CASE STUDY: Sesame (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

ROSABETH MOSS KANTER

JOYCE J. KIM

HARVARD eus1NEssl SCHOOL

9-321-015

JULY 20, 2020

Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

In January 2020, Sesame Workshop CEO Jeff Dunn looked back on a momentous 50th anniversa1y year in 2019 filled with celebrations of the organization's impact and awards. On May 1st he had stood next to Muppets Big Bird, Elmo, Cookie Monster, and human dignitaries on West 63rd Street between

Broadway and Central Park West singing the famous show's signature song "Smmy Days" as New

York City Mayor Bill de Blasio officially renamed that high-profile thoroughfare "Sesame Street." In November, Sesame's star-studded anniversa1y special aired on national TV, and ultimately won a Daytime Emmy Award. Even better was winning the inaugural MacArthur Foundation "lO0&Change"

grant competition for its partnership with the International Rescue Committee: $100 million awarded to just one initiative with the biggest world-changing potential.

Sesame was acting on its mission to help kids grow smarter, stronger, and kinder, a reformulated

statement of pmpose created after Dunn took the helm of the then-financially distressed and intemally­ troubled organization in 2014. Among other tu1naround moves, he brought in a seasoned TV veteran, Steve Youngwood, to lead a consolidated media team and created a Social Impact and Philanthropy (SIP) unit under long-time Sesame executive SheITie Westin. After wimling the MacArthur grant, Westin noted, "Look how far we've come and what a difference we've made, even when it looks like what we're doing is daunting or challenging or at times feels impossible."

Sesame's Turnaround: Media Results

Although Sesame had aired on public TV network PBS for decades, Drum made an m1precedented

five-year deal with paid cable chaimel HBO that began in August 2015. Dunn's decision initially was met with some ciiticism. Some felt that partnering with HBO signified not staying hue to the organization's roots. Longtime Sesame veterans wondered, "Are we giving up om· north stai·?" To convince skeptics, Dunn had to remind employees of the mantra, "the more money, the more mission," and that growth was not at odds with the aims of a nonprofit. The HBO relationship proved to be successful for PBS too, which still got rights to air the show. Sesmne Street was the second-highest rated

show on PBS in 2019, with ratings growing 41 % over the show's 49th ai1d 50th seasons.

321-015 Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

Towards the end of the HBO deal, Sesame considered several companies for another commercial partnership. Choosing the 1ight partner was cmcial because there was a growing demand for subscription video on demand (SVOD) services, which Sesame wanted to pursue. Contenders included Amazon, Disney, NBC, Netflix, and WamerMedia. Each of the contenders either had or were planning to launch an SVOD service. After months of negotiation, in 2019, Sesame decided to partner with WainerMedia, which was the home company of HBO. WamerMedia had acquired HBO after the AT&T and Time Wamer merger in 2018.

HBO launched its own SVOD service called HBO Max on May 27, 2020. As part of the renewed deal, all fifty seasons and future seasons of Sesame Street would be accessible on HBO Max. This was the first time ever that all episodes were available to stream on demand. The new partnership would include 5 new seasons of Sesarne Street and 5 additional series, including "The Not Too Late Show with Elmo." Sesame's media and licensing presence had also expanded internationally. The organization g1.'ew a English-speaking franchise business in China and also created new deals internationally in India and South Africa (see Exhibit 1 for map of Sesame's international presence).

Sesame Studios, a YouTube channel, served as an incubation lab for new content. As one executive described, "It's really become part of our creative development process." One of the series that was greenlit for HBO Max came out of Sesame Studios. Another initiative, Sesame Ventures, an in-house venture arm, had partnered with du·ee other funds, Collaborative Fund, Reach Capital, and Raine Ventures, to invest in children's education tech and media startups.

Sesame also expanded on licensing and educational initiatives. After the success of the first Sesame Place theme park outside Philadelphia, another theme park began consl:luction in San Diego, CA. There was an increase in mall-based, live appearances and plans to add a new theater show. There was also momentum for Sesame-based cmTiculum. Sesame partnered with the Chan Zuckerberg Initiative, a philantlu·opic organization founded by Facebook CEO Mark Zuckerberg and his wife, Priscilla Chan, to pilot cmTiculum ai·om1d socio-emotional lea1ning in the U.S.

After the renewed HBO partnership, expanded international operations, and im1ovative initiatives, Sesame was on track to have one of its most financially successful years. In FY2015, Sesame Workshop's revenue was $155 Jnillion. The estimated revenue for FY2020 was $236 lnillion, almost more than double of Sesame's revenue 5 years ago (see Exhibit 2 for Sesame financials). The staff also grew around 25%, from 258 employees in 2015 to 319 employees in 2020. In May 2020, Sesame Workshop was nominated for 32 Daytime Emmy awards. Sesame also expanded its social impact portfolio. Having received several grants from major foundations, it was tackling issues from homelessness in U.S. cities to the Syrian refugee crisis. Dllllll instituted major cultural shifts to make these achievements possible.

Changing the Organization

Dunn's reorganization created two primary business units: Media and Education (M&E) and Social Impact and Philantlu·opy (SIP) (see Exhibit 3 for organizational sl:lucture). Not only did Dunn make

changes operationally, he also set forth norms for cultural change. He outlined five goals for the organization:

2

1. Delivering the mission: help kids grow smarter, stronger, and kinder

2. Be financially sustainable

3. Enhance our brand and our intellectual property

Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

4. Have the right organization and the right culture

5. Look for ways to innovate and differentiate ourselves tluough that ilmovation

321-015

These goals were important to address a losing sh·eak that Sesame was in before Dunn's an-ival. As head of the M&E division, Steve Youngwood, who was brought ill from colillilercial TV by Dunn, observed, "I remember one of the first things when I walked in, it drove me crazy, was that the name on the door was Sesame Workshop, but every board presentation just had the Sesame Street logo. We had the opportunity to be bigger than Sesame Street the show. We had to start viewing ourselves as more ambitious than we have been." To encourage employees to dream bigger and thi.Ilk bolder, Dunn and his turnaround team had to diagnose and address root causes of organizational malaise.

Fostering Collaboration through Team Wins

Though Dmm intended the two groups, M&E and SIP, to have minimal overlap and not compete for the same pools of money, there was skepticism about SIP and whether or not it would drain resources from M&.E. As one long-term Sesame executive put it, "There were il1 the early days some employees who thought the social impact group would lose money." But then, he noted, winning the MacArthur grant put the two groups "on equal footing." Dmm also created a "Switzerland research group," that was independent of any division. Prior to the reorganization, Sesame's research was conducted by each division, leading to important data and metrics being siloed, and sometimes even influenced by division heads themselves. Having a broad research group that cut across the entire organization helped ensure that the evaluation processes were objective and mformation was h·ansparently shared. These measures ensured that any competition in the organization was healthy competition that stimulated overall growth.

Employee morale was bolstered by making sure everyone felt equal stake, authority, and autonomy in working towards Sesame's mission. Dunn stressed to employees that winning was a team, and not a divisional endeavor. When some employees would ask where credit would be given, Dmm would respond and say, "Nobody wins on their own. It's all a team effort and unless we pull together and work as a team, we will not win." The reward system showed this mentality. Incentives were not awarded based on divisional efforts. They were only given if the whole organization succeeded. Dunn looked for employees who were collaborative, collegial, communicative, and comfortable workmg in a holistic envil·onment.

Building AccountabilihJ and Transparenci;

Coming into Sesame, Dunn recognized that there was a culture of fear within the organization that stemmed from the previous evaluation system. While implementing changes, he noted, "The hardest part, the part that dragged on the most was the fear of layoffs." Prior to his arrival, the intemal evaluation system was prone to ilillation. On a 1 to 5 scale, with 5 being the highest, a 4 rating really signified a 3, or even a 2. The evaluation process was opaque.

Before Dmm' s m:rival, the organization had been losing money for the past eight years. As a result, employees knew that after each board budget meetil1g, there would be a rom1d of layoffs. Given the mflati11g ratings system, employees did not understand why certain people got laid off m1d not others. There had not been organization-wide incentive compensation or raises in the past five yem·s. To remedy this, Dunn told the board that a priority was to completely redo the compensation strncture. Dmm implemented a new system where ratings accurately depicted employee performm1ce and eve1yone was equally bonus eligible. Every year after Dunn's first year, employees ea.med more than

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321-015 Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

100% of their bonus, which boosted employees' sense of confidence. Not only did the new incentive

sh·ucture empower workers to have more authority, there was more accountability.

To further offset the previous culture of fear, Dunn sh·ived to create a culture of transparency. He implemented an "Ask Jeff Anything" section in Sesame's quaiterly meetings, which allowed any employee to ask Jeff anything anonymously (see Exhibit 4 for sample of" Ask Jeff Anything" questions and answers). Questions ranged from topics as diverse as the availability of gender-neutral bathrooms

to paid time off policy to the possibility of investing more in organizational research. Dunn felt that it was important to be super comn1m1icative as a measure of accom1tability. "The board hires me and can fire me, so obviously I work for the board, but I also think I work for the staff and I feel accountable to the staff," Dunn stated. He would also randomly select employees to come have monthly breakfast or lunch with him and review the" Ask Jeff Anything" questions and have a conversation about them. He was getting regular feedback from his employees and they were receiving regular feedback from him.

He made himself accessible, stressing to employees that if they ever had questions they could always reach out and get on his calendar and come talk to him. Thinking about this organizational practice, Dunn said, "I really feel like the CEO has to be accountable to the people. You owe them explanations. You have to be able to say when people ask, 'Why did you do this?' You might not agree with it, but I'm going to always be honest with you."

Going Beyond Local Streets for Bigger Social Impact

Dunn commented that, before the 2015 reorgailization, "the social business had been an adjunct, it's not like we hadn't attempted to do some of this stuff, but it was never its own business mlit with its own focus, its own clue£ executives hying to grow it." When SIP became a formal entity, Sherrie Westin, who was then Chief Marketing Officer, became the head of the group. Westin said, "While I've been as Sesame for many, many years, I've never felt as supported or empowered or able to lead and make a difference as I have under Jeff's leadership." Dunn's support gave Westin the ability to think bigger. She oversaw the launch of Sesame Sh·eet in Communities, Sesame's domestic social impact initiative,

and Ahlan Simsim, which focused on refugee cltildren worldwide.

Sesam.e Street in Communities

Sesame Sh·eet in Communities (SSIC) was a domestic initiative launched in 2015 that forged parh1erships with local orgailizations in U.S. cities to tackle eai·ly childhood h·auma in vulnerable

communities. After receiving nearly $30 million in grant funding from the Robert Wood Johnson Foundation and the Joan Ganz Cooney Fund for Vulnerable Children, SSIC launched a pilot program in three cities: Kai1sas City, MO; Los Angeles; and Guildford County, NC. Since the pilot launch, SSIC had expai1ded to five other cities. Each city undertook specific issues tailored to the commmlity. For example, SSIC in Los Angeles parh1ered with UCLA, the LA Tmst for Children's Health, and the Child Care Center for Los Angeles to raise awareness and provide oral healthcare services for cltildren. Across the counhy, in Camden, NJ, SSIC collaborated with the Center for Family Services and the

Hispanic Fainily Center of Southern New Jersey to create SSIC "Comfy Cozy Spaces" in local conllllm1ity centers in the city. These spaces had Sesame toys ai1d media-based tools as pait of h·auma­ informed care interventions.

SSIC offered free bilingual English ai1d Spanish online resomces, including cunicula, videos, and digital activities for children and their cai·egivers to navigate difficult issues, such as supporting

children whose parents may be serving in the military or incarcerated. Other issues included homelessness and addiction.

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Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder 321-015

New Muppets were introduced to address challenging issues that were part of SSIC initiatives. In 2011, Lily was introduced as a food-insecure seven-year-old. By 2018, her st01yline included homelessness. Another Muppet reflected the issue of children with disabilities. Due to the growing numbers of children within autism, Westin promoted the creation of Julia, a four-year-old autistic Muppet who premiered on the show in 2017 (See Exhibit 5 for image of Julia) as part of a SSIC initiative called "Sesame Street and Autism: See Amazing in All Children." This initiative included a mobile app that provided resources for families. Sesame Place, a theme park based outside of Philadelphia, also became the first theme park in the world that was designated as a Certified Autism Center.

Ahlan Shns-irn: Sesame and the Worldwide Refugee Crisis

When Westin took on SIP, she realized that fulfilling Sesame's mission meant asking, "What are the issues of the day? What are the challenges facing young children today where Sesame can play a role and children can overcome those challenges?" She thought about Sesame's global roots. Although Sesame was founded in the U.S., within two years Germany, Brazil, and Mexico all had their own indigenous productions. Westin decided to take a more global view and identified a myriad of issues affecting children, including HIV/ AIDS in South Africa and girls' education in Afghanistan.

As the Syrian refugee crisis was gaining widespread international attention in 2016, Westin sensed an opportunity to further Sesame's mission for a vulnerable population: the millions of children who were displaced from the crisis. This crisis emerged as a result of the Syrian Civil War, which began in 2011, and grew out of dissatisfaction with the Syrian government. In 2020, nearly a decade after the war emerged, it was estimated that there were nearly 200,000 civilian deaths, with about 25,000 being children.1 5.6 million Syrians became refugees and an additional 6.2 lnillion were displaced. 2 An additional 12 million people needed humanitarian assistance in Syiia. 3 This was the largest number of individuals displaced since World War II and half of them were children.

To tackle the refugee crisis, Sesame needed a partner. Sesame's strengths lay in children's education and media, not humanitarian work. After analyzing several leading international NGOs that worked on refugee issues, Westin identified the International Rescue Committee (IRC), a global humanitarian aid, relief, and development NGO founded in 1933, as the best partner to respond to the Sy1ian response. Coincidentally, IRC board member Gillian Sorensen, former Assistant Secretaiy-General of the UN, had been Dunn's colleague at Hai,rard in 2014.4 The IRC focused exclusively on refugees, and had a research-based early childhood division. Over breakfast with IRC CEO, David Miliband, former U.K. Secreta1y of Foreign Affairs, Westin pitched the pai·tnership possibility, and Miliband agreed.

The perfect opportunity emerged in May 2016 at the inaugural World Humanita1iai1 Summit in Istanbul, where Westin and Miliband aimounced their pattnership to i1111ovate and develop multi­ media educational resources designed for refugee children. 5 Although nonprofits often waited to at111ounce an initiative after receiving some funding, Westin and Miliband agreed that since this was a high profile event, they decided to put a stake in the ground in the hopes of garnering attention and receiving funding. Their bet proved successful. Their at111ouncement attracted funding from the Bernai·d van Leer Foundation, a Netherlands-based foundation founded in 1949 focused on improving opportunities for children from disadvai1taged communities, ai1d Open Society Fom1dations, an international grantmaking organization, founded by business magnate George Soros in 1993. The initial funding was used to kickstart a pilot, which brought in experts to create and test content for refugee children. For the pilot, Sesame ai1d the IRC begai1 forming partnerships with major NGOs ai1d government agencies in Jordan, Lebai1on, and Iraq.

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321-015 Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

MacArthur Foundation l00&Change Competition

The John D. and Catherine T. MacArthur Foundation launched a bold funding competition called lO0&Change in June 2016. The competition would award one $100 million grant over a five-year period towards an initiative tackling a big institutional problem in a sustainable and meaningful way. Then President, Julia Stasch remarked in a press release, "Potential solutions may go unnoticed or under resourced and are waiting to be brought to scale ... Through lO0&Change, we want to inspire, encourage, and support other peop[e's ideas ... across the nation and around the world, about how to address major challenges and enable real progress toward a solution." 6 In the inaugural competition, there were 1,904 proposals from 7,069 registrants. 7

Sesame utilized their existing pa1tnership and pilot project with the IRC to submit a proposal. Their prnposed project, " Ahlan Simsim," which meant "Welcome Sesame " in Arabic, was an evidence-based child intervention program for children displaced due to the Syiian refugee crisis. To address children affected by this oisis, Ahlan Simsim had tlu-ee major components: 1) A locally-produced TV show that would be called Ahlan Simsim and made available via broadcast and on digital platfo1ms targeting 9.4 million children in fraq, Jordan, Lebanon, and Syria 2) A home visit program reinforced with digital

content for 800,000 caregivers and 3) An early learning program that would be delivered through NGOs and local community organizations.

In Februa1y 2017, the MacArtlmr Foundation announced that Sesame and tl1e IRC's proposal had advanced to the next round as one of eight semi-finalists. 8 Seven months later, the proposal was named one of four finalists. Begiiming on September 29, 2017, all finalists had to answer public questions about thefr proposals in a weekly online series. On December 11, 2017, there was a livestreamed finalist event. Alongside Miliband, Westin spoke to 300 people in a ballroom in Chicago. She proclaimed, "Our vision is for Sesame to be a model for humanitarian response around the globe ... for refugee children wherever they may be, for every displaced child to have what those of here take for granted, the laughter and learning that Sesame briI1gs."

Two weeks after the finalist event, WestiI1 received a call from the MacArtlmr Foundation. She called Dunn to the office. Within minutes, other staff members gathered outside Westin' s office to hear the verdict. Once Dunn opened the door, it was clear that Sesame had won the inaugural lO0&Change competition. Thinking back to that moment and Dmm's reaction, Westin remembered, "He just could not have been more enthusiastic, supportive, proud ... he made me feel like it was tl1e Workshop's vict01y and mine. It was all of ours ... he was just so proud of all of us."

The MacArthur award meant Ahlan Simsim would be the largest early childhood intervention program ever created in a humanitarian setting (see Exhibit 6 for Ahlan Simsim's projected impact). Ahlan Simsim built upon Sesame's expertise in bringing local versions of Sesmne Street in Afghanistan, Bangladesh, India, and Soutl1 Africa. According to one Sesame executive who had been at the organization for over 20 years, receiviI1g the award was a "huge win," and brought to Sesame Workshop the "mentality that we were world class."

After winning tl1e grant, Sesame convened a diverse set of stakeholders, includiI1g local IRC staff, early childhood specialists, psychologists, and play and art therapists at gatl1erings in Jordan and Lebanon to collaboratively develop the show, Ahlan Simsim, and related curriculum. Over the course of 2019, new Muppets were developed to star in ilie show: Basma, a female purple-furred, almost-six­ year-old giI'l; Jad, a yellow-furred, almost-six-year-old boy; and Ma'zooza, a baby goat that accompanied Basma and Jad on their adventures. In November 2019, a 60 Minutes special featured Sesame's MacArthm· project and its in-person services (see Exhibit 7 for Ahlan Simsim program implementation). Ahlan Simsim went into production at a studio in Amman, Jordan where 26 episodes

6

Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder 321-015

of the first season were created by September 2019 and premiered in Febmary 2020 across 10 national broadcasters in Iraq, Jordan, and Lebanon.

Winning the grant also attracted other funders, including the LEGO Foundation, who awarded Sesame another $100 million in December 2018 to expand their refugee crisis work to the Rohingya crisis in a project called Play to Learn.9 1bis crisis surfaced in August 2017, where almost 700,000 Rohingya Muslims fled Burma as a result of the state's large-scale ethnic cleansing. 10 By early 2020, Westin was looking to replicate and expand Sesame's humanitarian work to Colombia for Venezuelan refugees and seeking opportunities in Africa. Looking back on Sesame's response to the global refugee crisis, Westin said, "I think we really are helping to b:ansform humanitarian response to include early education. I see such a difference when I speak around the world, the receptivity and the fact that it's

on people's radar, it's a huge difference between two years ago .. .l feel like we've been part of the movement that has helped shine a huge spotlight on that."

Leading Sesame with Head and Heart

"Elmo thinks it's i1nportant to be kind because if you're kind to sornebody, then theij'll be kind to somebody, and it goes on and on and on."

- Elmo

After years in the private sector, becoming CEO of a nonprofit organization brought out different sides of Dunn's leadership. He recognized that the more time he spent at Sesame, the more a sense of transparency, candor, fairness, honor, and hiring people with the right character was c1ystallized in the way he led Sesame.

Successfully nrnning Sesame took both "head and the heart." Dunn explained the two sides, "If you just listen to your heart, which is what Sesame did for years before, you're g01ma end up financially in a bad place, because it does take financial discipline, but if you only nm it with the head or for the financial discipline it's not going to work either because you have to capture people who do it from their hearts ... so you have to walk both of those lines, it's the left brain and the 1ight brain." Looking at his team, he further elaborated. "Sherrie Westin is a huge heart person, and so in elevating her and letting her do her thing and making her visible both internally and externally, the heart part comes through loud and clear." The metaphor and values of the head and the heart were echoed by both of Sesame's division heads. Wes tin would tell Dunn, "You have a head for business and a heart for mission." Youngwood noted, "Sesame's a mission-driven organization. You definitely have to lead by

your heart as much as you lead by your mind to motivate and connect with people."

Over five years, Dunn and his turnaround team created a robust, mission-aligned culture with clear values. The cycle had been shifted from a losing streak to a winning streak. This gave them the confidence to i1movate and to feel they could weather any storm. What could possibly stop them now?

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321-015 Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

Exhibit 1 Map of Sesame Workshop's International Offices 2020

New York New Delhi

Johannesburg

SESAME WORKSHOP

Source: Company documents.

8

Shanghai Dhaka

Sesame Workshop (B): Celebrating SO Years of Helping Kids Grow Smarter, Stronger, and Kinder 321-015

Exhibit 2 Sesame Workshop Consolidated Financial Statements, 2017-2019

SESAME WORKSHOP AND SUBSIDIARIES

Consolidated Stat.ements of Activities

For the years ended June 30, 2018 and 2017 (in thousands)

2018 2017

Ttmporarlly Temporarily UIU'tstrlcted Rtstrltltd Total U11ru1rltted Rtstrltted Total

REVENUES

Program support I l,8l9 $ 35,967 s 47,786 s 19,500 s [6,172 s 35,672 Distribution rees and royalties 52,931 52,931 48,591 48,591 Licensing 34,5[7 34,517 34,229 34,229 Ntl asse1s released from rcs1ric1ions 26,734 �6,734) 20,438 (20,438)

Total operating revenues IUi,001 9,233 135,234 122,758 (4,266) 1 [8,492

EXPENSES

Program cxptnsts: Media and edllCa tion 53,426 53,426 52,993 52,993 Global soci.al unpac1 29,875 29,875 22,560 22,560 Creative 9,64-0 9,640 7,945 7,945 Str:uegy and restarth 4,486 4,486 4,7ll 4,711 Amorli2lltion expense 2,ffl.1 2 027 b027 2,027

Total program expenses 99.454 99,454 90,236 90,.236

S.uppon expenses: Fundmising 4,283 4,283 3,541 3,541 Ge-mral and administrarive 20,711 20711 18 017 [8017

Total suppon expenses 24.994 24,994 21,558 21.558

Total operaiing expenses 124 448 [24,448 111 794 111 794

Operating income (lnss) l,553 9,233 I0,786 I0,964 (4,266) 6,698

Net investment im:ome IS�I 15,501 17 7l0 l7 7IO Increase (decrease) in nc1 assets before

benefit for im:ome taxes 17,054 9,233 26,287 28,674 (4,266) 24,408

Benefit for income taxes (13) (13)

Increase (decrease) in net assets 17,061 9,233 26,300 28,674 (4,266) 24,408

Net assets, beginning ofyeM 243,883 15,887 259,770 215,209 20,153 235,362

Net assets, end of year 260,95-0 $ 25,120 s 286,070 s 24318&3 s 151887 s 259,770

9

SESAME WORKSHOP AND SUBSIDIARIES

Consolidated Statements of Activi t

ies

For the years ended June .30, 2019 and 2018 ,(in thousands)

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Tc:ul�esJ>l!llol!S 122,411 122,411 99,454 99,454

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Tc:ul.SIJRl(ll1e.-.pe::11e; 'll,CQ 11!1,8 24,994 24,,994

TIX.ll�e.� 149)1(1 14.9)1(1 124,448 124,448

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bmeiit !or IllllllDf, I.ms, 15,615 n,.m �o 17,054 9,23,3 26,287

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Ni!t��l?f}ur 2(,0�0 25,120 2S6.,010 243$83 15.,8S7 2>9,710

Net�mlol')"e,a! i 276,440 $ 38,445 $ 314,&15 $ 260,950 $ 25,111) $ 2%,070

Sotu-ce: Company documents.

10

Exhibit 3 Sesame Workshop Organizational Chart 2020

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321-015 Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

Exhibit 4 Sample of" Ask Jeff Anything" Questions and Responses

u As-11: Jeff Anything"

Questions & Answers December 10, 2019, AH .Staff Mntlng

Q4: Can we please institute gender neutral bathrooms on all floors?

Q5: Can we create a gender-neutral bathroom on one of the "main" fl'oors? This would help create a more- inclusive work environment for both staff and visitors.

Q6: It would be great to see Sesame establish gender-neutral bathrooms as part of the commitment to make a,11 staff and gue.st:s feel welcome and comfortable. We must have space on one of our floors to offer th is opt ion.

A4, Sand 6: JD: We are now e.xpre:ssly labeling the two single bathrooms on the 4"' floor as gender neutral. They always havti been available to and used by both genders, but we want everyone to know that they e.xist and should absolutely feel free to use them. One is located across from Steve Youngwood's Office and the other is located outside our Boardroom. We have no plans to turn the multi-stall men's and women's room on each floor into gender neutral bathrooms, and it is also not practical to construct additional single bathrooms on each floor.

QlO: Can we make a companywide pledge to stop using pla<Stic water bottles at large meetings and events? This resulits in so much unnecessary waste when most poople have access to reusable bottles.

AlO. JD: It's an important idea to consider. We will discuss the logistics of this. As a result of your question, I have asked Diana Lee and Daryl Mintz to put together a task force of employees to consider what steps we can take to become more eco-friendly/responsible. Anyone who is interested in becoming a part of this, should reach out to them. To be more eco-friendly, we served boxed water and used recyclable paper plates at our last two catered events.

QlS: Why am Ask Jeff questions still submitted in writing? Woul'dn't It make mo11e sense to use one of the many web<Sites that allow people to submit questions anonsymouslyj? It seems. like a waste of time to have someone go ·floor to ·floor, picking up the boxes, and have tlhem type these out. I'm sure a ton of the questions are ineligibl!@ as well. rm sure there's a reason why we have the Ask Jeff boxeas on every floor, but it seems like submitting these digjtally is the smarter, more efficient al'ternative.

A18. JD: I think the answer is that this is just how we started out 5 years ago. It's a good observation and question. I will Investigate for next time the digital alternatives you are suggesting. By the way, just to be clear, there are no ineligible questions. We/I don't edit or suppress any question. We include them as written, even with typos and grammatical mistakes. For better or worse (and I know there are different opinions about this), every question or statement received gets induded and responded to.

Source: Company docmnents.

12

Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

Exhibit 5 Sesmne Street's Julia

Sotll'ce: Company website.

Exhibit 6 Ahlan Simsim Projected Impact 2020

4.8-7.9

Mass media only

Sotll'ce: Company documents.

Ahlan Simsim s-year reach targets, Millions

1.5

Direct services and mass media

321-015

6.3 - 9.4 1

Total

13

321-015 Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder

Exhibit 7a Ahlan Simsirn Muppets

Left to Right: BaSllla, Ma'zooza, and Jad

Source: Company website.

Exhibit 7b Ahlan Simsim Program Implementation

Narrative Segment of Ahlan Simsim Ahlan Simsim Home Visit Program

Source: Company documents.

14

Sesame Workshop (B): Celebrating 50 Years of Helping Kids Grow Smarter, Stronger, and Kinder 321-015

Endnotes

1 Statista, "TI1e Syi·ian Civil War- Statistics," Februaiy 7, 2020, https:/ / www .statista.com/ topics/ 4216 / the-syriai1-{:ivil-war /, accessed Jm1e 2020.

2 World Vision, "Syi'i.ai1 Refugee Crisis," Februaiy 20, 2020, https:/ /www.worldvision.org/refugees-news-stories/ syrian­ refugee-cr'i.sis-facts, accessed May 2020.

3 Ibid.

4 Rosabeth Moss Kanter, Tilink Outside the Building: How Advanced Leaders Cai1 Chai1ge the World One Smart hmovation at a Time, (New York: PublicAlfairs, 2020), p. 44.

5 Sesame Workshop, "Sesame Workshop and the h1ternationa.l Rescue Committee Atmounce New Pai·tnersllip to Help Children ai1d Fainilies Living in Ct'i.sis, https:/ /www.sesameworkshop.org/ press-room/ press-releases/ sesaine-wmkshop­ and-intemationa.1-rescu�ommittee-aimounce-new, accessed June 2020.

6 Macaithur Fotmdation, "New MacAtthur Competition to Award $100 Million to Help Solve a Ct'i.tical Problem of Our Time", June 2, 2016, https:/ / www .macfound.org/ press/ press-releases/ new-macaithur-competition-award-100-million-help-solve­ critical-social-problem/, accessed May 2020.

7 Macaithur Fotmdation, "Sesame Workshop & h1ternationa.l Rescue Committee Awai·ded $100 Million for Early Childhood Education of Syi'i.ai1 Refugees," December 20, 2017, https:/ /www.macfound.org/ press/ press-releases/ sesame-worksl10p-ai1d­ internationa.l-rescue-committee-awarded-lOO-million-eai·ly-childhood-education-syi'i.an-refugees/, accessed July 2020.

8 Sesame Workshop, "Sesaine Workshop and TI1e h1ternationa.l Rescue Committee Named Senli-Finalists in Macaithm1s Foundation's Prestigious lOO&Change Competition, February 15, 2017, https:/ /www.sesameworkshop.mg/press­ room/ press-releases/ sesaine-workshop-and-intemationa.1-rescue-committee-named-semi-finalists, accessed Jtme 2020.

9 Sesame Workshop, "TI1e LEGO Foundation Awai·ds $100 million to Sesame Workshop to Bring the Power of Leaining tlu·ough Play to Cllilchen Affected by tl1e Rollingya and Syrian Refugee C1'i.sis," December 5, 2018, https: / / www .sesameworkshop.org/ press-room/ press-releases/lego-foundation-awards-100-million-sesame-workshop­ bring-power-leaining, accessed May 2020.

10 Human Rights Watch, "Rollingya C1'i.sis", https://www.hrw.org/tag/rollingya-cr'i.sis, accessed May 2020.

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