Avon - The Company for Women - Corporate Responsibility

Diversity

We are committed to attracting, developing, and retaining a culturally diverse workforce. In the United States, women make up 72 percent of the total Avon workforce, 57 percent of managers,¹ and 49 percent of senior leaders.² Minorities, in turn, make up 36 percent of our workforce in the United States and 28 percent of U.S. managers.

¹ A manager is any U.S. employee who holds the title of manager or higher.
² A senior leader is any U.S. employee who holds the title of director or senior director or higher.

Our commitment to diversity attracts a broad pool of talent to our company from all over the world. We employ approximately 42,000 associates worldwide in 113 countries (additional metrics on our global workforce are included below). Yet we are constantly working to develop and enhance diversity in our worldwide operations. Because the meaning of diversity and the obstacles to equality are different in every country, this remains a persistent challenge for our company. We are committed, however, to building a global culture that honors and promotes diversity and inclusion, and will continue to seek ways to ensure that not only our associates but our Representatives, customers, suppliers, communities and investors benefit from our commitment.

Associate Networks

For more than 35 years, the Avon associate networks have acted as liaisons between associates and management to bring voice to critical issues that impact the workplace and the marketplace. Our first associate network was launched in 1971, when the “Concerned Women of Avon” approached senior management to discuss representation and advancement. Today we have five associate networks in the company: the Asian Network, Black Professional Association, Hispanic Network, Parents Network and PRIDE Network, which focuses on the issues of concern to gay, lesbian, bisexual and transgender associates.

The employee network groups help to increase awareness of the business impacts of diversity, collaborate with one another to establish relationships and share best practices, educate our business leaders on the concerns of their members and communities and partner with the community on various platforms. The members of the networks also contribute their thoughts and ideas to “matrix teams,” cross-functional teams designed to include a variety of associate perspectives while helping to advance the company’s business objectives.

Membership is open to any Avon associate interested in contributing to the focus and objectives of a particular network group. Each group is led by an associate leader and an executive sponsor, who are responsible for communicating the group’s goals, objectives and accomplishments to senior leaders throughout the company.

In 2007, the associate networks were relaunched to align their goals and objectives with Avon’s broader business strategy. Alignment with this plan helps to ensure that both individual professional growth and the programs sponsored by our associate networks are coordinated with Avon’s business priorities.

Focus on Avon’s Asian Network

The associate networks have partnered with various Avon departments, including the sales and marketing departments, to raise awareness and give voice to our associates.

In May 2008, Avon’s Asian Network participated in the Coalition of Asian Pacific Americans (CAPA) Festival in New York City. The festival, organized in celebration of Asian Pacific American Heritage Month, was an excellent opportunity for Asian Network affiliates to recruit new Representatives and raise Avon’s brand awareness among the Asian-American community. The quote below, from the leaders of our Asian Network, provides an overview of the positive impact the networks are having on our associates and our business:

“The goal of the Asian Network is to support Avon's strategy by offering programs related to professional development, knowledge sharing, and organizational and community involvement. We impact the business in various ways. We increase brand competitiveness by participating in major Asian festivals in the communities in which we do business. We improve organizational effectiveness by providing our members with leadership opportunities and by partnering with our human resources organization on recruiting and professional development initiatives. Some of the personal benefits our members enjoy by participating in network meetings and events include: strengthened relationships, expanded knowledge of Avon’s business and enhanced leadership skills.”

—Cintya Hato, Associate Leader, Senior Category Manager
—Dinesh Popat, Executive Sponsor, VP, Global Merchandising Operations

Benefits and Compensation

At Avon, our goals are to pay competitively, reward for performance and help our associates to develop as people. The Avon Total Rewards program, our employee compensation package, is designed to do just that. Compensation is based on individual performance, overall business performance and economic factors, and proves to be highly competitive when compared with the compensation offered by our industry peers.

The Avon benefits program, offered to full-time associates based in the United States, is designed to help our employees balance their professional and personal responsibilities; similar benefits exist for our associates around the world. Through the Total Rewards Program, employee benefits include the following:

• Medical, dental and vision coverage
• Life insurance and retirement planning
• Disability benefits
• Flexible spending accounts
• Employee assistance program, including health and wellness resources
• Financial planning and a stock purchase plan
• Gym memberships
• Paid time off
• Product discounts
• Transit incentive programs
• Tuition assistance
• Parental leave
• Child care benefits

Domestic Violence Policy

At Avon, we are committed to providing a safe, healthy and professional work environment for all associates. To reinforce that commitment, we assembled a cross-functional team and created a policy regarding domestic violence in the workplace.

This policy formalizes our commitment to providing a workplace free of any acts of violence, including domestic violence; communicates our support and assistance framework for associates who are victims of domestic violence; and presents guidelines on how to deal with incidents of domestic violence in the workplace. In addition, associates have access to a broad spectrum of services designed to help with a range of personal issues, including domestic violence, through our Employee Assistance Program.