Corporate Social Responsibility – Human Capital Management

CSR Image Human Capital Management WE AIM TO CREATE OPPORTUNITIES FOR ALL OF OUR EMPLOYEES.

We seek to drive our human capital management strategy by being a great place to work—from how we acquire talent, to onboarding, to how we grow and develop, recognize and reward, to retain. Our programs and resources are executed incorporating a lens of Diversity, Inclusion, and Belonging (“DIBs”), and we look to source and develop talent from a broad and diverse bench. We deliver on our commitment to be a great place to work by being an inclusive workplace for our employees globally, creating opportunities for employees to grow and develop, recognizing and rewarding performance, and supporting employees’ physical, emotional, and financial wellness.

Our Team

Our purpose is to inspire and empower youth culture. With our customers at the center of everything we do, we are committed to fueling a shared passion for self-expression, creating unrivaled lifestyle experiences for our customers, and being at the heart of the sport and sneaker communities. Our high energy employees have become recognizable globally and signify our unparalleled customer service and sneaker expertise.

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Our employees are committed to exceeding our customers’ expectations and creating experiences that make them feel connected and emotionally engaged with our family of brands. We’re building deeper, more meaningful connections through the “Five Cs” of our Customer Connected Strategic Framework—Collections, Content, Community, Connectivity, and Convenience—at the heart of everything we do.

We ask our employees how we can do better so that our programs and resources enhance their experience and develop their careers with us. This is the core of how we live our values, deliver our purpose, and achieve success. We deliver on our purpose through our four strategic imperatives.

We are on a journey to further meet the needs of where our business is going. We are more matrixed, we are becoming more agile, and we are building and looking to acquire, develop, engage, and reward talent in new ways to drive business success. Our culture reflects how we run our company every day. We put the customer first, emphasize our values, and actively encourage all employees to bring their whole, authentic self to work through our DIBs strategy. Authenticity at work includes sharing and speaking up about work and life experiences that may be different based on one’s identity. When we create a workplace where our employees are engaged, empowered, and committed for the long term, we are better positioned to help our customers be inspired and empowered.

For decades, our employees have brought our business to life. No matter what job they hold or where they work, our priority is creating a unique employment experience for them as they create unrivaled lifestyle customer experiences at the heart of sport and sneaker communities. We perform significantly higher than the global and retail benchmark in Overall Favorability and Engagement of our employees with an 89% workforce response rate for our 2019 engagement program.

Embracing Diversity, Inclusion, and Equality

To support our ongoing growth, we are relentless in creating a work environment that celebrates the differences that make us even stronger. We source talent through diverse channels that help round out our talent pipeline, including from organizations such as National Black MBA, National Association of Black Accountants, Black Retail Action Group, Association of Latino Professionals for America, Lesbians Who Tech, and National Organization on Disabilities. Our goal is to attract, develop, and retain employees from all walks of life.

Empowering Women

As of the fiscal year-end, women comprised 46% of our total employees globally, 27% of our executives, and 45% of our independent directors.

Gender Diversity (Global) CSR Image46% of total employees globally are women.
 

of executives are women

 

of independent directors are women

At Foot Locker, women serve in several key leadership roles, including as Chief Financial Officer, Chief Human Resources Officer, General Counsel and Secretary, Chief Accounting Officer, Vice President and General Manager, Foot Locker Europe, and Vice President and General Manager, Foot Locker Pacific.

Ethnic Diversity

As of the fiscal year-end, 84% of our U.S. employees, 20% of our executives, and 27% of the independent directors of the Board were ethnically diverse. We believe we treat all employees fairly regardless of their race, gender, age, ethnicity, sexual orientation, disability, or national origin.

Ethnic Diversity (U.S.)*
 

of employees are ethnically diverse

 

of independent directors are ethnically diverse

* U.S. workforce represents 70% of global workforce

We were recognized again in 2019 for our industry-leading CSR practices with awards for Certified Best Place to Work, Best Workplaces for Diversity, and Best Workplaces in Retail, each conferred by the Great Place to Work Institute, and Indeed’s Top 50 Top-Rated Workplace. We were also rated on Forbes’ Most Engaged Customer List in 2018 for our “relentless focus on the customer experience.” We are also committed to Board diversity; 72% of the independent directors are ethnically diverse or female, including our Lead Director. In 2018, the NACD honored the Board with an NACD NXT recognition award for excellence in harnessing board diversity and innovation as a strategy for building long-term value. According to NACD, we were chosen for our “devotion to diversity and inclusion which is clearly systemic and strategic for the board, management, and operations.” Our commitment to diversity and inclusion is also reinforced by the Code of Business Conduct (“COBC”), which includes a zero-tolerance policy for any form of discrimination, harassment, or retaliation.

GLOBAL EMPLOYMENT
Over 50,000 people employed globally CSR Image
12.5% non-store employees promoted globally in 2019

Being an inclusive workplace for our employees globally includes:

  • Celebrating our global DIBs Council chaired by our Chairman and Chief Executive Officer and comprised of leaders representing every area of the business and responsible for setting and upholding DIBs goals and practices.
  • Focusing education about DIBs sparking thoughtful dialogue and establishing shared goals.
  • Accelerating our diverse pipeline of talent by building partnerships with diverse groups to fill high demand positions in Technology, Legal, Finance, Marketing, Merchandising, Human Resources, and Supply Chain, and a direct marketing campaign to store employees resulting in entry level hires, and target partnerships with universities to fuel a diverse candidate slate.
  • Hosting “Skip Level conversations,” small group and one-on-one discussions that encourage employees to have an open dialogue on topics that are important to them. These dialogues foster inclusion, understanding, empathy, and positive action by creating awareness of employee experiences and perspectives related to differences in thought, style, sexual orientation, gender identity, race, ethnicity, disability, culture, and experiences.
  • Launching Skills for Inclusive Conversations-Safe Space certification to develop the skills to conduct meaningful conversations, along with information for LGBTQ-specific Safe Space resources.
  • Unveiling Employee Resource Groups (“ERGs”) to connect employees across our company worldwide. To date, we have ERGs for our Latin, African American/Black, Women, and Persons with Disabilities Team Members with other groups with interest forming.
  • Honoring No 1 Way, a creative platform launched by Footaction to champion youth culture’s self-expressive style, celebrate individuality, and prove that there is No 1 Way to pursue one’s passion. The No 1 Way Design Program is an open call for recent graduates of, or current students at, the 85+ Historically Black Colleges and Universities across the country. The competition-based initiative, launched in partnership with PENSOLE Academy, provides mentorship and guidance to rising stars from untapped communities, fostering diversity of talent and providing a platform for creative individuality.

We were recognized for the fourth year by Fortune Magazine on its 100 Best Workplaces for Diversity List.

Talent Acquisition

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Our need to attract and recruit top talent is critical to our growth strategy. Our innovative recruitment methods include our job website where over two million candidates worldwide apply for jobs with us annually, on-campus recruiting in partnership with several prestigious academic institutions, and targeted recruiting events aimed at meeting our prospective employees in their space. In 2019, nearly 37,000 new employees joined Foot Locker. We also provide multiple internal job search/career planning tools to better facilitate career growth at Foot Locker.

We are committed to hiring people with varying levels of skills and abilities, including those who may face barriers to employment. In our ever-expanding global recruitment efforts, we have the unique ability to provide meaningful work opportunities. Our goal is to increase the number of qualified applicants by tapping talent pools of individuals with disabilities, including veterans, and train employees with respect to disability awareness. Each year, we also host interns from around the United States for our internship programs in areas including Merchandising, Finance, Human Resources, Technology, Store Operations, and Supply Chain. Our most recent U.S. internship program included 53% females; and 50% of the U.S. interns were people of color.

Hiring for our stores and distribution centers is a top priority. Our store and distribution center employees are the largest part of our workforce. Since everything we do starts with the customer, it is critical we hire the best talent available in every market in which we do business. Our store employees are the face of our company and connected with the respective surrounding community. Behind the scenes are our distribution center employees who play a critical role in the customer experience. This part of our workforce consistently ensures each customer gets the right product at the right time.

Commitment to Armed Services

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We support our U.S. Armed Forces, veterans, National Guard and Reservists, and military spouses. In 2019, our Law Department began to partner with the Military Spouse Managed Review Program (“MSMR”) of TCDI. The goal of the MSMR program is to create career opportunities for military spouses who are attorneys. Within the military spouse community, there are a large number of licensed attorneys with exceptional capabilities. Many of these attorneys would be in practice today but for willingly choosing to put their military families before their career aspirations. While some lawyers have the privilege of working at a prestigious law firm or moving up the corporate ladder in the legal department of a major corporation, military spouses face unique obstacles that can hinder their ability to achieve those same career goals. Military families are frequently relocated, making it difficult for the spouse to find a new employment opportunity in the new location while also dealing with the absence of their deployed spouse. Too often military spouses are faced with professional demands that conflict with the demands of being in a military family. MSMR offers reliable and flexible career opportunities for military spouses while creating a diverse pool of qualified, adaptable, and experienced attorneys. This program allows military spouses to make contributions from their homes while juggling their family and military responsibilities. The only sacrifices in this equation have already been made by the military spouses. For the rest of us, it is just a matter of fitting ourselves around them. As with all partnerships, everyone has a role to play. The spouses have already made a profound sacrifice for our country and now it’s our turn to support them in return. We take our commitment to military men and women and their families seriously, and we are proud to recognize and support our service members.

Turning Employment Challenges into Opportunities

We have a long history of hiring people with varying levels of skills and abilities, including those who face barriers to employment. These could include people in situations that make it hard for them to find or keep a job, such as economic challenges, access to transportation, lack of experience, or other personal challenges. We have developed community outreach and recruitment strategies to support those who face employment challenges and to help us foster a workforce that includes qualified individuals with a breadth of abilities. As part of this outreach, we recently created a disability hiring initiative in partnership with the National Organization on Disability at one of our distribution centers in order to establish the appropriate conditions to attract, hire, and retain employees with disabilities.

One area of particular focus is hiring people with disabilities. We have collaborative community partnerships, and our Talent Acquisition team promotes workforce programs that facilitate access to jobs for individuals with disabilities. Through these programs, we are working toward increasing employment for these individuals.

Advancing Careers and Developing Talent

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Attracting top talent is only the beginning. We are committed to providing a superior employment experience for every associate globally, which includes career advancement and development. We strive to develop a pipeline of talent and provide our employees with advancement opportunities.

We conduct an annual review of our leaders to determine their development opportunities and career succession possibilities. The top leaders of the organization are reviewed by members of the executive team, including the Chief Executive Officer and Chief Human Resources Officer. Each participant receives comprehensive feedback from their manager and guidance on learning and growing their impact and career potential.

As a retailer that values hands-on experience in our stores, our store employees have opportunities to take on higher-level field and corporate positions. The best testaments to the opportunities we provide are our employees who started out at stores and rose through the ranks to senior management positions. Team Members frequently work for multiple brands and in multiple functions throughout their careers. Average non-store employee tenure (at the manager and higher levels) is 12 years. We also offer team members at all levels a variety of training opportunities, ranging from online courses to in-person workshops and multi-day programs. Foot Locker’s team members regularly go above and beyond expectations and demonstrate tremendous work ethic and dedication to the Company. In addition to service awards, we offer Quality Service and Super Sneaker Awards to recognize associates worldwide for exemplifying one or more of our Company's core values (integrity, leadership, excellence, service, teamwork, innovation and community).

At Foot Locker, we are all about developing and supporting our people. E-learning, training, leadership development, and scholarships are just a few ways in which we enrich employees professionally. We believe our employees can have fulfilling careers with us in the same or in many different jobs. We offer a global and consistent leadership development curriculum that is aligned with our leadership framework, expectations, values, and business strategy. To ensure new manager success, we take a blended learning approach to helping new leaders build the skills necessary to lead others effectively. Over the course of a quarter, managers have the opportunity to complete self-directed learning, apply their learnings on the job with manager support and reinforcement, and learn leadership lessons from executives across the organization.

Our Key Talent Summit provides a unique opportunity for our global high potential (“HiPo”) talent to broaden their knowledge and skills, work collaboratively with employees globally to solve business challenges, and network to build life-long partnerships. This year-long program also includes a 360° development assessment along with a comprehensive development plan, a C-Suite conversation learning series, and a “consultant” opportunity for the HiPo employees to leverage their potential. Over one-third of the HiPo population are women and approximately one-quarter are persons of color, illustrating our commitment to building a diverse pipeline of top talent.

At Foot Locker, we also believe in building the capability of our next generation of leaders. Our Emerging Key Talent program allows us to do just that. The objectives include accelerating their skill growth, expanding visibility, and demonstrating greater impact in the organization. More than half of the participants are women and more than one-third are persons of color.

“You Develop,” our career development program, features an objectives worksheet and thought-provoking questions to help employees have constructive career conversations with their managers. We target critical leadership transitions, such as becoming a first-time supervisor, with our Fundamentals of Leadership program to ensure manager success.

Our commitment to lifelong learning does not stop with management. We are dedicated to helping our employees at all levels thrive in our transformative environment with change leadership and are leveraging technology to drive learning. Our online learning platform, LinkedIn Learning, offers self-directed video courses on software, technical, and professional skills. We upskill and provide key knowledge to our field employees in a fun and engaging way through our digital learning platform called “Lace Up.”

Our focus includes the communities in which we do business. Everything from our Foundation giving to our employee volunteerism to our partnering with local artists and community members for our store openings reinforces this commitment.

Employee Spotlight Brandon Plummer

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“I started working at Foot Locker in 2016 as a part-time sales associate and quickly became a Sales Lead in Langhorne, Pennsylvania. I always wanted to move up in the Company, but I never imagined the career development opportunities provided by the Company. Hard work, high performance, and character all played a part in me being offered an opportunity to intern with the Talent Management team in the New York headquarters, and later being offered a full-time Replenishment Analyst position upon graduation from college in May 2020. As I reflect on my early success, I find my career progression has been influenced by aligning my passion with my profession. I’m a sneaker head, and I’m so thankful I discovered an industry, company, and profession that reflect my interests and excite me every day. I received considerable access to countless development opportunities during my summer internship. During my internship, my co-workers joked with me about my daily commute across three state lines and my high transportation costs. But if something is important to you—and you are passionate about it—you will always find a way to make it work. I may have sacrificed a typical college student’s summer of fun, but the sacrifices I made opened a world of future and endless career opportunities to me.”

Benefits

Partner with disability hiring program to attract, hire, and retain employees with disabilities

Provide great jobs and inclusive advancement in retail

We provide compensation and benefits to our employees that reflect our commitment to be a great place to work. This is not only the right thing to do, it is core to us delivering on our purpose. We seek to attract and retain talent by designing reward programs that are competitive, performance focused, and support our short- and long-term strategy. These programs are reviewed on an annual basis to ensure they remain aligned with the market and the Company's strategy.

Internal promotion rate included large and growing percentage of female and ethnically diverse employees

Consistently rank in the Top 20 for Best Workplaces in Retail and in the Top 50 for Best Workplaces in New York

We offer competitive compensation and benefits, including health and wellness benefits (medical, dental and vision coverage), financial benefits (401(k) Plan with Company matching contribution, life and disability coverage, Employee Stock Purchase Plan at a 15% discount, and commuter benefits), tuition reimbursement, and work-life balance and lifestyle benefits (paid time off and Employee Discount Program).

To be the best, employees need to feel their best. As part of our comprehensive benefits offering, we provide eligible employees with personalized wellness coaching. The one-on-one program integrates phone and mail-based communications with an online interactive health coach and is designed to target specific goals around nutrition, exercise, and heart health. Select facilities feature an on-site gym for convenient workouts, and our employee discount platform offers discounted rates for local fitness clubs. While health is a year-round priority, some corporate offices organize a Wellness Month with free workout classes, a health fair, and fresh fruit delivery.

We are our customers—our employees are true sneakerheads. One of the great aspects of our culture is our ability to celebrate and fuel the sneaker passion of not just our customers, but also our employees. To celebrate that passion, we offer employees product discounts and access to exclusive offerings from a range of vendors. With the ever-evolving retail landscape, we are committed to fostering elevated in-store experiences featuring high-profile guests through vendor partnerships that make us stand out from the crowd. Our employees gain exposure to unique opportunities with athletes, celebrities, and other tastemakers who impact the youth culture that inspires and fuels the Company, as well as access to events like the NBA All Star Weekend, NBA Drafts, and concerts.

Ensuring Worker Safety

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We are dedicated to fundamental worker safety. We strive to prevent and promptly address any employee work-related injuries. Over time, we have experienced a decrease in the number of recorded accidents and lost time from employees out of work due to work-related injuries. We have a centralized online reporting system that tracks all incidents and injuries. We analyze the information at least quarterly to assess risks and develop preventive measures. Our Risk Management team analyzes recurring injuries and issues to determine trends and if current policies or practices need to be amended or if more training is required to address risks. Our field auditors review safety measures in their audit process.

Ethics and Compliance

Culture is the foundation of everything we do at Foot Locker. We define culture as our values in action. Our culture is one of high performance, and it is how we live out our values. How we do business is just as important as what we do. The COBC serves as our ethical compass for the commitment we make to our stakeholders, customers, and one another. Our global Law Department manages our COBC program by providing training and online education, and partners with the Internal Controls Department to audit employee assessments. Employees are required to certify COBC compliance annually. When issues arise, our employees are encouraged to speak up and use our open-door process for discussing any concerns. We also provide a confidential COBC hotline. The General Counsel reports to the Audit Committee on the COBC program.

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Our global Law Department has partnered with Tony’s Chocolonely, a socially conscious chocolate manufacturer, to promote our COBC program internally by distributing chocolate bars to employees with COBC-themed messages contained on the wrappers. This is a fun and exciting way to promote our COBC program, to share and care and foster employee engagement. Our partner, Tony’s Chocolonely, was founded with the mission of making all chocolate 100% slave free globally. Tony’s Chocolonely’s strategy to end the social inequality in the chocolate industry is to raise awareness, lead by example, and inspire others to act. We are proud to support Tony’s Chocolonely and change the chocolate industry together while also communicating important COBC messages to our employees. More information regarding Tony’s Chocolonely can be found on their website at www.tonyschocolonely.com/us/en.