Society created corporations as legal citizens to provide goods and services on a large scale, requiring greater capital outlay than individuals could handle alone. This "paper citizen," the publicly-owned corporation, has been a phenomenal success: Corporations have been a major driving force in improving the standard of living in the free industrialized world.

As paper citizens, corporations have a responsibility beyond their basic economic function, just like any U.S. citizen. Their success in achieving their economic goals not only makes it possible for corporations to create jobs, pay taxes, provide a return to shareholders and develop new and better performing products, it also helps them support other broad needs of society such as education, the arts, and health and social programs.

A corporation's first responsibility is to stay in business and to be profitable. Bankrupt corporations cannot support schools or the arts. An unprofitable corporation cannot provide employment opportunities for people.

Procter & Gamble believes it has a responsibility to society to use its resources — its money, people, and energies — wisely, for the long-term benefit of society as well as the company.

This basic belief is clearly expressed in P&G's statement of purpose: We will provide products of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales and profit growth, allowing our people, our shareholders and the communities in which we live and work to prosper.

Through the years, P&G has supported wide-ranging programs directly responding to our commitment to enrich the overall quality of life in society. These include:

• A well-defined program of philanthropy, primarily through The Procter & Gamble Fund
• Programs that strengthen the educational system in the United States
• Programs encouraging greater employment opportunities for women and minorities
• Programs aimed at developing and implementing the technology required to solve environmental concerns
• Programs to encourage employee involvement in civic activities and the political process