Speech given to 125+ business executives in Frankfurt, Germany sponsored by the BYU Management Society

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April 23, 2009
R/L: 12 months
“Values in Today’s Economy and Society”
Jeff D. Davis
May 9, 2009
BYU Management Society
Europe Leadership Conference
Slide 1
It is an honor to be here tonight and to talk on such an important topic—one for which I have passion and
personal commitment.
When I graduated from the University of Utah in 1986 as a proud “Runnin’ Ute,” I never imagined I would be
speaking to a group of “Zoobies” from the BYU Management Society. At that time, I was quite caught up in
our unique rivalry among universities. However, with the passing of time and the influence of my wife who
attended BYU, I have softened my position considerably on the matter—except during football season!
Before I make my remarks, perhaps a little about my background: I’ve worked 23 years in P&G in 5 different
countries and in 6 different business units within P&G. I have had the chance to work in developing and
developed countries. One of my most unique assignments as a leader and for our family was the opening up
of Eastern Europe after the fall of the Soviet Union where I started up P&G’s operations in Slovakia and in the
Czech Republic in the early 90’s. I have had the chance to work in consumer and professional businesses in
P&G spending a decade creating our Pharmaceutical businesses in Germany, Canada and the U.S. I share
this background with you as it is these experiences, together with my spiritual beliefs, that have truly shaped
my values and sensitized me to the values of other cultures, countries and peoples. I hope my remarks tonight
provide interesting insights you may not have had but more importantly that they provoke you personally to
action in whatever role you play within your life.
Slide 2
Agenda –
• P&G’s Purpose, Values & Principles
• What shapes values in an economy or society?
• Personal Leadership: what is your role to shape values in our economy and society?
Slide 3
William Procter and James Gamble might never have met had they not married sisters – Olivia and Elizabeth
Norris – whose father convinced his new sons-in-law to become business partners. In 1837, a humble but
bold new enterprise called Procter & Gamble was born. What began as a small, family-operated soap and
candle company grew and thrived, inspired by P&G’s Purpose of providing products and services of superior
quality and value. They were Leaders and these “Leaders left a Legacy.”
Slide 4

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Who are we today?
• Our net sales exceed $80 billion and our brands touch the lives of people around the world more than
3 billion times every day.
• Our 130,000 employees are proud to have built the #1 or #2 brand in more than 20 different categories
• I suspect that you’re among the many households that purchased a P&G product last year
Slide 5
I’m going to guess that many of you know us as the company that makes these powerhouse brands like Ariel,
Pringles, Pampers, Gillette and Wella. These are just 5 of our 24 billion-dollar brands.
Slide 6
Even more impressive is the wide range of some of the world’s best known brands in different business units.
Slide 7
P&G prides itself for being in touch with the world’s consumers. For us this is about listening to and
understanding their needs – even the needs they can’t articulate – and then providing them with new products
that make everyday life just a little better. It’s also about the men and women at P&G…
We are known for our consumer understanding, brand-building, our leadership, our scale, our innovation and
Go-to-Market capability but if you really want to get at what drives our company’s success, the place to look is
our people. Our people are deeply committed to our Purpose, Values and Principles. It is this commitment to
doing what’s right that unites us.
One of the earlier CEO’s of the company often made the remark that you could take away our buildings, our
plants—even our brands—and all of our assets. But if you leave us our people, we can rebuild it all in a
decade.
Slide 8
The power of P&G’s Purpose is the one factor above all others that has contributed to our Company’s long
heritage of growth. We care about touching people in ways that make their everyday lives a little better. We
care for babies and pets. We make everyday chores like laundry easier. We help literally billions of people
around the world look and feel better every day.
Our Purpose is an essential part of who we are, who we have been, and who we will be for generations to
come.
Slide 9
P&G celebrated our 170th anniversary a few years ago, and upon our Purpose of improving consumers’ lives.
There are fewer than 50 member nations in the U.N. that have existed as long as P&G. Only three other
Fortune 50 companies have been in business as long as P&G.

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Slide 10
And while there is perhaps nothing unique about our purpose, values and principles; what is unique is how
they have been ingrained in generations of P&Gers and sustained the company for so long. Read Slide: Our
Values.
“P&G is about its people and the values by which we live. We attract and recruit the finest people in the world.
We build our organization from within, promoting and rewarding people without regard to any difference
unrelated to performance. We act on the conviction that the men and women of Procter & Gamble will always
be our most important asset.”
Slide 11-23
While it is not so important to understand the actual content of these next slides, I want to give you a flavour
of what the content is behind our purpose, values and principles. Our PVP’s, as they are known to P&G’ers.
Read from slides
Slide 24
As we marked the important milestone in P&G’s history a few years ago of 170 years, we renewed the
Company’s Purpose, Values and Principles – adding an important new element to P&G’s Purpose: a
commitment to fulfilling P&G’s Purpose “now and for generations to come.”
In a Company where Purpose, Values and Principles matter as much as it does at P&G, any changes to the
way we define our Purpose are rare and are carefully considered. We made this change – which explicitly
states our commitment to sustainable growth and to Sustainability – because it is consistent with our focus on
improving consumers’ lives and because it creates an aspiration that inspires P&G’ers to lead and to innovate
in every part of our business.
Slide 25
I’ve thought a lot about why P&G has prospered and thrived for such a long time, and I think it boils down to
five things cited by our current CEO, A.G. Lafley: (source: AG Lafley speech on PVP renewal)
1) We’re Purpose-driven and Values-led. Our Purpose is to improve consumers’ lives in small but
meaningful ways every day. Our values are integrity and trust, leadership and ownership, passion for service
and winning. P&G’s purpose and values are not unique, not really remarkable, but they are powerful because
they’ve been handed down from generation to generation of P&G people.
2) We lead change. We’ve been willing to change anything and everything as long as we’ve preserved the
Company’s core Purpose and Values. As a result, we’ve been pioneers in the development of innovative
strategies, technologies, advertising, organizational structures, business models, and more.

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3) We lead innovation. This is P&G’s lifeblood and it’s at the heart of our business model. Virtually every
P&G billion-dollar brand was launched with a product discontinuity: Tide was the first heavy-duty synthetic
laundry detergent. Crest was the first fluoride toothpaste proven to prevent cavities. Pampers was the first
successful disposable diaper. Every P&G brand that has sustained growth and leadership over time has
done so with a steady stream of consumer-meaningful innovations that define and re-define consumer
expectations.
4) We develop leaders. P&G is recognized as one of the best companies for leaders. Nothing we do is
more important to P&G’s long-term growth. You see, we are an entry level, promote from within culture. That
means we must hire the best people, train and develop them well so they are ready to take over leadership
roles over time and perpetuate the business results, the culture and “Leave a Legacy.” In recent years, we’ve
placed particular importance on ensuring the diversity of P&G leaders at every level of the Company. This
diversity results in different thinking, better choices, more innovation, and more productivity. It’s a hallmark of
our organization and the way we develop the Company’s future leadership.
5) We’re committed to long-term sustainable growth and Sustainability. We’ve sustained P&G’s growth
for so long because P&G people have always been focused on doing the right thing for the long-term health
of our business.
Slide 26
With that short overview of P&G and our story, let’s return to our question: “What shapes our values in an
economy or a society?
I don’t think that anyone would take issue with my premise that values in today’s economy and society are
shaped by a number of factors: business ethics, media, church and religious organizations, schools and
universities, and governments to mention just a few. And yes, as I hope I’ve convinced you, companies do
have a role and impact beyond their borders. But that for me is too broad.
For me, that gives us all an excuse to blame our current situation on the “lack of values in society” or the
“greed on Wall Street” or “corrupt governments,” or “companies with no business ethics,” etc. For me, it is far
more fundamental: It boils down to: What is my and your role to shape values in our economy and society?
What is my role as a father or mother, a church or civic leader or a business leader of any size company or an
employee?
Slide 27
More than a decade ago, I began observing leaders in my company and others, leaders in our church, and
reading books on leadership. (Covey: 7 Habits; 8th Habit; Collins: Good to Great; Build to Last; Kotter:
Leading Change) I began to pull together thoughts and principles which expressed what I believe Personal
Leadership is. I entitled it: “Personal Leadership Delivers Results.” If I were to go around the room today and
ask what you think Leadership is, we would likely have as many definitions as we have people in the room. I

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realized that there is no right or wrong answer to defining leadership. However, it is critical for you and me to
exchange our views on leadership and test each others experience to enable progress in a business
enterprise or any other organization. For it is the understanding among people of an organization what
Leadership means that helps translate it to action. I observed that true “Leaders Leave a Legacy” and are
accountable for their actions.
As an example, I articulate in my first principle on why “Personal Leadership Delivers Results,” the clear
statement: “YOU are the company.” Taking that further: “YOU are Society.” In other words, all that is going
on around us is not something outside of ourselves. We can control parts of it, we can decide how we react
to all of it and we can influence it for the better.
Slide 28
We are not products of chance or pre-determined by outside influences. We have a choice. Read slide.
• quot;Youquot; are the Company
- everyone wants to change the world but no one wants to change him/herself
- operate as an owner; if something is not right, take the personal leadership to get it changed
Slide 29
Stephen Covey has a wonderful principle that I have adapted as my own and while difficult at times to execute
properaly as a father, as a leader in church and business and as a member of our society, it is absolutely
necessary to eventually master. He says:
“Between stimulus and response, there is a space. In that space lies our freedom and power to choose our
response. In those choices lie our growth and our happiness.”
There is within this statement an answer to the age old question: Are leaders born or made? Covey’s premise
is that leaders are neither born nor made—meaning environmentally trained and nurtured. Rather, they are
SELF MADE through chosen responses, and if they choose based on principles and develop increasingly
greater discipline, their freedom to choose increases. Thus, leadership is a function of choices.
The power of choice means that we are NOT merely a product of our past or of our genes; we are NOT a
product of how other people treat us. They unquestionably influence us, but they do NOT determine us. We
are self-determining through our choices (Stephen R. Covey: The 8th Habit).
Slide 30
As we think about “Values in Today’s Economy and Society,” we are witnesses to one of the most significant
shifts in human history. Peter Drucker, one of the greatest management thinkers of our time, puts it this way:
“In a few hundred years, when the history of our time is written from a long-term perspective, it is likely that the
most important event those historians will see is not technology, nor the Internet, not e-commerce. It is an

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unprecedented change in the human condition. For the first time—literally—substantial and rapidly growing
numbers of people have choices. For the first time, they will have to manage themselves. And society is
totally unprepared for it.”
Slide 31
In Covey’s book: “The 8th Habit,” he talks about the most important thing to do in your life is to “Find Your
Voice” and then “Inspire others to find theirs.” That is what I like about this quote by Goethe. We can and
must shape the values of society and our economy. We do it by being a role model ourselves. We do it by
helping people become what they are capable of becoming.
quot;If we take people as we find them, we may make them worse, but if we treat them as though they are what
they should be, we help them to become what they are capable of becoming.quot;
-- Goethe --
Slide 32
It truly is about finding our own voice and then inspiring others to find theirs. In Jim Collins book “Good to
Great.” which he wrote after his best-selling book “Build to Last,” he drew the clear link on his final page of the
book to what really matters in seeking satisfaction and how to obtain it. It has everything to do with what we
have discussed tonight:
quot;When all these pictures come together, not only does your work move toward greatness, but so does your
life. For, in the end, it is impossible to have a great life unless it is a meaningful life. And it is very difficult to
have a meaningful life without meaningful work. Perhaps, then, you might gain that rare tranquility that comes
from knowing that you've had a hand in creating something of intrinsic excellence that makes a contribution.
Indeed, you might even gain that deepest of all satisfactions: knowing that your short time here on this earth
has been well spent, and that it mattered.”
-- Jim Collins – Good to Great --
Slide 33
My friends, we all have a responsibility in whatever role we play in life to create the values in society we
desire. In closing, I would like to end my remarks with a quote from Jim Collins in his book Build to Last. He
said,
quot;William Procter and James Gamble's most significant contribution was not hog fat soap, lamp oils or candles,
for these would eventually become obsolete; their primary contribution was something that can never become
obsolete: a highly adaptable organization with a ‘spiritual inheritance’ of deeply ingrained core values
transferred to generation after generation of P&G people.quot;
It is my sincere hope that we as citizens living in society, leaders working in these difficult economic times and
as fathers and mothers; that we may adapt to the changes in our lives, that we may realize what is most
important and that we will act as though society is us…WE are the society. Personal Leadership and the
recognition of our ability to shape first ourselves and then the broader society is good for society, good for

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business and a sustaining prospect for the future generations to come. “Leaders Leave a Legacy.” Thank
you for your attention.
Slide 34
“Touching Lives, Improving Life. P&G”