First-place winning presentation at the 2011 Boston University School of Management Net Impact Case Competition

1. Bolstering CSR in Nike

2. Setting the Pace for CSR Team Cool Runnings

3. Call for Action Issue at Hand: While New Balance (NB) is currently utilizing socially responsible practices, the approach is fragmented. Mission: “Demonstrating responsible leadership, we build global brands that athletes are proud to wear, associates are proud to create, and communities are proud to host.” Goal: Create and align an integrated CSR framework into the NB organization. 3

5. Company’s citizenship drives 16.3% of a company’s reputation of products and services21Veleva, Vesela. “New Balance: Developing an Integrated CSR Strategy.” Richard Ivey School of Business, The University of Western Ontario. Page 6. 2Reputation Institute and Boston College Center for Corporate Citizenship, “Building Reputation Here, There and Everywhere: Worldwide Views on Local Impact of Corporate Responsibility,” March 2009, http://bcccc.net/document/docWindow.cfm?fuseaction=document.viewDocument&documentid =1270&documentFormatId=2331, accessed March 29, 2011.

6. How Do We Get There? Integrated approach: 5 Joel Stephanie Casey Jackie

7. Instituting Responsible Leadership 6

8. Reflecting Commitment in Structure We recommend creating a “Corporate Social Responsibility” Department Reporting directly to CEO Establish Executive Vice President Position Est. Incremental Cost: $250,000 per year Benefit: Visible, sanctioned new department and leadership will be crucial to effective company buy-in, recognition, and incorporation of CSR program 7

9. Reflecting Commitment in Structure 8

10. A New Type of Accounting 9

11. 10 Aligning Products & Services Products & Services ValuesPrinciples Casey

12. Green is the New Balance 11 Responsibility Score Card Factory Store 40 Life Street, Boston MA ^ LEED Green Building Certified since 2009 ^ 78% of electricity from solar power ^ Paperless since March 31, 2009 ^ Total Carbon Footprint reduced by 58% since 2007

13. A New Footprint Position NB as an industry leader in facility energy efficiency and clean technology How: Invest in cutting edge green innovations for heating, cooling, ventilation, and waste disposal Pursue LEED Green Building Certification for all NB facilities Sponsor LEED training for the VP of CSR Why not green products? Green footwear and apparel not yet perceived as high quality NB wants to be perceived as an athletic shoe company Current green products are painful to look at 12

15. Beat major brands to fashionable green offeringGreen Shoes Everyone Can Love 13 Current green offering, the 070 Where we are headed

16. Integrating Efficient Operations 14 Operations Products & Services ValuesPrinciples Stephanie

17. Shoring Up Operations Goal of Operations in CSR context: Maximize positive impacts on employees, environment, society while adhering to the firm’s overall mission NB is doing the right thing in the U.S. … … but poorly communicates/recognizes initiatives and is inconsistent overseas 15

18. Empowering through Recognition We recommend launching a “Kaizen Appreciation Program” (KAP) Train each associate in continuous improvement Each quarter, 1 associate is chosen to present improvement project and results to management $1,000 bonus Communicate green initiatives in New Balance Sheet newsletter 16

19. Maintaining a Consistent Approach NB should be consistent in its standards both in the U.S. and overseas We recommend holding temporary workers to the same hour and compliance standards as full-time associates Based on standards within that country Work with organizations such as Maquila We suggest enhancing the compliance standards for apparel and accessories division 17

20. Boosting Morale and Productivity 18 Benefits Costs

21. Reaching out to the Community 19 Joel

22. “Endorsed by No One” 20

23. Taking Outreach National 21

24. Launching in a Phased Approach 22

25. The Bottom Line 23 Benefits Costs

26. Integrated Approach 24

27. Questions? 25