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2010 Corporate Responsibility Report<br />

Be Well, Every Day.


About This Report<br />

Since we started our business in 1913, corporate responsibility (CR) has been at the core of <strong>The</strong> <strong>Clorox</strong><br />

<strong>Company</strong>. It’s part of our DNA and a driver of engagement for <strong>Clorox</strong> people around the world. We are pleased<br />

to share our first in-depth CR report, which provides our key stakeholders — shareholders, employees,<br />

consumers, customers, government and nongovernment organizations, business partners and community<br />

members – a detailed account of our CR progress and future commitments.<br />

Our report content and structure are based on our recently formalized CR strategy that outlines our focus<br />

in five key areas or “pillars” — Performance, Products, People, Planet and Purpose. You can read more about<br />

our pillars in our CEO letter on pages 3–4 and in our CR strategy overview on pages 7–8.<br />

We’re in the early stages of formal CR reporting and establishing a comprehensive data-collection system.<br />

We will continue to build these processes with the goal to expand our reporting globally — including the<br />

communication of additional goals, targets and indicators — in future reports.<br />

We have not sought external assurance for this report. Our content has been thoroughly reviewed by <strong>Clorox</strong><br />

Legal and Internal Audit teams to ensure our data is accurate. Data measurement and calculations are based<br />

on ongoing, internally tracked information by various <strong>Clorox</strong> organizations. Environmental data provided in<br />

this report is a combination of internal and third-party compliance tracking and measurement.<br />

Reporting Period<br />

Unless otherwise noted, data in our report covers our wholly and majority-owned operations during fiscal<br />

year 2010 (July 1, 2009, through June 30, 2010), with the exception of our environmental sustainability data,<br />

which is tracked on a calendar-year basis. In some instances, we have included data from previous years to show<br />

year-over-year comparisons. We plan to issue an abridged CR report every year and an in-depth, comprehensive<br />

report every other year.<br />

Global Reporting Initiative<br />

Our CR report was developed according to the Global Reporting Initiative (GRI)<br />

G3 guidelines, which provide a recommended framework and indicators for reporting.<br />

We are reporting against a GRI-checked application level of “B.”<br />

A table outlining the location of GRI standard disclosures is located on page 54.<br />

More information on the G3 Guidelines and application levels is available at<br />

www.globalreporting.org.<br />

Share Your Feedback<br />

Questions or comments about <strong>Clorox</strong>’s corporate responsibility report can be directed to responsibility@clorox.com.<br />

We also invite your to share your feedback by taking a brief survey at http://www.surveymonkey.com/s/<strong>Clorox</strong>CR.<br />

For every survey completed by Dec. 31, 2010, we will donate $5 to the American Red Cross International<br />

Response Fund, up to $10,000.<br />

Contents<br />

Chairman’s Message 3 | About <strong>Clorox</strong> 5 | Performance 6 | Corporate Strategy 7 |<br />

Stakeholder Engagement 15 | Products 18 | People 29 | Planet 37 | Purpose 49 |<br />

GRI Content Index 54<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 1


Stop<br />

Germs<br />

Eighty percent of germs are spread by touch. <strong>Clorox</strong> ® regular<br />

bleach and our disinfecting products provide an affordable<br />

and widely available solution that can literally help wipe<br />

away the germs that cause some of the world’s most prevalent<br />

bacterial and viral-born infections.<br />

Apply<br />

Liberally<br />

Beeswax, botanical oils, herbs, flowers and<br />

minerals. Burt’s Bees ® natural personal care<br />

products use the best ingredients nature<br />

has to offer and each product is made with<br />

<strong>The</strong> Greater Good in mind.<br />

Pour<br />

Responsibly<br />

Better taste, less waste: It’s so easy to achieve with Brita ®<br />

water-filtration products. Just one Brita ® filter and a reusable<br />

water bottle can help eliminate the need for 300 half-liter<br />

plastic bottles of water. And Brita ® filters are recyclable<br />

thanks to our partnership with Preserve ® .<br />

Preserve ® is a registered trademark of Recycline, Inc.<br />

Clean<br />

Naturally<br />

2 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR<br />

Setting the bar for a natural kind of clean. <strong>The</strong> Green Works ®<br />

brand makes natural cleaning possible through its line of<br />

cleaning products using biodegradable plant-based cleaning<br />

ingredients that get the job done.


Donald R. Knauss, Chairman and Chief Executive Officer<br />

Safeguarding Family<br />

Well-Being, Every Day<br />

At <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong>, a quote by Rose F. Kennedy is special to us all:<br />

“Life isn’t a matter of milestones but of moments.”<br />

This simple truth serves as a source of inspiration for the corporate mission statement that our employees<br />

know by heart and take pride in:<br />

“We make everyday life better, every day.”<br />

Our mission statement is a reflection of our belief that each of our products has a meaningful impact on<br />

consumers’ everyday lives. Our namesake bleach and disinfecting products help kill germs that make people<br />

sick. Green Works ® cleaners and Burt’s Bees ® products address consumers’ growing desire for naturally<br />

derived products. Brita ® water filters make tap water taste great and help reduce bottled water waste.<br />

And Hidden Valley ® dressings helps kids eat their vegetables.<br />

For generations, our products have been a part of the moments of day-to-day family life. While our lives are<br />

accentuated by the occasional milestone, it is the everyday moments that nurture our families, define who<br />

we are and give texture and meaning to our lives.<br />

Our mission statement is a reflection<br />

of our belief that each of our products<br />

has a meaningful impact on consumers’<br />

everyday lives.<br />

Our Focus on Family Well-being<br />

Our corporate responsibility initiatives tie back to our mission<br />

statement and reflect what our people and products do best.<br />

That is why the cornerstone of our corporate responsibility<br />

efforts — and our purpose — is:<br />

“We safeguard family well-being, every day.”<br />

This statement supports our long-standing history of providing<br />

everyday disinfecting products for use in homes, schools and<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 3


Safeguarding Family Well-Being, Every Day<br />

hospitals and for aid in global pandemics and natural disasters. It speaks to our employees’ volunteerism<br />

and giving activities and our support for K-12 education, various charities and other community programs.<br />

And it conveys our commitment to creating more sustainable products and our goal to play an even greater<br />

role in public health through our infection prevention platform.<br />

When we thought about who benefited the most from our social impact, we realized it was the whole family:<br />

the nuclear family, the multigenerational family, the single parent family, the domestic partnership — even the<br />

family pet. No matter what kind of family you have, our products and the partnerships we have developed —<br />

from the American Red Cross and Sierra Club to Children’s Health Fund and the American Society for<br />

the Prevention of Cruelty to Animals — are all focused on supporting your well-being.<br />

<strong>The</strong> Five Pillars of <strong>Clorox</strong>’s Corporate Responsibility<br />

We have defined our commitments in five critical areas:<br />

Performance Achieve financial success with transparency, strong governance and corporate<br />

responsibility embedded in our operations<br />

Products Deliver responsible products, made responsibly<br />

People Promote diversity and inclusion, opportunity and respectful treatment for everyone who<br />

touches our business<br />

Planet Shrink our environmental footprint while we grow our business<br />

Purpose Safeguard family well-being, every day<br />

<strong>The</strong>se pillars represent areas where our business and social imperatives intersect. <strong>The</strong>y serve as the foundation<br />

of our corporate responsibility strategy, which we formalized this year.<br />

We understand that now, more than ever, the choices we make can have a significant impact on people,<br />

our planet and our communities. I believe our strategy and our commitments will guide our company<br />

toward long-term, sustainable growth, while enabling us to positively contribute to the communities in<br />

which we conduct business.<br />

For <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong>, corporate responsibility is an ongoing commitment and a journey. We are pleased<br />

with our progress so far, but we have more to accomplish and a lot to learn as well. In the meantime, everyone<br />

at <strong>Clorox</strong> is committed to earning your trust, every day.<br />

Donald R. Knauss<br />

Chairman and Chief Executive Officer<br />

Please take the time to share your thoughts, ideas and questions with us at responsibility@clorox.com.<br />

4 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Making Everyday Life Better,<br />

Every Day for Nearly a Century<br />

Our History: Clean Beginnings<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> was founded in 1913 in the<br />

San Francisco Bay Area city of Oakland, Calif.<br />

We started with just one product, <strong>Clorox</strong> ® bleach,<br />

made from the salt marshes of San Francisco<br />

Bay. It was initially an industrial-strength<br />

liquid germicide sold to Oakland laundries,<br />

breweries, walnut processing sheds and<br />

water municipalities and was delivered<br />

by horse-drawn wagons.<br />

In 1916, we began bottling<br />

a household solution of<br />

bleach that quickly gained<br />

popularity as an effective<br />

laundry additive, stain<br />

remover, deodorant and<br />

disinfectant. In 1921,<br />

the first cargo of <strong>Clorox</strong> ®<br />

bleach destined for Eastern<br />

store shelves was loaded<br />

aboard ship at the Port<br />

of Oakland.<br />

By 1928 — thanks to<br />

extensive national<br />

advertising and salespromotion<br />

campaigns<br />

stressing its purity, versatility<br />

and dependability — <strong>Clorox</strong><br />

bleach had become a commonplace<br />

sight in American families’ laundry<br />

rooms, kitchens and bathrooms. That year, the<br />

company went public for the first time.<br />

Our stock began trading on the San Francisco<br />

Exchange. By the mid-1950s, we had established<br />

the largest market share of bleach in the U.S. and<br />

have never let go of this leadership position.<br />

<strong>Clorox</strong> Today: Global Reach<br />

Since our early days of manufacturing<br />

just one product, we have grown into<br />

a global company, manufacturing and<br />

marketing some of consumers’ most<br />

trusted and recognized brand names:<br />

our namesake bleach and <strong>Clorox</strong> ® -<br />

branded cleaning products; Green<br />

Works ® natural cleaners; Poett ®<br />

home care products; Fresh<br />

Step ® cat litter; Kingsford ®<br />

charcoal; Hidden Valley ®<br />

and K C Masterpiece ®<br />

dressings and sauces; Brita ®<br />

water-filtration systems; Glad ®<br />

bags, wraps and containers; and<br />

Burt’s Bees ® natural personal<br />

care products. In fact, nearly<br />

90 percent of the brands in<br />

our global portfolio are the<br />

No. 1 or No. 2 market-share<br />

leaders in their categories. With<br />

approximately 8,300 employees<br />

worldwide, we manufacture<br />

products in more than two<br />

dozen countries and market<br />

them in more than 100 countries. <strong>Clorox</strong><br />

is headquartered in Oakland, Calif. and trades on the<br />

New York Stock Exchange under the symbol “CLX.”<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 5


Be<br />

Accountable<br />

Performance<br />

Achieve financial success with transparency, strong governance<br />

and corporate responsibility embedded in our operations<br />

A cross-functional team helps ensure we are looking<br />

at corporate responsibility from multiple perspectives.<br />

From left to right: Brian Hayle, Deborah Napierski,<br />

Kathryn Caulfield, Mary O’Connell, Aileen Zerrudo,<br />

Chris Merhige, Janki Darity, Bill Morrissey, Sheldon<br />

Quan, Victoria Jones and Greg van Buskirk.<br />

6 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Integrating Corporate Responsibility<br />

Into Our Business<br />

CR OVERVIEW<br />

Trust is the foundation on which we have grown our business since <strong>Clorox</strong> was founded in<br />

1913, and we understand it’s something we must continue to earn. That’s why we have stepped<br />

up our efforts in corporate responsibility, establishing a formal strategy that is integrated into<br />

our business and reflects the social and environmental issues we have identified as company<br />

priorities based on internal and external feedback.<br />

Assessment and Research Helps Identify Key Priorities<br />

Our CR strategy and pillars are based on an extensive review and assessment of all facets of<br />

corporate responsibility at <strong>Clorox</strong> involving the following inputs:<br />

• Materiality assessment to better understand and prioritize our corporate responsibility<br />

issues, including strengths and gaps, for the company and our stakeholders<br />

• Global study to gain insights into the perspectives of a broad spectrum of external<br />

stakeholders regarding <strong>Clorox</strong> products, communications and business practices, as<br />

well as on global trends and issues<br />

• Corporate responsibility and philanthropic/strategic cause benchmarking among our peers<br />

to assess investment levels and focus of cause programs<br />

• Third-party moderated interviews with <strong>Clorox</strong> employees to understand their perspectives<br />

on our corporate responsibility initiatives, especially cause programs<br />

• Formal development of a corporate responsibility strategy by a cross-functional team, including<br />

Community Relations, Corporate Communications, Eco Office, Global Product Stewardship,<br />

Global Strategic Sourcing, Government Affairs, Human Resources, Legal and Public Relations<br />

Don Knauss (right) accepted the Foreign Policy Association’s<br />

(FPA) Corporate Responsibility Award from Sierra Club Chairman<br />

Carl Pope. <strong>The</strong> FPA recognized <strong>Clorox</strong> for making natural cleaning<br />

mainstream through the launch of the Green Works ® brand, as<br />

well as for our longtime commitment to corporate responsibility.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 7


CR OVERVIEW<br />

Integrating Corporate Responsibility<br />

Into Our Business<br />

<strong>Clorox</strong> Mission<br />

We make everyday life better, every day<br />

Corporate Responsibility Goals<br />

•Contribute to economic profit growth<br />

•Positively impact the perception of our brands and company<br />

•Contribute to employee engagement<br />

•Positively impact millions of families, globally<br />

Strategies Commitments Recent Performance Highlights<br />

Performance<br />

Achieve financial success with<br />

transparency, strong governance and<br />

CR embedded in our operations<br />

Products<br />

Deliver responsible products<br />

made responsibly<br />

People<br />

Promote diversity, opportunity and<br />

respectful treatment for everyone<br />

who touches our business<br />

Planet<br />

Shrink our environmental footprint<br />

while we grow our business<br />

Purpose<br />

Safeguard family well-being,<br />

every day<br />

• Integrate CR into our corporate strategy, with board oversight;<br />

continue to adopt best practices.<br />

• Increase transparency of company policies, practices and<br />

product ingredients.<br />

• Communicate proactively and respond to stakeholder<br />

reports and inquiries regarding CR.<br />

• Continue to strengthen strong enterprise risk management<br />

programs and capability, with board oversight.<br />

• Continue to meet strict science-based safety criteria, while<br />

promoting alternative methods to safety testing.<br />

• Provide best-in-class disinfecting solutions.<br />

• Provide plant-based alternatives to conventional<br />

product offerings.<br />

• Reduce environmental impact of our product offerings.<br />

• Require employee certification of compliance with company<br />

policies on diversity, human rights and labor issues.<br />

• Assign accountability for CR commitments.<br />

• Drive supplier code of conduct, supplier diversity and add<br />

eco criteria to supplier selection.<br />

• Increase global participation in employee resource groups.<br />

• Expand public environmental commitment statements.<br />

• Reduce GHG, energy, water and solid waste in our<br />

manufacturing and distribution footprints.<br />

• Embed eco criteria in core business processes.<br />

• Drive environmental sustainability throughout the workplace.<br />

• Implement a global strategic cause platform focused on<br />

infection prevention.<br />

• Build on <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> Foundation’s focus on K-12<br />

education in underserved communities.<br />

• Enhance engagement and extend impact through employee,<br />

customer and community involvement.<br />

• Delivered strong FY10 financial performance.<br />

• Developed formal CR strategy integrated into<br />

our business.<br />

• Recognized for corporate governance practices.<br />

• Established formal “Ingredients Inside” product ingredient<br />

communication program in the U.S. and Canada.<br />

• Formalized growth platforms addressing infection<br />

prevention and sustainability.<br />

• Purchased Caltech Industries, Inc. to further expand<br />

our business in health care settings.<br />

• Introduced Burt’s Bees ® natural acne care and toothpaste<br />

and Green Works ® natural laundry products.<br />

• Halfway to goal of making sustainability<br />

improvements to 25 percent of product portfolio<br />

by 2013 (versus 2009 baseline).<br />

• Met diversity targets, with U.S. representation of<br />

managers and above rising to 22 percent for minorities<br />

and 40 percent for women.<br />

• Established supplier diversity goal to grow expenditure<br />

to 5 percent by 2015.<br />

• Introduced global supplier code of conduct.<br />

• Developed an environmental sustainability strategy<br />

linked to <strong>Clorox</strong>’s business strategy.<br />

• Since 2007, reduced GHG emissions by 7 percent,<br />

energy use by nearly 5 percent, water use by more than<br />

8 percent and solid waste by 9 percent (per case sold).<br />

• Developed sustainability programs in the workplace,<br />

including establishing eco employee volunteer groups,<br />

switching company cars to hybrids and securing<br />

LEED-EB platinum certification for our corporate office.<br />

• In FY09 and FY10 alone, donated more than $7 million<br />

in cash grants to nonprofits, schools and colleges;<br />

donated more than $16 million worth of products to<br />

nonprofits and disaster relief efforts.<br />

8 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Different Perspectives Inspire Progress<br />

Toward a Common Goal<br />

At <strong>Clorox</strong>, our CEO and a steering committee of senior leaders from various areas of the company oversee<br />

corporate responsibility. While each person brings a unique perspective to shaping CR for <strong>Clorox</strong>, the team<br />

shares the common goal of driving progress against our commitments.<br />

CR OVERVIEW<br />

What is <strong>Clorox</strong>’s<br />

approach to corporate<br />

responsibility<br />

Benno Dorer: SVP–GM, Cleaning Division<br />

It’s having a strategy that goes beyond compliance<br />

and risk mitigation to deliver real value to our<br />

company and to the stakeholders who touch our<br />

business, including shareholders, business partners<br />

and communities. For example, one of our business<br />

growth platforms — infection prevention — leverages<br />

the strength of our disinfecting capabilities to<br />

address public health concerns around seasonal<br />

flu, pandemics and the rising incidence of hospitalacquired<br />

infections. While it’s a business driver<br />

for the company, it has a meaningful social<br />

dimension as well.<br />

Jackie Kane: SVP–HR & Corporate Affairs<br />

Another area in which corporate responsibility<br />

creates value is employee engagement. We hear<br />

time and again that <strong>Clorox</strong> people are proud to<br />

work here because they know we live by our<br />

core value of doing the right thing. For example,<br />

employee volunteers around the world have stepped<br />

up to support our environmental sustainability<br />

efforts. We now have a formal waste reduction<br />

program at our headquarters, and employees at<br />

other <strong>Clorox</strong> locations are conducting “dumpster<br />

dives” to assess how much waste can be diverted<br />

from landfills.<br />

<strong>Clorox</strong>’s corporate responsibility strategy and commitments are governed by our CEO and CR steering committee<br />

made up of members of <strong>Clorox</strong>’s executive committee. <strong>The</strong> <strong>Clorox</strong> board of directors provides oversight.<br />

Left to right: Wayne Delker, senior vice president – chief innovation officer; Laura Stein, senior vice president –<br />

general counsel; Benno Dorer, senior vice president – general manager, cleaning division; Jackie Kane, senior vice<br />

president – human resources and corporate affairs.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 9


CR OVERVIEW<br />

Different Perspectives Inspire Progress Toward a Common Goal<br />

Where have you made<br />

the most significant<br />

progress<br />

Laura Stein: SVP–General Counsel<br />

Having a formalized corporate responsibility<br />

strategy was an important step. We now have<br />

a strategy that is integrated into our business<br />

and a framework to hold us accountable for<br />

our commitments, goals and metrics.<br />

We’ve also received positive feedback on<br />

“Ingredients Inside,” our product ingredient<br />

communication program that addresses consumers’<br />

interest in knowing what goes into the products<br />

they use in and around their homes. We worked<br />

closely with the Sierra Club to take this step and<br />

continue to engage with NGOs, industry associations<br />

and regulatory agencies on how our program,<br />

and the product ingredient communications<br />

efforts of the industry as a whole, can evolve.<br />

Jackie Kane<br />

We’ve made progress on our diversity initiatives.<br />

We exceed the U.S. Census in all categories<br />

and have been recognized for having a strong<br />

representation of women in management. <strong>The</strong><br />

2009 UC Davis Study of California Women<br />

Business Leaders ranked <strong>Clorox</strong> 14th out of<br />

400 companies in California for having women<br />

in director and executive positions. In addition<br />

to employee-related diversity initiatives, we’re<br />

accelerating our efforts in multicultural marketing<br />

and product development to address the unique<br />

needs of different consumer segments.<br />

How are you addressing<br />

consumer interest in<br />

sustainable products<br />

Wayne Delker: SVP–Chief Innovation Officer<br />

Driving growth behind sustainable products<br />

is a top priority. We continue to invest in our<br />

natural platform with the Green Works ® and<br />

Burt’s Bees ® brands, and our increased focus on<br />

innovation is also looking at sustainability in<br />

terms of product development and packaging.<br />

For example, by concentrating our formula for<br />

<strong>Clorox</strong> 2 ® stain fighter and color booster we are<br />

reducing the amount of water used in manufacturing<br />

this product by 54 percent, resin needed<br />

for bottles by 36 percent and diesel for shipping<br />

by 160 million gallons per year. We have a public<br />

goal to make sustainability improvements to<br />

25 percent of our products by 2013 (versus base<br />

year 2009).<br />

What’s your response to<br />

concerns about cleaning<br />

product safety And how<br />

do you reconcile having a<br />

portfolio that includes bleach<br />

and natural products<br />

Wayne Delker<br />

Product safety is a top priority at <strong>Clorox</strong>. For<br />

years we have applied sound scientific evidence<br />

to our product evaluation processes. Before we<br />

bring any product to market, our Global Product<br />

Stewardship organization evaluates a product’s<br />

safety, quality and regulatory compliance, looking<br />

at human and environmental health. We take<br />

great care in choosing ingredients for our products.<br />

For example, we have guidelines against the use<br />

of such ingredients as alkylphenol (APs) or<br />

alkylphenol ethoxylates (APEs), phthalates and<br />

synthetic musks.<br />

We developed Green Works ® products<br />

because we recognize a growing number of<br />

consumers prefer naturally derived cleaning<br />

products and we wanted to give them a choice.<br />

We are proud of the consumer response to the<br />

Green Works ® line and its position as the No.<br />

1 natural home care brand. We are also proud<br />

of the role bleach has played in public health<br />

for generations. It has a history of use in places<br />

where killing germs is critical: hospitals, nursing<br />

homes, child care centers, schools, restaurants<br />

and more. <strong>Clorox</strong> ® regular bleach remains one<br />

of the most affordable and effective disinfectants<br />

available worldwide.<br />

What is your biggest<br />

challenge for corporate<br />

responsibility in the<br />

future<br />

10 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR<br />

Laura Stein<br />

One of our challenges is that we are establishing<br />

a comprehensive data collection system for CR –<br />

particularly in our international locations. As<br />

we continue to grow our presence outside the<br />

U.S., we will need to continue to build these<br />

processes so that we can expand programs like<br />

product ingredient communication and our<br />

overall CR reporting.<br />

Benno Dorer<br />

Another challenge we’re exploring is expanding<br />

our infection prevention platform into our social<br />

cause efforts. We have a long history of donating<br />

bleach and other disinfecting products to help<br />

with disaster-relief efforts globally, particularly for<br />

sanitizing water. In addition to being there when<br />

disaster strikes, I’d like to see us working more<br />

closely with public health agencies, schools and<br />

NGOs to help support prevention of infection on<br />

a global level. This way our social cause focus for<br />

the company will be more strategically linked to<br />

our core strengths as a business.


<strong>Clorox</strong> <strong>The</strong> <strong>Company</strong><br />

At-A-Glance Fiscal Year Ending June 30, 2010<br />

PERFORMANCE<br />

Sales By Category<br />

International<br />

21%<br />

16%<br />

Home Care<br />

K<br />

Natural Personal Care<br />

3%<br />

10%<br />

Laundry<br />

J<br />

Water Filtration<br />

Dressings & Sauces<br />

4%<br />

9%<br />

4%<br />

3%<br />

Auto<br />

Away From Home<br />

I<br />

H<br />

Cat Litter<br />

7%<br />

10%<br />

13%<br />

Bags & Wraps<br />

G<br />

F<br />

Charcoal<br />

Sales<br />

$5.53 billion<br />

Employees 8,300<br />

Manufacturing Plants 41<br />

Markets Served 100+<br />

Please see <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> 2010 Annual Report at www.<strong>The</strong><strong>Clorox</strong><strong>Company</strong>.com for more information on our company’s performance and goals.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 11


PERFORMANCE<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong>: At-A-Glance<br />

3-Year Total Shareholder Return: Since Inception of Centennial Strategy<br />

10%<br />

0%<br />

<strong>Clorox</strong>: 10%<br />

Peers: 4%<br />

-10%<br />

-20%<br />

-30%<br />

S&P 500: -27%<br />

-40%<br />

2007 2008<br />

2009<br />

2010<br />

June 30, 2007, through June 30, 2010 (assumes reinvestment of quarterly dividends).<br />

Peer companies: An average of 18 consumer packaged goods companies, excluding <strong>Clorox</strong>,<br />

used for financial benchmarking purposes.<br />

$4.85<br />

Net Sales<br />

(in billions)<br />

$5.27<br />

$5.45<br />

$5.53<br />

$709<br />

Net Cash Provided<br />

by Operations<br />

(in millions)<br />

$730<br />

$738<br />

$819<br />

$501<br />

Net Earnings<br />

(in millions)<br />

$461<br />

$537<br />

$603<br />

2007 2008 2009 2010<br />

2007 2008 2009 2010<br />

2007 2008 2009 2010<br />

$3.24<br />

Diluted Net<br />

Earnings Per Share<br />

(in dollars)<br />

$3.23<br />

$3.79<br />

$4.24<br />

2007 2008 2009 2010<br />

27%<br />

ROIC 1 Economic Profit 2<br />

(in millions)<br />

$433<br />

21%<br />

22%<br />

23%<br />

2007 2008 2009 2010<br />

$379<br />

$363<br />

$376<br />

2007 2008 2009 2010<br />

1. Return on invested capital (ROIC) is a non-GAAP measure<br />

that is calculated as earnings before income taxes, excluding<br />

restructuring and asset impairment costs and interest expense;<br />

computed on an after-tax basis as a percentage of adjusted<br />

average invested capital. See reconciliation of ROIC in Exhibit<br />

99.2 on Form 8-K filed on August 3, 2010, for the fiscal year<br />

ended June 30, 2010.<br />

2. Economic profit (EP) is used by management to evaluate<br />

business performance. EP represents earnings from continuing<br />

operations before income taxes, noncash restructuring-related<br />

and asset impairment costs, and interest expense, after tax,<br />

less capital charge. See reconciliation of EP in Exhibit 99.3 of<br />

the company’s Annual Report on Form 10-K for the fiscal year<br />

ended June 30, 2010.<br />

12 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Centennial Strategy Guides<br />

<strong>Clorox</strong> Toward ‘True North’<br />

At <strong>Clorox</strong>, our “True North,” a shared destination for all our people, is about delivering double-digit<br />

average annual economic profit growth by the company’s 100th anniversary in 2013. We’ve developed<br />

four key strategies to get there:<br />

PERFORMANCE<br />

1. Be a high-performance organization of enthusiastic owners<br />

Our No. 1 strategy is about <strong>Clorox</strong> people. We have great people. We know that if everyone is<br />

engaged on an emotional and rational level and working well together, we can accomplish just<br />

about anything. It starts by following some of the principles of high-performance teams. We are<br />

committed to the business and to each other, owning our individual performance, as well as the<br />

team as a whole. We also ask employees to think of the company as his or her own business.<br />

How would they feel if their name were on the sign in front of the building This is our <strong>Clorox</strong>.<br />

Everyone is asked to speak up and contribute if they want their company to succeed.<br />

2. Win with superior capabilities in Desire, Decide and Delight (3Ds)<br />

<strong>The</strong>re are three “moments of truth” when a consumer can choose our product; we call these the 3Ds:<br />

Desire, Decide and Delight.<br />

Desire: Creating demand for our product<br />

Our focus on consumer insights helps us understand what consumers really care about in their<br />

everyday lives. This helps ensure that the ways we “talk” to consumers about our products —<br />

in print, on TV, on the web, in the store – address their needs.<br />

Decide: Making the choice at the store shelf<br />

Our success in the store, where most purchase decisions<br />

are made, is driven by our strong partnerships with retail<br />

customers and in-store communications that help address<br />

shoppers’ needs. Can shoppers find the product category<br />

Does our brand stand out from others Which product<br />

has the best combination of quality and price Our<br />

expertise in consumer insights and category advisory<br />

services help optimize the shopper experience with plans<br />

for assortment, merchandising, pricing and shelving.<br />

Delight: Building brands consumers love<br />

Once the product is in the home, there’s still a critical test:<br />

how does it perform Our goal is to have products that are<br />

consistently highly rated and exceed the consumer’s expectations.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 13


PERFORMANCE<br />

Four Key Strategies<br />

3. Accelerate growth both in and beyond the core<br />

We’re constantly looking to enhance the performance of our existing brands. For example, we can<br />

branch into new categories, where our familiar brands can carry a lot of weight. We can increase<br />

or extend into new channels where we sell our products, such as selling to hospitals and other<br />

healthcare facilities. We can also expand the range of products we offer in the countries where<br />

we do business.<br />

We’re also strategically tapping into consumer “megatrends” to guide us in our investments in<br />

innovation or acquisition of new businesses where we see potential for growth.<br />

Megatrends Point the Way to<br />

More Growth<br />

We’re leveraging four consumer megatrends<br />

that drive key areas of our corporate strategy,<br />

guiding our investments to drive growth of<br />

our business, including product innovation,<br />

marketing communications and retail activities.<br />

Health and Wellness Addressing the global<br />

need for healthy homes and public places,<br />

including schools and hospitals<br />

Sustainability Focusing on consumers’<br />

personal environments — what’s in them,<br />

on them and around them<br />

Multicultural Addressing the unique needs<br />

of multicultural consumers<br />

4. Relentlessly drive out waste<br />

Our focus on reducing waste helps drive<br />

real competitive advantage for <strong>Clorox</strong>. For<br />

example, our ability to save money helps<br />

to offset inflation and capture savings that<br />

can be used to invest in growth. Becoming<br />

more efficient in how we do business helps<br />

us save time, money and resources that<br />

can be redeployed to work that drives the<br />

highest value for the company.<br />

<strong>Clorox</strong> ranked No. 7 among our top<br />

strategic partners in the most recent<br />

Cannondale Associates PoweRanking ® *<br />

survey, which asks retailers to rank<br />

more than 100 manufacturers on a<br />

number of dimensions.<br />

Affordability/Value Delivering high value to<br />

consumers through a balance of product<br />

performance and price<br />

*PoweRanking ® is a registered trademark of Cannondale Associates.<br />

14 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Understanding, Sharing and Taking<br />

Action From Stakeholder Engagement<br />

It’s important that we understand the perceptions, concerns and priorities of everyone that touches our business.<br />

That’s why we actively engage with a variety of stakeholders through open dialogue or through partnerships<br />

and board and committee memberships. Stakeholder engagement enables us to listen to, learn from and<br />

exchange ideas with people on topics that impact our business and industry, as well as on global issues such<br />

as public health and sustainability.<br />

PERFORMANCE<br />

We also engage with industry trade associations and all levels of government around the world on policy,<br />

legislation, regulatory and related matters that have the greatest impact on our business.<br />

We engage with our stakeholders in many<br />

different ways. For example:<br />

• Shareholders: We hold annual meetings during<br />

which we inform our shareholders about our<br />

company strategy, financial performance and<br />

business growth objectives. We also report our<br />

performance through such communications as<br />

our quarterly conference calls and annual report.<br />

• Employees: We conduct regular employee<br />

engagement surveys where we look at engagement<br />

in two ways: rational and emotional. In other<br />

words, we ask employees if both their heads and<br />

hearts are in the game. We believe a person<br />

who is engaged emotionally and rationally will<br />

be better able and willing to perform to their<br />

potential. We also conduct quarterly, global<br />

“town hall” meetings where we share important<br />

company information and invite employees to<br />

ask questions or share thoughts with our CEO<br />

and other executives.<br />

• Consumers: We talk to consumers through in-home<br />

studies, focus groups and surveys to better understand<br />

how they use our products so we can<br />

continue to deliver high-quality products that<br />

address their needs.<br />

• Public Health Community: We are active<br />

participants in a number of public health<br />

organizations because we believe our disinfecting<br />

capabilities can help make a positive difference in<br />

issues such as infection control.<br />

• NGOs: We meet with NGOs on a variety of issues,<br />

including sustainability and product safety.<br />

• Communities: We make a positive impact on our<br />

communities through <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong><br />

Foundation’s support of K-12 education and through<br />

employee volunteerism. We also respond to our<br />

communities in times of natural disaster by providing<br />

financial aid and donating trash bags, bleach and<br />

other disinfecting products to help with clean-up<br />

efforts and sanitization needs.<br />

<strong>Clorox</strong> is also a member of organizations that<br />

are related to our business and priority issues.<br />

Public Health: Association for Professionals in<br />

Infection Control and Epidemiology, Inc (APIC),<br />

Society for Healthcare Epidemiology of America<br />

(SHEA), American Society for Healthcare and<br />

Environmental Services<br />

Industry: Consumer Specialty Products Association,<br />

American Cleaning Institute, Grocery Manufacturers<br />

Association<br />

Environmental Sustainability: U.S. Environmental<br />

Protection Agency Climate Leaders, Design for<br />

Environment and Waste Wise and Smart Way Shipper<br />

Programs; Sustainable Packaging Coalition; Natural<br />

Products Association<br />

Diversity/Inclusion: Executive Leadership Council,<br />

Hispanic Advisory Council, Minority Corporate Counsel<br />

Association, Out & Equal Workplace Advocates,<br />

National Minority Supplier Development Council<br />

Community: Boston College Center for Corporate<br />

Citizenship, Bay Area Corporate Volunteer Council,<br />

Entrepreneur’s Foundation, Northern California<br />

Grantmakers<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 15


PERFORMANCE<br />

Governance and Ethics<br />

World-Class Governance<br />

<strong>Clorox</strong> maintains rigorous corporate governance practices and internal controls with oversight by our board<br />

of directors, chairman and chief executive officer, chief financial officer, general counsel and the other<br />

members of the company’s executive committee. <strong>The</strong> board’s responsibility includes overseeing management’s<br />

operations of the company’s business, monitoring the effectiveness of management policies and decisions,<br />

including the development and execution of its strategies, risk management activities and providing for<br />

management succession.<br />

<strong>The</strong> quality of our corporate governance is rated stronger than 94.3 percent of S&P 500 companies and<br />

98.5 percent of household and personal products companies according to RiskMetrics Group, which has<br />

rated more than 7,400 companies worldwide on corporate governance practices.*<br />

Our board of directors is composed of individuals<br />

who, on the basis of their knowledge and experience,<br />

make valuable contributions to the overall conduct<br />

of the business. <strong>The</strong> nominating and governance<br />

committee is responsible for developing and recommending<br />

board membership criteria to the board for<br />

approval and periodically reviewing these criteria.<br />

Board candidates, including incumbent directors,<br />

are considered based upon various criteria, including<br />

their broad-based business skills and experiences,<br />

prominence and reputation in their professions,<br />

global business and social perspective, concern<br />

for the long-term interests of the stockholders, and<br />

personal integrity and judgment. In addition to the<br />

board and committees’ conducting self evaluations<br />

on an annual basis, the nominating and governance<br />

committee reviews general qualifications and expertise<br />

of each board member on at least an annual basis.<br />

Committees of the Board of Directors<br />

Executive Committee acts for the board in certain<br />

matters when the full board cannot be convened.<br />

Audit Committee oversees the integrity of<br />

financial statements, the company’s accounting<br />

and financial controls, including independent and<br />

internal auditors.<br />

Finance Committee oversees and makes<br />

recommendations to the board with respect to<br />

the company’s major financial policies and actions,<br />

including capital structure and borrowing.<br />

Management Development and Compensation<br />

Committee oversees management development<br />

and succession planning processes and approves<br />

compensation for executive management and various<br />

benefit plans for the company as a whole.<br />

Nominating and Governance Committee oversees<br />

the company’s corporate governance practices, director<br />

nominations and board evaluation. Also oversees the<br />

company’s compliance with certain legal and regulatory<br />

requirements and discusses with management the<br />

status of pending litigation, environmental issues<br />

and other areas of oversight as may be appropriate.<br />

Executive Compensation<br />

<strong>The</strong> board of directors’ management and compensation<br />

committee, composed entirely of independent<br />

directors as required by the NYSE listing standards<br />

and consistent with SEC rule 16b-3, reviews the design<br />

and implementation of our executive management<br />

program. <strong>The</strong> committee applies a rigorous and<br />

balanced approach to executive compensation,<br />

ensuring that compensation is tied to current and<br />

long-term company performance; is sufficient to<br />

attract and retain high-caliber, experienced leaders;<br />

aligns the interests of our executive officers with<br />

the interests of our stockholders; and is financially<br />

efficient, resulting in a reasonable level of costs<br />

that are supported by performance.<br />

* RiskMetrics, December 2009<br />

16 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Our stakeholders are welcome to communicate<br />

directly to an individual board member, a board<br />

committee or to the board of directors as a whole.*<br />

Additional details on <strong>Clorox</strong>’s board of directors, including<br />

topics such as qualifications, performance evaluation<br />

and how we address potential conflicts of interest can<br />

be found at: www.<strong>Clorox</strong>CSR.com/guidelines.<br />

Doing the Right Thing<br />

<strong>Clorox</strong>’s code of conduct establishes the company’s<br />

ethical and legal standards of behavior and business<br />

practices applicable to all our directors, executives,<br />

employees and contractors around the world. We<br />

require all <strong>Clorox</strong> board members, employees, as<br />

well as contractors, to undergo training and certify<br />

compliance with our code. Covering such topics as<br />

environmental safety and compliance, human<br />

rights, workplace behavior, antidiscrimination,<br />

harassment prevention, bribery and anticorruption,<br />

and political contributions, our code embodies<br />

<strong>Clorox</strong>’s commitment to doing the right thing<br />

every day. <strong>Clorox</strong> provides code of conduct training<br />

approximately every 18 months on a rolling basis.<br />

Training is conducted in <strong>English</strong>, Spanish and<br />

Chinese. In fiscal year 2010, 81 percent of all<br />

<strong>Clorox</strong> employees completed compliance training,<br />

which includes our code of conduct.<br />

<strong>Clorox</strong> has global compliance hotlines which allow<br />

our employees to anonymously raise questions or<br />

concerns or report misconduct. We protect any<br />

employee who reports misconduct in good faith.<br />

<strong>Clorox</strong>’s code of conduct can be found online at<br />

www.<strong>Clorox</strong>CSR.com/conduct.<br />

Working With Responsible Partners<br />

Our commitment to ethical business practices and<br />

treating people with dignity, respect and equal<br />

opportunity extends to our business partners.<br />

<strong>Clorox</strong>’s supplier code of conduct addresses businesspractice<br />

standards of our third-party suppliers, their<br />

parent companies and affiliates. Our code, based on<br />

the International Labour Organization Core Labor<br />

Conventions, outlines our expectations<br />

that suppliers around the world share our<br />

commitments in the areas of human rights<br />

and labor, health and safety, the environment,<br />

and business conduct and ethics. <strong>Clorox</strong>’s standard<br />

supplier agreements require certification of material<br />

compliance with the supplier code of conduct, including<br />

our human rights clause that prohibits such actions as<br />

harassment or inhumane treatment, discrimination<br />

and involuntary or child labor. <strong>Clorox</strong>’s global<br />

supplier code of conduct is available in <strong>English</strong>,<br />

Spanish and Chinese.<br />

<strong>Clorox</strong>’s supplier code of conduct can be found<br />

online at www.<strong>Clorox</strong>CSR.com/business-partners.<br />

*Correspondence to our board of directors should be sent to our<br />

headquarters address: <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong>, c/o Secretary,<br />

1221 Broadway, Oakland, CA 94612-1888.<br />

OUR VALUES<br />

At <strong>Clorox</strong>, our strong corporate values not only guide<br />

us in achieving widespread success, but also are the<br />

foundation of everything we do.<br />

Do the Right Thing<br />

<strong>The</strong> long-term health of our company depends on our integrity.<br />

At <strong>Clorox</strong>, we have a tradition of honesty, fair dealing and ethical<br />

practices. We strive to use facts to determine the right thing to<br />

do, and communicate openly about our choices.<br />

Stretch for Results<br />

Our success is measured by our ability to consistently win<br />

in the marketplace by exceeding the expectations of our<br />

consumers, customers, shareholders and each other.<br />

Take Personal Ownership<br />

Progress is not only driven by people who take personal<br />

ownership of delivering results, but by making the process<br />

to achieve these results as quickly, simply and effectively<br />

as possible. Each of us has a role in helping to ensure we<br />

deliver excellent results and achieve our goals.<br />

Work Together to Win<br />

Our success depends on productive collaboration among <strong>Clorox</strong><br />

people, between our company and our business partners, and<br />

among our company and our communities. While individual<br />

ownership and contributions make a difference, teamwork is<br />

essential to achieving even greater results.<br />

PERFORMANCE<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 17


Be<br />

Trusted<br />

Products<br />

Responsible products<br />

made responsibly<br />

18 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Our Products Delight Consumers<br />

PRODUCTS<br />

Trust is the foundation of our business and the basis for every relationship formed between our brands<br />

and consumers. All our products must be made responsibly and deliver on our promise of getting the job<br />

done. We have been making high-quality products for close to 100 years with that in mind. Whether<br />

you’re using <strong>Clorox</strong> ® regular bleach, Kingsford ® charcoal, Fresh Step ® cat litter or Green Works ® products,<br />

you can be sure that our commitment to quality, safety and efficacy go into everything we do. Our retail<br />

partners and consumers should never expect anything less. By upholding this trust, we fulfill our mission<br />

to make everyday life better, every day.<br />

For more than a decade, the American Customer Satisfaction Index has ranked <strong>Clorox</strong><br />

among the top of our competitor group. This index, based on an economic model from the<br />

University of Michigan, measures the quality of our products as experienced by consumers<br />

and retail customers.<br />

In addition, nearly 90 percent of our global brands rank as the No. 1 or No. 2 market-share<br />

leaders in their respective categories, further underscoring the value consumers place on<br />

our brands.<br />

Understanding What Consumers Want<br />

Our ability to satisfy consumers and deliver true value is largely a result of the significant<br />

investment we’ve made in getting to know them at a deep and meaningful level. Through<br />

the work of our Global Insights organization, we gain a 360-degree view of the consumer,<br />

learning about her relationships with our brands, which product qualities really matter to<br />

her and how she shops for our products. <strong>The</strong>se insights serve as the foundation of our<br />

Desire, Decide and Delight strategies, enabling us to address consumers effectively in<br />

marketing communications, work with our retail partners on enriching the consumer<br />

experience in store and develop products that consumers will love.<br />

Anticipating Future Needs<br />

A strong culture of innovation — one in which new thinking leads to new product solutions<br />

that offer improved performance, convenience and affordability to consumers — is another<br />

critical success factor in our ability to meet customer expectations. In recent years, we have<br />

accelerated our efforts behind innovation, particularly in the infection prevention and<br />

wellness and sustainability arenas.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 19


PRODUCTS<br />

Our Products Delight Consumers<br />

We are increasing the pace of innovation through a more open and transparent process that<br />

extends beyond our own teams of scientists and marketers. <strong>Clorox</strong>Connects, for example,<br />

is an online resource through which individuals can share their own inventions. And<br />

partnerships with Edison Nation and Evergreen IP, companies that facilitate external idea<br />

solicitation and evaluation, are also helping to bring in more new ideas. For more information<br />

visit www.thecloroxcompany.com/innovation.<br />

Our efforts to accelerate innovation are paying off. We are sustaining annual growth from new<br />

products in the range of 2 percent to 3 percent of total company sales. We’re meeting our<br />

benchmarks for the percent of sales from products that have what we call “60/40” product<br />

superiority, the ratio by which we measure consumer preference of our products against<br />

competing products. Our 60/40 performance has grown from 7 percent in fiscal 2004 to<br />

47 percent in fiscal 2010, which puts us on a path to exceed our goal of greater than<br />

50 percent by 2013.<br />

Marketing Our Brands Responsibly<br />

We are committed to marketing our brands in a responsible and truthful manner, adhering<br />

to the laws and guidelines of the Federal Trade Commission and other relevant governing<br />

bodies. We strive to communicate the benefits, performance and attributes of our products<br />

accurately and directly, with claims that are substantiated. It is also our policy to create and<br />

purchase advertising in such a way as to reach the designated target audience with maximum<br />

efficiency, using advertisements and media that are in keeping and consistent with the character<br />

and the values of our company. Our marketing communications avoid situations that exploit<br />

race, religion, national origin, sexual preference, overt sex or gratuitous violence.<br />

20 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


THE BLEACH CYCLE<br />

PRODUCTS<br />

SALT<br />

MUNICIPAL<br />

TREATMENT<br />

SEPTIC TANK<br />

BLEACH<br />

MANUFACTURE<br />

PRODUCT USE<br />

SALT of the Earth<br />

Bleach is an essential product for whitening laundry, cleaning homes and<br />

disinfecting household and commercial surfaces. It sanitizes household items<br />

such as kids’ toys, baby bottles and pet bowls. You can even use bleach to keep<br />

cut flowers fresher longer. Most important, bleach continues to play a vital role<br />

in protecting public health — it is one of the most effective disinfectants for<br />

killing germs that can cause life-threatening infections such as Clostridium<br />

difficile (C. diff), methicillin-resistant Staphylococcus aureus (MRSA) and the<br />

flu virus, including H1N1 influenza.<br />

<strong>The</strong>re are many misperceptions about bleach, possibly due to the misnomer<br />

“chlorine bleach.” <strong>Clorox</strong> ® regular bleach, in fact, does not contain free chlorine.<br />

Our regular household bleach is made up of a 6.0 percent simple solution<br />

of sodium hypochlorite (oxygenated salt) and water. Upon use as a laundry<br />

additive or disinfectant, 95 to 98 percent of bleach rapidly breaks down into<br />

salt and water. Municipal wastewater treatment or septic systems effectively<br />

treat the remaining 2 percent to 5 percent of by-products.<br />

Household bleach does not contaminate water by producing dioxins. In addition,<br />

the European Commission’s Scientific Committee on Health and Environmental<br />

Risks conducted a study on sodium hypochlorite that assessed all foreseeable<br />

scenarios in which trihalomethanes could be formed. <strong>The</strong>se scenarios showed<br />

no significant adverse environmental impacts involving sodium hypochlorite*.<br />

Studies also have shown that there is no exposure to trihalomethanes in quantities<br />

above even the toughest standards such as California Proposition 65 Safe Harbor<br />

levels as a result of using household bleach.<br />

For nearly 100 years, <strong>Clorox</strong> ® regular bleach has been a staple in helping to<br />

keep whites white and helping to rid our homes of germs that can cause illness.<br />

Given its many practical household uses and its global disinfecting applications,<br />

we are confident that <strong>Clorox</strong> ® regular bleach will continue to be a dependable,<br />

salt-of-the-earth product for years to come. Visit www.FactsAboutBleach.com<br />

to learn more.<br />

<strong>The</strong> Power of Bleach<br />

Anyone who has ever witnessed the power of bleach<br />

to transform laundry from soiled white to bright, clean<br />

white might be surprised to find that it is simply a matter<br />

of salt and water at work.<br />

<strong>Clorox</strong> ® regular bleach traces its origins to the<br />

saltwater ponds of San Francisco Bay early in the 20th<br />

century. Using the abundant brine available in the<br />

ponds, company inventors ran an electrical current<br />

through a saltwater-based compound to produce<br />

sodium hypochlorite bleach. <strong>The</strong> resulting product<br />

was sold to industrial businesses for use as a<br />

disinfectant. Soon, a less concentrated version<br />

became a household cleaning staple.<br />

During the past century, liquid bleach has<br />

performed some very important tasks. In 1969, the<br />

Apollo space capsule was disinfected with bleach<br />

upon its return to Earth. During World War I – in the<br />

days before penicillin – the lives of some wounded<br />

soldiers were saved by the antibacterial properties<br />

of bleach. During World War II, bleach was used again<br />

to destroy bacteria. Today, bleach continues to be<br />

used to purify water and help control contamination<br />

in times of emergency, such as natural disasters.<br />

Transitioning US Operations<br />

From Chlorine to High-Strength<br />

Bleach<br />

While <strong>Clorox</strong> ® bleach<br />

does not contain free<br />

chlorine, chlorine has<br />

been used as a raw<br />

material in household<br />

bleach manufacturing.<br />

In 2009, we began<br />

transitioning our U.S.<br />

bleach manufacturing<br />

processes to the use of high-strength bleach instead<br />

of chlorine. This change helps us to better ensure<br />

the supply of raw materials and provides another<br />

layer to our industry-leading security practices.<br />

*European Union Risk Assessment Report: Sodium Hypochlorite, November 2007.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 21


PRODUCTS<br />

Infection Prevention:<br />

Our Heritage. Our Future.<br />

It is seemingly harder than ever to stay healthy. <strong>The</strong> seasonal flu, emergence of antibiotic-resistant<br />

superbugs, infectious diseases such as severe acute respiratory syndrome (SARS) and H1N1<br />

influenza underscore global health threats and the potential for pandemic outbreaks. We are<br />

reminded of the important role disease prevention can play in public health management.<br />

In order to prevent disease, however, it is essential to understand how it spreads. <strong>The</strong> fact<br />

is that 80 percent of germs are spread by touch.* Consider that a person can touch up to<br />

300 surfaces in 30 minutes alone and you begin to understand the challenge of stopping<br />

the spread of infection.<br />

Of course, germs are not homebound organisms. <strong>The</strong> threat they pose in health care settings,<br />

in particular, is grave. Hospital-acquired infections strike one in 10 patients, are linked to<br />

99,000 deaths annually in the U.S. and cost an incremental $10 billion in health care costs. †<br />

An aging population is expected to add to this problem.<br />

* Phillip M. Tierno Jr., Ph.D., in his book, <strong>The</strong> Secret Life of Germs (November 2001).<br />

† U.S. Centers for Disease Control: <strong>The</strong> direct medical costs of healthcare-associated infections in U.S. hospitals and the benefits of prevention (2009).<br />

22 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Infection Prevention<br />

PRODUCTS<br />

Clearly, surface disinfection is essential to preventing<br />

the spread of infection. Given our strong heritage in<br />

manufacturing best-in-class disinfecting products,<br />

<strong>Clorox</strong> has a compelling value proposition to put<br />

forth in this cause.<br />

We believe our disinfecting products and their<br />

effectiveness at killing staph, salmonella and E. coli,<br />

influenza viruses, rhinovirus (one of the causes of the<br />

common cold) and numerous other harmful germs<br />

give us a unique responsibility. <strong>The</strong> swift response of<br />

<strong>Clorox</strong> during the H1N1 pandemic of 2009 is a good<br />

example of the role we can assume in times of public<br />

health crisis. During this time, we:<br />

• Worked 24/7 to satisfy demand in Mexico<br />

for disinfecting wipes, which spiked 30 times<br />

higher than normal during the initial outbreak<br />

• Distributed, in partnership with the National<br />

Education Association, canisters of <strong>Clorox</strong> ®<br />

disinfecting wipes to 100,000 U.S. teachers<br />

in four days<br />

• Enhanced www.<strong>Clorox</strong>.com with a new section<br />

that provided tips for preventing the spread<br />

of H1N1<br />

• Created educational materials for our customers<br />

to distribute to shoppers in their stores<br />

• Partnered with the American Red Cross to develop<br />

public service announcements about flu preparedness.<br />

Insights gained from this experience, as well as the more<br />

predictable seasonal flu outbreaks, reinforce the need for<br />

infection prevention. In a world that becomes more closely<br />

connected every day, there is little doubt that infection<br />

control will be an ongoing global issue well into the future.<br />

<strong>Clorox</strong> and Basketball Star Grant Hill<br />

Team Up to Educate About MRSA<br />

Of all the “superbugs”– those germs that have developed<br />

immunity to a wide number of antibiotics – methicillinresistant<br />

Staphylococcus aureus (MRSA) is one of the<br />

most well known. In 2003, Grant Hill developed an MRSA<br />

infection on his ankle and grew seriously ill before making<br />

a full recovery six months later.<br />

Since 2008, we have been partnering with Grant on<br />

the STOP MRSA Now campaign to increase information<br />

about the illness through coalition-building activities,<br />

public service announcements and an informative website.<br />

<strong>The</strong> campaign also provides practical steps people can<br />

take to prevent the spread of MRSA, such as disinfecting<br />

hard surfaces with a bleach solution. Sodium hypochlorite,<br />

the active ingredient in bleach, helps prevent the formation<br />

of superbugs such as MRSA. It completely destroys a<br />

germ’s cellular structure, rendering it unable to mutate<br />

and transform into a superbug.<br />

For more information visit www.stopmrsanow.com.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 23


PRODUCTS<br />

Play It Safe, Every Day<br />

Rigorous Standards Ensure Products Are Safe<br />

Product safety is the cornerstone of trust between our brands and consumers. Indeed, all <strong>Clorox</strong> products<br />

must be assessed for human and environmental health risks before making it onto store shelves and,<br />

ultimately, into consumers’ homes. To this end, we maintain a rigorous, science-based assessment process<br />

to ensure our products are safe when used as directed.<br />

For our cleaning products, this process begins in the<br />

research and development phase where we analyze<br />

each of the materials that go into making a product.<br />

<strong>The</strong> next step is to initiate assessments of environmental<br />

and human safety. Scientists review each ingredient to<br />

determine its environmental impact, while toxicologists<br />

review available data for any health concerns. Also,<br />

as part of this phase, we conduct a global regulatory<br />

review to determine if any countries have limitations<br />

on the ingredients and formulations in question.<br />

Product safety analysis also includes a comprehensive<br />

exposure and risk assessment for all ingredients.<br />

This analysis considers both the short- and long-term<br />

impacts of these materials from incidental and<br />

accidental exposure, as well as the potential routes of<br />

exposure such as skin, eye, ingestion and inhalation.<br />

During the product evaluation process, if we identify<br />

an environmental or health risk that cannot be<br />

sufficiently mitigated, the formulation is halted.<br />

Using nonanimal product safety evaluations is<br />

the norm at <strong>Clorox</strong>. Animal testing is a very rare<br />

exception, used only when required by law or<br />

when all other efforts have been exhausted to<br />

establish a product’s safety profile; such instances<br />

require senior management approval, confirming<br />

there is no other way to proceed. Through our<br />

involvement with John Hopkins Center for<br />

Alternatives to Animal Testing, the Institute for<br />

In Vitro Sciences and other efforts, we actively<br />

support developing alternative testing methods.<br />

Ultimately, we intend all of our product development<br />

processes to satisfy all our evaluations, using only<br />

alternative methods to demonstrate the safety<br />

profile of a product and we’re actively working to<br />

that end.<br />

Once a product leaves a store shelf, we ensure that<br />

product labels clearly provide the information<br />

necessary to safely use, store and dispose of the<br />

product and its packaging. All of our product<br />

labels include clear directions for use, precautionary<br />

Cris Spillet and other R&D employees thoroughly test and<br />

analyze all product ingredients to ensure <strong>Clorox</strong> products<br />

are safe when used as directed.<br />

24 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Play It Safe, Every Day<br />

PRODUCTS<br />

statements, first aid measures and storage and<br />

disposal instructions. Additional safeguards<br />

like child-resistant packaging are included<br />

where appropriate.<br />

Material safety data sheets (MSDS) provide guidance<br />

for and support the application of our products.<br />

Each <strong>Clorox</strong> cleaning and disinfecting product in<br />

the U.S. and Canada has an MSDS that is available<br />

at www.<strong>Clorox</strong>CSR.com/products-safety.<br />

Regulatory Compliance<br />

All products manufactured and distributed are<br />

subject to local, state, federal and other regulations.<br />

To comply, we perform safety tests, meet labeling<br />

guidelines of regulatory agencies and adhere to<br />

applicable regulations for all ingredients and<br />

ingredient formulations used in our products. We<br />

also ensure we meet or exceed local regulatory<br />

requirements in all markets where we operate or<br />

sell our products.<br />

U.S. products classified as antimicrobials, such<br />

as disinfectants or sanitizers, which represent<br />

approximately 27 percent of our U.S. product<br />

portfolio, are subject to registration with the<br />

U.S. Environmental Protection Agency (EPA).<br />

<strong>The</strong>se formulations undergo detailed chemistry,<br />

efficacy and toxicology review by the EPA before<br />

approval for market. <strong>The</strong> EPA strictly governs<br />

the labeling and packaging of these products, with<br />

predetermined criteria based on the nature of<br />

the product.<br />

Strict Fragrance and<br />

Preservative Guidelines<br />

We maintain strict guidelines about the use<br />

of fragrances and preservatives in our formulas.<br />

We require all fragrances purchased from thirdparty<br />

suppliers to comply with Research<br />

Institute for Fragrance Materials (RIFM)<br />

guidelines and recommendations, as well as<br />

International Fragrance Association (IFRA)<br />

standards. RIFM and IFRA define and regularly<br />

update the safe level of use for individual<br />

fragrance ingredients. Fragrances must not<br />

contain Alkyphenols (AP) or Alkylphenol<br />

Ethoxylates (APE), including, but not limited<br />

to, octylphenol ethoxylates and nonylphenol<br />

ethoxylates, musk ambrette, diacetyl, musk<br />

xylol and phthalates.<br />

Preservatives are necessary in some formulas<br />

to prevent the growth of microorganisms such<br />

as bacteria and mold. In such cases, we take<br />

great care in the concentration levels of any<br />

preservative that we use. In the U.S., we limit<br />

preservative levels to those approved by the EPA,<br />

typically in a range that does not exceed 0.1 percent<br />

to 0.2 percent and is well below the threshold<br />

for skin sensitization. Our products do not<br />

contain parabens, a class of preservatives the<br />

scientific community has been scrutinizing for<br />

possible carcinogenicity and estrogenic effects.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 25


PRODUCTS<br />

Leading the Industry in Ingredient Transparency<br />

Today, consumers want to know what goes into the products they use in and around their<br />

homes. We understand and recognize their desire for peace of mind regarding the substances<br />

that may come into contact with their families.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> was the first in the cleaning industry to commit to voluntary ingredient<br />

communication in the U.S. and Canada. We began this process in 2008 with our Green Works ®<br />

line of naturally derived cleaners, which feature ingredients on labels. In 2009, we began listing<br />

the ingredients of our household and<br />

commercial cleaning and disinfecting products on our corporate website. We added auto care<br />

products and an extensive glossary of terms when we updated our “Ingredients Inside” program<br />

as part of our corporate responsibility website launch in February 2010.<br />

Our ingredient communication program has established <strong>Clorox</strong> as an industry leader in this<br />

space. We continue to actively work with industry and regulatory associations on product<br />

ingredient transparency.<br />

To view the list of ingredients for <strong>Clorox</strong>’s cleaning, disinfecting and<br />

auto care products, visit www.<strong>Clorox</strong>CSR.com/ingredients-inside.<br />

26 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Mainstreaming Natural Products<br />

PRODUCTS<br />

As recently as a few years ago, if you wanted to purchase a tube of natural toothpaste or a bottle<br />

of natural glass cleaner, you likely had to find a natural foods store. If you lived in a rural area,<br />

then you might simply have been out of luck.<br />

Today, natural cleaners are no farther away than your local grocery store or mass retailer.<br />

With our Green Works ® line of naturally derived cleaners, we were the first major consumer<br />

packaged goods company to make natural cleaning mainstream.<br />

With an understanding of the consumer issues in natural cleaning and our strong heritage<br />

in manufacturing cleaning products, we decided to pursue the development of a product<br />

line that would address the needs of green-minded consumers. Our goal was to set an entirely<br />

new standard for natural cleaning. Our R&D team was challenged not with reformulating an<br />

existing product, but rather with creating an altogether new line of cleaning products using<br />

naturally derived, plant-based ingredients. <strong>The</strong> cost had to be reasonable and the natural<br />

product had to demonstrate it could really clean.<br />

Today, all Green Works ® products are recognized by the United States Environmental<br />

Protection Agency’s Design for Environment program. And, the Green Works ® brand is<br />

the market leader in the natural home care category.<br />

Though the Green Works ® and Burt’s Bees ® brands each enjoy leading shares in stores today,<br />

their stories are different. <strong>The</strong> Green Works ® brand was created by a <strong>Clorox</strong> team of scientists<br />

and marketers. <strong>The</strong> Burt’s Bees ® was born in the back of a pickup truck in the 1980s, when<br />

founders Roxanne Quimby and Burt Shavitz teamed up to sell her beeswax candles and his<br />

honey at craft fairs in Maine.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 27


PRODUCTS<br />

Mainstreaming Natural Products<br />

Defining<br />

Natural & Green<br />

As one of the world’s leading natural<br />

personal care brands, the Burt’s Bees ®<br />

brand frequently found itself having to<br />

explain what’s natural and what’s not.<br />

Our research prior to the launch of<br />

the Green Works ® line showed similar<br />

confusion among consumers about the<br />

true meaning of “natural” and “green”<br />

product labeling.<br />

<strong>The</strong>se insights prompted us to be extremely<br />

clear that Green Works ® products are derived from<br />

plant-based, readily biodegradeable cleaning ingredients.<br />

Green Works ® products are also recognized<br />

by the Environmental Product Agency’s Design<br />

for the Environment (DfE) program and carry the<br />

DfE logo, which demonstrates that Green Works ®<br />

products meet the program’s stringent criteria for<br />

human and environmental health.<br />

<strong>The</strong> Burt’s Bees ® brand has also addressed the<br />

problem of label confusion by joining with other<br />

natural personal care companies and the Natural<br />

Products Association to develop standards regarding<br />

which ingredients can and cannot be considered<br />

natural, and ultimately, whether or not a product<br />

can be labeled as natural. As part of this process,<br />

the Natural Seal was developed to provide readily<br />

identifiable certification on product packaging for<br />

consumers. In order to meet the seal’s criteria,<br />

products labeled as natural must be:<br />

• Natural: Made of natural ingredients and<br />

manufactured to maintain ingredient purity.<br />

• Safe: Avoid any ingredient that research shows<br />

may have a suspected human health risk.<br />

• Responsible: Use no animal testing in<br />

its development.<br />

• Sustainable: Use biodegradable ingredients and<br />

the most environmentally sensitive packaging.<br />

Fast forward 26 years later and the Burt’s Bees ® brand<br />

is the leading natural personal care brand in the<br />

U.S. and growing rapidly in two dozen countries<br />

around the world. <strong>Clorox</strong> acquired the brand in 2007.<br />

Its original, iconic lip balm product is now joined by<br />

more than 100 other natural products ranging from<br />

skin moisturizers and shampoo to recently introduced<br />

acne solutions and toothpaste.<br />

Like the Green Works ® brand, the growth of the<br />

Burt’s Bees ® brand has tracked closely with consumers’<br />

growing desire to provide safe and natural products for<br />

their families. From its humble origins, Burt’s Bees ®<br />

products can now be purchased in specialty and mass<br />

retail locations in the U.S. and abroad.<br />

Today, the Burt’s Bees ® and Green Works ® brands are<br />

providing natural, effective and appropriately priced<br />

products that are winning with consumers. <strong>The</strong>se brands<br />

are also providing <strong>Clorox</strong> with a strong base from which<br />

to further develop awareness and acceptance of natural<br />

products in traditional retail channels and among<br />

mainstream consumers. From our perspective, this is<br />

the perfection intersection of social responsibility and<br />

business opportunity and we will pursue both with<br />

equal enthusiasm.<br />

28 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Be<br />

Inclusive<br />

People<br />

Promote diversity, opportunity and respectful<br />

treatment for everyone who touches our business<br />

Many employees participate in employee resource groups,<br />

which aim to help develop and retain diverse talent by promoting,<br />

supporting and celebrating diversity. Left to right: Roma McCaig,<br />

Scott Willoughby, Diana Hernandez, Shaunte Mears-Watkins,<br />

Nicole Thomas and La Sondra Irving-Pippins.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 29


A Report Card on Lesbian, Gay, Bisexual and Transgender Equality in Corporate America<br />

PEOPLE<br />

<strong>Clorox</strong> Ranks High in<br />

Diversity Measures<br />

CORPORATE<br />

EQUALITY INDEX<br />

2010<br />

Creating a culture of inclusion is an integral<br />

part of <strong>Clorox</strong>’s history that is evident<br />

throughout the company. Our hiring and<br />

promotion decisions are based on employees’<br />

abilities, and we expect our suppliers to<br />

adhere to those same standards. We strictly<br />

prohibit any discrimination on the basis of race,<br />

religion, national origin, gender, disability,<br />

age, marital status, citizenship status, veteran<br />

status, sexual orientation or status regarding<br />

public assistance.<br />

<strong>Clorox</strong> has earned a 100 percent<br />

rating in the Human Rights<br />

Corporate Equality Index<br />

for four consecutive years.<br />

30 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR<br />

At <strong>Clorox</strong>, diversity is much more than an initiative or a mission statement. Having<br />

a diverse workforce drives competitive advantage for us. We grow and learn more<br />

when we are around people with different perspectives and experiences. And, having<br />

a workforce that mirrors our consumer base allows us to gain better consumer insights<br />

and drive meaningful innovation in the marketplace.<br />

We are proud of the following facts about<br />

our workforce. <strong>The</strong>se numbers exceed<br />

U.S. Census Bureau figures:<br />

• 51 percent of all <strong>Clorox</strong> employees and<br />

40 percent of our managers in the<br />

U.S. are women. In a 2009 UC Davis<br />

Study of California Women Business<br />

Leaders, <strong>Clorox</strong> ranked 14th out of 400<br />

companies for having women in director<br />

and executive officer positions.<br />

• 30 percent of U.S. <strong>Clorox</strong> employees and<br />

22 percent of our U.S. managers are<br />

minorities, including Native American,<br />

Asian, African-American, Hispanic,<br />

Pacific Islander and multiracial.<br />

Expanding Our Diverse<br />

Supplier Network<br />

We are proud of the work we have done to<br />

date to build strong partner relationships with<br />

certified diverse companies. In the last year<br />

we have awarded over $11 million in new<br />

business to certified women- and minorityowned<br />

suppliers. We will continue to look<br />

for new opportunities with diverse companies.<br />

Accordingly, we are executing against a<br />

comprehensive strategy to grow our total<br />

diversity expenditure to 5 percent by 2015.<br />

Diversity and inclusion have been a<br />

fundamental part of <strong>Clorox</strong>’s success, and<br />

we will continually extend and improve our<br />

focus in these areas. Now more than ever,<br />

embracing diversity and inclusion across<br />

all areas is essential to our future.<br />

Walmart Recognizes <strong>Clorox</strong> for Diversity<br />

In January 2010, <strong>Clorox</strong> received the<br />

Visionary Award for Diversity as part<br />

of Walmart’s Martin Luther King Day<br />

celebration. Nominated by Walmart’s<br />

associate resource group, Pride,<br />

the award recognized our efforts to<br />

integrate diversity and inclusion in<br />

the business.


<strong>Clorox</strong> Ranks High in Diversity Measures<br />

PEOPLE<br />

Gender Diversity<br />

U.S.: 51% 40%<br />

Female Employees Female Managers<br />

Global: 35% 38% 23%<br />

Female Employees Female Managers Female Executive<br />

Committee Members<br />

Employees<br />

Caucasian 70 percent<br />

Minorities 30 percent<br />

Asian 14 percent<br />

African-American 9 percent<br />

Hispanic/Latino 6 percent<br />

Other 1 percent<br />

Managers<br />

Caucasian 78 percent<br />

Minorities 22 percent<br />

Asian 11 percent<br />

African-American 5 percent<br />

Hispanic/Latino 5 percent<br />

Other 1 percent<br />

3%<br />

4%<br />

9%<br />

21%<br />

7%<br />

Committed<br />

16%<br />

to High 16%<br />

ALabor Standards<br />

A<br />

We have nearly 8,300 employees around the globe – from scientists to salespeople from production employees<br />

10%<br />

10%<br />

B<br />

B<br />

to packaging professionals. 3%<br />

J<br />

We are committed Jto the well-being of all <strong>Clorox</strong> employees worldwide, and, where<br />

4%<br />

4%<br />

C<br />

C<br />

applicable, working with union representatives who work with approximately 6 percent of our workforce.<br />

13%<br />

G 13%<br />

E<br />

E<br />

We adhere to all applicable 7%<br />

G<br />

labor laws and standards globally and are committed to offering competitive<br />

10%<br />

3%<br />

4%<br />

9%<br />

21%<br />

I<br />

H<br />

10%<br />

K<br />

F<br />

3%<br />

D<br />

I<br />

H<br />

K<br />

compensation and benefits, supporting freedom of association and providing a safe work environment that<br />

prohibits child labor and forced labor. We expect these standards to extend to our business partners.<br />

F<br />

D<br />

U.S. Employee Turnover<br />

Total U.S. Population by Age Group<br />

U.S. Employee Turnover<br />

Total U.S. Population by Gender<br />

<strong>Clorox</strong> Workforce<br />

by the Numbers (2010)<br />

2.7%<br />

6%<br />

2.3%<br />

1.5%<br />

2.0%<br />

3%<br />

4,140<br />

4,099<br />

0.6%<br />

20s<br />

30s 40s 50s<br />

60s<br />

Male<br />

Female<br />

PRODUCTION EMPLOYEES<br />

NONPRODUCTION EMPLOYEES<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 31


PEOPLE<br />

Career Development is a<br />

Strategic Investment<br />

At <strong>Clorox</strong>, we’re committed to developing our people. We focus on building<br />

the capabilities of <strong>Clorox</strong> people from their very first day at our company, as they<br />

evolve in their careers and as they grow into future opportunities. We believe<br />

that people development helps us attract and retain the best and brightest minds<br />

and maintain a competitive edge in the marketplace.<br />

We provide dozens of training programs, as well as internal and external development resources for<br />

employees, managers and executives.<br />

Strong Leaders Share Common Traits<br />

At <strong>Clorox</strong>, we know that strong leadership is key to our success, and we focus on five key<br />

leadership traits. In fact, each year, <strong>Clorox</strong> recognizes outstanding leaders who demonstrate<br />

the <strong>Clorox</strong> leadership traits.<br />

<strong>The</strong> <strong>Clorox</strong> Leadership Traits<br />

Integrity Acting with integrity builds trust. At its foundation, integrity is about telling the truth and having the courage<br />

to stand behind what you believe is right.<br />

Optimism Great people lead from optimism, knowing that a winning attitude creates positive energy and engagement<br />

Curiosity Ideas drive organizations and progress. Leaders can continue to get better at what they do only if they are<br />

truly curious about their craft.<br />

Compassion Compassionate leaders show people that they matter and treat them with respect<br />

Humility Humble leaders are accessible and approachable. <strong>The</strong>y are driven by the greater good, and they understand<br />

the value of others around them.<br />

Learning to Lead<br />

We focus on building great leaders through a number of programs, including the Diamond<br />

Leadership Institute (DLI). DLI aims to help <strong>Clorox</strong> employees realize their leadership potential.<br />

<strong>The</strong> four DLI programs currently offered by the company provide unique cross-functional<br />

experiences designed to develop leadership and management skills at all levels.<br />

All employees have a variety of other training programs at their fingertips. <strong>Clorox</strong> offers dozens of<br />

self-paced, online courses and hands-on, instructor-led courses on topics ranging from our company<br />

strategy and conflict management, to communicating effectively and presenting powerfully, to<br />

ergonomics and understanding financial statements and much more. Worldwide, 85 percent of<br />

<strong>Clorox</strong> employees receive annual training and career development reviews.<br />

We also understand that learning is a lifelong pursuit. Our education assistance program provides<br />

financial aid for employees seeking to continue their education by earning degrees or certificates from<br />

regionally and nationally accredited educational institutions. This program assists our employees in<br />

developing skills and knowledge that contribute to their current job and future career opportunities.<br />

32 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Career Development is a Strategic Investment<br />

PEOPLE<br />

Employees Connect to Strategy<br />

We believe in helping our employees become more<br />

effective in their current roles and preparing them<br />

for continued career growth. That’s why development<br />

planning is an integral part of our performance<br />

management and planning (PMP) process. This is a<br />

highly important process that connects the work of<br />

our employees to the achievement of the organization’s<br />

strategic goals. It helps employees focus on the highest<br />

business priorities and increases productivity, employee<br />

engagement and sense of ownership.<br />

<strong>The</strong> purpose of the PMP process is to:<br />

• Plan work results, review overall performance and<br />

skill proficiency<br />

• Establish and drive performance and development<br />

plans<br />

• Receive feedback and coaching on a regular basis<br />

• Share information on career interests<br />

• Make quality pay decisions<br />

All <strong>Clorox</strong> employees are covered by a predefined and<br />

standardized performance appraisal process, and more than<br />

90 percent of employees receive regular performance reviews.<br />

We believe development is owned jointly by employees<br />

and managers, and all salaried employees are required<br />

to create and maintain individual development plans.<br />

Recognition Encourages<br />

Continued Achievement<br />

<strong>Clorox</strong> fosters a culture of recognition. We encourage<br />

and reward recognition not just from managers, but also<br />

among peers. We understand that we own each other’s<br />

success, and it’s making <strong>Clorox</strong> a better place to work.<br />

<strong>The</strong> Bravo recognition program in the U.S. provides<br />

tools and incentives to encourage peer-to-peer recognition,<br />

manager discretionary recognition and special purpose<br />

recognition programs.<br />

Training by the Numbers<br />

Our nonproduction salaried employees have access<br />

to leadership and skills development training and<br />

education. Each year, the company offers more<br />

than 230 hours of leadership and management<br />

training programs, 160 hours of instructor-led<br />

classroom training and 10 hours of e-learning<br />

courses. Approximately 90 percent of nonproduction<br />

employees participate in the corporate training<br />

programs offered. Specialized function, departmentlevel<br />

and site-specific training is also provided across<br />

our sites.<br />

Our production employees and contract employees<br />

around the world complete skills certification<br />

courses, as well as safety and health training that<br />

aligns with federal, state and local requirements.<br />

We require an average of 20 hours of safety training<br />

for new employees and recurring annual, quarterly<br />

and monthly training on a wide variety of topics as<br />

determined by specific job requirements and tasks.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 33


PEOPLE<br />

Competitive Compensation<br />

Rewards Performance<br />

We understand that our success depends on the people who work hard to build<br />

our brands and execute our plans. That’s why we’ve developed compensation plans to<br />

help us attract and retain great people by providing competitive pay and rewarding<br />

the performance of employees who make significant contributions to our success.<br />

<strong>The</strong>re are three elements of compensation for <strong>Clorox</strong> employees in the U.S.:<br />

1. Base pay Regular wages or salary, including vacation, holiday and sick pay. This is the<br />

fixed portion of an employee’s compensation for performing his or her job.<br />

2. Incentive awards Stock-based awards, an annual cash bonus and sales-added compensation<br />

are variable, offered to eligibile employees based on competitive market practices.<br />

3. Premium pay Overtime wages.<br />

Together, these elements are “eligible pay” upon which retirement contributions are based.<br />

Retirement at <strong>Clorox</strong> encompasses four components:<br />

1. Employee 401(k) contributions<br />

2. 401(k) match<br />

3. Value sharing<br />

4. Pension<br />

Employee Engagement Remains High<br />

Employee engagement is critical to our success. <strong>Clorox</strong> surveys employee levels of engagement annually<br />

to determine what’s working well and what can be improved. Each functional leader receives the<br />

results for his or her organization to help ensure continued engagement across the company.<br />

In 2010, a statistically representative sample of more than 2,200 employees from throughout the<br />

company completed the survey, and 81 percent reported being “engaged” or “highly engaged,” versus<br />

the benchmark* of 80 percent.<br />

*Benchmark represents responses of employees at other organizations who participated in the<br />

same survey at different times. <strong>The</strong> benchmark group includes a variety of companies from<br />

manufacturing, retail, financial services, health care, high technology and telecommunications,<br />

and other types of organizations, such as public utilities and government agencies.<br />

<strong>Clorox</strong> Employee Engagement<br />

81% 81%<br />

75%<br />

2008 2009 2010<br />

34 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Employee Safety and<br />

Wellness Are Top Priorities<br />

Preventing injury and illness at work is an everyday focus — whether someone is in the corporate<br />

office or on the front lines of a manufacturing facility.<br />

PEOPLE<br />

Safety Efforts Achieve Gold Rating<br />

Safety is paramount at <strong>Clorox</strong> and we’re proud of our strong safety record. We strive to maintain<br />

a safe working environment for our employees, and to operate and maintain all facilities and<br />

equipment in a manner that will protect the safety of employees and the public.<br />

<strong>The</strong> Corporate Health, Safety & Environment organization is responsible for assisting line<br />

management in achieving our safety goals. This includes providing support tools and resources,<br />

periodic evaluation of safety and health programs and recommendations for improvement.<br />

Every <strong>Clorox</strong> supervisor in our manufacturing plants and other nonoffice locations is responsible<br />

for providing a work environment with safe operating equipment and safety training for every<br />

employee, as well as ensuring employees comply with safety rules and procedures. Each supervisor<br />

also has the responsibility, through personal example and involvement, to create a climate in which<br />

everyone shares a concern for their own safety and the safety of their fellow workers.<br />

Our safety performance over the past four years has been at world-class levels. In fiscal year 2010,<br />

<strong>Clorox</strong> had an overall recordable injury rate of 0.81*, versus the 1.0 world-class level. We continue<br />

to strive for zero incidents.<br />

<strong>Clorox</strong> completed fiscal year 2010 with zero Occupational Safety and Health Administration (OSHA)<br />

noncompliance fines, due to our ability to complete all regulatory tasks in a timely manner.<br />

*<br />

Safety is measured in accordance with U.S. Bureau of Labor Statistics instructions for calculating recordable injury rates.<br />

Employees like Melanie Hansford<br />

contribute to creating a safe work<br />

environment and enabled <strong>Clorox</strong> to<br />

achieve a world-class safety record.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 35


PEOPLE<br />

Employee Safety and Wellness<br />

Preparing for Tough Times<br />

We have an enterprise-wide crisis management program that includes tools and communications supporting<br />

welfare, emergency response, safety, disaster recovery and business continuity. <strong>The</strong> program includes workgroupbased<br />

plans to guide in resuming disrupted operations, emergency response teams to directly address certain<br />

emergencies, and a corporate emergency operations center to coordinate and allocate resources at time of crisis.<br />

Benefits Support Balanced Lifestyle<br />

<strong>Clorox</strong> offers a broad range of competitive benefits that are available to full-time employees and their dependents,<br />

including children, spouses and same-sex partners. Our comprehensive health care coverage in the U.S. includes:<br />

• Medical • Disability • Short- and long-term disability<br />

• Prescription services • Vision • Life insurance<br />

• Dental • Counseling • Accidental death and dismemberment<br />

Preparing For and Preventing<br />

the Spread of H1N1<br />

In the spring of 2009, a substantial outbreak of the<br />

H1N1 influenza virus hit Mexico, sounding alarm bells<br />

around the world. With flu season approaching and<br />

fears of a wide-spread pandemic growing, we quickly<br />

formed a team to develop internal preparedness and<br />

prevention plans.<br />

We were focused on two key priorities: First, sustaining<br />

the health and wellness of employees; second, developing<br />

contingency plans to minimize impact to the business<br />

in the event of widespread absenteeism.<br />

Cleaning protocols detailing how to disinfect hard<br />

surfaces, hand-washing guides and other wellness<br />

tips and tools were quickly posted throughout our<br />

facilities and office environments. We also developed<br />

a website dedicated to providing educational materials,<br />

prevention practices, H1N1 updates and public health<br />

resources to <strong>Clorox</strong> employees.<br />

We also created detailed contingency plans to prevent<br />

major business impacts, including developing policies<br />

that address time off and pay. However, these plans were<br />

never needed, as the majority of employees remained<br />

healthy and working throughout the duration of the<br />

H1N1 pandemic.<br />

<strong>Clorox</strong>’s wellness programs encourage our employees to<br />

participate in preventative care, such as getting an annual<br />

physical, taking health risk assessments or participating<br />

in smoking cessation programs.<br />

<strong>The</strong>se programs benefit employees by promoting good<br />

health and by driving down overall health care costs.<br />

<strong>Clorox</strong> offers weight-management resources, a quarterly<br />

health newsletter and several wellness incentive programs<br />

to employees, including a $125 incentive program for<br />

getting your annual physical.<br />

In addition to physical health benefits, we offer a variety<br />

of other benefit programs designed to assist employees and<br />

their families through different needs in life. For example,<br />

in the U.S., we offer employees and their immediate family<br />

members confidential counseling services through our<br />

Employee Assistance Program. We also offer adoption<br />

assistance and retirement savings programs.<br />

<strong>Clorox</strong> supports a balanced lifestyle by offering alternate<br />

work schedules where possible, such as job sharing,<br />

telecommuting and flexible hours, which allow workers<br />

to have a say in their schedules. We offer summer hours<br />

to office employees around the world, closing our offices<br />

for business at 12:30 p.m. local time on Fridays to give<br />

employees an early start to their weekends during the<br />

summer season.<br />

36 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Be<br />

Mindful<br />

Planet<br />

Shrink our environmental footprint<br />

while we grow our business<br />

Members of the Eco Network employee volunteer<br />

group — including, from left to right, Dana Ginsburg,<br />

Aron Nussbaum and Suzanne Henricksen — are<br />

helping to drive more sustainable choices like recycling<br />

and composting in the workplace.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 37


PLANET<br />

Accelerating Our Eco Progress<br />

<strong>Clorox</strong> has long been committed to reducing the environmental impact of our operations<br />

and the products we make. In recent years, we have accelerated this effort with the development<br />

of a global environmental sustainability strategy that articulates our objective to make<br />

environmental stewardship core to how we do business.<br />

We are making investments in more sustainable products, reducing the environmental<br />

footprint of our operations, driving toward a more sustainable supply chain, integrating<br />

environmental sustainability into our business processes and culture, and participating in<br />

industry sustainability initiatives.<br />

<strong>Clorox</strong>’s Eco Office, which was established in 2007, is leading this strategy. <strong>The</strong> Eco Office<br />

has been working with all facets of <strong>Clorox</strong>’s operations to advance our goals to reduce<br />

greenhouse gas emissions, save energy and water and decrease solid waste. At the same time,<br />

the Eco Office has engaged with our business teams to improve the overall sustainability<br />

of our products and packaging.<br />

<strong>The</strong> Eco Office, which reports to executive vice president Beth Springer (far right), is dedicated to making environmental stewardship<br />

core to our business. From left to right: Jamie Owen, Scott Mobley, Prashant Kripalani and Bill Morrissey.<br />

38 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Corporate Scorecard Includes Sustainability Goals<br />

Our board of directors’ nominating and governance committee oversees environmental health and<br />

safety compliance at our company. Specific sustainability priorities have been integrated into the<br />

<strong>Clorox</strong> corporate strategy, and environmental goals are part of the <strong>Clorox</strong> corporate scorecard on<br />

which annual executive evaluation and compensation is based.<br />

PLANET<br />

<strong>Clorox</strong>’s enterprise-wide environmental sustainability goals cascade down to our company operations<br />

and strategic business units that have their own specific sustainability commitments. A clear chain of<br />

ownership exists for each aspect of our environmental strategy, ensuring that <strong>Clorox</strong> will be able to<br />

drive sustainability improvements and climate change action throughout the organization over time.<br />

Environmental System Tracks Compliance<br />

Managing environmental compliance and tracking environmental metrics data is a critical part of<br />

implementing our environmental strategy. We use our own environmental management system (ETRACS)<br />

to track, report and ensure environmental compliance across our facilities. <strong>The</strong> system also drives sitespecific<br />

compliance activities and tracks the progress we’re making toward our sustainability goals.<br />

Formal Assessment Gauges Environmental Impact<br />

<strong>Clorox</strong> has developed a sustainability assessment process to better understand and manage the<br />

environmental impact of all our business. <strong>The</strong> assessment process — a joint undertaking by business<br />

unit managers and the Eco Office — examines the environmental impact at each stage of our products’<br />

life cycles; identifies current and emerging stakeholder environmental concerns; and, through the lens<br />

of environmental sustainability, assesses potential cost savings and business growth opportunities,<br />

as well as business risk.<br />

<strong>Clorox</strong>’s Eco Objective<br />

Make environmental sustainability core to how we do business<br />

<strong>Clorox</strong> 2013 Eco Goals<br />

• Generate one-third of growth from environmental sustainability initiatives (versus 2007 baseline)<br />

• Reduce the environmental footprint of our operations for each case sold by 10 to 20 percent<br />

(versus 2007 baseline)<br />

• Make sustainability improvements to 25 percent of our product portfolio (versus 2009 baseline)<br />

• Achieve an environmental stewardship reputation at consumer packaged goods exemplar levels<br />

• Ensure environmental sustainability performance is a major contributor to employee engagement<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 39


PLANET<br />

Transforming to a More<br />

Sustainable Product Portfolio<br />

Selling more than 1 billion products into the marketplace annually, <strong>Clorox</strong>’s greatest opportunity to reduce our<br />

environmental footprint lies within our own product portfolio. From 2005 to 2009 we made sustainability<br />

improvements to a third of our portfolio.<br />

In 2009, we took another look at our product portfolio and set a goal to make sustainability improvements to<br />

25 percent of our products by 2013. We anticipate we will need to make improvements to more than 300 product<br />

items to achieve this goal. We aim to do this through the continued redesign of products and/or their packaging<br />

to reduce or enhance the sustainable nature of the materials used. Today, we are one of only a few consumer<br />

packaged goods companies to have set such a public goal.<br />

Some of our businesses have built sustainability into their core purpose<br />

<strong>The</strong> Burt’s Bees ® brand aims to maximize the<br />

overall well-being of people and the planet<br />

through <strong>The</strong> Greater Good business model.<br />

Green Works ® naturally derived, plant-based<br />

cleaning and laundry products seek to meet<br />

consumers’ growing desire for natural products.<br />

<strong>The</strong> Brita ® water-filtration brand educates<br />

consumers about the opportunity to reduce<br />

waste from disposable plastic water bottles.<br />

Line extensions represent an opportunity for brands to incorporate sustainability enhancements<br />

Kingsford ® competition briquets are made with<br />

100% natural ingredients that make the coals burn<br />

hotter, provides great taste and results in less ash.<br />

Glad ® compostable trash bags are made with<br />

renewable resources for use in municipal<br />

composting programs where available.<br />

Fresh Step ® natural cat litter provides a product<br />

for cat owners who value a natural option.<br />

Improving the sustainability of our core product offerings represents yet another opportunity<br />

<strong>The</strong> Kingsford ® brand has recently launched a<br />

product improvement that also reduced the amount<br />

of raw material used in a briquet by 7 percent.<br />

Glad ® ForceFlex ® trash bags are saving more than<br />

1 million pounds of plastic film per year compared<br />

to regular trash bags, while also providing consumers<br />

with a stronger bag.<br />

<strong>Clorox</strong> 2 ® stain fighter and color booster comes in a new<br />

concentrated version, reducing the amount of water<br />

used in manufacturing this product by 54 percent,<br />

resin needed for bottles by 36 percent and gallons<br />

of diesel for shipping by 160 million gallons annually.<br />

40 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Packaging Changes Reduce Waste<br />

PLANET<br />

Many <strong>Clorox</strong> <strong>Company</strong> brands have moved to more sustainable packaging. Package redesign,<br />

material reduction and increases in recycled content have led to measurable improvements.<br />

Today, 90 percent of our product cartons use 100 percent recycled material, and 85 percent<br />

of our packaging is recyclable. Also, nearly all of our U.S. retail display materials are made<br />

from 100 percent post-consumer waste.<br />

Some recent packaging improvements:<br />

• <strong>Clorox</strong> ® regular bleach has reduced the plastic in its bottles by more than 5 million<br />

pounds annually<br />

• All of our spray-cleaning products now use lighter, more environmentally efficient<br />

triggers that are better at preventing fluid leakage<br />

• Burt’s Bees ® lip balm and lip shimmer products removed plastic wrapping to save<br />

more than 1,800 miles of shrink-wrap film annually.<br />

As a member of the Sustainable Packaging Coalition, we continue to advocate for more<br />

environmentally friendly packaging throughout the consumer products sector and are<br />

committed to doing more by working to achieve the following packaging goals by 2013:<br />

• Reduce packaging on more than one-third of our product portfolio<br />

(from 2005 to 2013)<br />

• Have at least 90 percent of all our products in recyclable primary packaging<br />

(versus 85 percent currently)<br />

• Identify alternatives to PVC for all packaging.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 41


PLANET<br />

Green<br />

On Tap<br />

An eco-friendly alternative to bottled<br />

water is as close as your refrigerator or<br />

kitchen sink, thanks to Brita ® waterfiltration<br />

products.<br />

Water is one of life’s most essential<br />

elements, but can be exposed to impurities<br />

that impact taste. From convenient faucetfiltration<br />

systems to filtered refrigerator<br />

pitchers, Brita ® offers an easy solution<br />

for people to enjoy healthier, bettertasting<br />

water.<br />

By encouraging people to drink more<br />

water, the Brita ® brand has a strong health<br />

and wellness component. When you add<br />

the brand’s environmental benefits,<br />

the overall value proposition becomes<br />

even more compelling. Consider<br />

the fact that Americans alone<br />

drank nearly 8.7 billion gallons of<br />

bottled water in 2008*, with most<br />

bottled water containers ending<br />

up in landfills.<br />

* Beverage Marketing Corporation press release,<br />

“Smaller categories still saw growth as the<br />

U.S. liquid refreshment beverage market shrank<br />

by 2% in 2008,” March 30, 2009.<br />

†<br />

www.filterforgood.com/facts.<br />

Preserve ® is a registered trademark of Recycline, Inc.<br />

One Brita ® pitcher filter can<br />

effectively replace as many as 300<br />

standard 16.9-ounce bottles of water. †<br />

And used Brita ® filters can now be recycled<br />

thanks to our partnership with Preserve ® , the<br />

leading maker of 100 percent recycled household<br />

consumer goods.<br />

Brita ® filtered water also offers an economical<br />

alternative to bottled water. <strong>The</strong> average<br />

Brita ® pitcher filters 240 gallons of<br />

water per year for about 19 cents per<br />

day, significantly less than the cost of<br />

a single bottle of water.<br />

Our Brita ® team is committed to<br />

raising awareness of these cost and<br />

environmental advantages. <strong>The</strong> brand’s<br />

FilterForGood campaign encourages consumers<br />

to sign an online pledge to reduce bottled water<br />

consumption in exchange for a Brita ® product<br />

coupon. Based on pledges to date, there are nearly<br />

200 million fewer plastic water bottles in the world<br />

today: a number well worth raising a glass to.<br />

42 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Measuring, Managing and<br />

Minimizing Our Operational<br />

Footprint<br />

PLANET<br />

Over the years, <strong>Clorox</strong> has become a highly efficient manufacturer through a continual<br />

improvement approach to our business. Today, these improvement efforts are aimed at<br />

further reducing our environmental footprint, with a focus on reductions in energy use<br />

and greenhouse gas (GHG) emissions, water use and solid waste to landfill.<br />

Tracking to Meet or<br />

Exceed Our 2013 Goals<br />

-20%<br />

-7%<br />

-10%<br />

-10%<br />

-10%<br />

-8.5%<br />

-9%<br />

-4.5%<br />

GHG Energy Water Waste<br />

PERFORMANCE TO DATE (2007 baseline)<br />

2013 GOAL (per case of product sold)<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 43


PLANET<br />

Greenhouse Gas Emissions<br />

and Energy Use Down<br />

We are actively working<br />

to reduce our GHG<br />

footprint. We’ve made a<br />

pledge to reduce our GHG<br />

emissions by 10 percent per<br />

case of product sold from<br />

2007 to 2013. We also joined<br />

the EPA’s Climate Leaders<br />

Program in 2008 and<br />

received EPA SmartWay<br />

Transport Partner certification<br />

this year as part of our<br />

commitment to reduce our<br />

GHG footprint.<br />

Our recent GHG and<br />

energy use reductions are<br />

Energy<br />

Consumption<br />

1.87<br />

due primarily to retrofitting 22 of our manufacturing<br />

plants, distribution facilities and major offices with<br />

energy efficient T5/T8 lighting and motion sensors.<br />

We’re also moving 30 percent of our product distribution<br />

from trucking to more efficient intermodal rail.<br />

818<br />

823<br />

1.86<br />

787<br />

1.78<br />

2007 2008 2009<br />

ENERGY CONSUMPTION<br />

(’000 of MWh)<br />

RATIO (MWh of energy<br />

per 1,000 cases)<br />

In addition to these strategies, <strong>Clorox</strong> is exploring<br />

other innovative ways to reduce our GHG emissions.<br />

<strong>The</strong> Burt’s Bees ® business, for example, is purchasing<br />

renewable energy credits in the form of wind energy,<br />

while the Kingsford ® business is using renewable<br />

energy sources from its own manufacturing processes<br />

to reduce dependence on the electricity grid.<br />

CO2 Equivalent GHG<br />

600<br />

1.37<br />

595<br />

1.34<br />

561<br />

1.27<br />

2007 2008 2009<br />

GHG (’000 metric tons)<br />

RATIO (metric tons of<br />

GHG per 1,000 cases)<br />

GHG Emissions by Source<br />

(’000 metric tons)<br />

600<br />

204<br />

322<br />

74<br />

595<br />

201<br />

319<br />

75<br />

2007 2008 2009<br />

SCOPE 1<br />

SCOPE 2<br />

SCOPE 3<br />

561<br />

187<br />

Scope 1 GHG emissions are a direct result of <strong>Clorox</strong> operations. Scope 2 GHG<br />

emissions are indirect emissions from purchased electricity, heat and steam.<br />

Scope 3 emissions are associated with the distribution (by all modes of transport)<br />

of finished products by nonaffiliated carriers to regional distribution centers and<br />

to retailers.<br />

300<br />

74<br />

We believe that science supports rising GHG emissions have a significant impact on climate<br />

change and the environment. <strong>Clorox</strong> therefore supports congressional action on comprehensive<br />

national climate change legislation aimed at reducing aggregate emissions of greenhouse gasses<br />

over time without causing undue hardships for the U.S. economy. <strong>Clorox</strong> is also committed to<br />

doing its part to help address this issue.<br />

44 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


GHG Emissions by Gas Type (2009)<br />

CO 2 91 percent<br />

CH 4 1 percent<br />

N 20 7.5 percent<br />

HFCs 0.5 percent<br />

Other Gas Emissions and<br />

Particulate Matter<br />

In addition to GHG emissions, <strong>Clorox</strong> is<br />

committed to carefully monitoring and working<br />

to minimize other gas emissions and particulate matter.<br />

Our manufacturing processes use a minimal amount of<br />

fluorinated gases, primarily chlorodifluoromethane<br />

This gas is part of industrial refrigeration systems and<br />

works in a closed-loop system.<br />

PLANET<br />

GHG Emissions<br />

by Segment<br />

(’000 metric tons)<br />

600<br />

22<br />

51<br />

202<br />

14<br />

61<br />

250<br />

595<br />

22<br />

52<br />

198<br />

14<br />

61<br />

248<br />

561<br />

21<br />

48<br />

183<br />

14<br />

58<br />

236<br />

2007 2008 2009<br />

HOUSEHOLD<br />

CLEANING<br />

LIFESTYLE<br />

TRANSPORT<br />

INTERNATIONAL<br />

OFFICES<br />

While the <strong>Clorox</strong> GHG inventory has not been independently verified by<br />

a third party, our GHG inventory gathering process and calculations<br />

(for 2005-2009) were led and conducted by a third-party environmental<br />

services firm that has detailed knowledge of the operations and air<br />

emissions characteristics of the major <strong>Clorox</strong> manufacturing facilities<br />

and uses the methodologies and emissions factors from well-known<br />

GHG protocols, including those of the U.S. Department of Energy, World<br />

Resources Institute and EPA’s Climate Leaders.<br />

We also monitor the use and release of volatile organic<br />

compounds, particulate matter, sulfur oxides and<br />

nitrogen oxides. Our plants comply with air permits<br />

that limit these pollutants based on federal, state and<br />

local government regulations. We are actively looking<br />

for technologies and efficiencies to further reduce<br />

particulate matter emissions in the future.<br />

On Track to Achieve Our<br />

Water-Reduction Goal<br />

<strong>Clorox</strong> has made strong<br />

progress in reducing our<br />

water use in the past two<br />

years as a result of initiatives<br />

that addressed our water<br />

recycling infrastructure,<br />

upgraded equipment and<br />

replaced water-cooled with<br />

air-cooled compressor<br />

systems. Two of our<br />

Kingsford ® charcoal plants,<br />

for example, have each<br />

reduced water consumption<br />

by more than 30 percent.<br />

We believe these types<br />

Water Consumption<br />

1,029<br />

2.35<br />

960 952<br />

2.17 2.15<br />

2007 2008 2009<br />

CONSUMPTION<br />

(millions of gallons)<br />

RATIO<br />

(gallons of water per case)<br />

of initiatives, as well as<br />

changes to manufacturing<br />

facility water management<br />

practices, will enable us to<br />

meet or exceed our overall<br />

water-use reduction goal of 10 percent by 2013.<br />

By volume, most of the water consumed<br />

by <strong>Clorox</strong> is derived from city water utilities.<br />

A small fraction of our total water use is<br />

derived from surface and well water.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 45


PLANET<br />

“Dumpster Dives” Help to Reduce<br />

Landfill Waste<br />

Cost savings initiatives and manufacturing<br />

excellence programs have helped <strong>Clorox</strong> build<br />

a solid record in the areas of reducing and reusing<br />

materials, but recent audits have found that we still<br />

send too much waste to landfills. “dumpster dives,”<br />

where employee volunteers literally dump and sort<br />

through trash, have been an<br />

effective initiative to raise<br />

awareness of what can be<br />

recycled and to encourage<br />

changes about what gets<br />

deposited in the trash.<br />

Dives at our Tampa, Fla.,<br />

and Amherst, Va., plants<br />

have led to reductions of<br />

waste sent to landfills of<br />

more than 50 percent.<br />

<strong>The</strong>se achievements are<br />

helping us make progress<br />

toward our commitment<br />

to reduce company-wide<br />

solid waste by 20 percent<br />

(per case of product sold)<br />

from 2007 through 2013.<br />

Solid Waste<br />

13,893<br />

12,590<br />

12,783<br />

31.7<br />

28.4 28.9<br />

2007 2008 2009<br />

TONS<br />

RATIO (tons of waste<br />

per million cases)<br />

<strong>The</strong> vast majority of the solid waste that <strong>Clorox</strong><br />

produces is nonhazardous in nature and we employ<br />

manufacturing practices that minimize such waste.<br />

<strong>The</strong> small amount of hazardous waste that we do<br />

produce is properly handled by approved vendors<br />

and properly tracked through its disposal process.<br />

Biodiversity and Habitat Conservation<br />

<strong>The</strong> preservation and protection of biodiversity and<br />

natural ecosystems go hand in hand with resource<br />

conservation. To this end, <strong>Clorox</strong> complies with<br />

global, federal, state and local biodiversity legislation<br />

and regulations and, whenever possible, goes beyond<br />

legal requirements to ensure that our manufacturing<br />

operations do not negatively impact biodiversity,<br />

natural habitats, wetlands, forest lands, fisheries or<br />

local plant and animal species.<br />

Our overall operational impact on biodiversity is<br />

insignificant, given the location and nature of our<br />

operations as well as the products we manufacture.<br />

<strong>The</strong> one exception is our plant in Aberdeen, Md.,<br />

which manufactures bleach products. It is located on<br />

150 acres of wetlands owned by <strong>Clorox</strong> that we are<br />

committed to protecting. In 1993, our Aberdeen plant,<br />

which resides on eight of these acres, was one of only<br />

three buildings worldwide to receive the Distinguished<br />

Environmental Planning Award from the Industrial<br />

Development Resource Council. We were selected based<br />

on our attention to energy conservation and preservation<br />

of this 150-acre wetlands area.<br />

<strong>Clorox</strong>’s “dumpster dives” help divert<br />

waste from landfills.<br />

46 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Encouraging Sustainable Workplaces<br />

and Habits<br />

PLANET<br />

<strong>The</strong> ultimate success of our eco strategies requires that environmental sensitivity and best practices become an<br />

intrinsic part of the culture at <strong>Clorox</strong>. Every <strong>Clorox</strong> employee is called upon to support our commitments and<br />

goals in order for us to achieve them and to realize the potential of sustainable business opportunities.<br />

This process begins through our daily habits and in our<br />

workplace environments. In North America, for example,<br />

over the past two years <strong>Clorox</strong> has reduced paper use<br />

by 30 percent and converted all remaining paper to<br />

100 percent recycled content. We have reduced business<br />

travel by 20 percent and converted company cars to<br />

hybrid vehicles.<br />

We are also proud that our corporate headquarters<br />

in Oakland, Calif., recently received platinum-level<br />

Leadership in Energy and Environmental Design<br />

(LEED) certification for an existing building (EB).<br />

Developed by the U.S. Green Building Council,<br />

the platinum LEED designation is the highest-level<br />

certification a commercial property can achieve. <strong>The</strong><br />

<strong>Clorox</strong> <strong>Company</strong> building is one of only 38 buildings in<br />

the U.S. to achieve LEED-EB certification. We achieved<br />

this certification by decreasing the environmental<br />

footprint of our facility’s operations through dozens of<br />

building improvements over the last couple of years.<br />

Employee Volunteers Drive<br />

“Green-Handed” Ideas<br />

One of our most successful employee involvement<br />

strategies to date has been to recruit those employees<br />

most passionate about positive environmental change.<br />

In 2008, we created the <strong>Clorox</strong> Eco Network, a global<br />

team of employee volunteers to help our company and<br />

fellow employees make sustainable decisions on behalf<br />

of the environment. <strong>The</strong> network serves as both a<br />

forum for new ideas and the driver of workplace eco<br />

initiatives. Recently, the network launched an intranet<br />

page to share green news and tips, orchestrated Earth<br />

Day celebrations across major <strong>Clorox</strong> sites and placed<br />

“Get caught green-handed — turn off the lights” stickers<br />

on 2,500 light switches in locations across <strong>Clorox</strong><br />

facilities. <strong>The</strong> Eco Network has now focused its<br />

attention on waste reduction, in particular recycling<br />

and composting, at key <strong>Clorox</strong> sites like our Oakland<br />

general offices, where the network hopes to divert<br />

90 percent of our waste from the landfill.<br />

Eco Volunteers Go Global<br />

<strong>The</strong> <strong>Clorox</strong> Eco Network has no borders and<br />

has expanded throughout our global operations.<br />

For example, in Chile volunteers have combined<br />

their ingenuity and enthusiasm to make a sweeping<br />

difference — literally.<br />

Employees came up with the idea of using simple<br />

plastics such as PET, packaging stretch film and plastic<br />

bags as raw material for the broom bases that <strong>Clorox</strong><br />

makes. <strong>The</strong> initiative has enjoyed widespread involvement<br />

from employees and their families as employees<br />

not only collect plastic waste at work but also bring in<br />

plastic waste from home.<br />

<strong>The</strong> results have been so successful that the initiative<br />

is expanding plastic recycling beyond the walls of<br />

<strong>Clorox</strong> to include partnerships with customers,<br />

schools and nonprofit organizations.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 47


PLANET<br />

<strong>The</strong><br />

Greater Good<br />

When <strong>Clorox</strong> acquired the Burt’s Bees ® brand in 2007, we<br />

acquired not only a leading natural personal care brand,<br />

but also an exemplar company in social responsibility.<br />

<strong>The</strong> Burt’s Bees ® team follows a business model dubbed<br />

<strong>The</strong> Greater Good that represents the highest ethical<br />

choice that can be made to maximize the overall wellbeing<br />

of people and the planet.<br />

<strong>The</strong> Greater Good adheres to a set of beliefs that<br />

helps guide the company and its actions, particularly as<br />

it relates to the environment. After all, the company was<br />

founded in 1984 on a foundation of earth-friendly natural<br />

personal care products. <strong>The</strong> business nurtures a cycle<br />

that is based on the belief that to take from nature, you<br />

must also protect and provide for nature.<br />

To this end, the business aspires to be “the greenest<br />

personal care company on earth” and is working toward<br />

a set of goals to achieve by 2020. Among these goals are a<br />

carbon-free footprint, utilization of 100 percent renewable<br />

energy, zero waste to landfills and Leadership in Energy<br />

and Environmental Design certification for all facilities.<br />

Already Burt’s Bees ® has achieved zero waste to landfill<br />

at its manufacturing, distribution and office facilities, and<br />

operating effectively in a carbon-neutral manner by buying<br />

renewable energy certificates and carbon offsets to offset<br />

their GHG footprint.<br />

<strong>The</strong> Burt’s Bees ® business took employee involvement<br />

to a new level in 2009 with the launch of “Live the<br />

Greater Good,” a company-wide program that encourages<br />

employees to formally and continuously integrate<br />

environmental stewardship, social consciousness, natural<br />

wellness and world-class leadership into their personal<br />

and professional lives.<br />

As the Burt’s Bees ® brand expands its products around<br />

the world, the team is also exporting its greater good<br />

philosophy and finding that it resonates with international<br />

employees and consumers as well. This positive reception<br />

is largely due to the degree of customization that is<br />

encouraged in each country. <strong>The</strong> Burt’s Bees ® business<br />

introduces its greater good model and values in each<br />

country, and then its employees find ways to tailor it to<br />

their particular areas of interest and passions. In Australia,<br />

for example, educational programs and outreach efforts<br />

are largely focused on biodiversity, an area of great<br />

concern to Australian citizens.<br />

It is hard to think of a better example than the<br />

Burt’s Bees ® brand of the way good business and the<br />

greater good can complement each other and, indeed,<br />

grow and prosper together.<br />

48 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Be<br />

Committed<br />

Purpose<br />

Safeguard family well-being, every day<br />

49 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CSR Report<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 49


PURPOSE<br />

Foundation Supports Youth<br />

and Cultural Programs<br />

Founded in 1980, <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> Foundation is<br />

our formal philanthropic arm and has awarded cash<br />

grants totaling more than $80 million to nonprofit<br />

organizations, schools and colleges over the past three<br />

decades. <strong>The</strong> majority of these grants support innovative<br />

programs that serve youth, kindergarten through 12th<br />

grade education, and cultural and civic organizations.<br />

Much of the foundation’s work is centered in our<br />

corporate hometown of Oakland, Calif., but it also<br />

benefits local needs in other communities where our<br />

employees live and work.<br />

After Hurricane Katrina hit New Orleans and the Gulf<br />

Coast, for example, <strong>Clorox</strong> donated more than $2 million in<br />

cash and product toward relief efforts. We were also the<br />

first to step up and sponsor Mardi Gras in New Orleans<br />

that year, donating more than 1.3 million Glad ® trash bags<br />

to the department of sanitation for clean-up efforts. More<br />

recently, when southern Georgia was hit by severe flooding<br />

in 2009, <strong>Clorox</strong> sent more than two truckloads of bleach<br />

to assist with cleanup.<br />

Charitable Contributions<br />

(in millions of dollars)<br />

$13.2<br />

$1.8<br />

$3.6<br />

$14.1<br />

$1.8<br />

$3.5<br />

15<br />

12<br />

<strong>Clorox</strong> also has a long history of donating Glad ® trash<br />

bags, <strong>Clorox</strong> ® bleach and other disinfecting products<br />

to the American Red Cross to assist with disaster relief.<br />

$7.8<br />

$8.8<br />

9<br />

6<br />

2009 2010<br />

CAUSE MARKETING DONATIONS<br />

FOUNDATION CASH GRANTS<br />

CORPORATE PRODUCT DONATIONS<br />

3<br />

0<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> Foundation<br />

has awarded more than $80 million<br />

in cash grants since 1980.<br />

50 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Employees Give Time and<br />

Money to Support<br />

Our Communities<br />

At <strong>Clorox</strong>, our work force of more than 8,300 employees<br />

shares a common trait: a commitment to give back to<br />

others through our time and talents. Visit a company<br />

facility anywhere in the world and you will find an<br />

example of this commitment.<br />

<strong>Clorox</strong> employees build houses for Habitat for Humanity<br />

International, walk in fundraisers to support cancer<br />

research, provide legal expertise to victims of domestic<br />

violence and donate presents to impoverished families<br />

during the holidays. <strong>The</strong>se examples are a small sample<br />

of the dozens of programs and opportunities that we<br />

support. In 2009 alone, <strong>Clorox</strong> people volunteered nearly<br />

100,000 hours of their time to charitable organizations.<br />

K-12 education is our primary corporate focus. More<br />

than 100 <strong>Clorox</strong> employees volunteer each year for<br />

Junior Achievement, an organization dedicated to<br />

educating and inspiring young people about the<br />

business world. We support Junior Achievement<br />

with employees who teach classes and through grants<br />

made by <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> Foundation. Another<br />

example of <strong>Clorox</strong> employees’ passion for supporting<br />

education is the Marcus A. Foster Educational Institute<br />

auction that 100+ volunteers coordinate annually. Now<br />

in its 19th year, the event regularly raises more than<br />

$70,000 for scholarships.<br />

GIFT Campaign Matches<br />

Employee Contributions<br />

Beyond their time, <strong>Clorox</strong> employees also donate their<br />

money to nonprofit organizations, and we are proud to<br />

match their generosity. In the U.S. and Canada, our<br />

Getting Involved for Tomorrow (GIFT) campaign matches<br />

employee contributions up to $2,500 per employee to<br />

nonprofit organizations of their choosing. Including<br />

the company match, the 2010 GIFT campaign raised<br />

$3.5 million. In addition, our higher education gifts<br />

program matches up to an additional $5,000 per employee<br />

to eligible U.S. higher education programs.<br />

PURPOSE<br />

As part of our community<br />

outreach initiatives,<br />

employees spent a day<br />

planting trees in Oakland,<br />

Calif. From left to right:<br />

Herbert Lee, Bill Morrissey<br />

and Craig Wolfson.<br />

Mary Jasso believes strongly in helping<br />

others. That’s why she volunteered to<br />

chair the <strong>Clorox</strong> Houston facility’s<br />

GIFT campaign many times during<br />

the past decade. After the devastation<br />

caused by Hurricane Ike in 2008, however, Mary and<br />

many of her fellow employees developed a first-hand<br />

understanding of the campaign’s slogan, “Follow your<br />

heart and <strong>Clorox</strong> will follow you.” Through GIFT,<br />

employees can support <strong>The</strong> <strong>Clorox</strong> Employee Emergency<br />

Relief Fund (EERF) and the company will match dollar<br />

for dollar, up to $2,500. For employees like Mary who<br />

face unexpected expenses from emergency situations,<br />

EERF provides much needed help. After personally<br />

benefiting from EERF assistance, Houston employees<br />

showed their gratitude by reaching a 97 percent<br />

participation level in the next GIFT campaign, knowing<br />

their help would be there for those next in need.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 51


PURPOSE<br />

Product and Cash Donations Aid Disaster Relief<br />

Immediately following the devastating earthquake that struck Haiti in January 2010, <strong>The</strong> <strong>Clorox</strong><br />

<strong>Company</strong> Foundation donated $250,000 toward relief efforts. Though the dollars were critical,<br />

an equally important donation came in the form of more than 200,000 gallons of <strong>Clorox</strong> ®<br />

regular bleach.<br />

In Haiti, the level of destruction and lack of infrastructure made product donations almost<br />

impossible in the immediate aftermath of the quake. Our <strong>Clorox</strong> Caribbean team began<br />

working with the local Red Cross chapter, public health agencies, our Dominican Republic<br />

distribution partner and the Portugal Consulate to provide an initial donation of 415,000<br />

150-ml sachets and 8,400 gallons of bleach. Another 100,000 gallons of bleach from our<br />

Port-au-Prince warehouse were also donated. From there, we turned to our plant in Puerto Rico<br />

to begin shipping additional supplies.<br />

Contaminated water and property left behind by natural disasters in Haiti and countless<br />

other places present an immediate public health threat. <strong>Clorox</strong> ® regular bleach can purify<br />

water and disinfect surfaces. For years, <strong>Clorox</strong> has partnered with the Red Cross to make<br />

bleach available as quickly as possible at the scene of countless disasters around the globe. We also<br />

have donated millions of Glad ® bags to assist with clean-up efforts.<br />

H1N1 Response<br />

Fast action is something of a core competency at <strong>Clorox</strong>. As the public learned of the H1N1 flu<br />

outbreak in Mexico in 2009, orders for bleach spiked. We activated our natural disaster<br />

contingency plans to ramp up production and coordinate distribution quickly. In addition,<br />

we donated roughly 20 truckloads of bleach through the Red Cross of Mexico, the Mexico<br />

Federal Health Secretary and the Mexican Social Security Institute.<br />

52 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


Brand Cause Marketing<br />

PURPOSE<br />

Brands Support Causes Consumers Care About<br />

More than ever, our brands are differentiating themselves in the marketplace by supporting the causes<br />

our consumers care about. <strong>The</strong> tie between our product and the cause, however, must be both a heartfelt<br />

and strategic fit. We make this determination by listening to our consumers. Considering what our brands<br />

stand for and evaluating whether or not the brand can play a functional role in supporting a cause,<br />

such as bleach disinfecting and purifying water during natural disasters. Here are examples of some of<br />

our brands’ latest cause programs:<br />

<strong>Clorox</strong> ® Brand and the Children’s Health Fund<br />

www.facebook.com/clorox<br />

<strong>The</strong> <strong>Clorox</strong> ® brand has partnered with the Children’s Health Fund (CHF) to launch a new program as part of the brand’s commitment<br />

to healthier lives for families. Capitalizing on the power of social media, the brand created Connect Kids To Care and will donate<br />

$1 for each new fan on the <strong>Clorox</strong> Facebook page, up to $100,000. In addition, the brand is donating $500,000 over the next<br />

two years to CHF.<br />

Pine-Sol ® Brand and Powerful Difference <br />

www.powerfuldifference.com<br />

Dedicated to helping women make a powerful difference in their homes and communities, this Pine-Sol ® program honors women<br />

across the country. Through cash awards, scholarships and action kits, the Pine-Sol ® brand enables women to continue the work<br />

they are doing or to start new volunteer work.<br />

Green Works ® Brand and Sierra Club<br />

www.greenworkscleaners.com/partners<br />

<strong>The</strong> Green Works ® brand partnered with the Sierra Club as part of its launch in 2008. Green Works ® products proudly display the<br />

Sierra Club logo to demonstrate the brand’s commitment to supporting the oldest and largest grassroots environmental organization<br />

in the U.S.<br />

Hidden Valley ® Brand and the Love Your Veggies Campaign<br />

www.loveyourveggies.com<br />

This campaign was inspired by a study that found that children consume more vegetables when paired with a moderate amount<br />

of ranch dressing. Targeted toward parents and educators who are trying to get children to eat and enjoy vegetables, the Hidden Valley ®<br />

campaign includes an informative website and a grant campaign that supports innovative school programs.<br />

Glad ® Brand and Glad To Give <br />

www.glad.com/gladtogive<br />

Cookies for Kids’ Cancer is a nonprofit organization that raises money to support pediatric cancer research through bake sales.<br />

<strong>The</strong> Glad ® brand is donating $1 to the cause for every Glad ® box code entered online. It is also conducting a national contest for<br />

the best “recipes” for food-related giving programs and providing online support for those who want to host a bake sale.<br />

Fresh Step ® Brand and the ASPCA<br />

www.freshstep.com/aspca<br />

<strong>The</strong> Fresh Step ® brand supports the activities of the American Society for the Prevention of Cruelty to Animals (ASPCA) by donating<br />

50 cents for codes entered from specially marked packages of its cat litter, as well as making it possible to convert points from its<br />

Paw Points ® loyalty program to donation dollars that benefit the ASPCA.<br />

Brita ® Brand and the FilterForGood Campaign<br />

www.filterforgood.com<br />

This campaign raises awareness of simple changes everyone can make to live more eco-friendly lives. A website offers Brita ®<br />

coupons in exchange for an online pledge by consumers to reduce bottled water waste and offers facts and tips for daily habits<br />

that can help the environment.<br />

Burt’s Bees ® Brand and <strong>The</strong> Greater Good Campaign<br />

www.burtsbees.com/c/commitment/greatergood.html<br />

<strong>The</strong> Greater Good commitment is Burt’s Bees ® ’ business model that is designed to maximize the overall well-being of people<br />

and the planet. Through <strong>The</strong> Greater Good Foundation, the business gives 10 percent of all sales from www.burtsbees.com<br />

to worthy causes.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 53


GRI Content Index<br />

Strategy and Profile Disclosures Page #<br />

1. Strategy and Analysis<br />

1.1 Strategy and Analysis 3,4,7,8,15<br />

1.2 Description of key impacts, risks, and opportunities 7,8,15<br />

2. Organizational Profile<br />

2.1 Name of the organization 5<br />

2.2 Primary brands, products, and/or services 5,11,12<br />

2.3 Operational structure 1,11<br />

2.4 Location of organization’s headquarters 5<br />

2.5 Countries of operation 11<br />

2.6 Nature of ownership and legal form 5<br />

2.7 Markets served 11<br />

2.8 Scale of the reporting organization 11,12<br />

2.9 Significant changes during the reporting period regarding size, structure, or ownership 1<br />

2.10 Awards received in the reporting period 7,14,30<br />

3. Report Parameters<br />

Report Profile<br />

3.1 Reporting period (e.g., fiscal/calendar year) for information provided 1<br />

3.2 Date of most recent previous report (if any) N/A<br />

3.3 Reporting cycle (annual/biennial, etc.) 1<br />

3.4 Contact point for questions regarding the report or its contents 1<br />

responsibility@clorox.com<br />

Report Scope and Boundary<br />

3.5 Process for defining report content 1,7,8,15<br />

3.6 Boundary of the report 1<br />

3.7 Specific limitations on the scope or boundary of the report 1<br />

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities 1<br />

that can significantly affect comparability from period to period and/or between organizations<br />

3.9 Data measurement techniques and assumptions 1<br />

3.10 Explanation of the effect of any re-statements of information provided in earlier reports N/A<br />

3.11 Significant changes from previous reporting periods N/A<br />

GRI Content Index<br />

3.12 Table identifying the location of the Standard Disclosures in the report 54-58<br />

Assurance<br />

3.13 Policy and current practice with regard to seeking external assurance for the report 1<br />

4. Governance, Commitments, and Engagement<br />

Governance<br />

4.1 Governance structure 16<br />

4.2 Indicate whether Chair of the highest governance body is also an executive officer 4,16<br />

4.3 Number of members of the highest governance body that are independent and/or non-executive members 16<br />

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the board 17<br />

4.5 Linkage between compensation for members of the board, senior managers, and executives and the 16<br />

organization’s performance<br />

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided 17<br />

54 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


GRI Content Index<br />

Strategy and Profile Disclosures (continued) Page #<br />

4.7 Process for determining the qualifications and expertise of the members of the highest governance body<br />

for guiding the organization’s strategy on economic, environmental, and social topics<br />

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to<br />

economic, environmental, and social performance and the status of their implementation<br />

4.9 Procedures of the highest governance body for overseeing the organization’s identification and management<br />

of economic, environmental, and social performance<br />

4.10 Processes for evaluating the highest governance body’s own performance 16<br />

Commitments to External Initiatives<br />

4.11 Explanations of whether and how the precautionary approach or principle is addressed by the organization N/A<br />

4.12 Externally developed economic, environmental, and social charts, principles, or other initiatives to which the 1,15<br />

organization subscribes or endorses<br />

4.13 Memberships in associations 15<br />

Stakeholder Engagement<br />

4.14 List of stakeholder groups engaged by the organization 15<br />

4.15 Basis for identification and selection of stakeholders with whom to engage 15<br />

4.16 Approaches to stakeholder engagement 15<br />

4.17 Key topics and concerns that have been raised through stakeholder engagement 7,8,15<br />

Economic Disclosures<br />

Aspect: Economic Performance<br />

EC1 Direct economic value generated and distributed 11,12<br />

EC2 Financial implications and other risks and opportunities for the organization’s activities due to<br />

N/R<br />

climate change<br />

EC3 Coverage of the organization’s defined benefit plan obligations 36<br />

EC4 Significant financial assistance received from government N/A<br />

Aspect: Market Presence<br />

EC5 Range of ratios of standard entry level wage compared to local minimum wage N/R<br />

EC6 Policy, practices, and proportion of spending on locally based suppliers N/R<br />

EC7 Procedures for local hiring and proportion of senior management hired from the local community N/R<br />

Aspect: Indirect Economic Impacts<br />

EC8 Development and impact of infrastructure investments and services provided primarily for<br />

50-53<br />

public benefit through commercial, in-kind, or pro bono engagement<br />

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts N/R<br />

Environmental Disclosures<br />

Aspect: Materials<br />

Management Disclosures 8,38-39<br />

www.cloroxcsr.com/planet<br />

EN1 Materials used by weight or volume N/R<br />

EN2 Percentage of materials used that are recycled input materials N/R<br />

Aspect: Energy<br />

EN3 Direct energy consumption by primary energy source 43-45<br />

EN4 Indirect energy consumption by primary source N/R<br />

EN5 Energy saved due to conservation and efficiency improvements 43-45<br />

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions<br />

in energy requirements as a result of these initiatives<br />

44,47<br />

16<br />

17<br />

16<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 55


GRI Content Index<br />

Environmental Disclosures (continued) Page #<br />

EN7 Initiatives to reduce indirect energy consumption and reductions achieved N/R<br />

Aspect: Water<br />

EN8 Total water withdrawal by source 45<br />

EN9 Water sources significantly affected by withdrawal of water 45<br />

EN10 Percentage and total volume of water recycled and reused 45<br />

Aspect: Biodiversity<br />

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high 46<br />

biodiversity value outside protected areas<br />

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas N/R<br />

EN13 Habitats protected or restored 46<br />

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity N/R<br />

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas<br />

N/R<br />

affected by operations, by level of extinction risk<br />

Aspect: Emissions, Effluents, and Waste<br />

EN16 Total direct and indirect greenhouse gas emissions by weight 43-45<br />

EN17 Other relevant indirect greenhouse gas emissions by weight 43-45<br />

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 43-45<br />

EN19 Emissions of ozone-depleting substances by weight N/R<br />

EN20 NOx, SOx, and other significant air emissions by type and weight N/R<br />

EN21 Total water discharge by quality and destination N/R<br />

EN22 Total weight of waste by type and disposal method 46<br />

EN23 Total number and volume of significant spills N/A<br />

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the N/R<br />

Basel Convention Annex I, II, III, and VII, and percentage of transported waste shipped internationally<br />

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected N/R<br />

by the reporting organization’s discharges of water and runoff<br />

Aspect: Products and Services<br />

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation 39-41<br />

EN27 Percentage of products sold and their packaging materials that are reclaimed by category 41<br />

Aspect: Compliance<br />

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with<br />

environmental laws and regulations<br />

Aspect: Transport<br />

EN29 Significant environmental impacts of transporting products and other goods and materials used for the<br />

organization’s operations, and transporting members of the workforce<br />

Aspect: Overall<br />

EN30 Total environmental protection expenditures and investments by type N/R<br />

Social Disclosure: Labor Practices and Decent Work<br />

Aspect: Employment<br />

Management Disclosures 8,31<br />

www.cloroxcsr.com/people<br />

LA1 Total workforce by employment type, employment contract, and region 31<br />

LA2 Total number and rate of employee turnover by age group, gender, and region 31<br />

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees,<br />

by major operations<br />

34<br />

56 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR<br />

N/R<br />

44


GRI Content Index<br />

Social Disclosure: Labor Practices and Decent Work (continued) Page #<br />

Aspect: Labor/Management Relations<br />

LA4 Percentage of employees covered 31<br />

LA5 Minimum of notice period(s) regarding significant operational changes, including whether it is specified in N/R<br />

collective agreements<br />

Aspect: Occupational Health and Safety<br />

LA6 Percentage of total workforce represented in formal joint management-worker health and safety N/R<br />

committees that help monitor and advise on occupational health and safety programs<br />

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related 35<br />

fatalities by region<br />

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce 33,36<br />

members, their families, or community members regarding serious disease<br />

LA9 Health and safety topics covered in formal agreements with trade unions N/R<br />

Aspect: Training and Education<br />

LA10 Average hours of training per year per employee category 33<br />

LA11 Programs for skills management and lifelong learning that support the continued employability of 32-33<br />

employees and assist them in managing career endings<br />

LA12 Percentage of employees receiving regular performance and career development reviews 33<br />

Aspect: Diversity and Equal Opportunity<br />

LA13 Composition of governance bodies and breakdown of employees per category according<br />

30-31<br />

to gender, age group, minority group membership, and other indicators of diversity<br />

LA14 Ratio of basic salary of men to women by employment category N/R<br />

Social Disclosure: Human Rights<br />

Aspect: Investment and Procurement Practices<br />

Management Disclosures 8,17<br />

www.cloroxcsr.com/workplace-safety<br />

www.cloroxcsr.com/conduct<br />

<strong>Clorox</strong> suppliers:<br />

www.cloroxcsr.com/business-partners<br />

HR1 Percentage and total number of significant investment agreements that include human rights clauses N/R<br />

or that have undergone human rights screening<br />

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights 17<br />

and actions taken<br />

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are 17<br />

relevant to operations, including the percentage of employees trained<br />

Aspect: Non-Discrimination<br />

HR4 Total number of incidents of discrimination and actions taken N/R<br />

Aspect: Freedom of Association and Collective Bargaining<br />

HR5 Operations identified in which the right to exercise freedom of association and collective bargaining<br />

may be at significant risk, and actions taken to support these rights<br />

Aspect: Child Labor<br />

HR6 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures<br />

taken to contribute to the elimination of forced or compulsory labor. <strong>Clorox</strong> prohibits the use of child labor in<br />

its own operations and that of suppliers.<br />

Aspect: Forced and Compulsory Labor<br />

HR7<br />

Operations identified as having significant risk for incidents of forced or compulsory labor, and measures<br />

taken to contribute to the elimination of forced or compulsory labor. <strong>Clorox</strong> prohibits the use of forced<br />

compulsory labor in its own operations and that of suppliers.<br />

31<br />

17<br />

17<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 57


GRI Content Index<br />

Social Disclosure: Human Rights (continued) Page #<br />

Aspect: Security Practices<br />

HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects<br />

of human rights that are relevant to operations<br />

Aspect: Indigenous Rights<br />

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken N/R<br />

Social Disclosure: Society<br />

Aspect: Community<br />

Management Disclosures 10,50-52<br />

www.cloroxcsr.com/purpose<br />

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of N/R<br />

operations on communities, including entering, operating, and exiting<br />

Aspect: Corruption<br />

SO2 Percentage and total number of business units analyzed for risks related to corruption N/R<br />

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures 17<br />

SO4 Actions taken in response to incidents of corruption 17<br />

Aspect: Public Policy<br />

SO5 Public policy positions and participation in public policy development and lobbying 15<br />

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country N/R<br />

Aspect: Anti-Competitive Behavior<br />

SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes N/R<br />

Aspect: Compliance<br />

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with<br />

laws and regulations<br />

Social Disclosure: Product Responsibility<br />

Aspect: Customer Health and Safety<br />

Management Disclosures 10,24-25<br />

www.cloroxcsr.com/products-safety<br />

PR1 Lifecycle stages in which health and safety impacts of products and services are assessed for improvement,<br />

and percentage of significant products and services categories subject to such procedures<br />

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and<br />

safety impacts of products and services during their lifecycle, by type of outcome<br />

Aspect: Product and Service Labeling<br />

PR3 Type of product and service information required by procedures, and percentage of significant products 25<br />

and services subject to such information requirements<br />

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product N/R<br />

and service information and labeling, by type of outcomes<br />

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction 19-20<br />

Aspect: Marketing Communications<br />

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, 20<br />

including advertising, promotion, and sponsorship<br />

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing N/R<br />

communications, including advertising, promotion, and sponsorship by type of outcome<br />

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data N/R<br />

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the<br />

provision and use of products and services<br />

N/R<br />

N/R<br />

N/R<br />

24-25<br />

www.cloroxcsr.com/products-safety<br />

N/R<br />

58 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR


1221 Broadway<br />

Oakland, CA 94612<br />

510-271-7000<br />

www.<strong>Clorox</strong>CSR.com<br />

ListenWell<br />

Please share your feedback on our report. We want to hear what you liked,<br />

what you didn’t like, what might have surprised you about us and what you<br />

would like addressed in future reports.<br />

Please take a brief survey at http://www.surveymonkey.com/s/<strong>Clorox</strong>CR.<br />

To express our appreciation for your time and feedback, we will donate<br />

$5 to the American Red Cross International Response Fund for every survey<br />

completed by Dec. 31, 2010, up to $10,000.<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 59

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