second memo report：Stitch Wear

Memo Report

To:                       Heads of all subsidiaries

From:                    Ziyu Xu (Head of Marketing and sales)

Date:                     20 October 2011

Subject:                  Improve CSR Profile

Introduction:

On 20^th October, all the board member of top management gathered and discussed the improvement about our company’s CSR profile. Everyone attended the conference strongly agreed the ideas of establishing a healthier social image and market our ethical stance, in order to gain a increasing reputation and commercial viability. We have reached our decisions and made a general plan about the action we will take in the future to achieve our aim.

Findings:

CSR Report:

Before everything starting, we decide to conduct a research among our suppliers and contractors to ensure that there is no child labor under 14 in our company and operative corporations anymore. Also in this report, we also announce that the whole company will be committed to social and environmental responsibility and the ETI would help us monitor the implementation of this plan.

Overseas Suppliers

After setting all the regulations, a regular examination to our suppliers is a direct and easy way to test them whether they carry out their accountability properly. Therefore, a three-month visit to our suppliers will be organized by human resource department, and every supply managers is asked to hand in a monthly report informing of the general operation. Besides, every top manager of our overseas suppliers will receive a short training about the company culture, especially about the CSR, before their employment. Also, there will be a serious penalty, if we find any suppliers go against our regulations.

Program for child employees

For the child labor we or our suppliers employed, we will set up a series of programs, including, education, health and technical training. All the material such as, books and textbooks are offered by our company.

Sustainability of Supply Chain

With the purpose of establishing a sustainable supply chain, we outsource the whole supply chain to ETI, which is obvious more professional and experienced. And ETI is responsible for the suppliers, which means ETI should have close connection with the company and suppliers. So a monthly report is also needed, whereas it still remains its own right to handle any emergency in the process.

Marketing Strategy

Even though, the used brand name was linked to the child labor by the public, maintaining of this name show the sincere we want to change and undertake more social responsibility. Additionally, we are going to set up a fund, devoted to helping child labor return to school and provide help in healthy and financial aspects. A quart report about the foundation will be published to general public to remain the high transparency of the foundation. What’s more, we will launch a campaign, called “Five cents, every product”, which means we will donate five cents from the every products we sale to the charity.

Sponsorship

Considering about the financial pressure, Sponsorship not only share financial pressure, but also advocate our campaign, and leverage our position efficiently as well. We intend to have an annual New Year Eve Party to raise money and find sponsorship for the next year charity plan.

New team

Since we design a series of action about our CSR, we do need a special new team taking charging of those plan and action. Our HR department will arrange such kind of a team in a week after this meeting.

Suggestion

Finally, we think a 1% raise in our price would help us make up for some decrease in revenue, and 1% raise is a small amount for every customer.

Conclusion and recommendations

All the top managers support the point that being ethical do strengthen our sustainability and viability, given the circumstance that the demands and expectation of society increase greatly. Nevertheless, keeping the balance between our own accountability and CSR could be the problem in the future and we should also consider the financial flexibility at the same time. W

We look forward to your reaction and hope to see this plan being conducted in the whole company.

Ziyu Xu

Head of Marketing and sales.