Reporting on diversity and safety

We have an organizational strategy to touch and improve the lives of our employees. We want to be and be recognized as the Global Leader for Diversity and Inclusion. Diversity and inclusion is more than a strategy at P&G. It is part of our DNA and all we do. We see the power of diversity as a competitive advantage and want to realize its full potential by fully leveraging the unique strengths and talents of our employees. Inclusion is at the core of P&G’s strategy, thus empowering employees to put their passion behind it and bring it to life in meaningful ways. Fostering a culture of inclusion ensures that every employee feels valued, included and can perform at their peak every single day.

Diversity metrics
P&G continues to focus on diversity as a global strategy and expects its work force to become increasingly diverse, enabling us to serve more of the world’s consumers. Global data on enrollment by gender is shown in the following table:

Global Enrollment 2013 2012 2011
% Female
Management 43.6 43.0 42.3
All Other Employees1 39.0 37.1 37.2
(1) Administrative, Technical and Plant Technicians

The percentages of minority and female employees in the United States are shown in the following table:

U.S. Enrollment 2013 2012 2011
% Minorities
Management 24.0 23.9 23.7
Non Management1 18.0 18.1 18.7
% Female
Management 42.0 41.7 41.4
All Other Employees1 36.0 38.3 37.8
(1) Administrative, Technical and Plant Technicians

Industrial Health and Safety
The health and safety of P&G employees are paramount in the principles of the Company:

  • Nothing we do is worth getting hurt.
  • Safety can be managed.
  • Every illness and injury could and should have been prevented.
  • Safety and health are everyone’s responsibility.

The Company tracks and reports two metrics for worker safety: total incident rate (TIR) and total lost workday case rate (LWDC). TIR includes all cases that result in loss of consciousness, lost workdays, restriction of work or motion, medical transfer to another job, or medical treatment beyond first aid. LWDC includes all cases that involve days away from work or days of restricted activity beyond the day of injury or onset of illness. The TIR target for sites is to be below 0.5 cases per year, per 100 employees. To achieve such rates, programs to address employee safety, such as safe behaviors, ergonomics and confined space entry have been implemented. No target has been set for LWDC. Instead, incidents that potentially could lead to lost workdays are managed. The following data is based on criteria established by P&G for use at all sites including acquisitions, plants and technical centers. This year’s TIR was lower versus last year, at 0.34 versus 0.36 incidents per 100 employees, while the lost workday rate was flat at 0.19 versus 0.19 cases per 100 employees one year ago. Both are lower than industry averages.

Audit Programs
P&G’s HS&E audit programs are designed to ensure compliance with national, state, and local regulatory requirements as well as corporate standards and procedures. Audit findings are reported promptly to the business management teams, who must address and correct all issues in a timely manner. P&G’s audit programs apply to all plants, innovation centers, and distribution centers, worldwide. The fundamental philosophy is to use standards worldwide, implemented by trained professionals at facilities and audited each year using a consistent, comprehensive approach. The metrics used are consistent with that philosophy. Audits measure performance against a mandatory set of standards and standard operating procedures. The target performance is 8.0 or better on a 10-point scale. The percentage of sites audited this year was 99 percent.

HS&E Audit Scores
P&G HS&E resources have been working through a rigorous calibration exercise across all geographies to ensure an appropriate calibration and focus on potential high-risk areas. This calibration exercise is helping to ensure we are holding ourselves to the highest standards and has resulted in a decrease in the number of sites with scores > 8.0. In addition, we also included a number of recent acquisition sites this year. As is typical with many acquisitions, it takes time for them to reach an HS&E audit score > 8.0 and several sites are still short of that target. Both of these factors contributed to the decrease in the percentage of sites with HS&E audit scores > 8.0 since 2011. However, since last year we have increased the percentage of sites that have audit scores > 8.0 and have plans in place drive additional progress over FY13/14.

Fire Protection
P&G operates its fire protection program on the basic principle that each facility is unique and should have a program designed to meet its specific requirements. Working with the Insurance Division, HS&E has developed a checklist-based assessment process that evaluates the fire protection equipment, maintenance and inspection, and emergency response capability of a site versus the appropriate level of fire protection required at that site. Each plant, innovation center, and major distribution center is assessed annually. The target performance is 8.0 or better on a 10-point scale.

Fire Protection Audits Score
The fire protection assessment program was changed significantly in 2011 even though we had a historically low number of fire losses and no regulatory issues. The new audit process was designed to be much clearer and calibrated relative to our internal fire protection standards. These process changes resulted in a more rigorous and globally calibrated approach to conducting these assessments. This 2011 process change decreased the number of sites with scores > 8.0. However, since that intervention we have been making steady progress and this year, 61% of sites had Fire Protection audit scores over 8.0. Sites will continue to work against action plans to improve scores over the course of the next year.

Site HS&E Leadership Training
A key indicator of HS&E systems capability is the percentage of sites with trained and qualified leaders. Leadership candidates train on-site for an extended period after attending a week-long seminar where their knowledge and ability to handle specific situations are assessed. For full qualification, the candidates must complete a qualification project at their own plant. Currently, 65 percent of sites worldwide have HS&E leaders qualified by Corporate/GBU staffs, and 76 percent have qualified fire-protection leaders. This training and qualification program applies to all sites, including Technical Centers and acquisitions.