A Culture of Inclusion
We believe our values-based culture connects to our purpose and helps our people be the best versions of themselves, professionally and personally. This means building a workplace where every person can feel respected, valued and fully able to participate in our Clorox community. It means leading by example, at every level within the company, and having the courage and focus to continually challenge ourselves to do better.
A Leadership Commitment to Our Employees
We aim to be a leader in inclusion and diversity because we believe diverse backgrounds and perspectives create stronger teams, unlock more innovation and – ultimately – contribute to greater societal impact.
To drive accountability and action, our I&D governance structure ensures engagement at the highest levels of the organization. Our I&D Executive Council is chaired by our Chief Operating Officer and I&D metrics are included in the corporate scorecard regularly reviewed by the board, reflecting our view that advancing I&D is essential to our long-term business success. Our I&D strategy development and execution is led by our VP of Inclusion & Diversity and supported by a dedicated team of senior-level employees and task forces across different functions. Collectively, they bring to life the I&D initiatives that help us achieve our ambition for this critical priority.
While we’ve taken initiatives to advance I&D throughout the years – including increasing our disclosures of ethnic minority and female representation in our workforce and leadership – we realize we can and must do more to fight racism and inequality within our own organization. That’s why we’ve signed the CEO Action for Diversity & Inclusion pledge outlining actions needed to cultivate a trusting environment where all ideas are welcomed. In fiscal year 2021, we also joined the Business Coalition for the Equality Act as part of our long-standing engagement with the LGBTQ+ community and our partnership with the Human Rights Campaign, the largest LGBTQ+ advocacy group in the U.S.
We’ve also committed to I&D goals and targets as part of our IGNITE corporate strategy, focusing on the following areas where we can have the greatest impact:
- Gender and ethnic pay equity – We continue to conduct annual pay equity analyses and improve our processes to ensure that any pay differences among our teammates are based on factors that should matter. For our 2020 and 2021 analysis, in the spirit of continuous improvement and to stay aligned with best practices, we involved a labor economist to help us. We reviewed every nonproduction teammate’s pay for potential discrepancies and made appropriate salary adjustments.
- Gender and ethnic minority representation – We continue to make progress toward having more diverse representation on our board, among executive leadership and within our overall workforce. Within our board of directors, 27% of our 11 directors are people of color (vs. 18% Fortune 500 average) and 36% are women. Fourteen percent of our 14 Executive Committee members are people of color and 50% are women. As of June 30, 2021, people of color represent 38% of our nonproduction employees and 31% of our nonproduction managers in the U.S. Women represent 52% of our nonproduction employees and 46% of our nonproduction managers globally. To develop a more relevant and actionable perspective of our gender and ethnic minority representation, we are now publicly disclosing global workforce representation based on Clorox’s job categorization in our integrated annual report as well as providing EEO-1 data for our fiscal and calendar years (see Disclosures section below).
- Inclusion index*– We want our employees to feel included and supported so that they may thrive professionally. That is why we measure the percentage of employees who feel a sense of inclusion at work, with the goal of parity across the total company, women, and people of color. Building on our FY20 baseline, in FY21, our survey results were: Women – 80% (unchanged); People of Color –76% (+1%); Total Clorox –79% (+1%).
* A composite score for a set of survey questions we ask our employees, benchmarked against industry and/or other norms
We believe transparency drives accountability and accelerates progress on our ambition to create a more sustainable and inclusive world.
- FY21 EEO-1 data: EEO-1 data for our most recent fiscal year
- CY21 EEO-1 report: EEO-1 information submitted to the EEOC
- Integrated annual report: Includes progress against our I&D goals and other I&D priorities
Educating Employees Through Experiential Training
We continue to expand experiential initiatives such as unconscious bias education and tools to empower employees to be the best versions of themselves and toward others. Our Breaking Bias programming – based on neuroscience – aims to lessen the influence of bias in order to consider diverse perspectives and make better people- and business-related decisions. And our unconscious bias education strives to help employees better recognize, acknowledge and minimize any potential blind spots we each may have.
During our Cups of Understanding events, more than 1,500 employees of different races, ethnicities, genders, gender identities/expressions, ages and religions, from the C-suite to recent college graduates, participated in conversations to engage in open dialogue about inclusion and diversity.
We also hosted the CEO Action “Check Your Blind Spots” tour bus at our Pleasanton, California, campus where employees were invited to experience diverse perspectives through virtual reality.
Connecting Through Employee Resource Groups
Our employee resource groups are designed to help drive inclusion and diversity within Clorox. With more than 3,000 members, ERGs aim to foster greater understanding of different perspectives and backgrounds through cultural events and panel discussions. These groups are an important forum for career mentorship and development and support to our local communities through regular volunteer activities. Some of our ERGs also help drive the business by serving as vital internal focus groups, inspiring product innovations, accelerating product placement plans and deepening our understanding of the multicultural consumer. Most of our ERGs began more than a decade ago, but new groups have formed over the years based on employee and business demand. In FY21, we established functional task forces to identify opportunities and executive initiatives that further drive inclusion and diversity into our company.
- BELIEVE (Black ERG)
- CelebrAsia (Asian ERG)
- diverseABILITY (disabilities ERG)
- HOLA (Hispanic/Latino ERG)
- Interfaith Group
- MENA (Middle East and North Africa ERG)
- Mental Health Champions ERG
- Multicultural ERG
- Parents ERG
- Pride (LGBTQ ERG)
- SHOW (women ERG)
- VetNet (veterans ERG)
- NextGen (millennial & Gen Z ERG)
- ORBIT (virtual workforce ERG)
Supporting Equality and Racial Justice Within Our Communities
Clorox has no tolerance for discrimination of any kind. We recognize that certain communities (including Black, Asian and others) still face a reality where systemic barriers prevent people from realizing their full potential. As a people-centered company committed to our values, we will fight for a fair and just world, one where there’s no question that Black Lives Matter and that everyone deserves to be treated fairly. We stand beside all of our communities to confront the systemic racial injustices that have plagued our nation for generations.
In addition to driving inclusion and diversity within our own organization, we advocate for a more respectful and inclusive world beyond our walls. This includes supporting Black businesses in our communities, engaging Black youth who represent our future, and working to accelerate access to criminal justice reform. It includes consciously working to diversify experience, gender and thought within our supplier base through our supplier diversity program and report progress in our integrated annual report. This program identifies, advocates and tracks our spending with minority, women, service-disabled and veteran-owned business enterprises, as well as gay, lesbian, bisexual and transgender business owners in the U.S. and Puerto Rico. Clorox is an active member of such organizations as the National Minority Supplier Development Council and Women’s Business Enterprise National Council, and we are focused on continuing to advocate for supplier diversity in our industry. In fiscal year 2021, we spent $151 million with diverse suppliers, an increase of 3% from the previous year.
Our commitment to diversity is also reflected in how we engage with our business partners, as guided by our Business Partner Code of Conduct. In our Code, we encourage all those who do business with us – including direct suppliers of goods, service providers, consultants, distributors, licensees, joint ventures, contractors and temporary workers – to demonstrate a commitment to building and maintaining a diverse workforce.
We are proud that our strategic commitment to an inclusive and diverse workplace has been recognized by a number of external organizations. Still, there’s more to do.