Anda di halaman 1dari 60

2010 Corporate Responsibility Report

BeWell, Every Day


Day.
About This Report
Since we started our business in 1913, corporate responsibility (CR) has been at the core of The Clorox
Company. It’s part of our DNA and a driver of engagement for Clorox people around the world. We are pleased
to share our first in-depth CR report, which provides our key stakeholders — shareholders, employees,
consumers, customers, government and nongovernment organizations, business partners and community
members – a detailed account of our CR progress and future commitments.
Our report content and structure are based on our recently formalized CR strategy that outlines our focus
in five key areas or “pillars” — Performance, Products, People, Planet and Purpose. You can read more about
our pillars in our CEO letter on pages 3–4 and in our CR strategy overview on pages 7–8.
We’re in the early stages of formal CR reporting and establishing a comprehensive data-collection system.
We will continue to build these processes with the goal to expand our reporting globally — including the
communication of additional goals, targets and indicators — in future reports.
We have not sought external assurance for this report. Our content has been thoroughly reviewed by Clorox
Legal and Internal Audit teams to ensure our data is accurate. Data measurement and calculations are based
on ongoing, internally tracked information by various Clorox organizations. Environmental data provided in
this report is a combination of internal and third-party compliance tracking and measurement.

Reporting Period
Unless otherwise noted, data in our report covers our wholly and majority-owned operations during fiscal
year 2010 (July 1, 2009, through June 30, 2010), with the exception of our environmental sustainability data,
which is tracked on a calendar-year basis. In some instances, we have included data from previous years to show
year-over-year comparisons. We plan to issue an abridged CR report every year and an in-depth, comprehensive
report every other year.

Global Reporting Initiative


Our CR report was developed according to the Global Reporting Initiative (GRI)
G3 guidelines, which provide a recommended framework and indicators for reporting.
We are reporting against a GRI-checked application level of “B.”
A table outlining the location of GRI standard disclosures is located on page 54.
More information on the G3 Guidelines and application levels is available at
www.globalreporting.org.

Share Your Feedback


Questions or comments about Clorox’s corporate responsibility report can be directed to responsibility@clorox.com.
We also invite your to share your feedback by taking a brief survey at http://www.surveymonkey.com/s/CloroxCR.
For every survey completed by Dec. 31, 2010, we will donate $5 to the American Red Cross International
Response Fund, up to $10,000.

Contents
Chairman’s Message  3   |   About Clorox  5   |   Performance  6   |   Corporate Strategy  7   |
Stakeholder Engagement  15   |   Products  18   |   People  29   |   Planet  37   |   Purpose  49   |
GRI Content Index  54

  The Clorox Company | 2010 CRR  1


Stop
Germs
Apply
Eighty percent of germs are spread by touch. Clorox® regular
bleach and our disinfecting products provide an affordable
and widely available solution that can literally help wipe
away the germs that cause some of the world’s most prevalent
bacterial and viral-born infections.

Liberally
Beeswax, botanical oils, herbs, flowers and
minerals. Burt’s Bees® natural personal care
products use the best ingredients nature
has to offer and each product is made with
The Greater Good™ in mind.

Pour
Responsibly
Better taste, less waste: It’s so easy to achieve with Brita®
water-filtration products. Just one Brita® filter and a reusable
water bottle can help eliminate the need for 300 half-liter
plastic bottles of water. And Brita® filters are recyclable
thanks to our partnership with Preserve®.

Clean
Preserve® is a registered trademark of Recycline, Inc.

Naturally
Setting the bar for a natural kind of clean. The Green Works®
brand makes natural cleaning possible through its line of
cleaning products using biodegradable plant-based cleaning
ingredients that get the job done.
2  The Clorox Company | 2010 CRR
Donald R. Knauss, Chairman and Chief Executive Officer

Safeguarding Family
Well-Being, Every Day
At The Clorox Company, a quote by Rose F. Kennedy is special to us all:
“Life isn’t a matter of milestones but of moments.”

This simple truth serves as a source of inspiration for the corporate mission statement that our employees
know by heart and take pride in:
“We make everyday life better, every day.”

Our mission statement is a reflection of our belief that each of our products has a meaningful impact on
consumers’ everyday lives. Our namesake bleach and disinfecting products help kill germs that make people
sick. Green Works® cleaners and Burt’s Bees® products address consumers’ growing desire for naturally
derived products. Brita® water filters make tap water taste great and help reduce bottled water waste.
And Hidden Valley® dressings helps kids eat their vegetables.

For generations, our products have been a part of the moments of day-to-day family life. While our lives are
accentuated by the occasional milestone, it is the everyday moments that nurture our families, define who
we are and give texture and meaning to our lives.

Our Focus on Family Well-being


Our mission statement is a reflection Our corporate responsibility initiatives tie back to our mission
statement and reflect what our people and products do best.
of our belief that each of our products That is why the cornerstone of our corporate responsibility
has a meaningful impact on consumers’ efforts — and our purpose — is:
“We safeguard family well-being, every day.”
everyday lives.
This statement supports our long-standing history of providing
everyday disinfecting products for use in homes, schools and
  The Clorox Company | 2010 CRR  3
Safeguarding Family Well-Being, Every Day

hospitals and for aid in global pandemics and natural disasters. It speaks to our employees’ volunteerism
and giving activities and our support for K-12 education, various charities and other community programs.
And it conveys our commitment to creating more sustainable products and our goal to play an even greater
role in public health through our infection prevention platform.

When we thought about who benefited the most from our social impact, we realized it was the whole family:
the nuclear family, the multigenerational family, the single parent family, the domestic partnership — even the
family pet. No matter what kind of family you have, our products and the partnerships we have developed —
from the American Red Cross and Sierra Club to Children’s Health Fund and the American Society for
the Prevention of Cruelty to Animals — are all focused on supporting your well-being.

The Five Pillars of Clorox’s Corporate Responsibility


We have defined our commitments in five critical areas:

Performance Achieve financial success with transparency, strong governance and corporate
responsibility embedded in our operations

Products Deliver responsible products, made responsibly

People Promote diversity and inclusion, opportunity and respectful treatment for everyone who
touches our business

Planet Shrink our environmental footprint while we grow our business

Purpose Safeguard family well-being, every day

These pillars represent areas where our business and social imperatives intersect. They serve as the foundation
of our corporate responsibility strategy, which we formalized this year.

We understand that now, more than ever, the choices we make can have a significant impact on people,
our planet and our communities. I believe our strategy and our commitments will guide our company
toward long-term, sustainable growth, while enabling us to positively contribute to the communities in
which we conduct business.

For The Clorox Company, corporate responsibility is an ongoing commitment and a journey. We are pleased
with our progress so far, but we have more to accomplish and a lot to learn as well. In the meantime, everyone
at Clorox is committed to earning your trust, every day.

Donald R. Knauss
Chairman and Chief Executive Officer

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

4  The Clorox Company | 2010 CRR


Making Everyday Life Better,
Every Day for Nearly a Century
Our History: Clean Beginnings Our stock began trading on the San Francisco
The Clorox Company was founded in 1913 in the Exchange. By the mid-1950s, we had established
San Francisco Bay Area city of Oakland, Calif. the largest market share of bleach in the U.S. and
We started with just one product, Clorox® bleach, have never let go of this leadership position.
made from the salt marshes of San Francisco
Bay. It was initially an industrial-strength Clorox Today: Global Reach
liquid germicide sold to Oakland laundries, Since our early days of manufacturing
breweries, walnut processing sheds and just one product, we have grown into
water municipalities and was delivered a global company, manufacturing and
by horse-drawn wagons. marketing some of consumers’ most
trusted and recognized brand names:
In 1916, we began bottling our namesake bleach and Clorox®-
a household solution of branded cleaning products; Green
bleach that quickly gained Works® natural cleaners; Poett®
popularity as an effective home care products; Fresh
laundry additive, stain Step® cat litter; Kingsford®
remover, deodorant and charcoal; Hidden Valley ®
disinfectant. In 1921, and K C Masterpiece ®
the first cargo of Clorox ® dressings and sauces; Brita®
bleach destined for Eastern water-filtration systems; Glad®
store shelves was loaded bags, wraps and containers; and
aboard ship at the Port Burt’s Bees® natural personal
of Oakland. care products. In fact, nearly
90 percent of the brands in
By 1928 — thanks to our global portfolio are the
extensive national No. 1 or No. 2 market-share
advertising and sales- leaders in their categories. With
promotion campaigns approximately 8,300 employees
stressing its purity, versatility worldwide, we manufacture
and dependability — Clorox products in more than two
bleach had become a common- dozen countries and market
place sight in American families’ laundry them in more than 100 countries. Clorox
rooms, kitchens and bathrooms. That year, the is headquartered in Oakland, Calif. and trades on the
company went public for the first time. New York Stock Exchange under the symbol “CLX.”

  The Clorox Company | 2010 CRR  5


Be
Accountable
Performance
Achieve financial success with transparency, strong governance
and corporate responsibility embedded in our operations

A cross-functional team helps ensure we are looking


at corporate responsibility from multiple perspectives.
From left to right: Brian Hayle, Deborah Napierski,
Kathryn Caulfield, Mary O’Connell, Aileen Zerrudo,
Chris Merhige, Janki Darity, Bill Morrissey, Sheldon
Quan, Victoria Jones and Greg van Buskirk.

6  The Clorox Company | 2010 CRR


CR OVERVIEW
Integrating Corporate Responsibility
Into Our Business
Trust is the foundation on which we have grown our business since Clorox was founded in
1913, and we understand it’s something we must continue to earn. That’s why we have stepped
up our efforts in corporate responsibility, establishing a formal strategy that is integrated into
our business and reflects the social and environmental issues we have identified as company
priorities based on internal and external feedback.

Assessment and Research Helps Identify Key Priorities


Our CR strategy and pillars are based on an extensive review and assessment of all facets of
corporate responsibility at Clorox involving the following inputs:
•M  ateriality assessment to better understand and prioritize our corporate responsibility
issues, including strengths and gaps, for the company and our stakeholders
• Global study to gain insights into the perspectives of a broad spectrum of external
stakeholders regarding Clorox products, communications and business practices, as
well as on global trends and issues
• Corporate responsibility and philanthropic/strategic cause benchmarking among our peers
to assess investment levels and focus of cause programs
• Third-party moderated interviews with Clorox employees to understand their perspectives
on our corporate responsibility initiatives, especially cause programs
• Formal development of a corporate responsibility strategy by a cross-functional team, including
Community Relations, Corporate Communications, Eco Office, Global Product Stewardship,
Global Strategic Sourcing, Government Affairs, Human Resources, Legal and Public Relations

Don Knauss (right) accepted the Foreign Policy Association’s


(FPA) Corporate Responsibility Award from Sierra Club Chairman
Carl Pope. The FPA recognized Clorox for making natural cleaning
mainstream through the launch of the Green Works® brand, as
well as for our longtime commitment to corporate responsibility.

  The Clorox Company | 2010 CRR  7


CR OVERVIEW

Integrating Corporate Responsibility


Into Our Business
Clorox Mission
We make everyday life better, every day

Corporate Responsibility Goals


•Contribute to economic profit growth
•Positively impact the perception of our brands and company
•Contribute to employee engagement
•Positively impact millions of families, globally

Strategies Commitments Recent Performance Highlights


Performance • Integrate CR into our corporate strategy, with board oversight; • Delivered strong FY10 financial performance.
Achieve financial success with continue to adopt best practices. • Developed formal CR strategy integrated into
transparency, strong governance and • Increase transparency of company policies, practices and our business.
CR embedded in our operations product ingredients. • Recognized for corporate governance practices.
• Communicate proactively and respond to stakeholder • Established formal “Ingredients Inside” product ingredient
reports and inquiries regarding CR. communication program in the U.S. and Canada.
• Continue to strengthen strong enterprise risk management
programs and capability, with board oversight.

Products • Continue to meet strict science-based safety criteria, while • Formalized growth platforms addressing infection
Deliver responsible products promoting alternative methods to safety testing. prevention and sustainability.
made responsibly • Provide best-in-class disinfecting solutions. • Purchased Caltech Industries, Inc. to further expand
• Provide plant-based alternatives to conventional our business in health care settings.
product offerings. • Introduced Burt’s Bees® natural acne care and toothpaste
• Reduce environmental impact of our product offerings. and Green Works® natural laundry products.
• Halfway to goal of making sustainability
improvements to 25 percent of product portfolio
by 2013 (versus 2009 baseline).

People • Require employee certification of compliance with company • Met diversity targets, with U.S. representation of
Promote diversity, opportunity and policies on diversity, human rights and labor issues. managers and above rising to 22 percent for minorities
respectful treatment for everyone • Assign accountability for CR commitments. and 40 percent for women.
who touches our business • Drive supplier code of conduct, supplier diversity and add • Established supplier diversity goal to grow expenditure
eco criteria to supplier selection. to 5 percent by 2015.
• Increase global participation in employee resource groups. • Introduced global supplier code of conduct.

Planet • Expand public environmental commitment statements. • Developed an environmental sustainability strategy
Shrink our environmental footprint • Reduce GHG, energy, water and solid waste in our linked to Clorox’s business strategy.
while we grow our business manufacturing and distribution footprints. • S ince 2007, reduced GHG emissions by 7 percent,
• Embed eco criteria in core business processes. energy use by nearly 5 percent, water use by more than
• Drive environmental sustainability throughout the workplace. 8 percent and solid waste by 9 percent (per case sold).
• Developed sustainability programs in the workplace,
including establishing eco employee volunteer groups,
switching company cars to hybrids and securing
LEED-EB platinum certification for our corporate office.

Purpose • Implement a global strategic cause platform focused on • In FY09 and FY10 alone, donated more than $7 million
Safeguard family well-being, infection prevention. in cash grants to nonprofits, schools and colleges;
every day • Build on The Clorox Company Foundation’s focus on K-12 donated more than $16 million worth of products to
education in underserved communities. nonprofits and disaster relief efforts.
• Enhance engagement and extend impact through employee,
customer and community involvement.

8  The Clorox Company | 2010 CRR


CR OVERVIEW
Different Perspectives Inspire Progress
Toward a Common Goal
At Clorox, our CEO and a steering committee of senior leaders from various areas of the company oversee
corporate responsibility. While each person brings a unique perspective to shaping CR for Clorox, the team
shares the common goal of driving progress against our commitments.

What is Clorox’s Benno Dorer: SVP–GM, Cleaning Division Jackie K ane: SVP–HR & Corporate Affairs
approach to corporate It’s having a strategy that goes beyond compliance Another area in which corporate responsibility
responsibility? and risk mitigation to deliver real value to our creates value is employee engagement. We hear
company and to the stakeholders who touch our time and again that Clorox people are proud to
business, including shareholders, business partners work here because they know we live by our
and communities. For example, one of our business core value of doing the right thing. For example,
growth platforms — infection prevention — leverages employee volunteers around the world have stepped
the strength of our disinfecting capabilities to up to support our environmental sustainability
address public health concerns around seasonal efforts. We now have a formal waste reduction
flu, pandemics and the rising incidence of hospital- program at our headquarters, and employees at
acquired infections. While it’s a business driver other Clorox locations are conducting “dumpster
for the company, it has a meaningful social dives” to assess how much waste can be diverted
dimension as well. from landfills.

Clorox’s corporate responsibility strategy and commitments are governed by our CEO and CR steering committee
made up of members of Clorox’s executive committee. The Clorox board of directors provides oversight.

Left to right: Wayne Delker, senior vice president – chief innovation officer; Laura Stein, senior vice president –
general counsel; Benno Dorer, senior vice president – general manager, cleaning division; Jackie Kane, senior vice
president – human resources and corporate affairs.

  The Clorox Company | 2010 CRR  9


CR OVERVIEW

Different Perspectives Inspire Progress Toward a Common Goal


Where have you made Laura Stein: SVP–General Counsel Jackie K ane
the most significant Having a formalized corporate responsibility We’ve made progress on our diversity initiatives.
progress? strategy was an important step. We now have We exceed the U.S. Census in all categories
a strategy that is integrated into our business and have been recognized for having a strong
and a framework to hold us accountable for representation of women in management. The
our commitments, goals and metrics. 2009 UC Davis Study of California Women
We’ve also received positive feedback on Business Leaders ranked Clorox 14th out of
“Ingredients Inside,” our product ingredient 400 companies in California for having women
communication program that addresses consumers’ in director and executive positions. In addition
interest in knowing what goes into the products to employee-related diversity initiatives, we’re
they use in and around their homes. We worked accelerating our efforts in multicultural marketing
closely with the Sierra Club to take this step and and product development to address the unique
continue to engage with NGOs, industry associa- needs of different consumer segments.
tions and regulatory agencies on how our program,
and the product ingredient communications
efforts of the industry as a whole, can evolve.

How are you addressing Wayne Delker: SVP–Chief Innovation Officer Clorox 2® stain fighter and color booster we are
consumer interest in Driving growth behind sustainable products reducing the amount of water used in manufac-
sustainable products? is a top priority. We continue to invest in our turing this product by 54 percent, resin needed
natural platform with the Green Works® and for bottles by 36 percent and diesel for shipping
Burt’s Bees® brands, and our increased focus on by 160 million gallons per year. We have a public
innovation is also looking at sustainability in goal to make sustainability improvements to
terms of product development and packaging. 25 percent of our products by 2013 (versus base
For example, by concentrating our formula for year 2009).

What’s your response to Wayne Delker We developed Green Works® products


concerns about cleaning Product safety is a top priority at Clorox. For because we recognize a growing number of
product safety? And how years we have applied sound scientific evidence consumers prefer naturally derived cleaning
do you reconcile having a to our product evaluation processes. Before we products and we wanted to give them a choice.
portfolio that includes bleach bring any product to market, our Global Product We are proud of the consumer response to the
and natural products? Stewardship organization evaluates a product’s Green Works® line and its position as the No.
safety, quality and regulatory compliance, looking 1 natural home care brand. We are also proud
at human and environmental health. We take of the role bleach has played in public health
great care in choosing ingredients for our products. for generations. It has a history of use in places
For example, we have guidelines against the use where killing germs is critical: hospitals, nursing
of such ingredients as alkylphenol (APs) or homes, child care centers, schools, restaurants
alkylphenol ethoxylates (APEs), phthalates and and more. Clorox® regular bleach remains one
synthetic musks. of the most affordable and effective disinfectants
available worldwide.

What is your biggest Laura Stein Benno Dorer


challenge for corporate One of our challenges is that we are establishing Another challenge we’re exploring is expanding
responsibility in the a comprehensive data collection system for CR – our infection prevention platform into our social
future? particularly in our international locations. As cause efforts. We have a long history of donating
we continue to grow our presence outside the bleach and other disinfecting products to help
U.S., we will need to continue to build these with disaster-relief efforts globally, particularly for
processes so that we can expand programs like sanitizing water. In addition to being there when
product ingredient communication and our disaster strikes, I’d like to see us working more
overall CR reporting. closely with public health agencies, schools and
NGOs to help support prevention of infection on
a global level. This way our social cause focus for
the company will be more strategically linked to
our core strengths as a business.

10  The Clorox Company | 2010 CRR


PERFORMANCE
The Clorox Company
At-A-Glance Fiscal Year Ending June 30, 2010

Sales By Category

Home Care
International
16%
21% K

10% Laundry
Natural Personal Care
3% J

Water Filtration 4% I
4% Auto
3% H
9%
Away From Home
Dressings & Sauces
13% G
7%
10% Bags & Wraps F
Cat Litter

Charcoal

Sales $5.53 billion


Employees 8,300
Manufacturing Plants 41
Markets Served 100+

Please see The Clorox Company 2010 Annual Report at www.TheCloroxCompany.com for more information on our company’s performance and goals.

  The Clorox Company | 2010 CRR  11


PERFORMANCE

The Clorox Company: At-A-Glance

3-Year Total Shareholder Return: Since Inception of Centennial Strategy

10% Clorox: 10%


Peers: 4%
0%

-10%

-20%
S&P 500: -27%
-30%

-40%
2007 2008 2009 2010

June 30, 2007, through June 30, 2010 (assumes reinvestment of quarterly dividends).
Peer companies: An average of 18 consumer packaged goods companies, excluding Clorox,
used for financial benchmarking purposes.

Net Cash Provided


Net Sales by Operations Net Earnings
(in billions) (in millions) (in millions)
$603
$5.45 $5.53 $819 $537
$5.27
$738 $501
$4.85 $709 $730 $461

2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010

Diluted Net
Earnings Per Share ROIC1 Economic Profit 2
(in dollars) (in millions)
27%
$4.24 $433
$3.79 23% $379
21%
22% $363 $376 1.   Return on invested capital (ROIC) is a non-GAAP measure
$3.24 $3.23 that is calculated as earnings before income taxes, excluding
restructuring and asset impairment costs and interest expense;
computed on an after-tax basis as a percentage of adjusted
average invested capital. See reconciliation of ROIC in Exhibit
99.2 on Form 8-K filed on August 3, 2010, for the fiscal year
ended June 30, 2010.
2.   Economic profit (EP) is used by management to evaluate
business performance. EP represents earnings from continuing
operations before income taxes, noncash restructuring-related
and asset impairment costs, and interest expense, after tax,
less capital charge. See reconciliation of EP in Exhibit 99.3 of
the company’s Annual Report on Form 10-K for the fiscal year
ended June 30, 2010.
2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010

12  The Clorox Company | 2010 CRR


PERFORMANCE
Centennial Strategy Guides
Clorox Toward ‘True North’
At Clorox, our “True North,” a shared destination for all our people, is about delivering double-digit
average annual economic profit growth by the company’s 100th anniversary in 2013. We’ve developed
four key strategies to get there:

1.  Be a high-performance organization of enthusiastic owners


Our No. 1 strategy is about Clorox people. We have great people. We know that if everyone is
engaged on an emotional and rational level and working well together, we can accomplish just
about anything. It starts by following some of the principles of high-performance teams. We are
committed to the business and to each other, owning our individual performance, as well as the
team as a whole. We also ask employees to think of the company as his or her own business.
How would they feel if their name were on the sign in front of the building? This is our Clorox.
Everyone is asked to speak up and contribute if they want their company to succeed.

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


There are three “moments of truth” when a consumer can choose our product; we call these the 3Ds:
Desire, Decide and Delight.

Desire: Creating demand for our product


Our focus on consumer insights helps us understand what consumers really care about in their
everyday lives. This helps ensure that the ways we “talk” to consumers about our products —
in print, on TV, on the web, in the store – address their needs.

Decide: Making the choice at the store shelf


Our success in the store, where most purchase decisions
are made, is driven by our strong partnerships with retail
customers and in-store communications that help address
shoppers’ needs. Can shoppers find the product category?
Does our brand stand out from others? Which product
has the best combination of quality and price? Our
expertise in consumer insights and category advisory
services help optimize the shopper experience with plans
for assortment, merchandising, pricing and shelving.

Delight: Building brands consumers love


Once the product is in the home, there’s still a critical test:
how does it perform? Our goal is to have products that are
consistently highly rated and exceed the consumer’s expectations.

  The Clorox Company | 2010 CRR  13


PERFORMANCE

Four Key Strategies

3.  Accelerate growth both in and beyond the core


We’re constantly looking to enhance the performance of our existing brands. For example, we can
branch into new categories, where our familiar brands can carry a lot of weight. We can increase
or extend into new channels where we sell our products, such as selling to hospitals and other
healthcare facilities. We can also expand the range of products we offer in the countries where
we do business.

We’re also strategically tapping into consumer “megatrends” to guide us in our investments in
innovation or acquisition of new businesses where we see potential for growth.

4.  Relentlessly drive out waste


Our focus on reducing waste helps drive
Megatrends Point the Way to real competitive advantage for Clorox. For
More Growth example, our ability to save money helps
to offset inflation and capture savings that
We’re leveraging four consumer megatrends
can be used to invest in growth. Becoming
that drive key areas of our corporate strategy,
more efficient in how we do business helps
guiding our investments to drive growth of
us save time, money and resources that
our business, including product innovation,
can be redeployed to work that drives the
marketing communications and retail activities.
highest value for the company.
Health and Wellness Addressing the global
need for healthy homes and public places,
including schools and hospitals
Clorox ranked No. 7 among our top
Sustainability Focusing on consumers’ strategic partners in the most recent
personal environments — what’s in them,
Cannondale Associates PoweRanking®*
on them and around them
survey, which asks retailers to rank
Multicultural Addressing the unique needs more than 100 manufacturers on a
of multicultural consumers number of dimensions.

Affordability/Value Delivering high value to *PoweRanking ® is a registered trademark of Cannondale Associates.


consumers through a balance of product
performance and price

14  The Clorox Company | 2010 CRR


PERFORMANCE
Understanding, Sharing and  Taking
Action From Stakeholder  Engagement
It’s important that we understand the perceptions, concerns and priorities of everyone that touches our business.
That’s why we actively engage with a variety of stakeholders through open dialogue or through partnerships
and board and committee memberships. Stakeholder engagement enables us to listen to, learn from and
exchange ideas with people on topics that impact our business and industry, as well as on global issues such
as public health and sustainability.

We also engage with industry trade associations and all levels of government around the world on policy,
legislation, regulatory and related matters that have the greatest impact on our business.

We engage with our stakeholders in many • Communities: We make a positive impact on our
different ways. For example: communities through The Clorox Company
• Shareholders: We hold annual meetings during Foundation’s support of K-12 education and through
which we inform our shareholders about our employee volunteerism. We also respond to our
company strategy, financial performance and communities in times of natural disaster by providing
business growth objectives. We also report our financial aid and donating trash bags, bleach and
performance through such communications as other disinfecting products to help with clean-up
our quarterly conference calls and annual report. efforts and sanitization needs.
• Employees: We conduct regular employee Clorox is also a member of organizations that
engagement surveys where we look at engagement are related to our business and priority issues.
in two ways: rational and emotional. In other Public Health: Association for Professionals in
words, we ask employees if both their heads and Infection Control and Epidemiology, Inc (APIC),
hearts are in the game. We believe a person Society for Healthcare Epidemiology of America
who is engaged emotionally and rationally will (SHEA), American Society for Healthcare and
be better able and willing to perform to their Environmental Services
potential. We also conduct quarterly, global
Industry: Consumer Specialty Products Association,
“town hall” meetings where we share important
American Cleaning Institute, Grocery Manufacturers
company information and invite employees to
Association
ask questions or share thoughts with our CEO
and other executives. Environmental Sustainability: U.S. Environmental
• Consumers: We talk to consumers through in-home Protection Agency Climate Leaders, Design for
studies, focus groups and surveys to better under- Environment and Waste Wise and Smart Way Shipper
stand how they use our products so we can Programs; Sustainable Packaging Coalition; Natural
continue to deliver high-quality products that Products Association
address their needs. Diversity/Inclusion: Executive Leadership Council,
• Public Health Community: We are active Hispanic Advisory Council, Minority Corporate Counsel
participants in a number of public health Association, Out & Equal Workplace Advocates,
organizations because we believe our disinfecting National Minority Supplier Development Council
capabilities can help make a positive difference in Community: Boston College Center for Corporate
issues such as infection control. Citizenship, Bay Area Corporate Volunteer Council,
• NGOs: We meet with NGOs on a variety of issues, Entrepreneur’s Foundation, Northern California
including sustainability and product safety. Grantmakers

  The Clorox Company | 2010 CRR  15


PERFORMANCE

Governance and Ethics


World-Class Governance
Clorox maintains rigorous corporate governance practices and internal controls with oversight by our board
of directors, chairman and chief executive officer, chief financial officer, general counsel and the other
members of the company’s executive committee. The board’s responsibility includes overseeing management’s
operations of the company’s business, monitoring the effectiveness of management policies and decisions,
including the development and execution of its strategies, risk management activities and providing for
management succession.

The quality of our corporate governance is rated stronger than 94.3 percent of S&P 500 companies and
98.5 percent of household and personal products companies according to RiskMetrics Group, which has
rated more than 7,400 companies worldwide on corporate governance practices.*

Our board of directors is composed of individuals Management Development and Compensation


who, on the basis of their knowledge and experience, Committee oversees management development
make valuable contributions to the overall conduct and succession planning processes and approves
of the business. The nominating and governance compensation for executive management and various
committee is responsible for developing and recom- benefit plans for the company as a whole.
mending board membership criteria to the board for Nominating and Governance Committee oversees
approval and periodically reviewing these criteria. the company’s corporate governance practices, director
Board candidates, including incumbent directors, nominations and board evaluation. Also oversees the
are considered based upon various criteria, including company’s compliance with certain legal and regulatory
their broad-based business skills and experiences, requirements and discusses with management the
prominence and reputation in their professions, status of pending litigation, environmental issues
global business and social perspective, concern and other areas of oversight as may be appropriate.
for the long-term interests of the stockholders, and
personal integrity and judgment. In addition to the Executive Compensation
board and committees’ conducting self evaluations The board of directors’ management and compensation
on an annual basis, the nominating and governance committee, composed entirely of independent
committee reviews general qualifications and expertise directors as required by the NYSE listing standards
of each board member on at least an annual basis. and consistent with SEC rule 16b-3, reviews the design
and implementation of our executive management
Committees of the Board of Directors
program. The committee applies a rigorous and
 xecutive Committee acts for the board in certain
E
balanced approach to executive compensation,
matters when the full board cannot be convened.
ensuring that compensation is tied to current and
Audit Committee oversees the integrity of long-term company performance; is sufficient to
financial statements, the company’s accounting attract and retain high-caliber, experienced leaders;
and financial controls, including independent and aligns the interests of our executive officers with
internal auditors. the interests of our stockholders; and is financially
Finance Committee oversees and makes efficient, resulting in a reasonable level of costs
recommendations to the board with respect to that are supported by performance.
the company’s major financial policies and actions,
including capital structure and borrowing. * RiskMetrics, December 2009

16  The Clorox Company | 2010 CRR


PERFORMANCE
Our stakeholders are welcome to communicate Conventions, outlines our expectations
directly to an individual board member, a board that suppliers around the world share our
committee or to the board of directors as a whole.* commitments in the areas of human rights
and labor, health and safety, the environment,
Additional details on Clorox’s board of directors, including and business conduct and ethics. Clorox’s standard
topics such as qualifications, performance evaluation supplier agreements require certification of material
and how we address potential conflicts of interest can compliance with the supplier code of conduct, including
be found at: www.CloroxCSR.com/guidelines. our human rights clause that prohibits such actions as
harassment or inhumane treatment, discrimination
Doing the Right Thing
and involuntary or child labor. Clorox’s global
Clorox’s code of conduct establishes the company’s
supplier code of conduct is available in English,
ethical and legal standards of behavior and business
Spanish and Chinese.
practices applicable to all our directors, executives,
employees and contractors around the world. We Clorox’s supplier code of conduct can be found
require all Clorox board members, employees, as online at www.CloroxCSR.com/business-partners.
well as contractors, to undergo training and certify
*Correspondence to our board of directors should be sent to our
compliance with our code. Covering such topics as
headquarters address: The Clorox Company, c/o Secretary,
environmental safety and compliance, human 1221 Broadway, Oakland, CA 94612-1888.
rights, workplace behavior, antidiscrimination,
harassment prevention, bribery and anticorruption,
and political contributions, our code embodies
Clorox’s commitment to doing the right thing OUR VALUES
every day. Clorox provides code of conduct training At Clorox, our strong corporate values not only guide
us in achieving widespread success, but also are the
approximately every 18 months on a rolling basis.
foundation of everything we do.
Training is conducted in English, Spanish and
Chinese. In fiscal year 2010, 81 percent of all Do the Right Thing
The long-term health of our company depends on our integrity.
Clorox employees completed compliance training,
At Clorox, we have a tradition of honesty, fair dealing and ethical
which includes our code of conduct.
practices. We strive to use facts to determine the right thing to
do, and communicate openly about our choices.
Clorox has global compliance hotlines which allow
our employees to anonymously raise questions or Stretch for Results
Our success is measured by our ability to consistently win
concerns or report misconduct. We protect any
in the marketplace by exceeding the expectations of our
employee who reports misconduct in good faith.
consumers, customers, shareholders and each other.

Clorox’s code of conduct can be found online at Take Personal Ownership


www.CloroxCSR.com/conduct. Progress is not only driven by people who take personal
ownership of delivering results, but by making the process
Working With Responsible Partners to achieve these results as quickly, simply and effectively
as possible. Each of us has a role in helping to ensure we
Our commitment to ethical business practices and
deliver excellent results and achieve our goals.
treating people with dignity, respect and equal
opportunity extends to our business partners. Work Together to Win
Our success depends on productive collaboration among Clorox
Clorox’s supplier code of conduct addresses business- people, between our company and our business partners, and
among our company and our communities. While individual
practice standards of our third-party suppliers, their
ownership and contributions make a difference, teamwork is
parent companies and affiliates. Our code, based on
essential to achieving even greater results.
the International Labour Organization Core Labor

  The Clorox Company | 2010 CRR  17


Be
Trusted
Products
Responsible products
made responsibly

18  The Clorox Company | 2010 CRR


PRODUCTS
Our Products Delight Consumers
Trust is the foundation of our business and the basis for every relationship formed between our brands
and consumers. All our products must be made responsibly and deliver on our promise of getting the job
done. We have been making high-quality products for close to 100 years with that in mind. Whether
you’re using Clorox® regular bleach, Kingsford® charcoal, Fresh Step® cat litter or Green Works® products,
you can be sure that our commitment to quality, safety and efficacy go into everything we do. Our retail
partners and consumers should never expect anything less. By upholding this trust, we fulfill our mission
to make everyday life better, every day.

For more than a decade, the American Customer Satisfaction Index has ranked Clorox
among the top of our competitor group. This index, based on an economic model from the
University of Michigan, measures the quality of our products as experienced by consumers
and retail customers.

In addition, nearly 90 percent of our global brands rank as the No. 1 or No. 2 market-share
leaders in their respective categories, further underscoring the value consumers place on
our brands.

Understanding What Consumers Want


Our ability to satisfy consumers and deliver true value is largely a result of the significant
investment we’ve made in getting to know them at a deep and meaningful level. Through
the work of our Global Insights organization, we gain a 360-degree view of the consumer,
learning about her relationships with our brands, which product qualities really matter to
her and how she shops for our products. These insights serve as the foundation of our
Desire, Decide and Delight strategies, enabling us to address consumers effectively in
marketing communications, work with our retail partners on enriching the consumer
experience in store and develop products that consumers will love.

Anticipating Future Needs


A strong culture of innovation — one in which new thinking leads to new product solutions
that offer improved performance, convenience and affordability to consumers — is another
critical success factor in our ability to meet customer expectations. In recent years, we have
accelerated our efforts behind innovation, particularly in the infection prevention and
wellness and sustainability arenas.

  The Clorox Company | 2010 CRR  19


PRODUCTS

Our Products Delight Consumers


We are increasing the pace of innovation through a more open and transparent process that
extends beyond our own teams of scientists and marketers. CloroxConnects, for example,
is an online resource through which individuals can share their own inventions. And
partnerships with Edison Nation and Evergreen IP, companies that facilitate external idea
solicitation and evaluation, are also helping to bring in more new ideas. For more information
visit www.thecloroxcompany.com/innovation.

Our efforts to accelerate innovation are paying off. We are sustaining annual growth from new
products in the range of 2 percent to 3 percent of total company sales. We’re meeting our
benchmarks for the percent of sales from products that have what we call “60/40” product
superiority, the ratio by which we measure consumer preference of our products against
competing products. Our 60/40 performance has grown from 7 percent in fiscal 2004 to
47 percent in fiscal 2010, which puts us on a path to exceed our goal of greater than
50 percent by 2013.

Marketing Our Brands Responsibly


We are committed to marketing our brands in a responsible and truthful manner, adhering
to the laws and guidelines of the Federal Trade Commission and other relevant governing
bodies. We strive to communicate the benefits, performance and attributes of our products
accurately and directly, with claims that are substantiated. It is also our policy to create and
purchase advertising in such a way as to reach the designated target audience with maximum
efficiency, using advertisements and media that are in keeping and consistent with the character
and the values of our company. Our marketing communications avoid situations that exploit
race, religion, national origin, sexual preference, overt sex or gratuitous violence.

20  The Clorox Company | 2010 CRR


PRODUCTS
T H E BL E AC H CYC L E

SALT

MUNICIPAL BLEACH
TREATMENT MANUFACTURE
SEPTIC TANK

PRODUCT USE

The Power of Bleach


Anyone who has ever witnessed the power of bleach

SALT of the Earth to transform laundry from soiled white to bright, clean
white might be surprised to find that it is simply a matter
of salt and water at work.
Bleach is an essential product for whitening laundry, cleaning homes and Clorox® regular bleach traces its origins to the
disinfecting household and commercial surfaces. It sanitizes household items saltwater ponds of San Francisco Bay early in the 20th
such as kids’ toys, baby bottles and pet bowls. You can even use bleach to keep century. Using the abundant brine available in the
ponds, company inventors ran an electrical current
cut flowers fresher longer. Most important, bleach continues to play a vital role
through a saltwater-based compound to produce
in protecting public health — it is one of the most effective disinfectants for sodium hypochlorite bleach. The resulting product
killing germs that can cause life-threatening infections such as Clostridium was sold to industrial businesses for use as a
difficile (C. diff), methicillin-resistant Staphylococcus aureus (MRSA) and the disinfectant. Soon, a less concentrated version
flu virus, including H1N1 influenza. became a household cleaning staple.
During the past century, liquid bleach has
performed some very important tasks. In 1969, the
There are many misperceptions about bleach, possibly due to the misnomer
Apollo space capsule was disinfected with bleach
“chlorine bleach.” Clorox® regular bleach, in fact, does not contain free chlorine. upon its return to Earth. During World War I – in the
Our regular household bleach is made up of a 6.0 percent simple solution days before penicillin – the lives of some wounded
of sodium hypochlorite (oxygenated salt) and water. Upon use as a laundry soldiers were saved by the antibacterial properties
additive or disinfectant, 95 to 98 percent of bleach rapidly breaks down into of bleach. During World War II, bleach was used again
to destroy bacteria. Today, bleach continues to be
salt and water. Municipal wastewater treatment or septic systems effectively
used to purify water and help control contamination
treat the remaining 2 percent to 5 percent of by-products. in times of emergency, such as natural disasters.

Household bleach does not contaminate water by producing dioxins. In addition,


the European Commission’s Scientific Committee on Health and Environmental Transitioning US Operations
Risks conducted a study on sodium hypochlorite that assessed all foreseeable From Chlorine to High-Strength
scenarios in which trihalomethanes could be formed. These scenarios showed Bleach
no significant adverse environmental impacts involving sodium hypochlorite*. While Clorox® bleach
Studies also have shown that there is no exposure to trihalomethanes in quantities does not contain free
chlorine, chlorine has
above even the toughest standards such as California Proposition 65 Safe Harbor
been used as a raw
levels as a result of using household bleach. material in household
bleach manufacturing.
For nearly 100 years, Clorox® regular bleach has been a staple in helping to In 2009, we began
keep whites white and helping to rid our homes of germs that can cause illness. transitioning our U.S.
Given its many practical household uses and its global disinfecting applications, bleach manufacturing
processes to the use of high-strength bleach instead
we are confident that Clorox® regular bleach will continue to be a dependable,
of chlorine. This change helps us to better ensure
salt-of-the-earth product for years to come. Visit www.FactsAboutBleach.com the supply of raw materials and provides another
to learn more. layer to our industry-leading security practices.

*European Union Risk Assessment Report: Sodium Hypochlorite, November 2007.

  The Clorox Company | 2010 CRR  21


PRODUCTS

Infection Prevention:
Our Heritage. Our Future.
It is seemingly harder than ever to stay healthy. The seasonal flu, emergence of antibiotic-resistant
superbugs, infectious diseases such as severe acute respiratory syndrome (SARS) and H1N1
influenza underscore global health threats and the potential for pandemic outbreaks. We are
reminded of the important role disease prevention can play in public health management.

In order to prevent disease, however, it is essential to understand how it spreads. The fact
is that 80 percent of germs are spread by touch.* Consider that a person can touch up to
300 surfaces in 30 minutes alone and you begin to understand the challenge of stopping
the spread of infection.

Of course, germs are not homebound organisms. The threat they pose in health care settings,
in particular, is grave. Hospital-acquired infections strike one in 10 patients, are linked to
99,000 deaths annually in the U.S. and cost an incremental $10 billion in health care costs.†
An aging population is expected to add to this problem.

* Phillip M. Tierno Jr., Ph.D., in his book, The Secret Life of Germs (November 2001).
† U.S. Centers for Disease Control: The direct medical costs of healthcare-associated infections in U.S. hospitals and the benefits of prevention (2009).

22  The Clorox Company | 2010 CRR


PRODUCTS
Infection Prevention

Clearly, surface disinfection is essential to preventing •D istributed, in partnership with the National
the spread of infection. Given our strong heritage in Education Association, canisters of Clorox®
manufacturing best-in-class disinfecting products, disinfecting wipes to 100,000 U.S. teachers
Clorox has a compelling value proposition to put in four days
forth in this cause. •E nhanced www.Clorox.com with a new section
that provided tips for preventing the spread
We believe our disinfecting products and their of H1N1
effectiveness at killing staph, salmonella and E. coli, •C reated educational materials for our customers
influenza viruses, rhinovirus (one of the causes of the to distribute to shoppers in their stores
common cold) and numerous other harmful germs • Partnered with the American Red Cross to develop
give us a unique responsibility. The swift response of public service announcements about flu preparedness.
Clorox during the H1N1 pandemic of 2009 is a good
example of the role we can assume in times of public Insights gained from this experience, as well as the more
health crisis. During this time, we: predictable seasonal flu outbreaks, reinforce the need for
infection prevention. In a world that becomes more closely
• Worked 24/7 to satisfy demand in Mexico connected every day, there is little doubt that infection
for disinfecting wipes, which spiked 30 times control will be an ongoing global issue well into the future.
higher than normal during the initial outbreak

Clorox and Basketball Star Grant Hill


Team Up to Educate About MRSA
Of all the “superbugs”– those germs that have developed
immunity to a wide number of antibiotics – methicillin-
resistant Staphylococcus aureus (MRSA) is one of the
most well known. In 2003, Grant Hill developed an MRSA
infection on his ankle and grew seriously ill before making
a full recovery six months later.
Since 2008, we have been partnering with Grant on
the STOP MRSA Now campaign to increase information
about the illness through coalition-building activities,
public service announcements and an informative website.
The campaign also provides practical steps people can
take to prevent the spread of MRSA, such as disinfecting
hard surfaces with a bleach solution. Sodium hypochlorite,
the active ingredient in bleach, helps prevent the formation
of superbugs such as MRSA. It completely destroys a
germ’s cellular structure, rendering it unable to mutate
and transform into a superbug.
For more information visit www.stopmrsanow.com.

  The Clorox Company | 2010 CRR  23


PRODUCTS

Play It Safe, Every Day


Rigorous Standards Ensure Products Are Safe
Product safety is the cornerstone of trust between our brands and consumers. Indeed, all Clorox products
must be assessed for human and environmental health risks before making it onto store shelves and,
ultimately, into consumers’ homes. To this end, we maintain a rigorous, science-based assessment process
to ensure our products are safe when used as directed.

For our cleaning products, this process begins in the Using nonanimal product safety evaluations is
research and development phase where we analyze the norm at Clorox. Animal testing is a very rare
each of the materials that go into making a product. exception, used only when required by law or
when all other efforts have been exhausted to
The next step is to initiate assessments of environmental establish a product’s safety profile; such instances
and human safety. Scientists review each ingredient to require senior management approval, confirming
determine its environmental impact, while toxicologists there is no other way to proceed. Through our
review available data for any health concerns. Also, involvement with John Hopkins Center for
as part of this phase, we conduct a global regulatory Alternatives to Animal Testing, the Institute for
review to determine if any countries have limitations In Vitro Sciences and other efforts, we actively
on the ingredients and formulations in question. support developing alternative testing methods.
Ultimately, we intend all of our product development
Product safety analysis also includes a comprehensive
processes to satisfy all our evaluations, using only
exposure and risk assessment for all ingredients.
alternative methods to demonstrate the safety
This analysis considers both the short- and long-term
profile of a product and we’re actively working to
impacts of these materials from incidental and
that end.
accidental exposure, as well as the potential routes of
exposure such as skin, eye, ingestion and inhalation. Once a product leaves a store shelf, we ensure that
product labels clearly provide the information
During the product evaluation process, if we identify
necessary to safely use, store and dispose of the
an environmental or health risk that cannot be
product and its packaging. All of our product
sufficiently mitigated, the formulation is halted.
labels include clear directions for use, precautionary

Cris Spillet and other R&D employees thoroughly test and


analyze all product ingredients to ensure Clorox products
are safe when used as directed.

24  The Clorox Company | 2010 CRR


PRODUCTS
Play It Safe, Every Day

statements, first aid measures and storage and


disposal instructions. Additional safeguards
like child-resistant packaging are included
where appropriate.

Material safety data sheets (MSDS) provide guidance


for and support the application of our products.
Each Clorox cleaning and disinfecting product in Strict Fragrance and
the U.S. and Canada has an MSDS that is available
at www.CloroxCSR.com/products-safety.
Preservative Guidelines
We maintain strict guidelines about the use
Regulatory Compliance
of fragrances and preservatives in our formulas.
All products manufactured and distributed are
We require all fragrances purchased from third-
subject to local, state, federal and other regulations.
party suppliers to comply with Research
To comply, we perform safety tests, meet labeling
Institute for Fragrance Materials (RIFM)
guidelines of regulatory agencies and adhere to
guidelines and recommendations, as well as
applicable regulations for all ingredients and
International Fragrance Association (IFRA)
ingredient formulations used in our products. We
standards. RIFM and IFRA define and regularly
also ensure we meet or exceed local regulatory
update the safe level of use for individual
requirements in all markets where we operate or
fragrance ingredients. Fragrances must not
sell our products.
contain Alkyphenols (AP) or Alkylphenol
U.S. products classified as antimicrobials, such Ethoxylates (APE), including, but not limited
as disinfectants or sanitizers, which represent to, octylphenol ethoxylates and nonylphenol
approximately 27 percent of our U.S. product ethoxylates, musk ambrette, diacetyl, musk
portfolio, are subject to registration with the xylol and phthalates.
U.S. Environmental Protection Agency (EPA).
These formulations undergo detailed chemistry, Preservatives are necessary in some formulas
efficacy and toxicology review by the EPA before to prevent the growth of microorganisms such
approval for market. The EPA strictly governs as bacteria and mold. In such cases, we take
the labeling and packaging of these products, with great care in the concentration levels of any
predetermined criteria based on the nature of preservative that we use. In the U.S., we limit
the product. preservative levels to those approved by the EPA,
typically in a range that does not exceed 0.1 per-
cent to 0.2 percent and is well below the threshold
for skin sensitization. Our products do not
contain parabens, a class of preservatives the
scientific community has been scrutinizing for
possible carcinogenicity and estrogenic effects.

  The Clorox Company | 2010 CRR  25


PRODUCTS

Leading the Industry in Ingredient Transparency


Today, consumers want to know what goes into the products they use in and around their
homes. We understand and recognize their desire for peace of mind regarding the substances
that may come into contact with their families.

The Clorox Company was the first in the cleaning industry to commit to voluntary ingredient
communication in the U.S. and Canada. We began this process in 2008 with our Green Works®
line of naturally derived cleaners, which feature ingredients on labels. In 2009, we began listing
the ingredients of our household and
commercial cleaning and disinfecting products on our corporate website. We added auto care
products and an extensive glossary of terms when we updated our “Ingredients Inside” program
as part of our corporate responsibility website launch in February 2010.

Our ingredient communication program has established Clorox as an industry leader in this
space. We continue to actively work with industry and regulatory associations on product
ingredient transparency.

To view the list of ingredients for Clorox’s cleaning, disinfecting and


auto care products, visit www.CloroxCSR.com/ingredients-inside.

26  The Clorox Company | 2010 CRR


PRODUCTS
Mainstreaming Natural Products
As recently as a few years ago, if you wanted to purchase a tube of natural toothpaste or a bottle
of natural glass cleaner, you likely had to find a natural foods store. If you lived in a rural area,
then you might simply have been out of luck.

Today, natural cleaners are no farther away than your local grocery store or mass retailer.
With our Green Works® line of naturally derived cleaners, we were the first major consumer
packaged goods company to make natural cleaning mainstream.

With an understanding of the consumer issues in natural cleaning and our strong heritage
in manufacturing cleaning products, we decided to pursue the development of a product
line that would address the needs of green-minded consumers. Our goal was to set an entirely
new standard for natural cleaning. Our R&D team was challenged not with reformulating an
existing product, but rather with creating an altogether new line of cleaning products using
naturally derived, plant-based ingredients. The cost had to be reasonable and the natural
product had to demonstrate it could really clean.

Today, all Green Works® products are recognized by the United States Environmental
Protection Agency’s Design for Environment program. And, the Green Works® brand is
the market leader in the natural home care category.

Though the Green Works® and Burt’s Bees® brands each enjoy leading shares in stores today,
their stories are different. The Green Works® brand was created by a Clorox team of scientists
and marketers. The Burt’s Bees® was born in the back of a pickup truck in the 1980s, when
founders Roxanne Quimby and Burt Shavitz teamed up to sell her beeswax candles and his
honey at craft fairs in Maine.

  The Clorox Company | 2010 CRR  27


PRODUCTS

Mainstreaming Natural Products

Defining
Natural & Green
As one of the world’s leading natural
personal care brands, the Burt’s Bees®
brand frequently found itself having to
explain what’s natural and what’s not.
Our research prior to the launch of
the Green Works® line showed similar Fast forward 26 years later and the Burt’s Bees® brand
confusion among consumers about the
is the leading natural personal care brand in the
true meaning of “natural” and “green”
product labeling. U.S. and growing rapidly in two dozen countries
These insights prompted us to be extremely around the world. Clorox acquired the brand in 2007.
clear that Green Works® products are derived from Its original, iconic lip balm product is now joined by
plant-based, readily biodegradeable cleaning ingre- more than 100 other natural products ranging from
dients. Green Works® products are also recognized
by the Environmental Product Agency’s Design skin moisturizers and shampoo to recently introduced
for the Environment (DfE) program and carry the acne solutions and toothpaste.
DfE logo, which demonstrates that Green Works®
products meet the program’s stringent criteria for Like the Green Works® brand, the growth of the
human and environmental health. Burt’s Bees® brand has tracked closely with consumers’
The Burt’s Bees® brand has also addressed the
growing desire to provide safe and natural products for
problem of label confusion by joining with other
natural personal care companies and the Natural their families. From its humble origins, Burt’s Bees®
Products Association to develop standards regarding products can now be purchased in specialty and mass
which ingredients can and cannot be considered retail locations in the U.S. and abroad.
natural, and ultimately, whether or not a product
can be labeled as natural. As part of this process, Today, the Burt’s Bees® and Green Works® brands are
the Natural Seal was developed to provide readily
identifiable certification on product packaging for
providing natural, effective and appropriately priced
consumers. In order to meet the seal’s criteria, products that are winning with consumers. These brands
products labeled as natural must be: are also providing Clorox with a strong base from which
•N  atural: Made of natural ingredients and to further develop awareness and acceptance of natural
manufactured to maintain ingredient purity.
products in traditional retail channels and among
• S afe: Avoid any ingredient that research shows
may have a suspected human health risk. mainstream consumers. From our perspective, this is
•R  esponsible: Use no animal testing in the perfection intersection of social responsibility and
its development. business opportunity and we will pursue both with
• Sustainable: Use biodegradable ingredients and equal enthusiasm.
the most environmentally sensitive packaging.

28  The Clorox Company | 2010 CRR


Be
Inclusive
People
Promote diversity, opportunity and respectful
treatment for everyone who touches our business

Many employees participate in employee resource groups,


which aim to help develop and retain diverse talent by promoting,
supporting and celebrating diversity. Left to right: Roma McCaig,
Scott Willoughby, Diana Hernandez, Shaunte Mears-Watkins,
Nicole Thomas and La Sondra Irving-Pippins.
  The Clorox Company | 2010 CRR  29
Clorox Ranks High in
PEOPLE

Diversity Measures
At Clorox, diversity is much more than an initiative or a mission statement. Having
a diverse workforce drives competitive advantage for us. We grow and learn more
when we are around people with different perspectives and experiences. And, having
a workforce that mirrors our consumer base allows us to gain better consumer insights
and drive meaningful innovation in the marketplace.
Creating a culture of inclusion is an integral
part of Clorox’s history that is evident
Expanding Our Diverse
throughout the company. Our hiring and Supplier Network
promotion decisions are based on employees’ We are proud of the work we have done to
abilities, and we expect our suppliers to date to build strong partner relationships with
adhere to those same standards. We strictly certified diverse companies. In the last year
prohibit any discrimination on the basis of race, we have awarded over $11 million in new
religion, national origin, gender, disability, business to certified women- and minority-
age, marital status, citizenship status, veteran owned suppliers. We will continue to look
status, sexual orientation or status regarding for new opportunities with diverse companies.
public assistance. Accordingly, we are executing against a
comprehensive strategy to grow our total
Clorox has earned a 100 percent diversity expenditure to 5 percent by 2015.
rating in the Human Rights
Diversity and inclusion have been a
CORPORATE Corporate Equality Index
EQUALITY INDEX fundamental part of Clorox’s success, and
for four consecutive years.
A Report Card on Lesbian, Gay, Bisexual and Transgender Equality in Corporate America

we will continually extend and improve our

2010 We are proud of the following facts about


our workforce. These numbers exceed
focus in these areas. Now more than ever,
embracing diversity and inclusion across
all areas is essential to our future.
U.S. Census Bureau figures:
• 5 1 percent of all Clorox employees and
Walmart Recognizes Clorox for Diversity
40 percent of our managers in the
U.S. are women. In a 2009 UC Davis In January 2010, Clorox received the
Study of California Women Business Visionary Award for Diversity as part
Leaders, Clorox ranked 14th out of 400 of Walmart’s Martin Luther King Day
companies for having women in director celebration. Nominated by Walmart’s
and executive officer positions.
associate resource group, Pride,
• 30 percent of U.S. Clorox employees and
22 percent of our U.S. managers are the award recognized our efforts to
minorities, including Native American, integrate diversity and inclusion in
Asian, African-American, Hispanic, the business.
Pacific Islander and multiracial.
30  The Clorox Company | 2010 CRR
PEOPLE
Clorox Ranks High in Diversity Measures
Gender Diversity
U.S.: 51% 40%
Female Employees Female Managers
Global: 35% 38% 23%
Female Employees Female Managers Female Executive
Committee Members

Employees Managers
  Caucasian 70 percent   Caucasian 78 percent
Minorities 30 percent Minorities 22 percent
  Asian 14 percent   Asian 11 percent
  African-American 9 percent   African-American 5 percent
  Hispanic/Latino 6 percent   Hispanic/Latino 5 percent
  Other 1 percent   Other 1 percent

21%
Committed to High Labor Standards
16%
21% K
16% A
K
A

We have nearly 8,300 employees around the globe – from scientists to salespeople from production employees
10% 10% B B
3%
to packaging professionals.
3% J
We are committedJ to the well-being of all Clorox employees worldwide, and, where
4% 4% I I
applicable,3%4%working with union representatives
4%
D
C
who work with approximately
D
C
6 percent of our workforce.
9% H 3% H
9%

EE
7%
We adhere
10%
13%
to all applicable
7% G
labor
13%
F
laws and standards
G
globally
F
and are committed to offering competitive
10%

compensation and benefits, supporting freedom of association and providing a safe work environment that
prohibits child labor and forced labor. We expect these standards to extend to our business partners.

U.S. Employee Turnover U.S. Employee Turnover Clorox Workforce


Total U.S. Population by Age Group Total U.S. Population by Gender by the Numbers (2010)

2.7% 6%

2.3%

2.0%
4,140 4,099
1.5%
3%

0.6%
PRODUCTION EMPLOYEES
20s 30s 40s 50s 60s Male Female
NONPRODUCTION EMPLOYEES

  The Clorox Company | 2010 CRR  31


Career Development is a
PEOPLE

Strategic Investment
At Clorox, we’re committed to developing our people. We focus on building
the capabilities of Clorox people from their very first day at our company, as they
evolve in their careers and as they grow into future opportunities. We believe
that people development helps us attract and retain the best and brightest minds
and maintain a competitive edge in the marketplace.

We provide dozens of training programs, as well as internal and external development resources for
employees, managers and executives.

Strong Leaders Share Common Traits


At Clorox, we know that strong leadership is key to our success, and we focus on five key
leadership traits. In fact, each year, Clorox recognizes outstanding leaders who demonstrate
the Clorox leadership traits.

The Clorox Leadership Traits


I ntegrity Acting with integrity builds trust. At its foundation, integrity is about telling the truth and having the courage
to stand behind what you believe is right.
O
 ptimism Great people lead from optimism, knowing that a winning attitude creates positive energy and engagement
Curiosity Ideas drive organizations and progress. Leaders can continue to get better at what they do only if they are
truly curious about their craft.
Compassion Compassionate leaders show people that they matter and treat them with respect
Humility Humble leaders are accessible and approachable. They are driven by the greater good, and they understand
the value of others around them.

Learning to Lead
We focus on building great leaders through a number of programs, including the Diamond
Leadership Institute (DLI). DLI aims to help Clorox employees realize their leadership potential.
The four DLI programs currently offered by the company provide unique cross-functional
experiences designed to develop leadership and management skills at all levels.

All employees have a variety of other training programs at their fingertips. Clorox offers dozens of
self-paced, online courses and hands-on, instructor-led courses on topics ranging from our company
strategy and conflict management, to communicating effectively and presenting powerfully, to
ergonomics and understanding financial statements and much more. Worldwide, 85 percent of
Clorox employees receive annual training and career development reviews.

We also understand that learning is a lifelong pursuit. Our education assistance program provides
financial aid for employees seeking to continue their education by earning degrees or certificates from
regionally and nationally accredited educational institutions. This program assists our employees in
developing skills and knowledge that contribute to their current job and future career opportunities.

32  The Clorox Company | 2010 CRR


PEOPLE
Career Development is a Strategic Investment
Employees Connect to Strategy
We believe in helping our employees become more
effective in their current roles and preparing them
for continued career growth. That’s why development
planning is an integral part of our performance
management and planning (PMP) process. This is a
highly important process that connects the work of
our employees to the achievement of the organization’s
strategic goals. It helps employees focus on the highest
business priorities and increases productivity, employee
engagement and sense of ownership.

The purpose of the PMP process is to:


•P lan work results, review overall performance and
skill proficiency
•E stablish and drive performance and development
plans
•R eceive feedback and coaching on a regular basis
• Share information on career interests
Training by the Numbers
• Make quality pay decisions Our nonproduction salaried employees have access
to leadership and skills development training and
All Clorox employees are covered by a predefined and education. Each year, the company offers more
standardized performance appraisal process, and more than than 230 hours of leadership and management
90 percent of employees receive regular performance reviews. training programs, 160 hours of instructor-led
We believe development is owned jointly by employees classroom training and 10 hours of e-learning
and managers, and all salaried employees are required courses. Approximately 90 percent of nonproduction
to create and maintain individual development plans. employees participate in the corporate training
programs offered. Specialized function, department-
Recognition Encourages
level and site-specific training is also provided across
Continued Achievement
our sites.
Clorox fosters a culture of recognition. We encourage
and reward recognition not just from managers, but also
Our production employees and contract employees
among peers. We understand that we own each other’s
around the world complete skills certification
success, and it’s making Clorox a better place to work.
courses, as well as safety and health training that
aligns with federal, state and local requirements.
The Bravo recognition program in the U.S. provides
We require an average of 20 hours of safety training
tools and incentives to encourage peer-to-peer recognition,
for new employees and recurring annual, quarterly
manager discretionary recognition and special purpose
and monthly training on a wide variety of topics as
recognition programs.
determined by specific job requirements and tasks.

  The Clorox Company | 2010 CRR  33


Competitive Compensation
PEOPLE

Rewards Performance
We understand that our success depends on the people who work hard to build
our brands and execute our plans. That’s why we’ve developed compensation plans to
help us attract and retain great people by providing competitive pay and rewarding
the performance of employees who make significant contributions to our success.

There are three elements of compensation for Clorox employees in the U.S.:
1. Base pay Regular wages or salary, including vacation, holiday and sick pay. This is the
fixed portion of an employee’s compensation for performing his or her job.
2. Incentive awards Stock-based awards, an annual cash bonus and sales-added compensation
are variable, offered to eligibile employees based on competitive market practices.
3. Premium pay Overtime wages.

Together, these elements are “eligible pay” upon which retirement contributions are based.
Retirement at Clorox encompasses four components:
1. Employee 401(k) contributions
2. 4 01(k) match
3. Value sharing
4. Pension

Employee Engagement Remains High


Employee engagement is critical to our success. Clorox surveys employee levels of engagement annually
to determine what’s working well and what can be improved. Each functional leader receives the
results for his or her organization to help ensure continued engagement across the company.

In 2010, a statistically representative sample of more than 2,200 employees from throughout the
company completed the survey, and 81 percent reported being “engaged” or “highly engaged,” versus
the benchmark* of 80 percent.

*Benchmark represents responses of employees at other organizations who participated in the


same survey at different times. The benchmark group includes a variety of companies from
manufacturing, retail, financial services, health care, high technology and telecommunications, Clorox Employee Engagement
and other types of organizations, such as public utilities and government agencies.
81% 81%
75%

2008 2009 2010

34  The Clorox Company | 2010 CRR


PEOPLE
Employee Safety and
Wellness Are Top Priorities
Preventing injury and illness at work is an everyday focus —  whether someone is in the corporate
office or on the front lines of a manufacturing facility.

Safety Efforts Achieve Gold Rating


Safety is paramount at Clorox and we’re proud of our strong safety record. We strive to maintain
a safe working environment for our employees, and to operate and maintain all facilities and
equipment in a manner that will protect the safety of employees and the public.

The Corporate Health, Safety & Environment organization is responsible for assisting line
management in achieving our safety goals. This includes providing support tools and resources,
periodic evaluation of safety and health programs and recommendations for improvement.

Every Clorox supervisor in our manufacturing plants and other nonoffice locations is responsible
for providing a work environment with safe operating equipment and safety training for every
employee, as well as ensuring employees comply with safety rules and procedures. Each supervisor
also has the responsibility, through personal example and involvement, to create a climate in which
everyone shares a concern for their own safety and the safety of their fellow workers.

Our safety performance over the past four years has been at world-class levels. In fiscal year 2010,
Clorox had an overall recordable injury rate of 0.81*, versus the 1.0 world-class level. We continue
to strive for zero incidents.

Clorox completed fiscal year 2010 with zero Occupational Safety and Health Administration (OSHA)
noncompliance fines, due to our ability to complete all regulatory tasks in a timely manner.
*
 Safety is measured in accordance with U.S. Bureau of Labor Statistics instructions for calculating recordable injury rates.

Employees like Melanie Hansford


contribute to creating a safe work
environment and enabled Clorox to
achieve a world-class safety record.

  The Clorox Company | 2010 CRR  35


Employee Safety and Wellness
PEOPLE

Preparing for Tough Times


We have an enterprise-wide crisis management program that includes tools and communications supporting
welfare, emergency response, safety, disaster recovery and business continuity. The program includes workgroup-
based plans to guide in resuming disrupted operations, emergency response teams to directly address certain
emergencies, and a corporate emergency operations center to coordinate and allocate resources at time of crisis.

Benefits Support Balanced Lifestyle


Clorox offers a broad range of competitive benefits that are available to full-time employees and their dependents,
including children, spouses and same-sex partners. Our comprehensive health care coverage in the U.S. includes:
• Medical • Disability • S hort- and long-term disability
• Prescription services • Vision • Life insurance
• Dental • Counseling •A  ccidental death and dismemberment

Clorox’s wellness programs encourage our employees to
Preparing For and Preventing participate in preventative care, such as getting an annual
physical, taking health risk assessments or participating
the Spread of H1N1 in smoking cessation programs.
In the spring of 2009, a substantial outbreak of the
H1N1 influenza virus hit Mexico, sounding alarm bells These programs benefit employees by promoting good
around the world. With flu season approaching and health and by driving down overall health care costs.
fears of a wide-spread pandemic growing, we quickly Clorox offers weight-management resources, a quarterly
formed a team to develop internal preparedness and health newsletter and several wellness incentive programs
prevention plans. to employees, including a $125 incentive program for
getting your annual physical.
We were focused on two key priorities: First, sustaining
the health and wellness of employees; second, developing In addition to physical health benefits, we offer a variety
contingency plans to minimize impact to the business of other benefit programs designed to assist employees and
in the event of widespread absenteeism. their families through different needs in life. For example,
Cleaning protocols detailing how to disinfect hard in the U.S., we offer employees and their immediate family
surfaces, hand-washing guides and other wellness members confidential counseling services through our
tips and tools were quickly posted throughout our Employee Assistance Program. We also offer adoption
facilities and office environments. We also developed assistance and retirement savings programs.
a website dedicated to providing educational materials,
Clorox supports a balanced lifestyle by offering alternate
prevention practices, H1N1 updates and public health
work schedules where possible, such as job sharing,
resources to Clorox employees.
telecommuting and flexible hours, which allow workers
We also created detailed contingency plans to prevent to have a say in their schedules. We offer summer hours
major business impacts, including developing policies to office employees around the world, closing our offices
that address time off and pay. However, these plans were for business at 12:30 p.m. local time on Fridays to give
never needed, as the majority of employees remained employees an early start to their weekends during the
healthy and working throughout the duration of the summer season.
H1N1 pandemic.

36  The Clorox Company | 2010 CRR


Be
Mindful
Planet
Shrink our environmental footprint
while we grow our business

Members of the Eco Network employee volunteer


group — including, from left to right, Dana Ginsburg,
Aron Nussbaum and Suzanne Henricksen — are
helping to drive more sustainable choices like recycling
and composting in the workplace.

  The Clorox Company | 2010 CRR  37


Accelerating Our Eco Progress
PLANET

Clorox has long been committed to reducing the environmental impact of our operations
and the products we make. In recent years, we have accelerated this effort with the development
of a global environmental sustainability strategy that articulates our objective to make
environmental stewardship core to how we do business.

We are making investments in more sustainable products, reducing the environmental


footprint of our operations, driving toward a more sustainable supply chain, integrating
environmental sustainability into our business processes and culture, and participating in
industry sustainability initiatives.

Clorox’s Eco Office, which was established in 2007, is leading this strategy. The Eco Office
has been working with all facets of Clorox’s operations to advance our goals to reduce
greenhouse gas emissions, save energy and water and decrease solid waste. At the same time,
the Eco Office has engaged with our business teams to improve the overall sustainability
of our products and packaging.

The Eco Office, which reports to executive vice president Beth Springer (far right), is dedicated to making environmental stewardship
core to our business. From left to right: Jamie Owen, Scott Mobley, Prashant Kripalani and Bill Morrissey.

38  The Clorox Company | 2010 CRR


PLANET
Corporate Scorecard Includes Sustainability Goals
Our board of directors’ nominating and governance committee oversees environmental health and
safety compliance at our company. Specific sustainability priorities have been integrated into the
Clorox corporate strategy, and environmental goals are part of the Clorox corporate scorecard on
which annual executive evaluation and compensation is based.

Clorox’s enterprise-wide environmental sustainability goals cascade down to our company operations
and strategic business units that have their own specific sustainability commitments. A clear chain of
ownership exists for each aspect of our environmental strategy, ensuring that Clorox will be able to
drive sustainability improvements and climate change action throughout the organization over time.

Environmental System Tracks Compliance


Managing environmental compliance and tracking environmental metrics data is a critical part of
implementing our environmental strategy. We use our own environmental management system (ETRACS)
to track, report and ensure environmental compliance across our facilities. The system also drives site-
specific compliance activities and tracks the progress we’re making toward our sustainability goals.

Formal Assessment Gauges Environmental Impact


Clorox has developed a sustainability assessment process to better understand and manage the
environmental impact of all our business. The assessment process — a joint undertaking by business
unit managers and the Eco Office — examines the environmental impact at each stage of our products’
life cycles; identifies current and emerging stakeholder environmental concerns; and, through the lens
of environmental sustainability, assesses potential cost savings and business growth opportunities,
as well as business risk.

Clorox’s Eco Objective


Make environmental sustainability core to how we do business

Clorox 2013 Eco Goals


• Generate one-third of growth from environmental sustainability initiatives (versus 2007 baseline)
•  Reduce the environmental footprint of our operations for each case sold by 10 to 20 percent
(versus 2007 baseline)
• Make sustainability improvements to 25 percent of our product portfolio (versus 2009 baseline)
•  Achieve an environmental stewardship reputation at consumer packaged goods exemplar levels
•  Ensure environmental sustainability performance is a major contributor to employee engagement

  The Clorox Company | 2010 CRR  39


Transforming to a More
PLANET

Sustainable Product Portfolio


Selling more than 1 billion products into the marketplace annually, Clorox’s greatest opportunity to reduce our
environmental footprint lies within our own product portfolio. From 2005 to 2009 we made sustainability
improvements to a third of our portfolio.
In 2009, we took another look at our product portfolio and set a goal to make sustainability improvements to
25 percent of our products by 2013. We anticipate we will need to make improvements to more than 300 product
items to achieve this goal. We aim to do this through the continued redesign of products and/or their packaging
to reduce or enhance the sustainable nature of the materials used. Today, we are one of only a few consumer
packaged goods companies to have set such a public goal.

Some of our businesses have built sustainability into their core purpose

The Burt’s Bees® brand aims to maximize the Green Works® naturally derived, plant-based The Brita® water-filtration brand educates
overall well-being of people and the planet cleaning and laundry products seek to meet consumers about the opportunity to reduce
through The Greater Good™ business model. consumers’ growing desire for natural products. waste from disposable plastic water bottles.

Line extensions represent an opportunity for brands to incorporate sustainability enhancements

Kingsford ® competition briquets are made with Glad® compostable trash bags are made with Fresh Step® natural cat litter provides a product
100% natural ingredients that make the coals burn renewable resources for use in municipal for cat owners who value a natural option.
hotter, provides great taste and results in less ash. composting programs where available.

Improving the sustainability of our core product offerings represents yet another opportunity

The Kingsford® brand has recently launched a Glad® ForceFlex® trash bags are saving more than Clorox 2® stain fighter and color booster comes in a new
product improvement that also reduced the amount 1 million pounds of plastic film per year compared concentrated version, reducing the amount of water
of raw material used in a briquet by 7 percent. to regular trash bags, while also providing consumers used in manufacturing this product by 54 percent,
with a stronger bag. resin needed for bottles by 36 percent and gallons
of diesel for shipping by 160 million gallons annually.

40  The Clorox Company | 2010 CRR


PLANET
Packaging Changes Reduce Waste
Many Clorox Company brands have moved to more sustainable packaging. Package redesign,
material reduction and increases in recycled content have led to measurable improvements.
Today, 90 percent of our product cartons use 100 percent recycled material, and 85 percent
of our packaging is recyclable. Also, nearly all of our U.S. retail display materials are made
from 100 percent post-consumer waste.

Some recent packaging improvements:


•  Clorox® regular bleach has reduced the plastic in its bottles by more than 5 million
pounds annually
•  All of our spray-cleaning products now use lighter, more environmentally efficient
triggers that are better at preventing fluid leakage
•  Burt’s Bees® lip balm and lip shimmer products removed plastic wrapping to save
more than 1,800 miles of shrink-wrap film annually.

As a member of the Sustainable Packaging Coalition, we continue to advocate for more


environmentally friendly packaging throughout the consumer products sector and are
committed to doing more by working to achieve the following packaging goals by 2013:
•  Reduce packaging on more than one-third of our product portfolio
(from 2005 to 2013)
•  Have at least 90 percent of all our products in recyclable primary packaging
(versus 85 percent currently)
•  Identify alternatives to PVC for all packaging.

  The Clorox Company | 2010 CRR  41


Green
PLANET

On Tap
An eco-friendly alternative to bottled
water is as close as your refrigerator or
kitchen sink, thanks to Brita® water-
filtration products.
Water is one of life’s most essential
elements, but can be exposed to impurities
that impact taste. From convenient faucet-
filtration systems to filtered refrigerator
pitchers, Brita® offers an easy solution
for people to enjoy healthier, better-
tasting water.
By encouraging people to drink more
water, the Brita® brand has a strong health One Brita® pitcher filter can
and wellness component. When you add effectively replace as many as 300
the brand’s environmental benefits, standard 16.9-ounce bottles of water.†
the overall value proposition becomes And used Brita® filters can now be recycled
even more compelling. Consider thanks to our partnership with Preserve®, the
the fact that Americans alone leading maker of 100 percent recycled household
drank nearly 8.7 billion gallons of consumer goods.
bottled water in 2008*, with most   Brita® filtered water also offers an economical
bottled water containers ending alternative to bottled water. The average
up in landfills. Brita® pitcher filters 240 gallons of
water per year for about 19 cents per
day, significantly less than the cost of
a single bottle of water.
   Our Brita® team is committed to
raising awareness of these cost and
environmental advantages. The brand’s
FilterForGood™ campaign encourages consumers
to sign an online pledge to reduce bottled water
consumption in exchange for a Brita® product
coupon. Based on pledges to date, there are nearly
200 million fewer plastic water bottles in the world
today: a number well worth raising a glass to.
* Beverage Marketing Corporation press release,
“Smaller categories still saw growth as the
U.S. liquid refreshment beverage market shrank
by 2% in 2008,” March 30, 2009.
† www.filterforgood.com/facts.
Preserve® is a registered trademark of Recycline, Inc.

42  The Clorox Company | 2010 CRR


PLANET
Measuring, Managing and
Minimizing Our Operational
Footprint
Over the years, Clorox has become a highly efficient manufacturer through a continual
improvement approach to our business. Today, these improvement efforts are aimed at
further reducing our environmental footprint, with a focus on reductions in energy use
and greenhouse gas (GHG) emissions, water use and solid waste to landfill.

Tracking to Meet or
Exceed Our 2013 Goals
-20%

-10% -10% -10%


-8.5% -9%
-7%

-4.5%

GHG Energy Water Waste

PERFORMANCE TO DATE (2007 baseline)


2013 GOAL (per case of product sold)

  The Clorox Company | 2010 CRR  43


PLANET

Greenhouse Gas Emissions In addition to these strategies, Clorox is exploring


and Energy Use Down other innovative ways to reduce our GHG emissions.
We are actively working Energy The Burt’s Bees® business, for example, is purchasing
to reduce our GHG Consumption renewable energy credits in the form of wind energy,
footprint. We’ve made a while the Kingsford® business is using renewable
1.87
pledge to reduce our GHG 823 energy sources from its own manufacturing processes
818
emissions by 10 percent per 1.86 to reduce dependence on the electricity grid.
case of product sold from
2007 to 2013. We also joined CO2 Equivalent GHG GHG Emissions by Source
(’000 metric tons)
the EPA’s Climate Leaders
787 600 595
Program in 2008 and 600 595 204 201 561
561 187
received EPA SmartWay 1.78
Transport Partner certifica-
tion this year as part of our 322 319 300
1.37
commitment to reduce our 2007 2008 2009
1.34
GHG footprint. ENERGY CONSUMPTION
(’000 of MWh) 1.27

Our recent GHG and RATIO (MWh of energy


per 1,000 cases)
energy use reductions are
74 75 74
due primarily to retrofitting 22 of our manufacturing
2007 2008 2009 2007 2008 2009
plants, distribution facilities and major offices with
GHG (’000 metric tons) SCOPE 1
energy efficient T5/T8 lighting and motion sensors. RATIO (metric tons of SCOPE 2
We’re also moving 30 percent of our product distribution GHG per 1,000 cases)
SCOPE 3
from trucking to more efficient intermodal rail.
Scope 1 GHG emissions are a direct result of Clorox operations. Scope 2 GHG
emissions are indirect emissions from purchased electricity, heat and steam.
Scope 3 emissions are associated with the distribution (by all modes of transport)
of finished products by nonaffiliated carriers to regional distribution centers and
to retailers.

We believe that science supports rising GHG emissions have a significant impact on climate
change and the environment. Clorox therefore supports congressional action on comprehensive
national climate change legislation aimed at reducing aggregate emissions of greenhouse gasses
over time without causing undue hardships for the U.S. economy. Clorox is also committed to
doing its part to help address this issue.

44  The Clorox Company | 2010 CRR


PLANET
GHG Emissions by Gas Type (2009) Other Gas Emissions and
Particulate Matter
In addition to GHG emissions, Clorox is
committed to carefully monitoring and working
CO2 91 percent
CH4 1 percent
to minimize other gas emissions and particulate matter.
N20 7.5 percent Our manufacturing processes use a minimal amount of
HFCs 0.5 percent fluorinated gases, primarily chlorodifluoromethane
This gas is part of industrial refrigeration systems and
works in a closed-loop system.

We also monitor the use and release of volatile organic


compounds, particulate matter, sulfur oxides and
GHG Emissions nitrogen oxides. Our plants comply with air permits
that limit these pollutants based on federal, state and
by Segment
local government regulations. We are actively looking
(’000 metric tons)
for technologies and efficiencies to further reduce
600 595 561 particulate matter emissions in the future.
22 22
51 52 21 On Track to Achieve Our
48
Water-Reduction Goal
202 198 Clorox has made strong Water Consumption
183 progress in reducing our 1,029
water use in the past two 960 952
2.35
14 14 14 years as a result of initiatives 2.17 2.15
61 61 58
 HOUSEHOLD that addressed our water
 CLEANING recycling infrastructure,
 LIFESTYLE upgraded equipment and
 TRANSPORT replaced water-cooled with
250 248 236
 INTERNATIONAL air-cooled compressor
 OFFICES systems. Two of our
2007 2008 2009 Kingsford® charcoal plants,
for example, have each
reduced water consumption 2007 2008 2009

by more than 30 percent. CONSUMPTION


While the Clorox GHG inventory has not been independently verified by (millions of gallons)
a third party, our GHG inventory gathering process and calculations We believe these types RATIO
(for 2005-2009) were led and conducted by a third-party environmental (gallons of water per case)
services firm that has detailed knowledge of the operations and air
of initiatives, as well as
changes to manufacturing By volume, most of the water consumed
emissions characteristics of the major Clorox manufacturing facilities
by Clorox is derived from city water utilities.
and uses the methodologies and emissions factors from well-known facility water management A small fraction of our total water use is
GHG protocols, including those of the U.S. Department of Energy, World
practices, will enable us to derived from surface and well water.
Resources Institute and EPA’s Climate Leaders.
meet or exceed our overall
water-use reduction goal of 10 percent by 2013.

  The Clorox Company | 2010 CRR  45


PLANET

“Dumpster Dives” Help to Reduce The vast majority of the solid waste that Clorox
Landfill Waste produces is nonhazardous in nature and we employ
Cost savings initiatives and manufacturing manufacturing practices that minimize such waste.
excellence programs have helped Clorox build The small amount of hazardous waste that we do
a solid record in the areas of reducing and reusing produce is properly handled by approved vendors
materials, but recent audits have found that we still and properly tracked through its disposal process.
send too much waste to landfills. “dumpster dives,”
where employee volunteers literally dump and sort Biodiversity and Habitat Conservation
through trash, have been an The preservation and protection of biodiversity and
effective initiative to raise Solid Waste natural ecosystems go hand in hand with resource
awareness of what can be 13,893 conservation. To this end, Clorox complies with
recycled and to encourage 31.7
12,590 12,783 global, federal, state and local biodiversity legislation
changes about what gets 28.4 28.9 and regulations and, whenever possible, goes beyond
deposited in the trash. legal requirements to ensure that our manufacturing
Dives at our Tampa, Fla., operations do not negatively impact biodiversity,
and Amherst, Va., plants natural habitats, wetlands, forest lands, fisheries or
have led to reductions of local plant and animal species.
waste sent to landfills of
more than 50 percent. Our overall operational impact on biodiversity is
These achievements are insignificant, given the location and nature of our
helping us make progress operations as well as the products we manufacture.
2007 2008 2009 The one exception is our plant in Aberdeen, Md.,
toward our commitment
TONS which manufactures bleach products. It is located on
to reduce company-wide
RATIO (tons of waste
solid waste by 20 percent per million cases) 150 acres of wetlands owned by Clorox that we are
(per case of product sold) committed to protecting. In 1993, our Aberdeen plant,
from 2007 through 2013. which resides on eight of these acres, was one of only
three buildings worldwide to receive the Distinguished
Environmental Planning Award from the Industrial
Development Resource Council. We were selected based
on our attention to energy conservation and preservation
of this 150-acre wetlands area.

Clorox’s “dumpster dives” help divert


waste from landfills.

46  The Clorox Company | 2010 CRR


PLANET
Encouraging Sustainable Workplaces
and Habits
The ultimate success of our eco strategies requires that environmental sensitivity and best practices become an
intrinsic part of the culture at Clorox. Every Clorox employee is called upon to support our commitments and
goals in order for us to achieve them and to realize the potential of sustainable business opportunities.

This process begins through our daily habits and in our “Get caught green-handed — turn off the lights” stickers
workplace environments. In North America, for example, on 2,500 light switches in locations across Clorox
over the past two years Clorox has reduced paper use facilities. The Eco Network has now focused its
by 30 percent and converted all remaining paper to attention on waste reduction, in particular recycling
100 percent recycled content. We have reduced business and composting, at key Clorox sites like our Oakland
travel by 20 percent and converted company cars to general offices, where the network hopes to divert
hybrid vehicles. 90 percent of our waste from the landfill.

We are also proud that our corporate headquarters


in Oakland, Calif., recently received platinum-level
Leadership in Energy and Environmental Design
(LEED) certification for an existing building (EB).
Developed by the U.S. Green Building Council,
the platinum LEED designation is the highest-level Eco Volunteers Go Global
certification a commercial property can achieve. The The Clorox Eco Network has no borders and
Clorox Company building is one of only 38 buildings in has expanded throughout our global operations.
the U.S. to achieve LEED-EB certification. We achieved For example, in Chile volunteers have combined
this certification by decreasing the environmental their ingenuity and enthusiasm to make a sweeping
footprint of our facility’s operations through dozens of difference — literally.
building improvements over the last couple of years.
Employees came up with the idea of using simple
Employee Volunteers Drive plastics such as PET, packaging stretch film and plastic
“Green-Handed” Ideas bags as raw material for the broom bases that Clorox
One of our most successful employee involvement makes. The initiative has enjoyed widespread involve-
strategies to date has been to recruit those employees ment from employees and their families as employees
most passionate about positive environmental change. not only collect plastic waste at work but also bring in
In 2008, we created the Clorox Eco Network, a global plastic waste from home.
team of employee volunteers to help our company and
fellow employees make sustainable decisions on behalf The results have been so successful that the initiative
of the environment. The network serves as both a is expanding plastic recycling beyond the walls of
forum for new ideas and the driver of workplace eco Clorox to include partnerships with customers,
initiatives. Recently, the network launched an intranet schools and nonprofit organizations.
page to share green news and tips, orchestrated Earth
Day celebrations across major Clorox sites and placed

  The Clorox Company | 2010 CRR  47


PLANET

The
Greater Good

When Clorox acquired the Burt’s Bees® brand in 2007, we The Burt’s Bees® business took employee involvement
acquired not only a leading natural personal care brand, to a new level in 2009 with the launch of “Live the
but also an exemplar company in social responsibility. Greater Good,” a company-wide program that encourages
The Burt’s Bees® team follows a business model dubbed employees to formally and continuously integrate
The Greater Good™ that represents the highest ethical environmental stewardship, social consciousness, natural
choice that can be made to maximize the overall well- wellness and world-class leadership into their personal
being of people and the planet. and professional lives.
The Greater Good™ adheres to a set of beliefs that As the Burt’s Bees® brand expands its products around
helps guide the company and its actions, particularly as the world, the team is also exporting its greater good
it relates to the environment. After all, the company was philosophy and finding that it resonates with international
founded in 1984 on a foundation of earth-friendly natural employees and consumers as well. This positive reception
personal care products. The business nurtures a cycle is largely due to the degree of customization that is
that is based on the belief that to take from nature, you encouraged in each country. The Burt’s Bees® business
must also protect and provide for nature. introduces its greater good model and values in each
To this end, the business aspires to be “the greenest country, and then its employees find ways to tailor it to
personal care company on earth” and is working toward their particular areas of interest and passions. In Australia,
a set of goals to achieve by 2020. Among these goals are a for example, educational programs and outreach efforts
carbon-free footprint, utilization of 100 percent renewable are largely focused on biodiversity, an area of great
energy, zero waste to landfills and Leadership in Energy concern to Australian citizens.
and Environmental Design certification for all facilities. It is hard to think of a better example than the
Already Burt’s Bees® has achieved zero waste to landfill Burt’s Bees® brand of the way good business and the
at its manufacturing, distribution and office facilities, and greater good can complement each other and, indeed,
operating effectively in a carbon-neutral manner by buying grow and prosper together.
renewable energy certificates and carbon offsets to offset
their GHG footprint.
48  The Clorox Company | 2010 CRR
Be
Committed
Purpose
Safeguard family well-being, every day

49 The Clorox Company | 2010 CSR Report   The Clorox Company | 2010 CRR  49
PURPOSE

After Hurricane Katrina hit New Orleans and the Gulf


Foundation Supports Youth Coast, for example, Clorox donated more than $2 million in
and Cultural Programs cash and product toward relief efforts. We were also the
first to step up and sponsor Mardi Gras in New Orleans
Founded in 1980, The Clorox Company Foundation is that year, donating more than 1.3 million Glad® trash bags
our formal philanthropic arm and has awarded cash to the department of sanitation for clean-up efforts. More
grants totaling more than $80 million to nonprofit recently, when southern Georgia was hit by severe flooding
organizations, schools and colleges over the past three in 2009, Clorox sent more than two truckloads of bleach
decades. The majority of these grants support innovative to assist with cleanup.
programs that serve youth, kindergarten through 12th
grade education, and cultural and civic organizations. Charitable Contributions
Much of the foundation’s work is centered in our (in millions of dollars)
15

corporate hometown of Oakland, Calif., but it also $13.2


$14.1
benefits local needs in other communities where our $1.8
$1.8 12

employees live and work. $3.5


$3.6

Clorox also has a long history of donating Glad® trash


9

$8.8
bags, Clorox® bleach and other disinfecting products $7.8
to the American Red Cross to assist with disaster relief.
6

CAUSE MARKETING DONATIONS 3

FOUNDATION CASH GRANTS


CORPORATE PRODUCT DONATIONS 0

2009 2010

The Clorox Company Foundation


has awarded more than $80 million
in cash grants since 1980.

50  The Clorox Company | 2010 CRR


PURPOSE
educating and inspiring young people about the
Employees Give Time and business world. We support Junior Achievement
Money to Support with employees who teach classes and through grants
Our Communities made by The Clorox Company Foundation. Another
example of Clorox employees’ passion for supporting
At Clorox, our work force of more than 8,300 employees
education is the Marcus A. Foster Educational Institute
shares a common trait: a commitment to give back to
auction that 100+ volunteers coordinate annually. Now
others through our time and talents. Visit a company
in its 19th year, the event regularly raises more than
facility anywhere in the world and you will find an
$70,000 for scholarships.
example of this commitment.

Clorox employees build houses for Habitat for Humanity


GIFT Campaign Matches
Employee Contributions
International, walk in fundraisers to support cancer
Beyond their time, Clorox employees also donate their
research, provide legal expertise to victims of domestic
money to nonprofit organizations, and we are proud to
violence and donate presents to impoverished families
match their generosity. In the U.S. and Canada, our
during the holidays. These examples are a small sample
Getting Involved for Tomorrow (GIFT) campaign matches
of the dozens of programs and opportunities that we
employee contributions up to $2,500 per employee to
support. In 2009 alone, Clorox people volunteered nearly
nonprofit organizations of their choosing. Including
100,000 hours of their time to charitable organizations.
the company match, the 2010 GIFT campaign raised
K-12 education is our primary corporate focus. More $3.5 million. In addition, our higher education gifts
than 100 Clorox employees volunteer each year for program matches up to an additional $5,000 per employee
Junior Achievement, an organization dedicated to to eligible U.S. higher education programs.

Mary Jasso believes strongly in helping


others. That’s why she volunteered to
chair the Clorox Houston facility’s
GIFT campaign many times during
the past decade. After the devastation
caused by Hurricane Ike in 2008, however, Mary and
many of her fellow employees developed a first-hand
understanding of the campaign’s slogan, “Follow your
heart and Clorox will follow you.” Through GIFT,
employees can support The Clorox Employee Emergency
Relief Fund (EERF) and the company will match dollar
for dollar, up to $2,500. For employees like Mary who
face unexpected expenses from emergency situations,
EERF provides much needed help. After personally
As part of our community
outreach initiatives, benefiting from EERF assistance, Houston employees
employees spent a day showed their gratitude by reaching a 97 percent
planting trees in Oakland, participation level in the next GIFT campaign, knowing
Calif. From left to right:
Herbert Lee, Bill Morrissey their help would be there for those next in need.
and Craig Wolfson.

  The Clorox Company | 2010 CRR  51


PURPOSE

Product and Cash Donations Aid Disaster Relief


Immediately following the devastating earthquake that struck Haiti in January 2010, The Clorox
Company Foundation donated $250,000 toward relief efforts. Though the dollars were critical,
an equally important donation came in the form of more than 200,000 gallons of Clorox®
regular bleach.

In Haiti, the level of destruction and lack of infrastructure made product donations almost
impossible in the immediate aftermath of the quake. Our Clorox Caribbean team began
working with the local Red Cross chapter, public health agencies, our Dominican Republic
distribution partner and the Portugal Consulate to provide an initial donation of 415,000
150-ml sachets and 8,400 gallons of bleach. Another 100,000 gallons of bleach from our
Port-au-Prince warehouse were also donated. From there, we turned to our plant in Puerto Rico
to begin shipping additional supplies.

Contaminated water and property left behind by natural disasters in Haiti and countless
other places present an immediate public health threat. Clorox ® regular bleach can purify
water and disinfect surfaces. For years, Clorox has partnered with the Red Cross to make
bleach available as quickly as possible at the scene of countless disasters around the globe. We also
have donated millions of Glad® bags to assist with clean-up efforts.

H1N1 Response
Fast action is something of a core competency at Clorox. As the public learned of the H1N1 flu
outbreak in Mexico in 2009, orders for bleach spiked. We activated our natural disaster
contingency plans to ramp up production and coordinate distribution quickly. In addition,
we donated roughly 20 truckloads of bleach through the Red Cross of Mexico, the Mexico
Federal Health Secretary and the Mexican Social Security Institute.

52  The Clorox Company | 2010 CRR


PURPOSE
Brand Cause Marketing
Brands Support Causes Consumers Care About
More than ever, our brands are differentiating themselves in the marketplace by supporting the causes
our consumers care about. The tie between our product and the cause, however, must be both a heartfelt
and strategic fit. We make this determination by listening to our consumers. Considering what our brands
stand for and evaluating whether or not the brand can play a functional role in supporting a cause,
such as bleach disinfecting and purifying water during natural disasters. Here are examples of some of
our brands’ latest cause programs:

Clorox® Brand and the Children’s Health Fund


www.facebook.com/clorox
The Clorox® brand has partnered with the Children’s Health Fund (CHF) to launch a new program as part of the brand’s commitment
to healthier lives for families. Capitalizing on the power of social media, the brand created Connect Kids To Care and will donate
$1 for each new fan on the Clorox Facebook page, up to $100,000. In addition, the brand is donating $500,000 over the next
two years to CHF.

Pine-Sol® Brand and Powerful Difference™


www.powerfuldifference.com
Dedicated to helping women make a powerful difference in their homes and communities, this Pine-Sol® program honors women
across the country. Through cash awards, scholarships and action kits, the Pine-Sol® brand enables women to continue the work
they are doing or to start new volunteer work.

Green Works® Brand and Sierra Club


www.greenworkscleaners.com/partners
The Green Works® brand partnered with the Sierra Club as part of its launch in 2008. Green Works® products proudly display the
Sierra Club logo to demonstrate the brand’s commitment to supporting the oldest and largest grassroots environmental organization
in the U.S.

Hidden Valley® Brand and the Love Your Veggies™ Campaign


www.loveyourveggies.com
This campaign was inspired by a study that found that children consume more vegetables when paired with a moderate amount
of ranch dressing. Targeted toward parents and educators who are trying to get children to eat and enjoy vegetables, the Hidden Valley®
campaign includes an informative website and a grant campaign that supports innovative school programs.

Glad® Brand and Glad To Give™


www.glad.com/gladtogive
Cookies for Kids’ Cancer™ is a nonprofit organization that raises money to support pediatric cancer research through bake sales.
The Glad® brand is donating $1 to the cause for every Glad® box code entered online. It is also conducting a national contest for
the best “recipes” for food-related giving programs and providing online support for those who want to host a bake sale.

Fresh Step® Brand and the ASPCA


www.freshstep.com/aspca
The Fresh Step® brand supports the activities of the American Society for the Prevention of Cruelty to Animals (ASPCA) by donating
50 cents for codes entered from specially marked packages of its cat litter, as well as making it possible to convert points from its
Paw Points® loyalty program to donation dollars that benefit the ASPCA.

Brita® Brand and the FilterForGood™ Campaign


www.filterforgood.com
This campaign raises awareness of simple changes everyone can make to live more eco-friendly lives. A website offers Brita®
coupons in exchange for an online pledge by consumers to reduce bottled water waste and offers facts and tips for daily habits
that can help the environment.

Burt’s Bees® Brand and The Greater Good™ Campaign


www.burtsbees.com/c/commitment/greatergood.html
The Greater Good™ commitment is Burt’s Bees®’ business model that is designed to maximize the overall well-being of people
and the planet. Through The Greater Good™ Foundation, the business gives 10 percent of all sales from www.burtsbees.com
to worthy causes.

  The Clorox Company | 2010 CRR  53


GRI Content Index
Strategy and Profile Disclosures Page #
1. Strategy and Analysis
1.1 Strategy and Analysis 3,4,7,8,15
1.2 Description of key impacts, risks, and opportunities 7,8,15
2. Organizational Profile
2.1 Name of the organization 5
2.2 Primary brands, products, and/or services 5,11,12
2.3 Operational structure 1,11
2.4 Location of organization’s headquarters 5
2.5 Countries of operation 11
2.6 Nature of ownership and legal form 5
2.7 Markets served 11
2.8 Scale of the reporting organization 11,12
2.9 Significant changes during the reporting period regarding size, structure, or ownership 1
2.10 Awards received in the reporting period 7,14,30
3. Report Parameters
Report Profile
3.1 Reporting period (e.g., fiscal/calendar year) for information provided 1
3.2 Date of most recent previous report (if any) N/A
3.3 Reporting cycle (annual/biennial, etc.) 1
3.4 Contact point for questions regarding the report or its contents 1
responsibility@clorox.com
Report Scope and Boundary
3.5 Process for defining report content 1,7,8,15
3.6 Boundary of the report 1
3.7 Specific limitations on the scope or boundary of the report 1
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities 1
that can significantly affect comparability from period to period and/or between organizations
3.9 Data measurement techniques and assumptions 1
3.10 Explanation of the effect of any re-statements of information provided in earlier reports N/A
3.11 Significant changes from previous reporting periods N/A
GRI Content Index
3.12 Table identifying the location of the Standard Disclosures in the report 54-58
Assurance
3.13 Policy and current practice with regard to seeking external assurance for the report 1
4. Governance, Commitments, and Engagement
Governance
4.1 Governance structure 16
4.2 Indicate whether Chair of the highest governance body is also an executive officer 4,16
4.3 Number of members of the highest governance body that are independent and/or non-executive members 16
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the board 17
4.5 Linkage between compensation for members of the board, senior managers, and executives and the 16
organization’s performance
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided 17

54  The Clorox Company | 2010 CRR


GRI Content Index
Strategy and Profile Disclosures (continued) Page #
4.7 Process for determining the qualifications and expertise of the members of the highest governance body 16
for guiding the organization’s strategy on economic, environmental, and social topics
4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to 17
economic, environmental, and social performance and the status of their implementation
4.9 Procedures of the highest governance body for overseeing the organization’s identification and manage- 16
ment of economic, environmental, and social performance
4.10 Processes for evaluating the highest governance body’s own performance 16
Commitments to External Initiatives
4.11 Explanations of whether and how the precautionary approach or principle is addressed by the organization N/A
4.12 Externally developed economic, environmental, and social charts, principles, or other initiatives to which the 1,15
organization subscribes or endorses
4.13 Memberships in associations 15
Stakeholder Engagement
4.14 List of stakeholder groups engaged by the organization 15
4.15 Basis for identification and selection of stakeholders with whom to engage 15
4.16 Approaches to stakeholder engagement 15
4.17 Key topics and concerns that have been raised through stakeholder engagement 7,8,15
Economic Disclosures
Aspect: Economic Performance
EC1 Direct economic value generated and distributed 11,12
EC2 Financial implications and other risks and opportunities for the organization’s activities due to N/R
climate change
EC3 Coverage of the organization’s defined benefit plan obligations 36
EC4 Significant financial assistance received from government N/A
Aspect: Market Presence
EC5 Range of ratios of standard entry level wage compared to local minimum wage N/R
EC6 Policy, practices, and proportion of spending on locally based suppliers N/R
EC7 Procedures for local hiring and proportion of senior management hired from the local community N/R
Aspect: Indirect Economic Impacts
EC8 Development and impact of infrastructure investments and services provided primarily for 50-53
public benefit through commercial, in-kind, or pro bono engagement
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts N/R
Environmental Disclosures
Aspect: Materials
Management Disclosures 8,38-39
www.cloroxcsr.com/planet
EN1 Materials used by weight or volume N/R
EN2 Percentage of materials used that are recycled input materials N/R
Aspect: Energy
EN3 Direct energy consumption by primary energy source 43-45
EN4 Indirect energy consumption by primary source N/R
EN5 Energy saved due to conservation and efficiency improvements 43-45
EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions 44,47
in energy requirements as a result of these initiatives

  The Clorox Company | 2010 CRR  55


GRI Content Index
Environmental Disclosures (continued) Page #

EN7 Initiatives to reduce indirect energy consumption and reductions achieved N/R
Aspect: Water
EN8 Total water withdrawal by source 45
EN9 Water sources significantly affected by withdrawal of water 45
EN10 Percentage and total volume of water recycled and reused 45
Aspect: Biodiversity
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high 46
biodiversity value outside protected areas
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas N/R
EN13 Habitats protected or restored 46
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity N/R
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas N/R
affected by operations, by level of extinction risk
Aspect: Emissions, Effluents, and Waste
EN16 Total direct and indirect greenhouse gas emissions by weight 43-45
EN17 Other relevant indirect greenhouse gas emissions by weight 43-45
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 43-45
EN19 Emissions of ozone-depleting substances by weight N/R
EN20 NOx, SOx, and other significant air emissions by type and weight N/R
EN21 Total water discharge by quality and destination N/R
EN22 Total weight of waste by type and disposal method 46
EN23 Total number and volume of significant spills N/A
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the N/R
Basel Convention Annex I, II, III, and VII, and percentage of transported waste shipped internationally
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected N/R
by the reporting organization’s discharges of water and runoff
Aspect: Products and Services
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation 39-41
EN27 Percentage of products sold and their packaging materials that are reclaimed by category 41
Aspect: Compliance
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with N/R
environmental laws and regulations
Aspect: Transport
EN29 Significant environmental impacts of transporting products and other goods and materials used for the 44
organization’s operations, and transporting members of the workforce
Aspect: Overall
EN30 Total environmental protection expenditures and investments by type N/R
Social Disclosure: Labor Practices and Decent Work
Aspect: Employment
Management Disclosures 8,31
www.cloroxcsr.com/people
LA1 Total workforce by employment type, employment contract, and region 31
LA2 Total number and rate of employee turnover by age group, gender, and region 31
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, 34
by major operations
56  The Clorox Company | 2010 CRR
GRI Content Index
Social Disclosure: Labor Practices and Decent Work (continued) Page #

Aspect: Labor/Management Relations


LA4 Percentage of employees covered 31
LA5 Minimum of notice period(s) regarding significant operational changes, including whether it is specified in N/R
collective agreements
Aspect: Occupational Health and Safety
LA6 Percentage of total workforce represented in formal joint management-worker health and safety N/R
committees that help monitor and advise on occupational health and safety programs
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related 35
fatalities by region
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce 33,36
members, their families, or community members regarding serious disease
LA9 Health and safety topics covered in formal agreements with trade unions N/R
Aspect: Training and Education
LA10 Average hours of training per year per employee category 33
LA11 Programs for skills management and lifelong learning that support the continued employability of 32-33
employees and assist them in managing career endings
LA12 Percentage of employees receiving regular performance and career development reviews 33
Aspect: Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees per category according 30-31
to gender, age group, minority group membership, and other indicators of diversity
LA14 Ratio of basic salary of men to women by employment category N/R
Social Disclosure: Human Rights
Aspect: Investment and Procurement Practices
Management Disclosures 8,17
www.cloroxcsr.com/workplace-safety
www.cloroxcsr.com/conduct
Clorox suppliers:
www.cloroxcsr.com/business-partners
HR1 Percentage and total number of significant investment agreements that include human rights clauses N/R
or that have undergone human rights screening
HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights 17
and actions taken
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are 17
relevant to operations, including the percentage of employees trained
Aspect: Non-Discrimination
HR4 Total number of incidents of discrimination and actions taken N/R
Aspect: Freedom of Association and Collective Bargaining
HR5 Operations identified in which the right to exercise freedom of association and collective bargaining 31
may be at significant risk, and actions taken to support these rights
Aspect: Child Labor
HR6 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures 17
taken to contribute to the elimination of forced or compulsory labor. Clorox prohibits the use of child labor in
its own operations and that of suppliers.
Aspect: Forced and Compulsory Labor
HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures 17
taken to contribute to the elimination of forced or compulsory labor. Clorox prohibits the use of forced
compulsory labor in its own operations and that of suppliers.

  The Clorox Company | 2010 CRR  57


GRI Content Index
Social Disclosure: Human Rights (continued) Page #

Aspect: Security Practices


HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects N/R
of human rights that are relevant to operations
Aspect: Indigenous Rights
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken N/R
Social Disclosure: Society
Aspect: Community
Management Disclosures 10,50-52
www.cloroxcsr.com/purpose
SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of N/R
operations on communities, including entering, operating, and exiting
Aspect: Corruption
SO2 Percentage and total number of business units analyzed for risks related to corruption N/R
SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures 17
SO4 Actions taken in response to incidents of corruption 17
Aspect: Public Policy
SO5 Public policy positions and participation in public policy development and lobbying 15
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country N/R
Aspect: Anti-Competitive Behavior
SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes N/R
Aspect: Compliance
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with N/R
laws and regulations
Social Disclosure: Product Responsibility
Aspect: Customer Health and Safety
Management Disclosures 10,24-25
www.cloroxcsr.com/products-safety
PR1 Lifecycle stages in which health and safety impacts of products and services are assessed for improvement, 24-25
and percentage of significant products and services categories subject to such procedures www.cloroxcsr.com/products-safety
PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and N/R
safety impacts of products and services during their lifecycle, by type of outcome
Aspect: Product and Service Labeling
PR3 Type of product and service information required by procedures, and percentage of significant products 25
and services subject to such information requirements
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product N/R
and service information and labeling, by type of outcomes
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction 19-20
Aspect: Marketing Communications
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, 20
including advertising, promotion, and sponsorship
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing N/R
communications, including advertising, promotion, and sponsorship by type of outcome
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data N/R
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the N/R
provision and use of products and services

58  The Clorox Company | 2010 CRR


1221 Broadway
Oakland, CA 94612
510-271-7000

www.CloroxCSR.com

ListenWell
Please share your feedback on our report. We want to hear what you liked,
what you didn’t like, what might have surprised you about us and what you
would like addressed in future reports.
Please take a brief survey at http://www.surveymonkey.com/s/CloroxCR.
To express our appreciation for your time and feedback, we will donate
$5 to the American Red Cross International Response Fund for every survey
completed by Dec. 31, 2010, up to $10,000.

  The Clorox Company | 2010 CRR  59

Anda mungkin juga menyukai