Directly from the Procter & Gamble website, "Corporate Governance is the interaction of the management, shareholders and Board of Directors to help ensure that all investors—both shareholders and creditors—are protected against managers acting solely in their own best interest." P&G takes corporate governance very seriously, they have noticed that corporate governance is most successful when management acts as long-term investors in the company.
One way that P&G promotes corporate governance among its employees is through their retirement plans. Each employee's plan consists of P&G stock which creates a sense of ownership for the employees. Corporate executives are required to hold P&G stock valued in reference to their base salary. These two economic tools help to align the interests of employees, executives, and directs with the economic interests of the company.
P&G employees make all decisions in the workplace based on Purpose, Values, and Principles. There is a strong internal control environment in place that is monitored by audit and self assessment. This measure ensures integrity among employees. Every employee is required to be trained on the Company’s Worldwide Business Conduct Manual. P&G prides itself on corporate governance and takes it seriously as it is easily seen through these examples.
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