Working Toward a Healthier YOU: Reconstructing Fitness and Eating Habits for a Balanced Lifestyle

Victoria's Secret, 2015Corporate Social Responsibility Report

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Stakeholders,

Victoria’s Secret has been known as a leading retailer of intimate apparel and other collections for a long time, but now the influence of this international corporation is being used for more than just sales. There came a realization that crises are happening in the public and that with the ability to help combat them, comes a responsibility to do our part. Over the years I have watched the company transition into new markets of retail, but recently I had the pleasure of participating as it began its exploration into a virtually unfamiliar sector.

Welcome to the 2015 Victoria’s Secret Corporate Social Responsibility Report. Last year we began our new journey and delved into the topic of health promotion. Health is something that I have always shown an interest in, from proper nutritionto getting enough exercise. Today’s society, especially in America, is struggling with health and battling an obesity epidemic. I remember a time when I wanted nothing more than to live a healthy lifestyle but did not know where to start. I hope that by implementing this CSR program, Victoria’s Secret will help provide tools for individuals to reevaluate their overall wellness and pursue a healthier routine.

In this report you can expect to find a variety of ways in which the company is instilling healthier practices into everyday life. This includes working with our employees to improve their overall health. It is not a mandatory program, but it is the hope of the company that they will choose to take advantage of the opportunities that are being provided. Victoria’s Secret is also reaching out to the surrounding communities and offering better nutritional health, physical health, and health education forlocal students. We expect that working with the younger generation and stressing the importance of health, they will carry that into adulthood and reverse the current epidemic.

The company got its start in the United States, so that is where we chose to begin our new program. More specifically, we integrated the new ideas into the workday of the corporate headquarters located in Manhattan. The community outreach portion included the other four boroughs of New York City. This was only a trial, to see how the program would work out. We couldn’t be more excited about the success of the program and are eager to expand. We plan to reach past the corporate office, and open certain employee health perks up to those working in the retail stores. We also intend to open up the grant program to schools across the United States and sponsor up to 10 health revitalization projects. The future looks promising and we are eager to help shape a healthier tomorrow and a healthier you.

Sincerely,

Briana CunninghamChief Executive Officer 2

Our VisionConsumers often question the health of models, and it is no different for the Angels used by Victoria’s Secret. Our company wants to assure the public that health and fitness are viewed as essential and that a healthy lifestyle is promoted to everyone within and without the company. This includes our customers, our employees, our models, and anyone else who is willing to listen and learn.

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----------------------------------Our StrategyThe company follows a two part program to ensure that the importance of health and fitness is thoroughly disseminated among the previously listed audiences. Part one consists of the internal aspect. This includes:

-healthy food options in the workplace-access to professional personal trainers and nutritionists-adequate time and resources to exercise on a regular basis-a company webpage containing advice on how to live a balanced lifestyle-monthly vlogs by the Angels’ nutritionists, trainers, and the Angels themselves

Part 2 consists of the external aspect. In that, we have reached out and provided grants to eligible schools, which were used in many different ways, all of which helped to improve the health of students. These included:

-revamping school lunch programs-replacing playground equipment-repairing gymnasiums-aiding in health education

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Profile of the ProgramPart 1: The best way to lead is by example. For this reason, the company took an internal approach to the program. If the public is expected to take control of their health, it should begin with our employees. To enable this, the company provided them with the necessary tools to begin. As a trial, we only implemented this program in our New York corporate office.

A page was added to the company website which included information, from credible sources, on how to live a healthy, balanced lifestyle. On that, a monthly vlog was posted which covered a specific topic of health. These included “The Benefits of Cardio”, “Cutting the Crap: Eating Right”, “Why You Need To Sleep”, and “Water-The All New Craze”. These were presented by the Angels’ physical trainers, their nutritionists, certified heath professionals, and the Angels themselves. A comment box was included so that employees had the opportunity to ask their own health questions and suggest future topics.

The employees were given access to their own professional nutritionists and personal trainers to help devise an individualized program for themselves. To complement this, healthier food options were added to the office break room. Instead of chips and chocolate bars in a vending machine, fresh fruits, veggies, nuts, and yogurts were offered. The employees were also given an extra half hour for lunch, which provided them with enough time to workout in the company fitness room. The room was small and included cardio equipment, a weight rack with dumbbells, and a few basic machines.

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Part 2: As an effort to change health consciousness not only within the workplace, but throughout the community, Victoria’s Secret reached out to help. Obesity has become an epidemic in the United States and leads to an increased risk of heart disease, stroke, type 2 diabetes, high blood pressure, and many more.* We decided that the best way to approach this was by preventing it. The company chose to work with children, specifically students, by providing necessary resources and educating them on the importance of living a healthy, balanced, and active lifestyle.

We sought out schools, grades K-12, that wanted to offer healthier options to their students but that didn’t have the necessary funds. They had the option to fill out an application which provided Victoria’s Secret with a better idea of what they wanted for their students, the financial situation of the school, and where they would want to apply a grant if they were to receive one. Since it was only the start of the program, we chose to accept four schools total. Each school needed assistance in one of the following areas: revamping of the school lunch program, purchasing/installing new playground equipment, improving the quality of health education, or renovating the physical education facility.

*National Heart, Lung, and Blood Institute

Students enjoying the new playground equipment at Penn Beach Elementary School

The opportunity was presented to all schools within the five boroughs of New York City. After all of the applications were received, a specialized team reviewed them and used a specific list of criteria that they created to choose the four schools that were most in need and most deserving. Once the recipients were selected, the school administrators were contacted and our staff helped them to devise a comprehensive plan. We worked closely with each school through the entire project to make sure that the money was going toward the proper improvements and that the students would benefit.

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The internal portion of the project was received very well by employees. - 70% used the fitness room at least three times a week- after-lunch productivity was much higher- vending machine sales dropped by more than half- the work done by the nutritionists and trainers was praised-the number of sick days taken was reportedly lower- vlog views increased each month

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Employee BehaviorIn Corporate Office

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One employee explained:

“I had struggled with trying to balance work and a healthy lifestyle, but this program integrated them and made me finally feel like I was able to take control of my health. The nutritionist helped pick out the lapses in my diet and gave me alternatives. I have so much more energy and actually want to work out!”

Performance IndicatorsAfter completing one year of the new CSR program we have found that is was a success.

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The four local schools were extremely grateful for the external portion of the project.

Suddenly, according to the teachers and faculty of the schools, the students were reaching for a salad instead of pizza and french fries. At recess, they didn’t sit around on electronic devices, they swung from the monkey bars and slid down the fireman’s pole. After school there were basketball and volleyball programs in the new gymnasiums that pulled the children away from their video games. And, what Victoria’s Secret considers the most important outcome: the students were not only being healthier, but because of the innovative health education program, the students knew how to be health conscious and why it is so important. That kind of knowledge is invaluable.

Chart, from Harvard Medical School, used in class to explain a balanced nutrition to students. They are encouraged to practice this in the lunch room.

Victoria’s Secret Brand Benefit

-Customers have a better perception of what the Victoria’s Secret brand is promoting. Some believe it used to suggest that “skinny is beautiful”, but now they associate the brand with the message “healthy is beautiful”. Sales of products increased almost immediately, specifically

in the athletic apparel line. Some customers have tweeted and showed an interest in something similar to the vlogs that are provided internally. They want to know more about how they can be healthy. After seeing the fascination that kids have with health, adults are realizing that they need to set a better example and are asking us to show them how.

“It makes me so happy to see the students running around and showing an interest in their own health. It’s something that I honestly never expected.” –teacher at Penn Beach Elementary School

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