Stakeholder Engagement

STAKEHOLDER ENGAGEMENT

We believe that working with stakeholders enhances our ability to address issues. It also contributes solutions to some of our most important challenges while generating value for shareholders. We engage with stakeholders of all types and interests, striking balance between their needs and the needs of our business and society. We actively listen to and learn from stakeholders and provide them with information to better understand our actions and our intentions.

We take a broad view of potential stakeholders, including people or organizations that can affect, or be affected by, Disney. This includes employees, consumers, communities, shareholders, distributors, licensees, suppliers, factories, retailers, contract workers, nonprofit and nongovernmental organizations, media and governmental organizations.

We find conversations and collaboration with stakeholder groups an effective contribution to driving business value and our citizenship approach. These organizations, which are often focused on the environment, health and nutrition, labor standards and other areas of strategic interest for the Company, have helped us chart our sustainability goals and programs.

While we have made progress in these areas, there is much work to be done and we will continue to reach out to our stakeholders for critical guidance and feedback along the way.

Recent Engagements

We engage with stakeholders routinely and in a variety of ways, including in-person and Web-based meetings, conference calls, correspondence, working groups and workshops, and conferences and events. Frequently this engagement focuses on projects of joint interest. Here are a few examples of recent engagements.

Developing Educational Standards for Disney Programs
Disney´ s Planet Challenge (DPC), a national project-based environmental competition for elementary and middle school students, has worked with organizations to ensure that the program meets rigorous educational standards. We collaborate in this process with the National Science Teachers Association (NSTA) and WestEd: K12 Alliance. Both nonprofit organizations promote excellence in science education.

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DPC engaged WestEd: K12 Alliance to draft an educationally-sound curriculum complete with a series of lesson plans for every eligible state and grade. WestEd: K12 Alliance developed these plans to adhere to specific state and federal academic standards and guidelines. The lesson plans are available for download, helping teachers plan and integrate projects in accordance with state curriculum requirements.

The NSTA helps plan and promote the annual competition, distributing marketing materials to its 60,000 members. Judging takes place at the NSTA National Conference in March. The actual judging is managed and facilitated by WestEd: K12 Alliance, which developed the scoring rubric for DPC project submissions. This process helps to ensure that the competition winners are selected objectively with a strong emphasis on the educational components of the project portfolios.

Managing Environmental Trends and Issues
Our citizenship team and business unit leaders regularly scan the landscape, identifying issues and opportunities relevant to Disney. Recently, the citizenship team reached out to several groups of stakeholders — including members of our internal executive Environmental Council, corporate environmental peers and leading non-governmental organizations (NGOs) — for perspectives on Disney´s environmental strategy moving forward.

Emerging issues include a greater concern for sustainable consumption, fresh water use and ecosystem conservation. In addition, we heard support for continued commitment to mitigating our climate and water impacts. Armed with this updated view of the issues landscape, the Environmental Council and other environmental leaders are tasked with integrating these findings into our long-term planning process.

Report Engagement

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In the fall of 2010, Disney joined Ceres, a national network of investors, environmental organizations and other public interest groups working to address sustainability challenges. We believe our membership in Ceres and subsequent stakeholder engagement will help strengthen our corporate citizenship approach.

Ceres helps companies develop and engage with a formal group of stakeholders who provide critical guidance for corporate citizenship efforts. We focused our first engagement with this team on a draft of the Company´ s 2010 Corporate Citizenship Report.

Ceres convened a group of stakeholders representing the socially responsible investment community and NGO leaders in the areas of children´ s media, the environment, human rights and philanthropy. Their feedback has provided important direction for further development of our Citizenship approach.

This group challenged Disney to provide a detailed description of our strategy and additional context for our Citizenship efforts. They also asked us to be as open as possible about potential challenges and to examine where we could be doing more. We have since updated a number of sections of the Citizenship report, including environment and promoting healthy lifestyles, and integrated more information on challenges.

We also note that there remains a need for improved reporting measures throughout our report, including substantive, time-bound and cross-cutting metrics across our focus areas. We are in the process of developing these metrics and provide our approach in the Looking Ahead section. Our stakeholders also requested specific information in areas such as transportation and fuels, sustainable consumption and employee engagement, which we hope to include in future reports.

Constructive input is invaluable to our reporting process and our citizenship principles. We encourage Feedback through this website as well.

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