Erby Foster Jr. Director of Diversity and Inclusion The Clorox Company

Erby Foster Jr.Director of Diversity and InclusionThe Clorox Company

Making everyday life better, every day.

Clorox Confidential

Erby L. Foster, Jr.Director, Diversity & Inclusion

The Clorox CompanyApril 23, 2009

A Word About Accountability


Clorox Confidential 4

AccountabilityAccountability

• Accountability is a concept in ethics with several meanings. It is often used synonymously with such concepts as responsibility, answerability, enforcement, blameworthiness, liability and other terms associated with the expectation of account-giving. As an aspect of governance, it has been central to discussions related to problems in both the public and private (corporation) worlds.

• Accountability is defined as "A is accountable to B when A is obliged to inform B about A’s (past or future) actions and decisions, to justify them, and to suffer punishment in the case of eventual misconduct".

• In leadership roles, accountability is the acknowledgment and assumption of responsibility for actions, products, decisions, and policies including the administration, governance and implementation within the scope of the role or employment position and encompassing the obligation to report, explain and be answerable for resulting consequences.



Diversity Leadership StatementDiversity Leadership Statement

“At Clorox, we view diversity as a business imperative, not just a Human Resources initiative.

We believe the most effective way to approach diversity is to focus our efforts in three areas: our employees, the suppliers we work with, and the consumers of our products. We are committed to each area, and will continue to link our diversity efforts in this way.

When we build the capability to effectively connect with people across a broad range of diverse backgrounds, then we can win in markets and our communities around the world.”

Don Knauss, Chairman & CEOChair, Diversity Advisory Board



Consumer InsightsConsumer Insights

America is no longer a mass market. • Minorities are a big group. They represent 33% of population• They are growing 6-15 times faster than general population• Disposable income growing 50-300% faster, creating a major

source of business growth and profitability

Source: San Francisco Chronicle, May 17, 2007 – U.S. Census Bureau

Asian5.0%

Black13.4%

Hispanic14.7%

White 66.9%

Annual Growth Rates of US Ethnic Populations 1990-2000

4.5% 4.5%

2.0%

0.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Com

poun

d An

nual

Gro

wth

Rate

Hispanic Asain Black White

298%

169%

222%

112%

0%

50%

100%

150%

200%

250%

300%

1990 - 2007

Buying Power Increase 1990-2007

Hispanic African American

Asian White



Corporate Strategy

Objectives

We make everyday life better, every dayMaximize economic profit across categories, customers and countries

Be best at building big-share brands in economically attractive midsized categories

Goals

Double economic profit by 2013

Strategies

• Grow net customer sales by 5-7% per year

• Grow EP an average of 12-15% per year

Be a high-performance organization of enthusiastic owners

Win with superior capabilities in Desire, Decide and Delight

Accelerate growth both in and beyond the core

Relentlessly drive out waste



People & Culture TeamVision and Purpose

People & Culture TeamVision and Purpose

The vision of the People and Culture Team (PCT) is to drive business success by bringing our #1 Corporate strategy to life globally:

•Be a high performance organization of enthusiastic owners

The purpose of the PCT is to be accountable for our global people strategies and processes including:

Values-based culture Engagement Total Rewards (compensation and benefits) Talent Management

human resource planning, capability development, leadership development, succession planning, recruiting

Diversity People policies

The vision of the People and Culture Team (PCT) is to drive business success by bringing our #1 Corporate strategy to life globally:

•Be a high performance organization of enthusiastic owners

The purpose of the PCT is to be accountable for our global people strategies and processes including:

Values-based culture Engagement Total Rewards (compensation and benefits) Talent Management

human resource planning, capability development, leadership development, succession planning, recruiting

Diversity People policies



People & Culture TeamExecutive Members

People & Culture TeamExecutive Members

• Senior Vice President – Human Resources (leader)• Chairman & Chief Executive Officer• EVP – Chief Operating Officer• EVP – International• EVP – Strategy & Growth• SVP – Chief Financial Officer• SVP – General Counsel• VP – GM, Cleaning Division• VP – GM, Specialty Division• VP – Chief Information Officer• VP – Controller• VP - Marketing• VP – Product Supply• VP – Research & Development• VP - Sales



Consumers People Suppliers

Diversity Business CaseDiversity Business Case

Diversity as a Business

Diversity is a business imperative, not just a HR initiative Diversity is a business imperative, not just a HR initiative



2004

Business Case for Diversity

Employee Resource Groups

Competitive Advantage for Talent

External Recognition

Bridge to Business

2009

Diversity JourneyDiversity Journey



Diversity ApproachDiversity Approach

External FocusPartnershipsNetworksHiring

Internal FocusERG’s

MentoringInclusion Training

Functional People StrategiesFunctional People Strategies

Diversity and

Inclusion

Culture of InclusionCulture of Inclusion


Clorox Confidential

Bridging Employees Passion to StrategyBridging Employees Passion to Strategy

Be a high-performance organization of enthusiastic owners ERGs provide development opportunities, share consumer insights, and

enhance engagement

Win with superior capabilities in Desire, Decide, & Delight A fully engaged diverse organization drives greater productivity,

effectiveness, and innovation

Accelerate growth both in and beyond the core Developing our brands with diverse consumers is one of our biggest

growth opportunities

Relentlessly drive out waste To be competitive in the marketplace, we must be able to attract and

retain diverse employees


Clorox Confidential

Why Diversity Programs FailWhy Diversity Programs Fail

Confusion between diversity and inclusion initiatives Diversity metrics center mostly on representation Inclusion metrics reflect organizational health & employee engagement

Isolated diversity function Siloed and disconnected from other areas of the business Neither accessed nor made accessible to senior management

Focusing just on compliance Delivery of training and percentage of employees who have completed Lack evidence in decision-making, promotion criteria, strategic direction, and professional development

Blurred vision Trainings, or cultural awareness events, or activities that look like diversity work Companies are often reluctant to measure and assess where they are in the diversity process Asking for feedback raises expectations and ignoring these answers make the company vulnerable

Source: Black EOE Journal


Clorox Confidential

Commitment & InvolvementCommitment & Involvement

What’s Your Diversity EQ?• In order to achieve diversity and inclusion, the journey must be Visible, Inclusive, and Integrated.*

• Is the work we’re doing Visible (can be seen from every angle and view)?

• Is it Inclusive (all voices in the room and welcoming to everyone)?

• Is it Integrated (into everything we do and all that we are)?

Roles & Responsibilities**• Executive Champion ~ Drive partnership throughout Clorox• Relationship Partner ~ Align partnership priorities with business strategy• ERG ~ Drive advocacy to attract, recruit, retain, & promote diverse employees• Function ~ Managers demonstrate personal commitment and active involvement

Function Mix (10 Bowling Pins) = Key To Success**• 1 ~ Vice President serve as Executive Champion• 2 ~ Directors in a team captain/board leadership role• 3 ~ Managers attend diversity events as active members• 4 ~ Staff get involved as volunteers for chapter activities• 10 ~ Total members per organization

* Source: 7 Keys 2 Success: Unlocking the Passion for Diversity ~ by Rosalyn Taylor O’Neale** We should not target employees for participation based on Gender, Ethnicity, Race, Sexual Orientation or other Self-Identification



Town Hall MeetingTown Hall Meeting



Open HouseOpen House



Top Chefs at Clorox Pride MonthTop Chefs at Clorox Pride Month



Hispanic Employees in the MediaHispanic Employees in the Media



Path Forward:Culture of InclusionPath Forward:Culture of Inclusion

Typical Behaviors and Beliefs along the Diversity Journey:

1. Pre-Awareness: Conversations often consider "diversity and excellence" as "either/or" propositions

2. Diversity Awareness: Diversity issues and diversity-related services are often delegated to underrepresented minorities and to women as "their" task

3. Transition State: People struggle with how to be inclusive and at the same time how to value differences

4. Intentional Inclusion: Discussions consciously include how diverse staff may be affected by any decision, program, or policy being considered

5. Culture of Inclusion: Inclusiveness and diversity are assumed to be part of the way Clorox does business



Multicultural WorkforceMulticultural Workforce

Erby Foster Jr. Director of Diversity and Inclusion The Clorox Company

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