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Corporate Social Responsiblity

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Introduction JCPenney Company, Inc. is a chain

of American mid-range department stores based in Plano, Texas, a suburb north of Dallas.

The company operates 1,107 department stores in all 50 U.S. states and Puerto Rico.

Over 110 years ago, James Cash Penney founded his company on the principle of treating customers the way he wanted to be treated himself: fair and square.

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Jcpenny C.A.R.E.S – every day matters  In 2007, the Company launched its Corporate Social

Responsibility (CSR) initiative – C.A.R.E.S.• Community -Foster youth development in our

communities • Associates -WINNING TOGETHER culture that

values, develops and rewards our Associates• Responsible Sourcing -Partner with our suppliers to

improve social, labor and environmental conditions • Environment -Reduce our environmental footprint

through energy reduction and waste minimization • Sustainable Products -Simply Green –promote

products that reduce environmental impacts

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Community Jcpenny launched an inspiring new philanthropic

initiative on July 20, 2011 that invites customers in over1,100 stores to turn small change into “pennies from heaven” by rounding up their purchases and donating the difference to life-enriching afterschool programs

To bolster support for the afterschool movement, jcpenney unveiled its most extensive cause marketing campaign to date.

Olsenboye designers Mary-Kate Olsen and Ashley Olsen are lending their support to the initiative by releasing a limited edition change purse available exclusively at jcpenney.

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Each purse will sell for $9.99 and 100 percent of the sale proceeds will be donated to the pennies from heaven campaign

Prior to the official launch in stores, customers were able to collect virtual pennies as part of a fun, interactive experience on jcp.com/pennies.

Once users collectively generate 100 million virtual pennies, jcpenney will donate $1 million to the afterschool cause.

Elements of the pennies from heaven online challenge include:• sending a “lucky penny” to friends on Facebook using a

customized application;• watching the pennies from heaven commercial video;• downloading the pennies from heaven ringtone;• liking jcpenney on Facebook or following jcpenney on Twitter

and;• checking into a jcpenney store on Foursquare.

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The impromptu fashion show took place at the jcpenney store in Manhattan, NewYork. Any proceeds made from donations went to one of the jcpenney charities.

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As a result of this initiative of Jcpenny Provided America’s children with access to safe, high-quality afterschool programs

JCP is one of the nation’s largest champions and shapers of the afterschool movement

JCPenney and the JCPenney Afterschool Fund have contributed more than $70 million to support afterschool initiatives

More than 20,000 children were sponsored in afterschool activities in 2007.

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Associates With a focus on engagement, JCPenny have

developed and branded an Associate philosophy called WINNING TOGETHER, built on:

• Communication• Training• Recognition• Inclusion & Diversity jcpenney received a perfect score on the 2008

Human Rights Campaign Corporate Equality Index for creating an inclusive and diverse work environment.

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Responsible sourcing PRODUCT TESTING & SAFETY• A long history of product testing and

emphasizing product quality• We established our first testing laboratory

more than 75 years ago and operate our own testing laboratories (one of the few retailers to have this capability)

PRODUCT STEWARDSHIP• Recently formed a Product Stewardship

Committee to coordinate efforts regarding the safety and impact of products and chemicals

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Our Supplier Legal Compliance Program strives to ensure that the factories producing JCPenney private brand products comply with applicable national health, safety and labor laws and regulations, and our own requirements.

Two years ago, we began recognizing our suppliers’ CSR efforts with a JCPenney Corporate Social Responsibility Award of Excellence. In 2007, we presented the award to one of our top suppliers, House of Pearl Fashions of India.

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Environment Energy star :Recognized by the EPA as an

ENERGY STAR Partner of the Year for 2008 for Energy Management (for the 2ndyear in a row).

SmartWay:JCPenney was one of only 34 businesses and organizations recognized by the EPA with its 2007 SmartWay Excellence awards for environmental leadership in reducing fuel consumption and lowering greenhouse-gas emissions from big trucks.

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“Change the world, starts with ENERGY STAR” (2009) Jcpenney understands the importance of

taking smart steps to reduce energy usage and lessen its impact on the environment.

Built of environmental friendly materials, the ENERGY STAR exhibit is designed to demonstrate the importance of energy-efficient practices and products in the home as a first step toward saving energy and helping the environment.

Festival-goers can take a room-by-room tour of the interactive, custom-built exhibit modeled after an energy-efficient home

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Celebrating its 30th year, the Plano Balloon Festival will attract nearly 100,000 visitors from throughout the Dallas-Fort Worth area to enjoy hot air balloon launches, balloon rides, live music, food and festivities from September 18-20 at Oak Point Park in Plano

This year’s festival will benefit 42 non-profit organizations that will take part as concessionaires, service providers and exhibitors. For additional information on the Plano Balloon Festival

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Four JCPenney stores in Washington State became the first retail stores in the nation to earn the ENERGY STAR label for superior energy efficiency and environmental performance.

The JCPenney Home Office also achieved ENERGY STAR certification under the existing building designation (1 of only 183 office buildings so certified in the State of Texas).

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Sustainable products JCPenny have partnered with Chaser

Merchandising and the World WildlifeFund (WWF) to offer a line of WWF T-shirts for young women which are made from a blend of organic cotton and recycled polyester.

$1 is donated to WWF for every T-shirt sold. The program has already raised over

$500,000 for WWF.

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Jcpenny launches “simply green” lable JCPenney joined the green private label fray with

“Simply Green.”  on March 19, 2008 The products were highlighted in “Simply Green”

zones throughout stores Green products fell into one of three categories:• Organic products that were made from at least 70

percent raw materials such as organic cotton or linen, which have been grown without chemical fertilizers or pesticides.

• Renewable products that were made from at least 25 percent renewable materials

• Recycled products containig at least 25 percent recycled materials

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Packaging

Jcpenny have reduced the amount of packaging materials used and, where possible, converted packaging to recycled materials containing post‐consumer waste recycled content.

They have converted:• Apparel gift boxes to 75% post‐consumer

material.• Post‐sale jewelry gift packaging to 70% post‐

consumer material and• Catalog shipping cartons to 65% post‐consumer

material in the medium‐board and 25% scrap materials in the linerboard.

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jcpenney has also eliminated using individual poly bags and uses thinner master bags when possible. Customer’s shopping bags are made of high density plastic, which is recyclable and uses less material to produce, less fuel to transport, and, if not recycled, less landfill space

Changes made are saving more than 5,500 tons of virgin paper per year.

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Reducing Paper Usage: Like many large retailers and

companies,jcpenney uses paper for newspaper inserts, advertising mailers and catalogs

Jcpenny is committed to procuring, using and disposing of paper in a manner that promotes the sustainability of forests and other natural resources. All of the paper jcpenney uses in catalogs, newspaper inserts, and advertising mailers is recyclable.

Jcpenney has adopted a Catalog Paper Policy, which includes a commitment to incorporate 10 percent post‐consumer waste (PCW) recycled content into its catalogs as rapidly as possible.

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They use some of the lowest weight papers in the industry, and are committed to continuing this practice to limit overall paper consumption.

they are also committed to eliminating waste from the printing process, and prohibit overruns and printing of excess copies as part of their contracts.

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Waste Management jcpenney’s facilities and stores have been

recycling since the mid 1960s More than 50,000 tons of cardboard are

recycled annually. jcpenney also recycles various types of

plastic, office paper, magazines, light bulbs, fluorescent tubes and ballasts, wood, liquids such as waste oil, cleaners, and paint, and metals such as steel, aluminum, copper, and lead (from industrial batteries)

Plastic pallets are made from a combination of 30% virgin plastic and 70% recycled plastic.

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jcpenney recycles more than 150,000,000 plastic hangers per year through a recycler who separates the

reusable hangers from those that are damaged. Reusable hangers are sent to merchandise manufacturers, while damaged hangers are ground up and recycled

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CSR as value creation

CSR as risk management

CSR as corporate philanthropy

pennies from heaven

product testing & safety

pennies from heaven

winning together Supplier Legal Compliance

Program

Sustainable products

SmartWay Excellence awards

Energy star

Plano Balloon Festival

Sustainable products

simply green” lable

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Presented byDeepali Choudhary

DFT-VI

NIFT GANDHINAGAR