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CONTENTS
Message from Group Managing Director 2
Workplace 12
Marketplace 16
Environment 20
Community 24
Message from
Group Managing Director
Corporate Social Responsibility (CSR) has always been an important subject in A.S. Watson, and particularly
so at this point of time. This CSR Report is our 4th issue and marks the start of a new journey for all of us.
Over the years, our teams have shown their passion and collective efforts in CSR by developing numerous
local programmes in each of our operating markets. By setting up our first-ever Global CSR Committee in
2011, we are determined to take our CSR commitment to the next level.
By releasing the A.S. Watson CSR Policy and Guidelines for a common framework, we are able to align all
markets to focus on a set of common goals. We have put an annual cycle in place for annual CSR planning
and review. I am pleased to see all business units embrace the challenge and this new process.
The establishment of the global and local committees has facilitated the exchange and sharing of ideas and
expertise on CSR subjects. More than ever before, our teams from different countries and functions are
working together as one to ensure that we do business in a sustainable and responsible way.
In 2011, we initiated an annual Global Volunteer Day. It is one of the best examples of how A.S. Watson
has shown a shared passion to bring MORE to life to all our stakeholders in the Workplace, Marketplace,
Environment and Community.
It has been a very fruitful two-year and many of our activities captured in this Report demonstrate our
vibrant A.S. Watson CSR spirit. Always looking to exceed our customers’ expectations, we will keep
challenging ourselves to deliver more positive impact for the people and the communities where we operate.
I would like to thank all staff members for their dedication to making a difference throughout the years, and
I have full trust in our people to reaching more CSR milestones in the years to come.
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Corporate Social Responsibility Report
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27
A.S. Watson Group Corporate Social Responsibility Report 5
6
We have 27 Local Ambassadors and 300 + local committee members across 33 markets – there is
no barrier to joining, which is why we have a diverse group of passionate people coming from various departments
and functions.
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It is about our passion and commitment to bring MORE to life to the community today, and tomorrow
The collective efforts of every operation and every individual in the company
Together, we task ourselves to deliver our social responsibilities under Four Pillars, namely
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A.S. Watson Group Corporate Social Responsibility Report 11
How we work
On the global level
Workplace
Celebrating outstanding teamwork
In the retail business where we interact with millions of customers every week, our frontline staff are critical to the
delivery of the best store experiences to our customers. To reward the best teams and show our appreciation for
their efforts, A.S. Watson invited one best store team from each business unit to our Global Best Store Awards to
be honoured for their outstanding all-round performance. To motivate teams further, they also attended a series of
trainings and fun visits to our headquarters in Hong Kong, and in so doing enhanced their understanding of the Group.
We are also proud to be home of 100,000 staff celebrating diversity, and we continue to ensure a safe, healthy,
supportive, and discrimination-free environment for all.
A.S. Watson Group Corporate Social Responsibility Report 13
Highlights
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und the world – Tra
orts Teams Retail Academy aro ail an d pro duct
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ed on
fo r
h Walking Day, int w tra ini ng ce nt res
p – Organises Healt kn ow led ge ; ne
A.S. Watson Grou Wa tso ns Tai wan
Kruidvat an d
ad e
str ibu tes tai lor-m
league Su pe rd ru g – Di the office
nds – Supports col hampers to new
mo the rs in
ment Kruidvat Netherla w role
t Class for develop with brain disease
with a ne
Kruidvat – Talen
to staff
ina – Donation
ge me nt PARKnSHOP Ch
Cr ed ite d ma na with terminal illness
ise Yo ur ICI PA RIS XL –
ain – "C us tom
Ma rio nn au d Sp te sto re teams course
to motiva
Store" competition
14
Workplace
Development makes us better and stronger
A.S. Watson is keen to develop people at all levels – whether they are store staff wanting to step up with product
and management knowledge, fast-tracking executive trainees, or high potential managers from various countries and
departments participating in our Management Development programmes. Our trainings and workshops offer great
opportunities for colleagues to network and learn from each other, while advancing their career skills and knowledge
through learning from professionals coming from various backgrounds. After all, people are the most valuable assets in our
business and it is our belief that when our people grow and progress, so will we.
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A.S. Watson Group Corporate Social Responsibility Report 15
Programmes
16
Marketplace
Caring for our customers
Exceeding our customers’ expectations means delivering excellent service anytime, anywhere. The awards we receive validate
our efforts and encourage us to keep going beyond the call of duty.
Staying connected with our customers through various communication channels is one way we ensure their satisfaction.
Apart from our stores and customer service centres, we also make ourselves available for our customers on-the-go, through
their mobile phones, and online on various social media platforms.
A.S. Watson Group Corporate Social Responsibility Report 17
Most Favourite
Health & Beauty Retailer in UK Customers’
Most Favourite
Retail Brand of the Year 2012
No. 1 in Asia
(Pharmacy/drugstore) for 4th consecutive year
France
No.1 Choice of the Year in Ukraine Beauty Institute Award
Marionnaud Institut
The Best Perfumery Award
Belgium – 7th consecutive year
Netherlands – 9 times
We work with manufacturers assessed through our Supplier Qualification Audit programme, which includes annual
internal and third party audits. Every time a new Own Brand product is developed, it goes through a consumers’ panel
testing to ensure the best Own Brand product is objectively selected. We care for the safety of the products we sell to our
customers, so our Own Brand products undergo comprehensive testing before and during manufacturing. For example,
cosmetics formulations are always assessed by an independent toxicologist expert based in Europe. Even after they reach
our store shelves, our Own Brand products go through a Post-Market Surveillance programme to ensure their safety and
specifications have not been altered by external factors like storage.
A.S. Watson believes that offering eco-friendly choices will enhance the lives of all customers. With over 1,000 stores in
the Netherlands, Kruidvat takes the lead in selling only LED light bulbs, using packaging with FSC paper, and offering
organic and eco-friendly personal care products, allowing customers to enjoy a more environmentally-responsible lifestyle.
18
Marketplace
Partnership in business and well-being
Ensuring we work together with our supplier companies towards the ultimate goal of exceeding our customers’
expectations is critical to a successful partnership. A.S. Watson is avid in fostering understanding and interaction with
our business partners through biennial sharing of the Group’s global strategy in the A.S. Watson Global Suppliers
Conference, where retail trends, technology and best practices are shared to inspire more ways to bring MORE to life
to our customers.
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A.S. Watson Group Corporate Social Responsibility Report 19
A.S. Watson believes it is important that we and our business partners operate
in an ethical manner. Since 2008, the Group has been a member of the Business
Social Compliance Initiative (BSCI), which is a leading business-driven initiative
for companies committed to improving working conditions in the global supply
chain. Areas covered by the BSCI Code of Conduct include prohibition of child
labour and compliance to applicable occupational health and safety legislations*.
Our commitments include a Code of Conduct signed by manufacturers in high
risk countries, and compliance assessments through audits. This provides a
credible and transparent global monitoring system which safeguards an ethical
procurement process.
We have also held a series of global workshops where best practices have been
shared with our suppliers.
Environment
In our worldwide network of over 10,000 stores, we serve millions of customers every day to help
them live a healthy and beautiful life. While doing so, we also strive to minimise our impact on
the environment and preserve our values of sustainable living.
Our Energy, Supply Chain and Packaging Sub-committees are constantly finding new ways to
make our operations more environmentally-friendly. The key processes are currently on trial and
tested in our businesses in the UK, Benelux and in Hong Kong. Here are some ways in which we
are trying to reduce our carbon footprint:
In 2010, PARKnSHOP Hong Kong also installed similar smart meters in stores to track electricity consumption, thereafter
readjusting electricity usage pattern to successfully reduce overall energy consumption by 5%.
Our Health & Beauty UK warehouse in Dunstable has heating and lighting control systems in place to ensure the optimal
level of usage.
22
Environment
Reducing supermarket waste through food donation
Since July 2012, PARKnSHOP Hong Kong has been in partnership with a non-profit food recovery programme Food
Angel to donate leftover produce, meat and bakery to make nutritious meals for the needy and the elderly. A creative way
to reduce food waste and support the community at the same time!
A.S. Watson Group Corporate Social Responsibility Report 23
Watsons Water also reuses bottle-rinsing water for cooling the factory
amenities, thereby reducing water dumping ratio by 3.2% per year and helping
to minimise the effect of global warming in the production process.
Highlights
e) – Sta ff
Of fic e Re ns wo ud
Kr uid va t (H ea d in picking up str
eet
Project l ch ild ren
d – Canal Clean Up engaging sch oo
Watsons Thailan
litter together
ign, and
awareness campa
a Green Wish" environmental
ve the Earth, Plant
Hong Kong – "Lo
Nuance-Watson tal aw are ne ss
staff’s environmen
publicity to raise
24
Community
Highlights
ok ing
ys ia – Qu it Sm
rt W at so ns M ala l talks
ndation to suppo rted by ed uca tio na
Breast Cancer Fou Campaign suppo
tso ns Sin ga po re – Pink Walk for
Retail HK & Wa
the disease
the fight against
inviting
rlands – Contest
th Kruidvat Nethe fathers
– Int ern ati on al Tee customers to pa
y tribute to the ir
ening Wa tso ns Ta iw an check-ups motion
pore – Health-scre aci st Da y wi th fam ily he alt h pro
Watsons Singa o ctor Day and Pharm as part of
ith W e s t e r n d on health for all
plan offers w ac tit ion er’s to raise awareness
dic ine pr
an d Ch ine se me
consultation
unning
– Employees r
re Da y I C I PA R I S X L mi na lly sick
ain – He alt h Ca marathon to raise
fun ds for ter
Ma rio nn au d Sp rs
draising for chron
ically-
da nc e cla sses for custome
Trekpleister – Fun ase of toys to with fitn ess children
rity pu rch Da y
ill children and cha on World Heart
at stores
cheer up customers
26
Community
We are your good neighbours
Operating in 33 markets puts us closely in touch with different nationalities, cultures
and local communities every single day. This includes our customers as well as the
different groups in society that need a helping hand.
A.S. Watson also believes in maintaining good health by nurturing sports from
a young age. To recognise young sports talents and promote an active lifestyle
among Hong Kong citizens, the Group has been organising the Hong Kong
Student Sports Awards since 2005. To date, this territory-wide school sports
scholarship programme has benefited over 5,600 students. The programme
provides an excellent platform for budding athletes to learn about elite sports
and good leadership through various parts of the programme, paving way for
these students to be avid health ambassadors wherever they go.
A.S. Watson Group Corporate Social Responsibility Report 27
Highlights
1000
A. S. Wa tso n Gr
ou p – Su pp ort sta
education camp for r-g azi ng
the visually-impaire Watsons China – Boo
d k and clothes donation to cha
rity
Wa t s o n s M a l
aysia – Fundr
or ph an ag e an d aising for
fre e sh op pin g Watsons Thailan
children from adop sp ree fo r d – Visit to the Kh
ted homes School for the Blin on Kaen
d
28
PA RK nS HO
– O ut in g P, TA ST E, GR
so n G ro up e) – FORTRESS, EAT, Wat so
A .S . W at h i l d re n (UK Offic Watson’s W ns ,
d e r p r ivileged c A.S. Watson Group – Donation son Group f volunteers underprivilege ine – Outing
with u n pr es sio n A.S. Wat staf d kids for co with
ur ag in g se lf- ex drive with cookies delivery for Hans n work by kite-flying ral-watching
an d en co Conservatio s Centre and
ry-telling Andersen Club on Wetland
through sto at the Lond
Hand in Hand
with LOVE
A.S. Watson Group Corporate Social Responsibility Report 29
fic e) –
in a (N or th Of Watsons Indonesia – Fun day with Wat so n s
Wat so ns Ch ou th O ff ic
e) – Ph ili p p in
Visit to orphana
ge Ch in a (S ren underprivileged children Fa m ily H es – "Wat
Wat so ns of em igrants’ child ea lt h D ay
" fo r st af
so ns
ol their fam
Visit to scho ilies f an d
–
Mari onna ud Czech Repu blic Marionn
au
Donation of toys and fundraising
for
nd – Pink
Ribbon of toys an d Romania – Don
– " C yc le
to aud Pola nc er in d fundra ation
O ff ic e) children’s homes Marionn ea st ca ising for
orphans
g (H ea d ai ns t br
Sup e rd ru
bike ra ce ch ar it y ag ith supplier
n" charity pw
the Moo partnershi
ning at
Shop – Garde
The Perfume ce
M ar io nn au Ho spi
ee k of
d Sw itz er
la nd – the South Bank PARKnSHO
Volunteer fo P China – Eld
n – "A W r a day to se erly home
au d Sp ai n rve the chari visit
M ar io n n
of your choic ty
n ca m pa ig e
natio
Hugs" do
30
da y
e – A fu n Watsons
sia – Be ach cle
an up Si ng ap or story-telling Thailand
Wa tso ns Ma lay Wat so ns ou tin g, Watsons Taiwan –
Cookies baking up and fit – Health ch
for turtle sanctu
ary n with ness classe eck-
and fundraising for childre ng wit h und erp rivil ege their familie s for staff
d gift givi d chil dre n and s and
session an cookies charity sale
Superdrug
– Ta b l e f o o
ch alle ng e, ba ke tball
sal e an d raffle ia – SOS
Teenage Cance for ud Austr
r Trust Marionna ag e vis it
Marionnaud Czech Republic – Marionnaud Hu
ngary – Maint
ph an
Kinderdorf or Tree planting support for Childr
en’s Institute
enance
39 business units
12,000+ participants
Beneficiaries included
U Elderly
U Underprivileged children
U Mentally/physically challenged
U Staff + family/friends
A.S. Watson Group Corporate Social Responsibility Report 31
d So ut h W at so ns
in a (H ea d an Ch in a (W es
Wat so ns Ch m en ta lly Staff badmint t Of fic e) – i a – C h i l d re n ’s
n da y wi th Watsons China (North Office) – on day Wa t s o n s I n d o n e s
Of fic e) – Fu Staff parenting fun day
ildren orphanage visit
challenged ch
– Dra win gs
age Marionnaud Romania Ma rion nau d Spa in
land – Orphan – Orphanage by staff’s kids for a char
ity calendar
Marionnaud Italy – Pink Ribbon Marionnaud Po gift giving and activity
day erpr ivile ged
charity sale campaign activity day to raise fund s for und
children
nd – PAR Kn SH OP Chi
d Sw itz er la op – Support na – "M ore for
M ar io nn au
road mainten
ance ICI PARIS XL – He
adquarters team The Perfume Sh Health" Chinese sen
reg ion ge by offering iors’ day
Mount ain visit and support
store staff Tiddlywinks Wildlife Refu
nce service
supp or t cleaning and maintena
32
World’s largest
/,
1/9
and
-/9
retailer
+
10,000 stores 33 markets
www.aswatson.com
36