P&G has been very effectively implemented the various ingredients of corporate governance which are very much in accordance with the recommendations of the combined code on best practice. The governance factor begins from the top level i.e., the board. The Procter & Gamble Company Board follows the principle of the corporate governance guidelines which states that the company is headed by the board and this effective board as a whole is responsible for the success of the company.
The set of purposes for which the board has been established are:
To approve and monitor various critical business and the corresponding financial strategies of the company thereby assessing every major risks which the Company might face and the ways through which it can be mitigated.
To oversee processes that have been designed to ensure that the Company; its employees etc are very much functioning under the law of the land as well as the applicable laws and regulations and the Company's conduct manual that is applicable equally at all places.
The company's power structure has been clearly defined along with the responsibilities of the head of the company is in between the functioning of the board and the executives withholding the responsibilities of the various businesses, departments and projects of the company. The decision making is a joint work with none of the individual having superior powers of decision.
The appointment of new directors to the board is being done after a formal, rigorous and transparent procedure. ...