English - The Clorox Company
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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 />
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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 />
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completed by Dec. 31, 2010, up to $10,000.<br />
<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR 59