FLA), Global Social Compliance Programme (GSCP), and the International Labor Organization (ILO) Better Work program. In addition to existing collaborations, we joined the Global Reporting Initiative (GRI), a non-profit organization that promotes economic, environmental and social sustainability. GRI provides all companies and organizations with a comprehensive sustainability reporting framework that is widely used around the world. We also continued working directly with other brands and suppliers.
Additionally, we continued to give back to our communities. We donated more than $1 million to Hurricane Sandy relief efforts, and continued significant support of our spotlight organizations, including, Safe Horizon, Save the Children, Leukemia and Lymphoma Society, and Millennium Promise. Our associates across the world were involved in an array of volunteer and community initiatives aligned with our philanthropic objectives of supporting women and children.
I am proud of all of our associates. They not only work hard to make us successful, but continue to recognize CSR’s important role at PVH, including by identifying new ways of doing business that improve our performance, as well as allow us to do business responsibly.
We continue to review our CSR program and strategies with the intent to further our efforts around the world across our four CSR pillars –- people, supply chain, environment and community. I welcome your feedback on this report, and your suggestions on ways we can further enhance our CSR performance. Thank you for your continuing support of our efforts.