 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
|
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
|
|
|
|
|
Company Help
|
Business Customers:
|
Professional Services:
|
Download a Report:
|
|
|
|
|
|
|
|
|
|
|
|
  |
Corporate Governance at P&G
Management, Shareholders and the Board Working Together
Corporate Governance is the interaction of the management, shareholders and board of directors to help ensure that all investors — both shareholders and creditors — are protected against managers acting solely in their own best interest. Corporate Governance consists of laws, policies, procedures and, most importantly, practices that ensure the well-being of the assets of the company. Corporate Governance is at its highest levels when management is acting as if they are long-term investors in the company.
The policies, procedures and practices spelled out in this Web site demonstrate that Procter & Gamble takes Corporate Governance very seriously. It is not hard for our management to act as long-term investors of the company because they, like most Procter & Gamble employees at all levels, are in fact long-term investors.
Employees Are Long-Term Investors
In 1887, before P&G was even a publicly traded company, William Cooper Procter introduced a profit-sharing program for employees. At the time he said, "We should let the employees share in the firm's earnings. That will give them an incentive to increase earnings." He revised that program in 1903 to have the profit sharing be awarded in the form of actual P&G stock. He reasoned that as employees became stockholders, their economic interests and those of the Company would be bound more closely together.
That program still exists today with a large part of each U.S. employee's retirement consisting of P&G stock. Additionally, virtually all employees own P&G stock or stock rights via various investment programs. Because of that fact, employees' economic interests are aligned to those of the Company.
A Foundation of Integrity, Control and Stewardship
P&G has a strong history of operating with integrity throughout the Company — at all levels, in all countries, both internally and externally. Our actions and the actions of all our employees are governed by our Purpose, Values and Principles.
Our commitment to operate responsibly is reflected in the steps we have in place to ensure rigorous financial discipline and Corporate Governance.
- We have an active and highly experienced Board of Directors, with members who understand their role in providing strong corporate governance. Our Audit Committee is comprised exclusively of independent directors, with appropriate financial skills to provide good oversight. The Audit Committee also meets regularly in private session with the Company's independent auditors, Deloitte & Touche.
- We maintain strong internal controls. Our rigorous business process controls include an ongoing program of audit self-assessment, and internal and external audits to ensure compliance with all relevant regulations and standards.
- More than two years ago, we launched a financial stewardship program. It established broader organization focus in this area, strengthened financial discipline in our strategic and daily business decisions and provided clear accountability and ownership.
- We reinforce key employee responsibilities through the Company's Worldwide Business Conduct Manual (PDF), which details management's and the Board of Directors' commitment to conduct the Company's business affairs with high ethical standards. Portions of the Worldwide Business Conduct Manual comprise P&G's Code of Ethics for SEC and New York Stock Exchange Regulatory Purposes, as further described in the Manual.
Doing What's Right
P&G's reputation is earned by our conduct: what we say, what we do, the products we make, the services we provide and the way we act and treat others. As conscientious citizens and employees, we want to do what is right. For P&G, and our global operations, this is the only way to do business.
As you review the materials on this site, including the Q&A section, please note that we also believe that, like every company, we can always improve. If you have a question or comment, please let us know by contacting us at shareholders.im@pg.com.
|
|
|
