Reebok is proud to release the most comprehensive publication to date highlighting our human rights program. This report focuses on the steps we have taken to protect the rights of workers who make our products and our initiatives to support the work of frontline human rights activists who risk their lives and freedom to defend the rights of those who cannot fight for themselves.

More than 26 years ago, I set out to build a company that did more than make shoes. We wanted to make a difference and in 1988 we saw a way—and unknowingly began to shape the future of the company. We partnered with Amnesty International to support its celebration of the 40th anniversary of the signing of the UN Universal Declaration of Human Rights by sponsoring Amnesty’s Human Rights Now! concert tour. The goal of the tour, which took place in more than 20 cities on five continents, was to raise awareness of human rights and help create a new generation of young people who were committed to defending the rights of people at home and around the world. The experience humbled and inspired us, and set into motion a commitment that continues to build to this day. After the tour, we were fueled by the unconditional need to use our platform to give a voice to the voiceless, and to pave a path for those whose road was blocked by evil, tyranny, oppression and injustice. We committed ourselves to making a difference in the lives of men, women and children around the world and doing it with the same fervor and energy we put into growing our thriving business. Since then, Reebok has worked tirelessly to raise awareness of human rights and to protect the workers who make our products. Our human rights program and our commitment to justice have defined the culture at Reebok and mean a great deal to me and to our employees.

One of our first steps after the Amnesty tour was the establishment of the Reebok Human Rights Award. To date, Reebok has supported the work of, and brought international attention to, 80 young human rights defenders from 36 countries, for their uncommon courage and leadership in the defense of human rights. The inspiration of these human rights heroes led Reebok to examine the human rights implications of our business practices, and we have since become a leader in positively changing the way companies in our industry do business.

In 1992, we were the first in our industry to create a code of conduct for workers in factories based on internationally recognized standards. It was a critical first step, but was just a beginning and we realized we had much more to accomplish. In 1996 we learned that child labor was used to stitch soccer balls made in Pakistan. We devised a unique plan to end this practice by consolidating all ball stitching in a newly constructed factory dedicated to Reebok ball production that guaranteed manufacturing without child labor. This initiative, another first of its kind in the industry, included a program to raise funds for the educational and vocational needs of children in Pakistan through the sale of Reebok soccer balls.

From the success of these initiatives, we began to extend the reach of our human rights program. In 1998, the Reebok Human Rights Foundation, which provides support to organizations involved in the protection and promotion of human rights around the world, was expanded to include programs to promote the rights of workers in countries where Reebok products are manufactured. One year later we released Peduli Hak, the industry’s first credible, in-depth independent audit of factories. In 2001, we collaborated with non-governmental organizations to facilitate the democratic elections of worker representatives in China. Soon after, an editorial in the South China Morning Post said the elections “could offer the prospect of greatly improved working conditions to millions of other workers on the mainland.” With these, and other accomplishments, it became clear to me that we were making a difference. But rather than rest on our laurels, we dedicated ourselves even more to becoming a powerful force for change.

The past few years have seen continued progress. In 2004 and 2005, the Fair Labor Association accredited Reebok’s compliance program to improve working conditions for apparel and footwear factory workers. In 2004, we founded the Fair Factory Clearinghouse, a non-profit organization dedicated to making it easy for companies to manage supply chain compliance and to encourage the sharing of non-competitive information about workplace conditions.

Our work is far from over. As we continue to improve conditions in factories, we are still faced with difficult challenges. Improper overtime payments, excessive working hours, verbal harassment and the need to establish a stable supply chain that can sustainably support the rights of workers are among the major hurdles we are working diligently to overcome. These challenges do not deter us, they strengthen our resolve to improve conditions for workers through our own company efforts, through industry-wide initiatives and through collaborations with organizations that have the trust of workers.

It is likely that someone reading this report may have some level of skepticism. After all, can a brand in a competitive market really afford to care about human rights? For Reebok, the short answer is yes. This work helps define who we are, engenders trust in our brand and creates a culture of pride among Reebok employees. Workers in factories are beginning to understand that when Reebok is involved in their workplace, their rights are better protected. From this, we strongly believe that productivity and quality is likely to benefit.

Back in 1988, we acted on instinct—we did what we thought was right. Over time, I have come to realize there is a clear business case for our stance on human rights and I cannot envision doing business any other way. I am extremely proud to have built a company that believes that responsibility to others and a commitment to making a difference goes hand-in-hand with success.

In August 2005, Reebok and adidas announced that they would be merging. I look forward to this partnership and see great things in our future. Like Reebok, adidas is a strong brand with a long and storied heritage, and as an ally in the on-going and important effort to protect the rights of workers, adidas also holds many of the same values that we have here at Reebok. By joining together, our ability to continue to make progress and promote positive change will only increase.