Our centralized capabilities for worldwide procurement and sourcing enable us to deliver to our customers competitive, high quality and low cost goods on a timely basis. We have an extensive established network of worldwide sourcing partners that enables us to meet our customers' needs in an efficient manner and not rely on any one vendor or factory or on vendors or factories in any one country. We also operate a network of wholesale and retail distribution centers that we believe has sufficient capacity to accommodate planned growth, as well as additional brands we may license or acquire, without a significant increase in capital expenditures post-integration of the acquired Warnaco businesses. We believe that our investments in logistics and supply chain management allow us to respond rapidly to changes in sales trends and customer demands while enhancing our inventory management efficiencies.
To address the needs of our customers, we are continuing to make investments and develop strategies to enhance our ability to provide them with timely product availability and delivery. Our investments in sophisticated systems should allow us to reduce the cycle time between the design of products and the delivery of those products to our customers. We believe the enhancement of our supply chain efficiencies and working capital management through the effective use of our distribution network and overall infrastructure will allow us to better control costs and provide improved service to our customers.
Corporate Social Responsibility
Through our work over the past two decades, we have seen how Corporate Social Responsibility (CSR) adds value to PVH and why it is a fundamental component of our business strategies and practices. PVH is a company rooted in community involvement; a good corporate citizen offering a great place to work. We are proud to have maintained this culture through several large acquisitions and significant global growth over the last decade. For the past four years we have been included on the Corporate Responsibility Magazine’s "Best Corporate Citizens" list. In 2012, we ranked in the top 10 for human rights and corporate governance on this list, and were also ranked as one of CR's "100 Best Corporate Citizens" for the third year in a row.
As one of the largest lifestyle apparel companies in the world and still growing, we believe it is imperative to continuously refine and improve our CSR strategy so it evolves with our business objectives. In 2012, we strengthened efforts to take a more holistic approach to the supply chain. Whereas the principal focus has traditionally been human rights, new initiatives under this expanded supply chain strategy included fabric innovations, chemicals management and environmental data tracking.
We are proactively focused on driving fire and building safety in Bangladesh, as well as in other places where we manufacture. We have agreed to sign the Accord on Fire and Building Safety in Bangladesh, been voted onto the Accord’s steering committee and have committed $2.5 million to underwrite the safety program. Through this multi-stakeholder initiative, we will be able to create a safer working environment for all. While participating in the design and implementation of the Accord, we have also bolstered our own internal safety program to include building integrity and electrical safety in the scope of our assessments and training. In 2013, we aim to strengthen the foundations of our leading program by continuously improving our strategy and impacts through increasing innovation and efficiencies. Some key focus areas for the future include:
- A continued expansion of our supply chain work to include a robust clean production program, including chemicals management;
- Strategic collaboration and partnerships to increase information sharing and meaningful progress on human rights and the environment issues;
- An enhanced communication strategy to further empower our associates and other stakeholders globally; and
- The effective integration of all brands into our CSR program.
Because CSR is integral to our success and longevity, our goal is to embed it in everything we do and to track our impacts globally. We will achieve this goal by inspiring and empowering our people, our customers, our partners and our community; reporting our progress and working collaboratively towards positive change.
Corporate Social Responsibility
Central to our identity is a genuine commitment to corporate responsibility, a fundamental component of how we run our business that is directly linked to our strategies and practices.