2008 CORPORATE RESPONSIBILITY REPORT 2 2008 CORPORATE RESPONSIBILITY REPORT Table of Contents Message from Our CEO .........................................5 Product Safety .................................................34 Food Safety ......................................................36 Overview of The Walt Disney Company ...............7 Labor Standards ..............................................36 Media Networks .................................................8 Parks and Resorts .............................................8 Experiences .........................................................36 Studio Entertainment .........................................8 Park Safety .......................................................37 Consumer Products ...........................................8 Accessibility at Disney Parks ...........................37 Interactive Media ..............................................8 Environment ..........................................................39 Governance ...........................................................9 Legacy of Action .................................................40 Public Policy ......................................................9 Environmental Policy ...........................................41 Corporate Responsibility .....................................10 Key Focus Areas ..............................................41 Our Vision.........................................................10 Our Commitments ...............................................42 Corporate Responsibility Governance .............10 Climate and Energy ..........................................43 Business Integration ........................................11 Waste ...............................................................46 Stakeholder Engagement ....................................12 Ecosystems ......................................................47 Recent Engagements .......................................12 Water ................................................................48 Going Forward .................................................13 Products...........................................................48 Education and Action .......................................49 Children & Family..................................................15 Forward-Looking Initiatives .................................51 What We Believe .................................................16 Encouraging Positive Development ....................17 Strategy Development .....................................52 Programming ...................................................17 The Green Standard .........................................52 Diversity ...........................................................18 Youth Engagement ...........................................52 Kids’ Health and Nutrition ................................18 Disneynature ....................................................52 Making Content for Kids of All Ages ...................20 Community ............................................................53 Standards and Practices .................................20 Responsibility and Impact ...................................54 Content ............................................................21 Economic Impact .............................................54 Partnering with Parents .......................................22 Community Outreach and Collaboration .........55 Virtual Worlds: Club Penguin ...........................22 Corporate Giving .................................................55 Family Vacations ..............................................23 Cash Donations ...............................................55 Marketing Practices .........................................23 Product Donations ...........................................56 Creating Safe Environments................................25 Other In-Kind Donations ..................................56 Online Safety for Kids ......................................25 2008 Corporate Highlights ...............................56 Employee Volunteerism and Giving ....................59 Content & Products ..............................................27 Disney VoluntEARS ..........................................59 Our Reach ...........................................................28 Developing Our Approach ...................................28 Cast Member and Employee Fundraising Content ...............................................................29 and Donations ..................................................60 Content Standards ...........................................29 2008 Employee Highlights ...............................61 Journalistic Integrity .........................................29 Program Evolution ...............................................62 Diversity in Content ..........................................30 Workplaces ...........................................................63 Localized Content ............................................31 Disney Operations ...............................................64 Smoking in Films ..............................................33 Working at Disney ............................................65 Products ..............................................................33 Training and Development ...............................67 Supply Chain ....................................................34 Diversity ...........................................................68 3 2008 CORPORATE RESPONSIBILITY REPORT Table of Contents Occupational Health and Safety ......................70 Supplier Diversity .............................................71 Labor Standards in Licensing and Product Sourcing .................................................73 Working with Licensees and Vendors ..............74 Code of Conduct .............................................75 Influence ..........................................................75 Focus Areas .....................................................77 Performance ....................................................84 Looking Ahead ......................................................89 Comprehensive Corporate Responsibility Strategy ....................................90 Scorecarding and Accountability .....................90 Greater Stakeholder Engagement ...................90 About this Report .................................................91 Report Framework ..............................................92 Scope and Structure ........................................92 Segment and Site Reporting ............................92 Focus Areas ........................................................93 Data and Assurance ............................................93 A Note on Vocabulary .........................................93 GRI Index ...............................................................95 4 2008 CORPORATE RESPONSIBILITY REPORT MESSAGE FROM OUR CEO Dear Stakeholders, Over its 85-year history, The Walt Disney Company has brought great stories, characters and experiences to children and families the world over while endeavoring to be an organization that people want to invest in, work for, live near and do business with. While there’s always room for improvement, we seek to be a good corporate citizen and hope to be as admired for the way we do business as for the quality of the family entertainment we create. There are good reasons for doing so. A strong commitment to corporate responsibility makes our brands and products more attractive. It strengthens our bonds with consumers. It makes our Company a more desirable place to work. And it builds goodwill in the communities in which we operate. All of this adds shareholder value. There is something deeper too. Many years ago, Walt Disney spoke of the “awesome responsibility” he felt as a “shaper of the world of tomorrow.” Children and families are at the heart of so much of what we do at Disney, which is why setting positive examples through the entertainment and experiences we produce is critical to our business approach. Disney has a wonderful legacy of charitable giving, of volunteerism and of environmental stewardship. We have long been a major supporter of children’s hospitals and wish-granting organizations around the world. We just celebrated the 25th anniversary of our VoluntEARS program, through which our Cast Members and employees have donated more than 5 million hours to the betterment of their communities. And, for over a decade, our Disney Worldwide Conservation Fund has supported habitat preservation and efforts to save endangered species. Our approach to corporate responsibility extends beyond philanthropy. Two years ago, we decided to associate our brands and characters with a range of healthy food items, an initiative that has been received enthusiastically by our Guests and consumers. Families appreciated that we had their best interests at heart while the creation of a promising new business helps promote shareholder value. In this report, we have set out to provide greater detail and insight into how we approach crucial corporate responsibility issues. As I’ve noted, many of our programs and policies in these areas are longstanding and have already resulted in substantial benefits. But the report is set against the backdrop of substantial change in the way we view corporate responsibility and amid a push to integrate our many efforts across all businesses and around the world. At Disney, we produce all kinds of creative