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Report on Social Responsibility

MACY’S BLOOMINGDALE’S

Updated April 2013

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This publication, our Report on Social

Responsibility, outlines Macy’s, Inc.’s

philosophies and illustrative actions on

a wide variety of subjects – including

environmental sustainability, product

sourcing, consumer choice, community

support, diversity and inclusion,

employment and corporate governance.

In doing so, we seek to present a holistic

picture of our role in society and how

we support the common good. This

publication is intended as an information

resource for all of our stakeholders –

customers, associates, shareholders, and

community and government leaders.

Our company has accomplished much,

however, it is important to note that we

have plenty of opportunity to improve.

There really is no finish line in social

responsibility. Rather, we must keep

moving forward and innovating. That is

why we measure our progress in areas

where data is available and tracking is

viable. We report the data publicly so we

can challenge ourselves and document

our progress.

Thank you for your interest in our company

and for your support in joining with Macy’s

and Bloomingdale’s to make our local

communities, our nation and our world a

better place to live and work.

Sincerely,

Terry J. Lundgren

Chairman, President and Chief Executive

Officer, Macy’s, Inc.

Letter from Terry J. LundgrenAt Macy’s, Inc. we pride ourselves on being part of a company that operates with integrity, makes

good choices and does the right thing in every aspect of our business.

About the Cover: Macy’s Path to Peace program features colorful handmade baskets woven by

Rwandan women who survived the genocide and civil war. See Page 18.

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Tangible Progress in Sustainability

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Macy’s, Inc. remains steadfastly committed to sustainability. We have made significant progress on all fronts over the past several years and we continue to look for new ways to minimize our environmental impact.

As a leading national retailer with a significant workforce, we have the opportunity to make a meaningful difference in improving the environment. And we do so by using resources more efficiently and striving to reduce our overall impact on the environment. We must, however, operate within the bounds of good business decision-making so that each action we take is measurable, sustainable and enduring.

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01 / We will be aggressive in our drive

to eliminate wasteful behavior. In some

cases, this requires consistent application

of very simple principles, such as reminding

our associates to turn off lights when

rooms are not in use, to print fewer hard

copies of e-mails, to recycle waste, to

optimize facility performance and to use

mass transit for commuting to work. In

other cases, we will be pursuing systematic

improvements to the way we do business,

such as better targeting customer mailing

lists and shifting marketing to electronic

media so we are producing and sending

fewer printed advertisements.

02 / We will reduce our use of scarce

resources in a meaningful way. Macy’s,

Inc. will pursue ongoing programs to

consume less electricity and water, reduce

our waste stream, and source more of our

power from renewable resources such as

solar energy. We will use fewer paper-

related products, recycle more and seek

to use paper made with post-consumer

waste. We will work to migrate more of our

output from paper to electronic/digital,

including large-scale projects such as

monthly customer billing statements. By

doing so, we will reduce the company’s

greenhouse gas footprint, energy

consumption and costs.

03 / Whenever possible and sensible

within the context of our business

requirements, Macy’s, Inc. will pursue the

most environmentally-friendly solution.

We will be as aggressive as possible

in changing for the better to preserve

endangered forests, wildlife, water quality

and eco-systems. We will explore ways

to make our shopping bags, gift boxes,

wrapping tissue, merchandise hangers and

other staples of retailing from recycled

and/or certified paper sources, with a

preference for Forest Stewardship Council

(FSC) certification. The building materials

used in our stores will be environmentally-

certified whenever reasonably possible.

Macy’s 5-Point Action PlanMacy’s, Inc.’s commitment to sustainability is multidimensional.

Waste Recycled 2008: 50,202 tons

2009: 53,005 tons

2010: 65,828 tons

2011: 68,897 tons

2012: 72,000 tons (goal)

04 / We will take a comprehensive approach

to sustainability, involving everyone around

us. Macy’s, Inc. will advocate sustainability

and renewability with our vendor partners,

associates and customers. This will include

developing supplier sustainability standards

and promoting eco-friendly products to our

customers. We will encourage our associates

and ask them to support our initiatives with

their ideas, energy, personal actions and

volunteer time. We will support efforts in

our communities and our nation to clean

up the environment and reduce consumption

of scarce resources.

05 / We will measure what we do and

strive toward quantifiable goals. Macy’s

sets and periodically refreshes sustainability

goals to guide our progress. Here is a

snapshot of our progress against goals in

key areas of sustainability.

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Sustainability Goals

At the end of 2011, total

energy consumption on a

kWh-per-square-foot basis has

been reduced by 31 percent

since 2002.

About 22 Megawatt Hours of

renewable energy are generated

annually on 41 Macy’s facilities,

and all but 3.7 Megawatt Hours

are sold to others.

At the end of 2011, total paper

use has been reduced by 17

percent since 2007.

In 2011, 93 percent of all paper

used by Macy’s in marketing

materials (such as direct mail)

is recycled (10 percent PCW or

higher) or certified, up from

3 percent in 2006.

Sustainability now built into

all Macy’s and Bloomingdale’s

store design, remodel and

construction projects.

Energy Consumption Hosting Renewable Energy Sources (i.e., solar)

Paper Consumption Use of Recycled/ Certified Paper

Use of Sustainable Building Materials in Major Construction

Reduce total energy use on

a kWh-per-square-foot basis by

another 10-15 percent by 2010

(recognizing that the company

reduced energy consumption

by 9 percent over the past

five years).

Increase our use of renewable

power sources eight-fold by

2010 from 2006 levels.

Reduce the amount of paper we

use by at least 20 percent by

2010 (from 2006 levels).

Increase the percentage of

third-party certified and/or

recycled (10 percent PCW

or higher) paper we use in

marketing materials by 20-fold

by 2010 (from 2006 levels) to at

least 50 percent.

N/A

Reduce total energy use on a

kWh-per-square-foot basis by

another 8-10 percent by 2013

(compared with 2009 levels),

recognizing that we already have

reduced our energy consumption

by about 19 percent over the past

seven years (2003 to 2009).

Host an additional 15 percent to

25 percent of renewable energy

sources by 2013.

Reduce the amount of paper

we use by at least 10 percent

by 2013 (from 2009 levels).

This is on top of a reduction

of 23 percent in the 2007 to

2009 period.

Increase the percentage of third-

party certified and/or recycled

(10 percent PCW or higher)

paper we use in marketing

materials to 90 percent by 2013

from 43 percent in 2009.

Increase the use of sustainable

building materials in all major

construction projects by

20 percent by 2013 (over

2010 levels).

CaTEgoRy

INITIaL goaL SET IN SPRINg 2008

ENHaNCED goaL RE-SET IN 2011

CUMULaTIVE IMPaCT

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Sustainability In Action

01 Black Hangers

In fall 2011, Macy’s began

using environmentally-friendly

matte black hangers for most apparel

merchandise sold in its stores, replacing

clear hangers that have been the industry

standard for several decades.

Macy’s uses nearly 300 million hangers

each year in its stores. The new black

hangers can be manufactured using

recycled plastic materials, saving on the

new petroleum-based resins used to make

clear hangers. Macy’s is migrating to black

hangers in conjunction with the Voluntary

Industry Commerce Solutions (VICS)

Association, an industry group in which it

plays a leadership role.

201110090807 2012

201110090807 2012

6.4%

26.2%

7.1%

30.9%

8.2%

33.0%

9.5%

37.2%

11.9%

40.5%

15.4% (goal)

45.0% (goal)

02 LED Lighting

The company has installed

about 1.1 million energy-saving

LED accent bulbs in more than 800 Macy’s

and Bloomingdale’s stores across America

since 2010, cutting energy consumption

used in lighting by up to 73 percent

compared with the conventional bulbs

they replaced. Total energy savings are

estimated at about 142 million kilowatt

hours every year, the equivalent of

eliminating carbon emissions from about

228,000 barrels of oil. In addition, these

LED bulbs have an expected life of five to

10 years (compared with less than one year

for traditional bulbs), thereby reducing

landfill disposal. Macy’s was the first

department store company to implement

the use of LED accent lighting on a

wide scale.

Paperless Billing

Percentage of customers who have

chosen paperless e-billing for their

Macy’s credit card

Electronic Bill Pay

Percentage of customers who pay their

Macy’s account electronically

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Sustainability In Action

03 Improvements in Store Packaging

Macy’s has made great

strides in enhancing sustainability in the

bags, boxes and wrapping tissue used

in its stores.

In 2008, Macy’s replaced the primary

handled shopping bag used in its stores

with one made from kraft paper. The

bags are 100 percent recycled with

50 percent recycled material. The new

bag also is 100 percent recyclable. It

replaced a laminated paper bag that was

neither made from recycled content nor

recyclable. In total, Macy’s uses more

than 63 million handled shopping bags

each year.

In addition, in order to provide customers

more options when making a purchase,

all Macy’s stores carry reusable tote

100%Macy’s shopping bags

are totally recyclable

with 50 percent

recycled content.

bags. The totes sell for a nominal amount,

encouraging customer use.

Macy’s stores and websites continue to use

recyclable folding gift boxes (100 percent

recycled with 35 percent post-consumer

waste) and wrapping tissue (100 percent

recycled with 40 percent post-consumer

waste). Each year, Macy’s uses approximately

36 million folding gift boxes and 87 million

sheets of wrapping tissue.

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Product Sourcing

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There is no shortage of talk about the obligation of public companies to be socially responsible to the people and communities where they do business. At Macy’s, Inc., we hold those same beliefs — along with a belief that actions speak louder than words when it comes to helping tackle some of the toughest problems facing us today.

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Since 1995, Macy’s, Inc. has had a

stringent Vendor & Supplier Code of

Conduct that sets out specific standards

and requirements for any vendor doing

business with Macy’s, Inc. and is designed

to protect workers in this country and

abroad. All of the company’s vendors are

required to agree in writing to comply

with the company’s Code of Conduct.

Among other things, the Code requires

that suppliers of Macy’s private brand

merchandise allow unannounced factory

inspections for contractual compliance,

as well as for compliance with laws and

regulations dealing with child or forced

labor, wages and hours, and unsafe

working conditions. Willful noncompliance

with the Code has resulted in termination

of certain suppliers.

Macy’s, Inc.’s policy on sweatshops

and forced or child labor, as well as the

company’s Vendor & Supplier Code of

Conduct, is posted at macysinc.com/

vendorcodeofconduct. The Code also is

available by calling 1-800-261-5385.

Human Trafficking and Slavery

Macy’s, Inc. will not tolerate the

involvement of its suppliers in human

trafficking and slavery. We will quickly

investigate any reports alleging human

trafficking and slavery in the supply

chain, and will take swift and decisive

action against any supplier that is found

to act improperly in this regard. We have

enhanced our Vendor & Supplier Code

of Conduct and our audit tool used for

factory audits to emphasize our policies

on human trafficking and slavery.

Our employee training features a three-

tiered approach. We produce and

distribute a formalized Vendor & Supplier

Code of Conduct. We provide video-

based training on our requirements of

vendors. And we conduct group training

for all Private Brand executives who visit

overseas factories that produce goods

for Macy’s.

Vendor & Supplier Code of Conduct

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Macy’s, Inc. requires various types of

audits at factories worldwide that are

contracted to produce goods we design,

market and sell as part of the Macy’s

Private Brands program.

The audits are conducted by UL

Verification Services, an independent

third party that has been a member of

the UN Global Compact since 2003. Our

auditor brings in-depth experience in

verifying employment practices, including

age and wage in accordance with local

labor laws; factory health and safety;

and living facilities. Audits also include

private interviews with workers in various

departments to confirm factory policies.

Through the inspections and audits,

Macy’s holds its suppliers accountable

that the merchandise produced for it is

manufactured in compliance with the

Vendor & Supplier Code of Conduct, as well

as consistent with local laws and regulations.

Initial audits of New Vendors

Before conducting business with a new

factory, our third-party inspector performs

thorough audits as a normal course of

assigning business. Free On Board (FOB)

suppliers – those with whom we directly

contract – undergo a combined Code of

Conduct and Security audit. Landed Duty

Paid (LDP) suppliers – typically U.S.-based

companies that source overseas – undergo

a Code of Conduct audit.

In every case, vendors must meet or

exceed Macy’s minimum standards before

being approved for production and set up

in our system for merchandise orders.

If problems are identified, the factory

may be provided an opportunity to make

corrections. In those cases, we then repeat

the inspections to verify that any issues

have been resolved.

ongoing audits

In addition to initial audits, all factories are

subject to audits every 12 to 18 months.

They are conducted without advance notice

and are conducted more frequently at

factories where violations have been noted

in the past. We maintain our own standards

for compliance, which are among the

highest in the U.S. retailing industry.

We have identified the following violations

as High Risk:

Factory Audits

1. Child or forced labor, restricted freedom

of movement, slavery or human trafficking

2. Physical abuse

3. Attempted bribery or kickback

4. Homeworkers

5. Fraudulent record keeping

6. Unauthorized subcontracting

7. A confirmed violation of the Foreign

Corrupt Practices Act (for companies

subject to U.S. laws) will result in

immediate deletion from Macy’s of

both factory and supplier.

When a High Risk violation is found at any

factory, the situation is elevated internally

at Macy’s for a decision that may include

some type of remediation or removal of the

factory as a supplier.

Macy’s, Inc. also conducts security audits of

its overseas factories in partnership with U.S.

Customs and Border Protection, an agency

of the Department of Homeland Security, as

part of the Customs-Trade Partnership Against

Terrorism (C-TPAT) program. Macy’s has been

part of C-TPAT since the program was initiated

in 2002. The goal of these audits is to further

improve security measures at our production

sites and throughout the supply chain.

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Factory Audit Results for 2011In fiscal 2011 (the year ended Jan. 29, 2012), the company conducted 1,533 factory audits:

Free on Board (FOB) supplier total number of audits – 677

The 1,533 factory audits in 2011 compares to 1,511 in 2010.

During 2011, audits showed a total of 47 factories fell under the category High Risk, which is considered a failure.

Landed Duty Paid (LDP) supplier total number of audits – 856

Of the 47 factories:

38 factories were terminated and are no

longer used for production.

9 factories were allowed to remain active

for production, pending specific corrective

action to improve conditions, followed by

follow-up audits and/or specialized training.

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Training

All Macy’s overseas offices (and our

senior management) are actively engaged

with FOB suppliers and factories on our

Vendor & Supplier Code of Conduct

efforts and audit program. The overseas

merchandising team in each office is

responsible for providing orientation and

training to any new suppliers and factories,

and new factories are encouraged to

carry out a self-audit prior to a third-party

audit being done. We arrange third-party

workshops for factories requiring remedial

support and/or special guidance. We

also encourage all our active suppliers to

establish their own independent in-house

social compliance function to regularly

monitor their compliance across their span

of operations.

Every two years we train the LDP suppliers

in New York on the audit/approval

process by reviewing all requirements and

expectations specific to private brand and

label suppliers. We reiterate what is required

based on our Vendor & Supplier Code

of Conduct and discuss changes to the

program, as well as developments and future

directions in the social compliance arena.

Internally at Macy’s, we have begun to

train new hires from the various merchant

areas to provide an introduction to social

compliance: the history, the evolution, the

challenges, what is expected from the

product areas and what is required to set

up a supplier and factories.

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Consumer Choice

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In a free society as eclectic and ethnically varied as ours, customers expect and demand a range of choices that meet their individual needs and fashion preferences. In our role as retailers, we recognize that it is the consumer who ultimately determines what products will continue to be viable retail offerings. Those decisions are made daily at the cash register by individual consumers and function as a singularly effective barometer for determining what will and will not be sold by retailers in a free and open marketplace. Varied and conflicting viewpoints about what should or should not be sold underscore our belief that factors unrelated to the workings of a free economy are inappropriate determinants of retail offerings.

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Position on Conflict Minerals

At Macy’s and Bloomingdale’s we are

committed to ensuring that the metals and

other minerals contained in the private

brand products we sell are obtained,

produced and used in an environmentally

and socially responsible manner. As such,

we are working to implement and ensure

full compliance with Section 1502 of the

Dodd-Frank Act and the Security and

Exchange Commission guidelines relating

to trade in conflict minerals.

Position on Fur

While we respect the views of individuals

who choose not to buy or wear fur, we also

respect the wishes of many others who are

our customers and who want to make such

choices for themselves.

Labeling: Macy’s requires all its vendors to

comply with all labeling laws. In the case

of labeling fur and fur-trimmed products,

our vendors are required to meet the

requirements of the Fur Products Labeling

Act. Whenever a question arises about the

accuracy of labeling, we will investigate

and take appropriate action, if warranted.

Selling: Our department stores try to be

responsive to customer expectations,

particularly in this highly competitive

environment. Fashion, value and service

are the principles on which our stores are

focused. The consumer will ultimately

determine whether fur will continue to

be a viable product in the American

retail marketplace; if no one wants to

buy fur, retailers will not sell it. Right

now, this is not the case. We understand

that customers want to make their own

decisions and we respect their right to

do so. We sell fur only in a relatively small

number of locations. At the same time,

all of our stores offer a wide range of

other selections across many merchandise

categories. This includes fashions made

with faux fur and many other materials,

including organic cotton, for example.

Consumers have the ability to choose

what they prefer.

Dog/Cat: Our company has a standing

policy against the selling of dog or cat

fur. Our purchase orders require that

all products be labeled correctly. Any

violation of our policies or contracts is

promptly addressed with our suppliers,

and any inappropriate or inaccurately

labeled product is removed promptly from

or otherwise addressed in our stores and

online sales.

Consumer Choice

Position on Merino Wool and Mulesing

In Australia, it has been common practice

to surgically remove, without a pain reliever,

strips of wool-bearing skin around the breech

of sheep to prevent flystrike. Macy’s, through

the National Retail Federation, has been an

active proponent of alternatives to mulesing.

As a result of the efforts of retailers and other

brands, the Australian merino wool industry

has made strides in this regard. Macy’s

supports efforts for further improvement in

this area.

Position on Uzbekistan Cotton

Uzbekistan has a long history of using

children to harvest cotton in spite of

international demand to change this practice.

Macy’s has long had a policy against child

labor and has been vocal with suppliers in

requesting that cotton from Uzbekistan not

be sourced. Macy’s and other retailers have

been united in demanding that Uzbekistan

not use children in the harvesting process.

The National Retail Federation continues to

represent U.S. retailing in the battle to protect

children from forced labor in Uzbekistan. We

also have collaborated with the Responsible

Sourcing Network in contacting textile mills

about our opposition to Uzbekistan cotton in

goods made for sale at Macy’s.

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Socially Responsible Products at Macy’s

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01 Macy’s Path to Peace

Macy’s Path to Peace

program includes colorful and

symbolic baskets and bowls handmade by

Rwandan female weavers who survived

the country’s civil war and genocide. The

products are available on macys.com

and in selected Macy’s stores. Introduced

in 2005, Path to Peace has dramatically

changed the lives of many Rwandans.

From public health initiatives and HIV/

AIDS care to the spirit of hope and

reconciliation fostered by the weavers,

the tangible and intangible impact

of the project is no longer measured

by individual weavers but by whole

communities. More information is

available at macys.com/rwanda.

02 Macy’s Heart of Haiti

Macy’s Heart of Haiti

program includes decorative

pieces (such as textiles, metalwork and

housewares) made by artisans struggling

to recover from the tragic earthquake

of 2010. The products are available on

macys.com and in selected Macy’s stores.

Purchasing one of these handcrafted

masterpieces directly benefits Haitian

artisans by allowing them to support their

families with dignity and purpose. With

steady income comes better nutrition,

improved education and access to

healthcare. Heart of Haiti also offers new

opportunities for artists to collaborate

with U.S. designers, strengthening artisan

associations and inspiring and energizing

their communities. More information is

available at macys.com/haiti.

03 goodWeave™ Rugs

In spring 2011, Macy’s intro-

duced a collection of decora-

tive area rugs that have been certified by

GoodWeave™, an international organization

that works to ensure rugs made by hand

in Nepal and India are free of child labor.

The collection is carried in 10 Macy’s stores

nationwide. By buying a beautiful hand-

crafted rug at Macy’s with the GoodWeave

label, shoppers are helping to support

families and build sustainable communities

in Nepal and India, nations where poverty

is widespread. GoodWeave-certified rugs

are woven by skilled adult artisans, permit-

ting educational opportunities for children

who otherwise might be required to work.

Macy’s continues to work with GoodWeave

to expand the availability of certified rugs in

the United States. More information about

GoodWeave is available at goodweave.org.

Socially Responsible Products at Macy’sSeveral exclusive merchandising initiatives at Macy’s involve products with a focus on

international social responsibility. Here are three examples.

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Community Support

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Macy’s, Inc. supports thousands of nonprofit organizations annually because we believe giving back is the right thing to do. It’s a long-standing tradition and a source of pride for the company. Collectively, contributions in 2011 from the company and the Macy’s Foundation — as well as employee contributions through workplace giving campaigns and customer contributions through our signature giving programs — totaled more than $66 million. In addition, our associates gave more than 111,000 hours of their personal time for community service.

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Our newest giving program, My Macy’s

District Grants, completed its second

year of operation in 2011 and provided

nearly $3.4 million in grants to our local

communities. More than 1,200 individual

gifts were made. The District Grants

program features contributions committees

in each of the Macy’s operating districts

who make local funding decisions. Similar

to our merchandise localization, the District

Grants program aids our local teams in

supporting the organizations and causes

that are important in their respective

local communities.

A major gift in 2011 was our nearly

$1.5 million grant to Make-A-Wish as part

of our fourth annual Believe campaign

during the holidays. Macy’s donated $1

for every letter to Santa dropped into

our special in-store letterboxes, up to

a maximum of $1 million, and added

contributions of more than $500,000 for

letters posted on National Believe Day and

from other in-store events.

Across the country, support from Macy’s

and Bloomingdale’s giving programs

helped sponsor free admission to

museums and exhibits, special musical

performances, art exhibits, and art and

theatre workshops for children. In the

area of education, we funded scholarship

programs, summer reading programs,

mentoring and tutoring, and early

childhood education initiatives. Grants

in our HIV/AIDS focus area included

sponsorship of awareness walks and

runs as well as funding for meals and

nutrition programs, housing programs,

and research and counseling initiatives.

We contributed to environmental

programs covering both conservation and

preservation, including sponsorship of

Earth Day activities, plant programs for

children at botanical gardens, and animal

preservation and awareness programs

at zoos and aquariums. In the women’s

issues focus area, our grants supported

early detection and screening programs

for heart disease, breast cancer and

ovarian cancer; provided a wide range

of assistance to emergency shelters;

sponsored programs to raise awareness

about domestic and dating violence;

and funded self-esteem and leadership

programs for young girls and teens.

Corporate and Foundation GivingThrough our gifts from Macy’s, Bloomingdale’s and the Macy’s Foundation, more than $26 million

was contributed to approximately 4,500 nonprofit organizations in 2011. The majority of our gifts

were directed to our core focus areas for funding: arts and culture, education, the environment,

HIV/AIDS awareness and research, and women’s issues.

4,500The total number of

worthwhile charities

supported nationwide

by Macy’s, Inc. and the

Macy’s Foundation

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Cause Marketing Because Macy’s, Inc. believes in helping to create stronger, more vibrant communities, we invited

our customers throughout the year to join us in making a difference and “giving back.” In 2011,

customers contributed more than $27 million to nonprofit organizations nationwide through our

signature programs.

Go Red For Women

2011 marked Macy’s eighth

year as national sponsor

of Go Red For Women, the

American Heart Association’s campaign

for awareness and prevention of heart

disease in women. In 2011, more than

$4 million was contributed to the Go

Red movement through our Wear Red

Day promotion and from our Thanks For

Sharing holiday rewards program. In eight

years, Go Red has received more than

$29 million from Macy’s and our customers.

Reading Is Fundamental

Customers supported Reading

Is Fundamental (RIF) with

donations totaling nearly

$5 million in 2011 through our Be Book

Smart back-to-school effort and other

campaigns. More than $21 million has

been raised for RIF, the nation’s oldest

and largest literacy organization, since our

partnership began in 2004.

Shop For A Cause

Shop For A Cause is our annual

charity shopping day event

held in every Macy’s store

across the country. In 2011, Macy’s raised

$3.2 million for the March of Dimes which

was the recipient of in-store Shop For A

Cause tickets. More than $39 million has

been raised in the six years that Macy’s has

held this signature “give back” event.

Thanks For Sharing

Thanks For Sharing is

Macy’s holiday rewards

program. In 2011 for the third consecutive

year, $15 million was raised for charitable

organizations across the country. By

enrolling in the rewards program during

the holiday season, customers contribute

to designated nonprofit organizations

located in communities across the country.

In the past nine years, Thanks For Sharing

has raised more than $96 million.

Macy’s Passport Presents Glamorama

Over the past 29 years, the Macy’s

Passport Presents Glamorama fashion

extravaganza has raised more than

$41 million for charities that help fight

childhood illness, cancer and HIV/AIDS.

In 2011 the events combined fun, fashion

and philanthropy in four cities to raise

more than $900,000.

$27 million

Contribution made

by Macy’s customers

in 2011 to nonprofit

organizations

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Macy’s Foundation Matching Gifts

In 2011, the Macy’s Foundation contributed

more than $4 million to charities across the

country as a dollar-for-dollar match of our

associates’ personal charitable contributions

to nearly 3,000 individual nonprofit

organizations throughout the country.

United Way

More than 725 United Way

chapters across the United States

received contributions totaling more than

$10.5 million from Macy’s, Inc. associates

during 2011. Combined with $3.4 million in

contributions from the Macy’s Foundation,

our total contribution was $13.9 million

for 2011.

Earning For Learning

Earning For Learning (EFL) is an initiative

that provides grants to schools where

Macy’s, Inc. associates, their families or

retirees volunteer their time for education

activities such as tutoring and mentoring.

In 2011, the Macy’s Foundation awarded

approximately 100 grants totaling $49,000

through the EFL program, and EFL

volunteers gave 5,000 hours of service to

their local schools.

Bag Hunger

Macy’s, Inc. associates

contributed $1.5 million in

2011 to our companywide Bag

Hunger food campaign to help reduce

hunger in our local communities.

Associate GivingAssociates of Macy’s and Bloomingdale’s are tremendously generous with their support of

nonprofit organizations – with both monetary contributions and gifts of their time and leadership.

They make our “give back” value come alive every day.

25

VolunteerismSince the Macy’s, Inc. Partners in Time employee volunteer program was founded in 1989 in

Atlanta, thousands of volunteers have given more than 2 million hours of community service.

That’s valued at more than $34 million to hundreds of charities we’ve impacted through the years.

Along the way, our Partners in Time

program earned national recognition,

receiving the Points of Light/Hands

On Network “Award for Excellence

in Workplace Volunteerism,” among

other honors. In 2011, more than 33,500

participants joined 2,066 Partners in Time

service projects. Thousands of others

were involved in “give back” initiatives

such as cause marketing and employee

giving campaigns.

Partners in Time and Earning For Learning

volunteers gave more than 111,000 hours

of service in 2011. Partners in Time projects

made a strong impact for youth with 15

percent of efforts benefiting children and

school partnerships. With the success of

our Partners in Time Bag Hunger food

campaign, celebrating its 15th anniversary

in 2012, hunger relief represented 44

percent of volunteerism. Projects for health

issues, including disabilities and AIDS, were

supported by 11 percent of projects, and

7 percent supported breast cancer

research, family violence awareness and

other issues of special interest to women.

2011 Partners in Time Employee Volunteer Projects by Issue Area:

44+15+11+7+5+4+14+H

44% Hunger

15% Children/School Partnerships

11% Health (including disabilities and HIV/AIDS)

7% Women’s issues

5% Environment/Housing/Disaster Relief

4% Arts/Civic/Culture/Holiday

14% Other*

*Projects for diversity initiatives and others.

26

Stories of Giving

01 Los angeles, Ca

As part of the Macy’s Giving

program, the Los Angeles

District Grants committee is sponsoring

the Armory Center for the Arts as well as

the Center’s Eagle Rock Music Festival.

The Center provides year-round, free,

after-school and weekend art workshops,

reaching more than 5,500 low income

and at-risk children, teens and families

each year. Without the Center, most of the

children would never have an opportunity

to play an instrument or learn dance or

fine arts. Macy’s involvement also helps

bring the Eagle Rock Music Festival to

life. The festival generates attention for

the Center and is the premiere free public

music event that brings multicultural unity

to northeast Los Angeles. It features 50

bands, attracting an audience of 100,000

from all walks of life.

02 New york, Ny

In one of the season’s

most highly anticipated

shopping events, Bloomingdale’s and

bloomingdales.com offered customers the

unique opportunity to shop all of the new

spring 2012 fashions while also supporting

an important cause: Mentoring USA, a

national nonprofit organization under the

HELP USA umbrella that is dedicated to

creating positive and supportive mentoring

relationships for at-risk youths.

Bloomingdale’s has provided support

for the organization for more than a

decade, this year continuing to do so with

the semiannual Fashionable Fundraiser

philanthropic campaign, which took place

in stores and online during the weekend

of Feb. 24. The festive event allowed

customers to support Bloomingdale’s

donation pledge of $75,000 to the

organization while shopping for a cause,

enjoying special offers, and learning more

about Mentoring USA and ways to get

involved in their own communities.

Bloomingdale’s commitment to Mentoring

USA also was on display during National

Mentoring Month, which included special

windows at the 59th Street Flagship store

that were designed in collaboration with

the students of New York City’s PS 59.

The annual windows hold a special place

in the heart of the Bloomingdale’s family,

as for the past 12 years, Bloomingdale’s

employees have mentored PS 59

students. There are currently about 100

Bloomingdale’s employees who volunteer

at the school, offering encouragement,

example and inspiration that are vital

in helping the students to realize their

dreams. This year’s windows were filled

with special drawings depicting the

students’ visions of their futures thanks to

the special relationships they share with

their mentors.

27

Stories of Giving

03 New york, Ny

The Macy’s Foundation

underwrites Macy’s Fishing

Clinics for the Prospect Park Alliance in

Brooklyn each summer, enabling the park

to offer the clinic to young anglers twice

each Saturday for most of the summer.

The clinics, which are open to children 15

or younger, teach the youngsters and their

accompanying adult about safety rules,

proper technique and aquatic ecology.

The clinics offer an authentic and enriching

experience, according to Maria Cobo, vice

president for education at the Alliance.

“In addition, we’re teaching environmental

stewardship.”

The grant helps the park provide simple

bamboo fishing poles to children 6 and

under; rods and reels are provided to more

experienced participants.

Previously, the Foundation underwrote the

park’s annual five-day fishing contest, but

that program was replaced by the Macy’s

Fishing Clinics in the summer of 2011.

04 Saginaw, MI

Macy’s relationship with the

Saginaw Art Museum is a

good example of the company’s District

Grants program, through which local

decisions are made about contributions to

local organizations in cities across America.

When Macy’s initiated its partnership with

the museum in 2010, it was more than just

a check. “We asked the museum how we

could really get involved and help,” said

Keri Clawson, VP/store manager at Macy’s

Fashion Square in Saginaw. Brainstorming

around the museum’s theme of “Arts for

All,” the grant turned into “Macy’s Free

Fridays” for the community.

Showing a true partnership, Macy’s

visual merchandising team helped with

the museum’s signage. Partners in Time

volunteers gave more than 140 hours

helping with various events and exhibit

openings. And the store periodically

distributed the museum’s flyers to

customers. “Our relationship with the

Saginaw Art Museum is just flourishing,”

said Clawson, and the museum has been

awarded continuing grants in 2011 and 2012.

28

05 Cincinnati, oH

Each year, associates in

Macy’s, Inc.’s Cincinnati

Central Offices and nearly 30 ninth and

10th grade, self-proclaimed fashionistas

from a Cincinnati high school joined forces

to create a Juniors’ Department for Macy’s.

The Hughes STEM (Science, Technology,

Engineering and Mathematics) High

School’s partnership with Macy’s brings

together a group of students and

highlights the different dimensions of

diversity among the Macy’s team. The

Macy’s lineup includes associates from

Store Design and Construction, Area

Research, Human Resources, Marketing,

Finance, the Diversity Outreach Committee

and the Cincinnati-based district merchant

and store teams.

The four-month program between

students and Macy’s executives culminates

in a final week at the Macy’s corporate

office where the students:

1. Learn how to use a mapping system to

determine a store location

2. Learn how to design a store and develop a

sales potential and profitability statement

3. Create their own advertisement for

the store

4. Select materials to reflect the shopping

atmosphere

5. Select the merchandise that goes into

their store

6. Select the staff to work for the store

and define a compensation and

training program

7. Research existing competitive retailers

The final product includes presenting

three Juniors’ concepts to a panel of

Macy’s senior management, which selects

the winning team. Creative students also

make a live commercial and one team even

designed their own private brand for their

school uniform.

Ninth grader Lena Davis was impressed

with the program. “My Macy’s experience

was excellent! They talk to you like you

actually work there,” she said. “They taught

me how to be professional, but goofy at

the same time.”

Stories of Giving

29

Diversity & Inclusion

30

Diversity and inclusion are at the core of Macy’s, Inc.’s approach to doing business. It touches all areas of our company. We expect our associates, our advertising and in-store presentations, and the companies with which we do business to mirror the diverse multicultural marketplace we serve.

31

Our Associates

Macy’s believes that different perspectives

are important to our company, and

we benefit greatly from the individual

strengths of each associate. To serve

our diverse customers, we have to be a

diverse company. Women represent more

than 78 percent of the workforce across

Macy’s, Inc., and more than 69 percent of

management-level executives are women.

Racial minorities represent more than

51 percent of our associate team and more

than 32 percent of our management team.

Our Marketing and Advertising

A crucial part of our diversity strategy

is our multicultural marketing. We use

powerful and evocative images, symbols

and words to communicate our brand

messages, our special events and our

merchandise selections to our diverse

core customers. And we deliver those

messages via targeted media channels

to reach customers where and when they

want to receive our messages. We also

work with minority-owned and women-

owned agencies to ensure our concept

development and ad placements are in

sync with our multicultural customer.

Our Suppliers

Having a supplier base that reflects our

diverse customer base gives us a tremen-

dous competitive advantage, particularly

because it enables us to source distinctive

merchandise to present in our stores. It

also helps us give meaningful support

to businesses that contribute to the

economic health of our local communities.

Our Supplier Diversity Program helps us

identify and support emerging minority-

and women-owned businesses. In 2011, our

company’s purchases from minority- and

women-owned business enterprises totaled

about $723 million, an increase of 29 percent

over 2010. The Workshop at Macy’s, our

company’s first business development

program, was launched in 2011 to foster

growth in the next generation of minority-

and women-owned merchandise suppliers.

Community Partnerships

Our commitment to the communities where

we live and work is a key component of

our holistic diversity plan. Our mission is to

develop solid, meaningful relationships with

our communities, working with community

leaders, elected officials, and local organiza-

tions to understand the wants and needs of

each community and to develop initiatives

that have a positive impact on the lives of

residents. By understanding and respecting

the rich diversity of each community and our

customers who reside there, we learn how to

serve and appreciate its uniqueness. Macy’s,

Inc. demonstrates our commitment through

charitable contributions, leadership, em-

ployment initiatives, volunteerism, and the

creation of economic partnerships. For ex-

ample, Macy’s, Inc. executives serve as local

Urban League board members in New York

City, Cincinnati, Atlanta and Los Angeles.

Diversity and Inclusion

29%The increase in

company purchases

from women- and

minority-owned

suppliers in 2011

compared with 2010

32

Diversity and Inclusion in Action

01The Workshop at Macy’s

The Workshop at Macy’s is a

week-long intensive training

course developed by a consortium

of experts from Macy’s Learning &

Development; Macy’s Multicultural

Merchandising and Vendor Development;

and Babson College, the nation’s leading

business school for entrepreneurship;

along with select Macy’s merchants and

vendors. The specially-designed business

development curriculum is aimed at

minority- and women-owned retail

businesses that are poised to succeed on a

larger scale, but need real-world business

practice information and perspective on

large-scale vendor relationships to move

to the next level and sustain growth.

The Workshop at Macy’s allows selected

participants to collaborate with fellow

aspiring vendors, gain access to industry

experts and solicit one-on-one business

coaching. The course work includes

classes on merchandising and assortment

planning, marketing, Electronic Data

Interchange (EDI), financial management

and access to capital.

The goal of this annual program is to help

create a pipeline of viable enterprises that

will grow to become successful partners

within Macy’s own vendor community. First

held in the spring of 2011, the Workshop

enrolled 39 businesses in its first two

years that ranged from makeup/skincare

companies to confectionaries, home

textiles and ready-to-wear designers.

The Workshop team follows up with

current and past participants as they

progress through the opportunities

outlined during the program for potential

graduation to Macy’s vendor status.

In 2012, five graduates from The Workshop

began selling products at select Macy’s

locations and/or on macys.com.

39Minority- and women-

owned businesses

included in the first

two classes of The

Workshop in 2011

and 2012

33

02 Black History Month

Highly visible events across

the country during Black

History Month are one example of how

Macy’s celebrates the multicultural

nature of the marketplace it serves.

In February 2012, 11 Macy’s stores

nationwide hosted special events and

exhibits dedicated to famed artist Romare

Bearden. In conjunction with the Romare

Bearden Foundation, Macy’s honored

the rich history and legacy of the highly

regarded artist, writer and musician in

celebration of this year’s 100th anniversary

of his birth. The objective of such events

is to empower a new generation through

a look back at some of our nation’s most

important leaders. Throughout his life,

Romare Bearden brought his exceptional

talents to a wide range of interests,

cementing his unique place in history and

blazing a trail for those who followed.

Opening receptions further highlighted

Bearden’s artistic endeavors including

music performances from a new

generation of jazz musicians playing his

compositions, which have been previously

recorded by masters such as Branford

Marsalis, Tito Puente and Billy Eckstine.

Additional in-store celebrations included

children’s collage-making events, special

readings of Bearden’s children’s book, “Li’l

Dan, The Drummer Boy: A Civil War Story,”

as well as cooking demonstrations from

local chefs featuring Bearden’s favorite

recipes and Caribbean dishes from the

out-of-print cookbook, “Ma Chance’s

French Caribbean Creole Cooking,”

which he illustrated.

Diversity and Inclusion in Action

34

03 Support for Hispanic Communities

Macy’s and Bloomingdale’s

are well known for their support of diverse

Hispanic communities across the country –

supporting customers and associates with

family roots in Mexico, Puerto Rico, the

Caribbean, and South and Central America.

For example, Macy’s, Inc.’s presence is hard

to miss in New York’s Puerto Rican Day

Parade, the city’s second largest parade

after the Macy’s Thanksgiving Day Parade.

In 2012, Macy’s hosted a music drum float

and two large Macy’s balloons. A corps

of Macy’s and Bloomingdale’s associates

walked from 47th Street to the Upper East

Side of Manhattan.

Across the nation in Las Vegas, Macy’s was

a sponsor of the annual conference of The

National Council of La Raza (NCLR), the

largest Hispanic civil rights and advocacy

organization in the United States. Macy’s

participation included co-hosting a

welcome reception with Nuvo TV, a fashion

presentation at the welcome reception,

and sponsoring the Latina Brunch,

with a fashion presentation featuring

Cenia Paredes, a dress designer whose

merchandise is now sold at Macy’s.

Macy’s also supports Latino film festivals

in New York City and San Francisco. In

New York City, Macy’s hosted a panel to

discuss the influence Latino films have

had on fashion.

04 Pride + Joy

Macy’s is a proud sponsor

and active participant in

Pride Parades across America each year,

including in 29 cities in 2012. These festive

celebrations and community initiatives

showcase our company’s steadfast

commitment to inclusiveness in all aspects

of our business. From our welcoming

Wedding & Gift Registry to our long-

standing support of national and local LGBT

community organizations, Macy’s remains

dedicated to the fundamentals of diversity,

inclusion and respect for all.

Diversity and Inclusion in Action

PRIDE+JOY

MACY’S IS CELEBRATING IN PRIDE PARADES NATIONWIDE!FOR MORE INFORMATION GO TO MACYS.COM/PRIDE

Honored by The Trevor Project, the only nationwide, around-the-clock crisis and suicide prevention helpline for gay and questioning youth.

35

Employment

36

Our company employs about 175,000

individuals – a number that has been rising

in recent years along with the company’s

sales volume. In addition, about 80,000

seasonal associates are hired by Macy’s

and Bloomingdale’s each year to help

serve customers through the peak holiday

shopping period.

Macy’s, Inc. provides good jobs at all levels.

Included in the company’s workforce

are about 22,000 executive positions

representing the highest quality talent

in a wide range of fields – including

merchandising, planning, marketing,

e-commerce, store management, product

development, information technology,

credit, logistics, law, communications, store

planning, design and construction.

Retail employment is a key driver of the

U.S. economy. According to research

conducted by PricewaterhouseCoopers

LLP (PwC) for the National Retail

Federation, the retail industry (including

food services and drinking places) directly

and indirectly accounted for 41.6 million

full-time and part-time jobs, or 24 percent

of U.S. jobs; 17 percent of labor income

at $1.49 trillion; and 18 percent of Gross

Domestic Product (GDP) at $2.48 trillion

in 2009.

Retail directly provided 28.1 million

full-time and part-time jobs in 2009,

making it the largest private sector

employer in the nation, dwarfing the

18.8 million jobs in health care and social

assistance, 12.4 million in manufacturing

and 11.8 million in professional, scientific

and technical services, according to the

PwC report.

EmploymentMacy’s prides itself on being a good employer in every location where it does business, with

competitive pay and benefits in a caring and service-oriented work environment.

28.1 million

Full-time and part-

time jobs were

provided in retail

in 2009

37

Scores of college graduates look

to industry leaders like Macy’s and

Bloomingdale’s to start their retailing

careers after graduation. The company

hired more than 1,000 students from

America’s colleges and universities in

2012 for slots in the company’s Executive

Development Program (EDP) and for

summer internships nationwide.

The hires include 730 new college

graduates for full-time EDP positions,

which is an entry-level step in building a

career as an executive with the company.

In addition, 326 college students – primarily

those between their junior and senior

years – have joined Macy’s and

Bloomingdale’s as interns in stores,

merchandising, private brand development,

dotcom, information technology, logistics,

credit, marketing, public relations and

corporate services functions.

The 2012 total of 1,056 hires is an increase

of nearly 30 percent over 819 Macy’s, Inc.

college hires in 2011 (559 EDP and 260

interns). The 2012 class of college hires

was recruited from more than 50 American

college and university campuses after a

rigorous selection process to identify the

highest-potential talent.

For decades, Macy’s and Bloomingdale’s

have been known as the training ground

for the most impressive talent in the

retailing industry. That legacy continues

today, not only in recruiting outstanding

college students with a wide range of

backgrounds and perspectives, but in

developing their talent and skills at every

step along their career paths.

Many of the company’s executives

started their careers after graduating from

the highly regarded EDP, which has been an

industry standard of excellence for decades.

The company’s training and development

initiatives encompass a wide range

of programs and include an in-house

Leadership Institute for continuing

education and leadership development.

Good Jobs for College Graduates

1,056College graduates

were hired in 2012

38

Macy’s is providing executive career

opportunities for military veterans.

In July 2012, the company launched the

Military Executive Development Program

(MEDP), which enables Macy’s to recruit

seasoned veterans for positions as

assistant store managers with the goal to

place these executives as store managers

over the next two years.

Seven veterans joined in 2012 and

another six joined in early 2013. These

executives are participating in a one-year

rotational program.

Unlike some companies that hire veterans

and provide abbreviated training, Macy’s

strategy is to invest a year developing each

veteran so they are primed for success.

The company has learned that military

veterans are smart, assertive, natural

leaders, and our goal is to offer the training

required to succeed in a department store

retail environment.

The MEDP program teaches sales

management, coaching, merchandise

execution, and includes extensive

partnering with store, district, and

regional executives.

The company recruits veterans from

military base visits, veteran networking

forums, and career fairs across the country.

Providing Opportunities for Returning Veterans

39

Corporate Governance

40

Corporate GovernanceMacy’s, Inc. strongly believes in good corporate governance and transparency in financial

reporting. The company’s board of directors and management are committed to the highest

standards of corporate governance.

Detailed information on the company’s Board of Directors

and its principles and policies is available on the company’s

corporate website using the following link:

macysinc.com/corporategovernance

A copy of the Code of Conduct for all employees of Macy’s, Inc.

can be accessed at: macysinc.com/codeofconduct.pdf