Timberland to visit Dartmouth Tuck MBA Students

 

Are you sure you want to delete comment?

Cancel

Our metric for measuring the percent of high risk factories from which we source our products is based on the assessment results in our footwear factory base. We work with factories to improve their ratings. When a large footwear factory makes substantial improvement, this can help shift our total performance.

 

Are you sure you want to delete comment?

Cancel

I'm excited to see some debate unfolding about the value of integrating CSR and marketing efforts. Here at Timberland we see this as an opportunity to both educate and empower our consumers to make responsible purchasing decisions. Ensuring that our marketing claims are backed up by credible CSR programs is essential for consumers to understand and trust our values. One way that we%u2019ve begun integrating these efforts is through the Earthkeeper network. http://www.earthkeeper.com is a web-based social networking initiative designed to demystify environmental issues by providing meaningful, real and fun ways for consumers to take steps toward reducing their footprint. We also have a page on Facebook, aYouTube brand channel, and a partnership with Changents.com %u2013 all of which are linked for the Earthkeeper site. Check it out %u2013 let us know what you think!

 

Are you sure you want to delete comment?

Cancel

On the topic of financial performance and implications of CSR:



Timberland's CSR efforts are based on the premise that as a responsible company we have opportunities to merge commerce and justice %u2013 that is, our CSR efforts are integral to our company's financial success. One example is our climate strategy: as a cold weather brand, climate change effects our bottom line. If weather patterns change so that there are fewer cold, winter days, we're likely to see a decline in boot sales. So, there's a business rationale for engaging in climate debates %u2013 both at the public policy level as well as in addressing our own carbon footprint and beyond. As we work to reduce our own carbon emissions, we also save money. Investments in energy efficiency projects (things like retrofitting our store designs, utilizing energy efficient lighting and computers, etc.) have short-term payback periods and help to directly reduce operational costs.

 

Are you sure you want to delete comment?

Cancel

On the topic of formatting and communication:



We appreciate your candid feedback about our report format. We've tried to fit a lot of information (actual performance data, collection and validation steps, context, and analysis) on to one page per metric. It's clear from your (and others) comments that this information is too much to view - some people have said they can't read what%u2019s there because the text is so small.



We're in the process of considering new communication tactics for our quarterly reporting. One idea that%u2019s been posed is to issue a statement (maybe akin to a press release) on Just Means to accompany the more detailed report. This statement would highlight our high-level performance accomplishments and challenges, thereby enabling folks who wanted to go deeper to peruse the reports that provide extra detail. Would this help improve our formatting? Do you have other ideas for how we might present this information?



One thing to keep in mind is that our CSR reporting, whether it's quarterly or through our bi annual publication, targets many different stakeholder audiences %u2013 everyone from CSR practitioners and issue experts to mainstream consumers. These various groups have different information needs, but we strongly believe that in order to be accountable for our impacts, our disclosure is most credible when we provide as much detail and transparency as possible.

 

Are you sure you want to delete comment?

Cancel

Our move to quarterly reporting complemented by a bi annual CSR report was the result of analyzing many years of producing a traditional, annual CSR report. We realized that we were challenged in a few ways; the new model helps overcome these challenges:



- Scale: our CSR reports primarily were distributed to and read by CSR practitioners. Sure, a few mainstream stakeholders might wander across this report on http://www.timberland.com but we were limiting the scale and diversity of stakeholders that had access to these disclosure efforts. By moving to our new model, we seek to engage many different types of stakeholders when presenting our accountability and performance.



- Interaction: we also primarily interacted with CSR practitioners when it came to discussing our success or challenges in meeting our performance targets (we still do this!). Using a web 2.0 interface broadens the opportunities to interact with many stakeholders about our impacts. Posting comments, responding to questions and even %u201Clive chats%u201D on a platform like this allow us to get feedback from many more stakeholders.



- Frequency: by interacting with a broader range of stakeholders in new mediums, we are able to incorporate their feedback into real time strategy development, rather than only doing so when we engage CSR practitioners around our annual CSR reporting efforts. We also seek to treat our CSR performance in the same manner that we treat financial performance %u2013 both internally and externally. Releasing data on a quarterly basis mirrors the way we provide information to our shareholders %u2013 our CEO even hosts a quarterly CSR call to complement our quarterly shareholder call. See the podcasts loaded here on Just Means (check our home page).

 

Are you sure you want to delete comment?

Cancel

Our move to quarterly reporting complemented by a bi-annual CSR report was the result of analyzing many years of producing a traditional, annual CSR report. We realized that we were challenged in a few ways; the new model helps overcome these challenges:



%u2022 Scale %u2013 our CSR reports primarily were distributed to and read by CSR practitioners. Sure, a few mainstream stakeholders might wander across this report on http://www.timberland.com but we were limiting the scale and diversity of stakeholders that had access to these disclosure efforts. By moving to our new model, we seek to engage many different types of stakeholders when presenting our accountability and performance.



%u2022 Interaction %u2013 we also primarily interacted with CSR practitioners when it came to discussing our success or challenges in meeting our performance targets (we still do this!). Using a web 2.0 interface broadens the opportunities to interact with many stakeholders about our impacts. Posting comments, responding to questions and even %u201Clive chats%u201D on a platform like this allow us to get feedback from many more stakeholders.



%u2022 Frequency %u2013 by interacting with a broader range of stakeholders in new mediums, we are able to incorporate their feedback into real time strategy development, rather than only doing so when we engage CSR practitioners around our annual CSR reporting efforts. We also seek to treat our CSR performance in the same manner that we treat financial performance %u2013 both internally and externally. Releasing data on a quarterly basis mirrors the way we provide information to our shareholders %u2013 our CEO even hosts a quarterly CSR call to complement our quarterly shareholder call. See the podcasts loaded here on Just Means (check our home page).

 

Are you sure you want to delete comment?

Cancel

Wow! We're really excited to see all of the great comments all the Tuck questions have posted. We've started to answer some questions and pose some more to keep the dialogue going - starting with the questions that came in over the weekend and Monday.



Where there have been common themes, we'll post remarks that aim to answer several questions In other instances (such as related to our Q4 performance for example), check out some of the comments posted from the last page forward.



We'll continue to post responses and engage with you - please stay tuned for more updates.



Beth Holzman

CSR Strategy and Reporting Manager, The Timberland Company

 

Are you sure you want to delete comment?

Cancel

We%u2019ve set bold goals to achieve carbon neutrality for our owned and operated facilities and employee air travel by 2010. This goal (and our climate strategy) prioritizes emissions reductions and investments in energy efficiency and renewables before we consider the use of offsets. However, we know that carbon emissions will result from making products and running our business. In order to meet this goal (which is an important facet of our transparency and accountability), we will purchase offsets. How much and what kind will depend on the success of our reductions and clean energy investments.

 

Are you sure you want to delete comment?

Cancel

I think that Timberland's commitment to service is wonderful-- I am impressed by the number of hours that employees donate to serving the community through events like earth day and serva-palooza. I was wondering, however, if this, as well as Timberland's relationship with City Year, is a form of Kramer and Porter's strategic corporate philanthropy. Could Timberland be using it's resources and core competencies more efficiently to create more of a mutually beneficial relationship between itself and the community? Or does Timberland's commitment to service and the association with City Year have the effect of drastically improving employee morale, increasing productivity, and reducing turnover? I'd love to learn more about the motivation behind these initiatives and there effect on Timberland's bottom line.

 

Are you sure you want to delete comment?

Cancel

On a similar note, I%u2019m also curious about the %u201Chigh priority%u201D factories/suppliers. Between environmental improvements and human rights issues, which does Timberland view as most urgent for %u201Chigh priority%u201D facilities? Additionally, for the six suppliers whose score dropped in Q4 2008, what kind of policies are in place to end relationships with these suppliers, if needed? For example, if an instance of child labor is found at a supplier's facility, does that supplier become %u201Chigh priority,%u201D or does Timberland stop sourcing from that supplier immediately?