nordstrom csr report
DESCRIPTION
Report on Nordstrom's Corporate Social Responsibility InitiativesTRANSCRIPT
2011 CSR Report
Leaving it Better 05
Caring for Our People 11
Supporting Communities 15
Sustaining the Environment 29
Protecting Human Rights 41
table of
CONTENTS
2011 NORDSTROM CSR REPORT | | 07
We started to experience positive momentum during the
second half of 2009, which continued during the first half of
2010. This was a result of our ongoing efforts in the areas
of multi-channel execution, merchandising and inventory
management, new store and other growth opportunities
and, most importantly, improving customer service. During
the third quarter of 2010, these positive trends continued
to favorably impact our business, as we marked thirteen
consecutive months of total company same-store sales
increases, with accelerating sales growth on a two-year
basis, and five consecutive quarters of earnings improvement.
We strive to offer an outstanding customer experience,
regardless of channel, with compelling fashion merchandise
and high quality customer experience. This effort has con-
tributed to our recent performance, including sales growth
and gross margin expansion. By managing our inventories
effectively and flowing new merchandise into our stores
more quickly, we have been able to improve regular priced
sales, gross profit and inventory turnover. Our multi-channel
capabilities allow us to better serve our customers by offer-
ing greater access to our inventory and enabling them to
shop with us however and whenever they choose. We are
continuing to invest in these capabilities as part of our com-
mitment to improving the customer experience.
Our strong financial position enables us to continue to
invest in our business through store growth and remodels,
technology, merchandising systems and other opportuni-
ties. During the nine months ended October 30, 2010, we
opened three full-line stores and sixteen Nordstrom Rack
stores, and relocated one full-line store and one Nordstrom
Rack store. We have been encouraged by the results from
our store openings thus far this year. We are also working
to improve the online and multi-channel shopping experi-
ence by investing in areas such as online marketing, social
media, a web site redesign and updated merchandise allo-
cation and assortment systems in order to evolve with our
customers’ changing needs.
Our credit business continues to improve. Customer pay-
ment rates have returned to pre-recession levels, resulting
in improved delinquency and write-off trends. These bene-
fits have been partially offset by lower than planned finance
charge revenue. We continue to open accounts with high
credit quality.
While we remained focused on growing our business, we
believe there is still uncertainty in the current economic
environment and we do not anticipate any meaningful
change in overall consumer spending over the near term.
We expect to take advantage of opportunities to continue
to improve our execution and gain market share, as a
result of our customer-focused strategy, ongoing efforts
to improve service, compelling fashion merchandise and
financial flexibility.
Sincerely,
Blake W. Nordstrom
President, Nordstrom, Inc.
from the
CEO’SNOTE
08 | |
We’ve always followed a simple philosophy when it comes
to running our business: Leave it better than you found it.
This also describes Nordstrom’s commitment to social
responsibility. Since our early days, we’ve focused on doing
the right thing for our employees and our customers. We
continue to make every effort to be an ethical company
where people want to work and shop. We’re working to
leave it better than we found it.
Our Culture
Just as we always strive to offer our customers the best
possible service and products, we also make every effort
to run an ethical business where people want to work and
shop. We’ve made this a priority since we began as a sin-
gle shoe store in Seattle and continue to do so today.
Our employees and customers have told us that they expect
Nordstrom to be the type of company that incorporates social
responsibility across all aspects of our business. Therefore,
we work hard to reduce our environmental impact, contrib-
ute to the communities we serve, and provide opportunities
and support for our employees. Our commitment to run-
ning a socially and environmentally responsible company is
something we take pride in ensuring every day through our
actions and philosophy.
Our Strategy
Making ethical business decisions that benefit our staff,
customers and communities is something we’ve done for a
long time. For example, we’ve been working with United
Way for nearly 60 years, and we began our profit-sharing
program with employees in 1952. We’ve also been recycling
corrugated cardboard, office paper, mixed paper, metals,
lamps, and pallets/wood in our Distribution and Fulfillment
Centers since 1999.
In the past, our various efforts were not organized under a
single program. Instead, we simply tried to do the right thing,
relying on our great employees to make choices that would
support our social responsibility efforts. And though that
worked for us and produced some good results, we realized
that we needed to focus our efforts and develop a more stra-
tegic approach. In 2007, we began the process of speaking
with employees and customers to learn more about what
matters most to them when it comes to social responsibility.
Based on their input, we brought together a group of leaders
from all areas of our business to help build a comprehensive
strategy. We decided to narrow our focus to four key areas
as they pertain to our business. We call them our “pillars”:
Supporting Communities, Sustaining the Environment, Pro-
tecting Human Rights, and Caring for Our People.
Making ethical business decisions that benefit our customers, employees, and communities is something we’ve done for a long time.
nordstrom’s
SOCIALEFFORTS
2011 NORDSTROM CSR REPORT | | 09
Since then, we’ve broadened our efforts to develop innovative
programs around recycling, packaging reduction and sus-
tainable products, just to name a few. We’ve worked with
fantastic vendors who support social and environmental
initiatives, and we have empowered our employees to turn
their ideas for doing great things to reduce our environmen-
tal footprint or support the community into realities. We’ve
made great progress—but we know we still have much
more to do.
Our Efforts
With our efforts concentrated on our four social responsi-
bility pillars, we have created a number of programs and
initiatives that are currently in place or part of our future
plans. As we look ahead, we still have much we hope to
accomplish. We plan to continue working with our employ-
ees to turn their great ideas into positive change, while
also looking for ways to develop new products so we can
provide our customers with sustainable options. We will
seek out more opportunities to help communities around
the world and partner with organizations and vendors who
share that commitment. And we will continue to look for
innovative ways to reduce our environmental footprint.
We also believe that being transparent—sharing both our
successes and our opportunities—is an important part of
telling our continuing social responsibility story. That is why
each year we set goals (an important part of every aspect
of our business) within our four social responsibility pillar
areas and report on the progress we’ve made toward each
of them. Of course, we always hope that we’ll accomplish
what we’ve set out to do, but we also realize that we’re not
perfect. Through reporting what we’ve learned over the
years, we will hold ourselves accountable for our actions
and determine ways to make improvements into the future.
12 | |
Diversity Commitment
We value the richness that diversity brings to our workforce
—it makes our company better and the communities we
serve stronger. We are proud of our efforts to maintain
a workforce that represents many backgrounds, and are
deeply committed to cultivating an environment where the
contributions of every employee, customer and vendor
are respected. We believe each of our employees has the
opportunity to realize their potential and contribute to the
success of our company. This commitment is reinforced by
our ongoing efforts in the areas of employment and promo-
tion, training, marketing and advertising, as well as through
our community relations and Supplier Diversity Program.
Wellness Program
We believe that no matter what the season, staying focused
on three basics—what we eat, what we do and how we
live—gives us all a better sense of balance. The Nordstrom
Wellness Program helps our employees put those elements
front and center. The goal is simple: support our people
in making smart decisions and positive changes about
their well-being. Through on-site health screenings, online
resources, coaching support and fun events in our stores,
we strive to provide an environment that supports and inspires
our employees to live a healthy life. We also have Wellness
Ambassadors: employees with a passion for wellness who
volunteer to promote the program among their coworkers.
We know that gaining new friends and having fun makes it
even easier to adopt good habits and build healthy behav-
iors year after year.
Nordstrom Cares Heroes
At Nordstrom, our people are our greatest asset; without
their support we wouldn’t be able to make progress in our
social responsibility goals. Our employees are at the heart
of our efforts and are helping us make a positive difference
across our company and in the world around us.
Nordstrom Cares Heroes highlights those employees who
have taken initiative to identify and come forward with oppor-
tunities to help create positive change. Their ideas and efforts
span many stores and regions. They range from finding ways
to become more environmentally conscientious within our
store operations to helping support and make a difference
in the neighborhoods that support us.
Any Nordstrom employee can become a Nordstrom Cares
Hero, and we look forward to sharing our people’s stories,
creative thinking and more about what they’re contributing
to our social responsibility program.
Our people are our greatest asset, and we believe social responsibility includes a commitment to creating a workplace that offers great benefits, fosters growth, and upholds diversity.
we have the
GREATESTEMPLOYEES
2011 NORDSTROM CSR REPORT | | 13
NORDSTROM EMPlOyMENT DIvERSIT y STATISTICS
Total Employees
% Female Employees
% Employees of Ethnic Minority
Managerial Staff
Board of Directors
16 | |
Nordstrom Scholarship Program
Nordstrom is committed to the communities where we do
business. Helping students achieve their dreams of higher
education is a meaningful way for us to show that com-
mitment. Since 1994, we’ve selected hard-working high
school students to receive $10,000 college scholarships.
Today, with educational funding becoming an even greater
challenge than ever, we have expanded our scholarship
program and are pleased to help 80 outstanding students
across the country take the next step toward achieving
their goals.
To qualify for the Nordstrom Scholarship, applicants must
be in their junior year of high school with a minimum grade-
point average of 2.7. Each applicantmust submit an essay
on one of three topics, along with a personal statement, finan-
cial information, a list of community activities and a certified
transcript from their school. Finalists are then forwarded to
a selection committee of local business leaders, community
partners, and representatives from Nordstrom, who help
select the winners.
Giving back to the diverse communities where we do business is inherent to our culture. We believe it’s the right thing to do—we simply support those who support us.
we proudly
ENCOURAGEEDUCATION
In 2011, students in the 28 states where Nordstrom cur-
rently has an operating full-line store will be eligible to apply
for a Nordstrom Scholarship. Eighty scholarships will be
awarded. Each scholarship will be paid out in equal install-
ments of $2,500 over four years to the selected student’s
college of choice.
2011 NORDSTROM CSR REPORT | | 17
Linda Chen
Mill Creek High School
Metropolitan Atlanta
“When I walked into my principal’s office Monday morning
and saw all those I loved there, I was moved beyond compre-
hension. I do not think I will ever forget my mother’s smiling
face and my father’s tears as I embraced them both. Thank
you so much for this incredible opportunity and know that
the scholarship money will not be wasted. I hope to share
with others the fortunes I have received in life. I cannot say
this enough: thank you.”
Esther Owolabi
Fenwich High School
Illinois
“I really don’t know what to say! Thank you, once again, for
this amazing opportunity. I got home and saw the check
again and started crying. Haha! This has been such a bless-
ing and I’m truly honored, and still a little shocked! Thank
you and thanks to the entire Nordstrom Corporation for such
a wonderful scholarship program.”
Thomas Wilson
Pope John XXIII High School
New Jersey
“I cannot thank you enough for the Nordstrom Scholarship
Program. By your generosity, you have eased the tremen-
dous burden of having our family handle the expense of a
college education. This incredible gift allows me to fulfill the
chance of a lifetime, giving me the opportunity to improve
myself and become an asset to my community, which I could
not have realized without your kindness.”
2010 NORDSTROM SCHOl ARSHIP WINNERS
18 | |
Nordstrom has been a strong supporter of the United Way
for almost six decades. In addition to donations and vol-
unteerism on behalf of our employees, our corporate gift
to United Way is the single largest contribution we make to
one organization or group of organizations.
Our United Way History
Our relationship with the United Way began nearly 60 years
ago, when Nordstrom was a small business with just a few
shoe stores and the United Way was known as “Commu-
nity Chest” in Washington State’s King County. We became
involved with the organization because we believed it
offered our employees the best opportunity to give their
hard-earned dollars and know that, as a team, they could
make a difference.
Today we continue to support the United Way because we
believe it impacts our communities in ways no single agency,
individual, or government program can. Dollar for dollar, the
United Way does one of the best jobs of making sure our
contributions are used to maximum benefit. It has evolved
into an organization focused on solving complex social prob-
lems by directing resources to individual communities.
Day of Caring
Company-wide, our stores and headquarter employees also
participate in the United Way’s Day of Caring, a day dedi-
cated to local service activities designed to help community
organizations in need.
In 2010, Nordstrom and nearly three-quarters of its employees, donated more than $4.4 million to local United Way campaigns across the country.
we annually
DONATE TOCHARITIES
2011 NORDSTROM CSR REPORT | | 19
20 | |
2011 NORDSTROM CSR REPORT | | 21
vOLUNTEEriNg
Each year, Nordstrom employees
volunteer their time and effort for
United Way’s Day of Caring.
22 | |
2011 NORDSTROM CSR REPORT | | 23
NONPrOfiTS
Each year we donate millions of dollars
to nonprofits across the country. This
map shows the number of non profits
we suport by state.
30+ Nonprofits
10-19 Nonprofits
20-29 Nonprofits
1-9 Nonprofits
24 | |
We recognize that a meaningful social responsibility pro-
gram includes initiatives that ensure the well-being of the
factory workers who craft our products. By empowering
these workers with the knowledge and skills to make
informed decisions about their health, careers, and work
environments, we do our best to strengthen the communi-
ties from which our products and materials are sourced. Our
partnerships with industry organizations, service providers,
and other retailers also help make a positive, sustainable
impact through a variety of innovative programs.
Worker Empowerment
HERproject
In coordination with Business for Social Responsibility
(BSR), we provide funding for HERproject (Health Enables
Returns), a program that educates factory workers on gen-
eral and reproductive health issues, with a focus on HIv/
AIDS prevention in China. HERproject participants have
shown significant improvements in their knowledge of HIv/
AIDS infection and prevention.
Factory Worker Professional Development
Factory Worker Professional Development acknowledges
the evolution of the Chinese labor force. The program bridges
HERPROJECT: IMPROvED HIv/AIDS PREvENTION
82% of women who participated in HerProject said they attained enough knowledge to protect themselves against infection
99% of women who participated in HerProject said they will share what they learned with others
“We want to have a positive impact on workers’ lives that extends beyond the four walls of the factory.”
— Laura Hodgson, Nordstrom Social Responsibility
the gap between factory workers seeking enhanced career
skills—but without access to relevant training—and manag-
ers who wish to attract and retain skilled employees—but
whose primary focus is on survival in the ultra-competitive
business environment.
working to
IMPROVELIVES
2011 NORDSTROM CSR REPORT | | 25
Canteen Project
Over time, we have observed that many complaints from
factory workers relate in some way to their factory’s can-
teen operation. The Canteen Project gives workers a voice
in the selection and preparation of their food, provides edu-
cation on nutrition, and introduces the concept of increased
worker participation in factory administration.
Verité Van Training
Nordstrom partners with verité, an independent auditing,
training and research organization, to raise awareness on
the practical concerns of big-city living for young factory
workers from rural hometowns. We’ve facilitated mobile
training sessions with verité to provide workers in China
and India basic education on life skills, women’s health, HIv/
AIDS, and sexual harassment. The training ensures that
workers acquire skills to help them in their everyday lives
while improving factory morale.
Highlighting factory workers’ role
Human Connection
From concept to sale, we recognize that many hands touch
our products. The Human Connection is an initiative that
highlights the critical role factory workers play in the devel-
opment of our products. Through visual media, this initiative
makes a positive connection between each factory worker’s
efforts and a consumer across the globe who ultimatelyfeels
beautiful as a result of that hard work.
Helping farmers grow sustainable fibers
Textile Exchange
Our support of organic cotton organizations is part of our
goal to increase the percentage of organic cotton used in
our private-label merchandise and available for use by our
branded vendors. We are currently partnering with the Tex-
tile Exchange (formerly Organic Exchange) to aid farmers in
Africa who grow organic cotton.
The Textile Exchange is a non-profit organization committed
to expanding the global market for sustainable fibers—with a
core focus on organic cotton. Part of the Textile Exchange’s—
and our—long-term goal is to reduce the negative impact of
textile production on people and the environment.
26 | |
Since our Supplier Diversity Program began in 1989, we have
formed hundreds of partnerships with different minority-
and women-owned businesses that provide merchandise,
supplies, services and construction to Nordstrom and have
purchased more than $9 billion worth of products and ser-
vices from those businesses.
Nordstrom in Your City
One important indicator of success for Nordstrom is how
well we reflect the communities we serve. Recognizing that
diversity is vital to our business, we launched our Supplier
Diversity Program in 1989. This program actively promotes
Nordstrom to qualified businesses that might not other-
wise have considered Nordstrom as a potential client.
In each of the relationships with our thousands of business
partners worldwide, we see the potential for success. Our
business decisions are focused toward the future, yet still
based on John W. Nordstrom’s founding philosophy: Offer
the customer the best possible service, selection, quality
and value.
Building relationships
The Nordstrom Supplier Diversity Program recruits vendors
from a wide range of businesses including merchandise,
supplies and services, and construction. Merchandise is, of
course, highly competitive and managed by buyers in their
particular department. Supplies and services make up the
day-to-day support needs that help create a comfortable
and inviting shopping experience for our customers. Each
of these specialized areas offers us numerous opportuni-
ties to partner with vendors within your community.
For construction vendors, our initial outreach into a commu-
nity is the Project Preview. These represent the first steps in
our diversity program and are conducted about one year
prior to the opening of a new store or the remodel of an
existing store. This is an open invitation for all minority and
women construction vendors and subcontractors to meet
our general contractor and representatives from Nordstrom.
Nordstrom and You
We’ve found that our Supplier Diversity Program helps form
community contacts with a wide range of business and civic
leaders. Our hope is that the resulting opportunities will not
only benefit Nordstrom and its business partners, but aid in
boosting the economic vitality of the communities we serve.
We launched our Supplier Diversity Program more than 20 years ago to help attract qualified women-and minority-owned vendors who might not otherwise consider Nordstrom.
actively promoting
SUPPLIERDIVERSITY
2011 NORDSTROM CSR REPORT | | 27
1998
0
100
200
300
400
500
700
600
1999 2000
ANNUAL TOTAL PER YE AR
TO
TA
L E
XP
EN
DIT
UR
ES
(IN
HU
ND
RE
D M
ILL
ION
S)
2001 2002 2003 2004 2005 2006 2007 2008
SUPPlIER DIvERIST y PROGRAM TOTAl EXPENDITURES
30 | |
Catalog
We strive to deliver catalogs to our customers that highlight
great fashion and trends, while also doing our best to con-
sider the environmental impacts producing catalogs can
have. Today, all the catalog paper we purchase is certified by
the Forest Stewardship Council (FSC), recognized for setting
responsible forestry environmental standards. Nordstrom is
a leader in this category, setting a standard for all catalog
paper to be FSC-certified with a goal of 30% PCW content.
Energy and Water
Energy efficiency and water conservation are key areas of
focus for us. We’ve reduced our per-square-foot energy use
by 4.1% during the past year alone and our goal is to continue
decreasing energy demand across our operations over the
next five years. Water use at Nordstrom has also dropped due
to our successful conservation efforts. Some of the tools and
methods we’re using are included below.
Responsible Water Use
We believe responsible water use applies to conserving water
and protecting water quality. At Nordstrom, water conser-
vation means careful watering practices in our landscaping,
and regulated flow toilets and waterless urinals in our newer
facilities and stores.
Paper and Packaging
When it comes to protecting forests, our goal is to imple-
ment paper-use solutions that conserve forest resources,
maintain our quality standards and continue to meet our
business goals. We’re making great progress. Between 2006
and 2007, we decreased our use of office paper by seven
tons. Mailings from Nordstrom stores dropped by 74 tons,
and catalog paper requirements alone fell by 145.5 tons
due to smarter and more focused mailings.
PAPER PRODUCTS USAGE
3.018
39% 46% 48%
3.3303.146
2009GOAL
2010GOAL
2009RESULTS
Tonnage of Packaging per $1 Mill ion of Sales
Percent of Recycled content
We realize that virtually every aspect of our business affects the environment, and that’s why we are committed to reducing or eliminating those impacts wherever possible
conserving the
EARTH’SRESOURCES
2011 NORDSTROM CSR REPORT | | 31
Lighting Upgrades
Our energy use has dropped significantly over the past two
years due to lighting upgrades. We’ve installed newer, more
efficient technologies that conserve energy and provide
higher-quality lighting. Through a combination of new occu-
pancy sensors and enhanced lighting fixtures, we decreased
electrical usage by an estimated 3.2 million kilowatt hours
in 2009.
Heating, Cooling and Other Systems
We pilot energy-efficient heating, cooling and other systems
designed to reduce energy. For example, at our Ala Moana
store in Honolulu we installed an air conditioning system
that cools the store in the daytime by using stored ice,
without running the mechanical cooling element. In Hawaii—
where energy costs are often some of the highest in the
nation—Nordstrom is committed to being a responsible
community partner by not pulling electricity off the grid dur-
ing peak demand daytime hours.
Our Carbon footprint
Getting merchandise from our distribution centers to our
stores and customers is critical. We believe product delivery
can occur efficiently and on schedule while simultaneously
reducing our carbon footprint, and we have several initia-
tives in place to help. One example is speedometer controls
on delivery trucks to improve fuel mileage as merchandise
is moved from our distribution centers to Nordstrom stores.
The trucks’ maximum speed is electronically set to 65 mph
and an on-board computer system monitors driver behav-
iors that affect fuel efficiency, such as rapid acceleration or
hard braking.
-3.5% -3.5%
-4.3%
REDUCED ENERGY USAGE
2009GOAL
2010GOAL
2009RESULTS
7.25 7.25
6.63
INCREASED FUEL EFFICIENCY
AVERAGE DELIVERY MPG
2009GOAL
2010GOAL
2009RESULTS
32 | |
recycling Programs
From paper and plastic to glass, aluminum, computer hard
drives and organic waste, we’re looking for ways to recycle
wherever we can.
Comprehensive Recycling Company-Wide
Recycling bins for customer and employee use are available
in all of our stores. Our recycling program began in 2008 and
now captures aluminum, paper, cardboard, plastic, glass
and compostable materials. While there is still plenty to do in
this area, we are continuing to make steady progress.
Technology Recycling
Through our IT Asset Recycling Program, we’re working
with a third party to reuse, sell and properly dispose of old
computers. All hard drives leaving a Nordstrom location for
recycling are reformatted or password protected to ensure
the information they hold remains secure. We also work with
office supply partners to recycle used printer and copier
toner cartridges.
Organic Waste Recycling in Stores
We currently have approximately 45 stores and four support
facilities involved in organic recycling programs. For exam-
ple, in our Scottsdale Fashion Square store, partner Singh
Farms works closely with our team to use composted mate-
rial as fertilizer on landscaped areas around the store.
“Lessening our environmental impacts as we grow as a business is an important priority for Nordstrom.”
— Keli Stosich, Nordstrom Energy Specialist
INCREASED ORGANIC RECYCLING
+2%
+4%
+3.1%
2009GOAL
2010GOAL
2009RESULTS
Percentage of total organic (food) waste from our restaurants recycled
into composting programs.
doing our part to
RECYCLEWASTE
2011 NORDSTROM CSR REPORT | | 33
INCREASED RECYCLING RATES
80%
90%
82%
2009GOAL
2010GOAL
2009RESULTS
Percentage of total waste diverted from landfills and/or incinerators,
and into recycling streams.
reducing Harmful Chemicals
Whenever we can, we use alternative, sustainable options
rather than harmful chemicals. Since 1996, we’ve been
testing our products for banned and limited-use chemi-
cals. In 2008, this list was expanded when we adopted the
American Apparel and Footwear Association’s Restricted
Substance list. We also transitioned all of our cleaning
supplies to low- and non-toxic products in 2009.
Organic Cotton
The use of organic cotton helps Nordstrom minimize the
environmental effects of agrochemicals and lessens expo-
sure to harmful chemicals for farm workers and people living
in farming communities. We’re dedicated to increasing our
use of organic cotton and supporting global organizations
that provide aid and education to organic cotton farmers,
such as the Textile Exchange.
34 | |
Where do our products and packaging come from? Where
do they go after they leave our stores? These are not always
easy questions to answer—our stores are just one link in a
complex supply chain that connects communities across the
globe. While we don’t always have direct control over how
goods are made or what happens after the sale, we do have
influence to make positive change happen. Our goal is to
make a difference up and down the supply chain by reduc-
ing waste, using recycled materials, supporting eco friendly
products, and offering customers responsible choices.
Sustainable Products
Well Beauty
Find hundreds of natural, organic, or chemical-free products
at our Well Beauty cosmetic boutiques in 25 stores and on
Nordstrom.com. Every Well Beauty product is paraben and
petro-chemical free and sold in recycled packages.
Organic Cotton
Organic farming methods replenish soil and reduce the use
of toxic pesticides and fertilizers. We offer a wide selection
of popular brands that use organic cotton.
Eco-Conscious Style
For just about everything you’re looking for, we offer a brand
made from environmentally friendly materials.
Packaging, Bags, and Boxes
Recycling is just one part of the sustainable packaging
cycle. Reducing and reusing are just as critical. All bags and
boxes at Nordstrom are now recyclable, and we’re also using
less packaging and choosing products made of recycled
content and material.
• 100%-recyclable bags and boxes. If it came from us,
you can put it in the recycle bin.
• Reduced packaging at Nordstrom.com. More box sizes
means a better fit for merchandise and less waste.
• Nordstrom Rack shopping bags. Made of 80% recycled
content, Nordstrom Rack shopping bags also have an
additive that helps them decompose in landfills—just in
case some don’t make it into a recycle bin.
• Reusing shipping boxes. Our Distribution Centers also
reuse corrugated shipping boxes when possible to help
cut down the amount of packaging we use.
innovations for
PRODUCT PACKAGING
Our goal is to make a difference up and down the supply chain by reducing waste, using recycled materials, supporting eco friendly products, and offering customers responsible choices.
2011 NORDSTROM CSR REPORT | | 35
ECO-friENDLY
Nordstrom is proud to offer apparel,
shoes and accessoreis that are made
with environmentally friendly material.
This reusable tote is made from recy-
cled water bottles.
36 | |
While cotton is a beloved fabric, it is also one of the most
environmentally damaging materials to produce. At Nord-
strom, we considered this dilemma as we developed our
social responsibility strategy around sustaining the environ-
ment. Organic cotton development was an obvious choice
when considering all of the ways we could make an impact
and difference, given it connects directly to our business.
Limiting Pesticides and fertilizer
Cotton accounts for only 3% of the world’s agricultural crops,
yet it requires more pesticides—25% of all agricultural
chemicals used on the planet—than any other single crop to
grow. By using organic cotton, we help to reduce chemical
pesticide and fertilizer use. This has helped limit exposure
to harmful chemicals for the farmers involved in growing
organic cotton.
industry Support
As we continue to increase the amount of organic cotton in
our merchandise, we want to support the organic-cotton-
growing community. We now support organizations like the
Textile Exchange (formerly the Organic Exchange) which
provides aid and education to organic-cotton farmers, while
working to increase the global market for sustainable fibers
including organic-cotton, bio-based and recycled fibers.
One of the goals of this organization is to help farmers cre-
ate a long-term, sustainable program that influences trade,
builds strong communities, provides sustainable training,
and enriches the lives of cotton-growing farmers.
in Our Merchandise
We use organic cotton as a standard raw material in much
of our Nordstrom label merchandise. The “Eco-Conscious
Style” sections of our website feature merchandise made with
organic cotton and other environmentally friendly elements.
“We are committed to using organic cotton as part of a broader eco focused strategy, and our goals include increased usage each year.”
— Matthew Tracy, Nordstrom Product Group
supporting
ORGANICCOTTON
2011 NORDSTROM CSR REPORT | | 37
0
100
200
300
400
500
900
800
700
600
YE ARLY USAGE
PO
UN
DS
OF
CO
TT
ON
(IN
HU
ND
RE
D T
HO
US
AN
DS
)
Total as ofNovember
20102009200820072006
yEARly ORGANIC COT TON USAGE
38 | |
Organic and Sustainable
Just as we strive to provide sustainably produced apparel
and goods in our stores, we are equally committed to offering
sustainably produced foods and beverages in our restau-
rants and coffee bars. We know our customers—just like
us—want food choices that are the result of environmentally
and socially responsible practices.
• From a fresh mix of baby lettuce, spinach and arugula
to vine-ripened tomatoes, we source local and organic
market produce whenever possible. This supports local
farmers and minimizes greenhouse-gas emissions during
transport from farm to table, and provides our custom-
ers with the freshest choices.
• All of our eggs are cage free and organic.
• When possible, we are committed to sourcing from sup-
pliers who use the most humane processing methods
commercially available. As of October 2010, all the turkey
we use comes from suppliers utilizing CAK—considered
the most animal-friendly poultry processing method.
• We offer organic iced tea, and our specialty coffee bars
offer fair-trade coffee that is also organic.
Healthy Choices
Just as we aspire to offer food and beverages that are bet-
ter for the planet, we also work hard to provide customers
with choices that are better for their health. We search for
food products without unhealthy additives, and strive to pro-
vide nutritious, delicious options for Nordstrom shoppers.
• We do not use liquid dairy products produced with bovine
growth hormone (rBGH).
• We have eliminated hydrogenated and partially hydroge-
nated fats and oils—the root source of unhealthy trans fats
—from all menu options. We support the federal govern-
ment’s standards for food-content reporting, but our goal
is to share even more information with our customers
about the foods we offer whenever possible.
• Phamphlets with nutritional information for all of our menu
items are available in every restaurant and specialty cof-
fee bar in our company.
We take pride in providing fresh, delicious options while partnering with vendors that produce healthy foods. Sharing information about what we serve helps our customers make wise choices.
our coffee bars and
RESTAURANTS
2011 NORDSTROM CSR REPORT | | 39
18
25
20
FOOD INDEX RATING
2009GOAL
2010GOAL
2009RESULTS
Waste reduction
The packaging we use and the way we manage waste from
our restaurants and coffee bars are as important as the food
itself. We continually seek more environmentally responsible
packaging, along with new ways to reduce the amount of
packaging we use in our restaurants and coffee bars.
• All menus and other printed materials in our restaurants
and coffee bars contain a minimum of 30% post-con-
sumer waste.
• We’ve transitioned to an environmentally friendly dis-
posable cup called the EcoTainer.
• An organic recycling program in our restaurants—where
local composting facilities exist—helps us convert waste
to compost, resulting in nutrient-rich soil.
We created the Nordstrom Food Index Rating, a zero to 25 point weighted system, to measure our progress when it comes to pro-viding healthier food choices that are also produced with greater social and environmental benefits in mind. Scoring for each of the four priority food categories (use of rBGH-free dairy, organics, trans fat-free food, 100% Fair Trade tea and coffee offerings) is based on the percentage of all stores that have the option in place.
42 | |
Conducting supplier training
For many years, we have conducted a comprehensive train-
ing program for the partners who produce our private-label
merchandise. Each of our suppliers learns about the Nord-
strom Code of Conduct, Nordstrom Partnership Guidelines,
our Social Responsibility audit process, and the general
Nordstrom compliance guidelines. We also provide partner
training on issues such as worker retention, productivity and
efficiency, the environment, and management systems.
routine auditing
Our team takes routine audits of partners seriously and works
to ensure that our Partnership Guidelines are followed. Dur-
ing an audit, we join with independent, thirdparty monitoring
companies to review and assess physical surroundings,
compensation, and working-hour documentation. We also
gather input from workers and managers. New vendors are
reviewed and compliance levels are assessed before we
approve any facility for production of Nordstrom labeled
merchandise. Once the auditors have reported their findings,
our program managers and partners work together to address
any compliance issues.
factory remediation
We believe compliance is an ongoing process—and we begin
the process with an extensive assessment to identify poten-
tial labor, health and safety, and environmental issues. From
these findings, we create a corrective action plan and assist
our factory partners in addressing any challenges. Trans-
parency and continuous improvement is our goal. We work
hard to achieve that goal by tapping the expertise of factory
management and taking into account operational realities.
We partner with leading industry organizations and consul-
tants to provide in-depth training and planning for factory
management to address complex compliance issues. Our
team has addressed a broad range of remediation proj-
ects, including production and efficiency, wages, overtime
reduction, management systems and worker retention and
safety. We focus on working with key suppliers who have
demonstrated a commitment to transparency and continu-
ous improvement.
Terminating Relationships
If we are unable to successfully remediate any unethical and
unlawful labor practices with a vendor, we consider termi-
nating the business relationship.
We value the many people around the world who help us manufacture high-quality Nordstrom products, and we strive to ensure that their rights as workers are protected.
making sure we
MANUFACTURERESPONSIBLY
2011 NORDSTROM CSR REPORT | | 43
Business for Social responsibility
Our efforts to ensure the health and safety of factory workers
are supported by several third-party organizations, including
Business for Social Responsibility (BSR). Through our part-
nership with BSR, we collaborate to improve conditions in
factories, to create sustainable sources of clean water, and
to develop long-term solutions for fair and safe factory con-
ditions that exceed basic compliance monitoring.
Improving Working Conditions
Nordstrom has been a member of the Business for Social
Responsibility (BSR) since 1998. During that time we have
partnered on a number of projects. One of these is HERpro-
ject—an initiative that strives to improve women’s general
and reproductive health by providing health education and
services to female workers in our contracted factories.
We also support a professional development program for
factories in China through BSR’s China Training Institute.
Participation in BSR allows us to collaborate with people and
businesses across many industries and around the world,
with the mutual goal of improving social responsibility.
In addition to HERproject, we are actively working with BSR
on the following programs:
Apparel Mills and Sundries Working Group
We have partnered with other leading retail companies and
apparel manufacturers to form BSR’s Mills and Sundries
Working Group. The Group’s purpose is to establish con-
sistent expectations that help apparel and sundry suppliers
achieve fair, healthy and environmentally safe working con-
ditions in their factories. Key to this partnership is an effort
to move away from a top-down audit approach and toward
practices promoting transparency, knowledge sharing, and
collaboration between buyers and suppliers. We believe
that the Mills and Sundries Working Group is creating a
sustainable model to benefit workers and the environment.
At the same time, the Group is improving economic perfor-
mance through shared sustainability principles, diagnostic
tools and reporting mechanisms.
Beyond Monitoring Working Group
Since 2002, we have participated in BSR’s Beyond Monitor-
ing Working Group to provide a platform for creating truly
sustainable supply chains. The Group helps buyers and
suppliers integrate sustainable labor and environmental
practices into their supply chains. We’ve found embracing
BSR’s Beyond Monitoring approach—with its four key com-
ponents—to be the most effective way of improving global
working and environmental conditions. These four key com-
ponents include:
• Internal alignment between the commercial and sus-
tainability objectives of buyers
• Supplier ownership of environmental conditions and labor
• Empowering workers to be informed and participatory
constituents
• Public policy frameworks that foster public-private dia-
logue, partnerships, and local solutions
44 | |
PARTNERSHIPGUIDELINES
Wages and Benefits
Suppliers shall set wages, overtime pay and legally mandated benefits and allow-ances in compliance with all applicable laws. Workers shall be paid at least the minimum legal wage or a wage that meets local industry standards, whichever is the greater amount.
Forced Labor
Nordstrom will not conduct business with any Supplier that uses involuntary labor of any kind, including prison labor, indentured labor, or forced labor. Employees shall not be required to lodge “deposits” or identity papers upon commencing employment with the company.
Freedom of Association
Suppliers will respect workers rights to freedom of association and collective bargaining.
Our guidelines: Standards for our business suppliers
At Nordstrom, we recognize that our success is based on the quality of our rela-
tionships with customers, employees, agents, suppliers, and communities. To
maintain the high caliber of these relationships and to achieve our goal of always
providing the best product in the most equitable manner, we have established
standards for our business suppliers. In communicating these guidelines,
we hope to identify potential supplie,rs who share our commitment to quality
products, business principles and community relationships. We will only engage
business suppliers who demonstrate a commitment to contribute to the improve-
ment of working conditions and strive to meet our requirements stated in the
Nordstrom Partnership Guidelines.
Legal Requirements
Nordstrom expects all of its business suppliers (“Suppliers” as used in these Partnership Guidelines includes all agents, vendors, manufacturers, factories and subcontractors) to comply with the appli-cable laws and regulations of the U.S, and those of the respective country of manu-facture or exportation. All products must be accurately labeled and clearly identified as to their country of origin and content. The language to be used for purposes of notice and interpreting the meaning of these guidelines shall be English.
Health and Safety
Nordstrom seeks Suppliers who provide written standards for safe and healthy work environment for their workers, includ-ing adequate facilities and protections from exposure to hazardous conditions or materials. These provisions must include safe and healthy conditions for dormitories and residential facilities, and they must comply with local health and safety laws and standards.
PARTNERSHIPGUIDELINES
2011 NORDSTROM CSR REPORT | | 45
Nondiscrimination
Nordstrom firmly believes people are enti-tled to equal opportunity in employment. Although the company recognizes that cul-tural differences exist, Nordstrom will not pursue business relationships with Sup-pliers who discriminate in employment, including hiring, salary, benefits, advance-ment, discipline, termination or retirement on the basis of gender, race, religion, age, disability, sexual orientation, nationality, marital or maternity status, work or per-sonal affiliations, political opinion, or social or ethnic origin.
Child Labor
Suppliers will not employ anyone under the age of 15, and/or younger than the age of completing compulsory education, or under the minimum ages established by appli-cable law in the country of manufacture, if higher than the age of 15. Furthermore, Suppliers of any kind will not expose any-one under the age of 18 to situations in or outside of the workplace that are hazard-ous, unsafe or unhealthy, and will provide adequate protection from exposure to haz-ardous conditions or materials.
Hours of Work/Overtime
While permitting flexibility in scheduling, we will identify local legal limits on work hours and seek Suppliers who do not exceed them except for appropriately compen-sated overtime. While we favor Suppliers who utilize less than 60 hours per week, we will not, require in excess of 48 hours per week and 12 hours overtime per week, or as permitted by applicable law, which-ever is lower. Employees should be allowed one day off in seven.
U.S. Customs
Suppliers will comply with applicable U.S. Customs importing laws and, in particular, will establish and maintain programs and documentation to support country-of ori-gin production verification, to avoid illegal transshipping.
Suppliers shall seek ongoing education regarding Customs-Trade Partnership Against Terrorism (C-TPAT) supply chain security requirements, establish an action plan for compliance, be prepared for sup-ply-chain security audits by Nordstrom and/or third-party auditor, and maintain standards set therein.
Environment
Suppliers must demonstrate a regard for the environment, as well as compliance with applicable environmental laws. Fur-ther, Nordstrom actively seeks Suppliers who demonstrate a commitment to pro-gressive environmental practices and to preserving the earth’s resources.
Documentation and Inspection
Nordstrom intends to monitor compliance with our Partnership Guidelines and to under-take on-site inspections of Suppli-ers’ facilities. Suppliers will maintain on file all accurate documentation necessary to demonstrate compliance and will authorize Nordstrom and its designated agents to engage in announced and unannounced monitoring activities to ensure compliance, including confidential employee interviews. Nordstrom will review and may terminate its relationship with any Supplier found to be in violation of the Partnership Guidelines.
Subcontracting and Changes in
Manufacturers, Factories, and
Vendors
Suppliers will not utilize subcontractors for the production of Nordstrom products or components without written approval and authorization from Nordstrom, and only after the subcontractor has agreed to comply with the Partnership Guidelines. Suppliers will not change manufacturers, factories, subcontractors or vendors for the production of Nordstrom products without written approval and authoriza-tion from Nordstrom, and only after the new factory, subcontractor, or vendor has agreed in writing to comply with the Part-nership Guidelines.
Animal Welfare
Nordstrom promotes strict adherence to codes of practice that meet or exceed International, National and State Govern-ment standards for animal welfare. We strive to do business with Suppliers who source leathers, furs and any other animal by-product from entities who use fair and humane animal-welfare practices.
The Kimberly Process
Nordstrom expects all of its business Suppliers to purchase all diamonds from legitimate sources not involved in funding conflict, and in compliance with United Nations resolutions. This shall also be stated as such on all invoices, wherein the seller guarantees that all diamonds are con-flict-free, based on personal knowledge and/or written guarantees provided by the supplier of the diamonds.
46 | |
For more information on our Corporate Social Responsibility initiatives, please visit www.nordstromcares.com
2011 NORDSTROM CSR REPORT | | 47