25 SOCIAL IMPACT EMPLOYEE EXPERIENCE CONTINUING TO EVOLVE IN RESPONSE TO COVID-19 Our employee engagement efforts have taken on increased importance during the global pandemic. Throughout the year, we distributed numerous internal communications and hosted 18 virtual Town Halls with our Medical Advisory Board across brands, regions, and functions to answer questions, provide support, and share resources. In fiscal 2021, we also launched a new initiative to evolve the way we work and enhance work-life balance and productivity. As part of this effort, we introduced a set of How We Work Together principles and Meeting Effectiveness Guidelines to lay the foundation for our “future of work” approach. We dedicated our annual Mental Health Awareness Month (May 2021) to raising the profile of several initiatives targeted to help our employees balance work-life and overall well-being. Included were: Global Reset Day, a global day off in support of employees; staging special events and programs across our regions in support of emotional wellness and community; and raising awareness of assistance programs that are available to our employees to improve mental health, including access to counseling and crisis services. We continue to be guided by our values of treating our employees with the utmost respect and fairness and honoring our civic responsibilities to the global communities we serve, while remaining focused on maintaining our company’s long-term growth. Despite the prudent financial measures we took in response to COVID-19 in fiscal 2021, mitigating the long-term impact of the pandemic required us to make some difficult decisions, including furloughing and laying off some members of our workforce. We have endeavored to manage through this time with sensitivity and care. LISTENING TO EMPLOYEES We place a premium on staying connected to our employees and understanding their needs and concerns. We use surveys as one mechanism to measure engagement levels across the organization and gather valuable feedback. Key topics covered during employee engagement include inclusion, diversity, and equity (ID&E); learning and development; work-life structure; and employee benefits. Based on our review of employee survey results, as well as inputs gathered via other employee interactions, we implement action plans to enhance employee satisfaction and facilitate alignment with our overall human capital strategy. We deployed an Enterprise Pulse Survey in January 2021. The survey was designed to help us better understand how the events of 2020 impacted employee engagement and well-being and to inform how we can best support our employees in the future. Despite the challenges of fiscal 2021, overall engagement increased compared to employee surveys conducted in previous years. Results showed positive change throughout our organization regarding: • providing employees with resources to support their needs • making employees feel recognized • communicating with employees and keeping them informed • dedication to social impact and sustainability We will continue to prioritize greater enhancement of work-life balance; better linking of organizational priorities and goals to individual performance; and ongoing focus on employee growth and development based on employee responses to the survey. CONNECTING THROUGH THE MYELC PLATFORM In fiscal 2021, we modernized MyELC, our internal employee website, to transform and enhance the digital workplace experience for employees worldwide. The new site encourages employee engagement while serving as a one-stop-shop for important Company news and information and fostering greater collaboration and productivity. Employees can use social-media-like features to “like” and comment on postings, personalize their news, and collaborate in communities related to their role, function or region. They can also access content related to priority focus areas including Inclusion, Diversity & Equity; resources such as our Beauty Inspired, Values Driven Interactive Learning Guide; and key applications to do their jobs effectively.