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## Corporate Governance and Management’s Responsibility 

Procter & Gamble is committed to doing what’s right. Our actions – the actions of all employees – are governed by our Purpose, Values and Principles. These core values set a tone of integrity for the entire Company – one that is reinforced consistently at all levels, in all coun- tries, internally and externally. 

Importantly, this extends to our accounting and financial reporting responsibilities. We understand our responsibilities to investors. As part of this, we are committed to providing accurate and understandable financial reporting. This encompasses: 

Maintaining a strong internal control environment. Our system of internal controls is designed to provide reasonable assurance that transactions are executed as authorized and accurately recorded, and that assets are safeguarded. We monitor these controls through self-assessments and an ongoing program of internal and external audits. Key employee responsi- bilities are reinforced through the Company’s “Worldwide Business Con- duct Manual,” which sets forth management’s commitment to conduct its business affairs with the highest ethical standards. 

Focusing on financial stewardship. Even before the events that have shaken investor confidence, we had implemented a program to ensure employees understood their fiduciary responsibilities to shareholders. 

This ongoing effort encompasses financial discipline in our strategic and daily business decisions, and brings particular focus to maintaining accurate accounting processes through process improvement, skill development and oversight. 

Exerting rigorous oversight of the business. We continuously review our business results and strategic choices. Our Global Leadership Council is actively involved – from understanding strategies to reviewing key initia- tives and financial performance. The intent is to ensure we remain objec- tive in our assessments, constructively challenge the approach to busi- ness opportunities and potential issues, and monitor results and controls. 

## Table of Contents 

## Financial Review 

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Encouraging strong and effective Corporate Governance from our Board of Directors. We have an active, capable and diligent Board. We already meet the standards being proposed for independence, and we welcome the Board’s oversight as a representative of the shareholders. Our Audit Committee is comprised of independent directors with the financial knowledge and experience to provide appropriate oversight. We review key accounting, financial reporting and internal control matters with them and encourage their independent discussions with Deloitte & Touche, our external auditors. 

Providing investors with financial results that are complete and under- standable. The consolidated financial statements and financial informa- tion included in this report are the responsibility of management. This includes preparing the financial statements in accordance with general- ly accepted accounting principles in the United States of America, which necessarily requires estimates based on management’s best judgment. 

Our independent auditing firm, Deloitte & Touche, has audited our financial statements and has expressed an unqualified opinion. We are committed to providing timely, accurate and understandable informa- tion to investors. 

P&G has a strong history of doing what’s right. We know great compa- nies are built on strong ethical standards and principles. Our financial results are delivered from that culture of accountability, and we take responsibility for the quality and accuracy of our financial reporting. 

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