2018 Hallmark Social Responsibility Report by Hallmark Cards

No matter the size of the community or our efforts, we are honored to be able to enrich lives in ways that multiply even the smallest acts of caring where one pebble of progress can have a ripple effect, spreading to impact the greater good.â&#x20AC;? D O N H A L L â&#x20AC;˘ C E O, H A L L M A R K

J. C. Hall once said, “If a man goes into business only with the idea of making a lot of money, chances are he won’t. But if he puts service and quality first, the money will take care of itself.” More than a century later, my grandfather’s profound sense of service continues to inspire our highest aspirations and serves as the foundation for our deeply held beliefs and values. Whether we are creating greeting cards, gifts, family-friendly television programming or creative products and experiences for children, we do so in service to our values and to the needs of our consumers and communities around the world, large and small. No matter the size of the community or our efforts, we are honored to be able to enrich lives in ways that multiply even the smallest acts of caring where one pebble of progress can have a ripple effect, spreading to impact the greater good. This Social Responsibility Report includes examples of Hallmark’s caring in action, including some of the work that further enhances our workplace in addition to our community, sustainability, and diversity and inclusion initiatives, moving us closer to becoming the company that makes a genuine difference in every life, every day. Many of the stories featured within, particularly those that illustrate our alignment with the U.N.’s Sustainable Development Goals that we note this year for the first time, reflect the passion of numerous Hallmark employees and partners whose dedication enables our service and elevates our belief that, “when you care enough, you can change the world.” The world needs care now more than ever, so our work must continue. We owe it to our rich heritage of service to do more and to regard these deeds not just as our duty, but also as our great privilege.

Throwing even the smallest pebble into a pond produces a ripple effect, causing the entire body of water to move. Like a pebble, one good deed is contagious, making a positive impact on those near and far.

In Hallmarkâ&#x20AC;&#x2122;s 2018 Social Responsibility Report, the company shares how its efforts in four key areas â&#x20AC;&#x201D; workplace, community, sustainability, and diversity and inclusion â&#x20AC;&#x201D; help improve the lives of its employees and the communities it serves around the world.

workplace

community

table of contents

sustainability

diversity + inclusion

At Hallmark, a diverse, energetic and creative workforce shares a common desire to provide for our families, care for our relationships and serve our communities to the best of our abilities. Hallmark is a special place, made possible by our most valuable asset: our people.

wor k pla ce

Fostering a culture of collaboration, innovation and caring.

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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workplace

ou r b u sine ss a nd p e o p le

A Caring Culture

Our Portfolio of Businesses

At the heart of Hallmark’s workforce is a culture that strives to create a more emotionally connected world by making a genuine difference in every life, every day.

Hallmark Greetings The global greetings business sells greeting cards, gift wrap and related products in more than 30 languages with distribution in nearly 100 countries and 100,000 rooftops worldwide and online.

This culture received meaningful recognition in 2018, with the company being recognized by Forbes and Statista as one of America’s best overall large employers. Additionally, Hallmark was recognized in 2018 by them as one of the best employers for diversity and best employers for women. Across our portfolio of businesses, we strive to produce work environments that nurture professional development, bolster productivity and strengthen relationships with co-workers around the world. Throughout Hallmark and its businesses, the range of employee experiences illustrates the richness of our culture. On any given day, you could encounter: • A volunteer dinner to thank employees and families for their community service • Yoga classes for lunchtime rejuvenation • An impromptu dance performance celebrating diversity • Shuffleboard matches in an employee lounge to recharge • Free online tutorials and classes to aid professional development • Sketching classes for artists and non-artists to stimulate creativity • A 5K race or outdoor volunteer activity to build teamwork or give back to a charity • A “walk in my shoes program” where colleagues shadow each other to learn more about career possibilities

Other greetings-related companies include DaySpring Cards, a Christian greeting card business, and Hallmark Business Connections, a business-to-business operation.

Hallmark Retail Retail operations include about 2,000 Hallmark Gold Crown stores in the U.S., Canada, England, Ireland and Scotland featuring greeting cards, Keepsake ornaments and a range of home décor and gift products. Most products are also found in the U.S. on hallmark.com.

2018 Award Winning Connections

America’s Best Employers: Forbes and Statista Greeting Card Brand of the Year: Harris Poll UK Superbrand: superbrands.uk.com Top 25 Well-Being Leaders: Global Healthcare Resources Henries (UK) Card Design Awards: “Best Traditional Words & Sentiments Range” Platinum Level Designation for Wellness Programs: Kansas City Chamber of Commerce Healthy KC program

Hallmark Hong Kong

Caring Company Award: The Hong Kong Council of Social Service

Hallmark Home & Gifts Home & Gifts is an emerging business that sells home décor and gift products throughout the U.S. Products range from trendy to highly crafted to vintage designs sold under the Easy, Tiger, Floor 9, and J.C. and Rollie brand names. Another gifts-related business is Hallmark Baby, which offers top-quality baby and children’s clothing sold online.

Crayola Crayola offers a wide range of art materials and creative play toys sold in markets around the globe. It also operates Crayola Experience interactive attractions for children of all ages in Arizona, Florida, Minnesota, Pennsylvania and Texas.

Crown Media Family Networks Hallmark Channel, Hallmark Movies & Mysteries and Hallmark Drama are the three, 24-hour cable networks operated by Crown Media with distribution in the United States and Canada. Hallmark Publishing is the e-books division of the Hallmark networks and Hallmark Movies Now is its subscription-based streaming service.

Crown Center Crown Center is a real estate development business responsible for managing the 85-acre hotel, office, entertainment and residential complex surrounding Hallmark’s world headquarters in Kansas City, Missouri. Attracting 5 million visitors annually, Crown Center is a key meeting and tourist destination. Another Hallmark business located at Crown Center is Halls Kansas City, a specialty department store. n

J. Philip Kirk, Jr. Award for downtown vision and stewardship (shared by Crown Center, Hallmark and the Hall family): Kansas City Downtown Council

Cablefax Program Awards for “Home & Family” (Best Talk Show) and for “When Calls the Heart” (Best Faith Based/ Religious Series)

2018 Design Icon Award (The American Restaurant): James Beard Foundation

Cablefax Digital & Tech Awards for Hallmark Movies Now (App for Tablet), Hallmark Channel (Overall Website for a Large Network)

Visitors’ Choice Award — Favorite Hotel; 300+ Rooms (The Westin Kansas City at Crown Center): Visit Kansas City

Cynopsis Digital Model D Award for “When Calls the Heart” (Social Media Marketing Campaign: Use of Twitter) Cynopsis TV Award for Hallmark Channel (Ad-Support, Cable Network Distributed to 50-100MM U.S. Households)

No. 2 most-loved brand for parents and No. 10 most-loved brand for kids: Smarty Pants® 2018 BRAND LOVE™ Study Best Toy Award (Scribble Scrubbie Pets): Good Housekeeping magazine Best Creative Toy of the 2018 Toy Fair (Picture Projector): Parents magazine National Parenting Product Award — five-time winner Mom’s Choice Award — five-time winner Play Advances Language Award — five-time winner The National Parenting Center Seal of Approval — five-time winner Commercial Real Estate Award for company commitment to the region: March of Dimes

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

workplace

ou r g lo b a l p re se nce Hallmark creates products in more than 30 languages that are distributed in nearly 100 countries. Its portfolio of businesses includes Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts, Crown Media Family Networks, Crayola and Crown Center Redevelopment.

Minnesota

Canada

Illinois Pennsylvania

Kansas

New York

Missouri

California

Arkansas Bermuda

Arizona Texas

Florida Bahamas Turks + Caicos

Mexico Grand Cayman Guatemala

Honduras

El Salvador

Locations Key Hallmark Offices and Operating Facilities

Puerto Rico U.S./British VI

Jamaica

Nicaragua Costa Rica Panama

Antigua St. Lucia Dominica Aruba Barbados Netherland Antilles Trinidad Venezuela Guyana

Colombia Ecuador

Hallmark International Product Distribution Locations Crayola Offices, Crayola Experience and Operating Facilities Peru

Brazil

Crayola International Product Distribution Locations Crown Media Family Networks Crown Center Chile Argentina

Worldwide, Hallmark employed more than 30,000 and generated approximately $4 billion in consolidated revenues in 2018.

Sweden Norway

Finland

Estonia Latvia Lithuania Denmark UK Netherlands Ireland Poland Belgium Germany Slovakia Czech Rep Switzerland France Hungary Slovenia Romania Italy Spain Turkey Greece Malta Cyprus Lebanon Israel Jordan

Russia

South Korea Kuwait Bahrain

Shenzhen

Qatar

Egypt Saudi Arabia

U.A.E. Oman

Taiwan

India

Hong Kong Thailand

Philippines Vietnam

Ghana

Japan

China

Guam

Nigeria Malaysia Uganda

Singapore Indonesia American Samoa

Tanzania

Zambia

Australia South Africa

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a dynamic culture 1. Creative Renewal. Hallmark’s Creative Leadership Symposium, a full day of professional development with external speakers, performances and inspiring stories to spark inspiration and creative renewal, brings the company’s creative community together annually to forge new connections and perspectives. 2. Puppy Party. Hallmark’s millennial employee resource group at headquarters celebrated its 10th anniversary in 2018 and used the celebration to raise awareness for Kansas City Pet Project, a local animal shelter. 3. Netherlands Weekly Bootcamp. Employees in the Netherlands participate in a weekly boot camp led by a professional instructor for training and teamwork every Monday.

4. Sounds of Freedom. As part of an early Independence Day celebration and sponsored by Hallmark’s Military Interest Group (MIG), the Hallmark band — consisting of more than 30 current and retired employees — presented a free patriotic concert with nearly 15 songs to employees and the public at the Entertainment Pavilion at Crown Center Square. 5. Holiday Cheer. Hallmark Greetings U.K. employees raised awareness and support for the homeless in Manchester, England, and the surrounding areas by wrapping gifts donated by the public and handing them out to those in need on Christmas Day around a special 3.5-meter-tall Christmas tree in Great Northern Square in the center of Manchester.

6. Interns at Happy Bottoms. Hallmark interns during the summer volunteered at Happy Bottoms, an organization that empowers, connects and impacts low income families by alleviating diaper need in the Kansas City community. They have distributed more than 10.2 million diapers to date.

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7. Inspiring Celebration. During Juneteenth, an event commemorating the end of slavery in the United States on June 19, 1865, Hallmark employees gathered at Crown Center Square for food, games, poetry and praise dancing from performer Crystal McDaniel. 8. Steel Education. Crayola’s Young Professionals Group took an educational tour of the former Bethlehem (Pennsylvania) Steel site which provided insight into the former company’s operations and the factors that led to its closing.

9. Team Building. Crayola’s Global Quality Assurance Team conducted a team-building event at the Banana Factory Arts and Education center in Bethlehem, Pennsylvania. The team made lasting memories and one-of-a-kind glass pieces through an interactive glassblowing experience.

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Contributing to the communities where it operates has been Hallmark's focus, one that aligns with its vision of creating a more emotionally connected world and making a difference in the lives of others.

community

Leading in the support and growth of our communities.

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

community

fact s + fig ure s Hallmark makes a difference by donating to nonprofit organizations around the globe. In 2018, the company recorded nearly $11 million in monetary and product donations, benefiting 1,200 worthy causes, in addition to contributing nearly 50,000 hours of volunteer service. “Contributing to communities and lending our creative talent to the people and causes that need it the most is central to who we are and have always been,” said Cora Storbeck, community involvement director and president of Hallmark’s corporate foundation. “We were honored to positively impact those in need and make a difference in their lives.” Artists from Hallmark’s headquarters used their #my5days of creative renewal to benefit several community nonprofits for the first time: aiding mothers of murdered children, beautifying dilapidated houses and creating an inspiring mural for children in an elementary school. A record number of participants in an annual walk-a-thon fundraiser raised an all-time high in donations, generating nearly $25,000 for HIV/AIDS awareness. Also in Kansas City, Hallmark created a unique Make-AWish opportunity where 150 community residents and

Volunteerism

employees made a dream come true, and a children’s theater on the Crown Center campus celebrated 40 years of serving more than 2 million kids and families with live theater and educational programs. The past year also saw Hallmark’s efforts positively contribute to causes around the globe. In the Philippines, a Hallmark licensee continued their 20-year tradition of creating special products to raise funds for children fighting cancer. In the U.K., Hallmark’s greeting card business created a special line of cards for consumers to help give premature and sick babies the best chance of survival and quality of life. In addition, Crayola presented 20 schools across the U.S. with grants to help strengthen the role of the arts in educational curriculums through a program that has impacted 90,000 students during its nine-year history. n

THOUSAND volunteer hours⁵

$1.2+ MILLION in value⁵

Monetary and Product Donations

$2.6mm

$10.8

in monetary donations to the United Way³

MILLION

$5.0mm

in product donations¹,²

$2.1mm in monetary donations to other nonprofits¹

$1.1mm

1,200+

in monetary donations to the arts⁴

nonprofits benefited¹

1 Company

wide, 2 Retail value Greetings, Hallmark Retail, Hallmark Home & Gifts, Hallmark Business Connections, Liberty, Missouri, facility and Crayola 4 Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts, Hallmark facilities and Crayola 5 Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts, Hallmark Business Connections, Hallmark facilities, Crayola, DaySpring, Hallmark Canada, Hallmark Asia and Hallmark Australia 6 Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts and Liberty, Missouri, facility. 3 Hallmark

262

THOUSAND

meals donated through Harvesters⁶

$1.0

MILLION

portion of UNICEF greeting card sales contributed back to UNICEF¹ HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

community

su p p or t fo r child re n

Helping to Feed a Record Number of Hungry Children Hallmark’s headquarters and Liberty Distribution Center hosted the most successful food drive in the company’s history last year, raising enough funds for Harvesters to purchase and provide 262,000 meals to Kansas City children in need. The record nearly $90,000 donation to Harvesters, a regional food bank, was enough to keep nearly 500 local children fed for six months. Hallmark employees accomplished this milestone in just two weeks in June with the company’s insights and analytics group achieving the largest donation, averaging 270 meals donated per team member.

VA L E R I E N I C H O L S O N - WAT S O N P R E S I D E N T A N D C E O, T H E CO M M U N I T Y FO O D N E T WO R K

our board of directors. John George, vice president - strategy, Hallmark Greetings, served on the board for 10 years, and as board president from summer 2016 to summer 2018,” she added.

“Hallmark is a true, long-standing partner in the fight to end hunger in our community,” said Valerie Nicholson-Watson, president and CEO, Harvesters — The Community Food Network. “Their employees regularly come together to pack backpacks of food for children and spearhead food and fund drives. We greatly appreciate their commitment and dedication to our mission.

According to Harvesters, the need for food assistance remains high in the Kansas City region, with one in seven people making difficult choices related to food insecurity, such as deciding to pay the rent or medical bills or buy food. Hallmark’s long history of support has helped Harvesters significantly grow its operation and impact to better address this need, now providing more than 47 million meals each year to hungry families and seniors.

“Equally important has been Hallmark’s volunteer leadership on

In 2018, Hallmark’s fundraising efforts kicked off with CANstruction, a

U.N. GOAL

Hallmark is a true, long-standing partner in the fight to end hunger in our community. Their employees regularly come together to pack backpacks of food for children and spearhead food and fund drives.”

Zero Hunger

lighthearted competition to build sculptures entirely of cans and other food-related materials to raise “lifesize” awareness of the drive during the campaign. “CANstruction is important because it shouts to employees that the food drive has begun and unleashes the creative potential of our employees,” said Amy Winterscheidt, national volunteer manager, Hallmark Corporate Foundation. Winterscheidt assembles a team each year to spearhead the Harvesters campaign and engage employees. “It gives employees an opportunity to work together in our fight against hunger, fueling pride in our company and community.”

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CAN-ana Split, Savanna Split and Orange Creamsicle are just three examples of the spectacular oversized displays created to boost awareness of the Harvesters campaign.

Once assembled, the completed CANstructions were displayed around headquarters and employees cast more than 4,500 votes, selecting the “CAN-ana Split” creation from Hallmark’s Distribution Center in Liberty, Missouri, as the overall winner. This was the facility’s first year to participate, as the company worked to ensure both headquarters and Liberty employees were able to be equally engaged participants in the campaign. To cap off Hallmark’s record-breaking campaign benefiting those in need, company leaders performed a three-minute choreographed dance routine in front of hundreds of employees. With 500 children supported, that’s definitely something to celebrate. n

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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support for children

Making Wishes Come True celebrate meaningful moments and working together with Make-A-Wish Foundation on this project was a privilege for all involved.”

What began as one child’s wish culminated in a red-carpet welcome, movie premiere and teamwork across the country, with more than 150 people signing cards of encouragement and gathering under cool, cloudy skies to cheer for a teenager they had never met.

Complete with TV cameras rolling, presentation of his own “star of fame” made by Hallmark and members of the public coming out to show support for Crump, it was a welcome worthy of any A-list star. Inside the Hallmark Visitors Center, a spread of treats greeted guests as they passed by his movie poster to watch his dream come true … Crump on the big screen in his own film: “Peyton’s Wish: Courage Unleashed” where he saves his dog, Luke, from space invaders.

Fifteen-year-old Peyton Crump is just like any other teen boy. He loves science fiction and especially movies such as “Star Wars.” He’s exceedingly talented, creative and teeming with imagination. The only real difference between him and other boys his age is he suffers from a very serious case of uncontrollable epilepsy. Due to his condition requiring multiple surgeries and countless hospital visits, Crump had been teased at school. He yearned to be known as the cool kid instead of the sick kid. However, this had not deterred his ultimate wish of starring in his own superhero short movie. Quickly, word from the Make-A-Wish Missouri chapter made its way to contacts with Hallmark Channel, managed by Hallmark’s Crown Media Family Networks business, and to Hallmark headquarters. Working together across their businesses, Hallmark and Crown Media devised a special event to help Crump celebrate the premiere of a movie in

which he was starring, generously produced by Coolfire Studios, a St. Louis-based production company. “On behalf of Crown Media Family Networks and our partners at Hallmark, we can’t express how honored we were to help make Peyton’s wish come true,” said Lisa Borroso, senior vice president – distribution, Crown Media. “It is our mission to enrich lives and

“The Hallmark family of companies pulled out every stop to make Peyton’s movie premiere stellar,” said Jay Carlson, Make-A-Wish board member. “From the red-carpet walk and ‘Hollywood Star of Fame’ to the wonderful Crown Center facilities where we premiered the film, one could not ask for more — it was perfect. The hospitality was simply incredible; they helped make Peyton’s wish come true.” The impact of the many community and business partners coming together was not just limited to Crump. All those involved benefited from making this event come to life,

HALLMARK AND CROWN MEDIA ROLLED OUT THE

red carpet

TO HELP PEYTON CELEBRATE HIS MOVIE PREMIERE.

Opposite page: Fifteen-year-old Peyton Crump showed off his Hallmark “star of fame,” receiving the royal treatment at Hallmark headquarters. Above: Hallmark employees and community members greeted Crump as he arrived to his own movie premiere: “Peyton's Wish: Courage Unleashed.”

as the family was overwhelmed and expressed appreciation for what they described as a lifetime memory for their family.

after the family had left the event following the screening, Gina Crump, Peyton’s mother, reached out to say, “Thanks again for everything; we’re still basking in the glow.” n

And this feeling isn’t likely to wear off anytime soon … even a full hour

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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support for children

Presenting a Stage for Children to Thrive at Crown Center Forty years in the making, the Coterie Theatre at Crown Center continues to expand and foster childhood creativity in the heart of downtown Kansas City, Missouri. Since its start in 1979, it has given 13,000 performances and served more than 2.2 million youth with live theater and educational programs. Founders Judith Yeckel and Vicky Lee, two graduate theater students from the University of Missouri-Kansas City, began the organization with the intention of empowering children from all walks of life.

As a family destination, our home on the Crown Center campus surrounded by other family-friendly attractions helps us foster a sense of community and inclusion.” J E F F C H U R C H • P R O D U C I N G A R T I S T I C D I R E C T O R , C O T E R I E T H E AT R E

“We like to think of the Coterie as a community, not just a place,” said Jeff Church, producing artistic director, Coterie Theatre. “As a family destination, our home on the Crown Center campus surrounded by other family-friendly attractions helps us foster a sense of community and inclusion.” A nationally recognized forerunner in children’s theater, the Coterie has received critical acclaim including Time magazine’s top five U.S. theaters serving families and young audiences and Travel+Leisure magazine's top 10 list of children's theaters. Church credits that success, in part, to the Theatre’s unwavering mission “to break down barriers between races, genders and generations.” The Coterie’s mission is also embraced by Hallmark, which has provided more than $1 million in grants and sponsorships since its founding, plus another nearly $100,000 by supplementing half of ticket costs for employees and their families to attend performances through the company’s 50/50 program. “I’m very proud of the work at the Coterie and of Hallmark’s sustained support,” said Meghan Craig, senior

writer, Hallmark, and a new Coterie board member. “Their long-standing efforts to nurture theater education and creative expression inspired me to get involved.” For its milestone season — and Church’s 29th year as director — the Coterie is expanding its efforts to bring classics to life, while also tackling important social issues. “When it comes to our programming, we aim to break down the traditional notions of what theater for young audiences should be,” explained Church. This has included two world premieres joining its diverse lineup of plays and musicals: “Becoming Martin”, a production that chronicled the early life of Martin Luther King, Jr., his admittance into Morehouse College at age 15 and the relationship that formed between him and college president Dr. Benjamin Mays; and “Beat Bugs”, a new family musical featuring music by The Beatles. Beyond the stage, the Theatre continues its impact on the community through outreach programs serving older youth.

From “Seussical the Musical” (opposite page) to “Becoming Martin” (above), the Coterie has been providing live theater and programs geared toward youth for 40 years.

“A significant part of our programming is directed toward middle and high school students, which is an age often underserved in the arts,” said Joette Pelster, executive director, Coterie Theatre. The Coterie has several community outreach programs across Kansas City, including in-school workshops, performance camps, playwriting intensives and touring presentations that educate teens about HIV and STD prevention. “We pride ourselves in the fact that our outreach programs don’t look a lot like others,” explained Pelster. “Looking ahead, it’s our goal to continue pushing the boundaries of creativity and content.” n

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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support for children

Bringing Smiles to Filipino Children While there are many traditions during the fall season, for more than 20 years, Filstar Distributors Corporation (FDC) has created a unique one to benefit local children. FDC, the Philippines’ exclusive licensee of Hallmark products, partners with the Leukemic Indigents Fund Endowment (L.I.F.E.) Foundation on a program called Hallmark for L.I.F.E. that helps less fortunate children with leukemia and their families. “Hallmark Philippines collaborates with top local artists to create limited edition L.I.F.E. Christmas products, including greeting cards, gift wrappers and bags,” explained Trina L. Alindogan, vice president, Filstar Distributors Corporation. “These products lift the spirits of the kids, put a smile on their faces, and give them encouragement and support in their fight against leukemia.”

movie theater, attended by the Hallmark for L.I.F.E. team, children of the foundation and their families. The grand finale resulted in Filstar presenting the L.I.F.E. Foundation a check for ₱455,000 ($8,719) from the sale of the products to go toward the care and treatment of the children facing leukemia.

The culmination of the year’s fundraising efforts was a costumed gala held on Halloween at a local

“We’re so grateful to continue this annual program through the caring spirit of Hallmark,” said Alindogan. n

These products lift the spirits of the kids, put a smile on their faces, and give them encouragement and support in their fight against leukemia.” T R I N A L . A L I N D O G A N • V I C E P R E S I D E N T, F I L S TA R D I S T R I B U T I O N C O R P O R AT I O N

Above: Children of the L.I.F.E. Foundation join in the fun at the Halloween gala. Below: Juliana Avelino, a brave cancer fighter, smiles as she serves as the face of the Hallmark for L.I.F.E. campaign in 2018.

Replenishing Santa’s Sleigh for Children of Military Families Support Military Spouses (SMS), an organization that supports brave military wives and husbands who shoulder responsibilities on the home front while their spouses are away, experienced an unexpected warehouse flood in October 2018, following Hurricane Florence. This ruined all donations collected for the organization’s Christmas care packages intended for the children of families across the southern region. SMS reached out to Hallmark for help, and the company answered the call, donating 10,000 gifts such as plush toys, stickers and stationery, totaling nearly $60,000 in retail value. “After Hurricane Florence completely flooded our warehouse, losing thousands of gift items and other products, we never thought that we would be able to replace enough items to make care packages in time for Christmas,” said Diane Rumley, co-founder, SMS. With Hallmark’s help, SMS was able to revive their mission, sending out 2,000 care packages to military families. “I received a call from Mrs. Rumley, in which she expressed her heartfelt gratitude for the generosity that

Hallmark has continued to share with her organization,” said Cora Storbeck, community involvement director and president of Hallmark's corporate foundation. “At one point she was in tears while telling me how much it meant to her.” Hallmark has been a dedicated partner of SMS for nearly six years, donating product totaling nearly $1.3 million in retail value.

“SMS is always incredibly grateful for our donations,” said Storbeck. “We are grateful for all of the good work they do and love supporting them as they support military families who sacrifice so much.” “God provided a Christmas miracle this year,” said Rumley, “and Hallmark is part of that miracle.” n

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

community

skills -b as e d vo lunte e r ing

Hallmark employees stand in front of one of the houses adorned by the boards they painted to beautify the neighborhood and entice potential buyers.

Lending Creative Talents to Aid Hometown Community Hallmark’s #my5days program provides the company’s creative community five paid days each year to step away from their day-today roles and explore passion projects to help spur new ways of thinking and focus on new creative processes. In 2018, Hallmark expanded this program to support community organizations. “The idea to expand this initiative externally came about as a way to make a bigger impact from our Creative Leadership Symposium, a full-day professional development conference for the creative community and business partners,” 25

said Kristi Heeney-Janiak, manager — creative culture and talent development, Hallmark. The 2018 conference theme — “Make. Believe. Change the World.” — naturally inspired symposium planners to extend its impact to benefit nonprofit organizations. “To make it happen, we collaborated with Hallmark’s community involvement team to connect us with local nonprofits to develop a series of workshops that would support their efforts and utilize our creative talents for their benefit,” explained Heeney-Janiak.

One of the popular workshops brought light to an abandoned neighborhood in midtown Kansas City. Working with The Land Bank of Kansas City, Missouri, and the Local Initiatives Support Corporation, artists painted boards that were placed on the windows and doors of foreclosed homes to help entice potential buyers and show something beautiful to the neighbors. “I love how Hallmark offered the option to help out in the community,” explained Grace Speicher, designer, Hallmark, and one of the dozen artists who helped to paint the boards. “Homes that had the

In 2018 the #my5days program was expanded to support community organizations.

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A Hallmark artist paints an inspirational message as part of a mural at Longfellow Elementary School just in time for students to return for the 2018-2019 school year.

decorated panels sold faster and were less likely to be broken into. To be able do that in a beautiful way is a really meaningful thing.” Another workshop involved creating a mural to inspire students at Longfellow Elementary School near Hallmark’s Kansas City headquarters. After hosting a workshop for 5th graders to gain ideas for the mural, Hallmark artists came together to paint the artwork just in time for students to see it as they began the new school year in the fall. “This mural provided our students with renewed hope and purpose,

Hallmark employees join Mothers in Charge members to craft a fabric memorial made from clothing of the mothers' children who were lost to gun violence.

sending a message that people really do care about them,” said Dr. Jimmie Bullard, principal, Longfellow Elementary School. “It is now a part of the Longfellow family history and will be a constant reminder to everyone who views it to follow their heart and reach for the stars!” A more somber, but equally impactful activity, included a partnership with Mothers in Charge, a group of women working to prevent others from experiencing the painful tragedy of losing children to gun violence. Hallmark artists joined the mothers in creating an 8’ x 6’ fabric tree memorial, with leaves on

the tree made from the fabric of the victims’ clothing. “This visual reminder was used at events and rallies and was intended to wake this community up,” said Rosilyn Temple, founder and executive director – Kansas City chapter, Mothers in Charge. Temple, who lost her son, Antonio, when he was just 26, says “When you see this tree, it brings life to the community and makes people think ‘I’m going to do the right thing.’” n

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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skills-based volunteering

Using UK Creative Talent to Celebrate the Holiday Season Leaders at London’s Royal Albert Hall — the 150-year-old iconic performing arts and exhibition center — approached Hallmark Greetings U.K. with a rare opportunity for its creative team to develop an exhibition about the evolution of greeting cards during the Christmas season.

To bring the exhibition to life, Hallmark U.K. designers, in concert with the archives team at company headquarters in the U.S., created and installed 26 stretch canvases in a continuous display throughout the ground floor corridor of the hall. Each of the canvases (examples on opposite page) featured a different

It was a fantastic opportunity to work in partnership with Royal Albert Hall to showcase Hallmark’s heritage and take visitors on an historic journey of how Christmas product has evolved throughout the decades.” ESTHER KEY S E N I O R M A R K E T I N G M A N AG E R , H A L L M A R K U. K .

period in history, beginning with cards produced at the time of the company’s founding in 1910 and showcasing how the company’s designs were inspired and influenced by art throughout each decade — from the Art Deco looks of the 1920s to the Pop Art style of the 1960s to the modern trends of today. This custom Christmas card of Royal Albert Hall created by Hallmark designers raised funds for the Royal Albert Hall charity.

“It was a fantastic opportunity to work in partnership with Royal Albert Hall to showcase Hallmark’s

heritage and take visitors on an historic journey of how Christmas product has evolved throughout the decades,” explained Esther Key, senior marketing manager, Hallmark Greetings U.K. The exhibit also featured original Christmas cards from the 1800s reflecting not only the heritage of the Hallmark brand but how the holiday spirit has endured around the world for nearly 200 years. Coincidentally, Key said, one of the arts center’s founders, Henry J. Cole, helped to champion the first Christmas card in 1843. So for the 175th anniversary of this historical moment, it was a fitting theme for the exhibition. “During its six-week run, more than 200,000 experienced the exhibit,” said Sara-Jane Power, programming manager, Royal Albert Hall. “We were really proud to host it and received some fantastic feedback.” Hallmark designers also created a custom Christmas card featuring Royal Albert Hall that was displayed as part of the exhibition and sold in the Hall’s gift shop, with all proceeds going to the Royal Albert Hall charity. n

Our story began more than 100 years ago on the 10th of January 1910, when 18-year-old Joyce Clyde (J.C.) Hall jumped on a train from Nebraska to Kansas City with just two shoeboxes of picture postcards, big dreams and an entrepreneurial spirit. Later, J.C. was joined by his brothers, Rollie and William, and the company Hall Brothers was formed.

Changing pop culture and the rise of social movements defined 1970s art and design. Hippy, disco and punk movements spilled over into design. Individuals could express themselves creatively through fashion, music and art.

At Hallmark we look forward to connecting with people for years to come through our designs and our words, spreading the magic of Christmas across the globe.

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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inve stm e n ts in e d ucatio n

Supporting 500 Students and Closing the Mentoring Gap One in three young people grows up without a mentor outside their family. Dr. Derald Davis, assistant superintendent, Kansas City Public Schools (KCPS), refers to this as the mentoring gap in America. Hallmark aimed to impact that gap in urban education in 2018 by launching Lunch Buddies to connect students to a support system. Nearly 30 Hallmark employees of varying backgrounds acted as mentors during the lunch hour to provide guidance, encouragement and friendship to elementary school students. As KCPS’ first corporate partner, Hallmark leveraged previous community experience to help develop and structure the new program. Based on the success of the initial program, KCPS implemented Lunch Buddies in 18 elementary schools throughout their district in August 2018, increasing the overall impact of the program to provide one-on-one mentorship to 500 children. “Hallmark has been a terrific partner,” said Davis. “Through this program, we’ve seen a true impact and spurred interest throughout the district. The Lunch Buddies

program is better because of Hallmark’s involvement. Students with mentors return to class happier, feel encouraged and supported, and engage with the teacher and other students in a positive manner.”

corporate contributions manager, Hallmark Corporate Foundation, and Hallmark Lunch Buddy. “We lift them up in any way we can,” she added. In 2019, KCPS plans to roll out Lunch Buddies to additional corporate partners and individuals in the Kansas City community to benefit even more students.

Through this program, we’ve seen a true impact and spurred interest throughout the district.”

“To date, the Lunch Buddies program is making a difference in our community,” said Davis. “Mentees have shown increased school attendance, improved grades and improved behavior. We are optimistic about the future of the program based on what we’ve seen so far and expect to see more great results at the end of the year.” n

D R . D E R A L D DAV I S A S S I S TA N T S U P E R I N T E N D E N T, KANSAS CITY PUBLIC SCHOOLS

Teachers see firsthand the value the program brings. One teacher saw improvement in her student’s behavior since the student was matched with a Hallmark Lunch Buddy and another affirmed that her students are more engaged when they know they will see their lunch buddy every week. “Our goal is to be a positive role model and motivate these kids to stay in school,” said Andrea Gomez,

impact

HALLMARK AIMED TO

THE

GAP IN URBAN EDUCATION IN 2018 BY LAUNCHING

connect

LUNCH BUDDIES TO

CHILDREN TO A SUPPORT SYSTEM.

Top: Three Hallmark employees, retiree Meg Townsend (left), Cora Storbeck (center) and Andrea Gomez, spend time with their Lunch Buddies each week, forming a special bond with the students. Bottom: Retiree Meg Townsend (left) and Andrea Gomez spend time with their Lunch Buddies,0 playing a quick game of Scrabble after lunch.

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Launching Campus Connectors to Support Student Scholars Hallmark took center stage as the presenting sponsor of the 2018 Enactus U.S. National Exposition, an event that draws thousands of entrepreneurial students and business leaders to Kansas City. At the National Expo, Hallmark launched a new brand advocate program designed to enhance the professional development of top college talent involved in Enactus while broadening Hallmarkâ&#x20AC;&#x2122;s profile on college campuses.

Below: Dave Hall, president, Hallmark, greets students at the 2018 Enactus U.S. National Exposition.

Following an application process, Hallmark welcomed nearly 30 students, called Campus Connectors, from 15 colleges into the program, awarding each academic credit and a $500 scholarship. In addition to developing a relationship with Hallmark that may lead to a future career or internship, the students executed two #CareEnough events on campus. These events are designed to bring Hallmark’s vision — to be the company that creates a more emotionally connected world by making a genuine difference in every life, every day — to life in the community, refer students to career opportunities and increase Hallmark’s brand affinity on campuses where the company otherwise may not have a presence. “It’s crucial for us to invest in younger talent to benefit both our internship program and our entry level positions,” said Jessica Cox, college recruiter, Hallmark. “The brand advocate program provides a strategic solution to get us in front of students who exemplify the qualities of a successful Hallmark employee and build our talent pipeline.” In the fall, the Campus Connectors hosted #CareEnough events on their respective campuses. These included

Campus Connectors were hosted at a red carpet event in collaboration with the Expo including a VIP tour of the Hallmark Visitors Center and Hallmark headquarters, as well as an overview of Hallmark’s diverse portfolio of businesses and career opportunities.

an outdoor concert featuring Hallmark giveaways and a photo booth at Southwest Baptist University, a card-sending event with a local elementary school at the University of Arkansas, and a military messages event at Old Dominion University, among others. “It is not only amazing to represent a great company like Hallmark, but it is a practical and realistic learning experience outside of the classroom,” said Odessa Elie, campus connector, University of Arkansas. “It is not an experience I could have ever received sitting in a classroom, and I am so grateful for the chance to be a part of spreading love to others in the name of Hallmark.” n

It is not an experience I could have ever received sitting in a classroom, and I am so grateful for the chance to be a part of spreading love to others in the name of Hallmark.” ODESSA ELIE C A M P U S C O N N E C TO R , UNIVERSITY OF ARKANSAS

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Rewarding Creative Leadership in Schools through Crayola Program In 2018, Crayola partnered with the National Association of Elementary School Principals to present its ninth annual grant awards program, Champion Creatively Alive Children. Each year, the program awards 20 elementary and middle schools from across the country with $2,500 and an additional $1,000 in Crayola products to fund innovative initiatives to increase art-infused education school-wide. Grant recipients report these initiatives result in a more collaborative, creative school culture, increased family engagement and stronger student achievement. To date, the program has impacted approximately 90,000 students. Principal Debbie Broadnax, a 2018 Creative Leadership Grant Award recipient from Atlanta, Georgia, said, “I’d get calls from parents saying, ‘I don’t care which teacher my child gets next year, as long as it is one of the arts-integration teachers.’ The drive toward more effective approaches came from both teachers and learners.” To integrate the arts school-wide, Broadnax knew she needed U.N. GOAL

Quality Education

to address three essentials for effective implementation — professional development (PD), peer observations from fellow teachers and best practice procedures. “Arts integration PD isn’t about sitting and listening; by its nature it is hands-on, with active application of new ideas,” explained Broadnax. “We reimagined our school vision by making a three-dimensional mobile. That creative, interactive process helped make our thinking visible as we articulated priorities.” The grant program has also been a forum to help educators use the arts to benefit students who struggle with challenges related to human literacy — the knowledge of and fluency in communicating with people. Bobby Riley, principal in Burlington, Vermont, and 2018 grant award winner, uses the arts as therapeutic listening to improve human literacy. Riley’s grant aided him in developing a process that focuses on achieving desired long-term results by following a series of six R’s: Readiness, Recognize, Regulate, Respond, Reflect and Restore.

Crayola grant-winning schools and educators, such as Spring Ridge Elementary in Frederick, Maryland, use the arts to build social-emotional skills, also known as human literacy.

“Kids don’t intentionally get in trouble,” said Riley. “When they act out, there is always something else going on,” he continued. “The arts help, especially in that moment, kids who have difficulty articulating what is at the root of the issue.” “Each of the 20 school recipients of the Champion Creatively Alive Children grants brings new insights that help Crayola strengthen the role of art in education — which is core to the company’s mission and essential for students’ well-rounded education,” said Cheri Sterman, director of education, Crayola. n

Applying Creative Talents to Benefit Kansas City Music Students At a creative workshop in June, Hallmark artists used their creative talents on an unusual medium: broken and unplayable musical instruments. Artists turned unwanted instruments into unique works of art, helping to raise more than $25,000 at the fifthannual Art That Blows event and auction. The event benefits Band of Angels, a Kansas City-based nonprofit partnership between local music store Meyer Music and FOX4 Kansas City. Band of Angels collects donated musical instruments, restores them to playing condition and distributes them to Kansas City children who want to study music but don’t have access to an instrument due to cost. Band of Angels has donated more than 1,000 instruments to disadvantaged students in 60 school districts within a 100-mile radius of Kansas City.

the year to gain new perspective, creative renewal and inspiration. During the five-year history of the event, nearly 100 Hallmark artists have given damaged and unplayable instruments a new life, creating one-of-akind treasures with repurposed pieces of clarinets, flutes, saxophones and other instruments. “Many of our artists use their talents and #my5days for the greater good to benefit local community partners,” said Sabrina Wiewel, senior vice president — customer development, Hallmark Greetings. “These artists chose to contribute to this cause, taking otherwise unwanted materials and creating something new and beautiful: wonderful works of art.” n

Event proceeds from Art That Blows also fund scholarships for summer music camp to further music education beyond the classroom, providing one-on-one instructor attention that is not available in larger classes during the school year. “Supporting Art That Blows was a natural fit for us because it combines creativity with giving back to our community, both of which Hallmark is passionate about,” said Darren Abbott, senior vice president — creative, Hallmark and a Band of Angels board member. “We were thrilled to host artist workshops for this event so that Hallmark employees could contribute to this worthy cause,” he said. The workshops were a result of Hallmark’s #my5days program, which allows the Hallmark creative community five work days doing whatever they please throughout

Hallmark artists transform an unplayable violin (bottom) into a beautiful piece of art (top).

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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cau se -re l ate d a ssista nce

Breaking Records During AIDS Walk Hallmark generated record support for the Kansas City AIDS Walk in April to benefit the metro HIV/AIDS community. Hallmark employee and corporate donations totaled nearly $25,000, the largest amount in Hallmark’s 19-year history with the event. The company also hit a new single-year participation high in 2018, with nearly 80 Hallmark employees walking to raise awareness about HIV and AIDS in the Kansas City community. “I walk to raise awareness of HIV/ AIDS, to stand strong for those who are too afraid or ashamed and to fight against the negative stigma,” said Doug Brown, senior graphic designer, Hallmark, and team leader for the walk.

The record-breaking donation and turnout benefited four major organizations in the AIDS Service Foundation in Kansas City: the KC Care Health Center, SAVE, Inc., Good Samaritan Project and Hope Care Center. For nearly 20 years, the Hallmark Employees Reaching Equality (HERE) employee resource group (ERG) has supported and participated in the Kansas City AIDS Walk. “When HIV/AIDS is defeated,” Brown said, “It will be because of the open and loving dialogue between individuals and communities that often is prompted by events like the annual walk.”

At the 2018 event, walkers in their Hallmark purple volunteer shirts carried artfully created signs and passed out greeting cards to show love and support to the Kansas City HIV/AIDS community. In 2015, the walk evolved from strictly an ERG-led event to an official Hallmark corporate volunteer event, tapping participants and volunteers from the entire Hallmark community to add muscle to the cause. In addition to surpassing 2017’s monetary donation by 22 percent, Hallmark’s 2018 employee participation exceeded the previous year by 31 percent. n

A record nearly 80 Hallmark employees walked in the Kansas City AIDS Walk to raise awareness about HIV and AIDS in the Kansas City community.

Coming Together to Support Premature Babies in the UK Every year across the U.K., more than 95,000 babies require care within specialist neonatal units. That stunning statistic from Bliss, a U.K.-based charity that aims to give premature and sick babies the best chance of survival and quality of life, combined with an inspiring personal story from Good Morning Britain’s weather presenter Laura Tobin, caused Hallmark Greetings and Bliss to jump at the chance to work together to create a collection of cards with families like Tobin’s in mind. “Our baby Charlotte was born extremely premature — three months early — and it was a very stressful time,” explained Tobin. “Friends and family want to offer support, but it’s hard to know what to say.” Well-intended wishes may have resulted in sending traditional cards with a baby on them, or cute images, but that can be upsetting to parents of premature babies as the images remind them of what they may be missing — a healthy baby at home. “We looked to design a new type of card with input and advice from a group of parents whose babies were born premature or sick and had spent time in neonatal care,” said Ruth Turner-Blood, Hallmark U.K. Writing Studio. “Our aim was to

Above: Custom cards from Hallmark U.K. offer comfort to parents of premature and sick babies. Left: Ruth Turner-Blood (left), Lauren Tobin, Good Morning Britain host (center) and Tamsyn JohnstonHughes, were all smiles after Hallmark created the new cards.

develop a deeper understanding of what these parents had experienced, how they felt at each step of their baby’s journey, and what they really wanted and needed to hear from their friends and family at that time.” This insight was combined with further research to create a collection of four beautiful cards currently sold on Amazon, plus select Tesco, Morrisons and specialty card and gift shops in the U.K.. In addition, nearly 10 percent from the sale of each card goes directly to Bliss to assist their efforts. To date, consumers have helped raise nearly £3,000 or nearly $4,000.

“I thought it was such a lovely idea, tears came to my eyes,” said Tobin when she saw the cards unveiled on air to 700,000 viewers for the first time. “Having special premature baby cards will mean people know they are offering support to the parents at what is a very emotional time.” “We are absolutely delighted that Hallmark has developed these beautiful cards especially for parents of premature and sick babies,” said Caroline Lee-Davey, chief executive, Bliss. “These tailor-made cards are perfect for many of those situations and help parents feel they are not alone.” n

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Thanking Thousands of Beloved Teachers Across America In 1903, Crayola co-founders Edwin Binney and C. Harold Smith created the first box of crayons. Alice Binney, Binney’s wife and a former schoolteacher, named the new crayons “Crayola.” “Teachers have been a core part of Crayola's heritage, and we couldn’t think of a better way to celebrate Crayola's 115th birthday in 2018 than by paying homage to our legacy and thanking teachers for all that they do,” said Smith Holland, president and CEO, Crayola. Crayola’s Thank A Teacher initiative collected more than 300,000 thankyous for teachers. National Teacher Appreciation Day on May 8, 2018, kicked off the movement, with Crayola employees from across the country — including Holland — visiting more than 300 schools to hand-deliver personal notes of appreciation. The company provided each school $500 in supplies, an oversized box of crayons with thank-you notes and custom crayon boxes for every teacher. Crayola’s well-known mascot, an eight-foot green crayon character named “Gus,” even paid a visit to several schools to help colorfully express the company’s admiration. “A simple ‘thank you’ can go a long way,” said Mimi Dixon, brand equity, 37

strategy and activation manager, Crayola. “When we asked teachers what they were most motivated by, we learned time and time again it was handwritten notes. They often mentioned how their students gave them thank-you notes about what they were able to help them accomplish and they found that extremely rewarding. “

Crayola engaged celebrities Debra Messing and Erin Andrews, who thanked their own teachers and encouraged the nation to join them, both on social media and through a dedicated microsite. The site featured a sweepstakes and contest for those who submitted handwritten thank-you notes for teachers, providing a chance to

TH ROUGH THE THANK A TEACHER MOVEMENT, CRAYOLA: Collected

300,000 Visited

300

schools to personally thank teachers

Awarded

$225,000 Donated

digital and social media teacher thank-yous

$150,000

in cash and prizes to teachers, schools and families

in supplies to schools across the country

win prizes for educators, schools and families.

efforts Crayola had produced to recognize teachers to date.

“Throughout this campaign, there were tears, hugs, smiles, and just so much gratitude as employees went out into the community and schools,” explained Dixon. “It was so rewarding, both to teachers and our own Crayola employees. It gave them a chance to champion the brand and say ‘thank you’ to a local school or teacher.”

A grateful recipient remarked, “As an educator myself, I cannot tell you how underappreciated so many teachers often feel. The teachers and administrators were simply awestruck that a person from such a well-known company would take the time to physically come face-toface with educators and say, ‘thank you.’” n

Students at Merriam Park Elementary in Kansas (above left) and Longfellow Elementary in Missouri (directly above) enjoyed seeing “Gus” as the teachers enjoyed receiving thank-you cards, appreciation from their students, and $500 in school supplies as part of Crayola's Thank A Teacher event on May 8, 2018.

Dixon noted the Thank A Teacher movement was one of the largest HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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volunteers in action 1. Beach Cleanup. Hallmark colleagues and their families in Hong Kong participated in a beach cleanup organized by Shenzhen Giving Tree Eco Volunteers Association in November 2018. Volunteers picked up garbage washed ashore by recent typhoons. 2. Custom Cards. Since 2015, Hallmark Business Connections has developed beautiful holiday cards for the University of Kansas Health System. Craig Lueck, master artist, created an original watercolor-inspired card for 2018 and visited the hospital to sign the cards and interact with staff. 3. Holiday Family Event. Julia Moreno Akins (8), Santa Claus and Clara Moreno Akins (6) (left to right, children are daughters of Hallmark employee Emily Akins) enjoyed the annual holiday family night at Hallmark headquarters in December 2018. Shopping, kidsâ&#x20AC;&#x2122; activities, a concert, and of course, Santa, provided a festive atmosphere for Hallmark employees and their families to ring in the holiday season. 4. Helping our Veterans. Hallmark employees Trish Cruz, Steve Goslin and Ryan Bodenstab (left to right) acted as judges for the Creative Patriotic Art Contest at the Hallmark-sponsored VFW National Convention in Kansas City, Missouri, in July 2018.

5. Women Mentors. Jenny Lee, creative marketing studio and brand marketing director, Hallmark (left), co-mentored Tiare Tonga as part of a program at Amethyst Place, which supports women recovering from drug and alcohol addiction, and their children. Lee and her friends spend two evenings a month with Tonga, and throughout their relationship, Tonga has reached one year of sobriety, is strengthening the relationship with her two sons, completed her GED and enrolled in her first college course at Penn Valley Community college.

3 39

6. Helping Harvesters. In December, Cora Storbeck, community involvement director and president of Hallmark’s corporate foundation (left), presented a $20,000 check to Valerie Nicholson-Watson, president and CEO, Harvesters, and Paula Pratt, director of community outreach, Harvesters, to benefit the food bank’s BackSnack program. Volunteers also conduct monthly packing sessions, preparing approximately 4,000 backpacks each month to help feed hungry children. 7. Giving Back to Business School. In April, Dave Hall, president, Hallmark, spoke at the UMKC Bloch School of Business as part of the Regnier Institute for Entrepreneurship and Innovation’s First Wednesdays Speaker Series. The event featured business school students, faculty and community members, as Hall highlighted his career journey.

8. Creative Materials for Kids. Hallmark’s creative art experience for children, Kaleidoscope, provided art supplies for Turn the Page KC, a reading event supporting students achieving reading proficiency at grade level or above for all third graders in Kansas City, Missouri. HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

Hallmark’s rich history of developing environmentally responsible initiatives dates back to 1943 with the launch of our paper-recycling program. While the company’s efforts started decades before the environmental movement began, “small steps, big impact” continues to be its sustainability motto carrying Hallmark through 2018 and beyond.

s u st a in a bility

Supporting a healthy planet by using resources responsibly.

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sustainability

fact s + fig ure s Changes in the marketplace are always at play. As Hallmark builds toward its vision of a more emotionally connected world, it also focuses on what the company can do to sustain it. Hallmark continues to make positive progress toward its ambitious 2020 goals. The company currently expects to meet or exceed its 2020 goals for paper, waste and energy, and is projecting it will fall short of its goal to reduce its water consumption by 50% (see page 48 for full article). “Overall, we are very pleased with the progress we have made,” said Craig McMonigle, vice president – supply chain innovation and product integrity, Hallmark. “We remain committed to better understanding our water footprint and the areas of biggest impact and risk along our broader supply chain.” Hallmark is also expanding ties to global sustainability efforts by identifying examples in this year’s report that align with the U.N.'s Sustainable Development Goals (see inset feature on this page), a global blueprint to achieve a better and more sustainable future for the planet.

In addition, this past year Hallmark collected a record number of mobile phones, which were wiped clean and given to a local domestic violence shelter; removed the use of Styrofoam from its facilities keeping more than 350,000 cups from entering landfills; implemented the HERproject to help women take charge of their health at an overseas supplier; and its Crayola business created a new product to turn old crayons into new creations.

AWARDS Guangdong Cleaner Production Partner (Supply Chain) Award from 2012–2018

2018 also saw Hallmark update its code of conduct to be more thorough in further advancing its focus on women’s empowerment, embarked on new printing methods, adopted a new line of environmentally friendly transportation carriers, and found a new process to eliminate waste while installing more than 6,400 new store accounts. n

U.N. Sustainable Development Goals Goal 2 Zero Hunger Goal 4 Quality Education Goal 5 Gender Equality Goal 6 Clean Water & Sanitation Goal 10 Reduced Inequalities Goal 12 Responsible Production & Consumption Goal 13 Climate Action Goal 15 Life on Land

2018 HIGHLIGHTS

47MM total gallons of water reduced

42.7MM total pounds of waste and special handling materials diverted from landfills; equating to a

92% diversion rate

TON

98k total metric tons of CO2 emissions reduced

GOALS

RESULTS

98%

of paper from known, sustainable sources

99%

of paper from known, sustainable sources1

55%

recycled fiber in packaging and merchandising

53%

recycled fiber in packaging and merchandising1

50%

FSC速 Chain of Custody Certified Fiber

37%

FSC速 Chain of Custody Certified Fiber2

25%

reduction in copy paper use

34%

reduction in copy paper use

50%

reduction in water consumption

37%

reduction in water consumption3,4

95%

reduction in waste and special handling materials to landfill

77%

reduction in waste and special handling materials to landfill3,4

50%

reduction in greenhouse gas emissions

50%

reduction in greenhouse gas emissions3,4

1 All

paper goals relate to products, packaging, merchandising and direct mail materials purchased through North America and Asia. stands for Forest Stewardship Council速 3 Data includes Hallmark Greetings; Hallmark Retail; Hallmark Home & Gifts; Crayola; Hallmark Business Connections; Hallmark Canada; DaySpring; Center, Texas, facility; Lawrence, Kansas, facility; Leavenworth, Kansas, facility; Metamora, Illinois, facility; Liberty, Missouri, facility; Carefree Caves facility. 4 Base year: 2006 2 FSC速

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Clean Water & Sanitation

Learning from Sustainability Efforts Since 2006, Hallmark has been working toward its ambitious 2020 sustainability goals. During this time, it learned more about its operations and the opportunities for environmental improvements. Through employee engagement and behavioral change, Hallmark reduced its landfill waste and directed remaining waste to environmentally responsible alternatives such as increased recycling and composting for disposal. Hallmark also reduced its energy consumption by adopting LEAN processes and improving automation in its operations while implementing technological advancements such as LED lighting. This allowed Hallmark to decrease emissions by 50%, enabling the company to deliver on its 2020 goal two years early. Further, the company pursued several projects to decrease its water usage, such as renovating restrooms with lower flow fixtures and improving the watering technology of lawns and plant beds.

Collectively, these projects resulted in a 37% decrease in water consumption from Hallmark's original 2006 baseline. In spite of these efforts, Hallmark will likely not meet its water reduction goal. Hallmark continues to take steps to reduce its impact on water from raw materials to manufacturing, including: • Identifying areas of water-stress or scarcity in its supply chain • Inserting devices in the HVAC systems to reuse water versus sending it to sanitary sewers • Changing behavior-based usage of water in food preparation areas • Increasing use of native landscaping “These 2020 challenges required us to think differently about how we operate our business as we dramatically reduced our energy, waste and water,” said Craig McMonigle, vice president – supply chain innovation and product integrity, Hallmark. “We are thrilled with these accomplishments and remain committed to aggressive stretch goals even if it will result in falling short of our aspirations in some areas.”

The company’s learnings also enabled Hallmark to better understand the classification of its Scope 1 (direct energy emissions) and Scope 2 (indirect energy use) emissions. It became clear the company’s influence on Crown Center assets — such as office space leased by its tenants and hotels and retail stores operated by third parties — was limited. As a result, the company restated its baseline metrics in 2018 to exclude Crown Center from its reporting. This creates consistency with its pre-2016 baseline. This shift will produce a positive effect on Hallmark’s results as compared to its 2016-2017 reporting and brings the company in line with standardized reporting for Scope 1 and Scope 2 emissions as set by the Greenhouse Gas (GHG) Corporate Protocol Standard and reporting to the Carbon Disclosure Project. The company believes this will support greater transparency and allow a better basis for comparison in measurement going forward. n

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Collecting and Recycling Electronic Waste to Benefit the Planet Each spring, a parking lot at Hallmark headquarters in Kansas City, Missouri, is transformed into organized traffic lanes dotted with orange cones. Dozens of volunteers with ready hands jump into action as hundreds of employees drive through and drop off unwanted, broken or outdated electronic equipment. The company’s electronic waste (e-waste) event has also spurred similar collections at its facilities in Liberty, Missouri, and Lawrence and Leavenworth, Kansas. In May 2018, employees turned in a record 215 mobile phones for recycling. The phones were wiped clean and donated to Hope House, a Kansas City organization that provides shelter and supportive services to survivors of domestic violence, so they can be used by those in need. In addition, during

the past two years, audio equipment that has been collected was donated to the Audio-Reader Network, a reading and news information service in Kansas and western Missouri for blind and visually impaired individuals and those unable to read. Since 2007, Hallmark’s risk management group has sponsored the e-waste collection event for employees, helping to recycle more than 486,000 pounds of e-waste. “It’s critical for our planet that we dispose of unwanted e-waste in a responsible manner,” said Sharon Davis, safety analyst – risk management, Hallmark. “Anything we can do to reduce our impact on the world environment, even if it’s just a drop in the bucket, is a start.”

It is our responsibility as good corporate citizens to safely dispose of e-waste materials, and by engaging employees in these events we can get more people thinking about this issue.”” M I C H E L L E T O E L K E S • C O R P O R AT E R I S K C O N T R O L M A N A G E R , H A L L M A R K

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For Hallmark’s efforts, Davis said her team works with vendor EPC, Inc. to recycle company and employee e-waste domestically. EPC works with certified recyclers to ensure that all processes are performed in an ethical, legal and environmentally safe manner. Many electronic parts can be recovered for reuse or recycling, such as components made of gold, silver and copper. Improper disposal of e-waste that ends up in landfills or incinerators has a negative impact on air, water and soil quality. Through a combination of responsible recycling and purposeful donations, the annual event reduces the amount of e-waste entering landfills or being incinerated, and it benefits people in the community. “E-waste is one of the many types of waste that Hallmark recycles and tracks for our corporate sustainability goals,” said Michelle Toelkes, corporate risk control manager, Hallmark. “It is our responsibility as good corporate citizens to safely dispose of e-waste materials, and by engaging employees in these events we can get more people thinking about this issue.” n

Opposite page: Harvey, an employee from EPC, the company that takes the donations to recycle, carries a TV set, as Hallmark employees (from left) Tony Stevens, Angie Freund and Sharon Davis also assist with smiles. Above: Don Hall, CEO, Hallmark, makes his own contribution to the environmental effort.

486

THOUSAND POUNDS

215 12

of e-waste recycling in event's history record amount of mobile phones turned in at 2018 event years the event has taken place

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Responsible Production & Consumption

“Upcycling” Old Crayons through Crayola’s Crayon Melter In recent years, a trend emerged of creating art with melted wax. Typically this involves heating crayons, candles or other wax with a hair dryer and letting the wax drips fall on paper or canvas. Social media fueled the enthusiasm (#meltedcrayonart) for this crafty project. Crayola saw an opportunity in 2018, with the environment in mind, to enhance this trend. Consumers with children often have a box or drawer full of used and broken crayons in their homes. “We set out to create a safe, easy way for kids to create with melted wax,” said Scott Zelachowski, senior product manager, Crayola. “An additional benefit was finding a way to reuse those old crayons that tend to accumulate to help reduce waste.”

The result was the Crayon Melter, a pen-shaped tool that safely heats broken bits of crayons so they can be melted and applied to other surfaces. Designed for kids age 8 and above, the Crayon Melter has a low-heat tip to apply the wax, and it quickly dries to the touch. The melted crayons can be applied to poster board, cardboard, wood, glass and canvas, adding texture and color. “The upcycling trend (aka ‘creative reuse’) is something that resonates with our consumers,” Zelachowski explained. “Taking used crayons, transforming them into something new through a creative, artistic process and saving them from the trash or landfills is a win-win for our consumers and the environment.” n

Named one of the Best Toys of 2018 by Parents Magazine

Crayon bits are melted in the low-heat tip of the pen-shaped tool for drawing on a variety of materials.

U.N. GOAL

Responsible Production & Consumption

Finding Alternatives to Styrofoam in Food Facilities In November 2018, Hallmark permanently eliminated all Styrofoam products used in food service operations at its headquarters in Kansas City, Missouri, and its facilities in Liberty, Missouri, Leavenworth, Kansas, and Lawrence, Kansas. The Crown Room’s Styrofoam coffee cups and bowls were replaced with compostable paper versions, and Styrofoam drink cups were replaced with recyclable plastic. These earthfriendly products will keep more than 350,000 Styrofoam cups and containers out of the landfill each year. “Previously, Styrofoam ended up in Hallmark’s waste-to-energy stream, and it could be burned, but only if it was clean and contained no food waste,” said Rob Ludwig, product integrity strategist, Hallmark. “Without Styrofoam from the Crown Room, Hallmark’s waste streams are much cleaner.” All of the Crown Room’s new disposable serving containers can be composted or recycled. The paper products are composted at Missouri Organic, Hallmark’s partner for composting food waste, and take just six weeks to break down. In addition to keeping Styrofoam out of landfills, using alternative

materials is better for employee health. Emerging research suggests that heating or consuming hot food in Styrofoam may have detrimental health effects. “We partnered with our suppliers to find the right products,” explained Laura Battle, corporate food services manager, Hallmark. “We tested them for quality and made sure the new containers were easy to use and the cups didn’t sweat.” Employee reaction to this change has been positive. “We’ve put up extra signs to help employees and guests understand how and where to recycle the new items,” Battle said. “We’re also offering a 25-cent ‘bring your own cup’ discount. We have received many compliments from employees.” “Even in food service, Hallmark has a long history of innovation, of being forward-thinking and making an environmental impact,” said Sally Luck, director of corporate services and wellness, Hallmark. “We have been composting food and tray waste in the Crown Room since the mid-2000s. This change demonstrates that we’re taking steps to work toward the goal of zero waste and being more sustainable in our food service operations.” n

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

EARTH-FRIENDLY PRODUCTS KEEP

STYROFOAM ITEMS FROM THE LANDFILL ANNUALLY.

CHECK OUT THE

LINKS

O N TH I S PAG E

sustainability

an e m p owe re d wo r kfo rce

Supporting Women’s Empowerment through the HERproject®

With Hallmark sponsorship, a company printing partner in China, Golden Cup, provides employees health information and peer-mentorship through HERproject.

Many workers for Hallmark’s Chinese suppliers are women who come from rural areas without much formal education. Some also lack health information and exposure to basic health services they can trust. In 2018, Hallmark partnered with the HERproject to address this concern, starting a peer-mentor pilot program with Golden Cup, one of Hallmark’s printing partners in Dongguan, China. HERproject is a program developed by Business for Social Responsibility (BSR), a global nonprofit sustainability organization which empowers low-income women working in worldwide supply chains through workplace-based interventions.

U.N. GOAL

Gender Equality

Golden Cup collected mid-term feedback from the women in the HERproject and they expressed having: • More confidence to communicate with others and to speak up in a group • Improved communication skills and enhanced relationships with others • More attention from their families • Appreciation for the company’s support for females “Women’s empowerment is a growing trend in corporate social responsibility, and it’s a priority for Hallmark and our global supply chain,” said Kristin Edie, product integrity and engineering director – Asia-Pacific, Hallmark. “It fits well with Hallmark’s mission, brand and core consumer. It’s all about caring for women.” Hallmark is a main sponsor of the HERproject at Golden Cup, and the chosen program, called HERhealth™, places an emphasis on women’s health. “We looked for a factory partner interested in offering this benefit to its female employees, and we wanted a smaller environment to test the program,” said Edie. “One of the most important aspects is to get factory leadership on board with this training. Golden Cup allows participating female employees time

off during the work day to attend meetings, and Hallmark covers the cost of the program.”

We believe our supply chain is best served when the women working in it are healthy and engaged.”" KRISTIN EDIE PRODUCT INTEGRITY AND E N G I N E E R I N G D I R E C TO R – A S I A - PA C I F I C , H A L L M A R K

healthy and their families are cared for, they can contribute more effectively at work.” The program kicked off in fall 2018 and continues through June 2019. Hallmark team members have attended HERproject meetings to observe and evaluate the impact. The plan is to expand the program to a second factory in 2019. “It can be less common in Chinese manufacturing for women to be promoted to leadership roles,” Edie said. “The HERproject makes these women more visible and opens up possibilities for potential advancement. It shows that the companies — both Golden Cup and Hallmark — care about the wellbeing of the workers.” n

Golden Cup identified women to attend the HERproject meetings to learn about personal hygiene and maternal health, reproductive health, and staying engaged and connected with a “left behind” child — since women often work away from their children for months at a time. The women then become peer leaders and share the information with coworkers in small groups. “We believe our supply chain is best served when the women working in it are healthy and engaged,” Edie explained. “We want women to have a voice and bring forward their ideas to management. When they are

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

sustainability

•

an empowered workforce

Updating Supplier Code to Protect Workers Hallmark and Crayola partnered with two international human rights organizations to revise its Supplier Code of Conduct in 2018. Business for Social Responsibility (BSR) and The Mekong Club both provided counsel on how Hallmark could better communicate its goals for women’s empowerment and modern slavery prevention within the supply chain. The Supplier Code of Conduct outlines Hallmark’s expectations for suppliers and subcontractors around the globe to operate facilities and conduct employee relations in an ethical manner. “We expect our suppliers to follow strong ethical standards, to respect the rights of the individuals they employ, and to demonstrate stewardship of the environment,” said Kristin Edie, product integrity and engineering director – AsiaPacific, Hallmark. In early 2018, Hallmark joined The Mekong Club, a nongovernmental organization focused on preventing human slavery, to gain access to best practices for preventing modern slavery and to participate in networking groups with other retailers and brands sourcing in Asia. The Mekong Club estimates 45.8 million people in 167 countries are enslaved by economic conditions or forced labor, often by jobs within global supply chains. U.N. GOAL

Gender Equality

“We’re taking the lead to educate our suppliers about what modern slavery means so they can do the right things,” said Rob Ludwig, product integrity strategist, Hallmark. “For example, an employee should not be charged fees for any recruiting costs, nor should a factory hold identity papers or land deeds for people while they are employed. Instead, they can install lockers for employees to have a secure place to store their valuables of this nature.” According to BSR, a global nonprofit organization dedicated to sustainable business practices, women represent a vast majority of workers in global supply chains, yet they face inequality, sexual harassment, unmet health needs, weak maternity rights, and discriminatory practices in the workplace. “BSR encourages businesses like Hallmark to take a stand to improve the situation for women around the globe,” Ludwig said. “It’s a

It’s a matter of using our influence to tackle gender issues throughout the supply chain.” R O B LU DW I G P R O D U C T I N T E G R I T Y S T R AT E G I S T, HALLMARK

matter of using our influence to tackle gender issues throughout the supply chain.” To better address women’s rights issues, Hallmark and Crayola made the following changes to their Supplier Code of Conduct: • Declared that all workers should receive equal compensation for work of equal value • Defined and banned sexual harassment • Directed that women could not be refused hire or be dismissed for being pregnant, and described health precautions needed for women who are pregnant or breastfeeding “We want to be proactive about potential risks and legislation that could impact our business,” Edie said. “By keeping our Code of Conduct updated and in sync with global issues, we ensure we are protecting the safety of workers at all levels of our supply chain.” n

GOAL

Children of factory employees create designs using donated Crayola products (above) as Hallmark's Kristin Edie interacts with some of the younger children (right) and parents admire cards made by their children (lower right).

Enhancing Family Friendly Spaces Two of Hallmark’s suppliers in Dongguan, China — QP and Golden Cup — participate in the Family Friendly Spaces (FFS) program, facilitated by the International Council of Toy Industries Ethical Toy Program. This initiative operates educational summer camp programs for the children of factory employees in a safe space at the factory. It provides a way for families to be together during the summer months, since they are often separated when parents work in large cities and children stay in their home villages to attend school. In 2018, Hallmark donated greeting cards and Crayola products to nearly 700 children in the 18 factories participating in the FFS program. The children could take the Crayola products home with them, and they used their Crayola markers to decorate greeting cards for their parents as keepsakes at the end of the program. “For many parents, it was the first greeting card they had ever received,” said Kristin Edie, product integrity and engineering director – Asia-Pacific, Hallmark. “They work hard to produce thousands of Hallmark greeting cards every day, and this one was from their child, expressing gratitude at having been able to spend time together because of this program. It really helped the factory employees connect with the meaning and value of a greeting card.” n

For many parents, it was the first greeting card they had ever received.” KRISTIN EDIE PRODUCT INTEGRITY AND ENGINEERING D I R E C TO R – A S I A - PA C I F I C , H A L L M A R K

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

sustainability

e nviron m e nta lly fr ie nd ly

Leading the Way in Sustainable Printing As one of Hallmark’s main printing partners in Dongguan, China, Golden Cup has made sizable investments in sustainable operations and noteworthy improvements in its overall carbon footprint. “Since 2006, they have invested $3 million in nearly 70 projects to make strides toward responsible environmental progress,” said Kristin Edie, product integrity and engineering director – Asia-Pacific, Hallmark. “They have been recognized recently by the Hong Kong and Chinese governments with a number of prestigious environmental excellence awards.” By transforming Golden Cup into a significantly more energyefficient business, they have earned a reputation in China as a leader in “green printing.” Golden Cup executives share their environmental best practices with other companies through seminars and workshops. “About a decade ago, Hallmark started encouraging our suppliers in Asia to pursue energy management in their factories. It’s good for the environment, and it helps lower costs,” Edie said. “While other suppliers dedicated some efforts to sustainability, Golden Cup took the challenge and ran with it.”

Highlights of Golden Cup’s continuous environmental improvement since 2006

Patrick Yeung, managing director, Golden Cup (right), receives a gold level environmental excellence award for the company’s progress within energy management from Leung Chun-ying, chief administrative executive officer, Hong Kong.

20%

reduction in energy/ electricity consumption

95%

reduction in VOC emissions (air quality)

70%

reduction in industrial water and chemical waste usage

20%

reduction in solid waste

U.N. GOAL

EMBRACING GLOBAL EFFORTS TOWARD AN

improved

Responsible Production & Consumption

ENVIRONMENT.

Five key projects Golden Cup has implemented to reduce its carbon footprint include:

Golden Cup reports these five measures reduce energy use by 2.5 million kilowatt hours each year, which, in terms of purifying the air, is the equivalent of planting 29,000 trees.

In addition, Golden Cup is committed to recycling to save natural resources and to reduce environmental pollutants. They follow the “4R Principle” (Reduce, Reuse, Recycle, Replace) and actively recycle materials such as paper scrap, printing plates, plastic wrap, shredded films, batteries and more.

Installing energy-efficient lighting throughout the production factory

2. Using a solar-powered water heating system 3. Purchasing energy-efficient, eight-color printing presses 4. Replacing decentralized units with energy-efficient centralized vacuum, compressed air and fountain solution dampening systems 5. Installing online smart metering systems to closely monitor energy consumption

“Golden Cup has gone above and beyond,” Edie explained. “From a brand perspective, they are aligned with Hallmark’s values of caring for employees and for the environment, and their record of success in environmental sustainability is remarkable.” n

REDUCED ENERGY USE MILLION KILOWATT HOURS

PLANTING

THOUSAND TREES

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

U.N. GOAL

sustainability

•

environmentally friendly

Responsible Production & Consumption

Reducing Environmental Impact of New Store Installations Hallmark won the Dollar Tree business in 2017 and needed to convert 6,400 greeting card displays in stores across the country in just 13 weeks between May and August of 2018. “With that many stores, we looked for innovative ways to accomplish the task to maximize the effort and minimize any inconveniences for the stores and their consumers,” explained Pam Oberdiek, mass retail execution leader, Hallmark. Equally important, Hallmark wanted to be mindful of the environmental impact, looking for ways to reduce the amount of waste that would traditionally go to landfills from store conversions and increase opportunities to recycle. “‘The way we had always done it’ was not going to cut it,” explained Oberdiek. “As a result, we created a new model of product preassembly, delivery and removal of prior materials that was going to expedite the process.” Instead of requiring countless trucks to be dispatched from distances across the country to fill market store orders, Hallmark first assembled a main “hub” in Edwardsville, Illinois.

Hallmark converted

6,400

greeting card displays across the country in

13 weeks

Workers put materials in recyclable green bags, keeping 2.3MM pounds of old product out of landfills.

Then more than 60 depots were identified throughout the U.S. that dispatched product for stores in regions across the country. With a same-day delivery and return approach, this reduced the amount of trucks on the road, emissions in the air, duration of the crews at the stores, dumpsters needed at the locations, and eliminated back room storage, a key concern for the customer. The result was an unprecedented volume of stores in an unprecedented time frame, with an environmentally friendly impact: • Eliminated the use of 6,400 dumpsters due to same-day removal and setup process, and reduced overall operational cost by millions of dollars • Reduced transportation costs and CO2 emissions by not requiring the traditional amount of large trucks on the road going direct to each location • Enhanced recycling, keeping 2.3 million pounds of old product out of landfills n

U.N. GOAL

13 Climate Action

Joining the SmartWay® Transportation Movement In 2018, Hallmark global transportation joined the SmartWay® Transport Partnership. Through the SmartWay program, participating companies partner with the U.S. Environmental Protection Agency (EPA) to assess and improve the environmental and energy efficiency of supply chain freight transportation. Freight transportation is a large contributor to air pollution, and U.S. trends indicate rapid growth in freight activity. Launched in 2004, the SmartWay program helps its partners identify and select more efficient freight carriers, equipment and operational strategies to improve transportation sustainability. “This program brings visibility to a company’s carbon footprint for freight transportation,” said Martin Bernstein, director – global transportation and trade compliance,

Hallmark. “It measures shippers’ carbon footprints by category and it tracks each carrier’s footprint, so companies can benchmark against others and make responsible decisions about the freight carriers they use.”

“Our first step was to get certified, and our goal now is to use only SmartWay certified carriers,” said Bernstein. “Already 95 percent of our carriers are certified, and up to 99 percent of our transportation miles are with SmartWay carriers.”

Using SmartWay tools and approaches, partners can track and reduce emissions and fuel use from goods movement. Since its start, SmartWay partners have collectively reduced their energy use by 248.8 million barrels of oil, lowered fuel costs by $33.4 billion and reduced emissions of harmful air pollutants by 119 million tons.

One change Hallmark is making as a result of the program is to seek out opportunities to use more intermodal shipping — shipping via both trucks and trains.

Previously, Hallmark had not been tracking this piece of its environmental impact but, upon entering the SmartWay program, discovered that it was off to a good start.

“It’s more environmentally friendly to have one train carrying 100 shipping containers on the rail versus 100 trucks with 100 containers on the roads,” Bernstein explained. “We look forward to developing new logistics strategies, in collaboration with our carriers, to positively impact our supply chain sustainability and reduce our overall footprint.” n

Already 95 percent of our carriers are certified, and up to 99 percent of our transportation miles are with SmartWay carriers.” MARTIN BERNSTEIN D I R E C TO R – G L O B A L T R A N S P O R TAT I O N A N D T R A D E C O M P L I A N C E , H A L L M A R K

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

sustainability

g arde n p ro je cts

Volunteers from left: Rob Ludwig, Sally Luck, Emily Akins and Michael Jindrich tend to Hallmark’s monarch butterfly garden. Akins researched the plants most attractive to butterflies, registered the garden with MonarchWatch.org and coined the name “Butterfly Hall,” a reference to Hallmark.

Creating a Monarch Waystation to Sustain Butterfly Migration On the southeast side of Hallmark headquarters in Kansas City, Missouri, near a large puzzle piece statue, lays an oasis for monarch butterflies. Filled with milkweed and flowering nectar plants, this designated garden, named “Butterfly Hall,” provides a spot for monarch butterflies to lay eggs along their annual migration path. Each fall, hundreds of millions of monarch butterflies migrate from U.N. GOAL

Life on Land

the U.S. and Canada to areas of Mexico and California for the winter, and then they migrate back to the north in the spring. “Kansas City is right on the monarch migration path, so I see it as an obligation that we should provide a garden at Hallmark to help sustain these butterflies,” said Emily Akins, studio editorial director, Hallmark. “If you pay attention to environmental issues, it’s easy to see how helping pollinators like butterflies and bees survive is

critical to our food systems and natural resources.” In 2018, Akins and other members of the Hallmark rain garden volunteer team converted Hallmark’s existing rain garden into an official Monarch Waystation. Now the garden serves dual purposes: to capture rain and snow runoff from streets and parking lots by directing it to deep-rooted plants and to attract monarch butterflies to help preserve the species and continue the phenomenon of monarch migration.

Monarch Butterfly FA L L & S P R I N G M I G R AT I O N S

FALL MIGRATION SPRING MIGRATION

UNCONFIRMED SUMMER BREEDING AREAS SPRING BREEDING AREAS OVERWINTERING AREAS CORN BELT: HIGH MONARCH PRODUCTION

KANSAS CITY, MISSOURI, IS RIGHT ON “Migration is instinctual in monarch butterflies, but a single butterfly doesn’t fly the entire route,” explained Rob Ludwig, product integrity strategist, Hallmark. “It takes three or four generations of butterflies to make the trek, which is why it’s so important to provide a safe space for monarchs to lay eggs and refuel along their journey.” Akins researched what plants would make the rain garden more attractive to butterflies, and then she registered the site with MonarchWatch.org, a nonprofit educational outreach program based at the University of Kansas. The garden’s name, “Butterfly Hall,” is a reference to Hallmark.

Adding the butterfly-friendly plants began in 2017 and was completed during the 2018 planting season. The team planted several varieties of milkweed native to Missouri, purple coneflower, Joe-Pye weed, blazing star and cardinal flower. The nectar plants provide nourishment for butterflies while the milkweed provides a protected spot for butterflies to lay their eggs. “Milkweed is essential for monarch butterflies,” Akins explained. “The monarchs lay their eggs on the milkweed and, when the larvae hatch, the caterpillars only eat milkweed plants.” The Hallmark rain garden was first planted in 2007 and is maintained

migration

THE MONARCH PATH.

by a group of approximately 60 Hallmark employees who volunteer their time to plant, weed, cut down and compost throughout the year. “When you do something as a group at work, it multiplies your impact because you’re getting your coworkers involved,” Akins said. “It helps us all be aware of the need to protect our natural environment and help it thrive.” n

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

sustainability

•

garden projects

Crayola’s Canada office is turning a 30,000-square-foot vacant lot in Lindsay, Ontario, into a community garden to produce fresh vegetables to help feed the less fortunate in the area.

Transforming Vacant Land into a Community Garden In fall 2018, Crayola Canada entered a land use agreement with the United Way for the City of Kawartha Lakes to turn the unused land into a project that benefits the community. “The United Way has built more than 120 community garden plots in this area,” said Mike Soehner, human resources manager, Crayola Canada. “In the City of Kawartha Lakes, up to 2,100 people — 40 percent of whom are children — use the food bank on a monthly basis. And one in 10 households in the region does not have reliable access to a sufficient quantity of affordable, nutritious food.” U.N. GOAL

Life on Land

Named “Edwin Binney’s Community Garden,” after one of Crayola’s founders, the official groundbreaking was in October and planting in spring 2019. The garden will grow vegetables such as kale, zucchini, summer and winter squash, spinach, beets and cabbage, as well as native plants, shrubs and flowers. Crayola has also tended a community garden in Easton, Pennsylvania, at its company headquarters since 2011, resulting in approximately 2,000 pounds of produce being donated to the community from 18 different 100-square-foot garden beds.

For the new Canada garden, other community partners include Fleming College Frost Campus, which supplies gardening expertise and offers learning opportunities for students; Bob Mark New Holland, a farm equipment dealer that provides volunteers and equipment; and Hill’s Florist and Greenhouse, which provides gardening expertise. “This is a great partnership that will provide thousands of pounds of fresh produce for community programs like the Good Food Box, Collective Kitchens, Meals on Wheels, cooking classes, food banks, food cupboards and school nutrition programs,” explained Soehner. n

sustainability by example

1 1. “Green” Packaging. When Crayola introduced Color Wonder in 2000, it revolutionized coloring for families. Color Wonder markers only show up on Color Wonder paper, so they provide mess-free coloring for kids and peace of mind for parents. In 2018, Crayola Color Wonder made a “green” innovation by transforming the packaging used on the Color Wonder sets that include a coloring book and five Color Wonder markers. Previously, Crayola used a metallized film overwrap, which could not be recycled. Now, with the help of NextPage, Crayola’s supplier in Kansas City, Missouri, the coloring book and markers are packaged in a paperboard envelope design called a “foldalope,” and this packaging is fully recyclable. Packaging in 2000.

All Crayola Color Wonder coloring sets now use the new foldalope packaging. This change, which started out as a cost-savings initiative for a cross-functional team, will keep 62,000 pounds of metallized film out of the landfill each year.

Packaging in 2018.

2. Girl Power Drives Recycling. Two Quincy, Illinois, Girl Scout troops show off their donation to Crayola’s ColorCycle program, an initiative to help kids understand their role in protecting the environment by collecting and repurposing used Crayola markers. The troops collected more than 1,500 markers throughout 2018 to be recycled into diesel fuel.

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

The full power of diversity can only be realized when we are able to achieve inclusion â&#x20AC;&#x201D; which for Hallmark is more than tracking the number of diverse employees, new hires and employee programs: itâ&#x20AC;&#x2122;s about a personal commitment from its workforce to celebrate and embrace differences and recognize the full benefit of contributions from all of its employees, customers and community and business partners.

di ve r s i t y + in c lus ion

Committed to diversity and inclusion in all we do.

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

diversity + inclusion

fact s + fig ure s Hallmark's diversity and inclusion (D+I) vision is a daily journey that requires adjustments of mindsets and behavior among its employees to bring an inclusive culture to the forefront of both planning and decision-making. For Hallmark employees, inclusion means being able to bring their authentic, whole selves to work, and for its diverse suppliers, it means knowing that they will have an opportunity to compete and win on an equitable playing field alongside their industry peers and counterparts. In 2018, the company increased the support of its efforts by realigning resources and having its D+I practice report directly to Dave Hall, president, Hallmark. In addition, an executive inclusion council, comprised of Hallmark officers, was formed to guide Hallmark’s D+I efforts as a corporate imperative for the company. Other notable achievements this past year included Hallmark’s support of women in the workplace, recognition of the company's Put It Into Words campaign kicked off by Gabrielle Union, a new sponsorship furthering the company’s connection to veteran businesses, and more diverse talent featured in the programming of its Crown Media business. “While we have made progress last year, we will never be fully satisfied with our D+I journey,” said Philip Polk, vice president — diversity and inclusion, Hallmark. “As the world continuously changes and evolves, so, too, will our efforts.”

1 Includes

HALLMARK

2018 total representation, 24,442 employees 18.24% 82.88%

2018 Hallmark new hires, 9,420 hired2 25.85% 86.87%

n People of Color

n Women

Generation Z 1997-Present

Generational Breakdown

Matures 1909-1945

19%

Millennials 1981-1999

41%

Baby Boomers 1946-1964

32%

Generation X 1965-1980

diversity in gender and race/ethnicity in the U.S. from Hallmark Greetings, Hallmark Retail, Hallmark Home & Gifts, enabling functions at Hallmark headquarters, Hallmark Canada and Crown Center businesses, in addition to Liberty, Missouri, Lawrence, Kansas, and Leavenworth, Kansas, locations. Also includes part-time field sales, corporate store employees, on-call and seasonal employees and other businesses. Information about LGBTQ, disabled and protected veteran employees is not included. 2 Includes all individuals noted on No. 1 with the exclusion of Canada.

AWARDS Best Places to Work:

Americaâ&#x20AC;&#x2122;s Best Employers for Diversity:

Americaâ&#x20AC;&#x2122;s Best Employers for Women:

Human Rights Campaign

Forbes + Statista

CRAYOLA

CROWN MEDIA

2018 total representation, 1,726 employees

2018 total representation, 314 employees

35%

32%

61%

64%

2018 Crayola new hires, 808 hired

2018 Crown Media new hires, 66 hired

64%

35%

68%

70%

n People of Color

n Women

n People of Color

n Women

1% Generational Breakdown Matures Category (1909-1945) = 0%

Matures 1909-1945

Generational Breakdown 23%

24%

Generation Z 1997-Present

Baby Boomers 1946-1964

15%

Gen Z Category (1997-present) = 0%

37%

Baby Boomers 1946-1964

Millennials 1981-1999

21% 32%

Millennials 1981-1999

3 Includes 4 Includes

Generation X 1965-1980

47%

Generation X 1965-1980

U.S. data only, including corporate and production/distribution facilities and Crayola Experiences across the country. all full-time, part-time and temporary employees.

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

diversity + inclusion

an in clusive culture

Fostering an Environment Where Women Succeed At a time when gender equality in the workplace is at the forefront of the national conversation, Hallmark is earning accolades for its support of women across its diverse portfolio of businesses. In 2018, the company was recognized as No. 3 overall by Forbes and Statista as one of “America’s Best Employers for Women.”

my tenure, I’ve seen the ranks of females in management grow, especially in the past five years where the number of women in corporate officer positions has grown by more than 30 percent. During that same time, all women leaders with direct reports has climbed to 80 percent.* It is exciting to see the progress and impact of a more diverse leadership team.”

Some of Hallmark's female employees enjoy a full day of creative professional development at the company's Creative Leadership Symposium, where they were inspired with the 2018 theme, “Change the World.”

“It’s an honor to see Hallmark gaining attention on this important topic of women in leadership,” said Lindsey Roy, chief marketing officer, Hallmark Greetings, who has worked at the company for nearly 20 years. “During

In just the last three years, female executives have been named to lead the corporation’s legal, human resources and public affairs and communications functions, as well as key business roles, including the president of Crown Center Redevelopment Corp., the president of Hallmark’s international greetings business, and the executive vice president of content, strategy and distribution at Crown Media.

Support for its female workforce and female leadership can be traced back more than 60 years, when Jeannette Lee was the first woman named to Hallmark’s board of directors. Lee

was head of corporate design and set aesthetic standards for the company for nearly four decades, at the same time developing a pipeline of female leaders within her organization. In the 1980s, Hallmark committed to professional development for women beyond its internal human resources training and career rotation programs. Adele Hall, wife of Chairman Don Hall, served as a founding member of the Central Exchange in Kansas City, Missouri. The organization supported women in building successful careers and continues to serve more than 830 female member leaders across the metro area, including dozens of Hallmark employees. Today the company sponsors the Hallmark Women’s Network and a mentorship program to bolster high-performing leaders. In addition, through involvement in organizations such as the Network of Executive Women (NEW) and Management Leaders for Tomorrow, aimed at diverse leaders, Hallmark is developing a network of potential talent from across the country. “The value of Hallmark’s support of its women leaders’ professional development, including national opportunities such as NEW, is

total representation of women in Hallmark’s four headquarters-based businesses (Hallmark Greetings, Hallmark Retail Stores, Hallmark Home & Gifts and Crown Center Redevelopment) and Corporate Enabling Groups

2018 Women in Leadership

87% 66%

of new hires in 2018 were women of Hallmark’s creative community are women

60% 50%+

Appointments in recent years of women in executive leadership roles: • President, Hallmark

of external board members are women of senior management (director & above) are women

Greetings International** Cindy Mahoney • President, Crown Center Redevelopment Corporation** Stacey Paine

immeasurable,” said Jill Marchant, executive vice president — general counsel and secretary, Hallmark. “Over my career, I have grown and benefited from these kinds of experiences, both as learning opportunities and as settings where I could hear personal stories from women who rose in my own profession — a profession that was disproportionately male when I entered it 30 years ago. “Having woman-to-woman conversations helps us learn from others who have achieved professional success and with whom we have shared perspectives, some of which are unique to womanhood. It’s no surprise Hallmark is a company where a woman can rise to the top legal job — a woman held my very role more than 25 years ago.”

* Excluding Crayola and International, including all other entities

Part of Hallmark’s appeal for female professionals is the company’s offerings to benefit work-life balance, ranging from flexible schedules to an on-site medical and fitness center to nursing rooms to expectant mother parking spaces and carryout meal services.

• Chief Customer Officer, Hallmark Greetings** Sabrina Wiewel • Managing Director, Hallmark Greetings United Kingdom** Amanda Del Prete

“Development is not something that is just talked about by the leaders of the business, but genuinely nurtured and championed,” said Amanda Del Prete, managing director, Hallmark U.K. and the first female leader of the U.K. business. “Having started as an assistant product manager in Hallmark Australia more than 25 years ago, I have been encouraged and mentored by so many talented Hallmark leaders, both men and women, who always talked about potential and never about a ceiling.” n U.N. GOAL

Gender Equality

U.N. GOAL

Reduced Inequalities

• EVP, General Counsel Jill Marchant • Chief Marketing Officer, Hallmark Greetings Lindsey Roy • SVP, Public Affairs and Communications** Molly Biwer • SVP, Supply Chain Beth Ward • SVP, Human Resources** Beth Sweetman **Notes positions held by women for the first time.

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Championing Young Artists in the Latino Community Deanna Munoz is passionate about art. So when the Hallmark employee’s eldest daughter, Priscilla, showed natural writing and drawing talent at age 6, Munoz immediately began seeking resources to help the budding creative employee realize her full potential. After she discovered there were limited art mentorship opportunities for children her daughter’s age, Munoz vowed to change that. She imagined a nonprofit that welcomed any child in grade school through college — a safe space where youth could learn and be themselves while developing their artistic interests. Fast-forward nine years and the dream is a reality. Munoz, a Hallmark Gold Crown program leader in order management services, created and began serving as president of the Latino Arts Foundation in late 2018 with assistance from Hallmark, where she has worked since 2002. “It all started with a simple, but scary, ask I made of the Hallmark director of diversity and inclusion about how I could create a way to help young artists blossom,” Munoz said. “Hallmark has enabled my vision from that moment on, and now the Latino Arts Foundation exists to cultivate young, aspiring artists in our community.” 69

I don't think the Foundation nor the initiatives that led to it would exist without Hallmark's support.” D E A N N A M U N OZ G O L D C R OW N P R O G R A M L E A D E R , HALLMARK

When Munoz made the inquiry that ultimately led to her launching the Foundation, she served on the Hispanic Education Awareness Resource Team (HEART) — a Hallmark employee resource group (ERG) she has belonged to for the past 11 years. Before the Foundation existed, Munoz was already doing plenty to support the local art scene. As a member of HEART, she established a children’s art enrichment program called Scribblers Co. which offers free creative writing and theater mentorship programming for children 6 through 19. The Latino Arts Festival, now an annual event, is an outgrowth of Scribblers Co. that serves as a forum for kids to exhibit and gain exposure to art. Munoz founded and manages the event with Hallmark as a sponsor. Any artist is welcome, and there is never a fee to display and sell their works.

At the VIP event for Festival sponsors in 2018, Munoz began holding an auction to raise money for a Latino Arts Scholarship, another idea she conceived. Donors generated $2,500 that inaugural year. The Greater Kansas City Hispanic Development Fund, an endowed fund the Hall Family Foundation started in 1983, matched the amount and awarded $5,000 to two Kansas City-area students pursuing careers in the arts. Munoz plans to grow this effort going forward. All of Munoz’s endeavors to bolster the arts and Latino communities originated with her involvement in HEART. As the current HEART ERG committee chair, Munoz leads professional development and mentoring programs while supporting HR recruiting efforts. “I don’t think the Foundation nor the initiatives that led to it would exist without Hallmark’s support,” Munoz said. “It’s inspiring to know the company values everyone, no matter their backgrounds, and encourages employees to actively engage with charitable causes they hold dear. When we learn about and help different groups of people, we improve both our communities and the work that Hallmark does to connect with consumers on an emotional level.” n

THE LATINO

helping blossom

ARTS FOUNDATION IS

YOUNG ARTISTS

Top: Munoz (front row, third from left) at the Latino Arts Foundation with representatives from art organizations, city council, not-for-profit directors and artists at their first brainstorming session. Upper Right: Munoz and her family at the 2018 VIP Event for the Latino Arts Festival. Bottom: Munoz (second from left) with friends and co-workers from Hallmark supporting the Latino Arts Foundation. HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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Leader Profiles: Conversations with some of Hallmark's leaders who made an impact in 2018. Q: Given your position, what is one leadership trait that is transferrable among different cultures?

A: No matter where they’re located,

N O R I KO A Z E C H I

president – nihon hallmark h a l l m a r k g r e e t i n g s j a pa n

Notable Achievements: Ascended to managing director in 2004 after just three years with the Greetings business • Escalated and maintained productivity for Japanese market • Served as team lead for Japan in working with U.S. to develop Wonderfolds®, a new and differentiating greeting card product

leaders should always be openminded and try to better understand employees’ diverse backgrounds. In Japan, which is a unique market, there are many differences from the U.S., Europe and even other Asian countries, including the language, culture and business customs. So communication is especially important. In a multi-cultural organization like ours, we have to prioritize listening as we incorporate different opinions and approaches.

Q: How do you make sure everyone on your team feels their input is valued?

A: As a smaller, local team, it is

not always easy for employees to appreciate the larger roles they play in the global Greetings organization. People sometimes feel that we are isolated, so I remind them how valuable they are to our overall success.

I help them understand that feedback from each global market enables Hallmark to more effectively connect with consumers from different cultures with varying perspectives.

Q: What has been the key to

fostering diverse teams from around the world?

A: It’s about finding a common

language. What we often find is some consumer needs are universal. Our job is to identify these commonalities and then develop solutions as a team. Wonderfolds®, for example, was introduced in 2017 as a result of our collaboration with the U.S. innovation team. We leveraged our competitive position to help create a new product line that translates across continents and is doing well in the U.S. market. The success of Wonderfolds represents the growth that’s possible when we share our unique, local capabilities. Diverse teams from around the world can positively impact the business as a whole when we work together and learn from each other.

Q: As a seasoned leader, what is something you’ve learned to encourage team-building? A: First, teams need a clear objective to provide focus and create clarity on the actions they need to take to be successful. Second, people need to define their own identities; we should leave room for interpretation of implementation. Third, teams should ensure they are constantly aligned with the greater mission and values of the organization. Lastly, teams should share their accomplishments — and challenges — in an environment of mutual trust, respect and support.

ALBERT LAI senior vice president a n d g e n e r a l m a n ag e r hallmark labs

–

Notable Achievements: Joined Hallmark in September 2018, bringing more than 20 years of experience in the technology industry leading growth, development and strategy innovation • Served as panelist and contributor for Advertising Week, Digital Entertainment World, AllThingsD, Variety's Sports Entertainment Summit, Techcrunch and Wired, among others

In 2018 we started First Monday, a monthly, informal communal breakfast meeting to encourage interactions with team members who may not otherwise come into contact during their day-today activities. In addition, we organized our first Labs Hackathon to inspire innovative problem-solving, with employees from human resources, finance, creative, marketing, product and technology. The top groups included members from many different areas who shared a common goal. Q: How would you describe your leadership style? A: I emphasize three key characteristics: focus, transparency and empowerment. My job is to make sure teams have the opportunity to be successful. It’s important to define priorities for employees and provide as much

information and context as possible so they can make decisions. I challenge teams to be excellent professionals. Teams should feel supported and empowered to act in a world of ambiguity. If their decisions aren’t perfect — and perfect decisions are rare — they will learn, iterate and improve. And they should feel comfortable doing this repeatedly. Finally, teams should feel they are not only learning and contributing every day, but also proud that their investment in the company — their time, effort and expertise — helps millions of consumers live more meaningful and connected lives. Q: What role does diversity play in the success of both Hallmark Labs and Hallmark overall? A: The moment we believe there is only a single defined approach to solving a business or technical challenge we have closed the door to an ocean of possibilities. To enable us to embrace change and use the iterative process of improvement to our benefit, we need the help of our most valuable and powerful asset: people. Diversity encompasses more than those individuals who work in our offices; diversity extends to our consumers, partners, vendors and the local communities that support us. The opportunities we face are global in scope and require us to problemsolve using all the capabilities we can bring together.

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Q: What insights can you share about leading a global organization?

A: I have learned a great deal about

the difference between communication and connection. People everywhere want to understand the “why” behind the “what,” and when they do, great things happen. So I spend a lot of time reinforcing the “why.”

C I N DY M A H O N E Y

president – hallmark g r e e t i n g s i n t e r n at i o n a l

Notable Achievements: Named first female leader of Hallmark International in the company’s history in January 2018 • Led Hallmark Canada business as president to record sales during the 2016 holiday season and posting its strongest retail sales growth in more than a decade • Achieved ascending executive leadership roles in Hallmark business expressions, season cards and new concept commercialization and licensing

In addition, I have discovered you can’t do this from a distance; it has been invaluable to be present and visible to help people believe in our vision, and understand my commitment to their success. I also have appreciated the value of listening more than talking. We have so much to learn from each other, and people all over the world are embracing the potential for Hallmark’s global Greetings business. It is a true privilege to be a part of it.

Q: How would you describe your leadership style?

A: I try to adapt my leadership style

based upon the conditions in the business at any given time. I am most comfortable providing vision and coaching to the team, but sometimes I find the business needs a pacesetter to provide more clarity. In today’s competitive business environment, there is a great need for

“I WANT

leadership that charges into the challenges and turns the table on the chaos. I want people to feel empowered, supported and accountable to each other and the business. If my leadership can play a part in that, it’s a good day.

Q: How have you seen Hallmark

support women in leadership roles?

A: Hallmark treats all employees as

people with lives that include work, family, community and personal interests. I have benefited greatly from the company’s position around flexible work schedules and its commitment to providing highquality healthcare options for employees and their families. Those business choices come at a high cost, and I value them so much that it motivates me to do whatever it takes to help Hallmark succeed. I believe that I have never gotten an opportunity because I am a woman — a premise that undermines the very idea of equality. Thomas Edison said, “Opportunity is missed because it is dressed in overalls and looks like work.” I want people to be inspired by their work and rewarded by their commitment to a strong work ethic. Those qualities are game changers and the ultimate equalizer.

people feel TO

EMPOWERED, SUPPORTED

AND ACCOUNTABLE TO EACH OTHER AND THE BUSINESS.”

Q: What benefits have you seen

from striving to cultivate a diverse workforce?

A: Employees from diverse

backgrounds provide a broad spectrum of ideas and perspectives to help make our company successful. Diversity enables us to better understand our consumers and be more innovative as we work to achieve Crayola’s mission to help parents and educators raise “creatively alive” kids.

ORVILLE TROUT

senior vice president – h u m a n r e s o u r c e s , c r ayo l a

Notable Achievements: Honored to be first person of color to lead Crayola’s human resources team • Implemented global service anniversary program to standardize recognition for Crayola employees in more than seven countries • Helped business staff and build its e-commerce team and digital content capability enabling Amazon to become Crayola’s third largest customer • Brought 30 years of human resources experience to Crayola after working in operations, supply chain and product development at Hallmark

In addition, a diverse workforce helps us ensure our products appeal to many different people and cultures, which is imperative given that Crayola products are sold around the world.

Q: What leadership challenges are you addressing?

A: We are challenged with ensuring

a high-performing organization with every employee performing to his or her fullest potential. That requires leaders to have transparent and clear conversations with employees about their performance and suggestions for improvement. It means setting clear expectations, providing training, telling employees what they are doing well and providing constructive feedback on gaps in their performance.

Q: How do you help employees feel a sense of “inclusion” in your culture?

A: We work to recognize their

differences and encourage them to be themselves at work. It’s important all employees feel included in defining the future of our business within their own areas of influence. For our business to continue to thrive, each employee should feel accountable for the success of Crayola; a concept embedded in our leadership competencies. We also work to build a collaborative culture. Within our four core leadership competencies of thought, results, people and cultural leadership, we encourage employees to share their knowledge and deliberately seek diversity of thought and experiences from others to help our company succeed. These leadership competencies guide how we work together, our talent acquisition strategies and our rewards and recognition framework. n

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Celebrating Champions of Inclusion Hallmark’s 2018 Diversity and Inclusion Awards honored four employees for their role in fostering diversity and inclusion and a supplier for serving as an outstanding business partner. “So much of what we strive to do every day — to create a more emotionally connected world and to make a genuine difference in every life every day — hinges on our ability to connect with, appreciate and understand one another,” said Philip Polk, vice president of diversity and inclusion, Hallmark. “Not surprisingly, this year’s winners represent a commitment within Hallmark to do just that by going out of their way to champion diversity — and most important, inclusion — across the business.” LUIS BLANCO PRODUCT AND MARKETING MANAGER

Blanco, a native of Colombia, South America, and active in cultural events in Kansas City, encourages multicultural talent to join the company. As past chair of Hallmark’s Hispanic employee resource group, Hispanic Education and Awareness Resource Team (HEART), he led the group’s input into the Hallmark VIDA Hispanic greeting card product line, helping to ensure the authenticity of its messaging and design.

Award recipients (left to right) Muhammad Chaudry, Rick Sakaguchi, Deanna Munoz, Luis Blanco.

MUHAMMAD "MO" CHAUDRY

R I C K SA KAG U C H I

HR SPECIALIST III

SENIOR ENGINEER

Chaudry has played a significant role in bringing an education of Islam to Hallmark through his involvement in the Asian American Resource Community at Hallmark (AARCH). He has voiced the need for product for different celebrations within the culture and works with the Islamic community to ensure the product aligns with the latest trends of the faith.

Sakaguchi, a founding member of AARCH, leads Hallmark’s DIVE (Diversity, Inclusion, Vision, Enrichment) Buddies program, which matches employees different from each other for one-on-one relationships to increase understanding about different backgrounds and beliefs. The program’s success has resulted in expansion to Hallmark’s Liberty Distribution Center.

D E A N N A M U N OZ

C A P T I VA

PROGRAM LEADER

It is one of the largest sheet-fed, litho printing companies in the southwest U.S. employing a workforce with 75 percent women and minorities. They work with Hallmark to implement the latest in printing efficiencies and in caring for others and the industry: they even provided product to competitive Hallmark suppliers when paper mills closed. n

From starting a free art program for children to creating and managing the Kansas City Latino Arts Festival, Munoz has also inspired Hallmark’s Keepsake lowrider car ornaments, bringing diversity into the Hallmark store. (See a full profile on Munoz on page 69.)

Leading with Perspective at Crayola Thanks to Kate Matelan, search engine optimization content associate at Crayola, she and her fellow employees look at their “playground” in a new way. Matelan, who is paralyzed from the chest down, helped Crayola become more aware and accommodating of people with different ability levels. Seeing a need to share her story, she developed and led a lunch and learn event on Crayola’s Pennsylvania corporate campus during National Disability Employment Awareness Month last October to educate co-workers about people with disabilities. “Our leaders are committed to continuing a safe and inclusive environment where employees know their voices are heard and they are making a difference for our organization,” said Stephanie Yachim, talent acquisition manager, Crayola. At the lunch and learn meeting, Matelan explained how she became paralyzed from injuries sustained in a car accident on her way to preschool more than 25 years ago. Describing how she lives her life on wheels today, Matelan spoke about workplace and building accessibility experiences, staring during interviews, proper communication

K AT E M AT E L A N SEARCH ENGINE O P T I M I Z AT I O N CONTENT A S S O C I AT E , C R AYO L A

techniques, and steering an open discussion on disability awareness. “In order to be more inclusive of all abilities and make change, we have to understand everyone’s vantage point and get out of our comfort zone,” said Matelan. “This opportunity gave people real-world examples of positive and difficult workplace experiences and solutions, including interactive activities such as eating lunch and taking notes with their nondominant hands, and free-flowing Q&A for open and honest discussion.” Matelan’s advocacy efforts began even before the lunch meeting. Shortly after she joined the company in June 2018, she collaborated with Crayola to make improvements for those with disabilities, including accessible bathroom stalls and soap dispensers for women, new automatic doors and new evacuation procedures for employees who need assistance. By championing universal design, Matelan encouraged the organization to make updates that benefit not only people with disabilities, but any employee or visitor.

Matelan urges others to put the person before his or her disability and take into consideration the entire scope of a situation, which can aid in planning events, making decisions and even communicating. These continual efforts make a big difference. “It creates an impact greater than you think for the person and for the company’s inclusion efforts,” Matelan explained. “However, applying a new understanding is an ongoing process and we must continue to learn, grow and change together.” n

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Extending Support of Veterans Enhances Consumer Connections The latest diversity initiative of Hallmark’s supply chain organization is the company’s sponsorship of the National Veteran Business Development Council (NVBDC), the country’s leading certification authority for veteran-owned businesses of all sizes. In 2018, Hallmark joined an esteemed list of fellow NVBDC corporate sponsors including Microsoft, Apple, Kellogg’s, AT&T, BMW and Ford. The NVBDC is the only nonprofit certification program designed by veterans, for veterans. Hallmark partnered with the organization to further its connection to veteran business enterprises (VBEs); that is, a veteran must own at least 51 percent of a business and be involved in daily operations. “We are proud to partner with the NVBDC in their work to support and advance all sizes of veteran-owned businesses,” said Beth Ward, senior vice president — supply chain, Hallmark. “At Hallmark we strongly believe in the value veterans can bring to a business, and we're passionate about helping minority-owned businesses grow and succeed.” While it is too early to quantify any net gains from Hallmark’s 77

relationship with the NVBDC, the company is actively exploring ways to maximize the connection. For example, contacts made through the NVBDC are providing insights that will help Hallmark improve its outreach to other VBEs.

the world from the perspective of military personnel and their families. Another way Hallmark fosters inclusion is by recruiting military veterans through the U.S. Chamber of Commerce Foundation’s Hiring Our Heroes corporate fellowship

Partnering with NVBDC in 2018 was another effort to extend Hallmark's support of veterans, such as this group of veteran employees and their families who helped restore houses in the Kansas City community as part of the company's Christmas in October program.

Hallmark’s NVBDC sponsorship is a natural extension of the company’s ongoing support of veterans, which includes the Military Interest Group (MIG). This employee resource group at company headquarters provides a platform for veteranrelated volunteerism, encouragement, education, celebration and product development feedback. MIG activities provide veteran assistance and help everyone better understand

program. It offers professional development opportunities to prepare candidates for a smooth transition into meaningful civilian careers. Hallmark has been supporting minority-owned businesses since the 1960s, and today its supplier diversity program works with more than 300 diverse suppliers, now including NVBDC. n

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‘Put It Into Words’ with Gabrielle Union Actress, author and activist Gabrielle Union served as the spokeswoman for Hallmark Greetings' Put It Into Words campaign that showcased the power of greeting cards. At the July 2018 launch party in Los Angeles, Union talked about how the campaign “encourages people to put forth a little extra effort to show someone how much you care.” That idea is the heart of the campaign, which aimed to inspire everyone to experience the power that card-sending and -receiving can have on their relationships.

first episode, which paid tribute to Wade — who, she says, is the better card-giver in the relationship — and demonstrated how receiving his cards makes her feel loved and special.

“I’m proud to be part of a project that encourages and celebrates using your words to make people feel appreciated, recognized and special,” said Union. “Cards just pack a bigger punch than texts, emails and social posts, which don’t take a lot of thought. Picking out and sending a card takes a little bit more effort, but it can make such a big impact in someone’s life and is still an easy thing to do.”

Each episode of the touching docuseries featured celebrities or social influencers connecting with special people in their lives by capturing the words they wanted to say in a card. They all had diverse backgrounds but shared the basic human need for emotional connections.

Union should know. Card-giving is a big part of her marriage to basketball star Dwyane Wade. Both have demanding schedules and often work on opposite coasts, so cards help them convey exactly how they’re feeling in a given moment — and not just on major occasions like birthdays and anniversaries. A seven-part docuseries released via social media anchored the Put It Into Words campaign. Union starred in the

Besides shining a light on the power of cards, the Put It Into Words campaign also reminds people that there’s a Hallmark card for everyone, no matter their age, ethnicity or

situation. Hallmark found in Union an authentic personality who aligned with the company’s brand, values and messaging. She has a compelling card-sending story and resonates with a broad audience. “Gabrielle brought a lot of energy to her role as brand advocate for the Put It Into Words movement,” said Jenny Hofeditz, category marketing manager, Hallmark Greetings. “Inclusion and diversity have been at the core of the Hallmark brand since its inception, so she was a good fit from that perspective, too.” n

Union and her husband often exchange cards. She selected this Hallmark Mahogany card during the Put It Into Words campaign.

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Casting for Diversity on Hallmark Channel Since 2009, millions of Americans have kicked off the holiday season with Hallmark Channel’s “Countdown to Christmas.” Last November, USA Today reported that “Just like its greeting cards and keepsake ornaments, Hallmark’s movies have made a place in American pop culture, and … they’re something viewers look forward to when the holidays roll around.” While the franchise is hugely popular — during the past several years, the network has ranked as the highestrated and most-watched on cable among women 25–54 and women 18–49 in fourth quarter — Hallmark Channel has been criticized for a 79

lack of diversity in its made-fortelevision programming. Now Hallmark Channel is earning recognition for being more inclusive. Salon reported in November, that “Hallmark Channel is at last comfortable featuring AfricanAmerican performers as leads in multiple movies during the same year.” The Salon article sub-headline summed it up: “After years of movies featuring mostly white casts, Hallmark opens its holiday fantasies to black romantic leads.” Crown Media Family Networks recognized the need for more racially diverse talent and featured

more actors of color than ever before in the 2018 lineup of original Hallmark Channel holiday movies — and not just in secondary parts. “We’re focused on expanding the number of diverse characters in leading roles and made great progress this past holiday season,” said Bill Abbott, CEO, Crown Media, parent company of Hallmark Channel. “In more accurately reflecting the diverse profile of our audience, we are ultimately creating richer, more compelling stories, and better programming overall.” The legendary Patti LaBelle, Dennis Haysbert and Tatyana Ali comprised

We're focusing on expanding the number of diverse characters in leading roles and made great progress this past holiday season.” BILL ABBOTT C E O, C R OW N M E D I A

Opposite page: Tatyana Ali and Dondre Whitfield on the set of Hallmark Hall of Fame Presentation, “Christmas Everlasting.” Left: Danny Glover and Kimberly Williams-Paisley star in “The Christmas Train.” Above: From left, Dolores Robinson, Robinson James Peete, Holly Robinson Peete, Rodney Jackson Peete, Ryan Elizabeth Peete, Roman Matthew Peete and Rodney Peete appear in Hallmark Channel's family reality series “Meet the Peetes.”

the all African-American cast and earned wide acclaim for their roles in the 2018 Hallmark Hall of Fame presentation, “Christmas Everlasting.” Other famous names in Hallmark Channel’s movie credits last year included black actresses Holly Robinson Peete, Tia Mowry-Hardrict, Jerrika Hinton and Christina Milian. Latinos Carlos and Alexa PenaVega also each headlined films that aired in December. Nielsen data confirms that Crown Media programming appeals to viewers of all ethnicities, so the company understands the importance of inclusion and diversity not only in front of the camera, but also behind it. One example is Crown Media’s partnership with diverse writers and authors like Al Roker. Crown Media adapted Roker’s book, “The Midnight Show Murders: A Billy Blessing Novel,” into “Morning Show Mysteries,” a new

Hallmark Movies & Mysteries series of mystery films headlined by Robinson Peete. She also stars alongside her husband, ex-professional football player Rodney Peete, in Hallmark Channel's family reality series, “Meet the Peetes,” which returned in 2019 for its second season. Behind the scenes, Crown Media in 2018 attracted a wider net of talent for writing, producing, show-running and directing positions. There are now more women and people of color working as executive producers, screenwriters, directors and in programming, marketing, design, legal and even Crown Media leadership roles. “We have more work to do, but we’re getting there,” said Michelle Vicary, executive vice president of Crown Media. “We are deeply committed to making our programming more diverse.” n

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Hallmark Channel Talent Profiles Presenting Dewshane Williams Q: Tell us about yourself and how you began your career.

A: I’m a Jamaican/Canadian Artist

from Scarborough, Toronto, Canada where I also attended art school, and was able to get an agent during my senior year. My first on-camera experience was when I was 18, starring on a huge Canadian series called “Flashpoint,” inspired by the real-life emergency task force of Toronto.

A: My entire family can watch.

Q: What did you enjoy the most

Q: Do you have any favorite fan

about filming “One Winter Proposal,” the sequel to 2018’s “One Winter Weekend” to be airing on the Hallmark Channel in 2019?

A: We got the band back together!

Having Taylor (Cole), Rukiya (Bernard) and Jack (Turner) sign on to do another film felt like we were continuing the story in an authentic way. Not to mention, director Gary Yates returned for the sequel along with many of our original crew members. We were picking up where we left off, which felt like home to me. Working with Gary is great because I was able to discover nuances in Sean (Willams’ character) by improvising from time to time. Last but not least; Banff National Park is a Canadian treasure so it was a privilege for me to explore Sunshine Village. They’re fantastic hosts!

Q: What appeals to you most about movies appearing on the Hallmark networks? Everyone from my little cousins to my grandmother — who, I must add, loves these movies — can enjoy premieres together. There’s a joy Hallmark Channel brings to people’s lives that I’ve recognized and I’m grateful I can be a part of that.

reactions thus far while being involved with Hallmark productions?

A: This wasn’t a favorite moment

per se, but it impacted me. There was a fan on Twitter who was battling depression, and she mentioned that Hallmark Channel Movies really help her get through tough days. I wasn’t expecting to hear something like that, but I’m glad the work I’m involved with can have a positive impact in that way.

Q: What can fans look forward to next with you?

A: I’ve been writing a lot more these

days, so it would be great to share some of these projects with the world. Fingers crossed I can help create an opportunity for other talented individuals to come together and make something special. As the years

Top: Williams at Crown Media Family Networks' 2019 Television Critics Association Winter Press Tour. Bottom: Williams and Bernard on the set of “One Winter Weekend.”

go by, I’ve become so fascinated with filmmaking as not only an art form but as a science of some sort. I’d love to produce/direct something this year. Maybe a short film? We’ll see. I love making music as well. It’s more a passion at this stage; but who knows what the future holds in store.

Bernard at Crown Media Family Networks' 2018 Television Critics Association Summer Press Tour.

Presenting Rukiya Bernard Q: What led you to join the Hallmark family?

A: I love a good romantic comedy

and working for the Channel offered me the opportunity to exercise my comedic chops. The content is also always family-friendly and I wanted something my kids could watch.

Q: What is most important to you in

the portrayal of diverse characters in TV and film productions?

A: This is a topic I’m very passionate

about. I think it’s crucial that our television programming reflects the diverse world we live in. There’s a relationship between self-esteem and the images we see. Studies have shown that when we see people who look like us on TV doing good things, our selfesteem rises. The opposite is unfortunately true, too. Further, film and TV is a kind of education and when we see a certain culture, race, gender or sexual orientation perpetually portrayed by people in certain roles, it teaches other cultures that that’s the truth — which

it isn’t. In 2019 it’s imperative that TV and film continues this move toward more diversity and inclusivity so we can showcase society truthfully. It’s my belief this can help make the world a better place.

Q: What appeals to you most about movies appearing on the Hallmark networks?

A: The best thing about watching

Hallmark is that it’s easy programming to watch; the movies are light, fun, never shocking and family-friendly. It’s the channel to watch when you want “feel good” programming; it never disappoints.

Q: What has been your favorite fan

interaction since being involved with Hallmark productions?

A: I’ve had someone think that

Dewshane (Williams) and I were actually a couple — that was a very entertaining Tweet thread. In addition, I’ve gotten a lot of black women asking what products I use in my hair, and I’m always happy to message back. n

I think it's crucial that our television programming reflects the diverse world we live in.” HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

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embracing a diverse culture

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1. Hallmark Mahogany Unity of One Concert. Hallmark Mahogany sponsored the Unity of One Concert, presented by 4HisWill. The evening was a night of worship featuring well-known Christian Music Artist Jonathan McReynolds (middle), pictured with Hallmark employees Kim Preston (left) and Monic Houpe.

2. Pride Month. To celebrate Pride Month, members of Hallmark Employees Reaching Equality (HERE) constructed a multicolored string display to demonstrate Hallmark’s pride in supporting diversity and inclusion. The artwork was displayed at Hallmark headquarters. 3. Hispanic Heritage Month. In celebration of Hispanic Heritage Month, Hallmark hosted Julián Zugazagoitia, CEO, Nelson-Atkins Museum of Art, who shared with employees how Hispanic and Latino contributions are reflected in the arts, and how the museum is engaging with Latino audiences. 4. Redefining Hope. Sunayana Dumala, wife of a murder victim of a hate crime in Olathe, Kansas, spoke to Hallmark about her journey through grief, resilience and a new sense of purpose after her husband’s passing.

5. Emma Bowen Foundation. Crown Media’s support of The Emma Bowen Foundation continued as Stephanie Versichelli, senior vice president, Eastern Sales, spoke to these Foundation students about leadership. The group represented a pipeline of young and diverse talent for the nation's leading media, PR and technology companies. 6. Cultural Identity. To showcase Hallmark’s Cultural Identity brands (Vida, Mahogany, Tree of Life, Eight Bamboo and Golden Thread), the respective brand teams hosted an open house to educate Hallmark employees about the different cultures represented among the brands and the importance they have to consumers. 7. Asian Education. To celebrate Ramadan and Eid in June 2018, the Asian American Resource Community at Hallmark (AARCH) displayed traditional Pakistani wedding garments at Hallmark headquarters to educate Hallmark employees about the Asian community.

8. Latino Bloggers. Hallmark’s HEART (Hispanic Education & Awareness Resource Team) members hosted three top Latino bloggers, Soe Kabbabe, Claudya Martínez and Kathy Murillo (left to right), to share their diverse perspectives on blogging. 9. Women In Tech. In December, Hallmark Labs hosted the Women In Tech event in partnership with Athena.LA, welcoming nearly 200 women as a Hallmark panel led a discussion on the digital consumer experience and careers in digital media and technology.

10. KC Latino Arts Festival. In July 2018, Hallmark proudly sponsored the Arts KC Latino Art Festival in Kansas City, Kansas. Doug Brown, senior graphic designer, Hallmark, helped children celebrate all colors with coloring pages designed by Hallmark artists. Hallmark also displayed greeting cards and developed three selfie wall backdrops for festival attendees to share their experience. n

HALLMARK 2018 SOCIAL RESPONSIBILITY REPORT

2018

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