Memo Report

To: From: Date: Topic: Heads of all subsidiaries Jolter Metz (Head of marketing & Sales) 23.10.2011 Implementation of CSR

Introduction: On 18th October 2011, we had a conference with executives from different departments of our company in which we discussed several suggestions for the intended implementation of CSR in our company. Reason for this meeting is the recent uncovering of our production conditions, which caused a bad reputation for our company and a decline of sales. In this memo report we will present our designed strategy for achieving a sustainable CSR. Main part: First, we have decided to abolish child labour from our production process because it is the main issue that causes a bad company image and a downturn of sales. This structural change is a first step to improve our reputation in society. To ensure the abolition of child labour we additionally decided to visit our overseas factory plants more frequently. Moreover, we suggest to cooperate with an ethical trading initiative. With support of an experienced organisation we can implement a qualitative better and more sustainable CSR. In addition, this cooperation will improve Stitch Wears current image through positive media reports. Furthermore, we propose to implement our CSR activities in our marketing strategy. By launching a new line of products with the slogan Fair wear, making a difference in clothing, customers worries about child labour products will be addressed. As a consequence sales will increase again. Finally, we suggest to sponsor local social projects take care of children or young teenagers. By financing these developmental projects, we take over social responsibility and help to improve the poor circumstances in our production countries. Consequently this will have a positive effect on our reputation. Conclusion: In summary, we designed a sustainable CSR strategy through which we can improve our reputation in society. Currently we have the image of an exploiting and child employing company, nevertheless our main goal must be the transition transformation to a company, which cares about it's environment and society. We look forward to your reaction and hope to implement the suggested image improvements as soon as possible. With kind regards,
Jolter Metz (head of marketing & sales)

Ben Ploehn: S2150441

Action minutes 18-10-11 Jolter Ben Tiep Konstantin First point PR stay away from child labour, bad for image, scares customers Customer will visit production site more often Hpur - Partnership with ethical an ethical trading initiative H MS New brand name, Fair wear Fair wear, making a difference in clothing In order to remove brand image sports events which high profile people, inspire young employees. Lead by example 7 Support a new team to supervise CRS, 8 in order to implement the CSR program it is important to review the prices at the bottem and top of the range. Head of Marketing & Sales PR manager Head purchasing Head production