S&D Social Impact Report 2021

Social Impact Report 2021 We help women rise.

What’s Inside LETTER FROM OUR FOUNDER

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OUR STORY 3 OUR PURPOSE & IMPACT

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CHANGE WE CAN MAKE 7 GIVING RESPONSE 9 HOW WE GIVE 10 OUR 2020 IMPACT 13 MILESTONE MOMENTS 17 SOCIAL RESPONSIBILITY & INTEGRITY

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SUSTAINABILITY & PRODUCT SAFETY

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CODE OF CONDUCT 22

Small actions add up to big impact.

WE GIVE WITH EVERY PURCHASE At Stella & Dot Brands, we’ve been purpose-driven from day one. We exist to help all women rise. Because when you help a woman thrive—financially, physically, and emotionally—she brings her community and the next generation up with her. And that means a better, more equal world for all humankind.

Learn more at stelladot.com/ourpurpose. #stelladotgives

S& D FAM ILY OF B R ANDS CEO & FOUNDER

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Our story.

Purpose driven from day one.

THE ORIGINAL STELLA & DOT Named after our grandmothers, Stella & Dot Brands honor the women that came before us, the women who crossed oceans, rolled up their sleeves, won the vote, raised kids, went off to work, and did it all with grit and grace. They paved the way to make the world a better place for all women, and we intend to do the same.

Jessica Herrin, CEO & Founder (R) and Blythe Harris, CCO & Co-founder (L).

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A company created for and inspired by strong women.

OUR MISSION Too many women struggle with balancing family life and a successful career, so we launched our company with a simple misson: to help women be their own boss, on their own terms. Stella & Dot is more of a community than a company, more of a movement than an old-school business. Here, we believe in you doing you, better than you’ve ever done before. and nothing is more gorgeous than that.

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OUR PURPOSE

We’re here to help women rise HERE’S HOW WE’VE RISEN TO THE OCCASION (SO FAR)

$550M +

$9M +

CO M M I S S I O N S PA I D TO

D O N AT E D I N C A S H A N D

AMBASSADORS

PRODUCTS

IT STARTS WITH

you.

When you order, we round up the total and donate products or funds based on the needs of our giving partners.

Thanks to you, we support giving partners that focus on the health, financial, and emotional wellbeing of women and children.

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E L E VAT E Y O U R E X P E C TAT I O N S

We’re yay-sayers, product-obsessed creators, innovative disruptors, active citizens, and hard-working warriors for all women.

We love our families, our communities, and our planet. This perspective and our purpose shapes all we do.

Our purpose in action WE SEE BUSINESS AS A CATALYST FOR CHANGE—AND THAT PLAYS OUT IN THESE FOUR COMMITMENTS. WE GIVE WITH EVERY ORDER CONFIDENCE IN AND FROM OUR PRODUCT S O C I A L R E S P O N S I B I L I T Y & S U S TA I N A B I L I T Y A COMMUNITY OF OPPORTUNITY

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The Change We Can Make.

Small acts. Big impact.

The Stella & Dot Family of Brands engages and inspires our community to affect positive change in the lives of women and their families. Together, through the donations made possible by the sale of our products, rounding up with every order and commissions paid out to our Ambassadors, our collective small acts add up to make a big impact.

67% +

Around the world, women face a wide variety of constraints that restrict their ability to participate fully in the economy over the course of their lives. Women

U.S. women spend more time doing unpaid work than U.S. men, according to the OECD.

and girls face barriers to education and training, resulting in lower rates of literacy and numeracy, that impede their ability to enter and advance in jobs across a range of industries and to attain higher-wage and high-skilled employment.

Women are underrepresented in the labor force, while they are overrepresented in part-time jobs, non-wage work, and low productivity sectors. Women often face discrimination and harassment in the workplace, and they face violence in the home, at school, at work, and in the street that hinders their ability to participate fully in the economy.

Growing the divide even further is how women in minority groups are affected at an even greater rate. Poverty rates for African Americans (25%) and Hispanics (22%) are nearly triple those of whites (8%), even though a much larger number of the poor are white. Persistent poverty also disproportionately affects minorities. Economist Rebecca Blank found that in a 13-year period, one-third of all Americans (34%) were poor for at least a year, and about 10% were poor for most of the time, but fully 30% of African Americans were poor most of the time. It would be wrong to minimize the racial component of

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*

poverty in America.

It’s hard to address a problem when so many don’t believe it exists.

The Ripple Effect When women rise they...

1 Grow the economy When 10% more girls go to school, a country’s GDP increases by an average of 3%*

2 Invest in the next generation Women invest 90% of their income in their family* Every year a girl stays in school, her income can increase by 15-25%** Educated mothers are more than twice as likely to send their children to school**

3 Become role models When women lead they shatter gender-based norms and stereotypes in their communities They provide a living example of potential for girls and other women

*IFC Jobs Study Assessing Private Sector Contributions to Job Creation and Poverty Reduction Findings On Gender, January 2013. **USAID.GOV / Education Gender Equality and Girls’ Education / Jan 2018

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Our giving response We practice responsive giving to support a range of partners. Responsive giving means that we listen to nonprofits and contribute in ways that best address their needs. This allows us to support a range of partners in the way that will help them the most. When you purchase a product, our partner nonprofits will either receive that exact same product, another S&D product they need more, or a cash donation. For every purchase, we give products or funds.

Everyone who purchases a product becomes part of our mission and purpose to give back.

WE FOCUS ON o Helping women & girls raised under the poverty line access safety and education to support gender and racial equality o Help women and children fighting cancer o Help women in uniform by offering service to active, spouses, and veterans transitioning to life outside the uniform.

Our giving partners support causes we are passionate about.

P R E V I O U S G I V I N G PA R T N E R S I N C L U D E

Glam4Good

Project Glimmer

Hollyrod Roundation Every Mother Counts

Bright Pink Dress for Success

Red Cross Disaster Relief

Sunshine Kids Girls Inc. and many more!

Thanks to you, we give year-round! Your purchase directly impacts the lives of women around the world. Join our movement by purchasing today + share why you love giving back on social using #stelladotgives

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How we give

WITH EVERY ORDER To date, we’ve donated more than $9 million in cash and donated products—and we’re just getting started. We believe supporting organizations that help women rise creates a ripple effect that will make a better, more equal world for everyone. o We round up and donate cash from every purchase. o We’re responsive givers—sending either a percent of proceeds or product to organizations that support women and girls. o Every order inherently supports an independent business.

SHOP FOR A CAUSE We donate a portion of proceeds from Shop For A Cause merchandise to support women and children fighting cancer, autism, and more.

GET TOGETHER / GIVE TOGETHER Ambassadors offer virtual or in-person Shop For A Cause Events that can help raise money or product donations for a cause you care about in your community.

We've been giving since day one. But there's so much more to do.

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A COMMUNITY OF OPPORTUNITY

It’s our mission to economically empower women through our Ambassador opportunity. Our Ambassadors collectively support each other, while working towards individual goals and passions.

WE’VE PAID OUT $550 MILLION (AND COUNTING) IN COMMISSIONS TO AMBASSADORS. OUR MODEL MAKES SUCCESS ACCESSIBLE WITH NO RISK AND NO EXPERIENCE. FLEXIBILITY AND FINANCIAL EMPOWERMENT ARE THE HEART OF WHAT WE OFFER.

When women support each other, incredible things happen.

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Join our movement & help women rise.

BECOME AN AMBASSADOR

Share products you're passionate about and earn 20-40%, knowing every order makes a difference.

Get started today for only $59/$69CAD. S T E L L A DOT. CO M / A M B A S S A DO R

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Our 2020 Impact

WITH SUPPORT FROM YOU!

We partnered with No Kid Hungry, HollyRod Foundation, Project Glimmer, Bright Pink, and Glam4Good.

In 2020 we gave back to giving partners that support women and their communities. We’re filled with gratitude for the work that we’ve been able to accomplish together during a year that was extremely challenging.

Here are some of the causes and communities you helped us give back to in 2020:

Healthcare professionals

Racial justice advocacy

Women experiencing homelessness

Families facing food insecurity

Underserved marginalized youth

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Women fighting cancer

$1.1M +

$500K +

In S&D lifetime support for

Donated in product and cash

breast cancer awareness

across our partners in 2020 alone.

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Meeting Future Needs: Our Giving Partners To us, being kind and being of service to others is what it means to be part of the Stella & Dot Family of Brands. We’re so thankful to have you as part of our movement and family. These are just a few of our giving partners—

H O L L Y R O D F O U N D AT I O N is dedicated to providing compassionate care to those living with Autism and Parkinson’s disease. The HollyRod foundation seeks to fill an unmet need by providing compassionate care and services to underserved individuals and families that are burdened financially and emotionally by a diagnosis.

Since 2013, Stella & Dot Family of Brands has donated over $819,000 through this partnership.

G L A M 4 G O O D F O U N D AT I O N is a non-profit organization that uses style and beauty to honor courage, empower self-esteem, ignite joy, and help women and children in need. Glam4Good gives new clothing and personal care essentials to bolster confidence and provide critical aid to everyday heroes and people in need from communities, like-minded organizations, schools, hospitals, and non-profit partners.

S&D donated over $218,000 in 2020.

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NO KID HUNGRY is a national campaign run by Share Our Strength, a nonprofit working to solve problems of hunger and poverty in the United States and around the world. Share Our Strength launched No Kid Hungry in 2010 and is ending childhood hunger through effective programs that provide kids with the food they need.

Stella & Dot Family of Brands donated over $2,800 in 2020.

BRIGHT PINK is a non-profit organization that helps to save lives from breast and ovarian cancer by empowering women to know their risk and manage their health proactively. Bright Pink works to ensure that all women have the information, resources, and tools they need to take charge of their health and get the care they need and deserve— no matter their circumstance. They’re committed to empowering all women on their journeys toward brighter, healthier futures.

Since the beginning of the partnership in 2016, Stella & Dot Family of Brands has donated over $373,000.

PROJECT GLIMMER has partnerships with foster care, homeless, crisis care and youth service organizations for underserved and marginalized youth.

Through Project Glimmer’s Social Supply Chain for Good, meaningful gifts and essential goods are delivered to thousands of young women each year instilling personal confidence.

Stella & Dot Family of Brands is thrilled to work with Project Glimmer fulfilling 50,000 holiday gift requests for women across the country.

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Our Milestone Moments S&D launches the Shop For a Cause capsule Jessica Herrin and Ambassadors participate in the PS 16 Wakefield elementary school makeover in the South Bronx We launched SD Gives, our charitable giving arm, with a simple goal to raise $180,000 in one year by selling 15,000 bracelets in order to benefit buildON, Action USA and Girls Inc. We exceed all expectations with a donation over $300,000.

with buildOn designing empowering and motivational murals to grace the walls of PS 16’s auditorium and cafeteria, and outdoor

collection of signature accessories to support National Autism Awareness Month. 20% of retail sales from the capsule benefit HollyRod Foundation.

benches were construct-

Jessica Herrin is

ed to add seating to the

honored at The

school’s playground.

HollyRod Foundation’s 17th Annual

Foundation gives back by building two schools in Nicaragua with

The Stella & Dot Foundation reaches a huge milestone and gives over $500,000 in donations. In honor of

Stella & Dot was honored by the Queen of England at Buckingham Palace, on behalf

its charity partner

the occasion, Jessica

of all of our

buildOn and

Herrin rang the closing

Ambassadors

funding 3 after-

bell for NASDAQ with

who raised over

school programs.

leading Ambassadors.

£10,000 for The Queen Elizabeth Diamond Jubilee

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the movement to end avoidable blindness.

2013

2012

2011

2010

2010

Trust supporting

DesignCare Gala with the 2015 HollyRod Corporate Compassion Award for having raised over $273k since the partnership began, supporting HollyRod opening 7 RJ’s Places, and attending two ribbon cuttings at RJ’s Places in Phoenix and Santa Clara.

2015

The Stella & Dot

Home Office staff and Ambassadors traveled with Every Mother Counts

With the launch of We

founder, Christy Turlington Burns, to

anniversary. They witnessed firsthand the challenges women face trying to access quality maternity care in Haiti.

Began partnership with Bright Pink, an organization focused on prevention and early detection of breast and ovarian cancer in young women. To date, Stella & Dot has donated $373k to Bright Pink.

small actions add up to big

with a $100,000 cash donation to help provide 2,000 women with professional attire and personalized job search support to secure employment.

Stella & Dot is proud

Stella & Dot

$233,000 in product

Family of Brands

to Dress For Success

hits a huge milestone and pays out over

impact. Every order is roundStella & Dot hits over $1.1MM in lifetime support for breast cancer awareness. Over $500,000 is do-

ed up and S&D donates product or much needed funds towards creating positive change in the lives of women and their families through our giving partners.

nated in product and cash across our

To date, Stella & Dot has

partners in 2020

donated $9 million in cash

alone. Partners

and products and $550M

include HollyRod

(and counting) has been

Foundation, No

paid in commissions to our

Kid Hungry, Bright

Ambassadors.

Pink Foundation,

$500 million

Dress for Success,

(and counting)

and GLAM4GOOD

in commissions

2021 Foundation.

to Ambassadors through our flexible model where financial empowerment is at the heart

2019

of what we offer.

2018

raise the bar on ways that

Dress for Success

to have donated over

2016

Stella & Dot continues to

partnership with

2021

for Haiti as they celebrated their 10th

Give with Every Purchase

S&D launches its

2020

Haiti to visit their partner, Midwives

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Social Responsibility Integrity is always in style We all have this in common: A responsibility to the generations to come. We care deeply about the impact our business has on the environment and people’s lives.

We work only with partners who share our values for social responsibility.

WHEN YOU SHOP WITH US, YOU CAN BE SURE o Every product is ethically made o All packaging and printed marketing materials are made from recycled materials o Our beauty products are cruelty-free and Leaping Bunny certified

W H AT W E VA L U E o We comply with local laws regarding the minimum age of employees o We do not use any type of involuntary or forced labor, including indentured, bonded, prison or slave labor o We treat all workers with respect and dignity o Base employment is on an individual’s ability to do the job, not on personal characteristics or beliefs o We treat women workers equally in all aspects of employment o We comply with all local environmental laws applicable to their operations o We provide workers a clean, safe, and healthy work environment o We comply with the California Transparency in Supply Chains Act

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Staying planet-minded

F O R E S T S T E WA R D S H I P CO U N C I L C E R T I F I E D More than 90% of our paper packaging is certified by the Forest Stewardship Council (FSC). The FSC certifies that paper and wood are sourced in an environmentally sound, socially responsible, and economically viable manner.

M O R E W I N S TO TA L L Y U P o Reduced waste packing materials by eliminating stuffing paper and cardboard inner layer sheets from select inbound shipments o We use glass bottles for many of our beauty products—easy to recycle, beautiful to reuse

150 +

1M +

T R E E S S AV E D A N N UA L L Y

POUNDS OF CARDBOARD

by eliminating printed packing lists

waste saved annually with use

and reducing packaging

of poly jacket mailers

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Confidence in (and from!) our product EVER CLEANICAL SKINCARE It’s not enough to have a beautiful product if you can’t be proud of where it came from or what it’s made of.

We use only quality, ethically made materials and clean ingredients in our skincare and beauty products and adhere to every state and federal law, industry standard, code, and regulation. So you can be proud to wear it and proud to share it. o We adhere to strict European formulating standards for beauty and go above and beyond them for safety, sustainability, and performance. o EVER takes the safety of the environment and animals very seriously. None of our products or ingredients are tested on animals at any stage in the product development process, nor do we ask our contract manufacturers to conduct animal testing. o EVER never uses any synthetic fragrance; all products are scented with essential oils or plant extracts.

PA R A BEN F R E E

N ATUR A L

HYPOA LLERGENIC

F R AG R A N C E O N L Y

STELLA & DOT AND KEEP COLLECTIVE JEWELRY AND ACCESSORIES o Lead & nickel safe o Hypoallergenic o Ethically produced

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DERMATOLOGIST T EST ED

GLUT EN FR E E

C L E A N I C A L™ S K I N C A R E

YOU T HF U L Q UAT TRO PEPTIDE FACE & E Y E S E R UM

“Facelift in a bottle.”

OUR BESTSELLER 2 0 % Q U AT T R O PEPTIDE SERUM

1 0 % V I TA M I N C BOOSTER I N S TA N T G L O W

Brightens, reduces appearance of fine lines, wrinkles and age spots.

Protects from UV A/B and blue light damage.

CLEAN INGREDIENTS

CLINICAL RESULTS

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OUR PURPOSE

WE HELP WOMEN RISE WE’RE COMMITTED TO: GIVING WITH EVERY ORDER CONFIDENCE IN OUR PRODUCT SOCIAL RESPONSIBILITY A COMMUNITY OF OPPORTUNITY

We empower women to make their own choices, run their own businesses, and live life on their own terms.

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STELLA & DOT FAMILY OF BRANDS

Code of Conduct

Our Code outlines what we view as important in terms of Social Responsibility and it highlights some of the key standards that we expect of our partners to meet or exceed. In addition to our review, we expect our partners to have comprehensive and effective management systems and policies in place that enable them to monitor and measure their own compliance with our Code.

A G E V E R I F I C AT I O N

deny workers their rights and dignity. Corporal punishment and

No person shall be employed at an age younger than 15 or

physical coercion must not be used. Partners must not engage in

younger than the age for completing compulsory education in

or tolerate sexual harassment, indecent or threatening gestures,

the country of manufacture where such age is higher than 15.

abusive tone or language and undesired physical contact.

FORCED LABOR

D I S C R I M I N AT I O N

All forms of forced, prison, compulsory or bonded labor, including

Stella & Dot recognizes that cultural differences exist and differ-

prison labor, will not be tolerated by Stella & Dot. Partners shall

ent standards apply in various countries; however, we believe that

maintain employment on a voluntary basis. Stella & Dot will not

all terms and conditions of employment should be based on

accept products from Partners who utilize in any manner forced

an individual’s ability to do the job, not on the basis of personal

labor in the manufacture or in their contracting, subcontracting

characteristics or beliefs. Stella & Dot expects Partners to have a

or other relationships for the manufacture of their products.

social and political commitment not to discriminate against their

DISCIPLINE, HARASSMENT OR ABUSE Partners will provide a work environment free of harassment,

employees in hiring practices or any other term or condition of work, on the basis of race, color, national origin, gender, religion, disability, or other similar factors.

abuse or corporal punishment in any form. Partners may not

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F R E E D O M O F A S S O C I AT I O N &

period. Overtime shall be voluntary. We will not use Partners who,

COLLECTIVE BARGAINING

on a regularly scheduled basis, require employees to work in ex-

Partners must respect the rights of employees to exercise their

cess of the statutory requirements without proper compensation

lawful rights of free association and collective bargaining, and to

as required by applicable law. Employees should be permitted

join or not join the organization of their choice, without penal-

reasonable days off, breaks, lunch periods, and bathroom breaks.

ty or interference. In countries where freedom of association is prohibited, decided by the State, or limited (i.e. free trade zones),

C O M P E N S AT I O N & B E N E F I T S

Partners should facilitate parallel means of independent and free

Partners shall fairly compensate their employees by providing

association and bargaining for all workers. Workers’ represen-

wages and benefits, which are in compliance with the national

tatives shall not be the subject of discrimination and shall have

laws of the countries in which they are doing business or which

access to all workplaces necessary to carry out their representa-

are consistent with the prevailing local standards in the countries

tion functions.

in which they are doing business, if the prevailing local standards are higher. Deductions from wages as a disciplinary measure shall

WOMEN’S ISSUES

not be permitted. Partners shall only use subcontractors who

All Partners will ensure that workers who are women receive

comply with this standard, if applicable.

equal treatment in all aspects of employment. Pregnancy tests will not be a condition of employment or continuation thereof

HEALTH & SAFETY

and pregnancy testing, to the extent it is provided, will be volun-

Stella & Dot maintains a safe, clean, healthy and productive

tary and at the option of the worker. Workers will not be exposed

environment for its employees and expects the same from its

to hazards that may endanger their reproductive health and

Partners. Partners shall furnish employees with safe and healthy

Business Partners will not force workers to use contraception.

working conditions. Partners working on Stella & Dot merchandise shall provide adequate medical facilities, fire exits and safety

HOURS OF LABOR

equipment, well-‐lighted and comfortable workstations, clean re-

Partners shall maintain reasonable employee work hours in

strooms, and adequate living quarters where necessary. Workers

compliance with local standards and applicable national laws

should be adequately trained to perform their jobs safely.

of the countries in which the Partners are doing business. In any

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event, except in extraordinary business circumstances, employees

CONCERN FOR THE ENVIRONMENT

will not work in excess of 60 hours per week, including overtime.

Stella & Dot will favor Partners who take a progressive approach

Workers shall be provided with at least one day off for every 7 day

to minimize negative impacts on the environment. Partners shall

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have written environmental policies and standards and must

the employment of Homeworkers if the Partner obtains autho-

comply with environmental laws, regulations and standards

rization from Stella & Dot and agrees to abide by our Homework

applicable to their industry. Stella & Dot encourages our Partners

Guidelines and requirements.

to reduce excess packaging and to use recycled and non-‐toxic materials whenever possible.

T R A N S PA R E N C Y Stella & Dot is committed to working with Partners who are open

SUBCONTRACTING

and honest with us. Stella & Dot Partners shall maintain complete

Partners that wish to outsource or subcontract work on Stella

and accurate records and information so that compliance can be

& Dot products must obtain prior authorization for outsourc-

effectively assessed. Partners must not falsify or understate any

ing or subcontracting from Stella & Dot. Complete information

aspects of their operations to Stella & Dot or our representatives.

about the subcontractor should be provided in a timely manner.

Partners must not coach employees on how to answer questions

Subcontractors are expected to comply with the Stella & Dot

or respond to inquiries by Stella & Dot or our representatives.

Standards.

MONITORING & COMPLIANCE

HOMEWORK

Stella & Dot will undertake affirmative measures such as unan-

Homeworking is an important aspect of the world economy. In

nounced on-‐site inspections of Partner premises and produc-

developing countries as many as 300 million people, more than

tion facilities, to monitor compliance with this Code of Conduct.

half of them women, do paid work at home, making a significant

Partners must maintain on site all documentation necessary to

contribution to household incomes among predominantly poor

demonstrate compliance with this Code of Conduct. Partners

families. The lack of visibility of homeworkers in supply chains,

must allow Stella & Dot associates and/or its third party monitor-

combined with their complicated employment status in many

ing firm’s full access to premises and production facilities, worker

countries, has made them a vulnerable group of workers. We be-

records and workers for confidential interviews in connection

lieve that one of the first steps towards reducing the vulnerability

with monitoring visits.

of these workers is to take an open and positive position towards homeworking. By reacting negatively to instances of homeworkers in our supply chain, there is a danger of sending homeworkers underground and thus preventing any progress on improving their labor conditions, or unintentionally causing workers to lose their sole means of income. Therefore Stella & Dot does allow for

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It starts with YOU. When you order, we round up the total and donate products or funds based on the needs of our giving partners. Thanks to you, we support giving partners that focus on the health, financial, and emotional wellbeing of women and children.

L E A R N M O R E AT S T E L L A DOT. CO M / O U R P U R P O S E

© 2020 STELLA & DOT LLC