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Colgate’s World of Respect

Respect is the cornerstone of Colgate’s global success. As a $9.9 billion consumer products company, we serve people around the world with well-known brands that make their lives healthier and more enjoyable. Wherever we do business, we work with respect for each other, our business partners, our environment, communities and other interested stakeholders. page ■2

Respect For We show our respect for each other, shareholders, consumers, customers and suppliers in all that we do. Our initiatives and policies reinforce our commitment to People these important stakeholders. page ■6 Contact Information Other Colgate Publications Available

Business Practices & ■ Advertising Placement Policy Statement Corporate Social Responsibility ■ Annual Report Respect For Upholding our global value of caring, we support community programs ranging ■ Annual Report of Laboratory Research from promoting good health and hygiene to encouraging education for children Colgate-Palmolive Company with Animals Communities and adults. page ■18 300 Park Avenue ■ Colgate’s “Best Place To Work” Program New York, NY 10022 USA ■ The Colgate-Palmolive Code of Conduct Phone: 212-310-3710 ■ The Colgate-Palmolive Environmental, Fax: 212-310-3745 Occupational Health & Safety Policy Respect For For Colgate, respecting the environment is an integral part of respecting the world Email: [email protected] Statement around us. We have made steady progress in using precious resources more efficiently, ■ The Colgate-Palmolive Product Safety Our Planet yet we acknowledge there is still much to be done. page ■24 We welcome your comments. Research Policy Statement Our Global Values Report can be found ■ The Colgate-Palmolive Quality Policy on the Internet at www.colgate.com Statement ■ The Colgate-Palmolive Product Guide Respect For Colgate strives to fulfill its responsibilities to people, communities and our planet as for Vegetarians a member of the global community. We recognize that we must continuously improve ■ Colgate Women’s Games Programs Tomorrow our efforts. page ■30 ■ Colgate’s Youth for America Community Service Competition ■ The Chairman’s “You Can Make A Difference” Employee Recognition Program Printed entirely on recycled paper. © 2004 Colgate-Palmolive Company Design by Robert Webster Inc. (RWI), www.rwidesign.com Printing by Quebecor World Acme. A Message From Senior Management

Colgate’s success is founded on the Company’s core values of Caring, Continuous Improvement and Global Teamwork. Evident in all aspects of our business, these values are the driving force behind everything we do. They are the reason for our commitment to providing safe, high quality products that enhance the lives of consumers around the world. These values fuel our suc- cessful long-term efforts to increase shareholder return, and they guide our

Reuben Mark efforts to create a workplace where all Colgate people act with integrity and with respect for one another. Given their overwhelming importance, our values are the logical focus for this report outlining Colgate’s social, environmental, and economic per- formance and our enduring respect for the people and the world around us. As we begin sharing this information more broadly, our goal is to communicate the nature of our business operations, our commitment to people and their development, the impact of our values on our activities, and our support for William S. Shanahan the communities in which we live and work. As we expand our global data collection regarding our social, environmental, and economic performance as well as other sustainability indicators, we expect our reports to grow and evolve. We understand that our work is never done and that we have opportunities for improvement. In subsequent reports, we will update you on these areas and show you how our value of Continuous Improvement has made a difference to our business, people, communities and the world around us. In this first report about our values in action, you will see evidence of Lois D. Juliber how Colgate people strive to simultaneously achieve business success and contribute to the global community. You will see that Colgate’s commitment to its values includes consistent programs and processes around the world creating a global culture based upon integrity. I1 We strongly believe that our responsibility to promote shareholder interests includes our duty to act responsibly in all aspects of our business. Our values have been and will continue to be our guide in fulfilling these duties to share- holders, Colgate people, consumers and all who depend upon us. We welcome

Ronald T. Martin your interest in these most important aspects of our Company.

Reuben Mark William S. Shanahan Lois D. Juliber Ronald T. Martin Chairman & President Vice Chairman Vice President, Global Chief Executive Officer Business Practices & Corporate Social Responsibility Colgate’s World of Respect

Respect is the cornerstone of Colgate’s global success. As a $9.9 billion consumer products company, we serve people around the world with well-known brands that make their lives healthier and more enjoyable. Wherever we do business, we work with respect for each other, our business partners, our environment, communities and all of our stakeholders.

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Colgate traces its origins to 1806 when an company. The name was subsequently English immigrant, William Colgate, started a changed to Colgate-Palmolive Company. By starch, soap and candle business in New York that time, the Company was selling laundry City. The Company became Colgate-Palmolive- soap as well as many different kinds of toilet Peet in 1928 after joining with another soaps, perfume and dental products. The Company’s leadership in Oral Care goes back more than a century when, after selling dental cream in jars, Colgate made its product much Colgate Today more convenient by developing collapsible ■2 toothpaste tubes similar to those used today. ■ $9.9 billion in sales In 1976, the Company expanded beyond home and personal care products to include ■ Products sold in over 200 countries pet nutrition with the acquisition of Hill’s Pet and territories Products. Other acquisitions that followed included the liquid soap businesses sold under ■ Approximately 70% of sales from the Softsoap name; Murphy Oil Soap; the international operations Mennen Company and its Speed Stick brands; and Kolynos, one of the largest producers of ■ Global market share leader in tooth- toothpaste in Latin America. In 1998, Colgate paste, hand dishwashing liquid, decisively became the toothpaste market leader liquid hand soap, liquid cleaners in the U.S., due to the success of Colgate Total, and specialty pet foods the first toothpaste approved by the U.S. Food & Drug Administration and accepted by the American Dental Association for protection against cavities, gingivitis and plaque. manner in every country where we operate. Our Vision and Values A global Code of Conduct is the foundation which guides our behavior. Our vision is simple: to be the best truly global Colgate has a Global Business Practices consumer products company. While working Department, headed by a senior executive toward this vision, we are guided by three officer, which oversees compliance with all core values: Caring, Global Teamwork and aspects of the Code and related monitoring Continuous Improvement. and enforcement. The Global Business Practices function also supports a global training effort Caring and maintains a telephone, facsimile and e-mail hotline through which employees and suppliers The Company cares about people — Colgate may report suspected violations of the Code of people, consumers, community members, Conduct. Anyone contacting the hotline may shareholders, business partners and other identify himself or herself or report anonymously. stakeholders. Colgate is committed to act with In addition, the Company has other auditing compassion, integrity and honesty in all situa- programs that address International Labour tions; to listen with respect to others and to Organization (ILO) issues, including a program value differences. The Company is also commit- to periodically audit all of its manufacturing ted to protect the global environment and and research facilities worldwide for compli- enhance the communities where people live ance with local law and Colgate standards gov- and work. erning environment and occupational health

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Global Teamwork and safety. An independent third-party consult- ant, Environmental Resources Management, All Colgate people are part of a global team Inc., has reviewed and confirmed the reliability and recognize that by sharing ideas, technolo- and objectivity of this audit program. gies and talents, the Company can achieve and Colgate has demonstrated its leadership in sustain profitable growth. the area of human rights in many ways. The Company joined nine other multinational com- Continuous Improvement panies and organizations as a charter signatory to the Global Sullivan Principles. The former Colgate people are committed to getting better Council on Economic Priorities has recognized ■3 every day in all they do, as individuals and as Colgate for its accomplishments in the areas of teams. By better understanding the expecta- equal opportunity, charitable giving, environ- tions of consumers, customers and other stake- ment, the advancement of women and minori- holders, and continuously working to innovate ties, and the working environment. The U.S. and improve products, services and processes, Department of Labor has also recognized the Colgate will become the best. Company for its programs promoting the advancement of women, minorities and people with disabilities. Colgate has been recognized by Hispanic, Latina Style, Fortune and Working Mother magazines for providing a workplace Commitment to Ethical Business Practices that respects and values diversity. The Company Recognizing that corporate culture has a major has a long-standing commitment to human impact on results, Colgate has well-established, rights and fair workplace standards in its own consistent processes and procedures to ensure operations and those of its suppliers, and has a that business is conducted in a highly ethical well-developed compliance process. described below. We also work to make our Our Key Brands products readily available to our consumers and we constantly search for breakthrough technolo- gies, acquisitions and outstanding marketing ideas that can produce continuous growth.

Funding Growth Colgate’s ability to generate funds to reinvest in the business is critical to driving growth and delivering superior shareholder returns. Sustaining our current businesses, developing and launching new products and investing in future growth requires that we spend in a num- ber of critical areas, including advertising and promotion, consumer insight, research and development, information technology, training and people development and capital expendi- tures focused on supply chain savings. Every area of our Company can contribute to lowering costs or increasing revenues. We continuously challenge all activities to find ways of increasing revenue and reducing expenses or to obtain greater value for the funds that are spent.

Becoming the Best Place to Work Our third business strategy, Becoming the Best Categories Key Brands Place to Work, is a company-wide effort to Oral Care Colgate, Sorriso, Kolynos attract, retain and reward the best talent. At Personal Care Palmolive, Mennen, Speedstick, Softsoap, Protex Colgate, our long history of profitable growth, product innovation, and global market leader- Household Surface Care Palmolive, Axion, Murphy Oil Soap, Ajax, Fabuloso ship are the result of the quality and talent of Fabric Care Soupline, Suavitel, Fab, Ajax our people. Pet Nutrition Science Diet, Prescription Diet More than any program, service or benefit, Becoming the Best Place to Work represents a commitment by Colgate people to live our val- ues of Caring, Global Teamwork and Continuous Our Business Strategy Improvement, manage and treat one another with respect, and take personal responsibility for creating and sustaining a better workplace. Colgate is a truly global company doing busi- ness in more than 200 countries and territories. Our success is tied to the achievement of our Our Global Supply Chain simple, three-pronged operating strategy: Driving Growth, Funding Growth and Becoming the Best Place to Work. Colgate’s supply chain organization manages a process ranging from sourcing raw materials to Driving Growth delivering products to the store shelf. At Colgate, Driving growth of our core global brands is key we produce most of our products in Colgate- to Colgate’s success. We are tightly focused on owned factories around the world, where we ■4 five global businesses: Oral Care, Personal Care, continuously look for new ways to do things Household Surface Care, Fabric Care and Pet better, faster and safer. Nutrition. Today, the global brands within these categories account for 80% of the Company’s Funding Growth with Savings business, up from 24% in 1980. Aligned with the Company’s business strategy of We grow our business by delivering a funding growth, the supply chain continuously constant stream of innovative products that improves to generate funds for the Company. delight our consumers, create new segments To keep funds flowing for reinvestment and or meet existing needs in superior ways. We increased profitability, Colgate focuses its capital carefully align our resources for growth. Our cash spending on areas that improve margins Global Business Development, Research & and fund growth. Capital cash spending Development (R&D), Manufacturing and amounted to $366.6 million, or 4.1% of sales, in Information Technology functions are all 2000; $340.2 million, or 3.7% of sales, in 2001; part of one organization, the Global Growth and $343.7 million, or 3.7% of sales, in 2002. Group. Our supply chain organization works In recent years, key investments have on improving our speed to global markets as included high-speed manufacturing lines in North America, Europe, Latin America and Asia, which have accelerated product delivery bring- Financial Highlights ing a return on investment faster. Other invest- ments have increased vertical integration, such as in-house bottle-making for liquids in Latin An important measure of the Company’s suc- America. cess is its financial performance, which sup- We continue to gain efficiencies from ports general economic growth that benefits regionalization of manufacturing operations. all constituencies. Colgate has set records year For example, a toothpaste plant in Thailand after year in all key indicators. During the past services Southeast Asia and a toothbrush plant 19 years, the Company’s earnings have grown Increasing Supply Chain Efficiency in China services the world. A new regional at a compound average rate of nearly 14%. soap plant in the Asia-Pacific region is now Detailed financial and other Company infor- Focused Manufacturing supplying broad sections of the region better, mation is presented in an interactive format on faster and safer. In Brazil, our modern oral care the Investor Relations page of Colgate’s web- Since 1996, Colgate’s move ■ toward consolidating manufac- facility exports toothbrushes, dental floss and site, accessed at www.colgate.com. turing in fewer plants has toothpaste to over fifty countries. When consol- reduced the number of Colgate idation or restructuring results in a reduction in manufacturing facilities world- the workforce, significant efforts are expended wide from 112 to 77. to assist those Colgate people in identifying Achieving Outstanding other job opportunities. Financial Success 112 Additionally, the Company lowers total costs factories through innovative partnerships with suppliers; regional and global sourcing of raw materials, 10 Year Total Shareholder Return packaging and finished products; and improv- Over the past 10 years, Colgate has pro- 77 vided its shareholders with a higher return factories ing manufacturing systems. This reflects the than its competitors and the S&P 500. Company’s deep commitment to global team- work including alliances with business partners around the world to achieve common goals. Other cost-savings activities include driving out +281% product complexity with more product and +245% packaging standardization and capitalizing on 1996 2004 the Company’s partnership with the technology firm SAP to enable efficiencies that generate +186% savings. This informational technology standard has been implemented in countries represent- ing 95% of the business based on revenue. Colgate’s increasingly efficient supply chain has been a key contributor to the improvement in gross profit margin for the Company. Colgate’s gross profit margin improved over the years from 37.9% in 1984 to 55% in 2003. S&P 500 Peer Group Colgate

Financial Highlights

Dollars in Millions Except Per Share Amounts 2003 2002 2001

Worldwide Sales $9,903.4 $9,294.3 $9,084.3 ■5 Gross Profit Margin 55.0% 54.6% 53.4% Operating Profit $2,166.0 $2,013.1 $1,834.8 Operating Profit Margin 21.9% 21.7% 20.2% Net Income $1,421.3 $1,288.3 $1,146.6 Percent to Sales 14.4% 13.9% 12.6% Earnings Per Share, Diluted $2.46 $2.19 $1.89 Dividends Paid Per Share $0.90 $0.72 $0.675 Operating Cash Flow $1,767.7 $1,611.2 $1,503.9 Percent to Sales 17.8% 17.3% 16.6% Return on Capital 38.0% 34.6% 29.7%

Shareholder Information Number of Registered Common Shareholders 37,700 38,800 40,900 Number of Common Shares Outstanding (in millions) 533.7 536.0 550.7 Respect For People

We show our respect for each other, shareholders, consumers, suppliers, customers and other stakeholders in all that we do. Colgate people are at the heart of our success; they are our most important competitive advantage. Shareholders serve as one of the important sources of revenue necessary to support steady, continuous growth. Consumers are also important stakeholders. Because our business is consumer prod- ucts, our success depends upon their satisfaction. Colgate’s programs and policies are designed to respect all our stakeholders.

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day. Within six months of joining the Company, Respect for Colgate People all employees attend “Valuing Colgate People,” a course designed to help people of all back- grounds understand how to work better At Colgate, people make the difference. together in a team environment and to value Wherever we do business, Colgate people set the contributions of all Colgate people. They our Company apart from the competition; we learn that to care for Colgate people, con- drive product innovation, market leadership sumers, shareholders, business partners and and profitable growth. To succeed, the other stakeholders, we must act with compas- ■6 Company must attract and retain the best peo- sion, integrity and honesty in all situations, lis- ple. As Colgate strives toward being the best ten to others and value differences. They learn truly global consumer products company, we that all Colgate people are part of a global continue to put programs in place to create a team working together across countries and workplace that reflects our value of caring and throughout the world, sharing ideas, technolo- respect for Colgate people and develops their gies and talents. And they also learn that suc- skills to meet their potential. cess comes by getting a little better every day. To reinforce and enhance the corporate Guided by Values culture, Colgate first formalized its Code of and the Code of Conduct Conduct in 1987 to set the framework for To create a corporate culture firmly grounded worldwide principles which govern relation- in trust and integrity, the Company is guided ships with fellow employees, the Company, by our three overriding values: Caring, Global outside businesses, consumers, governments, Teamwork and Continuous Improvement. local communities and shareholders. The Code All Colgate people receive training on how clearly defines Colgate’s commitment to human to make these values part of their efforts every rights, including our policy to oppose and not to use child labor, defined as work by any per- “Becoming the Best Place To Work.” These Colgate’s Code of Conduct son younger than 16 years of age. The Code are listed in the table (below left). also states Colgate’s respect for employees’ law- To support this initiative, Colgate people The Code reinforces and ful freedom of association. The Colgate Code of share in the success they help to create enhances the Colgate culture. Conduct is regularly reviewed and updated to because Colgate’s compensation philosophy is The most recent update was meet changing needs. to reward excellence and pay-for-performance. issued in January 2004 in over 25 languages. Ensuring that the Code is understood and Whether it’s excellence on an individual, team, followed worldwide, the standards of business unit or global basis, the greater the conduct are communicated to employ- performance, the greater the reward. ees in more than 25 languages, in Incentives are centered on supporting the pamphlets as well as on the Colgate Company’s business goals of Driving Growth, Intranet. A letter from the Chairman Funding Growth and Becoming the Best reminds all employees of their responsi- Place to Work. bility to bring to the attention of their Recognizing the broad dimensions of per- managers any situation they believe to sonal life, the Company, in addition to encour- be in conflict with the Code. They are aging a balance between work and personal reminded that they can report question- life, offers a number of other employee benefits able or inappropriate conduct via the to help meet personal needs. The benefits vary Colgate Hotline and can do so anony- at different locations around the world due to mously if they choose. This 24-hour local customs and laws, but can include near- hotline is available for all employees and site backup childcare centers, emergency in- vendors to report any potential violations home care for dependent children and adults,

as well as to provide Colgate employees with academic advisory services, tuition and educa- Factors for Becoming the Best Place to Work ethics advice and clarification about how the tion assistance, personal services for legal, Code of Conduct might apply to specific situa- financial, health and wellness advice, and Fundamental Values tions. Additionally, all supervisors, managers counseling services among others. Some of Exciting Work and executives learn more about the these are leading edge, such as an on-site Motivating Environment Company’s ethical business standards in a lactation room and generous adoption Stimulating Careers mandatory course called “Business Integrity: assistance programs. Recognition and Rewards Colgate’s Values at Work.” Producing a written code of conduct is Encouraging Education and Training Keeping Connected not enough. The Global Business Practices Education and training programs are con- ■7 Department, headed by an executive officer, ducted continuously across the Colgate world. Our Core Values oversees compliance with the standards set A global training curriculum of more than 200 Caring forth in the Company’s Code of Conduct and courses promotes learning across all disciplines Global Teamwork Business Practices Guidelines. All reported viola- and at all levels. Guided by a mission of build- tions are promptly investigated and are treated ing skills to meet key business needs and sup- Continuous Improvement confidentially to the greatest extent possible. port personal development, education and Principles of Colgate people are assured they will not be training take place in a variety of ways. People Managing with Respect retaliated against as a result of reporting a enroll in established courses, which are identi- Communicating Effectively potential violation of the Code of Conduct. fied for each functional and leadership compe- Giving and Seeking Feedback tency, on Colgate’s Intranet. Overall, employees Becoming the Best Place to Work complete an average of about 40 hours of Valuing Unique Contributions Colgate’s goal of becoming the best place to training per year. Promoting Teamwork work is so important to achieving success that Colgate’s education and training philosophy Setting the Example it is now a fully developed global initiative. Six is guided by four principles: the programs must factors have been identified as essential for be Colgate-specific; share best practices; have a South Africa

Mexico

France

Malaysia

United States

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Taking place all over the world, education and training at Colgate happen in the classroom, on the job and through e-learning. Developing Colgate People

Each year, about 30,000 practical work application; and be taught by sions where expectations for future perform- participants take some 110 Colgate leaders. This philosophy creates a ance are set. During reviews, Colgate people courses that are taught in unique learning environment for every Colgate are held accountable not only for achieving more than 25 languages, in all training course. results, but also for how they achieve results, work functions and 35 major In addition to everyone taking the “Valuing measured in part by how well they demon- technical disciplines. All courses are taught by Colgate Colgate People” course, some courses are strate Managing with Respect principles. people, who are certified as mandatory for certain positions. For example, trainers after completing all new managers are required to complete Celebrating Diversity professional training courses. “Managing with Respect” and “Coaching and Colgate’s 38,000 people are a bridge to a Feedback.” In “Managing with Respect,” the five growing multicultural marketplace and give principles are reinforced as being key to achiev- Colgate a competitive advantage in the more ing superior business results and Becoming the than 200 countries and territories where Best Place to Work. People in a variety of sales, Colgate products are sold. The Company marketing and customer marketing positions welcomes different viewpoints and values must also take “Promo Power!,” a course on the contributions of all Colgate people. The consumer promotions, and “Key Account Company’s developmental strategy is to attract, Management.” reward and retain a diverse workforce world- Training for more than 50 computer applica- wide, create an environment where diversity is tions, such as Microsoft Project, SAP and Lotus valued, and ensure that diversity is incorporated Notes, is available through e-learning, which is within the Company and within the communi- augmenting classroom training to make train- ties where employees live and work. As ing more flexible and available. a global company, Colgate strives to provide equal opportunities for everyone everywhere, Identifying and Developing Leaders within widely diverse cultural contexts. Colgate recognizes that talented people want To ensure that Colgate’s approach to assignments that challenge and stretch their Managing with Respect is practiced every- capabilities. Using the same tools throughout where, Colgate’s training program “Valuing the Company, Colgate takes a global approach Colgate People” is taught in every Colgate to identify, develop and retain talent. In 2003, subsidiary globally. This course is designed to CEO Magazine ranked Colgate’s Leadership help Colgate people worldwide understand Development Program among the best of 240 how to encourage and motivate people of all 75% of major U.S. companies. The Company encour- backgrounds to meet their personal objectives General Managers ages people to take on challenging and excit- as well as the objectives of Colgate. Affinity are non- ing work and gives them the experience, expo- groups, such as the Asian Heritage Group, American sure and support they need to reach their Black Action Committee and Hispanic Action potential. Individual development planning Network in the U.S., are supported by manage- ■9 enables employees to assess the skills, behaviors ment for professional and cultural develop- and knowledge they need to achieve specific ment. Valuing Multicultural goals and then shows employees how to devel- Colgate’s commitment to diversity goes Management op them. As a result, Colgate people are highly beyond Colgate employees to its business Colgate General Managers effective and flexible in the face of change and partners. For example, in North America an hold citizenship in more than are prepared to meet future challenges. Emerging Business Sourcing program encour- 25 countries. Colgate uses succession management to ages purchasing from small- and medium-sized identify and develop future leaders to carry on enterprises owned by minorities and women. the long legacy of success. People with high Colgate’s spending through these target potential are identified early in their careers suppliers has increased 86% since 1998. These so they can follow career paths to leadership business partners contribute to successful new roles, with planned career moves building an product launches. array of necessary skills. Colgate’s accomplishments in inclusiveness As part of the development process, employ- have been widely recognized externally in ees participate in annual objective-setting ses- the U.S. by such publications as Hispanic Global

Recognizing Achievement

Magazine, Latina Style and Working Mother, a global judging by representatives of senior as well as DiversityInc.com. The Company has management and senior functional leaders. been selected by Fortune magazine for its “50 Linking employee contributions to the Best Companies for Minorities” list as well as for Company’s success, Colgate has chosen the the “100 Best Companies to Work For.” Hill’s has Company’s stock as the main award for win- been named as a best practices company by ners, with values ranging from $250 for period the Equal Employment Advisory Council for its winners to $2,500 for global winners. support of the Martin Luther King, Jr. holiday. The program has achieved broad support Colgate people have been among those cited and participation, as demonstrated by the by the Harlem YMCA’s National Salute to Black thousands of projects nominated each year. Since 1986, more than 11,000 Achievers in Industry. Many of the winning projects are established as Colgate people have been best practices, and others have strengthened honored in the Chairman’s “You Can Make a Difference” Recognizing Outstanding Achievement the presence of Colgate within local communi- Awards Program, recognizing Colgate is a firm believer that recognition and ties by providing health education and public achievements that go beyond reward are an important factor in retaining outreach. In addition to widespread support what is expected. good people. Programs not only reward out- internally, the program has also received signifi- standing achievement but also publicly recog- cant recognition from others, including the nize individuals whose accomplishments International Leadership Award from the exceed expectations. American Society for Training & Development. Inside the Company, the Chairman’s Employees are also recognized within vari- “You Can Make a Difference” Awards Program, ous recognition programs throughout the busi- ■10 introduced in 1986, is designed to reward ness. For example, Colgate North America has the entrepreneurial spirit of Colgate people all a Star award program that honors individuals around the world. The program recognizes showing personal leadership, performance achievements demonstrating innovation, inge- beyond expectations and actions that present nuity and executional excellence throughout them as role models. Colgate’s business by people at all levels. Outside the Company, Colgate is recognized By aligning nominated projects with for its outstanding achievement when awards Colgate’s three core objectives of Driving are made. In the U.S., Fortune magazine has Growth, Funding Growth and Becoming the included Colgate as one of “America’s Most Best Place to Work, it also serves to strengthen Admired Companies,” and CEO Magazine lists each employee’s connection to the business. Colgate among the “Top 20 Companies for Three times a year, local winners are selected Leaders.” In Argentina, Colgate has been around the Colgate world from among projects among those cited by Apertura magazine as that have been nominated by peers. From the “Best Place to Work.” Colgate-Palmolive these “period” winners, annual award winners India was cited as among the best employers are named, and they go on to be evaluated in of India in a 2003 Business Today study. Keeping Colgate People mental, occupational health and safety, provid- and Their Families Healthy ing advice and assessment of risks independent of commercial concerns. Each Colgate facility is Making Occupational Health and Safety a Top responsible for implementing global standards Priority. Colgate is committed to maintaining and is audited against them. healthy and safe work conditions in all facilities. EOHS coordinators at all locations undergo In manufacturing, marketing and facility opera- training programs to understand and assure tions, it is the Company’s worldwide policy to compliance in factories and research centers. comply with or exceed all local applicable The training programs include technical health and safety rules and regulations. Colgate courses on broad safety subjects as well as contractors are expected to conform to more targeted training on specific issues, such Colgate’s global standards. Health and safety as enzymes and ergonomics. The focus of the principles guiding the Company’s actions 2003 EOHS coordinator training effort centered worldwide are part of a comprehensive on Process Safety Management, a system to Environmental, Occupational Health & Safety ensure prevention of potentially hazardous (EOHS) Policy Statement, available at chemical releases. www.colgate.com. Colgate also shares safety case studies in Colgate EOHS teams throughout the world order to spread knowledge and generate serve as the corporate resource for environ- ideas. Information is exchanged globally about

Global

■11 Continuous Improvement in Worker Safety 10

Total Recordable Accident Rate Total Lost Workday Case Rate 8

Working toward our “goal of zero,” 6 Colgate’s lost workday and record- able accident rates have decreased 4 by over 80% since 1990, as shown 2 in the graph at right.

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 potentially hazardous EOHS-related situations and examples about how a site may achieve in order to prevent similar injuries, accidents or the expectations. environmental incidents. In addition to standards and guidelines, The Company tracks and reports three Colgate’s global safety program includes train- measures of worker safety: ing, safety audits, safety statistics, reporting ■ Total Lost Workday Case Rate, measured as and the establishment of division safety teams. the rate of injuries for 100 workers working Colgate’s European and Central European divi- for one year. This includes all cases that sions partner with the European Union Health involve days away from work. & Safety Directorate and local governments to ■ Total Recordable Accident Rate, measured as participate in European Safety Week at each all cases that result in loss of consciousness, manufacturing and R&D location. During 2003 lost workdays, restriction of work or motion, Euro Safety Week, Colgate teams focused on medical transfer to another job or medical the safe handling of potentially hazardous treatment beyond first aid. chemicals. ■ Severity Index, measured as all days lost In another example of a safety program associated with lost workday accidents. We encouraging the commitment to zero acci- began to track this data in 2001, and plan dents, Colgate workers in Colombia, their to report on it in subsequent reports. families, the community and suppliers partici- pate in a variety of activities during Safety & Environmental Week. Safety-themed activities Tracking Our Health & Safety Records include drawing contests, dance shows per- formed by the children of Colgate employees, 1998 1999 2000 2001 2002 fire drills and seminars. Colgate has internal awards programs to Number of U.S. Occupational Safety recognize and encourage excellent safety per- & Health Administration (OSHA) formance. The President’s Annual Awards for Noncompliances (U.S. Facilities) 5 4 6 0 2 Safety Excellence are presented to manufactur- Fines Paid $4,325 $2,625 $7,162 $0 $12,000 ing and R&D facilities that achieve outstanding health and safety performance, and the Many of the non-compliances President’s Awards for Safety Achievement rec- reported from 1998 to 2002 Colgate continues to make significant ognize sites reaching time milestones without were not considered to be progress toward building a safer workplace. a lost workday injury or illness. From 1999 to serious by OSHA. The non- On a cumulative basis, from 1990 the total 2002, 50 sites received awards for safety excel- compliance event in 2002 recordable accident rate and total lost workday lence and 53 plants won for safety achieve- involved two citations for the case rate are down 81% and 85%, respectively. ment. This represents approximately 79% of same incident. These citations In the past six years, total recordable accidents Colgate’s total manufacturing and R&D facilities. were considered serious and have declined from more than five per hun- Colgate has received external safety awards were immediately abated. The facility has instituted new dred employees in 1995 to 1.06 in 2002. The as well. For example, the Mexico Ministry of procedures and systems to Company has also continued to reduce lost the Labor Secretary and Social Welfare awarded improve this aspect of their workday case rates from 2.1 per hundred Colgate the “Safe Industry” award in 2003. health and safety program. people to 0.4 in 2002. The decline of 45% Many plants have especially outstanding from 0.73 in 2001 was the biggest annual records. For example, Colgate’s warehouse in reduction ever and surpassed a previous goal Moncton, Canada, has achieved 39 years with- a year ahead of schedule. out a lost workday accident or illness, and the Each year, Colgate benchmarks safety statis- Sanxiao, China, plant reached five million hours tics with a consortium of more than 40 global without a lost workday accident in 2003. multinational companies. Based on 2002 safety Also, in 2003, six sites reached three million results, Colgate was ranked in the second per- hours worked without a lost workday accident; formance quartile compared with 45 other one factory achieved ten years without a lost ■12 companies reporting safety statistics. This is a workday accident; and three plants reached considerable improvement from 11 years ago five years worked without a lost workday when statistics were first reported and Colgate incident. ranked in the bottom of the fourth perform- ance quartile. Wellness Programs Throughout the Colgate Working toward a “goal of zero” — zero World. Colgate’s concern for employee well- fatalities, zero life-altering events, and zero lost being goes beyond a safe and healthy work- workday and recordable incidents over time — place. The Company aims to provide primary Colgate has programs in place to achieve health care for employees and their families these goals and address employee safety. and offers a variety of wellness programs. In In the manufacturing area, the Company some countries, Colgate has a physician or has more than 65 internal EOHS standards nurse on staff; in other countries, outside dealing with such issues. The standards estab- services are used. Because individual countries lish minimum performance expectations have different health priorities and health on environmental protection and worker systems, implementation of programs varies health and safety, and provide guidelines around the world. United States

Keeping Colgate People Healthy

Some Colgate facilities have health care professionals on staff for Colgate people and In Colombia, the Dominican Republic and Led by a group of Colgate people in South their families while others other Latin American countries, a variety of pro- Africa, Zambia, Kenya and Zimbabwe, Colgate have established arrange- grams for workers, their families and contrac- has reviewed its policies and practices concern- ments with outside facilities. tors include medical emergency and nonemer- ing HIV+/AIDS-infected employees and family gency services and access to preventive med- members throughout sub-Saharan Africa. The ical education. Among the services are annual review addressed working conditions of those checkups, medical evaluations, nutritional infected, education and prevention, post- advice, and stress management and psycholog- diagnosis counseling, accessibility of medica- ical counseling. At an annual employee health tions, and medical and life insurance coverage week, educational programs using an informal for employees and their families. As a result, and fun approach emphasize healthy attitudes. Colgate sponsors educational workshops on In other countries, health workshops and HIV+/AIDS for employees, their families and visiting physicians help employees learn about interested people within the communities health and hygiene. At Colgate-Palmolive where the Company operates. Guangzhou, China, medical professionals give In conjunction with local governments, talks on topics such as oral care, hepatitis B and Colgate provides medical and life insurance women’s health. coverage to Colgate people in Kenya, South In the U.S., Colgate launched an initiative Africa, Zambia and Zimbabwe to cover AIDS this year called Your Health @ Colgate, which and AIDS-related diseases with minimal costs to promotes healthy living and nutrition practices. employees. It includes steps that can be taken to avoid ill- Throughout the Colgate world, we are com- ness, disability and premature death. Existing mitted to fair treatment of all Colgate people. programs are being incorporated into this new We afford the same application of benefit initiative, such as one that provides Guidance plans and personnel policies and procedures ■13 Resources, and another that gives Colgate towards employees with HIV+/AIDS as any employees access to health information online other employee requiring medical treatment. and in newsletters mailed to their homes. Through volunteer organizations, Colgate also helps support efforts such as the Addressing HIV+/AIDS. Colgate, like other Zimbabwe AIDS Prevention & Support global companies, understands the impact Organization, the Association of People with of HIV+ and AIDS, not just on a community AIDS in Kenya, the St. Francis Care Centre in and its people, but also on a company and its South Africa and others dedicated to develop- business. The spread of HIV+/AIDS profoundly ing vaccines to combat terminal diseases and affects individual lives everywhere. But in to care for those having contracted the disease. developing parts of the world, it also impacts With over 5.5 million reported AIDS cases in a local government’s ability to help grow the India, China, Thailand and Vietnam, it is clear economy and provide services, as resources that the Company’s efforts must expand into are needed to educate citizens and to prevent Asia as well. and treat this disease. Conducting Legal Audits Respect for Shareholders Each year, Colgate locations around the world are selected for a legal audit. This audit is designed to help ensure compliance with Colgate’s global values of local, national and international laws as well Caring, Global Teamwork and as the Company’s Code of Conduct. The Audit Continuous Improvement are Committee of the Board of Directors is advised as important in the Company’s where audits are conducted and of significant relationships with shareholders findings. This process serves as a preventive as they are with Colgate peo- measure as well as a learning opportunity for ple, business partners, con- the Company. sumers and all stakeholders. The Company takes seriously its Valuing Shareholders efforts to provide shareholders To align the interests of employees and share- with a good return on their holders, Colgate encourages the ownership of investment, and believes that shareholders have Colgate shares by employees. The Company the right to expect Colgate to be not only prof- recently adopted stock ownership guidelines for itable but also ethical and a contributing mem- its directors and senior managers. ber to the social environment in countries Colgate is committed to building and main- where we operate. taining strong relationships and facilitating access of shareholders to senior management. Demonstrating Leadership in So that the Company’s goals are aligned with Welcoming Corporate Governance shareholder expectations, Colgate encourages Shareholder Input Corporate governance, the rules and values shareholders to offer suggestions on improving Colgate welcomes input and that direct our business, is more than just words the business by contacting the Company by questions from shareholders at Colgate. Strong ethics guide our Board of telephone, mail or e-mail listed on the Colgate at the Annual Meeting held Directors, which in turn guides good gover- website. Through this dialogue, Colgate knows each May. nance. Our Board has been recognized for its that shareholders are not solely concerned with integrity, independence, experience and diversi- financial performance but are also interested in ty. Since 1989, Colgate’s Board of Directors has Colgate’s policies and actions related to embrac- been made up of outside independent directors ing social responsibility. with the exception of the Company’s CEO. All The Company has been recognized for its directors who serve on the committees that relations with investors, including Investor oversee audit, compensation and governance Relations Magazine’s Grand Prix award for Best matters are independent. It is the Company’s Overall Investor Relations in 1999 and Best policy that none of its independent directors North American Company in the U.K. market in receive any consulting, legal or other non-direc- 2000, 2001 and 2002. In its 2003 ranking of tor fees from the Company. With their collective investor relations functions, Institutional Investor experience in business, education and public magazine ranked Colgate Investor Relations first service, international and diverse backgrounds, among all consumer goods companies. educational achievement, and moral and ethical character, Colgate’s directors provide effective Reporting Accurate oversight of the Company’s business. We are for- Financial Performance Data tunate to have a group of outstanding individu- Colgate is committed to the quality, integrity als providing advice, guidance and leadership. and transparency of its financial reports. This Colgate’s Board of Directors, which has been commitment is reflected in the Company’s long- at the center of the policies and standards standing policies and procedures, including an expressed in the Code of Conduct and Business internal audit group monitoring financial con- Practice Guidelines, has been a leader in initiat- trols worldwide, independent auditors who ■14 ing corporate governance standards. In have a broad mandate and an independent 2001, the Company received the Wharton/ Audit Committee overseeing these areas. To SpencerStuart “Board Excellence Award,” pre- maximize the effectiveness of these resources, sented to one U.S. public company each year Colgate people are expected to engage in by the Wharton School of the University of open and honest communication and a free Pennsylvania and SpencerStuart for demonstrat- exchange of information with the internal and Auditing Around the World ing leadership in corporate governance. On external auditors and the Audit Committee. For three occasions, the Company has been ranked additional information regarding the important Global standards define performance expectations by Business Week magazine among the top 10 roles of the Company’s internal auditors, inde- worldwide and are used by Boards in the U.S., most recently in October pendent auditors and Audit Committee, please auditors at Colgate facilities. 2002. In September 2002, the Board of see the “Colgate-Palmolive Company Audit Directors was named one of five “Champion Committee Charter,” which is available on the Boards” by Corporate Board Member magazine, Company’s web site. which cited the open interaction among direc- tors and between the Board of Directors and management. 1 Colgate’s Corporate Governance Commitment

2 Governance is an ongoing commitment shared by our Board of Directors, our Management and all other Colgate people. At Colgate, we believe strongly that good corporate governance accom- panies and greatly aids our long-term business success. This success has been the direct result of Colgate’s key business strategies, including its focus on core product categories and global brands, people development programs emphasizing "pay for performance" and the highest business stan- 3 dards. Colgate’s Board has been at the center of these key strategies, helping to design and imple- ment them, and seeing that they guide the Company’s operations.

4

Colgate’s Good Governance Principles

Our Board of Directors is independent, experienced and diverse. 5 The Board believes that an independent director should be free of any relationship with Colgate or its senior management that may in fact or appearance impair the director’s ability to make inde- pendent judgments, and has recently adopted strict new independence standards based on this 6 principle. Since 1989, Colgate’s Board of Directors has consisted entirely of outside independent directors, with the exception of the CEO. As its present directors exemplify, Colgate also values experience in business, education and public service fields, international experience, educational achievement, strong moral and ethical character, and diversity. 7 Our Board focuses on key business priorities and leadership development. The Board plays a major role in developing Colgate’s business strategy. It reviews the Company’s 8 strategic plan and receives detailed briefings throughout the year on critical aspects of its imple- mentation. The Board also has extensive involvement in succession planning and people develop- ment with special focus on senior management succession.

Open communication between and among directors and management 9 fosters effective oversight. Inside and outside the boardroom, Colgate’s directors have frequent and direct contact with Colgate’s management. Key senior managers regularly join the directors during Board meetings 10 and more informal settings, and together they actively participate in candid discussions of various business issues. Between scheduled board meetings, directors are invited to, and often do, con- tact senior managers with questions and suggestions. Communication among the directors is enhanced by the relatively small size of Colgate’s Board, which fosters openness and active discus- sion, and by regular meetings of the independent directors without the CEO present.

Established policies guide governance and business integrity. Our Board of Directors First formalized in 1996, Colgate’s "Guidelines on Significant Corporate Governance Issues" are 1. Reuben Mark reviewed annually to ensure that they are state-of-the-art. Formal charters define the duties of Chairman of the Board each Board committee and guide their execution. Colgate’s Corporate Governance Guidelines and and Chief Executive Officer Director since 1983. all Committee Charters are available on our website at www.colgate.com. Additionally, the Board 2. Jill K. Conway sponsors the Company’s Code of Conduct and Business Practices Guidelines, which promote the Independent Director highest ethical standards in all of the Company’s business dealings. since 1984. 3. Ronald E. Ferguson Independent Director Our Board plays an active role overseeing the integrity since 1987. of the financial statements of the Company. ■15 4. Carlos M. Gutierrez Independent Director The Board is committed to the quality, integrity and transparency of Colgate’s financial reports. This since 2002. commitment is reflected in Colgate’s long-standing policies and procedures, including an internal 5. Ellen M. Hancock Independent Director audit group monitoring financial controls worldwide, independent auditors who have a broad since 1988. mandate, and an independent Audit Committee overseeing these areas. 6. David W. Johnson Independent Director since 1991. Good governance is the responsibility of all Colgate people. 7. Richard J. Kogan Colgate people worldwide are committed to living our global values of Caring, Global Teamwork Independent Director and Continuous Improvement in all aspects of our business. A constant dedication to good gover- since 1996. 8. Delano E. Lewis nance shapes our Colgate culture and ultimately leads to good business results. Independent Director from 1991 to 1999 and since 2001. 9. Elizabeth A. Monrad Good governance thrives from continuous improvement. Independent Director The Board has established a formal procedure to evaluate its overall performance against criteria since 2004. that the Board has determined are important to its success. These criteria include financial over- 10. Howard B. Wentz Independent Director sight, succession planning, compensation, corporate governance, strategic planning and Board since 1982. (Retiring May 2004) structure and role. The Board reviews its performance and identifies steps to continuously improve. Respecting Consumer Privacy Respect for Consumers Colgate respects and honors the privacy rights of our consumers. In consumers’ interactions with Colgate, through requests for product Understanding Consumers information or participation in Company- By better understanding consumers’ and cus- sponsored competitions for example, con- tomers’ expectations, we continuously work to sumers may provide personal information such innovate and improve products, services and as names, street addresses and e-mail address- processes. Through our Consumer Affairs and es, to the Company. We use such information Consumer Insights departments, we listen to only for the reasons it was supplied to us, consumers and work to anticipate their future unless a consumer consents to other uses, and needs and preferences. as necessary for our record-keeping purposes.

United States Since our business is con- We adhere to local legal requirements regard- sumer products, our success ing the protection of personal information. depends upon consumer satis- faction, trust and goodwill. Advertising Responsibly We can best achieve our Colgate-Palmolive manufactures and sells objectives and serve the needs products that improve the lives of people all of consumers by following a around the world. Through our advertising, consistent, fair and sensitive we generate awareness of our brands and program of consumer commu- communicate the unique value and benefits nication. For that reason, of our products to consumers. Our advertising Colgate has established a is also a reflection of Colgate’s reputation for Consumer Affairs department reliability, dependability and trustworthiness. in 31 locations around the Therefore, our advertising content and place- world to foster dialogue with ment must be sensitive to the public and its consumers. The mission of concerns, interests and sensibilities. Listening to Consumers Consumer Affairs representa- We place advertising in a variety of media tives who answer these including television, radio, print, Internet and Through our Consumer phones is to: outdoor. We actively seek outlets that reflect the Affairs and Consumer Insights ■ Listen and learn about consumers in a sensibilities of our target consumers. We look departments, we listen to professional, consistent and caring manner for media outlets that are generally positive in consumers and work to that exceeds their expectations so that they nature, contain positive role models, and have anticipate their future needs will always experience satisfaction with our a family orientation. and preferences. products. For placement on television or radio, ■ Bring consumer feedback to the decision- Colgate carefully considers the content of the making process to help Colgate improve on-air programming. While we do not have existing products and develop new products control over the scripts of any television or that will meet consumer needs. radio show, we exclude programs that we con- The Consumer Affairs departments are sider to be offensive, anti-social or in bad taste, staffed with professional representatives who or which could stimulate anti-social behavior are knowledgeable about Colgate-Palmolive through viewer imitation. We do not advertise products and welcome the opportunity to on shows that contain programming that hear from consumers. insults, ridicules or denigrates people because Consumer opinions, concerns and inquiries of their age, gender, sexual orientation, race, communicated to Colgate regarding our religion, ethnicity, physical or mental health. products are important sources of information. To help ensure that advertising placements Consumer needs are constantly changing, so strictly adhere to this policy, we employ a we must continually listen to what people want screening service to immediately alert us to pro- ■16 and use our creativity to satisfy these changing gramming that is overtly offensive. Programs needs. When a consumer expresses dissatisfac- are also scrutinized for unnecessary violent and tion, we address the problem promptly, courte- sexual details that are not integral to the plot ously and fairly, and make every reasonable or story line. effort to sustain or regain the consumer’s good- Before placing our advertising in printed will and his or her continued purchase of media or on the internet, we carefully consider Colgate products. the same guidelines listed above with regard to Colgate’s Consumer Insights department content and context. At Colgate, consumer also works to anticipate consumer needs and opinions are a critical component of this preferences in our products. This department process to determine appropriate advertising works to build a strategic knowledge base placement. Our advertising policy guidelines through market research and trend analysis. are periodically reviewed and revised to ensure As the Company’s experts and advocates, they their appropriateness in fulfilling both the are an agent of change within the Company. needs of the Company and those of our They work to see the future and make it consumers. today’s reality. Recognizing Consumer Choices provide prompt assistance to consumers in case One of the most important ways we demon- of product tampering or misuse. strate caring for our consumers is by providing them with information to help them choose Making Quality Products the right products to meet their specific needs. Respect for consumers and quality go hand in For our vegetarian consumers, Colgate offers hand. Colgate has established quality standards a large selection of products free of animal- that define performance expectations for derived ingredients. With more consumers operations. A comprehensive quality training seeking such products every day, Colgate is curriculum helps drive quality improvements committed to making it easier for consumers throughout the manufacturing and technology to identify and select these products. Upon organizations. The programs include subjects request, we provide a list that includes the on broad quality issues and also in highly Colgate products sold in the U.S. that currently specific areas such as engineering design and are free of animal-derived ingredients, and microbiological control. appropriate for consumers seeking to avoid A global quality auditing program monitors products containing animal ingredients. The progress for manufacturing facilities, ware- Product Guide for Vegetarians is updated peri- houses, distribution centers and technology odically to reflect any changes to ingredients centers. Audit teams are multifunctional, draw- in Colgate’s products. If consumers are unsure ing upon experts in microbiology, cleaning and of whether a particular Colgate product is sanitization, manufacturing, product develop- appropriate for vegetarian consumption or use, ment and other areas to assess compliance. or to obtain the most updated information, Each manufacturing facility and technology they can contact Consumer Affairs or check center conducts an annual quality audit. These the information for vegetarian consumers at local internal audits are complemented by www.colgate.com. approximately 20 audits a year conducted by a team from Colgate’s Global Quality function Assuring Product Safety at various sites around the world. Each site The safety of consumers is Colgate’s first and receives a corporate evaluation approximately greatest priority. The Company is committed every three years and develops a clearly to ensuring that consumers can trust Colgate defined forward action plan. When audits are products for their safety, quality and superior conducted, best practices are noted and performance. Products sold by Colgate must shared with other facilities. not only meet or exceed all safety standards set One important activity aligned with protect- by law, but also meet the Company’s own strin- ing people and assets is a mock recovery audit gent standards. All products are subjected to program, conducted annually in every country rigorous safety evaluations beginning early in where Colgate products are sold. This ensures Commitment to Quality the product development cycle, starting with that procedures are in place should a recall or ingredients, their interactions, and their effects recovery of product be required. The mock Colgate people throughout when used as intended or accidentally mis- recovery audit also ensures that Colgate is the world ensure our products used. Colgate also participates in programs to meeting our standards for product traceability meet comprehensive quality and retrieval. ■ standards.

■17

Global Respect For Communities

By living the Company’s global values, Colgate and its people work to be contributing members of the global community. Especially through the value of caring expressed by local giving and volunteerism, Colgate shows its respect for the communities where the Company does business.

Philippines United Kingdom

Respect For Communities Global Guidelines for Caring takes place in a variety of programs Community Responsibility from promoting good health and hygiene and Colgate supports the Global Sullivan Principles, encouraging education for children and adults, a code of corporate conduct that serves as a to supporting many types of social services. guide for the policies and practices of socially This strong commitment to social responsibil- responsible companies. The Company was a ity is carried out by Colgate’s involvement in member of the steering committee and charter many of the communities where Colgate people signatory to the Principles, whose objectives to live and work. Programs such as “Bright Smiles, support economic, social and political justice in ■18 Bright Futures,” “Lather Up for Good Health,” countries where they do business were formu- “Phelophepa,” “Operation Smile,” “Colgate lated by the late Rev. Leon H. Sullivan in 1999. Youth for America,” “Hill’s Shelter Nutrition The Principles form an aspirational framework Project,” and “Colgate’s Women’s Games” and against which the internal policies and practices contributions to some 500 different charitable of socially responsible companies can be organizations around the world are testament aligned. to Colgate’s ongoing commitment to caring. Through partnerships with nonprofit organi- Oral Care Education and Treatment zations, Colgate works to achieve mutual goals In communities around the globe, Colgate pro- by donating money and products, sponsoring vides health education and treatment to millions events, and participating on boards and com- of children and their families. One major initia- mittees. Colgate’s support for community efforts tive is “Bright Smiles, Bright Futures,” which over the past three years, including its world- reaches more than 50 million children in 80 wide oral health program, “Bright Smiles, Bright countries every year. The multi-tiered program Futures,” has exceeded $60 million. delivers oral health education and treatment with emphasis on education and prevention, The Company’s global “Clean Hands, Good using a variety of materials and sample products Health” school- and community-based educa- provided free to schools and health educators. tional handwashing program has already Materials, available in 30 languages, include reached more than five million people in many videos, storybooks, sing-along-songs and inter- countries including Colombia, Costa Rica, El active activities for educators to use in the class- Salvador, Guatemala, Kenya, Malaysia, Panama, room and for parents to use at home. Romania, Senegal, South Africa, Thailand, the By establishing partnerships with govern- U.S. and Zambia. ments, dental professionals, education profes- With a goal of becoming a part of the regu- sionals, schools and communities, “Bright lar school curriculum, the program, patterned Smiles, Bright Futures” is making a significant after “Bright Smiles, Bright Futures,” provides contribution to the World Health Organization’s educational materials and sample products to objective to reduce dental disease in children schools and communities and includes a public worldwide. relations and public service advertising component. In the U.S., the program also includes mobile dental vans, staffed by volunteer den- Helping Youth Grow into Productive Adults tists who visit local communities in urban and With many activities, Colgate helps youth rural areas. These volunteer dentists conduct develop a sense of personal achievement. Some free dental screenings, distribute multicultural programs focus especially on girls and young educational materials, and educate the children women. In the U.S., Colgate sponsors two of and their families about the importance of the longest-running corporate-sponsored events maintaining good oral health. One of the benefiting American young people.

Caring for the Global Community Russia South Africa

Children and adults all around the world benefit latest elements of the program is an online The Colgate Women’s Games, an annual from Colgate’s many and school curriculum featuring fun and entertain- track-and-field competition with finals at New varied programs, supported ing activities. York City’s Madison Square Garden, draws more by contributions and volun- In addition to “Bright Smiles, Bright Futures,” than 10,000 participants from the U.S. East teerism. Illustrated above are Colgate supports a number of clinics and Coast each year, many who would have never just a few of these: children programs encouraging good dental care and considered participating in an organized sport. learning about oral health treatment. The Games have been a stepping-stone for care; a young man with his future Olympians, but are most importantly a canine assistant; a patient Handwashing Hygiene celebration of respect, determination and good receiving treatment in a According to health experts, proper hand sportsmanship. They foster a spirit of individual 19 Colgate-supported dental ■ clinic; and participants in hygiene is one of the most effective ways to achievement and self-esteem, and by requiring Colgate’s “Clean Hands, prevent disease transmission, but handwashing school attendance to participate, they instill Good Health” handwashing with soap is far from universally practiced. These the importance of educational achievement. program. experts say that there is a need to improve Educational grants to the winners are a further proper handwashing in all countries regardless incentive to encourage higher educational of their level of economic and social develop- achievement. ment. As a leading global marketer of bar and Founded in 1973, Colgate Youth for Amer- liquid soaps, Colgate partners with public health ica, a community service awards program, leaders around the world and serves on the honors local units of national youth organiza- steering committee of the World Bank Hand- tions for their outstanding community service washing Project, a global public/private partner- projects. With more than 300 winners selected ship initiative to increase awareness of the annually, Colgate has awarded nearly $6 million importance of proper handwashing and its to local clubs and organizations since the pro- critical role in saving the lives of over one million gram began. The program has been honored children each year. by the White House under five different adminis- trations, received a Freedoms Foundation works with more than 1,000 hospitals in the Award, and has been praised by members of U.S., the U.K., Australia and Canada. Fulfilling Congress and governors and mayors through- children’s wishes takes many forms: a family trip out the nation. to an amusement park, the gift of a computer or In many communities, Colgate facilities other tangible items, a makeover or a visit with a “adopt” and partner with nearby schools, pro- favorite celebrity. Colgate support has also pro- viding scholarships, grant programs, summer vided funds for the placement in hospitals of internships and volunteers for various activities. 650 “Fun Centers,” self-contained mobile enter- Colgate’s Kansas City plant in the U.S. has part- tainment units with a flat screen TV monitor, nered with students and staff at Central Middle DVD player and Nintendo game cube, as well School for 15 years, providing funding, pro- as PC Pals, similarly self-contained mobile per- gramming, ideas and other support to promote sonal computers offering access to the Internet academic excellence. Every year, Colgate people and a wide array of software. in New York City mentor students at Wadleigh Secondary School. In this program, the students Providing Health and may get assistance applying to college, gain Dental Care in Rural South Africa exposure to the work environment or learn For many people in rural South Africa who oth- more about cultural resources New York has to erwise would have little or no medical or dental offer. In Australia, the Company supports pro- care, the Transnet Foundation’s Phelophepa grams to help those in need among the elderly Healthcare Train is a modern health care facility as well as the young and even constructed a on wheels. Colgate, along with several other park and made other improvements that pro- major corporations and organizations, is a vide a natural setting for people who live near founder-sponsor of the Phelophepa train (pro- the Colgate factory. nounced pay-lo-pay-pa and meaning “good For more than 25 years, Colgate has spon- clean health”) which for over a decade has sored Estrellas Colgate (Colgate Stars) in Mexico reached more than one million people with City, a program that encourages character-build- health care, counseling, eye and dental care, ing in economically disadvantaged children and education. While treatment and screening through an organized track-and-field athletic are key objectives, prevention and education program. In addition to gaining athletic skills, are also fundamental goals. children receive nutritious meals and learn per- Patients receive important instruction on how sonal hygiene habits. They also develop tech- to care for themselves including how to take niques for studying to prepare them to become prescription medications. At every one of nearly future leaders in their communities and gain the 40 yearly stops, local volunteers receive training determination to succeed in whatever they in basic medical and dental issues, which they undertake. The program has been recognized can take to their communities. by a number of organizations including the Sec- Colgate’s participation means that some retariat of Public Education, the Main Directorate 1,000 first- and second-grade students per week of Physical Education, the Association of Athlet- are taught about oral care. Each child is given ics of the Federal District and the Mexican a tube of Colgate toothpaste and a toothbrush Olympic Committee. and taught how to brush correctly. Since 1977, Colgate has built six sports In addition, Colgate has donated dental parks on city-donated land in Colombia. Over equipment and funding for a dental clinic 700,000 children each year use the parks to within the train, including six fully equipped play soccer, basketball, tennis, volleyball and treatment rooms, where cleaning, restorations other sports. Sports programs at the parks are and extractions of teeth are performed. The supported by funding generated from recycling train is staffed by a resident dentist and post- aluminum, paper, plastics, wood and scrap graduate or final-year dental students. In return metal. The Colgate-Palmolive Foundation in for their work, dental students gain valuable ■20 Colombia has also built two schools and six practical experience in community dentistry in a dental centers in needy areas. multicultural setting as they provide an essential In the Philippines, Colgate also creates service to rural communities. The clinic is open opportunities in sports for young athletes in as long as there are patients, and it is not depressed provinces by building a variety of unusual for the clinic to have as many as 90 sports facilities. Through the Colgate Sports patients a day. In the more than five years since Foundation, the Company also sponsors a 20- the dental clinic has been operating, some week track-and-field competition that attracts 71,000 patients have been treated or evaluated. more than 2,000 participants each year. Commitment to Caring in Making Dreams Come True for All Communities Seriously Ill Children While our global focus is on initiatives such as Over the past 13 years, Colgate has donated “Bright Smiles, Bright Futures,” and “Lather Up over $6 million to the Starlight Children’s Foun- for Good Health,” our caring commitment also dation to help grant more than 1,450 wishes to extends to many local programs around the seriously ill children and their families. Starlight world. Through these, Colgate is making an In communities around the globe, Colgate provides health education and treatment to millions of children and their families. Here are some examples.

Supporting Oral China Care Education

Since its start in 1991, Colgate’s “Bright Smiles, South Africa Bright Futures” program has reached hundreds of millions of children in 80 countries with oral health education and treatment.

Teaching Good Handwashing Hygiene

Colgate partners with public health leaders around the world supporting a global initiative to increase aware- ness of the importance of proper handwashing, espe- Providing Dental Care cially for the prevention of transmitting disease. Colgate is a major supporter of Phelophepa, a medical Guatemala and dental facility on wheels that reaches many people in ■21 South Africa who otherwise would have no access to treatment. Through programs like the Colgate Women’s Games and Estrellas Colgate, our Company helps youth Encouraging Young Women and Girls and young women develop a sense of The annual Colgate Women’s personal achievement and self-worth. Games, which involve more than 10,000 girls and women each year, are a celebration of respect, determination and good sportsmanship.

United States

Developing Mexico Tomorrow’s Leaders

The Estrellas Colgate (Colgate Stars) track-and-field program encourages charac- ter-building in economically disadvantaged children. In addition to gaining athletic skills, children develop ■22 techniques to prepare them to become future leaders in their communities. important difference in many communities. In have benefited include schools, libraries and each of the 80 countries where Colgate has other programs. facilities, the Company supports programs rang- In addition to the “Bright Smiles, Bright ing from health initiatives to social services proj- Futures” program, Colgate uses its leadership ects to school programs for underserved and expertise in oral health care to give back children. Through partnerships with nonprofit to communities in a variety of ways, including organizations, Colgate actively works to achieve supporting Dental Health Month in schools, mutual goals focused on health, education and providing scholarships for minority dental leadership development. students and dentists, and supporting the In the same spirit that the Company demon- National Dental Association. strates caring for communities, so too do many To support inner city education, people of Colgate people who generously donate their color and women, Colgate makes donations to resources and time to worthy causes. In the a variety of organizations. For example, receiv- U.S., Colgate’s Matching Gift Program enhances ing Colgate support in the U.S. are organiza- donations from employees to community pro- tions such as the United Negro College Fund, grams; Colgate matches as much as double the the oldest and most successful African-American amount of the employee donation to eligible education assistance organization in the coun- institutions. In recognition and support of impor- try; Aspira, an advocacy group that works tant volunteer efforts by Colgate people, the toward the education and leadership develop- Company in 2003 established the Colgate ment of Latino youth; Catalyst, a nonprofit CARES Grants Program, which gives financial research and advisory organization working to assistance directly to the nonprofit organizations advance women in business; Girls Incorporated, where employees donate their time. The grants a national nonprofit youth organization dedi- focus on areas of community need such as cated to inspiring girls to be “strong, smart and education, recreation, civic and cultural affairs, bold;” and the Financial Women’s Association, health, and social welfare. an organization of financial executives in busi- Wherever there is a need, Colgate and its ness, supporting women through educational people can be found. Colgate’s knowledge programs and networking opportunities as about pets through Hill’s makes its involvement well as scholarship, mentoring and training with “Dogs for the Disabled” in the U.K. a programs. perfect partnership. The program provides the In South Africa, community service programs disabled with specially trained dogs that can are supported by the Colgate Foundation. This carry out everyday tasks such as opening and includes support for public and private educa- closing doors, pulling laundry out of washing tion at every level from day care to medical and machines, and turning lights off and on. dental training. The Foundation also contributes In other markets, Hill’s supports a variety of to centers caring for abandoned children with programs and events related to the humane HIV+/AIDS and those who are physically and treatment of animals. In an alliance with the mentally challenged. Humane Society of the United States, Hill’s pro- Elsewhere in Africa, as well as Latin America vides Science Diet pet food for cats and dogs and Asia, Colgate supports Operation Smile, housed by participating shelters. Hill’s also pro- a not-for-profit volunteer medical services organ- vides food to abused pets in some veterinary ization providing reconstructive surgery and hospitals and sponsors programs to support related health care to needy children and working K-9 units in law enforcement and other young adults. organizations. Through the Hill’s “Service K-9 In India, funds have supported the purchase Coupon Program,” individuals with service and maintenance of hearing aids for children, animals are provided with an annual coupon the Indian Cancer Society and associations that booklet to contribute toward the purchase of work with the blind. In Thailand, funds go any Science Diet or Prescription Diet pet food toward sports facilities and related activities formula. for children. ■23 The Company steps in when a need arises, Active Support for such as during 2002 when severe flooding ContributingContributions to U.S. to Organizations Around the World occurred in eastern Germany and in 2003 when CharitableU.S. Organizations Organizations Communities across the globe benefit from Col- fire destroyed a large area where disadvantaged gate’s charitable contributions. The Company’s people live in the Philippines. During other 2003: $5,497,000 donations go to programs that primarily focus natural disasters, Colgate has donated cleaning 2002: $5,252,000 on education, youth, women and inner cities. products so that people could restore their 2001: $5,327,000 In the U.S. alone, Colgate contributed more homes and businesses, and Colgate people than $5 million during each of the past three have volunteered their time and helping hands. years to more than 150 organizations, including In addition, Hill’s has donated Science Diet food matching an additional $1.5 million donated to pets displaced due to wildfires in Colorado by employees. These figures do not include and California. Colgate’s contributions to the “Bright Smiles, These Colgate-supported programs are just Bright Futures” program. Organizations that a few of the many taking place all around the world. ■ Respect For Our Planet

For Colgate, promoting a healthy environment is an integral part of our commitment to respecting the world around us. Colgate’s approach goes beyond simply complying with environmental regulations. We have made steady progress in using precious resources more efficiently, yet we acknowledge there is still much to be done.

Colgate strives to exceed the minimal require- water, which can collect impurities as it flows ments and we demonstrate this in our goals to over the manufacturing site. improve water use efficiency and energy effi- Different Colgate businesses and individual ciency and reduce wastewater contaminants. sites undertake various types of environmental Additionally, our goal is to eliminate accidental improvement projects to allow each site to spills and releases entirely. These overall goals focus on the area most meaningful to its com- are communicated to manufacturing sites and munity and business. Goals are set globally, other relevant locations for implementation and and all businesses, divisions and sites track and integration into business processes along with report on three major areas: energy efficiency, ■24 the existing business goals that help drive water use efficiency and wastewater contami- Colgate’s improvement initiatives. nants. This ensures consistency and alignment Continuously improving Colgate’s environ- for the Company around key environmental mental performance requires ongoing invest- indicators. ments. Since 1994, Colgate has devoted more The global water and energy data included than $80 million of its capital expenditure in this section represent Colgate’s major manu- budget to build and improve its environmental facturing sites in all geographies and account protection infrastructure such as wastewater for approximately 95% of the Company’s global treatment plants, air pollution controls and manufacturing production. In general, produc- storm water protection systems. For example, tion tonnage is used as the basis for compari- close to $2 million was spent to offer even son in order to account for annual variations of greater protection against spills where railcars product manufactured and shipped. are unloaded at Colgate’s Cambridge, Ohio, To validate this environmental performance plant. In Uruguay, plant improvements were data, Colgate has a rigorous internal process, made to treat wastewater. In France, improve- including periodic training to ensure consisten- ments were made to collect and evaluate storm cy. The Company provides global manufactur- ing and R&D facilities with a common data rainwater for site irrigation, thus reducing collection and reporting system. To further dependence on city water and lowering flow ensure the validity of the data, URS, an inde- to nearby flood-prone streams. pendent environmental consulting firm, was Changes in the manufacturing process such first retained in 2001 to assess and validate as making common formulas, reducing the Colgate’s systems for collecting global number of times cleaning the production lines environmental data. URS evaluated the data- is required between changeovers, and using base for all factories and visited sites account- high pressure and other cleaning techniques ing for approximately 35% of Colgate’s global have all contributed to reducing water usage. manufacturing production. Although there are no formally recognized standards for verifying Energy Efficiency. Over the years, Colgate peo- environmental information, the firm’s work was ple have found many ways to improve energy organized to obtain reasonable assurance of efficiency at manufacturing facilities, and these

Protecting Our Resources

Colgate places high priority on protecting the earth’s nat- the accuracy and completeness of Colgate’s efforts to conserve electricity, natural gas, fuel ural resources and is continu- environmental data. URS concluded that oils and coal will continue. During the 1998 to ing to find ways to improve Colgate has a comprehensive process for 2003 period, energy consumption per ton of processes for a cleaner, environmental data collection and cited some product for these four energy sources pur- healthier world. areas where improvements could be made. chased by Colgate has decreased by over 9%. Since the assessment in 2001, Colgate has Furthermore, closing some older, less effi- retained URS to perform data validation on cient plants and consolidating manufacturing an annual basis. at more efficient state-of-the-art facilities has helped reduce energy consumption as has Colgate’s Progress on Reducing Colgate’s shift from higher energy intensive ■25 Environmental Impacts powder soap products to liquids, which are more energy efficient to produce. Water Use Efficiency. One of our most pre- cious natural resources, water is an integral Wastewater. Like all companies, Colgate part of Colgate’s product formulations and generates wastewater that is returned to the manufacturing operations. The Company environment after any necessary treatment. strives to use water most efficiently. From 1998 Our factories focus on reducing the waste of to 2003, Colgate reduced the amount of water raw materials that go into wastewater, helping required to produce a ton of product by 19%. reduce costs and improving environmental Colgate factories around the world have performance. undertaken numerous initiatives to increase Colgate has begun an improved data collec- the efficiency of water use. tion process for measuring and tracking the For example, Colgate’s plant in Gebze, amount of raw materials entering our facilities’ Turkïye, redesigned its storm water collection wastewater systems prior to treatment. system to allow for the capture and reuse of Meanwhile, Colgate’s efforts so far have been acknowledged by local communities. For waste, then recycling waste and finally safely example, Colgate has been recognized for the disposing of the remainder. past four years by the Kansas Water Environ- Educating Colgate people about the bene- ment Association. The group has presented the fits of waste reduction is also important. These Company’s Kansas City soap plant with awards efforts include training, improving communica- citing the plant’s complete and consistent com- tion, and reward and recognition programs. As pliance with the agency’s industrial wastewater a result, Colgate’s plant in Kenya has reduced pretreatment requirements. the amount of scrap and material losses by approximately 31% for toothpaste tubes and Waste. In the area of waste, efforts are being 48% for toothpaste cartons. undertaken to reuse and recycle materials in In Salford, U.K., an aggressive hazardous addition to changing processes so that there is waste reduction program has been developed less waste generated. This is in keeping with to substantially reduce the amount of haz- Colgate’s commitment to the hierarchy of waste ardous waste available for disposal. management, which starts with eliminating waste, followed by reducing and reusing

Netherlands Monitoring Wastewater

Hill’s Pet Nutrition employees con- duct periodic water testing near the pet food manufacturing facility in the Netherlands.

Using Water More Efficiently

From 1998 to 2003, we reduced the amount of water required to pro- duce a ton of product by 19%.

Water Use Efficiency 2.5

2.0

■26 1.5

1.0 /ton of product 3 m

0.5

0 1998 1999 2000 2001 2002 2003

(Total water minus water in product) Under the U.S. Superfund Amendments and Colgate facility per year, compared with an Reauthorization Act (SARA), corporations must overall average of 2,146 tons of hazardous report annually to the Environmental Protection waste per facility per year among all reporting Agency (EPA) the quantity of EPA-defined toxic generators in the U.S. in 2001. chemicals released into the environment. Releases are defined broadly under SARA Packaging. Packaging for our products must Section 313 to include the off-site transfer of meet a number of objectives including minimal chemicals in addition to air emissions and environmental impact. For more than a wastewater discharges. From 1998 to 2002, decade, Colgate has placed a significant focus Colgate’s total U.S. SARA 313 releases averaged on eliminating excess packaging and making approximately 2.67 tons per year. packaging materials compatible with communi- Colgate’s U.S. hazardous waste, as defined ty recycling programs. A major innovation that by the Resource Conservation & Recovery Act Colgate has helped lead has been the introduc- (RCRA) that was transported off-site has aver- tion of concentrated products. With a greater aged 62.8 tons per year from 1998 to 2002. concentration of active ingredients than tradi- This is equivalent to an average of 4.5 tons per tional products, these reduce the amount of

Managing Energy Consumption

In Colgate’s three manufacturing plants in Brazil, energy usage was cut by 21% in 2001 due to a concerted effort that included everything from reducing excessive illumina- tion in conference rooms and walkways to the automation of large air compressors and chillers.

Improving Energy Use Efficiency

From 1998 to 2003, energy use per ton of product has decreased by over 9%.

Energy Use Efficiency 0.5

0.4

0.3 ■27

0.2 kWh x 1000/ton of product

0.1

0 1998 1999 2000 2001 2002 2003

(Energy refers to purchased electricity, natural gas, fuel oil and coal) Brazil Colgate continues to reduce product a consumer needs for equivalent performance. Concentrated products use less the amount of material in packaging material because they fit into small- packaging around the globe. er packages. In North America, a 15% reduction in packaging material has been achieved because of the conversion to PET plastic to accommodate community recycling programs. These environmental enhancements have been further supplemented by using recycled United States PET in the Palmolive and Ajax bottles at a 25% Redesigned caps to 50% level, depending on the available to use 30% less plastic. supply in the recycled resin market. In the past, our progress in reducing pack- aging materials has been tracked locally by Colgate locations. We began collecting pack- aging data globally in 2002 and anticipate including packaging data in subsequent reports. China Air Emissions. Many Colgate subsidiaries have Redesigned to use 21% less plastic. collected energy and other air emissions data Mexico in compliance with local regulatory require- Redesigned to use ments for several years. In 2002, we began 14% less plastic. to collect more detailed energy and fuel source data that will allow us to provide carbon dioxide (CO2) information for our global manu- facturing sites. This information will also be included in subsequent reports.

Climate Change The most significant greenhouse gas emission associated with Colgate’s manufacturing opera- tions is CO2. This comes from the production of steam and hot water using fuel oil and natural gas and from the use of electricity purchased from the local electric utilities. Colgate has improved energy efficiency by over 9% from 1998 to 2003. As a result of this improvement, CO2 emissions per ton of product produced also declined. Colgate has not taken a formal position on the issue of climate change or the associated points of view expressed by the scientific community, governments and environmental activists. Colgate believes its role in this issue is to operate factories as efficiently as possible in a manner that will result in benefits to the environment and to the business. ■28 Complying with Regulations Overall, Colgate has a strong record of meeting legal requirements everywhere the Company does business. Occasionally, situa- tions arise in which government inspectors determine that improvements should be made. The table at right summarizes reported U.S. information for 1998 to 2002. Corrective actions are taken when an event does not comply with regulations. When an Europe incident does occur, Colgate has established Redesigned to use reporting procedures to inform senior manage- 12% less plastic. ment and other appropriate officials within 24 hours. Furthermore, Colgate uses these experi- ences to improve practices and takes advan- tage of all communication tools for educational workers at all levels throughout the facility. purposes, including an Environmental, Reports are issued in approximately six weeks, Occupational Health & Safety (EOHS) website and facilities develop a follow-up action plan and periodic meetings of the EOHS teams in within 30 days of receiving the report. all regions. Other activities are conducted Periodically, an independent review of the throughout the year to raise awareness of the audit program is conducted. In the most recent importance of a clean environment among all review, conducted in 2000 by Environmental employees. For example, in November 2002, Resources Management, Inc., an independent Colgate Mexico organized Environment Week consulting firm, Colgate’s audit program was involving seminars, exhibits and best practices, found to be generally consistent with estab- and for the fourth consecutive year, Colgate lished criteria and in some cases exceeded Mexico was recognized as “Clean Industry expectations. Certified” from Mexico’s Federal Attorney for Environmental Protection. Concern for Animal Welfare Colgate’s goal is to meet safety requirements Conducting Environmental, whenever possible through the use of existing Occupational Health & Safety Audits data or tests that don’t put humans or animals Colgate’s EOHS policy standards define per- at risk. Today at Colgate, animal testing is limit- formance expectations for all worldwide opera- ed and conducted only after all other options tions. These standards consist of extensive tech- have been exhausted. More than 98% of all nical components and also require an active internal requests for product safety substantia- EOHS management system at each site. tion are met using non-animal alternatives and Colgate conducts training on the standards, available databases. In 1999, Colgate declared assigns an individual at each location to be a voluntary moratorium on all animal testing responsible for EOHS, and audits Company of Personal Care Products designed for adults. facilities against compliance with local regula- For other product categories, there are tions as well as Colgate standards. conditions and regulations in some countries which require that animal testing be conduct- ed to establish that a product is safe and to Tracking Our Environmental Records determine labeling instructions as a condition of sale. Additionally, there are circumstances 1998 1999 2000 2001 2002 where safety demonstrations are necessary and no scientifically recognized alternative to animal Number of Environmental Notices testing exists. Except for our pet nutrition test- of Violations (U.S. Facilities) 3 3 2 7 5 ing, all required animal testing is conducted at outside laboratories under Colgate supervision Fines Paid $1,800 $39,500 $0 $5,000 $0 using a minimum number of animals. Since 1982, Colgate has undertaken a The majority of the Notices of Violations (NOVs) were The training programs include technical broad program dedicated to advancing scientif- for minor wastewater issues. courses on a broad spectrum of safety and ically acceptable and properly validated alterna- The penalty paid in 1999 environmental subjects as well as more target- tives. This is designed to eliminate the need to was for two NOVs at the ed training on specific issues such as enzymes carry out any research with animals. Colgate is same facility. They were and ergonomics. working with other companies, governments administrative in nature and Colgate maintains an active worldwide and associations that share the same goal of did not have any environ- EOHS audit program consisting of approxi- completely eliminating animal testing. As part mental impact. The situation mately 20 to 25 audits a year for manufactur- of Colgate’s commitment to this goal, the has been corrected and has ing facilities, technology centers, sales and Company also brings scientifically valid alterna- not recurred in subsequent administrative offices, and other facilities tives to the attention of government regulators years. deemed appropriate. Starting with environ- to urge their acceptance. mental audits in 1991, Colgate has expanded At Hill’s, we’ve built a reputation as a com- ■29 the audit program to include OH&S audits and pany with the highest ethical standards. Our chlorine absorption audits. Audits also identify mission is to help enrich and lengthen the risks, hazards, unsafe behaviors and opportuni- special relationships between people and their ties to improve. pets. We believe that good science and com- Each site is evaluated by global inspectors passionate animal care are inseparable. We do approximately every three years. The program not tolerate the inhumane treatment of dogs is run under the direction of the corporate and cats for any reason. Therefore, all studies legal department and corporate EOHS. Audits supported by Hill’s must comply with policies to are staffed by Colgate EOHS professionals from ensure exceptional and humane animal care. locations independent of the site being audit- Animal studies, whether conducted at the Hill’s ed. Each audit typically involves a team of four Nutrition Center or at external facilities such as to six auditors. The audit includes an assess- veterinary schools or universities, are governed ment of management systems; a review of by rules to ensure dogs and cats are treated records; observation of physical conditions, ethically. Our full animal welfare policy is acces- equipment and personnel; and interviews with sible at www.hillspet.com. ■ Respect For Tomorrow

In this first Global Values Report, we have assembled information demonstrating the Company’s financial achievements as well as progress in protecting the environment and the health and safety of employees, customers and the communities where we live and work. Yet we know that there is still much to be done, and the Company is committed to continuously improving its performance.

Colgate has built a strong foundation and laid to grow Colgate’s business by excelling in areas the framework for the future, following a where we already do business and also where sound strategy designed to sustain profitable logical, synergistic expansion opportunities growth for many years to come. In the spirit exist. At the same time, we will continue to of continuous improvement, we are dedicated drive for excellence through innovation and to do what we do — better, smarter and faster execution. — to make a brighter future for all people Often when corporations pursue innovation touched by the Company, including employees it is assumed they are referring only to new and their families, business partners, communi- products. At Colgate we think innovation is 30 ties, customers, shareholders and other much more. We seek to create a culture where stakeholders. Colgate people around the world have free- Our values of Caring, Global Teamwork and dom to innovate in whatever they do. We are Continuous Improvement are well developed striving to weave this “innovation culture” into as demonstrated by examples in this report. the entire fabric of the Company. While continuing to embrace them, we see great opportunity going forward. Respect For People We are continuing to expand our global Colgate is committed to continuously improv- integration software SAP, to increase business ing our programs to respect Colgate people, effectiveness and business success. Through shareholders, consumers and other stakehold- these initiatives, we will achieve even higher ers. We recognize that there is always room for levels of productivity and performance and improvement in any endeavor. generate more information that can be used to identify and analyze improvement Colgate People. As we aim to get better every opportunities. day in everything we do, we are committed to We will continue to look for opportunities making the workplace somewhere people know they are respected and valued. We will We encourage shareholders and other ensure that all Colgate people, regardless of stakeholders to raise important issues so that where they are in the world, earn wages that we can address them. As we have in the past, will allow them to meet their basic needs. we will also continue to meet with nongovern- We understand the advantages of a multi- mental organizations and advocacy groups cultural workplace, and we will continue our on issues of importance. We recognize their efforts to create an environment where diversity expertise and are open to a productive dia- is valued. As a global company, Colgate will logue that can and has affected our business continue to provide equal opportunities for positively. everyone everywhere, within widely diverse With the knowledge and full support of the cultural contexts. Colgate Board of Directors, the Company will We will continue to focus resources and continue to keep its focus on corporate gover-

efforts on education and expand training nance and ethics. We have a global Code of because these endeavors enhance and deve- Conduct that addresses the role of the Board lop Colgate people, while meeting the ever- of Directors, the role of internal and external expanding needs of the Company. In the area auditors, and the criticality of reporting any of employee safety, we remain committed to a suspected financial improprieties. Meanwhile, “goal of zero”— zero fatalities, zero life-altering efforts will be made to ensure that all suppliers events, and zero lost workday and recordable and contractors adhere to the Code of incidents — and we continue to expand Conduct, which sets the standards of ethics for programs to address this important issue. the way Colgate does business around the We continue to expand programs that keep world. We will continue to look for new ways 31 Colgate people and their families healthy. For to implement compliance initiatives at our own example, we are committed to initiating pro- facilities and to ensure compliance by our busi- grams in Asia to help prevent the spread of ness partners, suppliers and other contractors. HIV+/AIDS and offer treatment similar to what Colgate has established in Africa. Consumers. At Colgate, we are extremely proud of the high quality, consistently superior Shareholders. Colgate recognizes its responsi- products we produce. Our commitment to bility to those who invest in the Company and quality is vital to all we do. Committed to mar- will continue to focus on profitable growth in keting products that offer excellent perform- order to provide a good return to shareholders. ance and meet or exceed all safety standards, We believe, as many others do, companies that Colgate will continue to take all precautions value people (employees and communities), to preserve the trust consumers have in the our planet (the environment) and performance Company and its products. While we continue (sound financial results), will be successful in to anticipate consumer needs and preferences, serving shareholders well in the long term. we will also continue to value consumer con- cerns and listen to them carefully. This is the production tonnage. We will focus primarily on best way to benefit our consumers, sharehold- increasing our efficiency in water use and ener- ers, Colgate people and the communities in gy use, work toward reducing wastewater con- which we operate. tamination, and increase our efforts in reducing the amount of material used in packaging our Respect For Communities products. At the same time, we will look for Colgate remains strongly committed to giving opportunities in other areas of our business to back to the communities where Colgate people develop new ways of doing things that are and partners work and live, and where the environmentally sound. Company sells its products. In addition to con- To be able to assess progress, Colgate tinuing to contribute corporate resources, we will record information on releases into the will continue to encourage Colgate people to environment (air, water and land) as we aim donate and volunteer their time helping others. to decrease the overall impact per ton of prod- Our primary focus will remain on working with uct produced. As to climate change, even organizations that improve, enhance and serve though Colgate’s emissions are negligible, the the educational needs of youth, women and Company recognizes that this important issue people of color. We will continue listening to must be addressed. consumers and other stakeholders to under- In the area of animal testing, Colgate stand how to become the best global citizen continues to work with industry groups and we can be. with governments and outside organizations We are proud of our work in improving the to find alternatives so that animal testing can oral education, dental health and handwash- be eliminated. ing practices of millions of people everywhere because good hygiene and dental care lead to Respect For Tomorrow good medical care, which in turn plays a role This report is just the beginning of Colgate’s in building self-esteem and strong communi- long-term efforts to communicate our commit- ties. We know that many more people still ment to corporate social responsibility. To meas- need to be reached, and we will continuously ure progress, Colgate will refine its data collec- expand these strong programs. tion and systems to facilitate reporting informa- We also know that sports programs not only tion important to our stakeholders. We will produce fine athletes but also can encourage expand our audit programs and periodically education and character-building, the reason report on the results. We will continue to for our interest and continuing support. benchmark against peer companies to gather We believe one of the responsibilities of a best practices on sustainability efforts and we global company such as Colgate is the ability to will work to establish key performance indica- transfer know-how, capital and best practices tors in relevant areas. Our goal is to continue to developing countries. Colgate prides itself on to expand tracking and reporting on social and the broad geographic reach of the Company’s environmental indicators to demonstrate our business and is committed to furthering the commitment to good corporate citizenship. positive aspects associated with globalization by Through leadership and innovation, Colgate making sure Colgate’s resources contribute to will both grow its business and become an the economic development of communities even better corporate citizen. From a business where we do business. This includes making perspective, we will continue to lead in areas products available at an affordable cost, creat- we believe are important, including growing ing jobs where possible, improving education market share and the markets in which we and skills training, and making charitable contri- compete. To assure that Colgate can benefit butions locally. from individuals with superior leadership abili- ties, we will focus on leadership training includ- Respect For Our Planet ing systems involving people development and ■32 As part of our ongoing commitment to respect- organizational approaches that encourage and ing the environment, Colgate plans to refine shape future leaders. Our strong commitment and communicate global environmental goals to the environment and social well-being for to address key areas. Additionally, we will all people will become more evident day by report on the following: day as we put into place programs that reflect ■ Significant spills & accidental releases, if any the value we place on diversity in its broadest ■ Packaging reductions sense, not only race and gender, but also ■ Water use efficiency background and culture. With these aspirations ■ Energy use efficiency and initiatives, Colgate will achieve its goal of ■ Wastewater contaminants and treatment being the best truly global consumer products company. Every Colgate operation will establish targets to do its part in contributing toward meeting We welcome your comments and suggestions. global goals. To take into account the Feel free to contact us using the information Company’s business growth over time, the on the inside of the back cover. ■ environmental data will be normalized by Vietnam Kenya

Colgate’s World of Respect

Respect is the cornerstone of Colgate’s global success. As a $9.9 billion consumer products company, we serve people around the world with well-known brands that make their lives healthier and more enjoyable. Wherever we do business, we work with respect for each other, our business partners, our environment, communities and other interested stakeholders. page ■2

Respect For We show our respect for each other, shareholders, consumers, customers and suppliers in all that we do. Our initiatives and policies reinforce our commitment to People these important stakeholders. page ■6 Contact Information Other Colgate Publications Available

Business Practices & ■ Advertising Placement Policy Statement Corporate Social Responsibility ■ Annual Report Respect For Upholding our global value of caring, we support community programs ranging ■ Annual Report of Laboratory Research from promoting good health and hygiene to encouraging education for children Colgate-Palmolive Company with Animals Communities and adults. page ■18 300 Park Avenue ■ Colgate’s “Best Place To Work” Program New York, NY 10022 USA ■ The Colgate-Palmolive Code of Conduct Phone: 212-310-3710 ■ The Colgate-Palmolive Environmental, Fax: 212-310-3745 Occupational Health & Safety Policy Respect For For Colgate, respecting the environment is an integral part of respecting the world Email: [email protected] Statement around us. We have made steady progress in using precious resources more efficiently, ■ The Colgate-Palmolive Product Safety Our Planet yet we acknowledge there is still much to be done. page ■24 We welcome your comments. Research Policy Statement Our Global Values Report can be found ■ The Colgate-Palmolive Quality Policy on the Internet at www.colgate.com Statement ■ The Colgate-Palmolive Product Guide Respect For Colgate strives to fulfill its responsibilities to people, communities and our planet as for Vegetarians a member of the global community. We recognize that we must continuously improve ■ Colgate Women’s Games Programs Tomorrow our efforts. page ■30 ■ Colgate’s Youth for America Community Service Competition ■ The Chairman’s “You Can Make A Difference” Employee Recognition Program Printed entirely on recycled paper. © 2004 Colgate-Palmolive Company Design by Robert Webster Inc. (RWI), www.rwidesign.com Printing by Quebecor World Acme. 300 Park Avenue New York, NY 10022-7499 Colgate: Respecting TheWorld Around Us

Living Our Living Our Values For Values For

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