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.
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
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.
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.
Performance Achieve financial success with transparency, strong governance and corporate
responsibility embedded in our operations
People Promote diversity and inclusion, opportunity and respectful treatment for everyone who
touches our business
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.
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.
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.
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).
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
Please see The Clorox Company 2010 Annual Report at www.TheCloroxCompany.com for more information on our company’s performance and goals.
-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.
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
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.
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 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.*
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.
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.
SALT
MUNICIPAL BLEACH
TREATMENT MANUFACTURE
SEPTIC TANK
PRODUCT USE
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.
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).
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
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
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.
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.
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.
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
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.
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
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
Tracking to Meet or
Exceed Our 2013 Goals
-20%
-4.5%
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.
“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.
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.
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
$8.8
bags, Clorox® bleach and other disinfecting products $7.8
to the American Red Cross to assist with disaster relief.
6
2009 2010
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.
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 #
www.CloroxCSR.com
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