2010 Clorox Corporate Responsibility Report

Be Well, Every Day.

2010 Corporate Responsibility Report

Be Well, Every Day

About This ReportSince 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 PeriodUnless 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 InitiativeOur 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 FeedbackQuestions or comments about Clorox’s corporate responsibility report can be directed to [email protected]. 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.

ContentsChairman’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

StopGerms

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.

PourResponsibly

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®.

Preserve® is a registered trademark of Recycline, Inc.

Naturally

ApplyLiberally

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.

CleanSetting 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

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-beingOur corporate responsibility initiatives tie back to our mission statement and reflect what our people and products do best. That is why the cornerstone of our corporate responsibility efforts — and our purpose — is: “We safeguard family well-being, every day.”

This statement supports our long-standing history of providing everyday disinfecting products for use in homes, schools and

Safeguarding Family Well-Being, Every Day

Donald R. Knauss, Chairman and Chief Executive Officer

Our mission statement is a reflection

of our belief that each of our products

has a meaningful impact on consumers’

everyday 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.

The Five Pillars of Clorox’s Corporate ResponsibilityWe 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. KnaussChairman and Chief Executive Officer

Please take the time to share your thoughts, ideas and questions with us at [email protected].

Safeguarding Family Well-Being, Every Day


Making Everyday Life Better, Every Day for Nearly a Century

Our History: Clean BeginningsThe Clorox Company was founded in 1913 in the San Francisco Bay Area city of Oakland, Calif. We started with just one product, Clorox® bleach, made from the salt marshes of San Francisco Bay. It was initially an industrial-strength liquid germicide sold to Oakland laundries, breweries, walnut processing sheds and water municipalities and was delivered by horse-drawn wagons.

In 1916, we began bottling a household solution of bleach that quickly gained popularity as an effective laundry additive, stain remover, deodorant and disinfectant. In 1921, the first cargo of Clorox® bleach destined for Eastern store shelves was loaded aboard ship at the Port of Oakland.

By 1928 — thanks to extensive national advertising and sales- promotion campaigns stressing its purity, versatility and dependability — Clorox bleach had become a common-place sight in American families’ laundry rooms, kitchens and bathrooms. That year, the company went public for the first time.

Our stock began trading on the San Francisco Exchange. By the mid-1950s, we had established the largest market share of bleach in the U.S. and have never let go of this leadership position.

Clorox Today: Global ReachSince our early days of manufacturing

just one product, we have grown into a global company, manufacturing and marketing some of consumers’ most trusted and recognized brand names:

our namesake bleach and Clorox®-branded cleaning products; Green

Works® natural cleaners; Poett® home care products; Fresh Step® cat litter; Kingsford® charcoal; Hidden Valley® and K C Masterpiece® dressings and sauces; Brita® water-filtration systems; Glad® bags, wraps and containers; and Burt’s Bees® natural personal care products. In fact, nearly 90 percent of the brands in our global portfolio are the No. 1 or No. 2 market-share leaders in their categories. With approximately 8,300 employees worldwide, we manufacture

products in more than two dozen countries and market

them in more than 100 countries. Clorox is headquartered in Oakland, Calif. and trades on the New York Stock Exchange under the symbol “CLX.”


BeAccountablePerformance 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.


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 PrioritiesOur CR strategy and pillars are based on an extensive review and assessment of all facets of corporate responsibility at Clorox involving the following inputs:

• Materiality 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.

Integrating Corporate Responsibility Into Our Business

CR OVERVIEW


Integrating Corporate Responsibility Into Our Business

Strategies Commitments Recent Performance Highlights

PerformanceAchieve financial success with transparency, strong governance and CR embedded in our operations

• Integrate CR into our corporate strategy, with board oversight; continue to adopt best practices.

• Increase transparency of company policies, practices and product ingredients.

• Communicate proactively and respond to stakeholder reports and inquiries regarding CR.

• Continue to strengthen strong enterprise risk management programs and capability, with board oversight.

• Delivered strong FY10 financial performance.• Developed formal CR strategy integrated into

our business.• Recognized for corporate governance practices.• Established formal “Ingredients Inside” product ingredient

communication program in the U.S. and Canada.

ProductsDeliver responsible products made responsibly

• Continue to meet strict science-based safety criteria, while promoting alternative methods to safety testing.

• Provide best-in-class disinfecting solutions.• Provide plant-based alternatives to conventional

product offerings.• Reduce environmental impact of our product offerings.

• Formalized growth platforms addressing infection prevention and sustainability.

• Purchased Caltech Industries, Inc. to further expand our business in health care settings.

• Introduced Burt’s Bees® natural acne care and toothpaste and Green Works® natural laundry products.

• Halfway to goal of making sustainability improvements to 25 percent of product portfolio by 2013 (versus 2009 baseline).

PeoplePromote diversity, opportunity and respectful treatment for everyone who touches our business

• Require employee certification of compliance with company policies on diversity, human rights and labor issues.

• Assign accountability for CR commitments.• Drive supplier code of conduct, supplier diversity and add

eco criteria to supplier selection.• Increase global participation in employee resource groups.

• Met diversity targets, with U.S. representation of managers and above rising to 22 percent for minorities and 40 percent for women.

• Established supplier diversity goal to grow expenditure to 5 percent by 2015.

• Introduced global supplier code of conduct.

PlanetShrink our environmental footprint while we grow our business

• Expand public environmental commitment statements.• Reduce GHG, energy, water and solid waste in our

manufacturing and distribution footprints.• Embed eco criteria in core business processes.• Drive environmental sustainability throughout the workplace.

• Developed an environmental sustainability strategy linked to Clorox’s business strategy.

• Since 2007, reduced GHG emissions by 7 percent, energy use by nearly 5 percent, water use by more than 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.

PurposeSafeguard family well-being, every day

• Implement a global strategic cause platform focused on infection prevention.

• Build on The Clorox Company Foundation’s focus on K-12 education in underserved communities.

• Enhance engagement and extend impact through employee, customer and community involvement.

• In FY09 and FY10 alone, donated more than $7 million in cash grants to nonprofits, schools and colleges; donated more than $16 million worth of products to nonprofits and disaster relief efforts.

Clorox MissionWe 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

CR OVERVIEW


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 approach to corporate responsibility?

Benno Dorer: SVP–GM, CleaninG DiViSion

It’s having a strategy that goes beyond compliance and risk mitigation to deliver real value to our company and to the stakeholders who touch our business, including shareholders, business partners and communities. For example, one of our business growth platforms — infection prevention — leverages the strength of our disinfecting capabilities to address public health concerns around seasonal flu, pandemics and the rising incidence of hospital-acquired infections. While it’s a business driver for the company, it has a meaningful social dimension as well.

Jackie kane: SVP–HR & CoRPoRate affaiRS

Another area in which corporate responsibility creates value is employee engagement. We hear time and again that Clorox people are proud to work here because they know we live by our core value of doing the right thing. For example, employee volunteers around the world have stepped up to support our environmental sustainability efforts. We now have a formal waste reduction program at our headquarters, and employees at other Clorox locations are conducting “dumpster dives” to assess how much waste can be diverted from landfills.

Different Perspectives Inspire Progress Toward a Common Goal

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.

CR OVERVIEW


What’s your response to concerns about cleaning product safety? And how do you reconcile having a portfolio that includes bleach and natural products?

Laura Stein

One of our challenges is that we are establishing a comprehensive data collection system for CR – particularly in our international locations. As we continue to grow our presence outside the U.S., we will need to continue to build these processes so that we can expand programs like product ingredient communication and our overall CR reporting.

Benno Dorer

Another challenge we’re exploring is expanding our infection prevention platform into our social cause efforts. We have a long history of donating bleach and other disinfecting products to help with disaster-relief efforts globally, particularly for sanitizing water. In addition to being there when disaster strikes, I’d like to see us working more 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.

What is your biggest challenge for corporate responsibility in the future?

Wayne DeLker

Product safety is a top priority at Clorox. For years we have applied sound scientific evidence to our product evaluation processes. Before we bring any product to market, our Global Product Stewardship organization evaluates a product’s safety, quality and regulatory compliance, looking at human and environmental health. We take great care in choosing ingredients for our products. For example, we have guidelines against the use of such ingredients as alkylphenol (APs) or alkylphenol ethoxylates (APEs), phthalates and synthetic musks.

We developed Green Works® products because we recognize a growing number of consumers prefer naturally derived cleaning products and we wanted to give them a choice. We are proud of the consumer response to the Green Works® line and its position as the No. 1 natural home care brand. We are also proud of the role bleach has played in public health for generations. It has a history of use in places where killing germs is critical: hospitals, nursing homes, child care centers, schools, restaurants and more. Clorox® regular bleach remains one of the most affordable and effective disinfectants available worldwide.

Where have you made the most significant progress?

Laura Stein: SVP–GeneRal CounSel

Having a formalized corporate responsibility strategy was an important step. We now have a strategy that is integrated into our business and a framework to hold us accountable for our commitments, goals and metrics. We’ve also received positive feedback on “Ingredients Inside,” our product ingredient communication program that addresses consumers’ interest in knowing what goes into the products they use in and around their homes. We worked closely with the Sierra Club to take this step and continue to engage with NGOs, industry associa-tions and regulatory agencies on how our program, and the product ingredient communications efforts of the industry as a whole, can evolve.

Jackie kane

We’ve made progress on our diversity initiatives. We exceed the U.S. Census in all categories and have been recognized for having a strong representation of women in management. The 2009 UC Davis Study of California Women Business Leaders ranked Clorox 14th out of 400 companies in California for having women in director and executive positions. In addition to employee-related diversity initiatives, we’re accelerating our efforts in multicultural marketing and product development to address the unique needs of different consumer segments.

Wayne DeLker: SVP–CHief innoVation offiCeR

Driving growth behind sustainable products is a top priority. We continue to invest in our natural platform with the Green Works® and Burt’s Bees® brands, and our increased focus on innovation is also looking at sustainability in terms of product development and packaging. For example, by concentrating our formula for

Clorox 2® stain fighter and color booster we are reducing the amount of water used in manufac-turing this product by 54 percent, resin needed for bottles by 36 percent and diesel for shipping by 160 million gallons per year. We have a public goal to make sustainability improvements to 25 percent of our products by 2013 (versus base year 2009).

How are you addressing consumer interest in sustainable products?

Different Perspectives Inspire Progress Toward a Common Goal

CR OVERVIEW


The Clorox Company

At-A-Glance Fiscal Year Ending June 30, 2010

Sales By Category

7%

10%

16%

10%

4%

3%

13%

9%

4%

3%

21%

G

F

A

B

C

D

E

H

I

J

K

InternationalHome Care

Laundry

Auto

Away From Home

Bags & Wraps

Charcoal

Cat Litter

Dressings & Sauces

Water Filtration

Natural Personal Care

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

Sales $5.53 billion

Employees 8,300

Manufacturing Plants 41

Markets Served 100+

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Net Sales(in billions)

0

1

2

3

4

5

6

2007 201020092008

$4.85

$5.53$5.45$5.27

1. Return on invested capital (ROIC) is a non-GAAP measure 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.

Net Cash Providedby Operations(in millions)

Net Earnings(in millions)

0

100

200

300

400

500

600

2007 201020092008

$501

$603

$537

$461

0

150

300

450

600

750

900

2007 201020092008

$709

$819

$738$730

ROIC1 Economic Profit 2

(in millions)

0

100

200

300

400

500

2007 201020092008

$379

$433

$376$363

0

5

10

15

20

25

30

2007 201020092008

27%

23%22%

21%

Diluted Net Earnings Per Share(in dollars)

0

1

2

3

4

5

2007 201020092008

$3.24

$4.24

$3.79

$3.23

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

2009

10%

0%

-20%

-10%

-40%

-30%

20082007 2010

Clorox: 10%

S&P 500: -27%

Peers: 4%

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.

The Clorox Company: At-A-Glance

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1. Be a high-performance organization of enthusiastic ownersOur 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 productOur 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 shelfOur 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 loveOnce 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.

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:

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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 real competitive advantage for Clorox. For example, our ability to save money helps to offset inflation and capture savings that can be used to invest in growth. Becoming more efficient in how we do business helps us save time, money and resources that can be redeployed to work that drives the highest value for the company.

Clorox ranked No. 7 among our top strategic partners in the most recent Cannondale Associates PoweRanking®* survey, which asks retailers to rank more than 100 manufacturers on a number of dimensions.

*PoweRanking® is a registered trademark of Cannondale Associates.

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Megatrends Point the Way to More GrowthWe’re leveraging four consumer megatrends that drive key areas of our corporate strategy, guiding our investments to drive growth of our business, including product innovation, marketing communications and retail activities.

Health and Wellness Addressing the global need for healthy homes and public places, including schools and hospitals

Sustainability Focusing on consumers’ personal environments — what’s in them, on them and around them

Multicultural Addressing the unique needs of multicultural consumers

Affordability/Value Delivering high value to consumers through a balance of product performance and price

Four Key Strategies


Understanding, Sharing and Taking Action From Stakeholder EngagementIt’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 different ways. For example:• Shareholders: We hold annual meetings during

which we inform our shareholders about our company strategy, financial performance and business growth objectives. We also report our performance through such communications as our quarterly conference calls and annual report.

• Employees: We conduct regular employee engagement surveys where we look at engagement in two ways: rational and emotional. In other words, we ask employees if both their heads and hearts are in the game. We believe a person who is engaged emotionally and rationally will be better able and willing to perform to their potential. We also conduct quarterly, global “town hall” meetings where we share important company information and invite employees to ask questions or share thoughts with our CEO and other executives.

• Consumers: We talk to consumers through in-home studies, focus groups and surveys to better under-stand how they use our products so we can continue to deliver high-quality products that address their needs.

• Public Health Community: We are active participants in a number of public health organizations because we believe our disinfecting capabilities can help make a positive difference in issues such as infection control.

• NGOs: We meet with NGOs on a variety of issues, including sustainability and product safety.

• Communities: We make a positive impact on our communities through The Clorox Company Foundation’s support of K-12 education and through employee volunteerism. We also respond to our communities in times of natural disaster by providing financial aid and donating trash bags, bleach and other disinfecting products to help with clean-up efforts and sanitization needs.

Clorox is also a member of organizations that are related to our business and priority issues.Public Health: Association for Professionals in Infection Control and Epidemiology, Inc (APIC), Society for Healthcare Epidemiology of America (SHEA), American Society for Healthcare and Environmental Services

Industry: Consumer Specialty Products Association, American Cleaning Institute, Grocery Manufacturers Association

Environmental Sustainability: U.S. Environmental Protection Agency Climate Leaders, Design for Environment and Waste Wise and Smart Way Shipper Programs; Sustainable Packaging Coalition; Natural Products Association

Diversity/Inclusion: Executive Leadership Council, Hispanic Advisory Council, Minority Corporate Counsel Association, Out & Equal Workplace Advocates, National Minority Supplier Development Council

Community: Boston College Center for Corporate Citizenship, Bay Area Corporate Volunteer Council, Entrepreneur’s Foundation, Northern California Grantmakers

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Our board of directors is composed of individuals who, on the basis of their knowledge and experience, make valuable contributions to the overall conduct of the business. The nominating and governance committee is responsible for developing and recom-mending board membership criteria to the board for approval and periodically reviewing these criteria. Board candidates, including incumbent directors, are considered based upon various criteria, including their broad-based business skills and experiences, prominence and reputation in their professions, global business and social perspective, concern for the long-term interests of the stockholders, and personal integrity and judgment. In addition to the board and committees’ conducting self evaluations on an annual basis, the nominating and governance committee reviews general qualifications and expertise of each board member on at least an annual basis.

Committees of the Board of Directors Executive Committee acts for the board in certain matters when the full board cannot be convened.

Audit Committee oversees the integrity of financial statements, the company’s accounting and financial controls, including independent and internal auditors.

Finance Committee oversees and makes recommendations to the board with respect to the company’s major financial policies and actions, including capital structure and borrowing.

Management Development and Compensation Committee oversees management development and succession planning processes and approves compensation for executive management and various benefit plans for the company as a whole.

Nominating and Governance Committee oversees the company’s corporate governance practices, director nominations and board evaluation. Also oversees the company’s compliance with certain legal and regulatory requirements and discusses with management the status of pending litigation, environmental issues and other areas of oversight as may be appropriate.

Executive CompensationThe board of directors’ management and compensation committee, composed entirely of independent directors as required by the NYSE listing standards and consistent with SEC rule 16b-3, reviews the design and implementation of our executive management program. The committee applies a rigorous and balanced approach to executive compensation, ensuring that compensation is tied to current and long-term company performance; is sufficient to attract and retain high-caliber, experienced leaders; aligns the interests of our executive officers with the interests of our stockholders; and is financially efficient, resulting in a reasonable level of costs that are supported by performance.

Governance and EthicsWorld-Class GovernanceClorox 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.*

* RiskMetrics, December 2009

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Our stakeholders are welcome to communicate directly to an individual board member, a board committee or to the board of directors as a whole.*

Additional details on Clorox’s board of directors, including topics such as qualifications, performance evaluation and how we address potential conflicts of interest can be found at: www.CloroxCSR.com/guidelines.

Doing the Right ThingClorox’s code of conduct establishes the company’s ethical and legal standards of behavior and business practices applicable to all our directors, executives, employees and contractors around the world. We require all Clorox board members, employees, as well as contractors, to undergo training and certify compliance with our code. Covering such topics as environmental safety and compliance, human rights, workplace behavior, antidiscrimination, harassment prevention, bribery and anticorruption, and political contributions, our code embodies Clorox’s commitment to doing the right thing every day. Clorox provides code of conduct training approximately every 18 months on a rolling basis. Training is conducted in English, Spanish and Chinese. In fiscal year 2010, 81 percent of all Clorox employees completed compliance training, which includes our code of conduct.

Clorox has global compliance hotlines which allow our employees to anonymously raise questions or concerns or report misconduct. We protect any employee who reports misconduct in good faith.

Clorox’s code of conduct can be found online at www.CloroxCSR.com/conduct.

Working With Responsible PartnersOur commitment to ethical business practices and treating people with dignity, respect and equal opportunity extends to our business partners.

Clorox’s supplier code of conduct addresses business-practice standards of our third-party suppliers, their parent companies and affiliates. Our code, based on the International Labour Organization Core Labor

Conventions, outlines our expectations that suppliers around the world share our commitments in the areas of human rights and labor, health and safety, the environment, and business conduct and ethics. Clorox’s standard supplier agreements require certification of material compliance with the supplier code of conduct, including our human rights clause that prohibits such actions as harassment or inhumane treatment, discrimination and involuntary or child labor. Clorox’s global supplier code of conduct is available in English, Spanish and Chinese.

Clorox’s supplier code of conduct can be found online at www.CloroxCSR.com/business-partners.

* Correspondence to our board of directors should be sent to our headquarters address: The Clorox Company, c/o Secretary, 1221 Broadway, Oakland, CA 94612-1888.

PERFORMAN

CE

OUR VALUESAt Clorox, our strong corporate values not only guide us in achieving widespread success, but also are the foundation of everything we do.

Do the Right ThingThe long-term health of our company depends on our integrity. At Clorox, we have a tradition of honesty, fair dealing and ethical practices. We strive to use facts to determine the right thing to do, and communicate openly about our choices.

Stretch for Results Our success is measured by our ability to consistently win in the marketplace by exceeding the expectations of our consumers, customers, shareholders and each other.

Take Personal OwnershipProgress is not only driven by people who take personal ownership of delivering results, but by making the process to achieve these results as quickly, simply and effectively as possible. Each of us has a role in helping to ensure we deliver excellent results and achieve our goals.

Work Together to WinOur success depends on productive collaboration among Clorox people, between our company and our business partners, and among our company and our communities. While individual ownership and contributions make a difference, teamwork is essential to achieving even greater results.


ProductsResponsible products made responsibly

BeTrusted

18 The Clorox Company | 2010 CRR18 The Clorox Company | 2010 CRR

Our Products Delight ConsumersTrust 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.

PRODUCTS

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.


Our Products Delight Consumers

PRODUCTS

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.


SALT of the EarthBleach is an essential product for whitening laundry, cleaning homes and disinfecting household and commercial surfaces. It sanitizes household items such as kids’ toys, baby bottles and pet bowls. You can even use bleach to keep cut flowers fresher longer. Most important, bleach continues to play a vital role in protecting public health — it is one of the most effective disinfectants for killing germs that can cause life-threatening infections such as Clostridium difficile (C. diff), methicillin-resistant Staphylococcus aureus (MRSA) and the flu virus, including H1N1 influenza.

There are many misperceptions about bleach, possibly due to the misnomer “chlorine bleach.” Clorox® regular bleach, in fact, does not contain free chlorine. Our regular household bleach is made up of a 6.0 percent simple solution of sodium hypochlorite (oxygenated salt) and water. Upon use as a laundry additive or disinfectant, 95 to 98 percent of bleach rapidly breaks down into salt and water. Municipal wastewater treatment or septic systems effectively treat the remaining 2 percent to 5 percent of by-products.

Household bleach does not contaminate water by producing dioxins. In addition, the European Commission’s Scientific Committee on Health and Environmental Risks conducted a study on sodium hypochlorite that assessed all foreseeable scenarios in which trihalomethanes could be formed. These scenarios showed no significant adverse environmental impacts involving sodium hypochlorite*. Studies also have shown that there is no exposure to trihalomethanes in quantities above even the toughest standards such as California Proposition 65 Safe Harbor levels as a result of using household bleach.

For nearly 100 years, Clorox® regular bleach has been a staple in helping to keep whites white and helping to rid our homes of germs that can cause illness. Given its many practical household uses and its global disinfecting applications, we are confident that Clorox® regular bleach will continue to be a dependable, salt-of-the-earth product for years to come. Visit www.FactsAboutBleach.com to learn more.

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

The Power of BleachAnyone who has ever witnessed the power of bleach 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. Clorox® regular bleach traces its origins to the saltwater ponds of San Francisco Bay early in the 20th century. Using the abundant brine available in the ponds, company inventors ran an electrical current through a saltwater-based compound to produce sodium hypochlorite bleach. The resulting product was sold to industrial businesses for use as a disinfectant. Soon, a less concentrated version became a household cleaning staple. During the past century, liquid bleach has performed some very important tasks. In 1969, the Apollo space capsule was disinfected with bleach upon its return to Earth. During World War I – in the days before penicillin – the lives of some wounded soldiers were saved by the antibacterial properties of bleach. During World War II, bleach was used again to destroy bacteria. Today, bleach continues to be used to purify water and help control contamination in times of emergency, such as natural disasters.

THE BLE ACH CYCLE

PRODUCT USE

SALT

BLEACH MANUFACTURE

MUNICIPAL TREATMENTSEPTIC TANK

PRODUCTS

Transitioning US Operations From Chlorine to High-Strength BleachWhile Clorox® bleach does not contain free chlorine, chlorine has been used as a raw material in household bleach manufacturing. In 2009, we began transitioning our U.S. bleach manufacturing processes to the use of high-strength bleach instead of chlorine. This change helps us to better ensure the supply of raw materials and provides another layer to our industry-leading security practices.


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.

Infection Prevention:Our Heritage. Our Future.

PRODUCTS

* 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 the spread of infection. Given our strong heritage in manufacturing best-in-class disinfecting products, Clorox has a compelling value proposition to put forth in this cause.

We believe our disinfecting products and their effectiveness at killing staph, salmonella and E. coli, influenza viruses, rhinovirus (one of the causes of the common cold) and numerous other harmful germs give us a unique responsibility. The swift response of Clorox during the H1N1 pandemic of 2009 is a good example of the role we can assume in times of public health crisis. During this time, we:

• Worked 24/7 to satisfy demand in Mexico for disinfecting wipes, which spiked 30 times higher than normal during the initial outbreak

• Distributed, in partnership with the National Education Association, canisters of Clorox® disinfecting wipes to 100,000 U.S. teachers in four days

• Enhanced www.Clorox.com with a new section that provided tips for preventing the spread of H1N1

• Created educational materials for our customers to distribute to shoppers in their stores

• Partnered with the American Red Cross to develop public service announcements about flu preparedness.

Insights gained from this experience, as well as the more predictable seasonal flu outbreaks, reinforce the need for infection prevention. In a world that becomes more closely connected every day, there is little doubt that infection control will be an ongoing global issue well into the future.

Clorox and Basketball Star Grant Hill Team Up to Educate About MRSAOf 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.

PRODUCTS

Infection Prevention


Play It Safe, Every Day

For our cleaning products, this process begins in the research and development phase where we analyze each of the materials that go into making a product.

The next step is to initiate assessments of environmental and human safety. Scientists review each ingredient to determine its environmental impact, while toxicologists review available data for any health concerns. Also, as part of this phase, we conduct a global regulatory review to determine if any countries have limitations on the ingredients and formulations in question.

Product safety analysis also includes a comprehensive exposure and risk assessment for all ingredients. This analysis considers both the short- and long-term impacts of these materials from incidental and accidental exposure, as well as the potential routes of exposure such as skin, eye, ingestion and inhalation.

During the product evaluation process, if we identify an environmental or health risk that cannot be sufficiently mitigated, the formulation is halted.

Using nonanimal product safety evaluations is the norm at Clorox. Animal testing is a very rare exception, used only when required by law or when all other efforts have been exhausted to establish a product’s safety profile; such instances require senior management approval, confirming there is no other way to proceed. Through our involvement with John Hopkins Center for Alternatives to Animal Testing, the Institute for In Vitro Sciences and other efforts, we actively support developing alternative testing methods. Ultimately, we intend all of our product development processes to satisfy all our evaluations, using only alternative methods to demonstrate the safety profile of a product and we’re actively working to that end.

Once a product leaves a store shelf, we ensure that product labels clearly provide the information necessary to safely use, store and dispose of the product and its packaging. All of our product labels include clear directions for use, precautionary

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.

PRODUCTSCris Spillet and other R&D employees thoroughly test and analyze all product ingredients to ensure Clorox products are safe when used as directed.


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 the U.S. and Canada has an MSDS that is available at www.CloroxCSR.com/products-safety.

Regulatory ComplianceAll products manufactured and distributed are subject to local, state, federal and other regulations. To comply, we perform safety tests, meet labeling guidelines of regulatory agencies and adhere to applicable regulations for all ingredients and ingredient formulations used in our products. We also ensure we meet or exceed local regulatory requirements in all markets where we operate or sell our products.

U.S. products classified as antimicrobials, such as disinfectants or sanitizers, which represent approximately 27 percent of our U.S. product portfolio, are subject to registration with the U.S. Environmental Protection Agency (EPA). These formulations undergo detailed chemistry, efficacy and toxicology review by the EPA before approval for market. The EPA strictly governs the labeling and packaging of these products, with predetermined criteria based on the nature of the product.

PRODUCTS

Strict Fragrance and Preservative GuidelinesWe maintain strict guidelines about the use of fragrances and preservatives in our formulas. We require all fragrances purchased from third-party suppliers to comply with Research Institute for Fragrance Materials (RIFM) guidelines and recommendations, as well as International Fragrance Association (IFRA) standards. RIFM and IFRA define and regularly update the safe level of use for individual fragrance ingredients. Fragrances must not contain Alkyphenols (AP) or Alkylphenol Ethoxylates (APE), including, but not limited to, octylphenol ethoxylates and nonylphenol ethoxylates, musk ambrette, diacetyl, musk xylol and phthalates.

Preservatives are necessary in some formulas to prevent the growth of microorganisms such as bacteria and mold. In such cases, we take great care in the concentration levels of any preservative that we use. In the U.S., we limit 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.

Play It Safe, Every Day

The Clorox Company | 2010 CRR 25 The Clorox Company | 2010 CRR 25

To view the list of ingredients for Clorox’s cleaning, disinfecting and auto care products, visit www.CloroxCSR.com/ingredients-inside.

PRODUCTS

Leading the Industry in Ingredient TransparencyToday, 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.


Mainstreaming Natural ProductsAs 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.

PRODUCTS


PRODUCTS

Defining Natural & GreenAs 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 confusion among consumers about the true meaning of “natural” and “green” product labeling. These insights prompted us to be extremely clear that Green Works® products are derived from plant-based, readily biodegradeable cleaning ingre-dients. Green Works® products are also recognized by the Environmental Product Agency’s Design for the Environment (DfE) program and carry the DfE logo, which demonstrates that Green Works® products meet the program’s stringent criteria for human and environmental health. The Burt’s Bees® brand has also addressed the problem of label confusion by joining with other natural personal care companies and the Natural Products Association to develop standards regarding which ingredients can and cannot be considered natural, and ultimately, whether or not a product can be labeled as natural. As part of this process, the Natural Seal was developed to provide readily identifiable certification on product packaging for consumers. In order to meet the seal’s criteria, products labeled as natural must be: • Natural: Made of natural ingredients and

manufactured to maintain ingredient purity.• Safe: Avoid any ingredient that research shows

may have a suspected human health risk.• Responsible: Use no animal testing in

its development.• Sustainable: Use biodegradable ingredients and

the most environmentally sensitive packaging.

Mainstreaming Natural Products

Fast forward 26 years later and the Burt’s Bees® brand is the leading natural personal care brand in the U.S. and growing rapidly in two dozen countries around the world. Clorox acquired the brand in 2007. Its original, iconic lip balm product is now joined by more than 100 other natural products ranging from skin moisturizers and shampoo to recently introduced acne solutions and toothpaste.

Like the Green Works® brand, the growth of the Burt’s Bees® brand has tracked closely with consumers’ growing desire to provide safe and natural products for their families. From its humble origins, Burt’s Bees® products can now be purchased in specialty and mass retail locations in the U.S. and abroad.

Today, the Burt’s Bees® and Green Works® brands are providing natural, effective and appropriately priced products that are winning with consumers. These brands are also providing Clorox with a strong base from which to further develop awareness and acceptance of natural products in traditional retail channels and among mainstream consumers. From our perspective, this is the perfection intersection of social responsibility and business opportunity and we will pursue both with equal enthusiasm.


BeInclusive

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.


Creating a culture of inclusion is an integral part of Clorox’s history that is evident throughout the company. Our hiring and promotion decisions are based on employees’ abilities, and we expect our suppliers to adhere to those same standards. We strictly prohibit any discrimination on the basis of race, religion, national origin, gender, disability, age, marital status, citizenship status, veteran status, sexual orientation or status regarding public assistance.

We are proud of the following facts about our workforce. These numbers exceed U.S. Census Bureau figures:

• 51 percent of all Clorox employees and 40 percent of our managers in the U.S. are women. In a 2009 UC Davis Study of California Women Business Leaders, Clorox ranked 14th out of 400 companies for having women in director and executive officer positions.

• 30 percent of U.S. Clorox employees and 22 percent of our U.S. managers are minorities, including Native American, Asian, African-American, Hispanic, Pacific Islander and multiracial.

Expanding Our Diverse Supplier NetworkWe are proud of the work we have done to date to build strong partner relationships with certified diverse companies. In the last year we have awarded over $11 million in new business to certified women- and minority-owned suppliers. We will continue to look for new opportunities with diverse companies. Accordingly, we are executing against a comprehensive strategy to grow our total diversity expenditure to 5 percent by 2015. Diversity and inclusion have been a fundamental part of Clorox’s success, and we will continually extend and improve our focus in these areas. Now more than ever, embracing diversity and inclusion across all areas is essential to our future.

Clorox Ranks High in Diversity Measures

Clorox has earned a 100 percent rating in the Human Rights

Corporate Equality Index for four consecutive years.

CORPORATEEQUALITY INDEX

2010A Report Card on Lesbian, Gay, Bisexual and Transgender Equality in Corporate America

Walmart Recognizes Clorox for Diversity

In January 2010, Clorox received the

Visionary Award for Diversity as part

of Walmart’s Martin Luther King Day

celebration. Nominated by Walmart’s

associate resource group, Pride,

the award recognized our efforts to

integrate diversity and inclusion in

the business.

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.

PEOPLE


Committed to High Labor Standards We have nearly 8,300 employees around the globe – from scientists to salespeople from production employees

to packaging professionals. We are committed to the well-being of all Clorox employees worldwide, and, where

applicable, working with union representatives who work with approximately 6 percent of our workforce.

We adhere to all applicable labor laws and standards globally and are committed to offering competitive

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 Total U.S. Population by Age Group

2.0%

20s

2.3%

2.7%

30s 40s 50s

1.5%

0.6%

60s

U.S. Employee Turnover Total U.S. Population by Gender

6%

3%

FemaleMale

4,099

PRODUCTION EMPLOYEES

NONPRODUCTION EMPLOYEES

4,140

Clorox Workforce by the Numbers (2010)

Gender DiversityU.S.: 51% 40% Female Employees Female Managers

Global: 35% 38% 23% Female Employees Female Managers Female Executive Committee Members

7%

10%

16%

10%

4%

3%

13%

9%

4%

3%

21%

G

F

A

B

C

D

E

H

I

J

K

Employees Caucasian 70 percent

Minorities 30 percent Asian 14 percent African-American 9 percent Hispanic/Latino 6 percent Other 1 percent

7%

10%

16%

10%

4%

3%

13%

9%

4%

3%

21%

G

F

A

B

C

D

E

H

I

J

K

Managers Caucasian 78 percent

Minorities 22 percent Asian 11 percent African-American 5 percent Hispanic/Latino 5 percent Other 1 percent

Clorox Ranks High in Diversity MeasuresPEOPLE


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 TraitsAt 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 Integrity 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.

Optimism 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 LeadWe 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.

Career Development is a Strategic Investment

PEOPLE


Employees Connect to StrategyWe 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:• Plan work results, review overall performance and

skill proficiency• Establish and drive performance and development

plans• Receive feedback and coaching on a regular basis• Share information on career interests• Make quality pay decisions

All Clorox employees are covered by a predefined and standardized performance appraisal process, and more than 90 percent of employees receive regular performance reviews. We believe development is owned jointly by employees and managers, and all salaried employees are required to create and maintain individual development plans.

Recognition Encourages Continued AchievementClorox fosters a culture of recognition. We encourage and reward recognition not just from managers, but also among peers. We understand that we own each other’s success, and it’s making Clorox a better place to work.

The Bravo recognition program in the U.S. provides tools and incentives to encourage peer-to-peer recognition, manager discretionary recognition and special purpose recognition programs.

Training by the NumbersOur nonproduction salaried employees have access to leadership and skills development training and education. Each year, the company offers more than 230 hours of leadership and management training programs, 160 hours of instructor-led classroom training and 10 hours of e-learning courses. Approximately 90 percent of nonproduction employees participate in the corporate training programs offered. Specialized function, department-level and site-specific training is also provided across our sites.

Our production employees and contract employees around the world complete skills certification courses, as well as safety and health training that aligns with federal, state and local requirements. We require an average of 20 hours of safety training for new employees and recurring annual, quarterly and monthly training on a wide variety of topics as determined by specific job requirements and tasks.

Career Development is a Strategic InvestmentPEOPLE


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) contributions2. 401(k) match3. Value sharing4. Pension

Employee Engagement Remains HighEmployee 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.

Competitive Compensation Rewards Performance

Clorox Employee Engagement

75%

81%

2008 2009 2010

81%

* 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, and other types of organizations, such as public utilities and government agencies.

PEOPLE


Employee Safety and Wellness Are Top PrioritiesPreventing 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 RatingSafety 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.

PEOPLE


Employee Safety and Wellness

PEOPLE

Preparing for Tough TimesWe 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 LifestyleClorox 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 • Short- and long-term disability• Prescription services • Vision • Life insurance• Dental • Counseling • Accidental death and dismemberment

Clorox’s wellness programs encourage our employees to participate in preventative care, such as getting an annual physical, taking health risk assessments or participating in smoking cessation programs.

These programs benefit employees by promoting good health and by driving down overall health care costs. Clorox offers weight-management resources, a quarterly health newsletter and several wellness incentive programs to employees, including a $125 incentive program for getting your annual physical.

In addition to physical health benefits, we offer a variety of other benefit programs designed to assist employees and their families through different needs in life. For example, in the U.S., we offer employees and their immediate family members confidential counseling services through our Employee Assistance Program. We also offer adoption assistance and retirement savings programs.

Clorox supports a balanced lifestyle by offering alternate work schedules where possible, such as job sharing, telecommuting and flexible hours, which allow workers to have a say in their schedules. We offer summer hours to office employees around the world, closing our offices for business at 12:30 p.m. local time on Fridays to give employees an early start to their weekends during the summer season.

Preparing For and Preventing the Spread of H1N1In the spring of 2009, a substantial outbreak of the H1N1 influenza virus hit Mexico, sounding alarm bells around the world. With flu season approaching and fears of a wide-spread pandemic growing, we quickly formed a team to develop internal preparedness and prevention plans.

We were focused on two key priorities: First, sustaining the health and wellness of employees; second, developing contingency plans to minimize impact to the business in the event of widespread absenteeism.

Cleaning protocols detailing how to disinfect hard surfaces, hand-washing guides and other wellness tips and tools were quickly posted throughout our facilities and office environments. We also developed a website dedicated to providing educational materials, prevention practices, H1N1 updates and public health resources to Clorox employees.

We also created detailed contingency plans to prevent major business impacts, including developing policies that address time off and pay. However, these plans were never needed, as the majority of employees remained healthy and working throughout the duration of the H1N1 pandemic.


BeMindfulPlanet 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.


Accelerating Our Eco ProgressClorox 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.

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Corporate Scorecard Includes Sustainability GoalsOur 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 ComplianceManaging 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 ImpactClorox 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

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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.

Transforming to a More Sustainable Product Portfolio

Line extensions represent an opportunity for brands to incorporate sustainability enhancements

Kingsford ® competition briquets are made with 100% natural ingredients that make the coals burn hotter, provides great taste and results in less ash.

Glad® compostable trash bags are made with renewable resources for use in municipal composting programs where available.

Fresh Step® natural cat litter provides a product for cat owners who value a natural option.

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

The Kingsford® brand has recently launched a product improvement that also reduced the amount of raw material used in a briquet by 7 percent.

Glad® ForceFlex® trash bags are saving more than 1 million pounds of plastic film per year compared to regular trash bags, while also providing consumers with a stronger bag.

Clorox 2® stain fighter and color booster comes in a new concentrated version, reducing the amount of water used in manufacturing this product by 54 percent, resin needed for bottles by 36 percent and gallons of diesel for shipping by 160 million gallons annually.

Some of our businesses have built sustainability into their core purpose

The Burt’s Bees® brand aims to maximize the overall well-being of people and the planet through The Greater Good™ business model.

Green Works® naturally derived, plant-based cleaning and laundry products seek to meet consumers’ growing desire for natural products.

The Brita® water-filtration brand educates consumers about the opportunity to reduce waste from disposable plastic water bottles.

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Packaging Changes Reduce WasteMany 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.

PLANET


GreenOn 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 and wellness component. When you add the brand’s environmental benefits, the overall value proposition becomes even more compelling. Consider the fact that Americans alone drank nearly 8.7 billion gallons of bottled water in 2008*, with most bottled water containers ending up in landfills.

One Brita® pitcher filter can effectively replace as many as 300 standard 16.9-ounce bottles of water.† And used Brita® filters can now be recycled thanks to our partnership with Preserve®, the leading maker of 100 percent recycled household consumer goods. Brita® filtered water also offers an economical

alternative to bottled water. The average 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.

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Measuring, Managing and Minimizing Our Operational FootprintOver 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 orExceed Our 2013 Goals

-10%

-7%

-10%

-4.5%

-10%-8.5%

-20%

-9%

GHG Energy Water Waste

PERFORMANCE TO DATE (2007 baseline)

2013 GOAL (per case of product sold)

PLANET


Greenhouse Gas Emissions and Energy Use DownWe are actively working to reduce our GHG

footprint. We’ve made a pledge to reduce our GHG emissions by 10 percent per case of product sold from 2007 to 2013. We also joined the EPA’s Climate Leaders Program in 2008 and received EPA SmartWay Transport Partner certifica-tion this year as part of our commitment to reduce our GHG footprint.

Our recent GHG and energy use reductions are due primarily to retrofitting 22 of our manufacturing plants, distribution facilities and major offices with energy efficient T5/T8 lighting and motion sensors. We’re also moving 30 percent of our product distribution from trucking to more efficient intermodal rail.

In addition to these strategies, Clorox is exploring other innovative ways to reduce our GHG emissions. The Burt’s Bees® business, for example, is purchasing renewable energy credits in the form of wind energy, while the Kingsford® business is using renewable energy sources from its own manufacturing processes to reduce dependence on the electricity grid.

GHG Emissions by Source(’000 metric tons)

SCOPE 3

SCOPE 2

SCOPE 1

204

74

322

2007

600

75

319

201

2008

595

187

300

2009

561

74

CO2 Equivalent GHG

600

2007

595

1.37

1.34

2008

561

2009

GHG (’000 metric tons)

RATIO (metric tons ofGHG per 1,000 cases)

1.27

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.

EnergyConsumption

2007 2008 2009

ENERGY CONSUMPTION(’000 of MWh)

RATIO (MWh of energy per 1,000 cases)

8231.87

1.78

1.86818

787

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.

PLANET


Other Gas Emissions and Particulate MatterIn addition to GHG emissions, Clorox is committed to carefully monitoring and working to minimize other gas emissions and particulate matter. Our manufacturing processes use a minimal amount of 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 nitrogen oxides. Our plants comply with air permits that limit these pollutants based on federal, state and local government regulations. We are actively looking for technologies and efficiencies to further reduce particulate matter emissions in the future.

On Track to Achieve Our Water-Reduction GoalClorox has made strong progress in reducing our water use in the past two years as a result of initiatives that addressed our water recycling infrastructure, upgraded equipment and replaced water-cooled with air-cooled compressor systems. Two of our Kingsford® charcoal plants, for example, have each reduced water consumption by more than 30 percent. We believe these types of initiatives, as well as changes to manufacturing facility water management practices, will enable us to meet or exceed our overall water-use reduction goal of 10 percent by 2013.

Water Consumption

1,029

2007

960

2008

9522.352.17 2.15

2009

CONSUMPTION (millions of gallons)

RATIO (gallons of water per case)

By volume, most of the water consumed by Clorox is derived from city water utilities. A small fraction of our total water use is derived from surface and well water.

While the Clorox GHG inventory has not been independently verified by a third party, our GHG inventory gathering process and calculations (for 2005-2009) were led and conducted by a third-party environmental services firm that has detailed knowledge of the operations and air emissions characteristics of the major Clorox manufacturing facilities and uses the methodologies and emissions factors from well-known GHG protocols, including those of the U.S. Department of Energy, World Resources Institute and EPA’s Climate Leaders.

GHG Emissions by Gas Type (2009)

N20 7.5 percent

CH4 1 percent

CO2 91 percent

HFCs 0.5 percent

PLANET

GHG Emissions by Segment (’000 metric tons)

� HOUSEHOLD� CLEANING� LIFESTYLE� TRANSPORT� INTERNATIONAL� OFFICES

2251

250

202

1461

6002252

248

198

1461

595

2148

236

183

1458

561

20082007 2009


“Dumpster Dives” Help to Reduce Landfill WasteCost savings initiatives and manufacturing excellence programs have helped Clorox build

a solid record in the areas of reducing and reusing materials, but recent audits have found that we still send too much waste to landfills. “dumpster dives,” where employee volunteers literally dump and sort through trash, have been an effective initiative to raise awareness of what can be recycled and to encourage changes about what gets deposited in the trash. Dives at our Tampa, Fla., and Amherst, Va., plants have led to reductions of waste sent to landfills of more than 50 percent. These achievements are helping us make progress toward our commitment to reduce company-wide solid waste by 20 percent (per case of product sold) from 2007 through 2013.

The vast majority of the solid waste that Clorox produces is nonhazardous in nature and we employ manufacturing practices that minimize such waste. The small amount of hazardous waste that we do produce is properly handled by approved vendors and properly tracked through its disposal process.

Biodiversity and Habitat ConservationThe preservation and protection of biodiversity and natural ecosystems go hand in hand with resource conservation. To this end, Clorox complies with global, federal, state and local biodiversity legislation and regulations and, whenever possible, goes beyond legal requirements to ensure that our manufacturing operations do not negatively impact biodiversity, natural habitats, wetlands, forest lands, fisheries or local plant and animal species.

Our overall operational impact on biodiversity is insignificant, given the location and nature of our operations as well as the products we manufacture. The one exception is our plant in Aberdeen, Md., which manufactures bleach products. It is located on 150 acres of wetlands owned by Clorox that we are committed to protecting. In 1993, our Aberdeen plant, 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.

Solid Waste

13,893

2007 2008

12,78331.7

28.4 28.9

2009

TONS

RATIO (tons of waste per million cases)

12,590

PLANET

Clorox’s “dumpster dives” help divert waste from landfills.


This process begins through our daily habits and in our workplace environments. In North America, for example, over the past two years Clorox has reduced paper use by 30 percent and converted all remaining paper to 100 percent recycled content. We have reduced business travel by 20 percent and converted company cars to hybrid vehicles.

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 certification a commercial property can achieve. The Clorox Company building is one of only 38 buildings in the U.S. to achieve LEED-EB certification. We achieved this certification by decreasing the environmental footprint of our facility’s operations through dozens of building improvements over the last couple of years.

Employee Volunteers Drive “Green-Handed” IdeasOne of our most successful employee involvement strategies to date has been to recruit those employees most passionate about positive environmental change. In 2008, we created the Clorox Eco Network, a global team of employee volunteers to help our company and fellow employees make sustainable decisions on behalf of the environment. The network serves as both a forum for new ideas and the driver of workplace eco initiatives. Recently, the network launched an intranet page to share green news and tips, orchestrated Earth Day celebrations across major Clorox sites and placed

“Get caught green-handed — turn off the lights” stickers on 2,500 light switches in locations across Clorox facilities. The Eco Network has now focused its attention on waste reduction, in particular recycling and composting, at key Clorox sites like our Oakland general offices, where the network hopes to divert 90 percent of our waste from the landfill.

Encouraging Sustainable Workplaces and HabitsThe 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.

PLANET

Eco Volunteers Go GlobalThe Clorox Eco Network has no borders and has expanded throughout our global operations. For example, in Chile volunteers have combined their ingenuity and enthusiasm to make a sweeping difference — literally.

Employees came up with the idea of using simple plastics such as PET, packaging stretch film and plastic bags as raw material for the broom bases that Clorox makes. The initiative has enjoyed widespread involve-ment from employees and their families as employees not only collect plastic waste at work but also bring in plastic waste from home.

The results have been so successful that the initiative is expanding plastic recycling beyond the walls of Clorox to include partnerships with customers, schools and nonprofit organizations.


Greater Good™

When Clorox acquired the Burt’s Bees® brand in 2007, we acquired not only a leading natural personal care brand, but also an exemplar company in social responsibility. The Burt’s Bees® team follows a business model dubbed The Greater Good™ that represents the highest ethical choice that can be made to maximize the overall well-being of people and the planet. The Greater Good™ adheres to a set of beliefs that helps guide the company and its actions, particularly as it relates to the environment. After all, the company was founded in 1984 on a foundation of earth-friendly natural personal care products. The business nurtures a cycle that is based on the belief that to take from nature, you must also protect and provide for nature. To this end, the business aspires to be “the greenest personal care company on earth” and is working toward a set of goals to achieve by 2020. Among these goals are a carbon-free footprint, utilization of 100 percent renewable energy, zero waste to landfills and Leadership in Energy and Environmental Design certification for all facilities. Already Burt’s Bees® has achieved zero waste to landfill at its manufacturing, distribution and office facilities, and operating effectively in a carbon-neutral manner by buying renewable energy certificates and carbon offsets to offset their GHG footprint.

The Burt’s Bees® business took employee involvement to a new level in 2009 with the launch of “Live the Greater Good,” a company-wide program that encourages employees to formally and continuously integrate environmental stewardship, social consciousness, natural wellness and world-class leadership into their personal and professional lives. As the Burt’s Bees® brand expands its products around the world, the team is also exporting its greater good philosophy and finding that it resonates with international employees and consumers as well. This positive reception is largely due to the degree of customization that is encouraged in each country. The Burt’s Bees® business introduces its greater good model and values in each country, and then its employees find ways to tailor it to their particular areas of interest and passions. In Australia, for example, educational programs and outreach efforts are largely focused on biodiversity, an area of great concern to Australian citizens. It is hard to think of a better example than the Burt’s Bees® brand of the way good business and the greater good can complement each other and, indeed, grow and prosper together.

The

PLANET


49 The Clorox Company | 2010 CSR Report

BeCommitted

Purpose Safeguard family well-being, every day


The Clorox Company Foundation has awarded more than $80 million in cash grants since 1980.

Foundation Supports Youth and Cultural ProgramsFounded in 1980, The Clorox Company Foundation is our formal philanthropic arm and has awarded cash grants totaling more than $80 million to nonprofit organizations, schools and colleges over the past three decades. The majority of these grants support innovative programs that serve youth, kindergarten through 12th grade education, and cultural and civic organizations. Much of the foundation’s work is centered in our corporate hometown of Oakland, Calif., but it also benefits local needs in other communities where our employees live and work.

Clorox also has a long history of donating Glad® trash bags, Clorox® bleach and other disinfecting products to the American Red Cross to assist with disaster relief.

After Hurricane Katrina hit New Orleans and the Gulf Coast, for example, Clorox donated more than $2 million in cash and product toward relief efforts. We were also the first to step up and sponsor Mardi Gras in New Orleans that year, donating more than 1.3 million Glad® trash bags to the department of sanitation for clean-up efforts. More recently, when southern Georgia was hit by severe flooding in 2009, Clorox sent more than two truckloads of bleach to assist with cleanup.

Charitable Contributions(in millions of dollars)

$8.8

$3.5$1.8

$13.2$14.1

$1.8

$7.8

$3.6

CAUSE MARKETING DONATIONS

FOUNDATION CASH GRANTS

CORPORATE PRODUCT DONATIONS2009 2010

0

3

6

9

12

15


PURPOSE

Employees Give Time and Money to Support Our CommunitiesAt Clorox, our work force of more than 8,300 employees shares a common trait: a commitment to give back to others through our time and talents. Visit a company facility anywhere in the world and you will find an example of this commitment.

Clorox employees build houses for Habitat for Humanity International, walk in fundraisers to support cancer research, provide legal expertise to victims of domestic violence and donate presents to impoverished families during the holidays. These examples are a small sample of the dozens of programs and opportunities that we support. In 2009 alone, Clorox people volunteered nearly 100,000 hours of their time to charitable organizations.

K-12 education is our primary corporate focus. More than 100 Clorox employees volunteer each year for Junior Achievement, an organization dedicated to

educating and inspiring young people about the business world. We support Junior Achievement with employees who teach classes and through grants made by The Clorox Company Foundation. Another example of Clorox employees’ passion for supporting education is the Marcus A. Foster Educational Institute auction that 100+ volunteers coordinate annually. Now in its 19th year, the event regularly raises more than $70,000 for scholarships.

GIFT Campaign Matches Employee ContributionsBeyond their time, Clorox employees also donate their money to nonprofit organizations, and we are proud to match their generosity. In the U.S. and Canada, our Getting Involved for Tomorrow (GIFT) campaign matches employee contributions up to $2,500 per employee to nonprofit organizations of their choosing. Including the company match, the 2010 GIFT campaign raised $3.5 million. In addition, our higher education gifts program matches up to an additional $5,000 per employee 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 benefiting from EERF assistance, Houston employees showed their gratitude by reaching a 97 percent participation level in the next GIFT campaign, knowing their help would be there for those next in need.

As part of our community outreach initiatives, employees spent a day planting trees in Oakland, Calif. From left to right: Herbert Lee, Bill Morrissey and Craig Wolfson.


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 ResponseFast 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.


PURPOSE

Clorox® Brand and the Children’s Health Fundwww.facebook.com/cloroxThe 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.comDedicated 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 Clubwww.greenworkscleaners.com/partnersThe 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™ Campaignwww.loveyourveggies.comThis 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/gladtogiveCookies 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 ASPCAwww.freshstep.com/aspcaThe 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™ Campaignwww.filterforgood.comThis 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™ Campaignwww.burtsbees.com/c/commitment/greatergood.htmlThe 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.

Brand Cause MarketingBrands Support Causes Consumers Care AboutMore 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:


PURPOSE

GRI Content IndexStrategy 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 [email protected]

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 that can significantly affect comparability from period to period and/or between organizations

1

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 organization’s performance

16

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided 17


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 for guiding the organization’s strategy on economic, environmental, and social topics

16

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

17

4.9 Procedures of the highest governance body for overseeing the organization’s identification and manage-ment of economic, environmental, and social performance

16

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 organization subscribes or endorses

1,15

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 DisclosuresAspect: 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 climate change

N/R

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 public benefit through commercial, in-kind, or pro bono engagement

50-53

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts N/R

Environmental DisclosuresAspect: 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 in energy requirements as a result of these initiatives

44,47


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 biodiversity value outside protected areas

46

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 affected by operations, by level of extinction risk

N/R

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 Basel Convention Annex I, II, III, and VII, and percentage of transported waste shipped internationally

N/R

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff

N/R

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 environmental laws and regulations

N/R

Aspect: Transport

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce

44

Aspect: Overall

EN30 Total environmental protection expenditures and investments by type N/R

Social Disclosure: Labor Practices and Decent WorkAspect: 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, by major operations

34

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 collective agreements

N/R

Aspect: Occupational Health and Safety

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs

N/R

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region

35

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious disease

33,36

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 employees and assist them in managing career endings

32-33

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 to gender, age group, minority group membership, and other indicators of diversity

30-31

LA14 Ratio of basic salary of men to women by employment category N/R

Social Disclosure: Human RightsAspect: Investment and Procurement Practices

Management Disclosures 8,17www.cloroxcsr.com/workplace-safety www.cloroxcsr.com/conductClorox suppliers: www.cloroxcsr.com/business-partners

HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening

N/R

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken

17

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

17

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 may be at significant risk, and actions taken to support these rights

31

Aspect: Child Labor

HR6 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures 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.

17

Aspect: Forced and Compulsory Labor

HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures 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.

17

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 of human rights that are relevant to operations

N/R

Aspect: Indigenous Rights

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken N/R

Social Disclosure: SocietyAspect: Community

Management Disclosures 10,50-52www.cloroxcsr.com/purpose

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

N/R

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 laws and regulations

N/R

Social Disclosure: Product ResponsibilityAspect: Customer Health and Safety

Management Disclosures 10,24-25www.cloroxcsr.com/products-safety

PR1 Lifecycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

24-25www.cloroxcsr.com/products-safety

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their lifecycle, by type of outcome

N/R

Aspect: Product and Service Labeling

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

25

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

N/R

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, including advertising, promotion, and sponsorship

20

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcome

N/R

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 provision and use of products and services

N/R

GRI Content Index



Listen WellPlease 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.

1221 Broadway Oakland, CA 94612 510-271-7000

www.CloroxCSR.com

2010 Clorox Corporate Responsibility Report

Documents

Transcript of 2010 Clorox Corporate Responsibility Report