Avon - The Company for Women - Corporate Responsibility

Supplier Diversity

More than 30 years ago, Avon instituted a supplier diversity initiative to reinforce the company’s commitment to women and to support those who provide the goods and services that make Avon products extraordinary.

We have made an effort in recent years to expand our relationships with women- and minority-owned suppliers in North America. Avon North America’s memberships in the Women’s Business Enterprise National Council (WBENC) and the National Minority Supplier Development Council (NMSDC) have helped to facilitate this process. Avon sourced products and services from more than 284 small and diverse businesses in North America as of 2007, and in that year Avon U.S. awarded $39 million in contracts to diverse suppliers, which was approximately 5.6 percent of our total U.S. spend. Avon’s desire is to increase spend with diverse suppliers year after year.

We embrace supplier diversity as a business objective, not only to ensure that we recognize capable diverse suppliers but also to continue to drive savings by selecting the most competitive partners. In 2007 and 2008, Avon attended several national trade shows, business fairs and events, including those sponsored by the NMSDC, WBENC and U.S. Pan Asian American Chamber of Commerce. In addition, members of our Supplier Diversity Council continue to represent Avon locally at business expos and outreach events in states as varied as California, Georgia, Illinois, New York, Ohio, Pennsylvania and Washington, D.C.

As we continue to adopt a more centralized supply chain process, we will strengthen our capability to accurately assess the services, commodities and regions in which growth and opportunities may exist for more diverse suppliers. While Avon remains committed to supplier diversity, challenges driven by the current global economic environment have impacted supply chain processes around the world. Early in 2010, Avon management will revisit the supplier diversity position in the context of our overall supply chain and business goals, with the objective of addressing both business and corporate citizenship responsibilities.

Avon encourages potential suppliers to register their company profiles in our supplier diversity database. Please visit the supplier registration website for more information on the initiative and procedures.

The statistics provided in this section apply only to Avon North America’s supply chain.