The Estee Lauder Companies Inc. 2009 Annual Report
CORPORATE SOCIAL RESPONSIBILITY REPORT






OUR EMPLOYEES
Hundreds of groundbreaking product and program innovations over the years come from the collaborative efforts and commitment of our diverse employees who bring different approaches and ideas to our Company. We embrace diversity and global inclusiveness and take pride in providing a work environment in which individuals of different races, genders and gender identities, sexual orientation, ethnicities, religions and backgrounds can excel. For the past four years we have received a perfect score on the Corporate Equality Index, sponsored by the Human Rights Campaign Foundation, www.hrc.org.

Through our Most Valuable People (MVP) Volunteer Program at our corporate headquarters in New York City and our North American Operational facilities, we support a multitude of institutions and programs that revolve around health, education, literacy and programs that aid women. MVP has grown considerably since it was started in 1986 to include a dynamic array of opportunities for employees to support those in need. For example, in 2009, ELC employees across the United States and worldwide helped children prepare for school success by supporting the national early literacy organization Reach Out and Read, to provide books for children in need and spread the word about the importance of reading aloud to young children. ELC employees donated over 3,000 books to Reach Out and Read programs.


ELC Employees at the yearly groundbreaking of the Organic Garden at our facility in Melville, NY, April 2009.

In April 2009, we celebrated Earth Month in 15 of our affiliate offices around the world. Employees hosted special celebrations and initiatives, from employee-tended organic gardens to the initiation of recycling and carpooling programs. In addition to Earth Month activities, our employees created six internal green teams that focus on spreading our commitment to the development of green office practices and procedures. A separate corporate green committee serves as an organizational unit for our various green teams by hosting quarterly meetings to share best practices and event information and brainstorm ideas. These six teams are currently active in our New York offices and facilities; however, we expect that green teams and committees will be formed globally throughout the next three years.

Perhaps one of the employee programs we are most proud of is Think Smart. Originated in the late 1980's by Mr. Leonard A. Lauder, Think Smart was developed to encourage our employees to submit ideas on how we can work smarter and more cost effectively. The program, which was re-launched four years ago, has received thousands of ideas resulting in many cost-saving and efficiency initiatives. Most recently, Guan Zhi Cao, an employee in our Canadian manufacturing plant, created a prototype for an automatic label machine using parts he had purchased from a hardware store. The machine was successfully implemented and has generated considerable savings for the Company. Guan's imagination embodies the true entrepreneurial spirit of our Company.


ELC Employee Guan Zhi Cao, who won the Think Smart Award in April, 2009.

We also recognize that the health and well-being of our employees is central to maintaining our active and inspired workforce. We have established Health & Wellness Programs around the world and provide onsite health check-ups, skin cancer screenings, mammograms, fitness programs and other activities in many locations.

Over the next three years, we will implement several initiatives aimed at continuing to reduce the Total Incident Rate, which is defined as the number of recordable incidents per 100 workers per year. These activities include a global behavior-based safety program, standardizing our workplace policies and procedures across our Company, intensifying our safety training and maximizing communications among our facilities.

GLOBAL PHILANTHROPY
Our commitment to philanthropy and community outreach originated with the many examples from the Lauder family. Our employees are a powerful engine for good and represent our concern for the betterment of health and human services, the environment, education, the arts and individual enterprise.

We are proud to support a multitude of global institutions and programs that reflect the interests and concerns of our employees and customers.

A few examples of global organizations we support as a corporate entity include:

  • THE BREAST CANCER RESEARCH FOUNDATION®
  • DRESS FOR SUCCESS
  • GLOBAL GREENGRANTS
  • LEGAL MOMENTUM
  • LOOK GOOD...FEEL BETTER
  • THE M·A·C AIDS FUND
  • THE RED CROSS
  • THE SALVATION ARMY
  • SMILE TRAIN
  • WORLD VISION


Buildings illuminated in pink as part of The Estée Lauder Companies' Breast Cancer Awareness Campaign: Tokyo Tower, Japan; Congreso de la Nación, Argentina; the "largest" human Pink Ribbon in Dubai, October 2008.

Our largest corporate philanthropic campaigns are The Estée Lauder Companies' Breast Cancer Awareness (BCA) Campaign and support for the M·A·C AIDS Fund, which engage employees across brands, regions and functions.

In 1992, Evelyn H. Lauder, Senior Corporate Vice President, The Estée Lauder Companies, co-created the Pink Ribbon with SELF magazine and began The BCA Campaign. The Pink Ribbon has become the global symbol for breast health and to date The BCA Campaign has distributed more than 85 million Pink Ribbons worldwide.

In 1993, Mrs. Lauder founded The Breast Cancer Research Foundation® (BCRF), an independent, not-for-profit 501(c) (3) organization dedicated to funding innovative clinical and translational research. The Foundation supports scientists at top universities and academic medical centers worldwide, conducting the most advanced and promising breast cancer research that will lead to prevention and a cure in our lifetime. A minimum of 85 cents of each dollar donated to the Foundation goes directly to breast cancer research and awareness programs around the world. BCRF has received Charity Navigator's highest rating-four stars-thus outperforming over 99 percent of the evaluated charities for the past eight years. The Estée Lauder Companies is the largest corporate sponsor of BCRF and together with its retail partners has raised $40 million for BCRF.

The BCA Campaign is present in over 70 countries and strives to raise awareness through various methods, including the distribution of Pink Ribbons and informational brochures on breast health, the Global Landmark Illumination Initiative and the appointment of World Pink Ribbon Ambassadors. The BCA Campaign is supported by 14 of The Estée Lauder Companies' brands: Aveda, Bobbi Brown, Bumble and bumble, Clinique, Darphin, Donna Karan, Estée Lauder, Jo Malone, La Mer, Lab Series Skincare For Men, Ojon®, Origins, Prescriptives and Sean John. During October, each brand creates and sells unique Pink Ribbon Products in support of individual brand contributions to BCRF.

In October 2009, The BCA Campaign will celebrate the 10th anniversary of its Global Landmark Illumination Initiative, whereby landmarks are illuminated in glowing pink lights as symbols of hope, empowering and enlightening millions of women everywhere. In 2008, over 200 landmarks participated worldwide.

The Estée Lauder Companies' employees demonstrate their passion for this cause in many ways. From hosting "Dress Pink" days to organizing marathons, charity auctions and golf tournaments, our employees continue to raise funds for breast cancer research worldwide. In fiscal 2010, The BCA Campaign was selected as one of five finalists for the U.S. Chamber of Commerce Business Civic Leadership Center (BCLC) 2009 Corporate Citizenship Awards in the "Partnership Award" category, and will be recognized during the 2009 Corporate Citizenship Awards Dinner on December 1, at the U.S. Chamber of Commerce in Washington, D.C.


M·A·C employees preparing meals at God's Love We Deliver, a M·A·C AIDS Fund grantee.

The M·A·C AIDS Fund is the heart and soul of M·A·C, with its employees giving their time, energy and talent to help those affected by HIV/AIDS worldwide. Established in 1994 by M·A·C, the M·A·C AIDS Fund supports men, women and children affected by HIV/AIDS globally. Introducing its first VIVA GLAM lipstick that same year, M·A·C decided that every cent of the selling price of the VIVA GLAM lipsticks would go to the M·A·C AIDS Fund. With a total of six shades of VIVA GLAM lipstick and two shades of VIVA GLAM lipglass now sold worldwide, and through the annual Kids Helping Kids Card Program, M·A·C, together with its retailers, has provided over $148 million to date for the M·A·C AIDS Fund. The M·A·C AIDS Fund is organizing its first brand-wide volunteer day for World AIDS Day on December 1, 2009. M·A·C employees around the world will roll up their sleeves and take off their brush belts to volunteer at local organizations that receive funding. Depending on the location, these volunteer activities will include serving or preparing meals, painting an apartment for individuals and families and helping local non-profits by reaching out to individual donors.