2020 CORPORATE RESPONSIBILITY AND SUSTAINABILITY REPORT
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2020 CORPORATE RESPONSIBILITY AND SUSTAINABILITY REPORT
A LET TER FROM
SHELLY IBACH
To Our Stakeholders, adults suffering from a lack of adequate sleep, the Centers for
Disease Control has declared sleep disorders a public health
Sleep is the center of our well-being. It renews us daily, is essential epidemic. This year, we are advancing our 360 ® smart beds
for good health and the prevention of disease, helps us focus with temperature-balancing layers and proprietary comfort
and enhances our relationships with one another. Quality sleep technologies. We provide continuous and meaningful
has the unique power to move society forward and improve benefits through our SleepIQ ® technology upgrades. In 2020,
lives. Every team member at Sleep Number is dedicated to our this includes monthly wellness reports, sleep circadian analysis
mission of improving lives by individualizing sleep experiences, and heart rate variability measurement – all designed to help
and this is why we’re passionate about creating a world that’s cosumers improve their well-being through deeper, more
healthier, kinder, more compassionate and more connected. restful sleep.
For more than three decades, our mission has been Sleep N umber is on a journey, driven to make a difference in
fundamental to our culture. This 2020 Corporate Responsibility the world through better sleep and wellness. This requires
and Sustainability Report represents our first comprehensive innovation leadership and continuous improvement across
communication to share information about our social, our enterprise. Our board of directors and management team
environmental and governance practices and policies. We are recognize that the opportunities and challenges we face as a
proud of the accomplishments highlighted in this report and company and society will continue to evolve. We believe that
we are dedicated to making a positive impact on customers, corporate responsibility and sustainability are an enterprise-wide
communities, team members, shareholders … and the world we commitment, informed by and integrated into our business
all share. strategy. Together, we are invested in creating and implementing
solutions that improve lives and change the world around us for
We have awakened society to the importance of sleep, and the better.
with our revolutionary Sleep N umber 360 ®
smart beds, we’re
providing a solution to effortlessly achieve proven quality Sleep well, dream big,
sleep. Our pioneering innovations and investments have
improved more than 12 million lives and delivered superior
financial performance and shareholder value creation.
As a purpose driven company in the health and wellness space, C H I E F E X E CU T I V E O F F I C E R , S L E E P N U M B E R
we have a responsibility to define the future by taking on Sleep Number® set ting 40
significant challenges like sleep deprivation. With one in three Av e r a g e S l e e p I Q ® s c o r e: 8 2
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 2
3
5
1
4
2
WHERE WE OPERATE
AL 11 Stores LA 8 Stores OH 21 Stores
AK 1 Store Customer Service Center 2 OK 5 Stores
AZ 10 Stores ME 2 Stores OR 7 Stores
AR 5 Stores MD 15 Stores PA 22 Stores
CA 72 Stores MA 12 Stores RI 1 Store
SleepIQ Labs 1 MI 19 Stores SC 10 Stores
CO 14 Stores MN 16 Stores Manufacturing Facility 4
CT 6 Stores Corporate Headquarters 3 SD 2 Stores
DE 2 Stores MS 6 Stores TN 15 Stores
FL 43 Stores MO 12 Stores TX 54 Stores
GA 21 Stores MT 4 Stores UT 6 Stores
HI 1 Store NE 5 Stores Manufacturing Facility 5
ID 3 Stores NV 5 Stores VT 1 Store
IL 24 Stores NH 4 Stores VA 18 Stores
IN 11 Stores NJ 14 Stores WA 15 Stores
IA 8 Stores NM 3 Stores WV 4 Stores
KS 8 Stores NY 20 Stores WI 11 Stores
KY 8 Stores NC 21 Stores WY 2 Stores
ND 3 Stores
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 3
CONTENTS
5 Mission, Vision and Values
7 Commitment to Ethical Business
HOW WE LIVE
Practices and Legal Compliance
OUR VALUES 9 Human Rights Policy
11 Conflict Minerals Policy
13 Team Member Demographics
16 Talent Planning
17 Diversity and Inclusion
HOW WE WORK 20 Team Member Engagement
WITH EACH OTHER 23 Training and Professional
Development
26 Team Member Health and Safety
29 Shareholder
HOW WE WORK 30 Community
WITH OTHERS 35 Suppliers and Other Stakeholders
36 Enterprise Environmental Policy
37 Product Quality and Safety
40 Innovation Awards and
HOW WE PROTECT
Recognition
OUR BRAND AND 41 Supply Chain Evolution
THE ENVIRONMENT 42 Waste and Toxicity
44 Energy Efficiency and Climate
Impact
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 4
HOW WE LIVE
OUR VALUES
M I SS I O N VISION
To improve lives by individualizing To become one of the world’s
sleep experiences. most beloved brands by delivering an
unparalleled sleep experience.
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OUR PA SS I O N for making a difference I N TEG R I T Y to always do the
and changing lives: right thing:
• We go above and beyond because • We treat others with kindness
VALUES we care.
• We love representing our brand
with our customers and our • We
and respect.
• We are honest, fair and sincere.
live our code of ethics
communities. every day.
• We are the champions of sleep at
the center of a healthy mind,
body and soul.
INNOVATION to find a better way: CO U R AG E to embrace challenge: TEAMWORK that celebrates
• We live and breathe innovation. • We take risks, learn and adapt. individuality and the joy of working
• We leave nothing to chance. • We are confident and take action. together:
• We see innovation everywhere and • We are resilient, persistent and • We are unstoppable when we work
ours will help shape the future. fearless in our pursuit of excellence. together.
• We laugh and learn and trust each
other.
• We are all individuals, but
together … we are Sleep N umber.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 6
COM M ITMENT TO
ETHICAL BUSINESS
PRACTICES AND
LEGAL COMPLIANCE
Laws and regulations touch all aspects We have a Code of Business Con- exceptions to the Audit Committee
of our business – from how we make, duct, provided to all team members, of our board of directors, demon-
market and sell our products to how which instructs and requires that our strating our accountability and
we disclose our financial results, from team members comply with applica- governance practices.
how we treat one another to how ble laws, engage in ethical and safe
we do business with third parties. conduct in our work environment, We also train our team members on
Sleep N umber requires strict adher- avoid conflicts of interest, conduct our equal employment opportunity,
ence to the letter and the spirit of our business with integrity and high non-harassment and standards of
all laws applicable to the conduct of ethical standards, and safeguard our conduct policies to foster a culture
our business. company’s assets. All team members of diversity, inclusion, dignity and
are required to annually acknowl- respect, and ensure adherence to our
We are also committed to the highest edge their commitment to this Code. high standards of integrity. Our annual
standards of ethical business prac- A copy of the Code of Business Code of Business Conduct training
tices throughout our company. Our Conduct is included in the investor addresses the company’s expec-
company values, team member train- relations section of our website at tations regarding a wide range of
ing, company policies and culture WWW.SLEEPNUMBER.COM/SN/EN/ conduct, including anti-bribery and
underscore our expectations for INVESTOR-RELATIONS . On a quarterly anti-corruption. Our Code of Busi-
integrity and provide clear guidelines basis, company management reports ness Conduct directs team members
for business decisions and behavior. team member Code of Conduct who observe or suspect unethical or
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 7
illegal behavior to report it to their Business Partners to all active sup-
management, Human Resources pliers. This Code articulates Sleep
or our Chief Legal and Risk Officer. N umber expectations and describes
The company also offers a Business our rights to monitor and enforce
Abuse Hotline for team members. supplier compliance. The Code of
The hotline is operated by an Conduct contains provisions that ad-
independent third-party service to dress business partner responsibili-
ensure confidentiality and 24-hour ties related to: Human Rights, includ-
accessibility. On a quarterly basis, ing fair treatment, nondiscrimination,
senior management shares reported underage and involuntary labor and
concerns with the Audit Committee trafficking, freedom to associate, and
of our board of directors. compensation; Health and Safety,
including training, injury prevention
In 2019 we introduced specific train- and workplace environment; Environ-
ing – including how to identify and mental Issues, including hazardous
refuse bribery or “agent” payments – substances, conflict minerals, waste
in key departments, including Direct disposal and recycling; and Legal
Materials and Bedding, where team and Ethical Practices. We ask our
members regularly interact with suppliers to agree, in writing, to the
foreign entities and officials, terms and conditions of our Code of
increasing their vulnerability to Conduct. In addition, the contractual
Foreign Corrupt Practices Act (FCPA) terms that are applicable to the vast
issues. As part of a larger strategy majority of Sleep N umber suppliers
to bolster our compliance and include language that requires
prevention efforts related to bribery suppliers to represent and warrant
and corruption, we have begun to “that it will, at all times, comply
conduct this training annually. with the Code of Conduct for
Business Partners as may be
Sleep N umber expects a high stan- amended from time to time.” Our
dard of integrity and sound ethical Code of Conduct for Business
judgment from our business partners Partners is publicly available at
as well. To ensure all of our suppliers W W W. SLEEPNUM B ER .CO
are aware of their responsibilities, M / VENDOR .
we provide our Code of Conduct for
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HUMAN RIGHTS
At Sleep N umber, our values of passion, integrity, innovation, courage and teamwork are
our compass and guide our decisions. We expect all Sleep Number team members, and our
business partners, to act with the highest ethical standards and treat others with respect
every single day and to conduct business in accordance with standards set forth in our Code
of Conduct for Business Partners, Team Member Code of Business Conduct, Team Member
Handbook and the principles detailed below. These principles provide guidance to ensure
that our business practices and processes support our commitment to human rights, and that
our team members and business partners understand their role in – and responsibility for –
upholding human rights and equality in the workplace. N o Sleep N umber team member
or business partner should ever be complicit in human rights abuses or ethical violations
of any kind.
Our commitment to human rights, which is overseen by the Sleep Number board of directors
and senior leadership team, include the following principles:
CH I LD L A B O R EQ UA L A N D
RESTRICTIONS N O N D I SCR I M I N ATO RY
PR AC T I CE S
Sleep N umber prohibits child labor in all We believe that attracting, employing and
forms. When employing persons under the retaining a diverse team, including people
age of 18, managers must comply with all from all backgrounds, ethnicities, genders,
Sleep N umber-established and legally lifestyles and belief systems – and maintaining
required limitations on minimum hiring age, an environment that is welcoming and
work hours and tasks performed by these team respectful of this diversity – is foundational
members and ensure that any work performed to our mission, business strategy and
does not interfere with the team member’s financial performance. We are committed to
health, safety, mental or physical development, providing a work environment free from all
education or morals. We maintain data on forms of unlawful harassment and discrim-
the age of all team members for auditing and ination. At Sleep N umber, we recruit, hire,
reporting purposes. compensate and promote team members
based on qualifications and performance.
We do not tolerate any conduct that creates
an intimidating, offensive or hostile work
environment.
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H U M A N T R A F F I CK I N G , S L AV E RY H E A LT H Y A N D SA FE WO R K PL ACE
A N D FO R CE D L A B O R
As a purpose driven company in health and
We do not employ involuntary labor of any wellness, the safety and well-being of our
kind and will not knowingly conduct business team members is paramount. We strive to
with any partner who does. Involuntary labor provide and maintain a safe work environ-
includes prison, indentured or bonded labor ment for all our team members and partners
or labor obtained through human trafficking by establishing, communicating and encour-
or slavery. We are partnering with suppliers aging adherence to company-based safety
to monitor their performance where appro- procedures and by complying with all fed-
priate and working to ensure that our supply eral, state and local laws regarding safety in
chain includes no child, forced, trafficked or the workplace. We address and remediate
slave labor. identified accident, injury or health risks, and
believe that safety is everyone’s responsibility
at Sleep Number.
WAG E S A N D WO R K I N G H O U R S
We adhere to all applicable wage laws and
regulations. All workers must be paid at least
We take violations of these principles seri-
the legal minimum wage. In addition, workers
ously. Team members should report, in
must be compensated for overtime hours at
accordance with the process described in our
a rate legally required by local laws and must
Code of Business Conduct, any behavior or
exceed regular hourly compensation.
conduct by a Sleep Number team member or
business partner that they observe or suspect
R I G H T TO F R E E D O M O F is a potential violation of our human rights
A SSO C I AT I O N A N D CO LLEC T I V E policy or principles.
BARGAINING
Sleep Number reserves the right to amend
We recognize and respect the right of all this policy at any time. Nothing in this
team members to freedom of association and policy says or implies that a contract exists
the right to join unions or other work-relat- between the company and its team members
ed associations as well as the right to bargain or that compliance with these principles is a
collectively, as permitted by, and within the guarantee of continued employment with
limits of, local laws. All team members should Sleep Number.
be able to assert their right to freedom of
association and their right to remain indepen-
dent without fear of retaliation or termination.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 10CONFLICT MINERALS
In 2010, the United States enacted As described in our Conflict Miner- To comply with our Dodd-Frank
the Dodd-Frank Wall Street Reform als Rule Policy, Sleep N umber does Act annual reporting requirement,
and Consumer Protection Act (Dodd- not directly source 3TG from mines, Sleep Number conducts a reasonable
Frank Act), including Section 1502, smelters or refiners. As a result, country of origin inquiry to determine
which is commonly referred to as the we have clearly communicated our if any 3TG necessary to the
Conflict Minerals rule and which took expectations to suppliers who pro- functionality and production of
effect on January 1, 2013. The law vide materials to Sleep N umber that Sleep N umber products may have
requires publicly traded companies may contain 3TG. We rely on them to: originated in the DRC or neigh-
who use gold, tantalum, tin, and boring countries. We survey
tungsten minerals (known as 3TG) in • Source their materials from ethically all active suppliers about the
products manufactured or contracted and socially responsible sub- presence of 3TG in their materials,
to be manufactured by such tier suppliers and to apply a carefully review their responses
companies to report annually to the nationally or internationally recog- and follow up to obtain additional
Securities and Exchange Commission nized due diligence framework information or clarification about the
whether the 3TG used in their within their supply chains to content and origin of their materials
products originates from the determine the origin of the 3TG as necessary.
Democratic Republic of the Congo they use.
(DRC) or a neighboring country, • Annually certify whether the mate-
where armed groups exploit the rials they provide to Sleep Number
mining and trade of 3TG to help contain conflict minerals, and if so,
finance conflict in the region. • Provide written documentation of
their due diligence efforts and the
Consistent with our Human Rights source of each mineral.
policy, we fully support the aims of
Section 1502 of the Dodd-Frank Act.
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WORK
WITH EACH
OTHER
Making the world a better place through proven quality
sleep is core to who we are at Sleep N umber. Our
board of directors, management, and more than 4,400
Sleep N umber team members are dedicated to the
company’s mission and values of passion, integrity,
innovation, courage and teamwork.
As evidenced by our top-15 ranking in the Russell 3000
Index for Gender Diverse Boards, Sleep N umber values
diverse perspectives in all areas of our company. We have
a female CEO, gender parity on our board of directors,
and a diverse senior leadership team and team member
population – in gender, race and ethnicity, and age.
S R . LE A D E R S H I P,
B OA R D S R . LE A D E R S H I P
J U LY 2 0 2 0
TOTA L M E M B E R S 10 9 9
FEMALE 5 4 3
AFRICAN AMERICAN 1 0 1
ASIAN AMERICAN 0 1 1
L AT I N X 1 1 1
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DEMOGRAPHICS
2019 TEAM MEMBER % BY AREA
Sleep N umber is a vertically integrated company –
with team members across a range of functional areas,
including manufacturing, retail, customer service and
management/administrative.
RETAIL SALES/SUPPORT, 52%
MANUFACTURING/LOGISTICS, 28%
MANAGEMENT/ADMINISTRATIVE, 12%
CUSTOMER SERVICE, 8%
GENDER JOB GRADE, LOWEST TO HIGHEST SENIORITY
2,492 Male 62% 87%
1–7
1,526 Female 38% of Team Members
258 57% 10%
8–10
62% MALE 195 43% of Team Members
2,843 Team Members
93 69% 3%
38% FEMALE 11+
1,763 Team Members
42 31% of Team Members
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DEMOGRAPHICS
TENURE IN YEARS GENERATIONAL
GENERATION Z (1997+)
858 Male 61% 30%TE AM MEM B ER
DEMOGRAPHICS
RACE AND ETHNICITY
WHITE (NOT HISPANIC
1,723 Male 63% 60%
of Team
OR LATINO) 992 Female 37% Members
BLACK OR AFRICAN 448 58% 17%
AMERICAN (NOT of Team
HISPANIC OR LATINO) 329 42% Members
346 66% 12%
HISPANIC OR LATINO of Team
181 34% Members
ASIAN (NOT HISPANIC
115 61% 4%
of Team
OR LATINO) 75 39% Members
TWO OR MORE 94 55% 4%
RACES (NOT HISPANIC of Team
OR LATINO) 78 45% Members
I DO NOT WISH 48 51% 2%
TO ANSWER/HAVE of Team
NOT IDENTIFIED 46 48% Members
AMERICAN INDIAN OR 25 66%TALENT365
While elements of the talent planning life cycle at Sleep Number are discrete, we take a holistic view to planning and
execution – encompassing the entire range of activities that are important to attract, motivate, develop, reward and
retain a talented and diverse team, as illustrated in our Talent365 model below. Our approach deliberately creates
and sustains a work environment that allows Sleep Number team members to realize their full potential while fulfilling
our company’s mission. In sections of this report that follow, we provide additional detail about our TEAM MEMBER
ENGAGEMENT and expansive team member TRAINING AND PROFESSIONAL DEVELOPMENT programs.
TEAM MEMBER
VA LU E PR O P O S I T I O N WO R K FO R C E
TA L E N T
PL A N N I N G A N D AO P PL A N N I N G
O R G A N I Z AT I O N RECRUITMENT AND
DESIGN SELECTION
TOTA L
O N B OA R D I N G
R E WA R D S
G OA L A N D
COAC H I N G OB JECTIVES
A N D M E N TO R I N G SET TING
PE R FO R M A N C E TR AINING AND
M A N AG E M E N T D E V E LO PM E N T
PR O G R A M S
E N G AG E M E N T LEADERSHIP
D E V E LO PM E N T
S U CC E SS I O N I N C LU S I V I T Y
PL A N N I N G A N D B E LO N G I N G
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 16DIVERSITY AND
INCLUSION
We are committed to creating a work We value each other’s individual lives by individualizing sleep
environment where team members unique talents, perspectives and experiences.
are treated fairly and with respect. experiences and we recognize the
In 2019, we formalized our commit- potential in each team member. Our Salt Lake City plant, awarded the
ment in the following statement 2018 Utah Manufacturers Association
and proudly shared it with every This philosophy applies to the way Manufacturer of the Year award, is a
Sleep Number team member: we engage with one another inter- shining example of how individuality
nally and the respect we have for our makes Sleep Number better. Twenty-
At Sleep Number, we embrace customers, communities and busi- nine countries are represented
individuality in each other, in our ness partners. Diversity and inclusion by plant team members, and 21
own lives and in our customers’ lives. are also integral to our strategy. We languages are spoken, in this high-
Individuality makes us better, stron- strongly believe that each person’s performing manufacturing center.
ger and smarter, and together, gives sleep experience must be individu-
us collective power. It fuels our alized to achieve quality sleep. Sleep
imagination, innovation and connects is at the center of well-being and
us to our vision of becoming one of improves performance in every
the world’s most beloved brands by aspect of life. Our pulse of individu-
individualizing sleep experiences. ality fuels our mission of improving
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 17D I V E R S I T Y, EQ U I T Y A N D
I N CLUS I O N S T R ATEGY
While Sleep Number has a long-held
commitment to diversity, equity and
inclusion (DEI), we initiated a new,
more deliberate strategy in 2018
to strengthen our unique culture.
Specifically, we are focused on deep-
ening awareness of DEI opportu-
nities, advancing our commitment
throughout our organization and
driving accountability.
While we will invest in each of these
areas concurrently over time and
expect objectives within each focus
area to evolve as our organization
and culture continue to mature, our
primary focus in 2020 is on deepening
“It doesn’t matter who you awareness. We are working to
develop a better understanding of
are, Sleep Number our team members through surveys
and focus groups and meaningful
allows you to be the best programming that enhances
inclusion. Our efforts will include
you possible … most both formal training and informal
social and educational experiences.
of my success comes when At the same time, we will enhance
I am 100% authentic. I love the tools, partnerships and commu-
nications that support our diversity,
working for a company that equity and inclusion commitment,
and we will increase reporting and
allows me to express analytics to measure our progress.
myself unapologetically.” In addition to developing and broadly
sharing our individuality statement,
we have taken or are taking the
CR A I G L A R TE R , SU PE RV I SO R following actions to advance
CUS TO M E R R E L AT I O N S H I P CE N TE R diversity, inclusivity and belonging
S LE E P N U M B E R ® SE T T I N G 3 5 at Sleep Number:
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 18“This company has allowed me
to raise three beautiful
children while pursuing my career.
I’ve watched not only
myself and those around me grow,
but this amazing company as well.”
• We delivered conscious inclusion
S H AU N A M O R R I S
training to our full board of direct-
D I S T R I C T M A N AG E R
ors, our senior team and every
S LE E P N U M B E R ® SE T T I N G 55
operating leader. In 2020 we are
adding conscious inclusion training
to every learning path for every
leader at Sleep Number, and many • We added an inclusion and belong- ally-formed, self-managed team
functional leaders are providing ing index to our engagement member business groups, comprised
training for their entire teams. survey and tied it to sales perfor- of team members with a shared
• We launched a well-being and mance. We have found there is a identity or interest, as well as those
self-identification survey in 2020 significant performance lift when who consider themselves allies
so we truly know how our team teams have a higher sense of or want to learn more. We have
members identify and how they belonging. In 2020 we are providing developed a toolkit as a resource for
want to be appreciated as individ- all managers a toolkit to assess emerging, newly formed and fully
uals, allowing us to understand their teams’ belonging index developed groups. Examples include
intersectionality at Sleep N umber. and lead in inclusive ways. We will a headquarters Women In Leadership
• We are committed to ensuring continue to include this measure- group that was initially piloted
appropriate gender representation ment in our annual 2020 survey to in 2017, and a Women In
in our senior management and measure progress and momentum. Leadership group for our retail
workforce – and have committed to leaders and a headquarters Parent’s
achieving gender balance in our As part of our overall DEI strategy at group (both men and women), both
retail stores by 2025. Sleep N umber, we support organic- of which were formed in 2019.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 19TEAM MEMBER
ENGAGEMENT
As a purpose driven company, we’ve created a special
culture that attracts and retains people who want to make
a difference. Our team members want to feel fulfilled
in their support of our mission to improve lives through
individualizing sleep experiences, and we know that team
member engagement and well-being enhances their
performance. As evidenced by our annual engagement
survey process, team member feedback directly influences
company decisions and actions. We internally crowd-
sourced our company values several years ago to ensure
we were integrating authentic team member perspec-
tives, and in early 2020, we invited our team members to
share their views about well-being and individuality in a
self-identification survey. Input gathered will be integrated
into our enterprise vision for well-being and diversity,
equity and inclusion. With well-being at the center of a
strong culture and core to appreciating individuality, it is
important we gain a holistic understanding of what mat-
ters most to our team members and who they really are.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 20For 15 consecutive years, we have conducted an annual companywide team member
engagement survey. We also actively monitor Glassdoor ratings, which have improved over
the last several years.
• We partner with a leading survey/ • We examine results at the enterprise
analytics provider. Our survey design is level – and segment the data across a
based on its proprietary 12 rules of range of cross-sections, including level
engagement and considers the reciprocal in the organization, department, gender,
nature of engagement – that you get what generations and racial diversity – to under-
you give. stand team member feedback.
• Participation in our annual engagement • We host working sessions at various levels
survey is best in class. Our high of the organization – including senior
participation rates signal that our team management, operating team, and depart-
members feel like their voices matter. ment – to review results, identify
• Overall, our results on Engagement, opportunities for improvement and
Intensity to Commit and Performance develop action plans to address them.
Intensity are very positive, well Leaders have access to data specific to
above the national benchmark and their areas so they can individualize their
consistent over the past three years. action plans. The tools available to
• We are transparent about the results of our leaders are simple, intuitive and
our survey, sharing them with all team widely used.
members and our board of directors.
We believe that the strength and consistency of our survey results validate and reinforce the
importance of our unique and special culture and the deep commitment by Sleep N umber
team members to make a difference and feel purpose and meaning in their work.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 212017– 2019 TE AM MEM B ER ENGAGEMENT
SURVEY RESULTS
Our Sleep Number scores – for engagement, commitment intensity and performance intensity – have exceeded the
national benchmarks for these metrics over the past three years, and we remain focused on continuous improvement
through transparency and action.
4.6
4.4
4.3
4.2 4.2 4.3
4.2
3.8
3.8 3.7
3.6
3.3
SLEEP NUMBER
2019
SLEEP NUMBER
2018
SLEEP NUMBER
2017
NATIONAL
BENCHMARK
NEW RULES OF COMMITMENT PERFORMANCE
BEST IN CLASS ENGAGEMENT INTENSITY INTENSITY
Sleep Number 2019 n=3754; Sleep Number 2018 n=3614; Sleep Number 2017 n=3392; Benchmark n=1182
Best-in-Class scores one standard deviation above the benchmark mean.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 22TRAINING AND PROFESSIONAL DEVELOPMENT Our more than 4,400 Sleep N umber • Providing our team members with manager uses a comprehensive team members are at the heart of our training and development when checklist to help prepare for the new culture and the disciplined execution and how they need it. team member’s first day, first week, of our consumer innovation strategy. • Building training that is both first month and first 60-90 days in Attracting, motivating and retaining competency and experience based their new role. The process includes the right talent is critical to our to drive productivity. administrative tasks (such as ensuring success, and providing ample pro- • Investing in our team members’ the new team member has access to fessional development opportunities desire for professional growth, critical technology and tools on Day and a superior work environment providing cutting-edge tools 1), actions that help the new team throughout the entire employment and learning experiences that member feel welcome and included experience at Sleep N umber is crit- empower them. by the new team, training opportu- ical to their growth, satisfaction and nities and establishment of commu- engagement. We demonstrate this Our approach begins with a robust nication and coaching routines. Our commitment through our belief in the onboarding process that is tailored process includes check-ins and formal power of our mission and the impor- to the new team member’s level assessment at 7 days, 30 days and tance of creating a learning culture. and function (e.g. consumer-facing, 90 days to ensure that we are aware We support our learning culture by: corporate, manufacturing). Each hiring of each team member’s early on- S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 23
boarding experience and that we are
able to course-correct, if needed, to “I’ve always had a
increase their engagement and
ultimately their retention. rather shy and reserved
To educate and immerse new head- personality ... this
quarters team members in our busi-
ness, we encourage them to partici-
amazing company has
pate in three key experiences:
• A store visit to understand our
helped me to grow,
selling approach.
find myself as a leader
• A field services ride-along to
observe our in-home interactions and take a giant
with customers.
• A Customer Relationship Center step closer into my
listening session to broaden aware-
ness of the nature and scope of future career.”
customer inquiries.
We also host quarterly education
T Y R E E LE W I S , TE A M LE A D
CUS TO M E R R E L AT I O N S H I P CE N TE R
sessions for new headquarters team
S LE E P N U M B E R ® SE T T I N G 55
members during their first year of
employment to introduce them to
other functions and departments
across the organization.
provides deep functional and tech-
Once we hire and onboard new talent, nical training paths and customized
we apply a 70/20/10 learning philos- training programs for different areas
ophy. We believe that the responsi- of the company – to support role
bility for professional development effectiveness, product knowledge
is shared by each team member, and productivity. For example, for our
their manager and Sleep N umber – customer-facing roles, training topics
with 70 percent of learning on-the- include sales, customer service,
job, 20 percent happening through product, field service, and personal
people leaders, peers and others, development. Within manufacturing,
and only 10 percent as the result of we offer individualized “how to” work
formal training or development. In instructions that are designed by en-
support of this philosophy, we employ gineers with personalized training
a multi-level learning strategy that delivered by peer coaches.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 24We believe everyone is a leader, not mance, topics in our library include bers to thrive and grow at our com-
just those with responsibility for oth- legal and ethical compliance training, pany, we experience team member
ers, so we offer: and personal brand and leadership turnover as part of our normal course
• True Principles of Leadership on development training. We continue of business. Sometimes a team
demand, including Leadership 101, to expand our online training member who has been a strong
available across the enterprise. offerings – with plans to add con- performer elects to leave the compa-
• Cultivate, our program for senior siderable content in 2020 related to ny and sometimes we must terminate
managers to accelerate their effec- strengthening coaching capabilities a team member – either as a result
tiveness and increase their readi- for leaders. of failure to improve performance
ness for broader roles, especially over time in keeping with a corrective
director. I N TE R N PR O G R A M action plan or immediately due to
• THRIVE, our program for new an egregious violation of company
operating team leaders, either We are cultivating a diverse pipeline policy. For team members who
newly promoted directors or of talent through our college rela- depart voluntarily for personal or
external hires at or above director tions strategy, of which our intern professional reasons, we conduct
level. program is a signature component. an exit interview to ensure we learn
• In 2020, we plan to add two new Since 2017, our internship program from their experience and take action
programs: Elevate, a more compre- has more than doubled. Our 2019 to reduce unwanted turnover in the
hensive program for frontline intern class was 31% racially di- future. For team members who have
leaders, and Accelerate, a program verse, and 40% female. Thirty-two been involuntarily terminated, we
for multi-store leaders. percent of interns were converted offer the opportunity to appeal their
into full-time talent, an 8 percentage termination through our turnover
In addition, we recently implemented point increase over 2018. appeal process by providing addi-
an enterprise learning management tional information that was not con-
system (LMS) with a variety of content, sidered at the time of the termination.
available to every team member, that
TE A M M E M B E R
is intuitive and easy to use, dynamic, Our team members also have an
CO R R EC T I V E AC T I O N
mobile-accessible, and enables us avenue to share their opinion through
A N D T U R N OV E R
to track training and better manage a confidential hotline in the event
institutional knowledge. In addi- While Sleep N umber invests sig- they are not comfortable sharing
tion to specific functional content to nificant time and energy in hiring, their concerns with their manager
enhance competencies and perfor- onboarding and training team mem- and/or Human Resources.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 25TE AM MEM B ER
HEALTH AND
SAFETY
At Sleep N umber, we’re constantly • We invest in ergonomic work- team receives the benefit of life-
striving to create a workplace culture stations throughout our head- changing sleep for their overall
of innovation and individualization – quarters and have staff trained in well-being.
a culture where unique talents, per- assessing individual workstation • We offer a comprehensive array of
spectives and experiences are valued. setups for proper ergonomics, benefits, including family support
One way we demonstrate our including automatic standing desks benefits and a health hotline for
appreciation for Sleep Number team and ergonomic chairs. team members and their families.
members is through our emphasis • Sleep N umber team members are • We collect and analyze workplace
on maintaining a safe and healthy trained to work safely and are injury and accident information
work environment that contributes to empowered to drive actions that across all our locations and take
their well-being. To underscore our ensure we maintain a safety-first appropriate steps to reduce
commitment: culture and are in compliance with incident rates, number of workers’
• We are working to crowdsource all safety rules and standards. Our compensation claims and lost work
an understanding of what well- A Workplace Accident and Injury days. Over the past five years, our
being means to our team members, Reduction Program Policy (AWAIR) workers’ compensation claims as a
how effective our programs are and creates clear expectations for how percent of total team member
what is missing. each Sleep N umber team headcount has improved by more
• We provide appropriate equipment, member contributes to a safe than 20%, with the largest
safeguards, personal protection, and healthy workplace. improvement in our retail opera-
training, and administrative support • We offer team member discounts tions. In 2019, our incident, claim
to protect team member safety on Sleep Number beds and other
®
and lost workday volume meaning-
and health. products to help ensure our entire fully improved, reflecting specific
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 26actions we have taken in our retail ment using the hazard recognition
and home delivery business units. program and achievement of low
Our manufacturing plants continue recordable and lost workday
to deliver best-in-class safety incident rates.
performance. • Sleep N umber was awarded the
Supply Chains to be Admired
WO R K E R S’ CO M PE N SAT I O N Award by independent organ-
CL AIMS AS %
ization Supply Chain Insights.
O F H E A D CO U N T
Sleep N umber was recognized
for transforming its supply chain
YEAR %
over the last three years and del-
ivering unprecedented levels of
2 014 4.8 speed and flexibility through-
out the supply chain network.
2 015 3.5
2 016 4.3 U N I O N PH I LOSO PH Y
2 017 4 .1 We believe sound leadership and
effective team member engagement
2 018 4.8 are integral to the success of our
company and the welfare of our team
2 019 3.8 members. Sleep Number is dedicated
to a spirit of teamwork and respect
that delivers a superior experience
Sleep N umber has recently received for our customers, partners and team
the following awards for safety and members. We also believe in open
operational excellence: and effective two-way communica-
• Our Irmo, South Carolina, facility tion and direct interaction between
received the 2019 South Carolina team members and their managers as
OSHA and Department of Labor, a cornerstone of our respectful and
Licensing and Regulations Safety satisfying work environment.
Achievement Award. The award
recognized the Irmo site for Sleep N umber is a union-free com-
achieving 1 million work hours pany – and we prefer to remain
without a lost workday injury that way. Our non-union status has
or illness. allowed us to engage directly with
• In recognition of safety perfor- our team members as individuals
mance at our Salt Lake City, Utah, without the intervention of a third
facility, the Sleep N umber team party. While team members have a
was honored with the 2019 right to join a union, they also have an
Utah Manufacturing Alliance equal right not to join and belong to a
Workplace Safety Award. This union. At Sleep Number, we are com-
award recognizes our efforts mitted to treating team members with
to increase team member engage respect and preserving their rights.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 27CORPORATE GOVERNANCE AND LE A D E R S H I P AWA R DS A N D
EXECUTIVE COMPENSATION R ECO G N I T I O N
Sleep N umber has for many years maintained In 2019, Sleep N umber executives were
exemplary corporate governance prin- recognized for their leadership, reinforcing
ciples, which are publicly available at the company’s commitment to innovation and
I R . S L E E P N U M B E R .CO M /CO R P O R AT E -
diversity:
GOVERNANCE/HIGHLIGHTS. Among the
• Melissa Barra named 50 Most Powerful
strengths of our corporate governance
Latinas, Forbes
profile are:
• David Callen named 2019 CFO of the
• Our commitment to long-term shareholder Year, Minneapolis/St. Paul Business Journal
value creation. • Shelly Ibach named Executive of the Year,
• Our independent and highly diverse board Minneapolis/St. Paul Business Journal
of directors. • Shelly Ibach named EY Entrepreneur of
• Our strong track record of pay for perfor- the Year – Heartland Region
mance alignment. • Shelly Ibach named EY Entrepreneur of
the Year – National Finalist
As we disclosed in our Compensation • Shelly Ibach given Distinguished
Discussion and Analysis of the 2019 Proxy Alumni Award in Economic Leadership,
Statement – and will disclose again in our Albert Lea Education Foundation
2020 Proxy Statement, our Annual Incentive • Honor Roll for MN Census of Women in
Plan (Plan), which covers our executive offi- Corporate Leadership
cers as well as our non-commissioned team
members, is based only on the company’s
financial performance, with 100% weighting
on Adjusted EBITDA. N on-financial
performance is not considered in determining
awards under the Plan.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 28HOW WE WORK
WITH OTHERS
At Sleep N umber, sustainability is about
balancing our economic success with environ-
mental stewardship and social progress that
benefits all of our stakeholders. Sustainability
considerations include the way we design and
manufacture our products, the products and
services we offer our customers, the manner in
which we engage with our suppliers and bus-
iness partners, the dialogue we have with –
and returns we generate for – our investors,
how we support the communities where we
operate, and the programs and opportunities
we create to ensure the well-being of our
team members.
S H A R E H O LD E R E N G AG E M E N T
Our board of directors and management of our engagement program, members of our
team maintain a deep commitment to strong management team meet with shareholders,
corporate governance. Engagement with, and in-person or by phone, to discuss strategy,
accountability to, our shareholders are corner- governance, pay for performance orientation,
stones of this commitment. Accordingly, we and other matters of shareholder interest.
maintain an active shareholder engagement Specific outreach meetings with major
program that facilitates channels of commu- shareholders of the company include
nication and aims to foster relationships with participation by one or more members of our
our shareholders to drive sustainable, long- board of directors.
term growth and shareholder value. As part
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 29CO M M U N I T Y E N G AG E M E N T O U R PI LL A R S
At Sleep N umber, quality sleep is our passion. Every
day, we educate customers on the importance of sleep
and its vital connection to overall health and well-being,
inspiring them to make sleep a priority in their lives. This
passion extends to our commitment to make a positive
impact in the communities in which we operate.
Because excellent sleep is essential to a healthier and R E SE A R CH & DATA S H A R I N G
happier society, we are committed to helping future
Advance the field of youth sleep and well-being
generations achieve quality sleep. In 2018, we announced
by sharing research and data, in partnership with
a social impact commitment to help 1 million young
leading academic institutions and researchers.
people achieve life-changing sleep through our products
and sleep expertise by 2025. In 2019, we impacted the
lives of nearly half a million youth through advocacy,
education and product donations, and contributed
$760,000 to help children in housing transitions, to
support underprivileged youth, to help children in military
families get quality sleep and to benefit students who
need sleep to support their overall health and wellness.
We have established strong partnerships to accomplish
T R A I N I N G & A DVO C AC Y
our objectives with leading organizations, including
GENYOUth, Alliance for a Healthier Generation, Good360, Promote sleep education, training and advocacy
Blue Star Families and Bridging. for youth leading to improved well-being and
academic outcomes.
GENYOUth, an organization whose programming reaches
38 million students annually in 73,000 U.S. schools, is
devoted to helping students live healthfully and raise
their academic achievement.
• We partnered with GEN YOUth to conduct a sleep
survey of more than 2,100 students to learn about
adolescent and teenage sleep habits, and we convened
health, education, business and youth leaders in
Washington, D.C., to discuss the survey results and
insights and collaborate on solutions. PR O D U C T D O N AT I O N S
• We launched the “Super Sleep Contest,” inviting teens
and young adults from GEN YOUth partner schools Donate products to nonprofits focused on promoting
throughout the country to submit a video describing better quality sleep to youth and their families.
how quality sleep would impact their lives. In
conjunction with the 2020 Super Bowl LIV festivities and
“NFL 100” celebration, we selected the top 100 videos
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 30and donated a Sleep N umber 360 ® smart bed to each
winning student. Additionally, we sent each winning
student and respective teacher sleep curriculum
materials that enable the student to educate and
empower others in his or her school to get quality sleep.
• We participated in Fuel Up to Play 60 Summit, a
national youth leadership gathering in Cleveland, Ohio,
where students heard from our sleep experts about
why quality sleep matters and learned how to adjust
their nightly sleep habits to perform their best
every day.
Alliance for a Healthier Generation has reached 28 million
kids over the last 15 years and is expanding their focus
to include sleep – in addition to nutrition and physical
activity – in its holistic approach to kids’ health. We
built, launched and promoted on social media an online
resource center – Sleep Smarter. Perform Better. – to
inform educators, parents and program administrators
and give them the sleep research, insights and practical
tools to help hundreds of thousands of children improve
their sleep.
Good360 is a nonprofit that has, for 35 years, worked to
provide hope and dignity to children and families who, due
to circumstances beyond their control, such as a natural
disaster, severe illness or loss of job, have encountered
life-changing difficulties.
• In 2017, Hurricane Harvey affected tens of thousands
of families living near the Gulf of Mexico. After connect-
ing with Good360, Sleep Number committed $1 million
to provide mattresses to families impacted by
the disaster.
• In 2019, thousands of sleep kits were distributed to
children and families in the areas affected by Hurricane
Dorian, providing new bedding just when it was needed.
We are committed to improving the well-being of youth
through better sleep. Our objective is to ensure that kids
and their families understand the benefits of quality sleep
and have the tools to achieve it.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 31CASH AND IN-KIND of a Sleep N umber ® sheet set, profit organization based in the Twin
D O N AT I O N S blanket, pillow, mattress pad Cities that provides new beds and
and a special ZZZBear, which linens to children ages 2-17 in families
In 2019, Sleep Number donated more was designed to comfort mii- who have recently moved into
than $360,000 in cash and nearly tary children during separations from stable housing. The funds were
$400,000 of product to nonprofit their loved ones. Kits were lovingly raised through our biennial team
organizations, including organizations assembled by hundreds of Sleep member sale.
that support youth and military N umber team members at the
families. company’s corporate headquarters in Through Good360, one of our com-
Minneapolis. Entries were submitted munity partners, we also donated
For the past five years, Sleep Number from across the country, and children product valued at $215,000 to victims
has supported Blue Star Families in 25 states received kits. of Hurricane Dorian.
(BSF), a national nonprofit organi-
zation dedicated to strengthening In N ovember, Sleep N umber pre- In 2019, Sleep N umber donated
America’s military families through sented a $100,000 gift to BSF at the more than 500 dream kits. We also
community building. In 2019, we do- Dallas Cowboys “Salute to Service” donated more than 15 beds to
nated $125,000, of which $100,000 game. The cash gift was intended to various youth-related causes and
was in cash and $25,000 was in bring awareness to the issues faced Dream Foundation, which fulfills
product. The donations were made by military children and provide on- wishes for terminally ill adults.
through two events: “Good N ight, going programs to improve the lives
Mil Kid” in May 2019 and “Thank You, of service members and their families
N FL R E L AT I O N S H I P
Military” in N ovember 2019. In May, through quality sleep. Additionally, Through our integrated marketing
Sleep N umber and BSF teamed up as part of the “Thank You, Military” campaigns, storytelling and social
for a special giveaway to help provide campaign, Sleep N umber worked media, we are communicating the
quality sleep for youth in need. This with N FL players in three cities – vital role that life-changing sleep
initiative also provided Sleep Number Dallas, Kansas City and Minneapolis – plays in overall wellness. We are
team members an opportunity to to surprise deserving military families amplifying our purpose driven brand
engage with a meaningful cause. with Sleep N umber 360 smart beds through groundbreaking partner-
Military families were encouraged for the parents and SleepIQ Kids ®
ships with the N FL, the N FL Players
to enter the “Good N ight, Mil Kid” beds for their children. Association and the Professional
contest. Promoted through the BSF Football Athletic Trainers Society.
e-newsletter and social media, In addition, Sleep N umber donated N ow in our third year of a five-year
parents could enter daily for a $23,000 in cash and $32,000 in prod- commitment with the N FL, more
chance to win dream kits for their uct, including 100 dream kits and two than 2,000 N FL players have
children. The dream kits consisted beds, to My Very Own Bed, a non- Sleep Number beds.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 32M AYO CLI N I C CO LL A B O R AT I O N TO TE A M M E M B E R G R A N T S A N D
A DVA N CE S LE E P SC I E N CE VO LU N TE E R I S M
A N D C A R D I OVA SCU L A R M E D I C I N E
Through a groundbreaking agreement announced in We encourage and support team members who choose to
2020, Sleep Number is providing a combined total of up get involved in their communities through volunteerism,
to $10 million to Mayo Clinic through: product donations and board participation grants.
• An endowment to further sleep science research with an
emphasis on cardiovascular medicine. Team members who participate on the board of directors
• A dedicated research and development fund that will of a qualified nonprofit are eligible to apply for a grant
improve health care quality and clinical outcomes with that benefits the organization. Grants are offered for
potential life-changing benefits. general operating support, events and sponsorships.
A grant up to $1,500 can be made to the organization.
Mayo Clinic and Sleep N umber are establishing a joint Team members may submit requests for more than one
advisory group comprised of Mayo Clinic physicians – organization, but the total grant amount will not exceed
including Virend Somers, M.D., Ph.D., director of the Car- $1,500 for each team member per calendar year. Grant
diovascular Facility and the Sleep Facility within Mayo amount is based on size and impact of nonprofit and
Clinic’s Center for Clinical and Translational Science – and grant request/proposal.
researchers, and Sleep N umber leadership, including
Chief Product Officer Annie Bloomquist. Together, the
advisory group will lead initiatives to research, discover, M I LI TA RY S P O US E E M PLOY M E N T
identify and develop solutions that will impact sleep and PA R T N E R S H I P
overall well-being.
Sleep N umber is proud to be a member of the Depart-
ment of Defense Military Spouse Employment Partnership
(MSEP). MSEP connects military spouses with partner
employers, like Sleep N umber, who have committed to
recruit, hire, promote and retain military spouses.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 33EXTERNAL
ENGAGEMENT
I N D IVER SIT Y, EQUIT Y
AND I NCLUSI ON
In our home state of Minnesota, we are actively engaged
with organizations and initiatives focused on attracting,
engaging and retaining people of color.
Sleep Number has had a consistent presence at the semi-
annual People of Color Career Fair since its inception in
2017. This one-day hiring event connects hundreds of
diverse job seekers with leading employers who are serious
about increasing their diversity and inclusion efforts to
attract and retain top talent to the region.
We actively participate in GREATER MSP, the Minneapolis
Saint Paul Economic Development Partnership through its
Make. It. MSP. and BE MSP talent initiatives. Stories like
THIS ONE, by Sleep Number Vice President, IT Business
Solutions Shailesh Bhor, drive interest in Minneapolis as
a place to build a tech career – and Sleep Number as an
employer of choice.
Sleep N umber also participates in The Forum on
Workplace Inclusion’s annual conference, engaging with
others seeking to gain ideas and insights and grow their
skills in diversity, equity and inclusion.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 34P O LI T I C A L within the scope of the Code. Sleep
CO N T R I B U T I O N S N umber monitors suppliers’ com-
pliance with our standards and the
Sleep N umber does not use
Code through both formal audits
corporate funds for contributions to
and informal visits. Our Code of
political campaigns. However, we
Conduct for Business Partners is
may indirectly engage in lobbying
publicly available on our website at
activities through payments to firms
W W W. SLEEPNUM B ER .CO
or organizations whose activities
M / VENDOR .
include lobbying or policy advocacy
and through contributions to
As part of our supply chain evolution,
tax-exempt groups, including trade
we have reduced the transportation
associations.
time and environmental impact of our
manufacturing by, among other tac-
SU PPLI E R R E L AT I O N S H I P S
tics, co-locating our suppliers within –
We have for many years maintained or close to – our plant facilities. In
a Code of Conduct for Business addition, this co-location enabled
Partners that is applicable to all of our us to leverage our Sleep N umber
suppliers and addresses a full range safety expertise and train one of our
of relevant topics, including labor key business partners on safety best
and human rights, health and safety, practices.
environmental issues, ethics, and
compliance with related laws, rules In 2019, we introduced a Supplier
and regulations. All suppliers are Development Program which is a
required to acknowledge their com- structured initiative designed to drive
mitment to this Code. Sleep Number continuous systemic improvement in
provides team members and our supply chain. In 2020, we plan to
management who have direct host our first supplier conference to
responsibility for supply chain man- strengthen our supplier relationships
agement with training on matters and elevate performance.
S L E E P N U M B E R 2 0 2 0 CO R P O R AT E R E S P O N S I B I L I T Y A N D S U S TA I N A B I L I T Y R E P O R T 35You can also read
