Proctor and Gamble 2008 Annual Report Download - page 38

36 TheProcter&GambleCompany

AtTheProcter&GambleCompany,wetakegreatprideinourlong
historyofdoingwhat’sright.Ifyouanalyzewhat’smadeourcompany
successfulovertheyears,youmayfocusonourbrands,ourmarketing
strategies,ourorganizationdesignandourabilitytoinnovate.Butif
youreallywanttogetatwhatdrivesourcompany’ssuccess,theplace
tolookisourpeople.OurpeoplearedeeplycommittedtoourPurpose,
ValuesandPrinciples.Itisthiscommitmenttodoingwhat’srightthat
unitesus.
Thiscommitmenttodoingwhat’srightisembodiedinournancial
reporting.High-qualitynancialreportingisourresponsibility—onewe
executewithintegrity,andwithinboththeletterandspiritofthelaw.
High-qualitynancialreportingischaracterizedbyaccuracy,objectivity
andtransparency.Managementisresponsibleformaintainingan
effectivesystemofinternalcontrolsovernancialreportingtodeliver
thosecharacteristicsinallmaterialrespects.TheBoardofDirectors,
throughitsAuditCommittee,providesoversight.Wehaveengaged
Deloitte&ToucheLLPtoauditourConsolidatedFinancialStatements,
onwhichtheyhaveissuedanunqualiedopinion.
Ourcommitmenttoprovidingtimely,accurateandunderstandable
informationtoinvestorsencompasses:
Communicating expectations to employees. Everyemployee—
fromseniormanagementondown—isrequiredtobetrainedonthe
Company’sWorldwide Business Conduct Manual,whichsetsforth
theCompany’scommitmenttoconductitsbusinessaffairswithhigh
ethicalstandards.Everyemployeeisheldpersonallyaccountablefor
complianceandisprovidedseveralmeansofreportinganyconcerns
aboutviolationsoftheWorldwide Business Conduct Manual,which
isavailableonourwebsiteatwww.pg.com.
Maintaining a strong internal control environment. Oursystemof
internalcontrolsincludeswrittenpoliciesandprocedures,segregation
ofdutiesandthecarefulselectionanddevelopmentofemployees.The
systemisdesignedtoprovidereasonableassurancethattransactions
areexecutedasauthorizedandappropriatelyrecorded,thatassets
aresafeguardedandthataccountingrecordsaresufcientlyreliable
topermitthepreparationofnancialstatementsconforminginall
materialrespectswithaccountingprinciplesgenerallyacceptedinthe
UnitedStatesofAmerica.Wemonitortheseinternalcontrolsthrough
controlself-assessmentsconductedbybusinessunitmanagement.
Inadditiontoperformingnancialandcomplianceauditsaroundthe
world,includingunannouncedaudits,ourGlobalInternalAudit
organizationprovidestrainingandcontinuouslyimprovesinternal
controlprocesses.Appropriateactionsaretakenbymanagementto
correctanyidentiedcontroldeciencies.
Executing nancial stewardship. Wemaintainspecicprograms
andactivitiestoensurethatemployeesunderstandtheirduciary
responsibilitiestoshareholders.Thisongoingeffortencompasses
nancialdisciplineinstrategicanddailybusinessdecisionsandbrings
particularfocustomaintainingaccuratenancialreportingand
effectivecontrolsthroughprocessimprovement,skilldevelopment
andoversight.
Exerting rigorous oversight of the business.Wecontinuouslyreview
businessresultsandstrategicchoices.OurGlobalLeadershipCouncil
isactivelyinvolved—fromunderstandingstrategiestoreviewingkey
initiatives,nancialperformanceandcontrolassessments.Theintent
istoensureweremainobjective,identifypotentialissues,continuously
challengeeachotherandensurerecognitionandrewardsareappro-
priatelyalignedwithresults.
Engaging our Disclosure Committee. Wemaintaindisclosurecontrols
andproceduresdesignedtoensurethatinformationrequiredtobe
disclosedisrecorded,processed,summarizedandreportedtimelyand
accurately.OurDisclosureCommitteeisagroupofsenior-levelexecu-
tivesresponsibleforevaluatingdisclosureimplicationsofsignicant
businessactivitiesandevents.TheCommitteereportsitsndingsto
theCEOandCFO,providinganeffectiveprocesstoevaluateour
externaldisclosureobligations.
Encouraging strong and effective corporate governance from our
Board of Directors. Wehaveanactive,capableanddiligentBoard
thatmeetstherequiredstandardsforindependence,andwewelcome
theBoard’soversight.OurAuditCommitteecomprisesindependent
directorswithsignicantnancialknowledgeandexperience.We
reviewsignicantaccountingpolicies,nancialreportingandinternal
controlmatterswiththemandencouragetheirindependentdiscussions
withexternalauditors.Ourcorporategovernanceguidelines,aswell
asthecharteroftheAuditCommitteeandcertainothercommittees
ofourBoard,areavailableonourwebsiteatwww.pg.com.
P&Ghasastronghistoryofdoingwhat’sright.Ouremployeesembrace
ourPurpose,ValuesandPrinciples.Wetakeresponsibilityforthequality
andaccuracyofournancialreporting.Wepresentthisinformation
proudly,withtheexpectationthatthosewhouseitwillunderstand
ourcompany,recognizeourcommitmenttoperformancewithintegrity
andshareourcondenceinP&G’sfuture.
 
ChairmanoftheBoard ViceChairmanand
andChiefExecutiveOfcer ChiefFinancialOfcer