Billabong International Limited is committed to ethical and responsible business practices that lead to positive social and environmental outcomes. The Company has a proud heritage in each of these disciplines and a shared understanding across our global operations of their contribution to the ongoing growth and success of the business.

In assessing the Company's annual progress, the measurement and reporting of financial performance is the easy part of the equation. The greater challenge is the measurement and reporting of the Company's social, environmental and general ethical performance.

Billabong International Limited has generally refrained from promotion of its achievements in these areas, taking the position that extensive publication of the initiatives may be viewed as a marketing exercise rather than a genuine contribution to the betterment of communities. However, increasing interest in our work in relation to social, ethical and environmental practices has encouraged the Company to more openly communicate our position.

It should also be noted that there is no final destination in the journey towards social, ethical and environmental excellence. These are areas open to eternal change and the challenge, quite simply, is to strive for continual improvement. This section of our website is designed to provide stakeholders with the Company's baseline social and environmental position and be a platform for the regular communication of our improvement.