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2010 CORPORATE RESPONSIBILITY REPORT 5221 Paramount Parkway Suite 200 | Morrisville, NC 27560 www.iContact.com | www.bcorporation.net/icontact This paper comes from a well-managed forest.

2010 CORPORATE RESPONSIBILITY REPORT...2010, and provides performance trends where possible. The scope of this report encom passes all of iContact’s wholly owned operations and activities

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Page 1: 2010 CORPORATE RESPONSIBILITY REPORT...2010, and provides performance trends where possible. The scope of this report encom passes all of iContact’s wholly owned operations and activities

2 0 1 0 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T

5221 Paramount Parkway Suite 200 | Morrisville, NC 27560

www.iContact.com | www.bcorporation.net/icontact

This

paper

com

es

from

a w

ell-

managed fore

st.

Page 2: 2010 CORPORATE RESPONSIBILITY REPORT...2010, and provides performance trends where possible. The scope of this report encom passes all of iContact’s wholly owned operations and activities

1

Ours is a story about technology, innovation and

growth, supported by a genuine belief that business

can contribute to social good in the world.

As an email marketing and online communications

company, we are proud of how our products and serv-

ices help companies and causes succeed online. But at

iContact, the way we do business is just as important.

www.iContact.com

The 2010 Corporate Responsibility Report, our first such report, is designed to inform our stakeholders about

iContact’s social, environmental and economic performance.

RepoRting StandaRdS

This report has been prepared in accordance with the

Global Reporting Initiative’s G3 Guidelines at the C Re-

port Application Level intended for entry-level reporting

organizations. iContact intends to have future reports

checked by the Global Reporting Initiative (GRI). See Ap-

pendix II for the GRI content index. More information on

the G3 Guidelines is available at www.globalreporting.org.

Scope of RepoRt

This report presents the material issues and impacts of

our activities during the fiscal year ending December 31,

2010, and provides performance trends where possible.

The scope of this report encompasses all of iContact’s

wholly owned operations and activities.

ShaRe YouR feedback

Questions or comments about iContact’s Corporate

Responsibility Report can be directed to

[email protected]. We also invite you

to share your feedback by taking a brief survey

at http://tinyurl.com/icontactreport.

RepoRt contRibutoRS

Matt Kopac, Corporate Responsibility

Manager, iContact

Lysandra Gibbs, Corporate Responsibility

Intern, University of North Carolina

Kenan-Flagler Business School

Brian Alvo, Corporate Responsibility Intern,

Duke University Fuqua School of Business

table of contentS

A Message from our CEO. . . . . . . . . . . . . . . . . . . 2

About iContact. . . . . . . . . . . . . . . . . . . . . . . . . . 4

Corporate Responsibility at iContact . . . . . . . . . . . 7

Customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Community . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Environment . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

2011 Priorities . . . . . . . . . . . . . . . . . . . . . . . . . 31

Appendix I: B Corp Rating . . . . . . . . . . . . . . . . . 32

Appendix II: Global Reporting

Initiative (GRI) Index. . . . . . . . . . . . . . . . . . . . 33

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i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t

32

A M E S S A G E F R O M O U R C E O

I am proud of the growth and

evolution iContact has experienced

since our founding in 2002. After

launching just nine years ago,

iContact has grown to 300 employ-

ees, $50 million in revenues, and

has venture capital backing to

take us forward into the future.

In recent years, we have adopted

a triple-bottom-line approach to

business and made it our mission

to add value and solve problems

for our customers, our employees and our community.

When Aaron Houghton and I met in 2002, our mission

was to create a technology business that would make

email marketing easy. As the business scaled, we began

to reflect on how we could build a company that fit with

our values. In 2009, we grew to 180 employees and,

seeing an opportunity for iContact to do well while doing

good, set out to make iContact a model for what a

high-growth venture capital company could be in terms

of social and environmental responsibility, while still

driving value to our shareholders.

In 2010, iContact took steps toward fulfilling this mission:

n Incorporated social and environmental measurement

and impact into our company values and purpose

n Achieved B Corporation certification and

joined Green America

n Made our B Corp score a primary Key Performance

Indicator for our Senior Leadership Team

n Hired a corporate responsibility manager

n Launched our employee Changemakers groups

and Culture Committee

n Installed Volunteerforce for Salesforce to facilitate

and track our volunteering and PULSE for Salesforce

to track our social and environmental impact

n Launched our 4-1’s giving program

(1% product, 1% payroll, 1% time, 1% equity)

n Hosted the first two of our now quarterly

free non-profit workshops at our offices

n Conducted and published our first comprehensive

environmental audit

n Offset 51% of our Scope 1, 2 and 3 CO2 emissions

n Established financial incentives for employees

who carpool

n Wrote a supplier policy that gives preference

to local, sustainable and certified vendors

At the outset of 2010, our concrete goals for corpo-

rate responsibility related primarily to our 4-1’s CSR

Program. I was pleased to see us almost double our

inaugural volunteer goal of 1,000 hours, reach 30%

of our goal to give away 1% of our product to North

Carolina non-profits, and donate almost $150,000 to charity.

While the iContact Foundation did not get off the ground, Aaron

and I formally committed 1% of company equity for when the

foundation is formally established in 2011. We also set the goal

to become a certified B Corporation, which we accomplished in

June, and then set a goal to increase our score to 85, which we

achieved in December.

For 2011, our objectives have expanded as our ambitions

have grown. For our customers, we are shooting for:

n Customer Satisfaction Ratings (CSAT) of 90%

For our employees, we aim to:

n Elevate employee satisfaction ratings to 3.9 out of 5

n Reduce employee turnover to less than 15%

n Increase employee and management diversity

n Expand opportunities for employee development,

including a new education reimbursement program

n Engage all employees in corporate responsibility

For our community, we want to:

n Volunteer 3,600 hours and have 90% of our employees

do a minimum of four hours of paid time off volunteering

n Give away an additional 200 free 4-1’s CSR accounts

n Legally form the iContact Foundation

For the environment, our primary goals are to:

n Assume full control of our energy consumption by

amending our lease and sub-metering our space

n Install lighting sensors and publicly display our energy usage

on company monitors

n Flatline our energy use in 2011 at 2010 levels

n Achieve carbon neutrality for U.S. operations

n Reduce landfill waste and move toward 100% environmentally

sustainable materials for operations

For the economy, we plan to:

n Grow our revenues and our team

n Encourage more responsible supply chains by

increasing our local and independent suppliers

to 30% of our significant suppliers

In terms of public policy, we want to see benefit corporation

legislation passed in North Carolina.

Finally, in order to take our commitment to corporate respon-

sibility to the next level, we are evaluating managers on social

performance as well as financial performance, developing a

scorecard to measure our 2011 performance and striving for

a B Corp score of 89.

iContact has already taken tremendous steps towards being

a triple-bottom-line company, but we recognize that our journey

has only just begun. At iContact, we recognize the tremendous

power that technology and innovation have to transform the

world for the better. It is our sincere hope that with a trusted

product and a purpose-driven business philosophy, we can posi-

tively impact the world while we create value for our shareholders.

Sincerely,

Ryan Allis

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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Welcome to iContact’s first Corporate Responsibility Report! Thank you for taking the time to learn about

iContact’s journey to become a purpose-driven business with a focus on economic, social, and environmental value

creation. We are proud of the tremendous progress we have made and mindful of the steps that remain.

A History of iContact

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i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t

54

n iContact for Salesforce pairs our trusted email marketing

solution with Salesforce’s customer relationship management

tools. By empowering our customers to engage, convert

and retain customers, leads and contacts, iContact for Sales-

force is seamlessly integrated to look and feel like the tools

customers are already comfortable with.

iContact Free Edition, just launched in early 2011, offers our

email marketing solution for free to all customers who have up

to 500 contacts. iContact Free Edition comes with a select set

of templates as well as full email and chat support. We want to

democratize online marketing for all!

2010 AwArds

n Webaward 2010 Best Email Site

n Best of 2010 Customer Choice for AppExchange

(iContact for Salesforce)

n Inc. 500 #345

n Business Leader Magazine Corporate Volunteer of the Year

n B Lab Einstein Award

CerTiFiCATiOns And MeMBersHiPs

B CorporationiContact was proud to become a B Corporation in 2010 after

completing the comprehensive B Impact Ratings Survey.

A certified B Corporation is a new type of corporation that uses

the power of business to provide a public benefit. B Corps are

unlike traditional businesses because they meet comprehensive

and transparent social and environmental performance standards,

meet higher legal accountability standards and build business

constituency for good business.

When we first took the assessment we fell short of a qualifying

score of 80. However, after taking deliberate steps in early 2010,

iContact crossed the threshold with a score of 82 and qualified

for certification. To elevate our B Corp rating, we:

n Hired a staff person to focus on corporate responsibility

n Tied company bonuses to our corporate responsibility

performance

n Implemented a new whistle-blowing policy

n Conducted our first environmental audit

n Switched office and janitorial cleaning supplies to

more environmentally friendly products

n Reduced our year-on-year carbon footprint by 30%

and offset 51% of emissions for 2009

Our commitment to improving our social and environmental

performance led us to make our B Corp score a Key Performance

Indicator for our Senior Leadership Team. We set a goal to reach

a score of 851 by the end of 2010, which we attained by:

n Developing a conflict of interest questionnaire for our Board

n Passing a new policy to evaluate all managers on their teams’

community performance

n Implementing a new supplier policy that gives preference to

local, sustainable, women- and minority-owned enterprises

n Exceeding 75% of employees volunteering in 2010

For our efforts, we were highlighted in the 2011 B Corp Annual Re-

port. For 2011, our company goal is to reach a B Corp Rating of 89.

Green AmericaiContact was also proud to become a Green America Associate

Member in 2010. Green America is a non-profit membership

organization dedicated to harnessing the economic power of

consumers, investors and businesses to promote social justice

and environmental sustainability. They do this by screening and

approving businesses for social and environmental responsibility.

In 2011, iContact will complete the Green America screening

process and seek the Green America Seal of Approval. To receive

the Seal of Approval, companies must demonstrate that they:

n Focus on using business as a tool for positive social change.

n Are values-driven, as well as profit-driven

n Are socially and environmentally responsible in the way they

source, manufacture and market their products and run their

offices and factories

n Are committed to and employ extraordinary and innovative

practices that benefit workers, communities, customers and

the environment

Our Business

iContact is the second-largest email marketing firm in the world

for SMBs as measured by revenues and employees. We are based

in North Carolina, incorporated as a Delaware C Corporation and

recently opened our first international office in London. We serve

over 70,000 small and medium businesses and non-profit organi-

zations worldwide.

iContact empowers companies and causes to easily create,

send, and track effective email newsletters, surveys, blogs,

autoresponders and RSS feeds. We believe that email marketing

should be easy and have designed iContact to give customers all

the best features at the right price. Our Email Marketing Solution

serves our small business and non-profit customers, while our

suite of iContactPlus products is targeted at medium businesses.

iContact’s Email Marketing Solution provides the tools to

empower our customers to grow and manage contacts, easily

create and send attractive messages, achieve deliverability rates

of 99%, track emails, and integrate with third-party applications.

iContactPlus delivers our leading email marketing platform

plus customized managed solutions. Certified experts work

directly with customers to ensure their email marketing cam-

paigns succeed. iContactPlus has five offerings:

n Enterprise Solutions leverages iContact’s leading email market-

ing platform while delivering affordable, customized account

management services. Certified experts guide customers every

step of the way while assisting with design, strategy and

performance analysis.

n The Partner Program allows approved partners to leverage the

iContact email marketing platform to deliver an email solution

to their customers. Under the Partner Program, iContact pro-

vides co-branded landing pages, dedicated support, marketing

materials, API access and commissions.

n The Agency Program is intended for advertising agencies,

marketing companies, or other professional services firms

looking to deliver best-in-class email marketing services to

their clients. Agency clients are able to seamlessly manage

any number of client accounts from one central platform.

n High Volume Sending is designed for marketers with large

message volumes. With iContact’s High Volume Sender

Service, customers get high inbox delivery rates, fast

message delivery rates and access to a dedicated Client

Success Manager for professional assistance.

A B O U T i C O N T A C T

Ceo ryan allis poses with members of hisstaff to celebrate becoming a b Corporation.

1 A detailed analysis of our B Corp rating appears in Appendix I

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i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t

76

V I S I O N , M I S S I O N , P U R P O S E , V A L U E S

Wow the Customer – We wow our customers with our product, service and attitude.

We always value our customers because their success drives ours. We keep the

customer in mind when making decisions. We are a customer-centered organization.

Operate with Urgency – We maintain a proactive bias toward action. We seek speed

of implementation. We seize opportunity while maintaining quality. We own the issue.

Today, not tomorrow! TNT!!

Work without Mediocrity – We hold ourselves accountable for the highest

performance standard. We won’t tolerate low performance. We are always learning

and improving. We engage in honest, direct, and passionate debate. We make

commitments thoughtfully. We will provide immediate, honest feedback.

Make a Positive Wake – We are ethical, act with integrity and follow the Golden Rule.

We enjoy ourselves, have fun and are a bit wacky. We make our culture

creative, energetic, and fun. We care about and report on our social and environ-

mental impact. We build people up. As we succeed, we give back.

Engage as an Owner – We efficiently use resources as if they are our own.

We recognize time and cash are precious and treat them as such. We enable every

team member to become an owner.

wOw

M

e

Our VisiOn

Build a great global company, headquartered in North Carolina,

for our customers, employees and community

Our MissiOn

Make online marketing easy so companies and causes can grow and succeed

Our 2020 MissiOn

Become the largest global provider of products and services

that power the online marketing success of SMBs

Our PurPOse

Create value for our customers, employees, community and shareholders while having

fun and serving as a model for what a high-growth venture-backed company can become

in terms of social and environmental responsibility

VAlues

Our WOWME values form the foundation of our MVP Statement

and all of our decisions and actions

sTAkeHOlders Our MATeriAl issues Our PriOriTies key PerFOrMAnCe indiCATOrs

Customers Provide memorable

customer support

Employees Build a fair, diverse

and inclusive workplace

Attract and retain great people

and create opportunities

for continued development

Engage all employees in CR

Community Build up the communities we’re

located in

Environment Be an environmental leader

among our peers

Continuously improve our

environmental footprint

Manage the social and

environmental risks

of our operations

Economy Continue to grow customer base,

employee base and revenue

Use suppliers that demonstrate

socially and environmentally

responsible practices

Delivering “WOW” through products

and customer service is core to our

business strategy.

To retain employees and build future

managers for the company, we need

to focus on development. We must

empower our team members to drive

the company forward, both in core

work functions and in corporate

responsibility initiatives.

iContact is committed to giving

back to the community.

iContact is committed to

reducing and mitigating our

environmental footprint

We aim to be the largest provider of

online marketing services in the world

and a significant contributor to

the North Carolina economy.

Our corporate responsibility (CR) initiatives derive from our value to Make a Positive Wake and are woven into all aspects of our business.

The purpose of these initiatives is to ensure we serve all of our key stakeholders in meaningful and measurable ways. In order to ensure that

our actions match our words, we are in the process of identifying the key performance indicators to measure our successes and shortcomings.

We will continue to refine these metrics throughout 2011.

C O R P O R A T E R E S P O N S I B I L I T Y

CSAT Scores

Employee Satisfaction Score

Turnover rates

Diversity metrics

Percent of employees and managers

whose bonuses include social and

environmental criteria

Meet our 4-1’s goals

Metric tons of carbon emissions (CO2e)

Reduction of energy use relative

to baseline year (%)

Average number of sheets of paper

used per employee per year

Percent of paper and other materials

that are recycled content or

otherwise sustainable

Reduction in landfill waste stream

Growth in top and bottom line

Growth in employee headcount

Percentage of suppliers that

meet established criteria

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enVirOnMenTAl CHAnGeMAkers

Led in 2010 by Chris Thiele and Neil Lancia, the Environmental

Changemakers promote environmental sustainability within

iContact’s walls, in the Triangle, and in the broader world. In its

first year, the committee focused most of its efforts internally.

Some of the projects the group has taken on include:

n Implementing a centralized waste and dual-stream recycling

collection system, and purchasing a scale to measure landfill

waste and recycling output

n Convincing the company to purchase LED monitors

instead of LCD

n Procuring iContact-branded sporks and plates for all employees

to replace throw-away utensils and plates

n Putting up an iContact carpool map and requesting financial

incentives to facilitate and encourage participation

n Adopting a stretch of highway near the office

Says committee member Tiffany Ogren, iContact for Salesforce

success manager, the Changemakers “attract some very bright

minds from within the company, and the ideas that flow when

they all get together are spectacular! It’s amazing to watch an

idea transform from the first thought process in a brainstorming

session, all the way to fruition.” And the benefits do not stop at the

company doors, said Ogren. “Changemakers’ ideas and mind-set

also spill over into our personal lives. The other day, when shopping

for a new travel coffee mug, I opted for one made of recycled mate-

rials, because I knew my fellow Changemakers would be proud!”

sOCiAl resPOnsiBiliTy CHAnGeMAkers

Says Craig Burham, account manager, a 2010 co-leader alongside

colleague Amber Neill, “The Social Responsibility Changemakers

is a group of people who are passionate about creating a healthy

and productive work environment, as well as finding ways for

iContact to give back to the community.” Some of the projects

the group took on in 2010 include:

n Developing a non-profit ambassadors program to connect

employees with non-profit partners

n Launching a free email marketing workshop for

North Carolina non-profits

n Hosting monthly spotlights on local non-profits at lunchtime

n Organizing Habitat for Humanity, Conservators’ Center and

other group volunteer activities

n Formulating a new process for allocating our corporate giving

n Consulting with HR on a new education reimbursement program

n Contracting with Triangle Healthy Vending to give our

employees access to healthier snacks

n Sponsoring an on-site fair trade fair for employees

Says committee member Ann Garrison, “The reason I got

involved with Changemakers was the same reason I accepted a

job at iContact. Not only is this a great company, but the 4-1’s

program impressed me. My favorite parts about the Change -

makers are being the first to know about volunteer activities

and company contributions and having the opportunity to take

an active role in improving what makes iContact unique.”

wHAT we’re wOrkinG On

While attendance at Changemakers meetings is strong, participa-

tion is weighted toward a couple of departments. In 2011, we aim

to increase participation across all company departments. One

challenge is accommodating our Customer Support colleagues,

who by the nature of their work have less flexibility in attending

company functions.

In order for iContact to fulfill our vision of being an enduring

triple-bottom-line company, the long-term goal is for corporate

responsibility to be part of everyone’s job description. It must be

ingrained into the culture and fabric of the company’s operations.

In 2011, we will be identifying recycling captains in order to have

a Changemakers representative in each department. This will

be the foundation for having a point person in each department

whose core responsibilities include liaising with the corporate

responsibility manager and the Changemakers working groups to

align their team members’ actions with the company’s corporate

responsibility goals.

wHisTleBlOwer POliCy

This policy provides an avenue for employees to raise concerns

with reassurance that they will be protected from reprisals or

victimization for whistle-blowing. The policy is intended to cover

protections for employees if they raise concerns regarding

iContact, such as incorrect financial reporting, unlawful activity

and activities that are not in line with company policies including

the Code of Business Conduct.

GOVernAnCe

The Board of Directors is responsible for setting the tone for a

culture of integrity and responsibility, overseeing management

and considering and approving strategic alternatives and plans.

The Board comprises shareholders, investors and iContact’s

founders. Shareholders can make recommendations directly to

the Board, while employees communicate ideas through their

managers and through employee committees (“Changemakers”).

The Board discusses iContact’s corporate responsibility strategy

with management and reviews the Corporate Responsibility Report.

Chief Executive Officer Ryan Allis has primary responsibility

for ensuring iContact acts as an exemplary corporate citizen.

Executive Sponsor Pam Rose, VP of Human Resources, is

the liaison to the Senior Leadership Team on Corporate Respon-

sibility Initiatives.

Corporate Responsibility Manager Matt Kopac oversees the

development of the Corporate Responsibility Report. Kopac is

charged with leading iContact’s corporate responsibility initiatives

and integrating social and environmental responsibility principles

into all aspects of the business.

Employee Committees The Changemakers are employee-based

action teams that provide the fuel, passion and ideas for many

of iContact’s Corporate Responsibility initiatives. These employees

come together from across the company to help iContact fulfill

our purpose. While iContact’s corporate responsibility vision comes

from our executive leadership, we find success only through the

active buy-in of employees at every level of the company.

Allis first formed the Changemakers in early 2010. Borrowing

from Ashoka: Innovators for the Public’s descriptor for social

entrepreneurs who seek to bring about positive and transformative

change in the world (“Changemakers”), Allis envisioned the group

offering ideas for how the company could innovate around social

and environmental value creation.

In June 2010, there was sufficient enthusiasm and involvement

from employees that the Changemakers were split into two

committees: the Environmental Changemakers and the Social

Responsibility Changemakers. Each committee has volunteer

employee leaders who facilitate the involvement of their

colleagues. In 2010, 60 of our 240 employees were actively

involved with these groups.

Allis also formed a culture committee in 2010 to help define

and reinforce iContact’s unique corporate culture.

C O R P O R A T E R E S P O N S I B I L I T Y C o n t i n u e d

i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t

98

CHris THiele Facilities Manager

“Simply that the Environmental

Changemakers committee exists is

testament to the ability of a corpora-

tion to take a principled stance,

point itself in the direction of being

environmentally responsible and

then engage in vigorous

problem solving to act while not

adversely affecting the business

side. I am proud to be part of this

company, and I believe that if we

maintain and follow through,

iContact should serve as a lodestone

to other like-minded businesses that

might not know how to get started.”

Ann GArrisOn Transition Specialist

“My favorite parts about the

Change makers are being the first to

know about volunteer activities

and company contributions and

having the opportunity to take an

active role in improving

what makes iContact unique.”

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i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t

lAurA BenninG Customer Experience Advocate

“Our customer support team is

the lifeline to our customers.

Being at the front lines, they have

a unique opportunity to hear

what our customers are saying

firsthand… good and bad.

And the support team doesn’t

just listen to feedback from

customers; they also teach,

encourage, train, guide, calm

and empathize. They find

solutions and provide the

stepping stones that give

our customers a path

to email marketing success.”

“The iContact support team is a

legion of rock stars that sincerely

want to help our customers

succeed. How many companies

can say that these days?”

MeAsureMenT

In addition to utilizing third-party tools, such as the B Ratings

Survey, iContact performs our own internal measurement of key

social and environmental performance metrics. These are made

available to employees through two Salesforce.com applications:

Volunteerforce and Pulse.

In early 2010, we launched Volunteerforce, an application that

allows companies to create a database of volunteer organiza-

tions, activities and contacts. Volunteerforce provides a platform

for employees to easily sign up and track their volunteering online

and lets managers approve and track their direct reports’ volun-

teer time during work hours. We are able to then transparently

measure and display our progress against our volunteer goals.

We also began using Pulse in 2010. Pulse is a web-based tool

that allows businesses, foundations, investors, associations and

non-profits to gather and manage metrics data relating to social

and environmental performance. Pulse uses standard metrics

as developed by the Global Impact Investing Network’s (GIIN)

Impact Reporting and Investment Standards (IRIS) taxonomy,

which was developed with support from the Rockefeller Founda-

tion, B Corporation, Acumen Fund, PricewaterhouseCoopers

and Deloitte. Users can then submit their data to IRIS and

access the aggregate data for the purposes of benchmarking.

iContact uses Pulse to track and make available data on:

n Charitable giving

n Volunteering

n Employee diversity

n Turnover and job growth

n Energy use and carbon footprint

n Supplier statistics

iContact employees can then interact with this data through

concise charts and graphs to see trends over time. Allis keeps

some of these key metrics on his CEO dashboard.

We believe this level of measurement transparency will enable

our employees to better understand our corporate responsibility

initiatives, see how we are performing in comparison to our

goals, and feel empowered to take action.

PeTer AnsBACHer Account Manager

Ansbacher, our top male volunteer,

is an account manager in the Sales

Department. Since iContact started

the 4-1’s volunteering program in

early 2010, Ansbacher has been an

avid volunteer, logging 69 hours with

three different organizations.

“It makes me strive to do even better

in my job and push harder, knowing

that the better our company does,

the more opportunities we will have

to help others, both monetarily and

through our volunteering.”

Ansbacher also volunteers with the

HOBY Leadership Seminar, which he

named as his favorite volunteer

experience in 2010. “This seminar is

an intensive three-day volunteer

event that I facilitated for a group

of 12 bright, rising high school

juniors. It was an amazing

experience and it was great to be

able to see that we have students

with a very bright future who

are going to make great leaders.”

C O R P O R A T E R E S P O N S I B I L I T Y C o n t i n u e d

1110

C U S T O M E R S

As a company, our primary stakeholder is our customer. If we do

not fulfill our promise to help our customers grow and succeed

online, we will not be around in the future to serve our other

stakeholders. In order to keep abreast of our customers’ experi-

ence, we deploy regular surveys to get feedback on:

n Overall satisfaction with our products and services

n Satisfaction with our customer support

In 2010, we received an average of 1,915 survey responses

per month.

OVerAll sATisFACTiOn wiTH iCOnTACT

In terms of overall experience, we ask our customers to rank

our performance from the trial period, user experience with our

products and services, to our customer support. Starting in

October 2010, we began asking our customers to rank us on a

scale of 1-5. From October to December, 85.5% of respondents

gave us a 4 or 5 out of 5, with an average rating of 4.27.2

iCOnTACT CusTOMer suPPOrT

At iContact, we believe that our exceptional customer service,

provided through phone, chat and email, inspires every part of

our business to excel, and distinguishes us from our competitors.

In monthly surveys, customers have given us great feedback:

The percentage of customers who are satisfied or extremely

satisfied with our customer support is consistently above 88%.

In November 2010, we surpassed 90% for the first time.

2010 Overall Customer Satisfaction Ratings

90

85

80

75

%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2 Before October 2010, we had customers rank us on a scale from 0 to 10. Between January and September 2010, over 86% of survey respondents rated us a 7 or above out of 10.

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lAurie OsBOrne QA Engineer

Laurie Osborne was our top volunteer in 2010. In addition to completing all 20 hours of the time allotted to her under the 4-1’s CSR Program, Osborne completed an

additional 80 hours of volunteering in her personal time. Said Osborne,

“I’ve always had a heart for giving mytime to help those in need in the

community. When you recognize thatyou can make a difference by putting

your effort, along with others’, to make something amazing happen,

it’s a wonderful feeling.” What is more, volunteering has

brought her closer to her colleagues.“Volunteering has given me a chanceto bond with others [coworkers] who

have that same passion.”

Among other activities,

Obsorne volunteers with the Hugh

O’Brian Youth (HOBY) Leadership

Seminar. Her favorite volunteer

experience in 2010 was with

“the Conservators’ Center, building

winter homes for the kinkajous!”

1312

wHAT we’re wOrkinG On

In 2011, we aim to keep our customer ratings high while we scale

our active users. For customers’ overall experience with iContact,

our goal is to continue to exceed 85% satisfaction and top our

Q4 2010 average rating of 4.34. In terms of customer satisfaction

with their support experience, our goal for the year is 90% satis-

faction. Moreover, we now track the percentage of customers who

say that they were WOWed by our customer service. For 2011,

our target is to have more than 70% of survey respondents state

that they were WOWed.

CusTOMers And COrPOrATe resPOnsiBiliTy

We also recently surveyed our customers to gauge their awareness

and opinions of our corporate responsibility initiatives. The principal

takeaway from the survey was that if we wish good corporate

citizenship to be one of our value propositions to customers, we

need to do a better job of communicating our efforts:

n Only 4-5% of respondents were aware of our 4-1’s CSR

Program initiatives.

n A slightly greater proportion of respondents (15%) were

aware of our environmental initiatives.

n Only 1% of respondents were aware of our progressive

employment practices.

n 13% knew what a B Corp is, while only 4% knew that

iContact is a certified B Corp.

Perhaps in part due to this lack of awareness, only 10% of

respondents said our corporate responsibility was a factor in

their decision to use iContact. However, 54% said they were

more likely to remain an iContact customer because of our social

responsibility (52% due to our environmental responsibility).

Similar numbers said they were more likely to refer friends and

colleagues to iContact now that they know about our corporate

responsibility initiatives.

Most impressively, respondents who were aware of our

environmental initiatives had a 16 point higher Net Promoter

Score (the likelihood that a customer would refer us to friends

and colleagues) for iContact than those who were not aware.3

At the same time, there were customers who told us that corporate

responsibility was not an important consideration for them.

Below is a sampling of the qualitative feedback from the survey:

n “I was not aware of iContact’s current and ongoing support

of social and environmental causes. Receiving this information

on iContact’s involvement will definitely be another reason

to be a proud and loyal client of your marketing services.”

n “I take my own green initiatives, and I don’t have time to worry

about what you do. If your organization was local, then I would

worry about your social responsibility and green initiatives.”

n “I use iContact because of its pricing and great customer

support. All of the ‘green’ stuff is fine but the product and

service is why I am really using you.”

n “We are happy knowing we are working with such a socially

responsible company!”

n “Great job — I wish I had known about all of these initiatives.

Our company is trying to be more sustainable, too.”

n “The social and environmental initiatives don’t matter to

me as much as having a great interface for creating outgoing

emails. I hope you can work on making the writing of emails

more user-friendly!”

C U S T O M E R S C o n t i n u e d

2010 Satisfaction with Customer Support Experience

90

85

80

75

%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

3 There were too few respondents aware of our social responsibility initiatives to draw any conclusions

2010 Average Satisfaction Rating

5

4

3

2

1

Oct

Nov Dec

Our 4-1’s COrPOrATe sOCiAl

resPOnsiBiliTy PrOGrAM

For iContact and other businesses to be successful and enduring,

the context in which we exist – our community in the broad sense –

matters significantly. By helping make our community stronger

today, we believe we are helping our business over the long term.

In 2010, we introduced our 4-1’s Corporate Social Responsibility

Program (4-1’s CSR Program) as a way to formalize and standardize

our community giving. We felt that a more strategic and transparent

approach to community engagement would hold us accountable

and align more fully with our business goals. Along the way, we

discovered that these initiatives are also great employee engage-

ment tools, connecting employees to the world and imbuing their

work with even greater meaning.

Our 4-1’s CSR Program includes the following contributions:

n 1% of Employee Time n 1% of Product

n 1% of Payroll n 1% of Equity

1% OF eMPlOyee TiMe

In order to empower our employees to be active members in their

communities, we allocate 1% of employee time, equivalent to

2.5 paid workdays (20 hours) per employee per year, to volun-

teer activities. Volunteerforce is available to assist employees in

finding charitable organizations and activities that interest them.

Our approach is to offer a mix of group and individual activities,

including recommendations by the corporate responsibility

manager and by other employees who input opportunities into

Volunteerforce. Our employees readily participate in activities

from coaching for the Special Olympics, to building homes for

Habitat, to working in local soup kitchens, to building websites,

to helping organize runs/walks for charity and more.

Over the course of the year, we saw tremendous growth in the

number and percentage of employees volunteering. We attribute

this growth to increased awareness of the paid time off, a greater

number of available volunteer activities and the simple passage

of time, which afforded more opportunity to get involved. Nine

employees volunteered in January 2010; by the end of the year,

158, or 76% of the company,4 had volunteered at least once

during the year. Thanks to this great participation rate, we per-

formed 1,867 volunteer hours with 84 non-profit organizations,

surpassing our 2010 volunteer goal of 1,000 hours.

C O M M U N I T Y

4 Based on the average number of employees employed (211) at iContact throughout the year

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i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t

15

n “In some departments, there is a stigma that you’re

abandoning your work duties to volunteer when you take

the 1% that the company provides”

n “It’s not a priority for me”

n “Mostly laziness and time constraints to a small degree”

n “Time management is my reason for not volunteering more.

I am working towards volunteering more in 2011”

For 2011, our twin volunteer goals are:

n Volunteer over 3,600 total hours for the year (including

personal time that employees report, which we can now

track separately from 4-1’s volunteering)

n 90% of employees will volunteer at least four

hours of their total 20 hours of allotted time

To surmount obstacles to volunteering and to further weave

performance on corporate responsibility in with other company

expectations, we will be evaluating all managers on the extent

to which their direct reports volunteer in 2011.

1% OF PrOduCT

At iContact, we believe in the power of our product to help

companies and causes succeed online. Too often, because of cost,

difficulty of use or a lack of human resources, non-profit organi-

zations do not make sufficient use of technology. iContact is

seeking to break down barriers for non-profits in North Carolina

by offering our Email Marketing Solution free of charge to quali-

fied organizations in North Carolina for up to 10,000 subscribers.

At the end of 2010, we were serving 237 non-profits – providing

roughly $14,000 worth of in-kind product per month – and that

number is growing daily.

Additionally, with discounts to non-profit organizations outside

of North Carolina on all of our listed prices and the recent launch

of our iContact Free Edition, we are now able to help causes across

the country take the first steps toward successfully marketing

themselves online.

As a complement to our 1% of Product initiative, iContact

launched quarterly free non-profit workshops in 2010. Our

Changemakers decided that it was not enough to give North

Carolina non-profits free iContact accounts; we had to make

Members of our Finance and Customer support teams at the Conservators’ Center.

14

iContact helps sponsor arthur tigerat the Conservators’ Center.

“Thanks to randall, Communities in schools of durham has benefited from a new and

updated website that more effectively and visually tells our story. Thank you, randall and iContact!

we couldn’t have done this without you.” – Tracie Miller of Communities in schools of durham

kellie BOGGs Account Manager

“I saw the non-profit workshop as an opportunity to volunteer with my fellow iContact colleagues while

getting to know some local non-profitorganizations in the area. How could I

say no to that? The most rewarding partwas the positive feedback we immedi-ately got from the non-profits. It mademe feel good to hear them talk abouthow valuable the workshop was and

how they would walk away with moreknowledge about email marketing.”

The availability of passionate, skilled volunteers from iContact

has had a measurable impact on our community. Tracie Miller of

Communities In Schools, a non-profit whose mission is to surround

students with a community of support, empowering them to

stay in school and achieve in life, commented on the work done

by Randall Rozzell, a graphic designer on our marketing team.

“Thanks to Randall, Communities In Schools of Durham has

benefited from a new and updated website that more effectively

and visually tells our story. Thank you, Randall and iContact!

We couldn’t have done this without you.”

wHAT we’re wOrkinG On

Although we are proud to have surpassed our inaugural volun-

teering goal, we take note of the fact that our employees only

volunteered at best 43% of the total hours made available to

them by the company.5 When asked, “What, if anything, has

prevented you from volunteering or being more engaged in

iContact’s corporate responsibility initiatives?” respondents

gave answers including the following:

n “Work! I love volunteering – it refreshes my spirit! But with

so many initiatives at work and meetings, I feel really, really

guilty about volunteering during business hours”

n “Manager not permitting me to leave work”

C O M M U N I T Y C o n t i n u e d

2010 iContact Employee Volunteering

300

250

200

150

100

50

Full-Time Employees

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Volunteers

sHAwnA BArleTTe Accountant

“As with all things Changemakers, I appreciate that I am afforded the

opportunity to participate at the levelwe are able to in this company. It makes

me feel like I can make a difference.”

5 The actual percentage is sure to be lower than 43%, since in 2010 we were unable to differenti-ate volunteering done on company time from volunteering done on personal time in our system

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“iContact employee participation in

our work directly impacts our ability to

deliver effective services to women

in need. similarly the financial support

iContact provides goes directly to our

programs which put disadvantaged women

back on the path to self-sufficiency.”

– Pat nathan

dress for success Triangle, nC

i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t

17

1% OF PAyrOll

The third facet of our 4-1’s CSR Program is to contribute 1% of

our Payroll equivalent to 501(c)(3) organizations. This amount

includes matched donations for individual employee contributions

up to $300 throughout the year, and grants made at the end of

each year. This philanthropic channel allows us to support organi-

zations that strive to make our local and global communities

healthier, safer, more innovative and more just.

Including matched donations, iContact gave a total of $149,045

to 149 organizations in 2010, up from $109,000 to 63 non-profits

in 2009. Of those amounts, iContact matched $8,974 in 2010, a

more than fourfold increase over employee giving in 2009, when

employees requested matches for $2,185.

In addition to supporting deserving organizations, our 1% of

Payroll initiative has proven a great way to engage our team

members in our company purpose: at the end of the year, total

charitable dollars are divided by the number of employees and

each person is given a share of company giving to allocate to an

organization of his or her choosing.

This process was a new innovation in 2010, devised by our

Social Responsibility Changemakers. Prior to 2010, only a small

percentage of non-senior-level management took part in deciding

how to allocate the funds. However, as a result of this shift in

strategy, iContact saw 94% participation in 2010 giving.

Wes Stewart and Shawna Barlette, staff accountants, were two

members of the Changemakers committee that came up with the

new giving process. Said Barlette, “By getting more employees

involved, the new process increased the overall visibility of the

program and encouraged employees to research organizations,

thereby increasing their own understanding of the importance

of this component of our 4-1’s CSR Program.”

With her share, Barlette supported Smilemakers. “As a result

of our contribution to this organization, six children in developing

nations have received life-altering cleft palate surgery. A simple,

and inexpensive, surgery is all it takes to change their lives

forever.” Said Stewart, who supported The Samaritan’s Purse,

“It’s wonderful to work for a company that gives employees an

opportunity to make a positive impact on charitable organizations

that are important to them.”

snAPsHOT OF GiVinG:

n 27% of funds went to organizations outside the United States

n 73% of our giving went to organizations working in the United

States, with 56% granted to North Carolina non-profits

n We supported 149 different organizations across a number

of issue areas, including health, hunger and homelessness,

youth empowerment, international development, animal

rescue and more

iContact employees tiffany ogren and taylor barr volunteer with Habitat for Humanity.

sure they could take full advantage of them. Therefore, in addi-

tion to the array of support we provide to all of our customers,

we hosted our first half-day, on-site workshop for North Carolina

non-profits in June.

The workshops include training on all aspects of iContact email

marketing; instruction on the concept of “deliverability”;6 a best

practices session where non-profits share email marketing strate-

gies; and one-on-one training sessions with skilled technical

service representatives and account managers. Between our June

and November workshops, we trained 35 non-profit organizations.

In addition to providing value to our non-profit participants,

the workshops have also been valuable for our team members.

The workshops, like our other volunteer activities, expose employ-

ees directly to community organizations and the impact of our

4-1’s CSR Program. We have found that this experience turns

employees into evangelists for the program.

wHAT we’re wOrkinG On

With a total of 237 North Carolina non-profits using our free email

marketing product at the end of 2010, we were only serving 35%

of our target. We had over 67,000 customers at the end of 2010,

1% of which would be (670) free 4-1’s accounts. We feel good about

this result after one year, but we have work to do to meet our goal.

By the end of 2011, our goals are to:

n Reach 60% of our 1% goal (about 430 total accounts)

n Continue to train at least 25% of the total number of 4-1’s

non-profits through our quarterly workshops

C O M M U N I T Y C o n t i n u e d

16

6 Getting messages into the inbox with the permission of your subscribers

2009 2010

4-1’s

170

150

130

110

90

70

(in thousands)

160

140

120

100

80

60

40

20

Total Giving

Matched Donations

Number of Organizations

“you guys were amazingly helpful

and considerate during the non-profit

workshop. Our questions were

answered and we left feeling confident

of our ability to use iContact to

communicate with our stakeholders.”

– Alex naar

Center for sustainable Tourism

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1918

In addition to monetary giving, we also gave in-kind support to

Urban Ministries of Wake County through a Thanksgiving food

drive that netted over 500 lbs of food.

wHAT we’re wOrkinG On

We were pleased with the 2010 process and hope to build upon

it to surpass 95% employee participation in 2011.

1% OF equiTy

iContact has committed 1% of company ownership to the iContact

Foundation. The 1% of equity takes the form of over 100,000

shares of iContact stock whose value is determined by the com-

pany’s stock valuation. Ultimately, the foundation will have the

market value of these shares at its disposal to deploy as additional

community investments.

wHAT we’re wOrkinG On

The foundation was originally to be launched in 2010, but will now

be set up as we near a liquidity event. We anticipate that the shares

will become liquid by 2013. In the meantime, we will develop our

grant-making priorities, criteria and processes for the foundation.

C O M M U N I T Y C o n t i n u e d

ryan allis with the rwanda Church Choir in Ginsengi, rwanda while visiting the akilah institute, an iContact grantee. iContact has adopted a highway to help keep our north Carolina environment pristine.

“iContact's email marketing services are

well-designed, crisp, and tremendously

professional. Having free access means

that our funding goes even further toward

direct impact on our clients.”

– sarah kate Fishback

institute for sustainable development

iContact is committed to creating an unforgettable work envi-

ronment for our employees. It is this commitment that made

iContact one of the Best Places to Work by the Triangle Business

Journal four years running from 2006 to 2009. However, after not

receiving the Best Places to Work award in 2010, we are cognizant

that we cannot be complacent.

BeneFiTs

At iContact, we believe in investing in our employees’ health and

future. Hence, we offer benefits that include:

n Health insurance with 100% of premiums paid for employees

under base plan

n Dental insurance

n Short- and long-term disability

n Wellness workshops and health screenings

n Paid maternity and paternity leave

n 401(k) match

n Stock options for all full-time employees

n Employee assistance program

n Flexible spending account

CAreer deVelOPMenT

In order to ensure that our employees can fulfill their roles and

responsibilities in a growing and changing company, it is critical

that we invest in and help grow our people professionally.

Management Training Our yearly Management and Leadership

Training (MALT) series contains six sessions: Management

Essentials; Facets of Management; Coaching Skills; Motivating,

Empowering, and Retaining Employees; Leading & Communicat-

ing Change; and Managing Up, Down & Across. MALT is attended

by all managers, directors and senior leadership to teach new

techniques and foster cross-team collaboration on challenges they

face. Our executive staff also attends the Grinnell Leadership

JumpStart Program to enhance their self-knowledge and continue

their leadership development.

iContact University iContact University is an internal learning

management system that contains 317 online courses developed

by Skillsoft that are available to all employees, anytime, via the

Internet. These courses are grouped into four categories: Busi-

ness Skills, Desktop Skills, HR Compliance & Safety, and IT

Skills. We highly encourage all employees to take advantage of

these courses.

E M P L O Y E E S

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CulTure

A critical component of creating an unforgettable work environ-

ment is fostering a unique culture – a sense of shared identity.

In August 2010, our Culture Committee went through an exercise

to define our corporate culture, where participants were asked

to write down the five words that they felt best described our

culture. The five words that came up most frequently were:

n Fun

n Creative

n Energetic

n Challenging

n Community Oriented

This process gave us vital information about our culture and

where to invest to preserve it. Some of the steps we have taken

to live up to our employees’ vision for our culture include:

Fun, creative and energetic:

n We offer monthly massages for employees, free drinks,

monthly company lunches, and annual car washes.

n We host quarterly high-energy company team

kick-off meetings (with costumes).

n We perform new employee graduations in full regalia with

pomp and circumstance.

n We have a 17’ slide that goes from the game room to the

product and marketing area.

n Our office space is decorated with a world geography theme.

Challenging To work at iContact, you must be passionate about serving

the customer and working hard. We are fast paced and have a

performance-based meritocracy.

Community Oriented

n We are a purpose-driven company and B Corporation.

n Through our 4-1’s CSR Program, we give 1% of equity,

1% of product, 1% of payroll and 1% of time.

JAMes wOnG Communications Manager

James Wong was instrumental in

launching the 4-1’s CSR Program

and has remained active in corporate

responsibility initiatives. Says

Wong, “Being community oriented

is part of the iContact culture,

and participating in 4-1’s initiatives

has provided me with a doorway

into the non-profit world.

I now lecture and present on not

only email marketing topics,

but on a variety of topics to help

non-profits across North Carolina

and beyond.”

And being community oriented

is just one aspect of the

iContact culture. Says Wong,

“Being a little wacky is also an

important part of who we are and

is a nice complement to the

rigorous work environment.”

reCOGniTiOn

As part of building and reinforcing culture, we believe recognizing

and providing positive reinforcement for team members who display

our values is critical. The WOWME Awards program, launched at

the start of 2010, is a peer-to-peer recognition program that gives

employees the opportunity to commend colleagues for exemplifying

a WOWME value. The company backs up the commendations with

financial rewards. In 2010, there were approximately 1,500 peer-

to-peer commendations, or an average of 6.8 per employee.

Our highest form of recognition at iContact is our Outstanding

Performance Award (OPA). OPAs are for employees who truly

distinguish themselves, and each department may award one or

two per quarter.

reTenTiOn

In 2010, our employee base grew by 62, from 180 to 242, a 34%

increase. As our growth has accelerated, we have experienced

elevated levels of attrition.

Employee Turnover 2010 2009 2008

Voluntary7 9.01% 11.85% 11.40%

Involuntary8 12.80% 9.48% 7.60%

TOTAL 21.81% 21.33% 19.00%

For benchmarking purposes, the Employers Association Devel-

opment Group states that the average turnover rate nationally

is 13.9% for companies our size and 14.9% for companies in the

Southeast. According to Culpepper surveys, average turnover

in technology sectors is 20.4%. Average call center turnover can

approach 50%.

diVersiTy

iContact is an equal opportunity employer and is committed to fostering an inclusive, accessible environment where all employees and

customers feel valued, respected and supported.

iContact currently falls below most national averages for diversity in the IT software industry. The gap is the greatest at the

executive and senior management level, where women and in particular minority groups are under-represented.

For middle management and total employees, we fall just shy of national averages for women. iContact is well below national

averages for racial and ethnic minority groups; however, we exceed the national average for middle managers and total employees

for African Americans.

National National NationaliContact9 Average10 iContact Average iContact AverageExecutive and Senior Middle and Other

Demographics Management Management All EmployeesMale 75% 80.7% 76% 72.3% 71% 69.0%

Women 25% 19.3% 24% 27.7% 29% 31.0%

White or Caucasian American 100% 87.7% 92% 74.5% 78% 69.9%

Minority 0% 12.3% 8% 25.5% 19.3% 30.1%

Black or African American 0% 1.3% 8% 2.4% 11.5% 3.7%

Hispanic or Latino 0% 2.2% 0% 3.5% 3.3% 4.3%

Asian American 0% 8.4% 0% 18.8% 4.5% 20.9%

7 A voluntary exit occurs when the employee chooses to leave8 An involuntary exit occurs when employment is terminated9 Source: U.S. EEOC voluntary self-identification data 10 Source: U.S. EEOC-1 aggregate data report, NC, 2008

E M P L O Y E E S C o n t i n u e d

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eMPlOyee sATisFACTiOn

Our recent employee satisfaction survey illuminated what we con-

tinue to do well and gave us areas to focus on for improvement.

In order to gauge employee sentiments about their work experience

and the company culture, we asked employees to rate iContact.

Category 2010 Average11

My Job 3.77

My Team 4.15

Management 4.14

Culture 3.94

n 69% of employees expressed satisfaction with their jobs.

n 87% were proud of the work they do.

n 85% were satisfied with their team.

n 84% were satisfied with their manager.

n 82% would encourage others to work at iContact.

n 82% agreed that “iContact has a great corporate culture.”

One of the themes that came out of the survey in terms of

areas for improvement was in employee development. Just 56%

of employees stated they believe they have an opportunity for

growth within iContact. This feedback also stood out in narrative

comments, where we asked respondents for “Suggestions for

improving the work environment at iContact.”

n “I can’t see or haven’t been told a clear picture of my future

career path here… we always hire managers/directors from

outside instead of giving opportunities to internal people.”

n “I’d like to see defined career paths for individual contributors.”

Another theme that arose from the comments was the need for

better communication across departments:

n “I think cooperation and communication between departments

needs improvement. My department… is usually not consulted

when changes happen in the company and our product which

directly impact what we do.”

wHAT we’re wOrkinG On

iContact has gone through an incredible growth spurt which has

taken us from a small start-up to a medium-sized business in the

span of a few short years. This growth does not preclude a great

company culture, but it can certainly test it. Therefore, culture is an

important 2011 priority for CEO Ryan Allis and VP of HR Pam Rose.

In terms of training and development:

n For our 2011 performance reviews, we’ve added a section on

the review form so that managers and employees can collabo-

rate and select at least two courses they feel would enhance

the employee’s performance.

n All employees are eligible for up education reimbursement of

up to $3,000 in annual tuition and associated fees.

For employee recognition based on employee feedback, we

streamlined the WOWME Awards program for 2011, made it easier

to recognize colleagues for outstanding work and increased the

budget for WOWME Rewards.

Our employee retention goal for 2011 is to reduce both volun-

tary and involuntary turnover in order to bring our turnover rate

to 15% to bring ourselves in line with our regional average and

the average for all service industries nationally.

In terms of diversity, we believe that – in the short to medium

term – it is realistic to bring the share of women in middle manage-

ment and in the total employee base in line with national averages.

While we exceed national averages for African American middle

management and total employees, we would like to raise the

over-arching percentage of minorities represented in manage-

ment to 10% and the general employee population to 20%.

Finally, for employee satisfaction:

n We will perform quarterly snapshot surveys internally and will

contract out an independent, in-depth employee satisfaction

survey once per year. We aim to improve employee response

rates for employee satisfaction and corporate responsibility to

80% or better.

n We will work to increase our employee job satisfaction

score to 3.9.

eMPlOyees And COrPOrATe resPOnsiBiliTy

We also surveyed employees to get their opinions about our Corpo-

rate Responsibility initiatives.12 When asked “Is iContact a socially

and environmentally responsible company?” 99% of respondents

said yes. We also attempted to gauge how opinions about corpo-

rate responsibility influence employee perceptions of our company.

Due to our commitment to social and environmental responsibility:

n 30% “joined iContact.”

n 62% are “more likely to stay at iContact.”

n 66% are “more likely to refer a friend for employment at iContact.”

Employees who have been at iContact the shortest period

of time – less than three months – were the most likely to say

they joined iContact in part due to our corporate responsibility

program, 71%. However, many of the employees for whom our

emphasis on the triple-bottom line was not initially a factor

now feel strongly about our initiatives: 82% of our newest

employees are more likely to stay at iContact due to corporate

responsibility. The same is true for 67% of those with tenure

between three months and six months, and 94% of those between

six months and a year.

In other findings:

n 65% agreed that “iContact’s commitment to corporate responsi-

bility makes me feel more engaged at work” (11% disagreed).

n 55% “believe there is a connection between being socially

and environmentally responsible and a financially successful

business” (31% were neutral).

Below is a sample of responses to the question “What is my

most important recommendation or idea for iContact’s 4-1’s CSR

Program?”

n “Close the office one day a year to do a big company-wide

volunteer initiative.”

n “I would like to see more organization for volunteering

at my department level.”

n “I think it is fantastic in its current form. I have never worked

anywhere that allocates a share of profits for employees to

donate to a cause of their choice, and this program along with

the other 4-1’s really shows iContact ‘walks the walk’ and

doesn’t just ‘talk the talk’ as a lot of businesses do.”

n “I feel like sometimes priorities are a little mixed up at

iContact. We spend what I see as a lot of money on things

which are meant to give the impression that iContact is a

fun company to work for, when in reality I think it’s the

people that make this a great place to work. In my opinion

we don’t give our social responsibility efforts nearly as much

attention or exposure as we could.”

n “Up it to 2%.”

When asked for “my most important recommendation or

idea for iContact’s environmental responsibility,” survey respon-

dents replied:

n “Think way ahead.”

n “Scale it back… let’s be environmentally conscious but

let’s not go overboard with it.”

n “Make sure that the program is highlighted in the interview

process so we know future employees will adhere to and value

the program.”

n “Replace paper towels in the bathrooms with hand blowers.”

n “We need to move away from buying [carbon] credits to

be a B Corp and do more [reduction in usage].”

n “Buy our own building and go off the grid.”

n “Don’t go overboard and toot our horn too much.”

n “Power off monitors during break or lunch.”

n “Install motion-sensing light switches.”

E M P L O Y E E S C o n t i n u e d

11 Out of 5.012 45% response rate

recycling and wastebins line the hallways

of iContact’s offices.

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In 2010, iContact began to focus intentionally on Making a

Positive Wake on the environment. We recognize the risks inherent

in environmental degradation and climate change, particularly

for vulnerable populations in the developing world, and accept

responsibility for doing our part to minimize and mitigate our

footprint. Accordingly, we performed our first environmental

audit in May 2010 and have set goals and tracked progress on

a variety of environmental metrics since.

Starting with our core product, iContact has an opportunity

to have a positive impact on the environment with our email

marketing. According to Verus Carbon Neutral, a company

specializing in the measurement and reduction of energy use

and environmental impact, because of transportation and manu-

facturing impacts, direct mail generates about 18.5 grams of

CO2 per mailed unit. Multiply that by the billions of direct mail

pieces sent in the U.S. each year, and you have a significant

environmental footprint. In contrast, Verus estimated that an

email only generates an estimated .03 grams of CO2 – a 98%

lower footprint.

To get a sense of the shift away from direct mail, when we

surveyed our customers we discovered:

n 35% of respondents reduced their use of direct mail

for customer acquisition when they switched to iContact

(53% did not previously use direct mail for acquisition).

n 22% of respondents reduced their direct mail for retention

when they switched (51% did not previously use direct mail

for retention).

Of those who reduced their direct mail:

n 27% reduced by greater than 75%.

n 42% reduced by greater than 50%.

n 34% reduced by more than 1,000 pieces per year.

Among the respondents who reduced their direct mail, switching

to iContact saved between 87,000 and 153,00013 pieces of direct

mail. Scaled up for our entire customer base, iContact could be

saving between 29 million and 53 million pieces of paper per year.

Nevertheless, despite the benefit of our product as an alterna-

tive to direct mail, it is clear that our operations still have negative

environmental impacts that require attention and mitigation.

Our business does not require any direct input materials that

would be classified as Scope 1 emissions; rather, our carbon

footprint comes in the form of Scope 2 and Scope 3 emissions:

indirect electricity use, business air travel, employee commuting,

and indirect emissions from outsourced servers. We also consume

water and materials for our operations.

enerGy COnsuMPTiOn And enerGy sAVinGs

iContact does not consume any energy directly from primary

sources. However, we do consume intermediate energy in the

form of electricity.

Intermediate Energy: Headquarters iContact relocated in October

2010 from Durham, NC, to Morrisville, NC. One of the challenges

we faced in our previous office building and continue to face under

our current lease is that we are a sub-tenant and not fully in control

of our energy usage. Under both leases, iContact has paid for

energy consumption based on our percentage of building occu-

pancy, rather than being fully responsible for our own utilization.

This challenge notwithstanding, iContact has made strides to

be a more efficient consumer of energy. While the total amount

of electricity consumed by iContact at our headquarters in 2010

was 891,262 kWh, up 5.1% from 2009, our energy consumed per

employee and per square foot decreased in 2010 compared to 2009.

From January through October 2010, iContact occupied 59% of

the 62,382 square feet available in our Durham facility, or 36,582

E N V I R O N M E N T

2010 iContact Electricity Use

900

800

700

600

500

400

300

200

100

Employees

3

2

1

kWh and SqFt

ployee

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ployee

kWh by Employee

Sq Ft per Employee

ployees

er Sq Ft

Full-Time Employees

kWh per Sq Ft

13 We asked respondents to estimate their reduction in directmail, from 1-1,000 pieces per month and on up to 20,000+

square feet. Based on our percentage of building occupancy, we

consumed an average of 75,540 kWh of energy per month, which

translates to 374 kWh per employee and 2.06 kWh per square

foot. As compared to our energy consumption in the same building

in 2009, we decreased our per employee consumption by 11%

and our per square foot consumption by 2% over this period.

In November, we relocated to our present facility in Morrisville.

Because the building is more energy efficient, we saw just a 4%

year-on-year increase in electricity usage to an average of 72,932

kWh, compared with the same period in 2009, despite almost dou-

bling our square footage. Despite an increase in square feet per em-

ployee (up to 1.04kWh per square foot) and kWh per employee

(297.68 kWh per employee), our kWh per square foot decreased.

For all of 2010, our total kWh was 891,261, average kWh

per employee was 351 and kWh per square foot was 1.87. As

compared to our energy consumption in 2009, we increased total

consumption by 5%, decreased our per employee consumption

by 16% and decreased our per square foot usage by 7%.

Energy Intensity Another measure of iContact’s increasing energy

efficiency is our energy intensity – converting energy into rev-

enues – which has steadily decreased over much of the past two

years. As a technology firm, we can scale our revenues without

proportional increases in energy and other resource consumption.

Other Indirect Energy Consumption Looking into our supply

chain, iContact also consumes electricity via our offsite servers.

Our server host estimates that we used 14,232 kWh/month,14 or

170,787 kWh/year in 2010, all through Duke Energy.

Total Indirect Energy Consumption Between our headquarters

facility and our hosted servers, iContact consumed 1,062,000 kWh

in 2010. This represents an absolute increase of 4.3% over 2009,

but a 16.5% decrease per capita.

wATer

Nearly all of the water iContact uses in our operations is for

sanitary purposes and our kitchen. As iContact has grown in size

and moved to our new facility, we have seen a spike in water

consumption. In 2010, we used an average of 2,945 cubic feet

of water per month, based on our percentage of occupancy,

compared to 2,246 cubic feet per month in 2009.

This increase in consumption has been driven primarily by an

increase in employees, but also by an increase in consumption

per employee in our new facility from 13 Ft3/month per employee

in our Durham facility to 20 Ft3/month in our Morrisville facility.

This is somewhat surprising since we have electronic sensor faucets

in the restrooms. One explanation may be the dishwasher we

installed in order to cut down on the disposable plates and cutlery.

Water Source In our previous facility, water was provided by

the City of Durham. All water used by the city comes from two

2010 iContact Intermediate Energy Use as a Percentage of Revenue

3

2

1

%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Energy as % of Revenue

440

420

400

380

360

340

320

300

Electricity and Square Footage

Total kWh

Average kWh/employee

Total Sq Ft

100

80

60

40

20

(in thousands)

2009 2010

14 Based on one-day reading in June 2010, annualized

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sources, Lake Michie and Little River. Water is then pumped to

two treatment plants, the Brown Plant and the Williams Plant,

with the former supplying 75% of Durham’s water and the latter

25%. iContact drew water from both of these plants.

In our new facility, water is provided by the Town of Cary, NC.

Cary produces drinking water from Jordan Lake at a treatment

plant that it owns with the Town of Apex. The water plant is six

miles from Jordan Lake, which is part of the Cape Fear River

basin. The lake was created to supply water regionally, control

flooding, improve flow downstream, and provide recreation.

There is no indication that the water sources in Durham or Cary

were or are significantly affected by iContact’s use of water.

wHAT we’re wOrkinG On

Despite the decrease in energy use per capital and energy inten-

sity, there is much more we can do, as iContact currently exhibits

a number of weaknesses in energy management in our new facil-

ity. In terms of behavior: Office, conference room and desk lights

are routinely left on all day and night and computer monitors are

left on overnight. In terms of facilities: Uneven heating and cooling

in the building has led employees to regularly adjust their thermo-

stats and we lack valuable infrastructure such as lighting sensors.

In 2011, we anticipate changes to our lease and facility

that will help us reduce our energy consumption. Rather than

pay based on a percentage of our building, our landlord has

signaled a willingness to allow us to assume full responsibility

for our energy consumption. Thus, we plan on sub-metering

our two floors separately from the other companies in our

building, tracking our energy consumption closely and even

using a web-based platform to display our energy usage on

company monitors throughout the office. We also anticipate

investing in lighting sensors in our offices, conference rooms

and common spaces.

With these contractual and infrastructure changes, along with

campaigns to encourage behavioral changes, we aim to flatline

our total energy usage in 2011 at 2010 levels.

We will continue to monitor our water consumption to understand

the source of our elevated water usage and seek to reduce it.

MATeriAls And reCyClinG

While iContact’s business model does not require any direct input

materials, we believe it is important to track indirect materials

that contribute to our operational footprint.

Paper In 2010, iContact began tracking our consumption of

paper, which we use for internal operations and external direct

mailings. In Q1, we used approximately five cartons of paper per

month for our regular operations, or about 25,000 sheets of

E N V I R O N M E N T C o n t i n u e d

2010 iContact Water Use

900

800

700

600

500

400

300

200

100

0

3

2

1

Ft3

Full-Time Employees

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Water (indoors) Ft3

Ft3 by Employees(indoors)

Average Monthly Water Use

3500

3000

2500

2000

1500

1000

500

Ft3

250

200

150

100

50

Employees

2009

Ful Full-Time Employees

Tot Ft3

Total Average Ft3 per Month

2008 2010

8.5”x11” office paper. Even though we are growing as a company,

we managed to reduce our average cartons per month to 4.1 for

the remainder of the year, a reduction of 4,500 sheets of paper

per month over Q1. Our total usage was approximately 260,000

sheets of paper, or an average of 1,232 sheets per employee.

All of this paper was 100% FSC certified.

At the same time, our Marketing Department sent out about

20,000 direct mail pieces per quarter, or approximately 6,700

6”x11” postcards per month. These mailings were produced

externally using non-recycled, non-FSC cardstock. Thus, on a

volume basis, about 75% of the printed paper consumed by

iContact was FSC certified.

In Q3, we made a shift to a local and environmentally sustain-

able print shop that uses recycled content, post-consumer waste,

FSC certified paper and low-impact inks for all of our direct mail,

bringing our percentage of environmentally responsible printed

paper close to 100%.

Kitchen and Bathroom iContact already procured environmen-

tally friendly kitchen materials, and in Q2 of 2010, we switched to

environmentally friendly janitorial supplies, soaps and paper towels.

In Q3, we issued each employee a stainless steel spork as an initia-

tive to reduce waste from disposable flatware. In December 2010,

iContact purchased reusable plates to replace our current disposable

plates, which should reduce our waste and expenditures.

Customer Engagement In a special project, we partnered with

Verus Carbon Neutral to promote carbon neutral holiday e-cards

among our customer base. Instead of paying for physical cards,

we encouraged businesses to use their money to support sustain-

able forestry projects. For the limited physical cards we sent to

a select set of our own customers, we used 100% recycled paper

and fully offset the CO2 from materials and shipping.

wAsTe And reCyClinG

When we moved into our new facility, the options for recycling

were virtually nonexistent. Most waste was collected in bins under

individual desks, and as a result there was a lot of commingling

of recyclable materials and landfill waste. Therefore, we decided

to invest in a new dual-stream process with bins readily and

easily accessible to all employees throughout the office. Moreover,

we launched a campaign in late December for employees to

voluntarily give up the trash cans under their desks and move to

a fully centralized collection system. By the end of the year,

10% of all employees had turned in their trash cans. Additionally,

we invested in an industrial scale, and worked with our recycling

and waste collection vendors to begin regularly weighing our

recyclables and landfill waste.

OutsourcedServers

BusinessTravel

BuildingElectricity

EmployeeCommuting

TOTAL

2009 vs 2010 CO2 Emissions by Type (metric tons)

1200

1000

800

600

400

200

0

2010

2009

Per Capita CO2 Emissions (metric tons)

8

6

4

2

2009 2010

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wHAT we’re wOrkinG On

We have made good progress tracking our paper, kitchen and

bathroom materials, and in 2011 we plan to evaluate all of the

goods that we procure. By better understanding the nature of

everything we purchase, we can shift our consumption toward

100% environmentally sustainable materials for our operations.

In terms of waste and recycling, our goals for 2011 are to:

n Reduce paper consumption by 10% on a per person basis

n Collect 75% of all individual trash cans

n Set goals to increase our recycling rates and decrease

our landfill waste production (once we have a baseline

understanding of the composition of our waste stream)

n Host a Dumpster Dive to help employees better understand

what can be recycled and what cannot

CArBOn FOOTPrinT

Indirect Greenhouse Gas Emissions While iContact produces no

Scope 1, or direct emissions, we produce various types of indirect

Scope 2 and 3 emissions. The intermediate energy consumed at

our headquarters in the form of electricity results in Scope 2 emis-

sions, while the energy required to power outsourced servers, along

with our business travel and commuting, result in Scope 3 emissions.

To calculate our emissions, we use the methodology of the

Greenhouse Gas Protocol Initiative:

n Our Scope 2 CO2 emissions from purchased electricity were

471 metric tons in 2010, as compared to 448 in 2009.

n Scope 3 CO2 emissions stemming from our hosted servers

totaled approximately 90 metric tons of CO2 emissions

in both 2009 and 2010.15

Other Indirect GHG Emissions: Air Travel and Commuting While we updated our travel policy in 2010 and anticipated a

reduction in air travel for business purposes, iContact employees

actually increased air travel for business purposes by 8.0% to

575,666 miles. The total number of flights increased from 208

to 235, while flights per capita decreased from 1.2 to 1.1. Using

tools of the Greenhouse Gas Protocol Initiative, we estimate that

the total CO2 emissions resulting from iContact travel in 2010 was

87 metric tons, up from 79 in 2009.

From 2009 to 2010, iContact employees increased commuting

miles by 18.9% to 1,353,739 miles per year to work. This was

primarily the result of hiring a net of 62 new employees in 2010 –

a 34% increase – although the move to Morrisville reduced our

average one-way commute from 14.3 miles to 11.7 miles. Using

default emissions factors and making assumptions about the vehi-

cles that iContact employees drive,16 we estimate that iContact

employee commuting produced 530 metric tons of CO2 in 2010.

In an effort to minimize our impact from commuting, we initiated

a voluntary carpooling program. Since our first attempt to connect

potential carpoolers through an online provider was not well-

adopted, we established a low-tech solution: A physical map in our

break room allows employees to indicate where they live and seek

out colleagues who live nearby. We actively promote this initiative

and provide financial incentives for employees who participate.

OFFseTs

iContact offset 75% of our 2010 Scope 2 and 3 emissions – including

those stemming from our outsourced servers – by purchasing

carbon credits through Verus Carbon Neutral. Our credits supported

two projects:

1. The Valley Wood Carbon Sequestration project, a sustainable

forestry project based in Georgia, USA

2. Andhyodaya, an NGO that works with local farmers in Kerala,

India, to convert organic waste into cooking gas. In addition

to saving trees and preventing carbon monoxide poisoning,

this project supports girls’ education, as girls no longer have

to harvest wood and can return to school

Both of these offset projects are third-party verified and

registered with the Chicago Climate Exchange (CCX).

wHAT we’re wOrkinG On

As discussed in our Environmental Audit of 2009 Operations, we

are continually seeking ways to reduce our footprint. While our

per capita footprint decreased in 2010 and we offset 75% of our

remaining CO2 emissions through the purchase of carbon credits,

we would like to see greater improvements in 2011.

In fact, our 2011 goal is to become the first carbon neutral email

marketing company in the world. This will come by reducing our 2011

CO2 emissions to below 2010 levels and offsetting what remains. We

aim to achieve reductions primarily by meeting our goals for cutting

back the amount of purchased electricity we consume, but we will

also strive to reduce business travel and commuter miles by enforc-

ing existing policy and providing additional incentives for carpooling.

E N V I R O N M E N T C o n t i n u e d

15 We were unable to obtain an updated reading, but our hosted server capacity has remained relatively stable

16 We assume the average iContact employee drives a 2001 passenger vehicle

eCOnOMiC PerFOrMAnCe

iContact experienced 35% top line growth in 2010 with year-end

revenues of $38.6 million. This revenue growth was driven in

part by an increase in the number of customers we serve and by

attracting more medium-size businesses to iContact.

inVesTOrs

Venture funding has allowed us to invest in people, equipment

and facilities, which has led to top-line growth for the company.

As noted in the history section, iContact has received four rounds

of funding as follows:

May 2006 iContact raises $500,000 in funding from Idea

Fund Partners

June 2007 iContact raises $5.3 million from Updata Partners

October 2008 iContact raises $5 million in venture debt from

North Atlantic Capital

August 2010 iContact raises $40 million in venture capital

from JMI

Each partner was selected based on an understanding of

iContact’s business model and their willingness to engage with

iContact’s management team. We have been lucky to find not

only funding, but real partnerships committed to the success of

our company. Our investors have offered resources and advice

in order to take iContact to the next level. We are hopeful that

with our latest round of funding from JMI, we can substantially

grow the company and achieve our long-term vision.

suPPly CHAin

In 2010, iContact wrote and implemented our first supplier policy,

the goal of which is “to integrate our commitment to social and

environmental responsibility into our procurement practices by

applying a set of best practice guidelines to purchasing decisions.”

Under this policy, employees are encouraged to seek out and

assign priority to companies that are local and independent;

meet certain standards of social and environmental responsibility/

sustainability and exhibit ownership diversity. Each of these cate-

gories is clearly defined and communicated to all departments.

E C O N O M Y

Co-founders aaron Houghton and ryan allis celebrate iContact’s series b VentureCapital raise with the senior leadership, Finance and administration teams.

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In order to evaluate our performance, we audit our list of

significant suppliers17 at least once per year. A committee of

individuals responsible for purchasing decisions in each of our

departments meets to measure progress against our baseline

metrics, look for possible vendor substitutions, and find ways to

collaborate across departments to rationalize our supplier list

by consolidating vendor relationships.

In 2010, we had 73 significant suppliers, up from 49 in 2009.

22% were local18 and independent,19 up from 20% in 2009. 18%

were located in low-income census tracts, as compared to 22%

in 2009. While we do not have exact figures on women- and

minority-owned significant suppliers, we know anecdotally of a

number of such enterprises, both significant suppliers and

smaller accounts.

For the first time in 2010, we contacted all of our suppliers to

communicate our social and environmental mission and to inquire

about the practices of companies in our supply chain.

wHAT we’re wOrkinG On

In 2011, we are working to fill the gaps in our data of our vendors,

large and small. Our goals for 2011 are to increase our local and

independent significant suppliers to 30% and get an official count

of our women- and minority-owned vendors.

E C O N O M Y C o n t i n u e d

PriOriTies GOAls TArGeTs And ACTiViTies

Customers

Employees

Community

Environment

Economy

Measurementand Community Relations

Provide quality products andmemorable customer support

Build a fair, diverse andinclusive workplace

Attract and retain great people

Create opportunities for contin-ued development

Engage all employees in CR

Build up the communities weare located in and serve

Continuously improve our environmental footprint

Continue to grow our business

Use suppliers that demonstratesocially and environmentallyresponsible practices

Be known as a leader on community and environmentalissues among our peers

Increase Customer Satisfaction(CSAT) Scores

Increase number of customers acquired and served

Increase diversity

Increase employee satisfaction

Reduce turnover

Expand opportunities for employee development

Increase employee engagement in CR

Meet our 4-1’s goals

Community engagement around the environment

Metric tons of carbon emissions(CO2e)

Reduction of energy use relative tobaseline year (%)

Average number of sheets of paper used per employee per year

Top- and bottom-line growth

Growth in employee headcount

Increase our percentage of localand independent suppliers

Increase our percentage of women- and minority-owned and certified sustainable suppliers

Improve current certification status and seek new certifications

Be recognized as a socially and environmentally responsible company

90% CSAT

70% Customer WOW

Increase employee representation for gender and ethnic diversity

Raise job satisfaction scores to 3.9

Reduce turnover to less than 15%

Launch an education reimbursement program

Include social and environmental metrics as bonus criteria for 100% of employees and managers

Identify a point person in each departmentfor CR

Develop a recognition program specifically focused on CR

Achieve 95% employee participation in annual giving

Perform 3,600 hours of total volunteering

90% of employees will do at least 4 hoursof PTO volunteering

Give away an additional 200 4-1’s email marketing accounts (430 total)

Establish the iContact Foundation

Support community-based environmentalprojects

Keep 2011 C02 emissions at 2010 level

Go carbon neutral through reduction and offsets

Reduce sheets per employee by 10% over 2010 to 1,109 sheets

Grow revenues and our team

30% of significant suppliers local and independent

Get official count of our women- and minority-owned and certified sustainable suppliers

Score an 89 on the B Impact Rating

Receive the Green America Seal of Approval

Achieve Green Plus certification

Increase the percentage of customerswho are aware of our 4-1’s andenvironmental initiatives to 25%

2 0 1 1 P R I O R I T I E S

2010 iContact Business Performance(in millions)

4

3

2

1

70,000

65,000

60,000

55,000

Revenue

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Customers

iContact Venture Funding(in millions)

50

40

30

20

10

XXXX XXXXXXXX XXXX

50K 5m5 3m 40m

Idea Fund Partners

Updata Partners

North Atlantic Capital

JMI

17 Those suppliers that collectively make up 80% of our purchasing

18 Within 100 miles

19 Independent suppliers are those that are privately held and are not a subsidiary or division of another company

Page 18: 2010 CORPORATE RESPONSIBILITY REPORT...2010, and provides performance trends where possible. The scope of this report encom passes all of iContact’s wholly owned operations and activities

3332

Our composite B Rating as of Dec 31, 2010, was 85. Certified: June 2010

B RATING SUMMARY Points Earned % Points Value

Accountability ★★★★★ 12.1 81%

Governance 6.1 77%

Transparency 6.0 86%

Employees ★★★★ 39.4 66%

Compensation & Benefits 24.6 68%

Employee Ownership 6.8 56%

Work Environment 8.0 67%

Consumers 1.5 4%

Beneficial Products or Services 0.9 2%

Beneficial Business Model 0.6

Community ★★ 22.6 50%

Suppliers 3.8 75%

Local 7.9 57%

Diversity 1.2 9%

Charity / Service 9.7 75%

Environment ★★★ 12.3 62%

Facilities 9.3 66%

Energy Usage 3.0 50%

Greater than 60% indicates an area of excellence.

G L O B A L R E P O R T I N G I N I T I A T I V E ( G R I ) I N D E X

Disclosure Number G3 Indicator Page

eCOnOMiC PerFOrMAnCe indiCATOrs

Aspect: Market Presence

EC1 Direct economic value generated and distributed, including revenues, operating costs, 16-17, 30

employee compensation, donations and other community investments, retained earnings,

and payments to capital providers and governments

EC6 Policy, practices, and proportion of spending on locally based suppliers 29-30

at significant locations of operation

enVirOnMenTAl PerFOrMAnCe indiCATOrs

Aspect: Materials

EN1 Materials used by weight or volume 26-27

EN2 Percentage of materials used that are recycled input materials 27

Aspect: Energy

EN4 Indirect energy consumption by primary source 24-25

EN5 Energy saved due to conservation and efficiency improvements 24-25

EN7 Initiatives to reduce indirect energy consumption and reductions achieved 24-25

Aspect: Water

EN8 Total water withdrawal by source 25-26

Aspect: Emissions, Effluents, and Waste

EN16 Total direct and indirect greenhouse gas emissions by weight 28

EN17 Other relevant indirect greenhouse gas emissions by weight 28

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 28

Aspect: Products and Services

EN26 Initiatives to mitigate environmental impacts of products and services, 28

and extent of impact mitigation

Aspect: Transport

EN29 Significant environmental impacts of transporting products and other goods and materials 28used for the organization’s operations and transporting members of the workforce

sOCiAl PerFOrMAnCe indiCATOrs

Aspect: Employment

LA1 Total workforce by employment type, employment contract, and region, broken down by gender 21

LA2 Total number and rate of new employee hires and employee turnover

by age group, gender and region 21

LA3 Benefits provided to full-time employees that are not provided to temporary

or part-time employees, by significant locations of operation 19

Aspect: Training and Education

LA11 Programs for skills management and lifelong learning that support the continued 19

employability of employees and assist them in managing career endings

Aspect: Diversity and Equal Opportunity

LA13 Composition of governance bodies and breakdown of employees per employee category

according to gender, age group, minority group membership and other indicators of diversity 21