Giving Back Through Tough Times

Employee Giving Programs that Boost Your Bottom Line

CREATINGCOLLECTIVE BENEFITEmployees and Community Investment at Gap Inc.

Gail GershonDirector, Employee EngagementGap FoundationGap Inc.

GAP FOUNDATION’S ROLE

Global Social Investor

Employee Catalyst

Business Advisor

OUR PURPOSE

To fulfill personal promise to change

the course of lives in an

effort to break the cycle of poverty

STRATEGIC PILLARS 2TARGETCAUSES 2

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STRATEGIC PILLARS

COMMUNITY

EMPLOYEESSHAREHOLDERS

CONSUMERS

COLLECTIVEBENEFIT

LEVERAGECOMPANY ASSETS

THE VIRTUOUS CYCLE

Strategic Pillar #1: WE’RE BEYOND CASH

LEVERAGECOMPANY ASSETS

Employees Stores Vendor relationships Brands Marketing Product

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.

Strategic Pillar #2:

THE VIRTUOUS CYCLE

COMMUNITY

EMPLOYEESSHAREHOLDERS

CUSTOMERS

CollectiveBenefitdrivessustainability

TWO TARGET CAUSES

(Developed World Target Cause)

Youth empowerment through employment

YOUTH 12-18

(Developing World Target Cause)

Women’s advancement through life & work skills education

WOMEN 18-30

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

“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.”

KAREN DAVIS

GIVING THE GIFTS OF HOPE, PLAY AND A HELPING HAND

“Our mission is to assist children intriumphing over critical life obstacles

and bring the joy of play into their lives”

Hope = Grants

Play = Product

Helping Hand =Team Hasbro

TWO TYPES OF GIVING

Philanthropic Partnerships• Multi-Year Grants

• Product• Employee Engagement

Local Support• Where we have offices

• Yearly grants• Product

• Employee Engagement

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 toour philanthropic partners

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

PepsiCo FoundationSnapshot

• 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

PepsiCo FoundationMission

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 underservedcommunities in the U.S.and in developingcountries.

Complementing Performance with Purpose

• 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

HumanSustainability

EnvironmentalSustainability

TalentSustainability

Economic Development in Emerging Markets

Social ROI

Investment not Subsidy

Moves the World Forward

Taps Our Strengths & Core Competencies

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

Grant Example: Health PortfolioSave 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

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 ServiceCorps – Retired Associates

Purification of the waterfor the community

Sanitation & Hygieneat discharge to prevent

recontamination

Environment PortfolioChoosing Strategic Innovative PartnersA three-pronged approach to bring safe water to one million people in underserved populations by 2010

Distributionto the peoplethat need it

Protection at the Watershed resource

“last mile”

Grant Example: Inclusion PortfolioEscalera

• $2.08 million in 2008-2009• 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 underservedyouth in middle and high schools

• Regional overlap withDiamond Scholars program

• Adelante engagement is acore component

Employee Programs

• $9.2 million in 2008

• ExCEL Scholarships

• United Way

• Matching Gifts Program

Purpose Continuum

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

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

Claire LyonsGlobal Grant Portfolios

Foundation & ContributionsSeptember 23, 2009 - Global Giving & HR Magazine

July 2009

Guaranteed Goodness.September 2009

GlobalGiving

web platformwww.globalgiving.org

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projects

=corporate solutions

Example: Liquidnet HoldingsCustom Gift Cards

• Employees’ kids

• New employees

• Customer recognition

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

Institutional Partners

20+INSTITUTIONAL PARTNERS