Everything we do at Timberland grows out of our relentless pursuit to find a way to make it better-from creating practical, purposeful products for consumers who value the outdoors to delivering strong results for shareholders and forging powerful partnerships that create positive, sustainable impact in our world. "Make it better" is both a promise and a challenge - it reflects upon the progress in our past and the considerable work that remains ahead.

Our commitment to corporate social responsibility is grounded in the values that define our community: humanity, humility, integrity and excellence. For over 30 years, "community" has been synonymous with the ethic of service-the desire to share our strength for the common good. Our approach to building and sustaining strong communities includes three primary strategies: engaged citizenship, environmental stewardship and global human rights.

At the center of all we do is a vast network of local international partnerships that provide the expertise, credibility and wisdom to assure that our efforts are collaborative, sustainable and relevant. As we serve, we gain inspiration and direction from nonprofit partners such as City Year, CARE and Clean Air-Cool Planet. It's the challenge and example set by these important partners that allow for our future growth as responsible corporate citizens.



Our Path of Service™ program is a unique opportunity for employees to forge their own journey as active leaders through 40 hours of paid volunteer service or a paid long-term service sabbatical. Through a myriad of service events and programs, employees invest their time, skills and energy to transform the communities where they live and work. Timberland employees have invested more than 278,000 hours and partnered with nonprofit organizations in 27 countries around the world as a means to create positive, sustainable change for children, families and our environment. Their civic leadership has infused our corporate culture with passion, dedication, creativity and loyalty.

Our commitment to strengthen communities around the globe extends to our consumers, business colleagues and community partners. We recognize the vast potential of like-minded individuals united for the common good and embrace-as our responsibility-the opportunity to foster the ethic of service as the foundation of our most critical relationships. Programs like the Community Builders Tour, and our annual global events like Earth Day, and Serv-a-palooza align us more closely with partners as we share the same goal of increasing our collective impact through service.



We're equally committed to improving the quality of life for our business partners' employees. Through our Code of Conduct program, Timberland works to ensure that our products are made in workplaces that are fair, safe and nondiscriminatory. Beyond training factory management, educating factory workers, and auditing for compliance with our Code of Conduct, we also partner with nongovernmental organizations and international agencies such as Verité, CARE, and Social Accountability International to help us develop programs focused on continuous improvement and sustainable change.



With our obvious interest in the outdoors, it's not surprising that environmental stewardship is particularly important to Timberland. We realize that manufacturing our products and managing our business have an impact on the environment, and we're committed to doing something about it. We collaborate with innovative organizations such as Clean Air - Cool Planet and the Organic Exchange to address our contribution to the climate change, reduce our use of harmful chemicals, and increase our use of more-sustainable natural resources.

As we rely heavily on our strategic partners in all of these areas for their guidance and expertise, it seems only natural to feature their commentary in this report. In the following pages, you'll read their feedback on our accomplishments, as well as their views on the important steps we need to take to further evolve our goal of "doing well and doing good." We're pleased with the progress we've made, but we're committed to making greater positive impact in our workplaces, our communities and our environment.


Sincerely,

Jeffery B. Swartz
Timberland President & CEO