Diversity

Leveraging the Strength of our Diversity
In our 2009 Corporate Social Responsibility Report, we stated our intention to enhance the company’s approach to strategic diversity management in the coming year. We have since created a Diversity Management Executive Steering Committee, which is chaired by CVS Caremark President and CEO, Larry Merlo. This group sets short- and long-term strategy in the area of diversity management. Another executive committee created in 2010, the Diversity Management Leadership Council, was founded with the following charter:

We will:

• Support our corporate mission by strengthening CVS Caremark’s diversity management capability
• Improve the effectiveness and integration of workforce, workplace and marketplace efforts

All new colleagues are introduced to the company’s diversity management philosophy during the new hire orientation process, and diversity training is also offered throughout the year for various levels within the organization.

Across the company in 2010 we launched “Diversity – the Competitive Advantage,” a diversity curriculum for leaders that enables participants to build their skills in identifying and managing diversity as a core strength of their teams. In early 2011, this program was expanded to include a two-part web-based seminar giving participants the specific tools they need to meet and exceed their personal and professional goals in the area of diversity management in 2011. This curriculum is set to expand further in 2011 with web- based coursework for “first level leaders” – managers, supervisors and individual contributors. These web-based courses were added to the curriculum in addition to the company’s existing instructor-led diversity management course in order to make the content accessible across our entire company via LEARNet, our intranet learning portal.

Colleague Resource Groups

Our Colleague Resource groups also were active in 2010, led by colleagues and supported by Company leaders. The Company counts 12 Colleague Resource groups (CRgs) in all across our locations, including an Asian Colleague Resource group, African American Resource groups (two), Latino Colleague Resource groups (four) and Women Colleague Resource groups (five). Plans are underway to further expand the growth of these groups in 2011, and a working committee has been convened to launch “Valor,” a Colleague Resource group for military veterans, those currently serving and their supporters.

All chartered CRgs are required to submit an annual business plan in order to receive budgetary support from the Company. Beyond discussing Company issues and opportunities, our CRgs were active in local communities in 2010, contributing nearly 3,000 volunteer hours over the course of the year. Internal program development is another focus. In 2011, the Women’s Success Network, one of our largest CRgs, will launch a pilot mentoring program in partnership with the company’s senior leaders and with support from the Human Resources department.