2017 Hallmark Social Responsibility Report

S O C I A L

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

R E P O R T

A CARING TRADITION

DON HALL CEO, Hallmark

At Hallmark, caring for others is at the core of what we do.

Whether through our greeting cards and gifts, our family friendly television programming or our creative products for children, we work to remind people “when you care enough, you can change the world.”

It’s a message that is particularly appropriate for the times in which we live.

And we are proud to live by this message and to share it with others.

Within the pages of this Social Responsibility Report are examples of how Hallmark and our employees have worked to care for others in the areas of Community, Sustainability, and Diversity and Inclusion. While this report includes quantifiable results of our progress during 2017, perhaps more meaningful is the qualitative impact explained here by some of the people involved in and transformed by the work.

Often such efforts start with just a few passionate people who are willing to take action. Then, before you know it, the seed they have planted grows and meaningful change is created.

We are, after all, driven by the desire to foster human connection in the products and experiences we create, the relationships we build and the support we provide to our communities.

While we are proud of the work described in this report, we understand that there is always more we can do.

And it is with this fervent desire to do more, be more and make a greater difference in people’s lives that we move optimistically forward.

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ONE CARING ACT, ONE GOOD DEED, ONE PLANTED SEED: ALL THESE MAY START WITH SOMETHING SMALL, BUT THEY CAN BE THE START OF SOMETHING BIG.

IN HALLMARK’S 2017 SOCIAL RESPONSIBILITY REPORT, THE COMPANY SHARES HOW ITS EFFORTS IN COMMUNITY, SUSTAINABILITY AND DIVERSITY & INCLUSION HAVE GROWN TO MAKE A POSITIVE DIFFERENCE IN THE LIVES OF ITS PEOPLE AND THEIR COMMUNITIES.

table of contents community

sustainability

caring at the heart of its culture

facts & figures

facts & figures

facts & figures

leading by example

maximizing efficiency

workforce

our portfolio of businesses

meeting family needs

reducing waste

workplace

our presence around the globe

reaching our youth

partnering with suppliers

marketplace

a dynamic workplace

supporting education

sustainability by example

community

marketing for a cause

clothing children in need

embracing a diverse and inclusive culture

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14

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volunteering in our communities

64

workplace

diversity + inclusion

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workplace HALLMARK’S CULTURE AND ITS BRANDS ARE SYNONYMOUS WITH CARING: EMPLOYEES ARE ACTIVE SERVANTS IN THEIR COMMUNITIES, REGULARLY LENDING THEIR TIME AND TALENTS TO HUNDREDS OF ORGANIZATIONS; THE COMPANY’S BRANDS DEVELOP INNOVATIVE PRODUCTS AND PROGRAMMING TO IMPROVE AND ENRICH THE LIVES OF OTHERS; AND COMPANY LEADERS EMBRACE DIVERSITY, CREATIVITY AND NEW WAYS OF WORKING TO ENABLE ITS BUSINESSES TO GROW AND THRIVE.

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WORKPLACE

Caring at the Heart of its Culture

H

allmark earned recognition in 2017 by Forbes and Statista as one of America’s Best Employers and by Forbes and the Reputation Institute as one of the top five Most Reputable Companies in the United States.

Company leaders are proud of the workforce and the dynamic work environments across its businesses where nurturing creativity, inclusiveness, sustainability, wellness and fun celebrations are a part of the Hallmark experience.

For example, on any given day, you may encounter: • Hands-on workshops to inspire creative thinking or learn new skills.

• Picnics to thank employees for a job well-done.

• Exercise classes to promote better health at a new headquarters employee fitness center.

• Employee rallies to celebrate new customers.

• Exhibition openings to showcase product ideas and innovations.

• Outdoor festivals to celebrate and encourage charitable support.

• Educational classes to support leadership development.

• Employee resource group displays to enable greater understanding about societal events and diverse cultures.

For Hallmark, its talented workforce, vibrant workplace and caring culture help enable the company’s aspirational vision: to create a more emotionally connected world by making a genuine difference in every life, every day.

2017 Award-Winning Connections

Top 5 America’s Most Reputable Companies: Forbes, Reputation Institute Top 5 Retailers with the Best Customer Experience: Forrester 2017 Customer Experience Index America’s Best Employers: Forbes, Statista UK Superbrand: Superbrands.uk Greeting Card Brand of the Year: Harris Poll

Hallmark Hong Kong

Henries (UK) Card Design Awards: “Best Traditional Words & Sentiments Range”

Caring Company Award: The Hong Kong Council of Social Service

Louies (U.S.) Selected Card Design Awards: “Judges Award of Excellence” (Hallmark Signature), “Card of the Year $4 and below” (Sunrise), and “Superbly Stated” (Studio Ink) Platinum Level Designation (wellness programs): Kansas City Chamber of Commerce Healthy KC program Silver Certification — Missouri Breastfeeding Friendly Workplace Award: Kansas City, Missouri, Health Department and Mother and Child Breastfeeding Coalition 8

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Our Portfolio of Businesses Hallmark Greetings

Hallmark Home & Gifts

Other greetings-related companies include DaySpring Cards in Arkansas, Hallmark Business Connections in Minnesota and Hallmark Labs in California.

Home & Gifts offerings provide a wide array of home décor and gift products throughout the United States from trendy to whimsical to classic designs. Another gifts-related business is Hallmark Baby, which offers top-quality baby and children’s clothing sold online.

Drama are the three 24-hour cable networks operated by Crown Media and distributed in the United States.

Hallmark Publishing is the e-books division of the Hallmark networks and Hallmark Movies Now is Crown Media’s subscription-based streaming service with an audience of more than 365,000.

Crayola

Crown Center

The global greetings business sells greeting cards, gift wrap and related products in more than 30 languages with distribution in more than 100 countries and 100,000 rooftops worldwide and online.

Hallmark Retail

Retail operations include more than 2,000 Hallmark Gold Crown stores in the United States, Canada, England, Ireland and Scotland.

Crayola offers a wide range of art materials and toys designed to spark the creativity of children around the globe. It also operates four Crayola Experience attractions in Pennsylvania, Florida, Minnesota and Texas.

Crown Media Family Networks

Hallmark Channel, Hallmark Movies & Mysteries Channel and Hallmark

Crown Center is the real estate development business of Hallmark.

It manages the 85-acre hotel, office, entertainment and residential complex surrounding Hallmark’s world headquarters in Kansas City, Missouri, attracting 5 million visitors annually. Another business located within Crown Center is Halls Kansas City, a specialty department store. n

Activity Toy of the Year (Air Marker Sprayer): International Toy Fair Visitors’ Choice Award — Favorite Hotel, 300+ Rooms (The Westin Kansas City at Crown Center): Visit Kansas City

Best Toy Award (Color Wonder Magic Light Brush): Good Housekeeping Magazine Best Toys of 2017 (Magic Scene Creator): Parents Magazine Five-time 2017 Gold Medal Winners of Toys, Games & Puzzles: Mom’s Choice Awards Five-time 2017 Winners: National Parenting Product Awards

Cablefax Program Awards for “When Calls the Heart” (Best Family Friendly Show), “Home & Family” (Best Lifestyle/Talk Show) MovieGuide Faith and Freedom Award for “Operation Christmas” 9

WORKPLACE

our presence around the globe Minnesota

Canada

Illinois Pennsylvania

Kansas

New York

Missouri

California

Arkansas Bermuda Texas

Florida Bahamas Turks + Caicos

Mexico

Puerto Rico Haiti Jamaica U.S./British VI Antigua Guadeloupe Honduras St. Lucia Dominica Barbados Aruba Nicaragua Grenada Trinidad

Grand Cayman Guatemala El Salvador

Costa Rica Panama

Locations Key

Venezeula Guyana Colombia

Hallmark Offices and Operating Facilities

St. Kitts

Suriname

Ecuador

Hallmark International Product Distribution Locations Crayola Offices, Crayola Experience and Operating Facilities Crayola International Product Distribution Locations

Peru

Brazil

Crown Media Family Networks Crown Center Chile Argentina

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Hallmark creates products in more than 30 languages that are distributed in more than 100 countries.

Its portfolio of businesses includes Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts, Crown Media Family Networks, Crayola and Crown Center Redevelopment. Worldwide, Hallmark employed more than 30,000 people and generated approximately $4 billion in consolidated revenues in 2017. n

Sweden Norway

Finland

Estonia Latvia Lithuania Denmark UK Netherlands Ireland Poland Belgium Germany Slovakia Ukraine Czech Rep Switzerland France Hungary Slovenia Romania Italy Bulgaria Spain Turkey Greece Portugal Malta Cyprus Lebanon Israel Jordan

Russia

South Korea Kuwait Bahrain

Shenzhen

Qatar

Egypt Saudi Arabia

U.A.E.

India

Taiwan

Bangladesh

Oman

Hong Kong Thailand

Philippines Vietnam

Ghana

Japan

China

Guam

Nigeria Sri Lanka Uganda

Malaysia

Singapore Indonesia American Samoa

Tanzania

Zambia Zimbabwe Australia South Africa

New Zealand

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A DY N A M I C WO R K P L AC E

slurpee break

To celebrate Hallmark’s new partnership with 7-Eleven®, employees enjoyed a mid-afternoon Slurpee break with their coworkers in April.

it's a wrap

In November, Hallmark partnered with the Salvation Army to help wrap more than 2,300 toys and gifts for children with incarcerated parents for its Prison Toy Lift Program.

It was the eighth year for the program which recorded 600 volunteer hours to benefit children.

canstruction

“Building” on its theme of animals as part of the company’s 2017 food drive, Hallmark employees constructed can sculptures that were displayed in the main common areas of its headquarters.

It was in the spirit of friendly competition and to raise awareness about Hallmark’s fight against hunger in the communities in which it operates.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

back snacks for kids

All hands and smiles were on deck as hundreds of Hallmark employee volunteers helped to pack backpacks with food for children in need to assist the Harvesters food bank.

take your kids to work day

On April 27, children of Hallmark employees ages 9 to 15 were able to see a variety of jobs, people, ideas and processes to expand their awareness of possible career opportunities in the creative field. crayola picnic

Crayola hosted more than 1,000 employees at its annual summer picnic, but more importantly, they donated the unused cases and trays of food to Safe Harbor of Easton, Pennsylvania, a homeless shelter.

A DY N A M I C WO R K P L AC E

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community HALLMARK’S DIVERSE BUSINESSES ALLOW CONSUMERS TO EXPERIENCE ITS BRANDS IN A MYRIAD OF WAYS, YET THEY ALL SHARE ONE THING IN COMMON: EMPLOYEES WHO EMBRACE A SPIRIT OF GIVING BACK TO THE COMMUNITIES WHERE THEY LIVE, WORK AND PLAY.

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COMMUNITY

facts & figures I

n 2017, Hallmark and its businesses contributed nearly $11 million in product and financial contributions to nonprofit organizations in the United States, Canada, Mexico, Asia-Pacific and Europe. At the same time, employees at all levels of the organization volunteered their time and talents to provide more than 53,000 hours of volunteer service — nearly two hours for every one of its worldwide employees.

This past year showed Hallmark and its employees leading by example as the No. 1 contributor to the annual United

Way campaign for the Kansas City region. In addition, corporate and employee gifts were contributed in support of several disaster relief efforts, and Hallmark’s “Care Enough” campaign spotlighted acts of kindness to inspire and encourage others.

To meet the needs of families, employees in Australia packed food to feed the hungry; coworkers at Crayola transformed a storage room at a homeless shelter to serve as a multipurpose room for residents and community members; and in Canada, colleagues

monetary and product donations

$5.4mm

in product donations¹,⁶

$10.7 MILLION

19% $3.0 mm Millennials 1981-1999

in monetary donations to the United Way²

$1.3mm

in monetary donations to other nonprofits¹

$916k

in monetary donations to the arts³

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

1,100+ nonprofits benefited¹

prepared and paid for dinner for families staying at a Ronald McDonald House.

To better serve the needs of children and support educational opportunities, Texas employees partnered with local organizations to ensure area students had the necessary clothing and supplies for school; UK team members introduced students to a range of creative career disciplines; and Crayola partnered with the U.S. Department of Education to showcase children’s creativity through an art exhibit.

volunteerism

53 =

THOUSAND volunteer hours⁴

240

THOUSAND meals donated through Harvesters⁵

Finally, to extend the company’s impact beyond traditional philanthropy to cause-related marketing, Hallmark Greetings partnered with CVS to raise funds to combat cancer and Crown Media Family Networks aired programming to encourage pet adoption.

Making a genuine difference in every life, every day is not just Hallmark’s vision, but a way of life. n

$1.2+ MILLION in value⁴

$1.0 MILLION

portion of UNICEF greeting card sales contributed back to UNICEF¹

Company Wide 2 Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts, Hallmark Business Connections, Hallmark facilities and Crayola.

Greetings, Hallmark Retail, Hallmark Home & Gifts and Crayola. 4 Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts, Liberty, Missouri, facility and Crayola. 5 Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts and Liberty, Missouri, facility. 6 Retail Value 1

3 Hallmark

FA C T S & F I G U R E S

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COMMUNITY

leading by example Utilizing Work Talents to Aid Nonprofits

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ear over year, many Hallmark employees donate their time and talent to nonprofits in the Kansas City area. Elizabeth Bordenave, Lean strategy and implementation manager, Hallmark, is one of them.

She has been volunteering to help a number of nonprofits in the company’s hometown of Kansas City, Missouri. Using her skillset within Lean methodology, an organizational practice of eliminating waste and maximizing efficiency, she helps teams operate more effectively by making continuous improvements toward their goals.

In 2017, Bordenave worked with two specific groups: • Jewish Family Services, which connects families in need with services and resources.

• Samuel Rodgers Health, which provides high-quality, affordable healthcare for more than 90 percent of the refugees that come to Kansas City.

“Hallmark makes a tremendous investment in organizations focused on the health and spirit of our community and that is what resonated with me to get involved,” Bordenave said.

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“Helping these groups develop their organizations and make improvements on their own is the gift that keeps on giving.”

E L I Z A B E T H B O R D E N AV E L E A N S T R AT E G Y A N D I M P L E M E N TAT I O N M A N A G E R , H A L L M A R K

Bordenave first worked with each nonprofit to establish a vision for desired improvement based on the current state of their organization. Then, she taught them how to leverage Lean tools and principles to achieve these outcomes more quickly than in the past.

“Elizabeth did an amazing job putting us on the road to Lean Process improvement both in our food pantry and our whole agency,” said Don Goldman, executive director & CEO, Jewish Family Services. “She taught us how small changes, if carefully considered, could have a huge impact on our performance and efficiency. We’ve already seen that come to fruition in our food pantry in the areas of parking, inventory management and space design. With her help, we’ve started

on the path to quadruple the number of families in need we’ll serve in our food pantry.”

“At Samuel Rodgers Health Center, Elizabeth assisted our contact center to improve the patient scheduling process and put appointment protocols in place. This allowed them to learn what was needed faster and provide better end results,” said Bob Theis, acting CEO, Samuel Rodgers Health Clinic. “Overall, it has allowed us to provide a better patient experience.”

“It’s not a one-time gift,” Bordenave explained. “Helping these groups develop their organizations and make improvements on their own is the gift that keeps on giving. It’s so rewarding, and an honor, to enable this gift on behalf of Hallmark.”

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Other nonprofit organizations benefiting from Bordenave’s Lean hands-on consulting include: Harvesters

distributing food through a network of pantries • harvesters.org

Giving the Basics

supplying necessities not covered by government assistance • givingthebasics.org

Bordenave

ReStart

striving to eliminate homelessness • restartinc.org

Down Syndrome Guild

offering programs and services for individuals with Down Syndrome and their families • kcdsg.org

Wildwood Outdoor Education Center

providing learning, youth development and outdoor adventure for inner city youth • wildwoodctr.org

Operation Breakthrough

advancing independent plans for special care and education of children in poverty • operationbreakthrough.org

Happy Bottoms

distributing diapers • happybottoms.org n

LEADING BY EXAMPLE

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COMMUNITY

Providing United Way Leadership

F

or decades, Hallmark and its businesses have supported the United Way to improve the health, education and financial stability of the communities where its employees work and live. In 2017, Hallmark was the No. 1 giver to the United Way of Greater Kansas City, with a donation of nearly $2.3 million.

Another $773,500 was pledged from other Hallmark locations for their respective United Way chapters.

Dave Hall, president, Hallmark, served as co-chairman of the 2017 campaign, further underlining the importance and commitment of the company’s long-standing efforts to give back in the communities in which it operates.

“Over the years, Dave’s leadership on behalf of the United Way of Greater Kansas City has provided immeasurable value,” said Brent Stewart, CEO, United Way of Greater Kansas City. “His commitment to the organization and the people it serves has significantly improved our ability to make a meaningful and lasting impact on our community. His leadership example has served as a catalyst for his Hallmark colleagues and thousands more across our community who’ve volunteered, donated and advocated on United Way’s behalf.”

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In fact, pledged Hallmark employee donations to the United Way in 2017 increased from $1.27 million in 2016 to $1.36 million in 2017. In addition, employee participation in the Kansas City area increased more than 5 percent.

At Crayola, senior leadership is also heavily involved and supportive, as CEO Smith Holland served on

the United Way of the Greater Lehigh Valley campaign cabinet in 2017. He joined Pete Ruggiero, executive vice president of global operations and information technology, who has served as chairman of the board for the chapter since July 2016, and Bonnie Hall, vice president of global quality, who chairs the United Way’s investment committee.

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Approximately 40 Crayola employees served as champions for their workplace campaign, leading peer-to-peer advocacy and solicitation, volunteer fundraising initiatives and communication throughout the company about the campaign.

“There is such a strong spirit of giving throughout our portfolio of businesses,” said Amy Winterscheidt, national volunteer manager, Hallmark Corporate Foundation. “Our employees are made aware of needs in the community, and they always step up to give generously.”

Company support is year-round, from offering one of the most generous matching corporate donations to serving on its board of directors, volunteering for United Way causes and even designing and developing marketing materials for the citywide campaign. n

From left, Hallmark President Dave Hall, actress Holly Robinson Peete and United Way of Greater Kansas City CEO Brent Stewart at the United Way chapter's kickoff event in September 2017. Peete is an actress, philanthropist and motivational speaker who also appears on Hallmark Channel.

No. 1 Hallmark was the top giver to the United Way of Greater Kansas City in 2017

$2.3mm Total donation to United Way of Greater Kansas City in 2017 plus an additional $773,500 pledged at other Hallmark locations to their respective United Way chapters

+5% Increase in employee participation in the Kansas City area

“ There is such a strong spirit of giving throughout our portfolio of businesses. Our employees are made aware of needs in the community, and they always step up to give generously.”

A M Y W I N T E R S C H E I DT N AT I O N A L V O L U N T E E R M A N A G E R , H A L L M A R K C O R P O R AT E F O U N D AT I O N

LEADING BY EXAMPLE

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COMMUNITY

Girl scouts of northeast Kansas and northwest Missouri take part in an outreach camp partially funded by Hallmark.

At camp, scouts build leadership skills, participate in team-building activities and develop a deep appreciation for nature.

Supporting Strong Women

F

or 40 years, Hallmark supported the Girl Scouts in their mission to build “girls of courage, confidence and character, who make the world a better place.” In 2017, Hallmark was humbled to receive the Girl Scouts’ Corporate Philanthropy Award in recognition of its longtime commitment.

“Corporate leaders such as Hallmark, who provide financial support and exceptional volunteers, are vital for the Girl Scouts to reach girls in and around Kansas City,” said Joy

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Wheeler, CEO, Girl Scouts of northeast Kansas and northwest Missouri. "In all, more than 32,000 members and volunteers benefit from the Girl Scouts throughout the area’s 47-county jurisdiction."

As part of its effort to support the Girl Scouts, Hallmark has provided nearly $615,000 through in-kind product donations as well as more than $368,000 in financial contributions during the past four decades.

This includes direct gifts to Girl Scout programs and Volunteer Involvement Pays (VIP) contributions, which enable employees to convert their volunteer hours into funds directed to the troop with which they volunteer.

“Being a Girl Scout volunteer means you are a role model the girls will always remember,” explained Libby Allman, Hallmark vice president of manufacturing and procurement, and dedicated Girl Scout board member. “Volunteers make it all possible and introduce girls to experiences that show them they are capable of more than they ever imagined.”

“Today’s girls face challenges, but with caring adult role models, unique program experiences and financial resources they have great opportunities to impact our world in a big way,” added Wheeler. “It’s more important than ever that girls have a

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

“ Volunteers make it all

possible and introduce girls to experiences that show them they are capable of more than they ever imagined.”

LIBBY ALLMAN V I C E P R E S I D E N T, M A N U FA C T U R I N G A N D P R O C U R E M E N T, H A L L M A R K

the program is h e l p i n g to e n s u r e t h e

safety security

place to try new things, overcome challenges and discover what motivates them.”

and

During the past four years, Hallmark has also supported the Girl Scout Outreach Program for girls in the urban core of Kansas City.

of children

&

fa m i l i e s .

“I have had the opportunity to see these young girls in action in their afterschool troops,” said Allman. “The skillsets they are learning from STEM (Science, Technology, Engineering, Math), outdoor experiences and entrepreneurial activities such as selling Girl Scout cookies can really boost their confidence.” n

LEADING BY EXAMPLE

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COMMUNITY

Inspiring Acts of Caring

I

nspiring others to show they care through acts of kindness speaks to the essence of the Hallmark brand. In 2017, Hallmark’s Care Enough campaign highlighted the selfless acts of dozens of individuals to inspire others to perform acts of caring. Here are three examples: Scott Poore A successful Kansas City businessman for more than 20 years now devotes his life to helping animals.

He spends every day in animal shelters promoting homeless pets with videos on his social media platforms, taking them on field trips and finding creative ways to raise money to place them in their forever homes.

He also started a small business, Adopt Don’t Shop KC, which raises awareness and funds through online sales of clothing and accessories to help save hundreds of animals.

“When I place an animal … It’s a feeling of relief. I get to exhale. I get to relax.

It’s emotional,” said Poore.

Carol Mullenix A breast cancer survivor and St. Louis resident passed along an electric-lift chair she received from a friend to another breast cancer patient. From there, the idea of The Healing Chair began, a nonprofit organization that loans chairs to mastectomy patients to aid in their recovery process.

After a friend received a chair from Mullenix, Amy Taitt and a pair of breast cancer-surviving friends, Marcia Moroney and Janette Slusher, founded the Kansas City chapter of The Healing Chair.

Today, there are more than 70 chairs, named for donors, between the St. Louis and Kansas City chapters. A journal is passed along with each chair so each woman can read messages of hope, recovery and healing.

“These little acts of kindness are the kind of thing people need when they are going through this experience,” said Slusher.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Hallmark invited consumers to share their own stories on the company’s Care

Enough

website, hallmark.com/careenough.

Karolyn Roby An elementary school teacher from Omaha, Nebraska, turns students into Secret Kindness Agents. Modeled after the book of the same name by Ferial Pearson, Roby’s students learn how compassion plays a big part in someone’s life. Each student has an “agent name” and devises acts of kindness.

Roby’s students complete a community project each year. In 2017 they chose to help Darnisha White, a stroke victim who had three young children to support while trying to recover. They showered her with cards of encouragement and hugs of comfort.

“The Secret Kindness Agents have been very supportive of Darnisha,” said Roby. “We hoped to overwhelm her with love and remind her there are kind people out there.”

Today, the Secret Kindness Agents project is in more than 400 schools around the world ranging from preschool to university-level classrooms.

Throughout the year, Hallmark also featured additional heartwarming stories during commercial breaks of “Hallmark Hall of Fame” on Hallmark Channel, invited consumers to share their own stories on the company’s Care Enough website, hallmark.com/careenough, partnered with celebrities to spotlight acts of kindness, and encouraged employees to perform acts of kindness inspired by a Care Challenge wall at company headquarters. n

LEADING BY EXAMPLE

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COMMUNITY

Responding in a Time of Need

2017 was one of the costliest years for natural disasters in U.S. history. From

flooding to wildfires, hurricanes and tornadoes, the need for assistance across the country was greater than ever. Hallmark and its businesses supported several disaster response efforts, contributing nearly $150,000 through corporate and employee gifts as well as contributions collected in Hallmark Gold Crown stores.

This card design was used as part of the boxed sets sold to generate funds for the Red Cross to support victims of Hurricane Harvey.

“ We are grateful for our partnerships with the Red Cross and other agencies that allow employees of all our businesses to help those going through tough times.”

CORA STORBECK P R E S I D E N T, H A L L M A R K C O R P O R AT E F O U N D AT I O N

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Responding to the devastation caused

by Hurricane Harvey, Hallmark matched employee donations to the American Red Cross of $35,000 at its headquarters in Kansas City, Missouri, and $4,000 at Crayola in Easton, Pennsylvania. Additionally, Hallmark Gold Crown stores across the U.S. accepted donations from their valued consumers through year-end, totaling $28,000 for the Red Cross.

In addition, Crown Media Family Networks donated air time to run a public service announcement (PSA) from the Ad Council for Hurricane Harvey donations on Hallmark Channel and Hallmark Movies & Mysteries Channel.

The 30-second PSA aired for more than two weeks, appearing more than 100 times between the two stations to prompt financial support.

“After a disaster, financial donations are the quickest way to help people who need it most," said Cora Storbeck, president, Hallmark Corporate Foundation. “Financial donations ensure the type of help given is what people need most and allow relief workers and disaster victims to purchase items locally stimulating the economy of the disaster-affected area.”

Another effort to encourage support from Hallmark consumers included the sale of boxed card sets in Florida and Texas Hallmark Gold Crown stores and on Hallmark.com. Sales generated $24,000 in net proceeds that were provided to the Red Cross.

The funds stayed in their specific markets to aid recovery for the thousands affected by both storms.

Hallmark also provided $6,000 for Hurricane Irma and approximately $8,000 from corporate and employee donations to the relief efforts for Hurricane Maria in Puerto Rico and the earthquakes in Mexico.

Crayola, through its online partners Good360.com and National Association for the Exchange of Industrial Resources, donated product and supplies to relief agencies in Florida, Puerto Rico and Mexico. Crayola’s Mexican division also made donations to those in the country affected by the earthquake.

“We are grateful for our partnerships with the Red Cross and other agencies that allow employees of all our businesses to help those going through tough times,” said Storbeck. n

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

meeting family needs “(Foodbank volunteer day)

allows us to build relationships with coworkers, make a difference in our community and have some fun along the way.”

R AC H E L G O L D SWO R T H Y N AT I O N A L A C C O U N T M A N A G E R , HALLMARK GREETINGS AUSTRALIA

Hallmark employees in Australia were all smiles as they picked and packed items for Foodbank’s charity partners during a two-day period.

Packing Food to Feed the Hungry in Australia

T

he Foodbank volunteer day for employees at the Hallmark Greetings Australia office offers a great opportunity to give back and help those less fortunate.

“It allows us to build relationships with coworkers, make a difference in our community and have some fun along the way,” explained Rachel Goldsworthy, national account manager.

Foodbank — the largest independent food relief resource center in Victoria, Australia — relies on its corporate volunteers, such as Hallmark, to manually pack food orders daily

for their charity partners. Each day more than 66,100 pounds (30,000 kilograms) of food and household items are distributed. In all, more than 100,000 Victorians are served each month.

“We also run a food drive in the lead-up to our days at Foodbank so that people who are unable to participate on the day can still contribute to this worthy cause,” added Goldsworthy.

During the 2017 volunteer day, Hallmark employees packed 12,370 pounds (5,611 kilograms) of food onto pallets for 14 social service agencies. In addition, they packed 3,300 pounds (1,500 kilograms) of mixed groceries into boxes in preparation for shipping to agencies.

This will provide more than 10,000 meals to those in need.

Foodbank connects the valuable contributions of food donors to more than 500 charity partners.

The partner organizations deliver the aid to where it’s needed the most, ranging from large organizations such as the Salvation Army and St. Vincent de Paul to smaller, locally run community organizations. n

L E A D I N G B Y E X A M P L E / M E E T I N G F A M I LY N E E D S

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COMMUNITY

Providing a Safe Place for Families

V

olunteers from Crayola’s Young Professionals (CYP) employee resource group had a profound impact on more than 250 local residents served by the Third Street Alliance for Women & Children in Easton, Pennsylvania.

Fifteen members of the Crayola team invested more than 110 hours to renovate an underutilized storage area into a multipurpose space to meet the needs of area homeless residents and other community member groups.

The project included cleaning and repainting the entire space, creating movable room dividers with curtains, designing a coffee nook with a bar table and stools, painting inspirational quotes on the walls and adding finishing touches such as a coffee maker, area rugs, bookshelves, an entertainment center and Crayola products for the crafting area.

“Volunteering at Third Street Alliance was not something anyone did for recognition,” said Alyssa Sarnosky, community relations specialist, Crayola. “We did it because it is what we are supposed to do as human beings. To be able to give back to our local community in this way was great. The looks on the faces of the Third Street Alliance team when we unveiled the room were priceless.”

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BEFORE

“We did it because

it is what we are supposed to do as human beings. To be able to give back to our local community in this way was great.”

AFTER

A LY S S A S A R N O S K Y C O M M U N I T Y R E L AT I O N S S P E C I A L I S T, C R AYO L A

Crayola volunteers transformed a new multipurpose space for homeless residents to enjoy at the Third Street Alliance for Women & Children in Easton, Pennsylvania.

In addition to manual labor, CYP also raised nearly $800 to offset expenses through bake sales, “paint nights” (a crafting event where members of CYP, along with family and friends, gathered to create paintings) and dine-to-donate events at a local restaurant with a portion of the proceeds donated to Third Street Alliance.

Today, the room is a focal point for activities: it has computers for residents to search for jobs, a meeting spot for “Mommy & Me” parenting classes and acts as a regular hangout to relax or connect with staff counselors.

The partnership between CYP and Third Street Alliance was established

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Giving Families a Break through The Lehigh Valley Volunteer Challenge, an annual, invitationonly corporate competition in which company-sponsored teams conceive, design and complete projects for local nonprofit agencies.

“This event is a win-win for all involved,” explained Sarnosky.

“Companies participating have the opportunity as a team to give back to their community and the nonprofits are the direct recipients of benefits they could not otherwise receive.”

15 members of the Crayola

team invested more than

110 hours to renovate

an underutilized storage area.

As a United Way agency, Third Street Alliance also benefits from monetary assistance through Crayola contributions in the annual campaign. n

Volunteers from Hallmark Canada prepared meals to feed 130 members of different families staying at the Ronald McDonald House in Toronto.

I

n 2017, Canadian Hallmark employees participated in the “Home for Dinner” program in support of the Ronald McDonald House in Toronto. The employees provided volunteers and funds to prepare and pay for a dinner, which fed 130 family members. In all, the dinner donation totaled $1,500, with an additional monetary donation of $4,700 given to the Ronald McDonald House.

“Participating in the Ronald McDonald House ‘Home for Dinner’ program was a very moving experience,” said Shaunagh McParland, retail operations and technology manager, Hallmark Canada. “Having the opportunity to hear and see firsthand the difference this program makes for families dealing with serious health issues was extremely impactful.”

In addition to cooking the dinner, the volunteers decorated the dining area with a beach theme and provided the children with a sand pail full of treats and candies for them to share. Hallmark employees interacted with the families, providing a wonderful opportunity to understand the role of the Ronald McDonald House.

A team from Hallmark Canada has been participating in this program during the past three years. The goal of “Home for Dinner” is to give families staying at the Ronald McDonald House a break from cooking each night and to have a hot meal prepared for them after a long day at the hospital. It also allows families an opportunity to connect with other families staying at the House in a more relaxed, social environment. n

M E E T I N G F A M I LY N E E D S

29

COMMUNITY

reaching our youth Hosting Champions in its Hometown

F

or the first time in 30 years, the U.S. Figure Skating Championships returned to Kansas City, Missouri, in 2017. As part of their longstanding tradition of supporting local and national events in its hometown, Hallmark and Crown Center served as the local presenting partners of the event.

“U.S. Figure Skating was incredibly excited about having Hallmark on board as a sponsor,” said Katherine Holland, director, marketing and

sales for the Kansas City Sports Commission & Foundation, noting how selective the organization is about their affiliations.

During the championships, Crown Center’s Ice Terrace was utilized for free instructional events, including a Learn-to-Skate program, and Sk8 to Elimin8 Cancer, a program from Olympic gold medalist Scott Hamilton’s CARES Foundation, which creates opportunities for communities to come together

on ice to raise money to fund cancer research and education.

Hallmark Retail also donated thousands of its plush itty bittys® characters for attendees of the championships to toss on the ice after their favorite skater competed.

After the events, additional plush toys were donated to Children’s Mercy Hospital, the children’s ward at the University of Kansas Hospital and Operation Breakthrough, an organization that provides safe,

“The partnership was

a really nice way of engaging a strong local Kansas City brand with three great organizations that help and support children.”

K AT H E R I N E H O L L A N D D I R E C TO R , M A R K E T I N G A N D S A L E S , KANSAS CITY SPORTS COMMISSION & F O U N D AT I O N

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

loving and educational environments for kids in poverty.

“The partnership was a really nice way of engaging a strong local Kansas City brand with three great organizations that help and support children,” added Holland.

Olympic gold medalist Brian Boitano, who won his first national championship in Kansas City the last time

the city hosted the U.S. Figure Skating Championships in 1985, visited the University of Kansas Hospital to hand out some of the toys in person and speak with the children and their families.

In addition, former two-time U.S. National Champion skater and Kansas City native John Coughlin distributed itty bittys® at Operation Breakthrough and Children’s Mercy Hospital.

“We were out here sharing the love and trying to bring some smiles to the kids’ faces here in Kansas City because that’s really what it’s about,” said Coughlin. “It’s a fight and a struggle every day for these kids and to be able to put a smile on their face and to partner with U.S. Figure Skating and Hallmark to make that happen is wonderful.” n

Hallmark's support of the championships included donating thousands of its plush itty bittys® at (from left) Operation Breakthrough (with John Coughlin), the children's ward at the University of Kansas Hospital (with Brian Boitano) and Children's Mercy Hospital (with John Coughlin).

R E AC H I N G O U R YO U T H

31

COMMUNITY

Focusing on Children in Texas

The lives and welfare of school-

age children have been an area of focus for the philanthropic efforts of Hallmark’s fixture operations facility in Center, Texas. Numerous employees serve as coaches, sponsors and board members for area nonprofits, and in 2017, the facility — which has fewer than 100 employees — donated $3,000 to make an impact across several local organizations.

The Back Pack program feeds

1,000 hungry

students every year.

Many area children go to school hungry, and the school lunch is the only food they receive. As a result, the Back Pack program was created by teachers to provide food for elementary-age children to eat after school. The program feeds 1,000 hungry students every year and 2017 marked the 10-year anniversary of the Center facility’s financial support.

Another organization, Coats for Kids, distributes new and used coats for children of low-income families in the region.

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“Hallmark’s donations made a huge difference,” said Inez Hughes, principal, F.L. Moffett Primary School.

“We gave needed items to students unable to purchase them on their own, such as backpacks, school supplies and socks in addition to the coats."

Center volunteers also teamed up with Court Appointed Special Advocates (CASA), an organization that works with the county to support abused and neglected children.

CASA provides medical assistance and mileage reimbursement for foster care visits, and volunteers like those from Hallmark attend court to represent the children’s interests.

In addition to helping these organizations, the Center facility established a scholarship program. The fund, marking its 10th year in 2017, offers a minimum $1,000 scholarship to a Center High School graduate with plans to go to college.

“Our employees are excited about the programs to help kids, and we are very grateful to receive such positive feedback from parents, teachers and sponsors in the community,” said Ortega Cartwright, production manager. n

Hallmark employees from the company’s fixture operations facility in Center, Texas, support several programs in their community, including a Food Recovery program, where leftover food which would have been thrown away is given to students in need.

“Hallmark's donations

made a huge difference; we gave needed items to students unable to purchase them on their own, such as backpacks, school supplies and socks in addition to the coats.”

INEZ HUGHES P R I N C I PA L , F. L . M O F F E T T PRIMARY SCHOOL

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

supporting education Cultivating Creativity in Arkansas

Y

oung children are creative because they’re not afraid to be. This idea inspired DaySpring Cards’ Creative Greenhouse program.

“We took that idea and said ‘What if everybody, regardless of skill, was given an opportunity to be creative?’ ” explained Brenda Turner, vice president, communications and administration, DaySpring, a Hallmark-owned greeting card company in Arkansas.

The main goals of the Creative Greenhouse are sharing DaySpring’s creative knowledge about cultivating creativity and making quality instruction accessible to community members and employees, regardless of their skill or experience.

The initial idea took root in early 2016,

with classes officially starting in 2017 with topics as varied as hand lettering, clay modeling, cartoon drawing and watercolor painting.

In its first year, the program reached more than 800, including a mix of adults and children, from 10-year-olds to senior citizens. DaySpring covers the funding and operational hours, with no outside sponsorship, charging only a nominal fee for supplies.

What started as an internal continuing education enterprise has grown into something that feeds the artistic souls of the community and aids DaySpring in recruiting graphic

A DaySpring employee (above) illustrates a painting project for attendees as part of the company’s Creative Greenhouse program.

DaySpring volunteers (left) enjoyed connecting with 800 members of the community through the program.

artists from nearby John Brown University and the University of Arkansas.

The Creative Greenhouse has also been a part of several local festivals, where artists demonstrate various styles of art and hand lettering and operate a card-sending station.

DaySpring is keeping the Creative Greenhouse momentum going in 2018, offering classes on creative writing and a continuing focus on community outreach opportunities. n

R E A C H I N G O U R YO U T H / S U P P O R T I N G E D U C AT I O N

33

COMMUNITY

Enabling Arts Education in the UK

H

allmark Greetings’ United Kingdom (UK) business partnered with local colleges and universities to open the door for students toward a career in the arts, working with six different groups in the past year.

In 2017, Hallmark UK began a new partnership with One In A Million, a charity in Bradford that supports disadvantaged youth between the ages of 5 and 19 through sports, arts and enterprise-themed programs.

Hallmark donated

“The Craft House project gives individuals an opportunity to be artistic, and explore print and design techniques, while learning from Hallmark’s creative experts,” said Heather Williams, innovation manager, Hallmark UK. Hallmark UK also addressed the need to elevate the next generation of artistic talent by working with students through the following activities in 2017:

$15,000 to One In A Million —

enough to support 16 youths in the program for one year.

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“My team and I would like to express our sincere thanks to everyone at Hallmark for playing their part and generously making a difference among Bradford’s children,” said Wayne Jacobs, One In A Million co-founder.

Leeds Beckett University: Advised English and creative writing undergraduates on summer work placements.

Hallmark donated more than £10,700 (about $15,000) to One In A Million — enough to support 16 youths in the program for one year — and hosted 12 individuals from the organization at its inaugural Craft House arts day at Bradford College’s Hallmark Greenhouse facility.

Samuel Leicester Academy: Acted as one of 20 businesses in a speed-networking session, helping to develop students’ presentation and quick-thinking skills.

Dixons Kings Academy: Counseled students on asking questions of job fair employers.

Leeds Co-op Academy: Gave students experience working with creative briefs for Christmas

Students at Leeds Co-op Academy (above) visited the offices of Hallmark UK where they learned how to construct creative briefs, in addition to learning about creative careers.

cracker designs to be sold next year at the Co-op, a UK retailer. During the year, up to 40 students are selected from these types of projects to provide insight into working in a busy creative studio.

In addition, Hallmark UK continued its 20-year relationship with the New Designers Program by inviting top creative students from universities and art colleges across the UK and Europe to exhibit their work.

“We take up to 50 students to join us on a two-week placement,” said Laura Broadley, studio manager, Hallmark UK. “We also select an overall winner from each week who gets a cash prize and a month’s paid placement valued at £2,000 (about $2,800).” n

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Donating Works of Art to the U.S. Department of Education

F

or decades, Crayola has worked with schools to foster creativity in children. But how could Crayola best share with the world the wonderful artwork students were creating across the nation? In 2011, the decision was made to donate selected student artwork to the U.S. Department of Education for display in their building.

“The idea came up in a conversation about our shared commitment to having children’s visual voices be heard and seen,” said Cheri Sterman, director of education, Crayola.

After the first year of the partnership, Crayola established an art exposition — The Crayola Art Expo — to fund future art donations. Crayola frames the original artwork before sending it to the Department of Education.

On average, 40 pieces of art are sent every year.

Crayola framed and delivered

51 pieces of student art in 2017. to see their children’s art. Staff at the Department of Education keep track of where the art is placed and will escort the families to see the pieces.

“In addition to shipping, we turn the day we deliver the art into a celebration of creative teaching and learning by providing professional development for the Department of Education staff,” explained Sterman.

“The idea came up in a conversation about our shared commitment to having children's visual voices be heard and seen.”

“In 2017, we framed and delivered 51 pieces of student art,” noted Sterman.

“All of the art we collect is twodimensional. The pieces were mixedmedia; a combination of drawings with crayon, marker, colored pencils and painting.”

Department officials have noted they constantly hear from families making trips to Washington, D.C., who want

To honor the students and teachers, Crayola creates a plaque for each student that includes an image of the work, the child’s name, the name of the work, the year it was donated and the teacher’s name. Additionally, each teacher receives a Crayola product gift pack. n

CHERI STERMAN D I R E C TO R O F E D U C AT I O N , C R AYO L A

A student with her mother stands next to her framed artwork at the U.S. Department of Education as part of Crayola’s Art Expo.

S U P P O R T I N G E D U C AT I O N

35

COMMUNITY

“ Every year, this

organization impacts more than one million lives through Enactus projects. This work is not accomplished through self-interest, but rather through a desire to learn and give back.”

D AV E H A L L P R E S I D E N T, H A L L M A R K

Dave Hall, president, Hallmark, addresses the 2017 ENACTUS Exposition at the opening rally.

Fostering Entrepreneurship in Action

Supporting entrepreneurial scholars from across the Unites States, and

welcoming 2,000 students and 1,000 business professionals to its hometown, Hallmark served as the City Host Sponsor of the 2017 Enactus United States National Exposition.

Hallmark has been involved with the nonprofit organization for a decade and this was the first time it served in a sponsorship role. Dave Hall, president, Hallmark, helped to kick off this year’s event by addressing attendees at the opening rally: “Every year, this organization impacts more than one million lives through Enactus projects,” said Hall. “This work is not accomplished through self-interest, but rather through a desire to learn and give back. I know you will carry your experiences and caring values into your professional

36

careers, using both your head and your heart to make a difference in the world.”

Worldwide, the Enactus organization is a community of 69,000 student, academic and business leaders who are committed to using the power of entrepreneurial action to transform lives and to shape a more sustainable world.

During the National Expo, student teams present solutions to real world problems, showcasing the collective impact of their community outreach

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

t h e p ow e r o f entrepreneurial

transform

ac t i o n c a n lives.

Dave Hall speaks to prospective students at the 2017 Enactus Expo (above left) as attendees enjoy the company's recruiting fair (above right).

efforts. Each team is then evaluated by business leaders serving as judges and is ranked depending on their ability to use business concepts to improve the quality of life and standard of living for those in need.

Winning teams continue on to compete at the Enactus World Cup. Hallmark’s involvement with Enactus has increased in recent years, from financial support to Hallmark senior

executives serving as judges during the regional and national competitions.

“The Enactus business model is so innovative; it drives social impact through entrepreneurship, which means solutions are sustainable and scalable, leading to incredible results,” explained Hall.

recruiting fair, focusing on STEM (Science, Technology, Engineering and Math) careers, and hosted a free card-sending station.

The company looks forward to furthering its support by acting as presenting sponsor in 2018. n

Along with the competition, Hallmark had a large booth at the event’s

S U P P O R T I N G E D U C AT I O N

37

COMMUNITY

marketing for a cause Engaging Consumers Through Worthy Causes

T

hrough cause-related marketing programs and initiatives, Hallmark helps make a difference in the lives of others throughout the world. Two areas of focus include children and animals.

The decade-long partnership has generated more than $23 million to the U.S. fund for UNICEF.

For the past 10 years, Hallmark’s Greetings business has partnered with UNICEF (United Nations Children's Fund) as its exclusive greeting card licensee in the U.S. and Canada. The UNICEF card program features Hallmark-created designs with UNICEF messaging on the back of the card.

•7 5 million doses of measles vaccines, or •5 million mosquito nets to protect children from malaria, or • 1 00,000 “school-in-a-box” kits to help more than 3.5 million children get back to school after a natural disaster.

“The partnership is a win-win because UNICEF holiday boxed designs are consistently among Hallmark's top-sellers,” said Tamara Weber, licensing manager.

With this size contribution, UNICEF can provide approximately:

“The company’s contribution is especially significant when you consider that 90 percent of every dollar UNICEF spends goes directly to programs helping kids by providing health care and immunizations, clean water and sanitation, nutrition,

education and emergency relief,” Weber added.

“We choose to work with UNICEF because our consumers identify with the organization’s mission and want to help support a worthy cause that positively impacts someone else’s life,” explained Weber.

The protection of animals is another significant need close to the hearts of Hallmark employees. Through its Crown Media Family Networks business, Hallmark Channel airs programming such as “Kitten Bowl” and the “American Hero Dog Awards” to promote the importance of pet adoptions.

“Many of our employees are passionate about animal welfare and pet rescue, considering pets to be

“We saw a perfect opportunity to use Hallmark Channel as a platform to mobilize the public to adopt, rather than shop for their next pet, reinforcing the message that by adopting, people are saving lives.”

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BILL ABBOTT C E O, C R OW N M E D I A

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

integral members of the family,” said Bill Abbott, CEO, Crown Media.

“We saw a perfect opportunity to use Hallmark Channel as a platform to mobilize the public to adopt, rather than shop for their next pet, reinforcing the message that by adopting, people are saving lives.”

In recent years, Crown Media has partnered with American Humane, Best Friends Animal Society, AdoptAPet.com, PetSmart Charities, the Ad Council’s Shelter Project, American Society for the Prevention of Cruelty to Animals and Humane Society of the United States.

In 2017, Best Friends Animal Society continued to utilize a $100,000 donation from Hallmark Channel to help offset pet adoption fees, helping thousands of pets find their forever homes.

In addition, Crown Media partnered with North Shore Animal League America on “Kitten Bowl,” an annual special that airs the same day as the Super Bowl. The special is aimed at finding loving homes for cats and kittens. n UNICEF programs at work (above) provide food, clean water, health care and immunizations for children in need.

With Hallmark’s partnership generating $23M during the past decade, UNICEF can provide approximately:

75mm doses of measles vaccines

OR

5mm mosquito nets to protect from malaria

MARKETING FOR A CAUSE

OR

100k "school-in-a-box" kits to help 3.5MM children

39

COMMUNITY

Partnering with CVS to Promote Healthy Well-Being

Promoting the importance of improving one’s health was the impetus for

two new exclusive card collections Hallmark Greetings created to be offered at CVS locations throughout the United States.

“CVS’ mission is to help people on their path to better health,” explained Steve Cashman, CVS national account sales director, Hallmark.

“And the collection came about to support that need.”

“It was great to see some of the comments on social media in terms of having these two great brands teaming up to battle cancer.”

STEVE CASHMAN C V S , N AT I O N A L A C C O U N T S A L E S D I R E C TO R , H A L L M A R K

The first card collection was connected to the organization Stand Up to Cancer, which raises funds — with the support of the entertainment industry — to accelerate the pace of cancer research to get new therapies to patients more quickly.

“They’re one of the major charity organizations CVS supported for the last several years,” said Cashman.

“In October 2017, CVS promoted better health and made a donation of $1 for any Hallmark card bought

40

at CVS, generating $50,000 for Stand Up to Cancer.”

“It was great to see some of the comments on social media in terms of having these two great brands teaming up to battle cancer,” said Cashman. “It was another example of some of the great things Hallmark does and of what we can do when we put our brand behind important causes.”

In addition, Hallmark Greetings created another collection with a more lighthearted approach under the Shoebox name, Laugh for the Health of It, by using humor to help people on their path to better health and avoiding illness.

The two collections are refreshed twice a year and Cashman says Hallmark is exploring additional opportunities in the future with other charitable organizations CVS supports. For instance, plans are underway for Hallmark to offer a Go Red for Women collection in 2019 to help raise awareness about heart disease and stroke prevention. n

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

$50,000

contribution In October 2017, CVS promoted better health and made a donation to Stand Up to Cancer, stemming from Hallmark card collections sold in their stores.

MARKETING FOR A CAUSE

41

VOLUNTEERING IN OUR COMMUNITIES

christmas in october

More than 250 Hallmark employees, family and friends volunteered for the annual Christmas in October event, with a record number of new team captains leading the volunteers who rehabbed 18 houses for elderly, disabled and veteran homeowners in Kansas City, Missouri.

band of angels

Partnering with Meyer Music and the charity Band of Angels, Hallmark employees put their creative talents to work on old instruments, which were auctioned off with proceeds helping to fund disadvantaged youth at summer music camp.

42

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

spring garden children’s center

Crayola employees celebrated United Way’s Day of Caring in June 2017 by helping to clean and organize the Spring Garden Children's Center of Easton, Pennsylvania.

adopt a highway

Hallmark Business Connections adopted a two-mile stretch of highway near its Duluth, Minnesota, office location, where this smiling group of employees helped to keep the roadway clean throughout the year.

VOLUNTEERING IN OUR COMMUNITIES

43

VOLUNTEERING IN OUR COMMUNITIES

>> charity run

A dozen volunteers from Hallmark's Hong Kong team participated in UNICEF’s charity run, held at the Disneyland property in Hong Kong.

family assistance

Employees at Hallmark’s headquarters sponsored 80 families by providing gifts and meals through Operation Breakthrough, which provides safe, loving and educational environments for kids in poverty.

44

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

writing workshops

Hallmark Senior Writer Melissa Woo (left) led a writing workshop for essay winners in the company’s Care Enough essay contest, conducted in fall 2017 in Kansas City, Missouri. Fellow Senior Writer Meghan Craig designed the contest, in which winning classrooms in grades K-6 received a free writing workshop after answering the question, “What do you care about, and why?”

dance-a-rama

Division leaders (below) at Hallmark’s headquarters participated in a dance-a-rama as a conclusion to its Harvesters food drive in summer 2017 which helped to raise 240,000 meals for those in need.

VOLUNTEERING IN OUR COMMUNITIES

45

sustainability IN WORKING TOWARD HALLMARK’S AMBITIOUS 2020 ENVIRONMENTAL GOALS, THE COMPANY REGULARLY INCORPORATES POSITIVE STRIDES FOR THE ENVIRONMENT WITH THE NEEDS OF THE BUSINESS. IN YEARS LIKE 2017, IT CAN BE A BALANCING ACT BETWEEN WHAT IS REQUIRED TO GROW THE BUSINESS AND WHAT IS NEEDED TO MAINTAIN FORWARD PROGRESS ON ENVIRONMENTAL GOALS.

47

S U S TA I N A B I L I T Y

facts & figures R

amping up greeting card or gift wrap production to meet the needs of new customers or new distribution can mean increases in energy consumption and waste.

However, with smart and flexible environmental initiatives in place, Hallmark continued its progress on its 2020 goals.

In 2017, the company cut waste and special handling materials by 67 percent (including 38.5 million pounds diverted from landfills), reduced greenhouse gas

48

emissions (energy use) by 45 percent and lowered water use by 15 percent. Paper acquired from identified sustainable sources held steady at 99 percent.

“I’m most proud of the collaboration among key players across all divisions, at all levels of the company,” said Steve DiGiacinto, vice president, risk management. “All employees play a role in these changes and we need to continue this focus as we work toward achieving our environmental goals.”

2020 goals

2017 results

98%

of paper from known, sustainable sources

99%

of paper from known, sustainable sources2

55%

recycled fiber in packaging and merchandising

56%

recycled fiber in packaging and merchandising2

50%

FSC® Chain of Custody Certified Fiber

40%

FSC® Chain of Custody Certified Fiber1

25%

reduction in copy paper use

19%

reduction in copy paper use

50%

reduction in water consumption

15%

reduction in water consumption3,4

95%

reduction in waste and special handling materials to landfill

67%

reduction in waste and special handling materials to landfill3,4

50%

reduction in greenhouse gas emissions

45%

reduction in greenhouse gas emissions3,4

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

2017 brought about better ways of designing office environments, updating a public attraction, reusing product and recognizing a longtime zero-waste-tolandfill initiative.

Around the globe, Hallmark’s portfolio of businesses and those they do business with are inspiring action to preserve the planet. n

From creating a summer program for employees’ children in China, to building a work program for disabled people in Hong Kong, to installing solar panels for power production, suppliers for the company are also living Hallmark’s beliefs and values.

2017 highlights

awards

3

35.7mm

38.5mm

total gallons of water reduced

total pounds of waste and special handling materials diverted from landfills

Guangdong Cleaner Production Partner (Supply Chain) Award from 2012-2017 Hong Kong Awards for Environmental Excellence

61k

total metric tons of CO2 emissions reduced

1 FSC®

stands for Forest Stewardship Council® All paper goals relate to products, packaging, merchandising and direct mail materials purchased through North America and Asia.

3 Data includes Hallmark Greetings; Hallmark Retail; Hallmark Home & Gifts; Crayola; Hallmark Business Connections; Hallmark Canada; DaySpring; Center, Texas, facility; Lawrence, Kansas, facility; Leavenworth, Kansas, facility; Metamora, Illinois, facility; Liberty, Missouri, facility; Carefree Caves facility and Crown Center.

4 Base year: 2006 2

FA C T S & F I G U R E S

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S U S TA I N A B I L I T Y

maximizing efficiency Designing Office Spaces with the Environment in Mind

I

n 2017, Hallmark and its businesses made several moves that met its goals of creating work spaces that foster employee productivity while being as energy-efficient and environmentally friendly as possible.

Crown Center After Hallmark employees in Kansas City consolidated into one building, Crown Center attracted two major tenants in 2017 to lease vacated space in other office buildings on the 85-acre campus: BNIM architects and Crestwood Equity Partners.

“We wanted to attract new tenants to these 1970s-era buildings that would help improve the infrastructure of our office space,” said Nathan Guffey, vice president, corporate facilities and real estate, Crown Center.

“For BNIM, one of the draws of Crown Center is the historical significance of our architecture and our long-standing commitment to reducing energy, waste and water consumption.”

Both tenants upgraded and modernized their office spaces.

They opted for open floor plans that allow for higher density of employees with more spaces for collaboration, LED lighting with automated controls to save energy costs and low-flow plumbing to reduce water use. BNIM also repurposed old doors from a different office building as design elements in their new space.

LED

lighting with automated controls saves on energy costs and low-flow plumbing reduces water use.

BNIM's new headquarters in Crown Center (right) features open floor plans for a higher density of employees and more natural light through the building.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

“One of the draws of

Crown Center is … our long-standing commitment to reducing energy, waste and water consumption.”

N AT H A N G U F F E Y V I C E P R E S I D E N T, C O R P O R AT E FA C I L I T I E S A N D R E A L E S TAT E , C R OW N C E N T E R

Crown Center's addition of BNIM's headquarters (above) and a fitness center (below) provides employees with updated amenities that are environmentally friendly.

Hallmark After moving employee offices from Crown Center buildings, Hallmark cleaned and reinstalled the carpet in its main headquarters facility instead of sending it to the landfill, saving $130,000 and reducing waste for the environment.

“We’re continually looking for ways to reuse, repurpose and recycle office furnishings,” Guffey explained.

“It makes sense financially and environmentally.”

In November 2017, Hallmark also opened a new fitness center, with its exposed ceilings saving on building materials and new LED lighting yielding a 60 percent reduction in energy use in its first four months of operation.

MAXIMIZING EFFICIENCY

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S U S TA I N A B I L I T Y

Designing Office Spaces

Hallmark's Hong Kong offices repurposed a vacant industrial building into a more efficient workspace 20 percent smaller than their prior location.

Hong Kong When a mass transit station opened near the Hallmark Hong Kong offices, it was a positive sign for the area, but also an indication that rent costs would increase. In September 2017, the 155-person Hong Kong team moved their offices into a refurbished industrial building. The planning team focused on making energy-efficient choices for lighting, air conditioning and office design.

“Going into a revitalized area and renovating an existing building has a better environmental impact than new construction,” said Dave Saunders, managing director, global procurement and Asia-Pacific.

“We made decisions to help save energy and reduce the environmental footprint.”

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“We made decisions to help save energy and reduce the environmental footprint.”

DAV E S A U N D E R S M A N A G I N G D I R E C TO R , G L O B A L P R O C U R E M E N T A N D A S I A - PA C I F I C

To maintain the industrial feel of the building, they left the ceiling open, used as much glass as possible for walls, installed LED lighting and took advantage of natural light.

but they have made more efficient use of space by lowering partition walls, reducing desk and storage space and creating more areas for employees to collaborate.

“To reduce our energy consumption, we split the office into five zones with timers to have more control over the LED lights and the air conditioning system throughout the day,” said Maggie Lam, finance and business operation services director.

“In our revitalized industrial building, we have lower rent and a lot of flexibility to make a better working environment,” Lam said. “We use office plants to improve air quality and have implemented a recycling program as well.” n

The new office space is 20 percent smaller than the previous location,

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Putting the Freeze on Energy Use at Crown Center Ice Terrace

T

he weather from November through March can often fluctuate, but the ice at the Crown Center Ice Terrace always has to be kept at 23 degrees Fahrenheit — no matter if the temperatures outside are in the teens or the seventies.

So when the 20-year-old equipment that creates the ice started showing its age during the 2016-2017 season, the Crown Center team had a tight timeline to accomplish the renovation project.

“It’s a centerpiece of downtown Kansas City’s holiday and winter entertainment so we have to get it right, and we have to open in early November,” said Nathan Guffey, vice president, corporate facilities and real estate, Crown Center.

“It's a centerpiece

of downtown Kansas City's holiday and winter entertainment … ”

Crown Center made a significant investment to replace all of the mechanical equipment that cools the surface and creates the ice.

The team started the work in March 2017 and had eight months to tear out the old equipment, install the new system and test it to make sure the ice would be ready for opening day.

In just eight months, Crown Center replaced its entire Ice Terrace cooling system to open on time for its 45th year of welcoming skaters, complete with the anniversary logo emblazoned on the ice.

With 80,000 skaters visiting each season, the Ice Terrace provides outdoor activity and vibrancy for the complex throughout the winter months.

By switching to an environmentally friendly refrigerant and equipment that uses a lower refrigerant charge, the new Ice Terrace system requires

N AT H A N G U F F E Y V I C E P R E S I D E N T, C O R P O R AT E FA C I L I T I E S A N D R E A L E S TAT E , C R OW N C E N T E R

In its first season, the new Ice Terrace equipment used

much less energy to operate.

And that’s something to kick up your skates about. n

25% fewer kilowatt hours 9,000 annually.

and it will save around $

MAXIMIZING EFFICIENCY

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S U S TA I N A B I L I T Y

reducing waste Converting Gift Wrap into Energy

I

n 2017, Hallmark Greetings celebrated the 100th anniversary of gift wrap by telling the story of how the Hall Brothers invented the product in 1917.

During the Christmas season, the Leavenworth team hosted national TV crews from NBC’s "Today Show," ABC’s "Made in America," and Hallmark Channel’s "Home & Family."

That meant plenty of bright lights and cameras at the Leavenworth Production Center, where gift wrap is manufactured for North America and the United Kingdom.

“It was fun to see our employees taking pride in the work they do and how they produce our gift wrap,” said Steve Eck, production center manager.

landfill” status, which means that less than 5 percent of waste goes to the landfill. All paper, packaging, labeling and other waste materials from the gift wrap manufacturing process are either recycled or converted into energy.

“Any paper waste is either sent to mixed-paper recycling or to our waste-to-energy partner, a local cement company,” said Mike Robert, senior environmental health and safety administrator. “They are able to burn waste materials for energy as a substitute for coal.”

Celebrating the 100-year anniversary of gift wrap, Hallmark designed a new collection in 2017 inspired by original gift wrap designs.

The zero-waste program may not always grab the spotlight, but employees take pride in making a difference for the environment.

LEAVENWORTH WASTE DIVERTED FROM LANDFILL tons

The Leavenworth Production Center produces 700 million feet of Hallmark gift wrap each year. That’s enough to wrap around the earth five times, and Leavenworth employees make every effort to minimize the environmental impact on our home planet.

For more than six years, Leavenworth has achieved “zero waste to

“They help perform audits to see where we can continue to improve, and they help train new people on our expectations for sorting materials and zero waste,” said Robert. “It’s the right thing to do for resource conservation. We give landfill-bound materials a chance to create energy and keep more coal in the ground.” n

3,300

waste to energy recycle

2,475

1,650

825

'12 '13 '14 '15 '16 year

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

'17

partnering with suppliers Creating Jobs for Disabled Workers well-run company to work and earn money,” Campbell said.

“It’s a great initiative by Leo to help disabled people find work in the local community.”

Leo Paper Group, a Hallmark supplier in Hong Kong, provides practical skills training and job opportunities for disabled workers.

O

ne of Hallmark’s largest Asian suppliers, Leo Paper Group in Hong Kong, is a family-owned company that shares many of Hallmark’s beliefs and values. With more than 10,000 employees, they are dedicated to responsible corporate citizenship, protecting the environment and nurturing employee development.

“Leo Paper does fantastic work with sustainability efforts and environmental initiatives,” said Steven Campbell, responsible sourcing manager, Asia-Pacific. “We want to partner with those suppliers that go above and beyond.”

Since Hallmark has worked with Leo for more than 20 years, Campbell was recently surprised to learn about an inclusive employee program that is a prime example of exceeding expectations.

Leo Paper Group provides practical skills training and job opportunities for disabled people in Hong Kong.

They established this designated workshop within the factory for disabled workers in 2011. In 2017, Leo reached a new high by employing 88 people in this program.

Leo designed the workshop to best meet disabled employees’ special needs, and they assign a designated management team to provide ongoing training. In addition, Leo provides practical living support and assistance to the workers. The workers complete tasks that require simple craftsmanship. By setting achievable production targets workers are more likely to reach their goals and have greater job satisfaction.

“This is not just training disabled people to live and work on their own; it’s creating a culture that supports and embraces all workers,” Campbell said. “We want to work with suppliers who are doing good things in the world, and Leo shares Hallmark’s belief that if you care enough you can change the world.” n

“For people with disabilities, this is a chance to come to a safe,

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S U S TA I N A B I L I T Y

Surveying Suppliers to Influence Change at Crayola

F

or Crayola, the idea of making the world a better place is closely tied to the future of the young people who use their products. Crayola’s Social and Environmental Responsibility statement says: “Crayola believes it’s especially important to ensure today’s kids have a healthy environment for their creative tomorrows.”

For the last four years,

Crayola's global sourcing team has surveyed its top

20-25

international suppliers on their

environmental impact in relation to the Crayola/Hallmark Code

Solar panels installed at Anh Khoa's Brother in Vietnam (above) make it the first printing company in the country to use solar energy for production.

of Conduct.

And sometimes, asking questions is the way to spur change.

For the last four years, Crayola’s global sourcing team has surveyed its top 20 to 25 international suppliers. The survey focuses on the suppliers’ environmental impact: greenhouse gas emissions, water usage, waste reduction, energy efficiency, community development and compliance with the Crayola/ Hallmark Code of Conduct.

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“It’s an education process for the suppliers — we let them know what’s important to Crayola with the expectation that these things should also be important to them,” said Dale Ford, senior buyer, Crayola.

Crayola tabulates the survey results and gives each supplier a score. They then report back to the suppliers and Crayola buyers to show each supplier where they rank.

The goal of the survey is to generate conversation between the buyers and suppliers to bring about improvement in their scores.

“We want to encourage our suppliers to integrate sustainability into their work processes and make progress with us toward minimizing our environmental footprint around the world,” Ford explained.

And the approach is working.

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Anh Khoa’s Brother A printing supplier in Vietnam, Anh Khoa’s Brother finished installing a renewable energy system in 2017. The 416 solar panels provide energy to support all of the company's office operations and one-third of its manufacturing operations, making it the first printing company in Vietnam to use solar energy for production.

North Peak A supplier that manufactures chalk in China, North Peak made several changes to make the factory environment safer for employees and better for the environment. By installing dust collectors in the filling workshop where dry pigments are mixed, North Peak reduced air pollution and improved air quality for employees.

Etafelt A marker manufacturer in Italy, Etafelt installed LED lighting in the factory and saved 60 percent in energy costs. New electric molding machines require less energy to operate, are more efficient to cool and produce less noise.

They also installed a solar energy panel system in 2010 that powers part of the factory’s production. n

“ It’s an education process

for the suppliers — we let them know what’s important to Crayola with the expectation that these things should also be important to them.”

DA L E F O R D S E N I O R B U Y E R , C R AYO L A

An employee at North Peak, a Hallmark Chinese supplier (left), separates pigment in a work environment with improved air quality, due to a new ventilation system above.

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S U S TA I N A B I L I T Y

Making a Difference with Family-Friendly Factory Spaces

“ (The FFFS program) provides a great opportunity for workers and their children to spend time together in a fun, playful, safe environment.”

STEVEN CAMPBELL RESPONSIBLE SOURCING M A N A G E R , A S I A - PA C I F I C

I

n China, it’s common for families to be separated for months at a time.

Many parents work in factories in large cities while their children stay in villages with relatives to go to school.

The Chinese social system connects access to schools and healthcare to the migrant worker’s home province, so most factory workers cannot bring their children with them when they move to cities to work.

“In fact, many workers may only be able to go back to see their families once or twice a year,” explained Steven Campbell, responsible sourcing manager, Asia-Pacific.

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In 2017, two of Hallmark’s main suppliers in Dongguan, China — QP and Golden Glory — stepped up to address the societal issue of “leftbehind children” and joined the Family-Friendly Factory Spaces (FFFS) program sponsored by the Ethical Toy program, a nonprofit arm of the International Council of Toy Industries.

The FFFS initiative creates and operates summer camp programs for children of factory employees.

While parents work, the children spend time learning and playing in a safe space inside the factory, away

from manufacturing operations and supervised by teachers.

During breaks and after work, parents can spend quality time with their children.

“It’s a really fantastic program,” Campbell said. “It provides a great opportunity for workers and their children to spend time together in a fun, playful, safe environment.

Parents need to work to be financially stable for their families,

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

At Chinese supplier QP, the Hallmark team attended an end-of-season celebration for the children participating in the Family-Friendly Factory Spaces program.

and this program helps children to not feel left behind.”

The FFFS program is now in 14 factories, including the two Hallmark suppliers, with more than 500 children benefiting from the program in 2017. The program has created an invaluable impact for families: a safe and secure environment for their children.

“Before the FFFS was launched, we would pity the children who were brought over to the factory because their parents had to leave them inside the apartments when they went to

work due to concerns over their safety,” explained a parent from the program on the website ethicaltoyprogram.org. “After joining the program, employees can now go to work carefree, knowing their children are safe and cared for. The teachers here teach them arts and literature every day. They also get to play and interact with other children.”

In addition, the FFFS program is having a positive effect on the participating factories.

“Both our own monitoring and reports from the Ethical Toy Program are showing improvements in retention rates among workers who participated, as well as improved trust and relationships between employees and management,” Campbell confirmed. n

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S U S TA I N A B I L I T Y

Elevating Engagement Through Mobile Technology

Employees who are engaged in their work are good for business. That’s the idea behind mobile technology that Hallmark is using at Starlite, a key strategic printer in Asia.

Starlite employees share information and increase engagement using the Company IQ app in the workplace.

“ We’re always looking

for new initiatives to help support our suppliers and to keep their workforces engaged. This mobile technology is a great example of how Starlite shares Hallmark’s belief that people are our most valuable resource.”

STEVEN CAMPBELL RESPONSIBLE SOURCING M A N A G E R , A S I A - PA C I F I C

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In late 2017, Hallmark partnered with Tesco, a major UK retailer, and MicroBenefits, a technology company based in Shanghai, China, to begin using Company IQ at Starlite. The Company IQ mobile application facilitates employee engagement surveys, provides interactive training, shares company updates and collects feedback from employees.

“This is about developing new ways to interact with the workers who make our products, wherever they are in the world,” said Steven Campbell, responsible sourcing manager, Asia-Pacific. “We want to ensure all workers have a voice and a channel to give feedback about any issues or concerns.”

Company IQ simplifies the process of gathering employee feedback by pushing surveys and messages through a mobile app that employees can access on their personal mobile devices, anytime and anywhere. It creates an experience more like interacting on social media or playing a game.

“This mobile application provides a number of important functions, such as a grievance system for anonymous feedback and internal company messaging between employees and management,” explained Campbell. “There’s also a training and education section with games and quizzes for workers to learn while competing against each other.”

“I’ve only had Company IQ for a month, but in that month it has become indispensable,” said an employee using Company IQ at another organization. “I love learning, taking quizzes and challenging others on Company IQ. Doing this allows me to increase my knowledge and make me a better leader.”

Although Starlite has been using Company IQ for just a few months, the outlook is positive.

“We’re always looking for new initiatives to help support our suppliers and to keep their workforces engaged,” said Campbell.

“This mobile technology is a great example of how Starlite shares Hallmark’s belief that people are our most valuable resource.” n

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

S U S TA I N A B I L I T Y B Y E X A M P L E

>>

urban renewal

Early in 2017, Crown Center completed the sale of eight acres of undeveloped property at 27th and Gillham Streets in Kansas City, Missouri, just south of Hallmark’s headquarters, to Indianapolis-based real estate developer Milhaus.

With a ground breaking ceremony in April, work started to transform a vacant parking lot into a mixed-use development with a 361-unit apartment community and 7,500 feet of ground-floor retail as part of a continued urban renewal effort in the area. With completion expected in late 2018, the project also calls for a number of environmentally friendly features, including courtyards, an outdoor fitness area, dog park and storage and rental of bicycles to ease the automobile footprint in the area.

>>

dayspring

2017 marked the fifth straight year that DaySpring, a Hallmark Greetings business, has achieved “zero waste to landfill” status at their facility in Siloam Springs, Arkansas. They have found alternate ways to process waste generated by DaySpring operations, either by recycling or burning at a waste-to-energy facility. DaySpring’s annual waste reduction efforts resulted in: • enough energy generated to power 57 homes with electricity for a month; • an average of 250,000 pounds of cardboard and plastics recycled each year; • recycling of all electronic waste through EPC, a recycling organization operating in accordance with the most secure industry practices in the world; and • donating aluminum can proceeds to a local charity in Siloam Springs.

>>

the westin kansas city crown center

As part of its 2017 renovation of more than 700 rooms in The Westin Kansas City hotel, Crown Center invested in LED lighting which will save $10,000 annually in electricity costs. n

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S U S TA I N A B I L I T Y

clothing children in need Donating Baby Apparel to Make a Difference

I

n the fast-moving retail business, trends and seasons change quickly.

For the Hallmark Baby business, that means clearing out excess baby and toddler clothes in order to keep the product assortment fresh for consumers.

“ We’re fortunate to

have found a partner in Community Services League who could so effectively distribute the clothes to those who needed them.”

MARK STRICKLAND D I R E C TO R O F S T R AT E G Y A N D O P E R AT I O N S , H A L L M A R K B A B Y

In 2017, for the first time, Hallmark Baby made a large donation of infant and toddler clothing to help families with young children throughout the Kansas City metro area.

Re-purposing baby clothes in this manner served as a positive alternative to sending clothes to the landfill.

“We think about babies and kids every day in our business,” said Mark Strickland, director of strategy and operations, Hallmark Baby.

“We’re fortunate to have found a partner in Community Services League (CSL) who could so effectively distribute the clothes to those who needed them.”

“We provide basic services — housing, utilities, food, clothing — through 11 locations in the Kansas City area,” said Doug Cowan, executive director, Community Services League. “We have food and clothing pantries at each location, and families can come through and shop for items they need.”

CSL worked with their own locations and other targeted organizations that help moms, children and families to get the Hallmark Baby clothes into the hands of the people who most needed them.

“Often baby items don’t get donated to organizations because they are handed down within families and get worn out,” explained Cowan.

“So to have brand-new baby items available for families to use was absolutely wonderful.”

CSL is one of the largest providers of “safety-net services” in Kansas City, Missouri.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Families lost everything after a tornado ripped through Oak Grove, Missouri, in March 2017, but clothing was provided to help the youngest victims.

Hallmark Baby clothing was distributed by CSL to aid people in the following situations:

During the holiday season, CSL stores made Hallmark Baby items available to families to use as Christmas gifts.

More than 500 children under the age of five are in public housing apartments in Independence, Missouri; donations helped ensure all the infants and toddlers were clothed throughout the year. n

C LOT H I N G C H I L D R E N I N N E E D

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diversity & inclusion ONE OF THE MOST DIFFERENTIATING CHARACTERISTICS OF HALLMARK IS ITS CREATIVITY. HOWEVER, WITHOUT INCLUSIVITY AND DIVERSITY OF ALL BACKGROUNDS, EXPERIENCES AND CULTURES, THE CREATIVITY WOULD STIFLE.

d

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DIVERSITY & INCLUSION

facts & figures “Hallmark is a place where we all can and should

feel safe and accepted,” said Dave Hall, president, Hallmark. “It is important to have an environment where one feels safe to bring their whole authentic self to work every day.”

Hallmark recruits and develops diverse talent by fostering a work environment that is energized by

these differences and celebrates each individual’s gifts and abilities.

For example, the Hallmark African-American Leadership Council employee resource group (ERG) sponsored an empathy circle gathering days after the Charlottesville, Virginia, tragedy in August 2017, to support employees who were seeking unity and encouragement.

1

HALLMARK

2017 total representation, 22,900 employees 19%

Generational Breakdown

4%

Generation Z 1997-Present

83%

3%

2017 Hallmark new hires2

Matures 1909-1945

28%

19%

83%

n People of Color

Millennials 1981-1999

n Women

42%

Baby Boomers 1946-1964

awards

31%

“Best Places to Work” for LGBTQ equality: Human Rights Campaign

Generation X 1965-1980

Diversity and Inclusion Award: National Society of Black Engineers Corporate Partner of the Year: Mid-America Gay & Lesbian Chamber of Commerce ACE Award: Greater Kansas City Chamber of Commerce 1 Includes diversity in gender and race/ethnicity from Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts, Hallmark Canada and Crown Center businesses, in addition to Liberty, Missouri, location. Also includes part-time field sales, corporate store employees, on-call and seasonal employees and other businesses. Information about LGBTQ, disabled and protected veteran employees is not included.

2 Includes all individuals noted on No. 1 with the exclusion of Canada.

3 Gonzales retired from Hallmark in June 2018.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

To meet the needs of LGBTQ consumers, the Hallmark Employees Reaching Equality group advised the greeting card team on LGBTQ-specific selections to be sold on Amazon.com. In addition, after Michael Gonzales, director, diversity and inclusion3, spoke at the Oklahoma City Inclusion and Diversity Summit, the Oklahoma National Guard began providing LGBTQ greeting cards to military members and

their families to help ease uncomfortable conversations.

CRAYOLA

CROWN MEDIA

2017 total representation, 1,850 employees

2017 total representation, 300 employees

Hallmark knows diversity and inclusion are a continuum that will likely never be finished. However, the company is committed to ensuring they are a normal part of business. n

29%

31%

59%

62%

2017 Crayola new hires

2017 Crown Media new hires

64%

40%

65%

67%

n People of Color

n Women

n People of Color

n Women

1% Generational Breakdown Matures Category (1909-1945) = 0%

Matures 1909-1945

Generational Breakdown 15%

Generation Z 1997-Present

27%

Baby Boomers 1946-1964

Gen Z Category (1997-present) = 0%

35%

17%

Baby Boomers 1946-1964

Millennials 1981-1999

35%

Millennials 1981-1999

24%

47%

Generation X 1965-1980

Generation X 1965-1980 FA C T S & F I G U R E S

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DIVERSITY & INCLUSION

workforce Leader Profiles: Conversations with some of our company leaders who made an impact in 2017.

Kim Newton

to the Henry Crown Fellowship Program by The Aspen Institute Global Leadership Network • Received notice she would be included in Savoy’s Top 100 Most Influential Blacks in Corporate America in 2018.

Q: How does women’s leadership

Q: What value does diversity bring

A: For our Hallmark and Crayola branded businesses, women are our primary consumer. Therefore, making a concerted effort to attract and retain outstanding female leaders has always been and will continue to be paramount to our continued success.

A: Diversity alone won’t ensure business results. We have to drive for diversity and inclusion. We need to value and include the voices of all kinds of diverse talent in our business decisions at all levels. Diversity of thought and cultural perspective is critical to success today.

In terms of the role of women in the workplace, there is a growing appreciation for the special attributes women bring to the table such as the ability to multitask and have empathy, intuition and resiliency. It is also exciting to see women excel when they are able to bring their whole selves to work and achieve work-life harmony.

Q: How does diversity in the work-

help shape the company?

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Vice President, Corporate Strategy and Business Development

2017 NOTABLE ACHIEVEMENTS: Selected

to Hallmark?

place help Hallmark’s bottom line?

A: In our company and the increasingly diverse consumer marketplace, there is no way we can win without diversity of thought, opinion and experience. If everyone is the same, they can share the same blind spots and biases that can undermine our relevance. In fact, there is significant increased revenue and margin, as

well as decreased costs, in the nuances that only this kind of inclusion uncovers.

Q: What are you doing within your

team and in your leadership role to help everyone feel included?

A: I am a daughter of a teacher who instilled the value of continuous learning, critical thinking and using your voice. Therefore, the values I nurture and have come to expect on the teams I lead are listening, leading with a point-of-view and managerial courage. I work hard to foster that within my team, but also within the leaders I encounter, mentor and influence. Good leaders ask questions, understand why, value others’ perspectives and use all of that to develop and share their own views as well.

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Lindsey Roy

Chief Marketing Officer and Vice President, Hallmark Greetings

2017 NOTABLE ACHIEVEMENTS: Led comprehensive study on the health of the greeting card category, leading to the 2018 launch of the “Just Because” program in Hallmark Gold Crown stores • Created a new digital commercialization team in Hallmark Greetings, including growth of Hallmark’s share on Amazon from nearly zero to 15 percent and $4 million in new revenue • Served as greeting card industry expert with national media, including CNBC, CMO.com, Cheddar, Adweek and Working Mother.

Q: You went through a tragic boat-

ing accident resulting in the loss of your right leg that changed your life.

Did you experience any biases or exclusion after your accident?

A: I do believe people assumed

initially after my accident that I would have limitations. Perhaps I would not be able to travel as much or I wouldn’t be interested in new career opportunities. Those isolated hypotheses were soon diminished.

Q: Has your leadership style

changed since your accident?

A: In some ways, yes. In some ways, no. I’ve always been “me.”

With that said, I think my accident and challenging recovery have made me more fearless at work. You gain

a broader perspective when you have a serious personal challenge and that perspective helps you see the bigger picture. You do not sweat the small stuff. My accident also taught me I could be much more resourceful than I ever knew.

Q: What are you doing within your

team and in your leadership role to help everyone feel included?

A: I am a big believer in keeping an open mind to other points of view. Listen. Understand. Create an environment for discussion and debate. As a team and one-on-one, we spend time together.

I also spend time regularly with the broader group, beyond my direct reports, in sessions called “Connect

WORKFORCE

with Lindsey,” and we discuss the business and gather perspectives in a casual, face-to-face fashion.

Q: How have the views of people

of other cultures or backgrounds enhanced your work and personal experiences?

A: I have always found it extremely helpful to surround myself with people of diverse opinions — whether they are cultural, tenure at Hallmark, personality or work style differences.

To me, the two most important aspects are to be intentional about accessing different perspectives and to truly listen and learn from those with different perspectives than your own.

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DIVERSITY & INCLUSION

Stacey Paine President, Crown Center Redevelopment Corporation and Executive Vice President of Real Estate

2017 NOTABLE ACHIEVEMENTS: Steered the development of new residential and mixed-use property development at Crown Center • Secured city funding to partially offset costs to remodel 730 rooms at the Westin Crown Center hotel • Helped to attract new office tenants to the Crown Center campus • Provided leadership on the boards of directors for Visit KC, the convention and visitor's bureau serving the region, the Women’s Employment Network and the Kansas City Sports Commission.

Q: What do diversity and inclusion

Q: Has women’s leadership changed

Q: How does Crown Center help to

A: Diversity and inclusion are a perfect balancing act. Diversity means that we recognize and celebrate the differences in people and ensure underrepresented groups become part of our fabric. While inclusion, on the other hand, is about making sure every person feels as though they belong here and they are valued.

A: Twenty years ago, women were in leadership roles at Hallmark, but they were often the only woman in the room. Today, there are more women in leadership roles at all levels and across all businesses, helping us to better connect with our core consumer. Having women in leadership roles also helps shape our company’s culture. It helps that we can share with prospective employees that women are leading various parts of the business.

A: It’s part of Crown Center’s mission to be a gathering spot for the community and we do so for a number of events from lighting the Mayor’s Christmas Tree to summer Weekender Friday nights with movies and food trucks. We continually look for ways to attract a broader crowd and welcome people. In 2018 Crown Center is adding the Middle of the Map Fest, a music festival curated to feature independent artists, and an authentic Oktoberfest.

mean to you, both personally and professionally?

Diversity and inclusion come to life in how we interact with people — who you listen to for advice, who you hire, who you choose to mentor and who you choose to lead projects.

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over the course of your time at Hallmark?

foster an inclusive environment?

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Michelle Vicary

Executive Vice President of Programming, Crown Media Family Networks

2017 NOTABLE ACHIEVEMENTS: Cablefax’s

Most Powerful Women in Cable • Launched three new movie franchises: “Emma Fielding Mysteries,” starring Courtney Thorne-Smith; “Darrow & Darrow,” starring Kimberly Williams; and “Fixer Upper Mysteries,” starring Jewel.

Q: What has been the biggest

Q: How have you begun to incorpor-

Q: What advice would you provide

A: Having a diverse mix of voices and perspectives — not just among senior management but throughout the whole company — contributes greatly to the quality and depth of our programming.

A: We have a great family of talent that we have worked with for years.

But over the last 18 months, our focus on widening the net and increasing diversity in our programming has become a major priority.

We want our content to resonate with viewers of all ethnicities and cultural backgrounds, which means it is critical that our employee base reflects that diversity. Ultimately, diversity is attracting a much broader range of viewers and is helping to drive our ratings to record levels.

To that end, we are actively pursuing a more diverse range of talent both in front of and behind the camera. We have multiple projects in development now with some of the entertainment industry’s most beloved stars who represent a variety of ethnicities and cultural perspectives and we are working toward expanding in this area even further.

A: First and foremost, stay true to who you are, work hard and do what you love. Now more than ever before, women are feeling increasingly empowered in the workplace and I encourage young women looking to advance in their careers to embrace this and ask for what they deserve.

positive Crown Media has seen from having diverse leadership?

ate diverse roles into programming and behind the camera?

WORKFORCE

other women striving for leadership positions in their career?

Q: How do you personally help play a role in supporting an inclusive workforce?

A: I love hearing ideas and input from colleagues at all levels and from different backgrounds. I try to cultivate a workplace environment where everyone feels like their voice and opinions matter. n

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DIVERSITY & INCLUSION

Supporting People with Disabilities

Crayola collaborates with strategic partners to grow its knowledge and resources for hiring those with disabilities.

“It is important for us to have a diverse workforce, including employees with disabilities, who provide unique talents and help us meet our business goals,” explained Stephanie Yachim, talent acquisition manager, Crayola.

Currently, Crayola employs more than 170 individuals with disabilities in jobs ranging from part-time staff at Crayola Experience locations to corporate roles across multiple divisions and from entry level to senior management.

“These employees help us create a stronger, more inclusive culture,” Yachim said.

Since 2013, Crayola has partnered with the Pennsylvania Disability Employment and Empowerment Summit (PADES) to achieve its goals.

The once-a-year PADES symposium event brings together employers, government agencies, service providers and potential employees to dispel myths and discuss opportunities for

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“(Employees with disabilities) help us create a stronger, more inclusive culture.”

S T E P H A N I E YA C H I M TA L E N T A C Q U I S I T I O N M A N A G E R , C R AY O L A

Stephanie Yachim, talent acquisition manager, Crayola, (second from left), joins other attendees at the sixth Pennsylvania Disability Employment and Empowerment Summit.

people with disabilities to find employment. The 2017 event featured motivational speakers who achieved success in the workplace and educated business leaders on how to adapt and be more accepting of employees with disabilities.

“We especially enjoy the conversation among peer groups and benchmarking with other employers so we can identify job opportunities we may not have thought of,” said

Yachim. “It was also beneficial to grow our knowledge of what is happening in the employment market while tapping into PADES resources.”

Crayola utilized one of these resources — the Pennsylvania Office of Vocational Rehabilitation — to discover potential applicants and talent through local vocational schools. n

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

workplace Fostering Diversity in the Entertainment Industry

T

hrough the support of several entertainment industry organizations, Crown Media Family Networks provided opportunities for diverse students to intern with the company.

In 2017, Crown Media partnered with the National Association of MultiEthnicity in Communications, Women in Cable Telecommunications, the Emma Bowen Foundation and, for the first time, a full-year partnership with the T. Howard Foundation.

Internship positions at Crown Media are in a variety of departments, including marketing, ad sales, programming and distribution sales.

“Immersive programs like these provide young men and women a great launching pad from which they can learn and build their skills to succeed in the industry,” explained Abbott.

Internship positions enriched by partnerships

National Association of Multi-Ethnicity / namic.com

“Having employees from diverse multicultural

backgrounds makes our business stronger, our programming better and our workforce more innovative.”

Women in Cable Telecommunications / wict.org

BILL ABBOTT C E O , C R O W N M E D I A FA M I LY N E T W O R K S

“Over the years, it has been a distinct privilege to work with these influential organizations whose mission it is to increase and sustain diversity in our industry,” said Bill Abbott, CEO, Crown Media Family Networks. “The work they do is incredibly important to us. Having employees from diverse multicultural backgrounds makes our business stronger, our programming better and our workforce more innovative.

Crown Media also sponsors events, conferences and award ceremonies throughout the year for these partner organizations, and company employees participate in their leadership conferences, executive development programs, speaking engagements and mentorship initiatives, while also serving in board leadership positions. n

WORKFORCE / WORKPLACE

Emma Bowen Foundation emmabowenfoundation.com

T. Howard Foundation t-howard.org

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DIVERSITY & INCLUSION

Employing Diverse Talent Through Partnerships

T

hanks to partnerships with organizations committed to advancing the careers of talented individuals with a wide range of backgrounds, capabilities and experiences, Hallmark’s collective Kansas City-based businesses saw a 20 percent increase in full-time diversity hires in salaried positions during the last year.

“It’s imperative that we have a diverse workforce to create the diverse set of products our consumers expect from us,” said Fred Wise, human resources director, global talent acquisition. “It’s why we invest time and resources in partnerships to attract and hire diverse talent at all levels of the company.”

“ … we invest time and resources in partnerships to attract and hire diverse talent at all levels of the company.”

FRED WISE HUMAN RESOURCES DIRECTOR, G L O B A L TA L E N T A C Q U I S I T I O N

One such partnership with Management Leadership for Tomorrow (MLT) began three years ago. The organization helps to equip African-Americans, Latinos and Native Americans with skills, coaching and connections to become leaders in organizations. Hallmark has received acceptances from more than 50 percent of its total offers to candidates from the group, including three hires in 2017.

“It has been one of the best partnerships we’ve had to broaden our intern and entry-level hiring pools,” noted Wise.

Another relationship opening doors to a diverse set of young people across the United States is with Enactus. The organization held its national conference in Kansas City, Missouri, where college students shared project results and competed in business and entrepreneurial events. Hallmark sponsored the 2017 conference and is increasing its level of support the next two years while the event remains in the company’s hometown.

Our collective Kansas City-based businesses saw

20% increase in full-time diversity hires in salaried

a

positions during the last year.

Two additional organizations Hallmark is working with are the Network of Executive Women, to help recruit executive-level talent, and Hiring Our Heroes, which recruits military veterans for key supply chain, logistics and technical skill positions.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Management Leadership for Tomorrow (MLT)

MLT equips high-achieving women and men from underrepresented communities to realize their full potential, to make a mark and make a difference. ml4t.org

Network of Executive Women (NEW)

NEW works with members and partners to transform the retail and consumer goods industry, advance women leaders and create a better workplace for everyone.

Hiring Our Heroes

Hiring Our Heroes helps veterans, transitioning service members and military spouses find meaningful employment opportunities. hiringourheroes.org

newonline.org

Enactus

Enactus inspires students to improve the world through entrepreneurial action. enactus.org n

Hallmark's presence at Enactus' 2017 national conference was led by Dave Hall, president, Hallmark, (far right) who was joined by (from left) Sabrina Wiewel, senior vice president & chief customer officer, Hallmark Greetings, Gracie Schram, 2017 Enactus performer, and her mother, Jill Schram.

WORKPLACE

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DIVERSITY & INCLUSION

marketplace Celebrating African-American Culture with Jill Scott

T

o commemorate the 30th anniversary of Hallmark Greetings’ Mahogany card line aimed at African-Americans, the brand announced a new product collaboration with three-time GRAMMY award winner Jill Scott last year.

Available at select Hallmark Gold Crown stores, on Hallmark.com and in mass-channel retailers, the line includes greeting cards for friendship, love and support, along with offerings for Valentine's Day, Mother's Day, Father's Day, graduation and holiday.

Scott collaborated with the creative team at Hallmark to develop designs that reflect her personality, often including layers of vivid colors, natural textures and soothing metallics. She also helped set the editorial "voice" and wrote many of the cards, opting for affirming and optimistic messages.

"Jill is more than a singer, songwriter and actor," explained Philip Polk, vice president, diversity and inclusion.

"Among other things, she is a busy mom like many Hallmark shoppers who cherish and celebrate the important relationships in their

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lives, and this card collection reflects that."

"The Mahogany brand is genuine, progressive and optimistic — values that are important to me and reflected in my music and poetry, and now, through my card collection," said Scott. "I was inspired by highlights within my own life — love, marriage and motherhood — in the writing behind these cards, and I am excited to be involved in a project that will give others another way to express their love to the people that matter most to them."

In 2018, the collection has expanded to gifts including notebooks, mugs, trinket trays and pouches sold in select Hallmark Gold Crown stores.

This new collaboration builds on prior partnerships with inspirational leaders such as Maya Angelou and T.D. Jakes, both of whom developed Mahogany product offerings. n

HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

“ The Mahogany brand is genuine, progressive and optimistic … I was inspired by highlights within my own life — love, marriage and motherhood — in the writing behind these cards … ”

JILL SCOTT S I N G E R , S O N G W R I T E R A N D A C TO R

Jill Scott takes time out for a selfie (above) while visiting Hallmark with Studio Editorial Director Dierdra Zollar (in back) and Studio Art Director Erica Keith.

Hallmark Senior Artist Ken Sheldon (far left) collaborates with Jill Scott on creating new designs.

Products from the Jill Scott collection feature multiple gift items (left).

Blues Films, Inc. © 2018, All Rights Reserved

MARKETPLACE

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DIVERSITY & INCLUSION

Introducing Alexa and Carlos PenaVega from Hallmark Channel How did your partnership with Hallmark Channel happen?

We have always been fans of Hallmark Channel; they understand “family!” We had been looking for projects to work on together. When we expressed that to Hallmark Channel, they jumped on board and ran with it!

How are you feeling about the films you are a part of?

With Hallmark, we get to tell stories that are meaningful and fill people with joy. We love being able to inspire people with the projects we work on.

“Enchanted Christmas” was your self-described first major project together.

How do you feel about showcasing your Hispanic traditions in the film?

Carlos and I love our roots! It’s so fun to be able to play all sorts of characters that represent the different sides of where we are from.

The U.S. is such a melting pot of people from all over the world! It’s fun to represent and share our heritage with people.

What do you hear from fans and viewers about the movies?

“HALLMARK CHANNEL IS AMAZING!" Besides that, we constantly hear that they are so in love with the films Hallmark continues to produce. It is such a safe place in the midst of all the things happening in the world.

They know they can leave the channel on all day and never have to worry about what content will be on for their kids; it’s the perfect family channel.

What are your future plans?

We are looking forward to expanding from just "being actors" to behindthe-camera roles. This opportunity is such a blessing. We will be stepping into the producing role on many projects moving forward. There are so many ideas and it is such an incredible company that is willing to collaborate and create beautiful, family-friendly, entertaining content.

We really do believe it's a perfect fit! n

Alexa and Carlos PenaVega (left) made their Hallmark Channel debut with "Enchanted Christmas" in 2017 and look forward to expanding their partnership with the network.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Meeting the Needs of Asian Consumers

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esearch from Walgreens showed that in some U.S. markets 80 percent of residents who lived close to their stores are Asian-American. As a result, the Walgreens and Hallmark Asian-American employee resource groups (ERGs) came together to champion a festive Asian line of cards that recognized the culture’s celebrations and events in a meaningful way.

They kicked off a 10-store test in late 2016 where culturally relevant Chinese and Indian birthday, wedding and season card selections were expanded and highlighted.

"Because the Asian-American market is so diverse, representing many countries and cultures in the card line was quite challenging," said Michael Gonzales, director, diversity and inclusion, Hallmark.

"However, by tapping the expertise of members from the two ERGs, we felt we cracked the code with compelling product solutions.”

“As an Asian-American, it was important to me to provide my family members with cards that resonated with our culture,” said Gazala Bazal, Walgreens manager, lease administrator and advisor and past chairperson for the Walgreens Asian Network.

“ … by tapping the expertise of members from

the two ERGs, we felt we cracked the code with compelling product solutions.”

MICHAEL GONZALES D I R E C TO R , D I V E R S I T Y A N D I N C L U S I O N , H A L L M A R K

Due to the successful partnership and launch of the Asian celebration card line, Walgreens and Hallmark were asked to present a case study on the power of collaborations at the National Association of Asian American Professionals (NAAAP) conference in August 2017. As a result, other companies’ ERGs were inspired by the collaboration presented and began asking for help from Hallmark and Walgreens.

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“The partnership between the Walgreens and Hallmark ERGs continues to evolve,” said David Moore, chair of Hallmark’s AsianAmerican ERG. “We’re digging deeper into other audience needs and identifying new opportunities, such as Asian-Americans who may align themselves with other communities, such as LGBTQ.” n

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DIVERSITY & INCLUSION

Tapping into Different Cultures with Wonderfolds®

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irigami, a variation of origami that includes folding and cutting of paper, began in Japan more than 1,000 years ago, marking the beginning of the country’s expertise in the paper craft art form. Today, Japan continues to be the leader in innovative paper craft.

So when the Hallmark Greetings team in the U.S. committed to introducing new paper craft product innovations, they partnered with creative talent in their Hallmark Japan office for inspiration.

“Wonderfolds® are more than a greeting card — they’re carefully crafted gifts for consumers that lead to genuine Hallmark moments,” said Tom Brantman, creative director, Hallmark Greetings. “Our colleagues in Japan taught and inspired us on more than just product. We also learned how to effectively package and merchandise the product.”

According to Noriko Azechi, managing director, Hallmark Japan, “It was a great experience for our creative teams to work closely together to produce an innovative piece for our valued consumers.” n

Every corner of the card is designed

offering a

360° experience.

The result is the introduction of the Wonderfolds® card line launched in Hallmark Gold Crown stores last year. The new product celebrates the art of paper craft. Each card folds flat then pops up onto a base that allows the card to stand upright and be displayed. Every corner of the card is designed offering a 360degree experience. It’s also unique in that it incorporates a mini paper card that can be signed in each design.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

Advancing Supplier Diversity

2017 Supplier Diversity Advocate Awards

I

n 2017, Hallmark’s spend with diverse suppliers — those owned by minorities, women, veterans and members of the LGBTQ community — increased 12 percent from 2016 with 9 percent of its diverse spend coming from new suppliers, a 3 percent increase over the prior year.

“Our supplier diversity efforts demonstrate our commitment to promoting economic growth and sustainability within the diverse communities in which we do business,” said Mark A. Smith, Hallmark’s global procurement manager.

A long-standing tenet of the program has been to leverage Hallmark’s more than 100 years of experience as guidance for supplier and sustainability efforts.

Hallmark ensures new suppliers who come through the procurement process are asked about their sustainability policies, environmental stewardship and code of conduct.

To that end, Hallmark established its Supplier Diversity Awards, given each year to honor suppliers and employees who strengthen the supply chain, multicultural marketplace and commitment to diversity and inclusion.

Four awards were presented in 2017: two supplier diversity advocate awards for aggressively soliciting and encouraging purchasing from qualified suppliers, and two outstanding supplier awards that exemplify excellence in their partnership with Hallmark. n

“ Our supplier diversity efforts demonstrate our

commitment to promoting economic growth and sustainability within the diverse communities in which we do business.”

Craig Oerly Hallmark buyer Significantly increased Hallmark’s diversity second-tier spend after two paper suppliers merged.

Japs-Olson Co. St. Louis Park, Minnesota Began working with veteran and LGBTQ-owned suppliers to procure print production services when they learned Hallmark had also begun working with the two diverse-supplier types.

2017 Outstanding Supplier Awards Long’s Moving and Transport Kansas City, Missouri Supported the relocation of 1,000 employees at Hallmark headquarters.

African-American owned business.

International Express Trucking (IXT) Kansas City, Kansas Successfully increased container storage volume at Liberty, Missouri, Distribution Center after the consolidation with another facility.

Woman-owned business.

MARK A. SMITH G LO B A L P R O C U R E M E N T M A N AG E R , H A L L M A R K

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DIVERSITY & INCLUSION

community Showing Gratitude for Veterans

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n 2016, Kelly Brock, a reservation coordinator for Hallmark’s attractions, and member of Hallmark’s Military Interest Group (MIG), reached out to her father-in-law’s USS Hornet organization with an idea.

The Hornet’s members — veterans who served in the Pacific War,

World War II, and the Vietnam War were looking for a location to host their annual reunion the next year. Brock suggested they visit Kansas City and tour the Hallmark Visitors Center, where the staff would create a special military display in their honor.

Once the group confirmed they were coming, Brock wanted to ensure the veterans felt the Hallmark spirit at the Visitors Center.

On a bright, sunny September day, hundreds of Hallmark employees holding signs and waving American flags welcomed 60 USS Hornet veterans and their family members

Ninety-two-year-old Stan Hergott (left) and 94-year-old Ken Brock share a laugh telling stories as they visited Hallmark with fellow veterans from the USS Hornet.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

with a rousing patriotic welcome — a reception many never experienced when returning home after serving their country.

Hallmark employees (left) held personal messages of appreciation while greeting veterans of the USS Hornet.

“It was the second-most touching thing I’ve had happen to me in my 94 years,” said Ken Brock, Kelly Brock’s father-in-law and World War II veteran.

kindness and enthusiasm, and I think a little divine intervention," said Goode.

Shawn Clark, senior logistics planner, veteran and MIG chair, also coordinated a card-signing opportunity for Hallmark employees during the rally. The Hallmark cards with more than 1,000 signatures were shared with Kansas City and Heartland Honor Flight veterans.

Hallmark employees also brought holiday cheer to the USS America, a naval ship on the last leg of a seven-month deployment, at the end of last year. Diane Goode, project coordinator, Hallmark Greetings, reached out to the MIG on behalf of her son, a master sergeant with the U.S. Marine Corp.

“It was the second-most touching thing I've had happen to me in my 94 years.”

KEN BROCK W O R L D WA R I I V E T E R A N

Hallmark employees collected 700 ornaments in just four days to decorate the empty Christmas trees in the USS America's dining room.

"It certainly wouldn't have happened without fellow Hallmark employees'

Employees on the diversity and inclusion team at Hallmark’s Metamora, Illinois, facility selected Goodwill Industries as an outside organization for support. The Stand Down for Homeless Veterans event hosted by Goodwill offers 200 veterans a hot meal, clothing for winter, educational seminars and basic medical services. Seventy-five employees collected 350 pounds of clothing for the event as well as outside donations.

“Our team sees the highest participation rate among facility employees when hosting events to support our veterans,” said Bryant Carter, plant systems analyst, Hallmark Metamora facility. n

Additional Metamora Events and Activities

500

$300

24

veteran lunches

in donations

veterans that received groupsigned Veteran's Day cards

COMMUNITY

300+

names and photos of fallen Illinois military heroes on display through the Illinois Patriot Guards Traveling Wall

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DIVERSITY & INCLUSION

Paving the Future for Minority Youth in Illinois

When Bryant Carter in Hallmark’s

Metamora, Illinois, fixture manufacturing facility began volunteering for the Tri-County Urban League several years ago, it sparked a desire to help others prosper. Today, that initial commitment from the plant systems analyst has grown to be an example of employees aiding the community in which Hallmark serves and inspiring others to flourish.

“I want young people in this area to succeed,” said Carter. “One way we can help is by encouraging them to be a part of something bigger than themselves. Involvement in the Urban League shows kids the wide range of career possibilities if they keep at it and stay engaged with the program.”

He now serves on the organization’s board of directors and rallies his fellow Hallmark employees around the organization’s mission of promoting education and improving employability skills, self-sufficiency and social well-being of AfricanAmericans and people in need.

In 2017, Metamora employees partnered with the Urban League’s middle school and high school program, Tomorrow’s Scientists, Technicians and Managers (TSTM).

The employees were paired with minority and low-income students to foster interest in math and science classes while also offering scholarships, hands-on training, career mentoring and after-school tutoring.

Thanks to the fundraising efforts of Metamora employees, nearly 30 TSTM students were able to schedule spring college tours around Savannah and Atlanta, Georgia, where historically AfricanAmerican schools exist.

“This is an opportunity many of these students would never have,” said Carter. “I’m proud of my coworkers’ belief in our area’s future and supporting the Urban League.”

Metamora employees also support events that bring awareness about minority leaders who have paved the way in science, technology, engineering and math (STEM) careers. Through their donations, they helped bring Karan Kendrick, an African-American actress who appeared in the film Hidden Figures, to Peoria to talk about her work on the movie and the importance of STEM education. n

“ This is an opportunity many of these students

would never have. I'm proud of my coworkers’ belief in our area's future and supporting the Urban League.”

B R YA N T C A R T E R P L A N T S Y S T E M S A N A LY S T, H A L L M A R K M E TA M O R A FA C I L I T Y

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E M B R A C I N G A D I V E R S E A N D I N C L U S I V E C U LT U R E

umkc pride summit

Don Hall, CEO, Hallmark, (far right) spoke at the ninth annual University of Missouri-Kansas City (UMKC) Pride Summit in April 2017, as part of a panel of influential Kansas City community members who strive for and celebrate a diverse, inclusive workforce.

hispanic culture

dim sum and more

The Hallmark Hispanic Education and Awareness Resource Team (HEART) employee resource group celebrated Hispanic Heritage month from Sept. 15–Oct. 15, 2017 at Hallmark headquarters. Events included a salsa demonstration, a Hispanic artists’ day, and great interaction among employees learning about Hispanic culture.

In January 2017, to celebrate the Lunar New Year — also known as the Chinese New Year — the Asian-American Resource Community at Hallmark (AARCH) offered several events at Hallmark headquarters to help employees learn more about the celebration, including displays of Lunar New Year greeting cards and products, Asian cuisine, a lion dance performance video, Chinese calligraphy and a Dim Sum 101 class for employees to learn how to eat the traditional bite-sized food.

gender inclusive cards

The Hallmark Employees Reaching Equality (HERE) employee resource group helped influence product for LGBTQ consumers, including the 2017 collection of gender inclusion cards from Hallmark Studio INK® distributed in 120 stores in various markets.

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millennial melting pot

More than 50 millennials gathered at a local restaurant to kick off Hallmark’s Millennial Employee Resource Group (MERG) Month with an event titled “Confronting Cliches,” where they discussed if stereotypes of their generation were mere myth or truth.

the empathy circle

The Hallmark African-American Leadership Council (HAAL) sponsored an empathy circle August 2017 in response to the Charlottesville, Virginia, tragedy. Hallmark’s Diversity and Inclusion department hosts these circles by request throughout the year, enabling Hallmark employees to gather in an unstructured setting to show support to one another and discuss a topic or event.

journey from vietnam

Hallmark’s Military Interest Group (MIG) and Asian-American Resource Community at Hallmark (AARCH), partnered in hosting Lt. Tran-Yu. She spoke to the groups about her journey of leaving Vietnam as a refugee and suffering many personal and family tragedies along the way before becoming a member of the U.S. Navy.

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HALLMARK 2017 SOCIAL RESPONSIBILITY REPORT

card-sending station

Enactus, an international organization that supports entrepreneurial college students, hosted its 2017 National Exposition in Kansas City, Missouri. Hallmark was the premier sponsor of the event and hosted a card-sending station.

day of the dead

commitment to lgbtq

In 2017, the Mid-America Gay & Lesbian Chamber of Commerce awarded Hallmark as its inaugural Corporate Partner of the Year. The award recognizes a business that has shown a commitment to diversity in the workplace and has worked to grow the LGBTQ community and allied business community in the region.

Several employee resource groups, along with Hallmark’s multicultural product team, created displays of Day of the Dead altars, which remember family and friends who have died. Traditions shared among the altars included calaveras, Aztec marigolds and favorite foods and beverages of the departed.

E M B R A C I N G A D I V E R S E A N D I N C L U S I V E C U LT U R E

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caring in action | 2017 social responsibility report

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