Giving . . . with a purpose

Avery Dennison Foundation’s new philanthropic mission and strategy focuses the Company’s values and ideals into actions that show “we care.”

This spring, when a dozen engineering and science students at three universities in China are awarded scholarships for “invention and innovation,” they not only will be the first Chinese recipients of scholarships funded by the Avery Dennison Foundation, they will also signal a new era and direction in the Company’s approach to charitable giving.

“InvEnt” (invention + entrepreneurship) – the Avery Dennison Foundation Spirit of Invention Scholarship Program – seeks to foster the spirit of invention and entrepreneurship in China as a means to inspire creative, inventive students to become significant contributors to the economic well-being of their communities. InvEnt not only provides financial assistance to students chosen through a competitive process, but also presents opportunities for our employees to help educate and train a much broader number of students through workshops and lectures.

InvEnt is a pilot program that was conceived from the Company’s desire to be more strategic in its charitable giving, while engaging the core competencies of our employees to enhance our philanthropic efforts. The fundamental concepts behind the program – social responsibility and entrepreneurship – are deeply rooted in the Company’s values system and history.

A tradition of caring
Charitable giving has been a tradition of Avery Dennison for decades, inspired by Founder Stan Avery’s personal philosophy and values. Recognizing its obligation to be a good corporate citizen, the Company has for many years, through its Corporate Contributions Program, provided financial support to charitable, educational, civic and social welfare nonprofit organizations in the communities in which employees reside and work.

Two years ago, senior management called for an overhaul of the Company’s giving program, shifting primary grantmaking activities from the Corporate program to the Avery Dennison Foundation.

Unlike the Corporate giving program – where the ability to give is based on the Company’s bottom-line performance – the Avery Dennison Foundation, which was established in 1978, is an endowed philanthropic organization that contributes 5 percent of its assets annually, assuring consistent giving levels year to year. Aided by a major investment by the Company in 2006, Foundation assets have grown to nearly $20 million – enabling the Foundation to make grants in 2007 totaling $1 million.

Strategic goals identified
Thus, with increased resources and the opportunity to redefine its strategic priorities and operating structure, the Foundation board made a comprehensive, holistic evaluation of its giving programs and, most importantly, identified what it aspired to be as a giving entity. That assessment process resulted in specific strategic goals:

• Contributions that substantially aligned with Avery Dennison’s business goals and values
• Global orientation to charitable giving
• Targeting needs in geographic areas in which Avery Dennison has significant interest – particularly China and India

To achieve these goals, a new mission and focus areas for the Avery Dennison Foundation were created – providing a clear direction and framework for grantmaking.

Mission

The Foundation funds:

• Scholarships and awards at institutions of higher education in the areas of business leadership and technology
• Research in materials science

Proactive giving
“This clear strategy and direction for giving allow us to focus our limited resources to achieve the greatest positive social impact, while aligning closely with the Corporation’s strategic goals,” says Diane Dixon, senior vice president, Corporate Communications and Advertising, who serves as Foundation president. “The Foundation is still in its early days of establishing its new operating procedures, but the transformation – from a reactive-giving culture to a proactive-giving culture – promises to raise Avery Dennison’s philanthropic activities to a new level of effectiveness and awareness both within and outside the Company.”

That’s good news for both the Company and the Foundation, as the Avery Dennison Foundation’s philanthropic activities will play a positive role in addressing issues of corporate social responsibility.

Major tasks lie ahead for the Foundation in the coming year, as it establishes its operating structure and procedures, while launching initiatives like the InvEnt program in China. For example, with the goal of attracting quality students to our industry, the Foundation plans to establish a faculty chair at a university in India to develop a curriculum in self-adhesive technologies. In addition, an evaluation of local charitable giving across the Company is currently underway, with a new Corporate policy on community-based charitable giving to follow.

Look for updates on the progress of these and other projects sponsored by the Avery Dennison Foundation in the coming months.

“At Avery Dennison, we consider philanthropy both a responsibility and a privilege,” says Dean Scarborough, CEO. “Our new approach to giving enables us to achieve important goals related to the improvement of our society, and at the same time, concentrate our efforts in areas that align with where the Company is focused.

“We now balance both the strategic and caring aspects of giving – aligning our business objectives with values. It’s an exciting process and I’m eager to see it unfold.”