2002 Sustainability Report
Executive Summary

Linking Opportunity with Responsibility

Visit http://www.pg.com/sr for the full report.

P&G 2002 Sustainability Report
Executive Summary

A. G. Lafley’s Statement

There are two important things to know about Procter & Gamble.
First, the consumer is boss. Our business is based on this simple
idea. When we deliver to consumers the benefits we’ve promised,
when we provide a delightful and memorable usage experience,
when we make everyday life a little bit better, a little easier, a little
bit healthier and safer, then we begin to earn the trust on which
great brands are built. Sustaining that trust requires an evengreater commitment because improving lives is not a one-time
event nor is it a one-dimensional challenge; we must provide
products and services that meet the needs of consumers aroundthe world while always fulfilling P&G’s responsibilities as acorporate citizen.
Second, P&G is committed to staying in the lead. Our people areleaders. Our brands are leaders. We have a culture that embraces
leadership – and that leadership culture drives not only businessresults, but also the way we think about social responsibility andsustainability. We look for opportunities where others see only
responsibility. We think and plan for the long term.
Our respect for consumers and our commitment to leadership arereflected in our financial performance. Through clear strategic
choices, operational excellence, and financial discipline, we are
returning to the consistent, reliable earnings and cash growth thatshareholders expect from our Company. These results are getting
P&G back in the lead and are also allowing us to move forward on
longer-term initiatives that we believe may help address crucial
global problems such as waterborne disease, sanitation, cleanwater, women’s health, dental hygiene, and childhood nutrition.
Historically, P&G has marketed its products to more affluent
consumers, predominantly in developed markets. Many of these
longer-term efforts are focused on consumers in the developingworld – consumers with the same expectations for quality of life
but who have far less purchasing power. This presents newchallenges. We must often rethink fundamental assumptions
about how we create, manufacture, distribute, and market new
products. We must find creative new ways to help improve thelives of consumers at many different income levels, in many diverseand different parts of the world. We are doing this. In several
developing countries, we are experimenting to find the best ways
to make beneficial products, such as NutriStar, available to families
no matter how challenging their economic circumstances may be.
Sustainability challenges are not limited to the developing world, ofcourse. We are also focused on using the same kind of thinking to
improve lives and build P&G’s business in developed markets. One
example is our Actonel prescription drug for the treatment andprevention of postmenopausal osteoporosis, which is already a$400 million brand – and growing. Another example is the use of
cause-related marketing to build sales of established brands indeveloped countries, while also generating significant contributions
to help address problems such as tuberculosis and children’s
education in developing countries.
My key point is that we must take seriously our responsibility tohelp raise and sustain quality of life everywhere P&G does
business. We recognize that fulfilling this responsibility is, quite
simply, fulfilling the purpose to which generations of P&G people
have aspired. It is a responsibility we embrace with the sameinnovative spirit, operating discipline, and dogged determination tolead that have characterized this Company for 165 years. We will
not let up.

A. G. Lafley
Chairman of the Board,
President and Chief Executive

P&G 2002 Sustainability Report
Executive Summary

VisionP&G continues to embrace Sustainable Development as a businessstrategy, as well as a corporate responsibility. We believe we cangrow our business and deliver ever-greater shareholder andstakeholder value by bringing innovations to the marketplace that
address the frustrations and aspirations of consumers at all
economic levels. Strategically, this has led us to focus on water,
health, and hygiene as the areas that most relate to our brands
and core competencies. As we enter our fourth year of pursuingthis strategy, we are now moving from theory to reality, fromconcepts to the marketplace. And our belief is stronger than everthat we can make breakthrough contributions in children’s
nutrition and development, safe drinking water, and the reductionof waterborne disease.
These are areas of global importance. Around the world, children
are suffering from micronutrient deficiencies of iron, vitamin A, andiodine in their diets. The long-term impact is striking. A quarter
million children go blind each year. Workforce IQs are often 10 to
15 points lower in areas where these dietary deficiencies arepresent. Rates of stillbirths and impaired learning and development
are exponentially higher than in other parts of the world.
Last fall, P&G entered the Venezuelan market with NutriStar, afortified drink mix that has been proven through clinical studies tocorrect micronutrient deficiency. While our market experience is still
limited and we have much yet to learn, we are encouraged byconsumers’ response to the product and by our results to date invalidating our sustainable development business model. The
coming year will see the launch of other initiatives.

• We worked with the American Academy of Pediatrics to educate
parents on the need for childhood immunizations.
• We formed an alliance with TechnoServe, a non-governmentalorganization, to help make coffee growing profitable for as many
people as possible.
• We sponsored dental hygiene awareness campaigns with theministries of health in Poland and China.
Partnerships like these are becoming an increasingly important way
P&G does business. In fact, our Chief Executive, A.G. Lafley, hassaid he wants P&G to be a magnet for best-in-class partners. Our
goal is to become the best company in the world at spotting,developing, and leveraging partnerships in every part of thebusiness. This philosophy is becoming a core competency, and it
will make P&G’s Sustainable Development efforts – as well as otherareas of the Company – even more effective and far-reaching inyears ahead.
Our success is being recognized. In 2002, P&G was named theNo. 1 consumer non-durables company in the Dow Jones
Sustainability Group Index for the third straight year. We earned aTop-5 ranking in Business Ethics magazine’s 100 Best Corporate
Citizens for the third year in a row. We ranked third on Fortune
magazine’s list of most socially responsible companies. This
recognition is greatly appreciated affirmation that we are fulfilling
our purpose as a Company – making everyday life better for
consumers around the world.
We are pleased to share with you our progress.

In all our work to date, we have come to appreciate more thanever that addressing issues of water, health, and hygiene is not
something we can do alone. Partnerships have been and remain
integral to our Sustainable Development efforts.
George D. Carpenter• We partnered with the U.S. Centers for Disease Control toconduct clinical studies on waterborne disease in Guatemala.
• We joined forces with UNICEF to launch a marketing initiativethat is funding tuberculosis vaccinations for 8 million children inseveral developing countries.

Director
Corporate Sustainable Development

Visit http://www.pg.com/sr for the full report.

P&G 2002 Sustainability Report
Executive Summary

P&G Profile
P&G is celebrating 165 years of providing trusted, high-quality
brands that make every day better for the world’s consumers. The
Company markets nearly 300 brands – including Pampers, Tide,
Ariel, Always, Whisper, Pantene, Bounty, Pringles, Folgers,
Charmin, Downy, Lenor, Iams, Crest, Actonel, Olay, and Clairol –in more than 160 countries around the world.
P&G’s worldwide headquarters is located in Cincinnati, Ohio, USA.
The Company has on-the-ground operations in almost 80
countries worldwide and employs nearly 102,000 people.
P&G is a publicly owned company. Its stock is listed and traded on
the following exchanges: New York, Cincinnati, Amsterdam, Paris,
Basle, Geneva, Lausanne, Zurich, Frankfurt, Brussels, and Tokyo.
As of July 26, 2002, there were 1,004,000 common stock
shareholders, including shareholders of record, participants in the
Shareholder Investment Program, participants in P&G stock
ownership plans, and beneficial owners with accounts at banks
and brokerage firms.
This is the fourth Sustainability Report for P&G’s worldwide
operations. Data in this report covers the period from July 1, 2001,
through June 30, 2002. Financial information is given in U.S. dollars.
As part of P&G’s initiative to optimize resources to fit a growing
global business and to accelerate innovation and growth, theCompany operates its business through Global Business Units (GBUs).
• Baby, Feminine, & Family Care
• Fabric & Home Care
• Beauty Care
• Health Care
• Food & Beverage

Key Brands
Global Business Unit

Key Brands

Baby, Feminine, & Family Care
Baby Care
Pampers, Luvs, Dodot, Prima
Family Care
Charmin, Bounty, Puffs, Tempo, Codi
Feminine Care
Always, Whisper, Tampax, Lines Feminine Care,
Linidor, Evax, Ausonia, Orkid
Fabric & Home Care Tide, Ariel, Downy, Lenor, Gain, Cascade, Ace
Laundry, Cheer, Bold, Swiffer, Bounce, Dash,
Dawn, Fairy Dish, Joy, Febreze, Ace Bleach, Era,
Bonux, Dreft, Daz, Vizir, Salvo, Mr. Proper,
Mr. Clean, Flash, Fairy Laundry, Viakal, Dryel,
Alomatik, Ivory Dish, Maestro Limpio, Rindex
Beauty Care
Pantene, Olay, Head & Shoulders, Cover Girl,
Clairol Herbal Essences, Max Factor Cosmetics,
Hugo Boss, Secret, SK-II Skin Care, Zest,
Safeguard, Rejoice, Vidal Sassoon, Clairol
Nice ’n Easy, Old Spice Deodorant, Pert,
Ivory Personal Care, Sure, Camay, Laura
Biagiotti, SK-II Cosmetics, Old Spice Fragrance,
Physique, Noxzema, Giorgio, Muse
Health CareIams, Eukanuba, Crest, Asacol, Actonel,Vicks NyQuil, Metamucil, Vicks VapoRub,
Fixodent, Scope, Pepto-Bismol, Didronel,Vicks/Wick, Macrobid, PUR, Vicks DayQuil,
ThermaCare, Vicks 44, Kukident, Cacit,
Vicks Sinex, Dantrium
Food & Beverage
Folgers, Pringles, Sunny Delight, Millstone,
Punica, Torengos

Building for the Future
William Procter andJames Gamble, Founders,
Candle & Soap Business

1837

1840

$1 Million
Net Sales

1850

1860

Regional
U.S. Markets

1870

P&G 2002 Sustainability Report
Executive Summary

Key Indicators
Key Sustainability Focus Areas
At P&G, we proactively seek to bring together innovative ideas andresources to create new products and services that improve thequality of people’s daily lives. We focus in the areas of:• Water• Health and Hygiene
Our actions are not just profit-driven but also progress-driven,to ensure a better quality of life for everyone, now and forgenerations to come. P&G is particularly well positioned to do
this because we are in touch daily with the needs of theworld’s consumers.

Major Opportunities and Impacts Associatedwith Products and Services
Environmental Protection• Water• Resource Use• Waste Reduction
Social Responsibility• Health• Hygiene• Education
Economic Development• Shareholder Value• Employment• Taxes, Fees, and Contributions

Manufacturing Resource & Waste Summary by Global Business Unit (GBU)
TotalsAll units are in thousands ofmetric tons unless otherwise noted.†

Production
Product Shipped
Raw Materials from Recycled Sources
Waste
Generated Waste
Percent Recycled / Reused Waste
Disposed Waste
Solid Waste
Non-Hazardous
Hazardous
Effluents (Excluding Water)
Air Emissions**
Other
Energy Consumption (105 GJ)
Greenhouse Gas Emissions**
Water Consumption (million cubic meters)
SARA Releases (metric tons)***2002 Global Business Unit Detail*

2002

2001

2000

BFFC

FHC

BC

HC

FB

16,151
208

15,808208

13,936
476

3,652
208

8,426
0

984
0

1,098
0

1,992
0

798
54%

910
51%

879
55%

504
55%

121
57%

59
46%

33
51%

81
50%

304
19
23
20

376
13
36
15

317
12
39
19

196
8.7
7.9
13.3

37
4.7
6.5
3.4

23
3.8
3.8
0.6

14
0.7
0.8
0.4

33
0.8
4.2
2.1

989
3,309
85
1,274

1,068
3,210
88
1,722

1,080
2,983
87
1,858

614
2,365
56
34

195
419
13
831

44
88
4
346

41
95
2
0

94
342
10
63

† 1 metric ton = 1,000 kg = 2,205 lbs.
* BFFC = Baby, Feminine, & Family Care; FHC = Fabric & Home Care; BC = Beauty Care; HC = Health Care; FB = Food & Beverage** Air emissions include particulates, SO2, NOx, CO, and VOC whereas greenhouse gas emissions include CO2 from fuel combustion sources.
*** Releases defined in the U.S. Superfund Amendments and Reauthorization Act by the U.S. Environmental Protection Agency.

Incorporated
Company
P&G Brand
Advertising

1880

ProfitSharing

P&G Code ofRegulations

Beginning of P&G
Research & Development

1890

Shortening &Oils Business

1900

1910

CanadaMarketP&G 2002 Sustainability Report
Executive Summary

Financial Highlights
Amounts in millions
except per-share amounts

Net Sales
Marketing, Research, &Administrative Expenses
Income Taxes
Net Earnings
Basic Net Earnings
Per Common ShareTotal Assets
Long-Term Debt
Shareholders’ Equity

2002$40,238

2001$39,244

2000$39,951

12,571
2,031
4,352

12,406
1,694
2,922

12,483
1,994
3,542

Diversity Data – Global Enrollment
P&G continues to focus on diversity as a global strategy andexpects its work force to become increasingly more diverse. Global
data on enrollment by gender is shown in the following table:
2002
34.6
41.6

Global Enrollment % Female

3.26
40,776
11,201
13,706

2.15
34,387
9,792
12,0102.61
34,366
9,012
12,287

Philanthropic Contributions
P&G and its employees have a longstanding commitment tobeing good citizens and neighbors in all the places where we dobusiness around the world. We believe we have a responsibility
to society to use our resources – money, people, and energy –wisely. We show our financial commitment through support fora wide range of educational, health, social service, cultural, civic,
and environmental organizations. Worldwide, P&G has acorporate contributions system that coordinates contributions tolocal communities.

Management
All Other Employees1

2001
34.5
38.0

1 The category of “All Other Employees” continues to be an evolving global database as
more of P&G’s plants are included.

The percentages of minority and female employees in the UnitedStates are shown in the following table:% Minorities
Management
All Other Employees2% FemaleManagement
All Other Employees2

2002

2001

2000

16.1
20.3

15.8
18.1

15.9
18.8

34.4
38.0

34.1
38.8

33.7
39.7

2 Administrative, Technical, and Plant Technicians

Note: These numbers include the recent Clairol acquisition.

Occupational Health & Safety Data
Past three years’ global data on two key metrics for worker healthand safety:

Contributions made by The P&G Fund and Corporate
Contributions in North America for the past three years areprovided in the following table:

Total Incident Rate
Total

2002
$29,587,237

2001$27,503,686

2000$28,292,768

Contributions made by The P&G Fund and Corporate
Contributions globally totaled $77,746,930 in the fiscal year
ending 2002.

Injury and illness per 100 employees

SafetyPhilippines
Oral Care
Program and UK
Synthetic
Started Markets
Detergents Business

1930

2000
0.79

2001
0.24

2000
0.35

Lost and restricted workday cases per 100 employees

1940

2002
0.27

Total

Summary of Violations and Interventions
Past three years’ global data on environmental, transportation, andworker health and safety violations and interventions:

Number
Fines

1920

2001
0.69

Total Lost Workday Case Rate

P&G’s contributions and community activities are an important partof achieving the Company’s purpose of improving the lives of theworld’s consumers. During the past year, P&G through The P&G
Fund has provided support to more than 1,500 organizations.

Beginning of
P&G Market
Research

2002
0.67

Total

2002
58
$39,026

Tide
Introduced
Overseas
Division

1950$1 Billion
Net Sales

2001
73$77,070

2000
48$13,400

Disposable
First Fluoride Diapers
Toothpaste
Business

1960

P&G 2002 Sustainability Report
Executive Summary

Sustainability in Action
Give Kids the World –Making Dreams Come True
Imagine a place where all your meals are served in a gingerbreadhouse, where a rabbit named Clayton is mayor, where you eat ice
cream anytime you want, and where Christmas is celebrated
every Thursday.
Sounds too good to be true? For children with life-threatening
illnesses, Give Kids the World is just this place.
A 51-acre non-profit resort near Florida’s Walt Disney World,
Give Kids the World provides dream vacations for terminally ill
children and their families. Families receive private
accommodations in the “village” and receive the “royaltreatment,” which includes the thrill of visiting Walt Disney World,
Universal Studios, and Sea World.
Since 1986, Give Kids the World has made more than 50,000
wishes come true. P&G’s corporate program has donated products
to the village, in addition to $1 million in proceeds from productpurchases and retailers’ matching funds. Tide has raised $1 million
through its NASCAR race car sponsorship. These fund-raisingefforts allow the village to operate year-round to host families freeof charge.
Give Kids the World winner Vanessa
Alvarez poses with Tide’s Winston Cup
driver Ricky Craven in front of the Tide
racing car.

Safeguard Partners With the CDC
to Fight Disease In Haiti and Pakistan
Improving the health of people in developing countries has long
been recognized as an important component of sustainable
development. Better hygiene contributes to better growth, better
learning, and ultimately, to better economic development.
Safeguard antibacterial soap partnered with the U.S. Centers for
Disease Control & Prevention in Pakistan and Haiti to clinically
document the benefits of good hygiene in helping to reduce theincidence and/or severity of several diseases, such as impetigo andfilariasis, common in hot, humid environments. Results of thesestudies have shown the health benefits of daily bathing with anantibacterial soap such as Safeguard.

Give Kids a Fresh and Caring Start –P&G and the U.S. Fund for UNICEF
P&G and the U.S. Fund for UNICEF are making a difference in the
lives of children around the world. Through the Give Kids a Fresh
and Caring Start initiative, Americans are invited to purchase any
Dawn or Downy product during September and October, with aportion of sales – up to $300,000 – benefiting children aroundthe world.
P&G will also work with the U.S. Fund for UNICEF through a$200,000 grant to support Trick-or-Treat for UNICEF’s educational
curriculum, which encourages young Americans to learn about
concepts that affect children around the world. In all, P&G’s
participation in this year’s Trick-or-Treat for UNICEF campaign
represents a significant increase from the previous two years,
helping UNICEF and its partner organizations make significant
strides toward improving the lives of children around the world
through health, education, nutrition, protection, and emergency
relief programs.
In 2001, Dawn’s Clean Up for Kids campaign donated $550,000
to the U.S. Fund for UNICEF, helping to immunize 1.1 million
children against polio.

World Environment
Center Award
Affirmative
ActionEnvironmental
Audit Program1970

Toll-Free
Consumer
Hotline$10 Billion
Net Sales

1980

Feminine
Protection
BusinessStatementof Purpose

1990

1st Annual Global
Environment
ReportOpportunity
2000 Award

FutureShares Clairol
1998– Acquisition
2001 2001

2000

P&G 2002 Sustainability Report
Executive Summary

Sustainable development is a very simple idea.
It is about ensuring a better quality of life foreveryone, now and for generations to come.
P&G’s Statement of Purpose
We will provide products and services of superior quality
and value that improve the lives of the world’s consumers.
ValuesAs a result, consumers will reward us with leadershipsales, profit and value creation, allowing our people,
our shareholders, and the communities inwhich we live and work to prosper.

PeopleThis report was prepared using the Global Reporting Initiative’s(GRI) June 2000 Sustainability Reporting Guidelines. The missionof the GRI is to promote international harmonization in thereporting of relevant and credible corporate economic,
environmental, and social performance information to enhance
responsible decision making. The GRI pursues this mission througha multistakeholder process of open dialogue and collaboration in
the design and implementation of widely applicable sustainability
reporting guidelines. The GRI has not verified the contents of thisreport, nor does it take a position on the reliability of information
reported herein.

on theWeb

For further information about the GRI, please visit
www.globalreporting.org

This is the Executive Summary of the fourth Sustainability Reportfor P&G’s worldwide operations. Data in the report covers theperiod from July 1, 2001, through June 30, 2002.

on theWeb

The full report is available on P&G’s Web site:
http://www.pg.com/sr

Please visit P&G’s corporate Web site for the latest P&G news andshareholder and career information: http://www.pg.com

Note: Years listed in this Report‘s data charts signify the fiscal year ending June 30.
© 2002 The Procter & Gamble Company. All Rights Reserved.
References to trademarked products in this report are to trademarks owned by andregistered to The Procter & Gamble Company.

0013-6466

Leadership
Integrity
Trust
Passion for Winning
Ownership

Principles
We Show Respect for All Individuals
The Interests of the Company and the Individual are Inseparable
We are Strategically Focused in Our Work
Innovation is the Cornerstone of Our Success
We are Externally Focused
We Value Personal Mastery
We Seek to be the Best
Mutual Interdependency is a Way of Life

Global Editor: Janice Tarter, USACore Report Team: Javier Arevalo, Venezuela; Bea Buyle, Belgium; Paulvan der Mensbrugghe, Belgium; Charles Peng, Japan; Win Sakdinan,
Canada; Chris Smith, UK; Robin Tollett, USA; Pam Wright, USA;
Keith Zook, USA
Consultant: Zheng “Clara” Tao, Kenan Flagler Business School, USA
Copy Editor: Jan Sherbin, Cincinnati, OH, USA
Design: Andy Ruttle, Ruttle Design Group, Inc., Cincinnati, OH, USA
The report team thanks all the individuals throughout the world
who contributed information, stories, and data to this report.
A special thanks goes to Keith Zook for his valuable time, perspective,
and advice.
Contact
Janice F. Tarter
Corporate Sustainable Development
1 Procter & Gamble Plaza
Cincinnati, OH 45202 USA
E-mail sustainrep.im@pg.com

This report was printed
on recycled paper.