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1. Introduction and Mission Values of 3
P&G
2. Triple Bottom Line Concept in case 5
of P&G:
ECONOMICAL aspect
3. ENVIRONMENTAL aspect 8
4. SOCIAL aspect 11
Procter & Gamble Co. is a Fortune 500, American global corporation it is based in
Cincinnati, Ohio, manufactures a wide range of consumer goods. As of 2008, P&G is the 23rd
largest US Company by revenue and it is 14th largest by profit. It is 10th in Fortune's Most
Admired Companies list as of 2007. P&G is credited with many business innovations including
brand management, the soap opera, and Connect & Develop innovation. (Responsibility)
According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than
any other company; the $2.62 billion it spent is almost twice as much as General Motors, the
next company on the Nielsen list. P&G was named 2008 Advertiser of the Year by Cannes
International Advertising Festival. Procter & Gamble has expanded dramatically throughout its
history, but its headquarters still remains in Cincinnati.
P&G's dominance in many categories of consumer products makes its brand management
decisions worthy of study. For example, P&G's corporate strategists must account for the
likelihood of one of their products cannibalizing the sales of another. (Nielsen)
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Its mission is To provide branded products and services of superior quality and value that
improve the lives of the world's consumers, now and for generations to come.
P&G is 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. (http://www.pgfamilyhouse.com)
LEADERSHIP:
ͻ We are all leaders in our area of responsibility, with a deep commitment to deliver
leadership results.
ͻ We have a clear vision of where we are going.
ͻ We focus our resources to achieve leadership objectives and strategies.
ͻ We develop the capability to deliver our strategies and eliminate organizational
barriers.
OWNERSHIP:
ͻ We accept personal accountability to meet our business needs, improve our
systems, and help others improve their effectiveness.
ͻ We all act like owners, treating the Company's assets as our own and behaving with
the Company's long-term success in mind.
INTEGRITY
ͻ We always try to do the right thing.
ͻ We are honest and straightforward with each other.
ͻ We operate within the letter and spirit of the law.
ͻ We uphold the values and principles of P&G in every action and decision.
ͻ We are data-based and intellectually honest in advocating proposals, including
recognizing risks.
PASSION FOR WINNING
ͻ We are determined to be the best at doing what matters most.
ͻ We have a healthy dissatisfaction with the status quo.
ͻ We have a compelling desire to improve and to win in the marketplace.
TRUST
ͻ We respect our P&G colleagues, customers, and consumers, and treat them as we
want to be treated.
ͻ We have confidence in each other's capabilities and intentions.
ͻ We believe that people work best when there is a foundation of trust.
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Effective from July 1, 2007, the company's operations are categorized into 3 "Global
Business Units" with each Global Business Unit divided into "Business Segments," according to
the company's June 2007 earnings release.
1. Beauty Care
(| Beauty segment
(| Grooming segment
2. Household Care
(| Baby Care and Family Care segment
(| Fabric Care and Home Care segment
3. Health & Well-Being
(| Health Care
(| Snacks, Coffee and Pet Care
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Current members of the board of directors of Procter & Gamble are: Norman Augustine,
Bruce Byrnes, Scott D. Cook, Joseph Gorman, A.G. Lafley, Charles R. Lee, Lynn M. Martin, W.
James McNerney, Jr., Johnathan Rodgers, John F. Smith, Jr., Ralph Snyderman, Richard
Dearlove, Margaret Whitman, and Brian Bowns. Norman Augustine will be retiring from the
Board following the Company's October 2007 meeting[9].
In 2007, the P&G's Canadian division was named one of Canada's Top 100 Employers, as
published in Maclean's magazine, the only consumer products company to receive this
honor.[10]
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23 of P&G's brands have more than a billion dollars in net annual sales and another 18 have
sales between $500 million and $1 billion.
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!
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%! is a brand of feminine hygiene products, including maxi pads, pantiliners
(sometimes called Alldays), and feminine wipes, produced by Procter & Gamble.--See
also Brand homepage; related trademarks: Ultra Thins; Flexi-Wing; Maxis; Alldays;
CleanWeave.
(| is a brand of washing powder/liquid, available in numerous forms and scents.
(|
is brand of Osteoporosis drug Risedronate co marketed by Sanofi-Aventis.
(| #&
% is a brand of paper towel sold in the United States, Canada and the United
Kingdom.
(| #
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is a small-appliances manufacturer specializing in electric razors, coffeemakers,
toasters, and blenders.
(| ! is a brand of toothpaste.
(|
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is a brand of dishwashing detergent.
(| $
%'
is a brand of fabric softener.
(| &
is a brand of batteries and flashlights.
(|
is a brand of laundry detergent and fabric softeners.
(| is a safety razor manufacturer.
(| V
(& !is a brand of shampoo.
(| V(
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is a deodorant by Old Spice.
(| c)% is a soap.
(| *
!%is a hair color product.
(|
% is a brand of women's skin care products.
(|
+#is a brand of toothbrush.
(|
! is a brand of disposable diapers.
(|
is a brand of haircare.
(| ! OTC is a brand of heartburn medicine co marketed by AstraZeneca.
(| &""! is a type of facial tissue.
(| is a deodorant.
(| is a brand of laundry detergent.
(| ,! is a brand of over-the-counter medications.
(| Ò
is a brand of hair care (shampoo, conditioner, styling, hair color).
(| Ò(! is a brand of pantyliners.
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Procter & Gamble manufactures its products across the globe. Manufacturing
operations are based in the following geographies
* US
* Canada
* Latin America
* Europe
* China (31 wholly-owned factories) and other parts of Asia
* Africa
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!
Procter & Gamble produced and sponsored the first radio opera soap operas in the
1930s (Procter and Gamble's being known for detergents (soaps) was probably the genesis of
the term "soap opera"). When the medium switched to television in the 1950s and 1960s, most
of the new serials were sponsored and produced by the company. Two of their serials, As the
World Turns and Guiding Light, are still on the air today and are produced by TeleNext Media,
Inc for Procter & Gamble. The serial The Young and the Restless also is regularly sponsored by
products from Procter & Gamble, as well as other daytime serials.
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Environmental Quality Policy
Procter & Gamble is committed to providing products and services of superior quality
and value that improve the lives of the world's consumers. As part of this, Procter & Gamble
continually strives to improve the environmental quality of our products, packaging and
operations around the world. To carry out this commitment, it is Procter & Gamble's policy to:
ͻ Ensure our products, packaging and operations are safe for our employees,
consumers and the environment.
ͻ Reduce, or prevent, the environmental impact of our products and packaging in their
design, manufacture, distribution, use and disposal whenever possible. We take a
leading role in developing innovative, practical solutions to environmental issues related
to our products, packaging and processes. We support the sustainable use of resources and
actively encourage reuse, recycling and composting. We share experiences and expertise
and offer assistance to others who may contribute to progress in achieving environmental
goals.
ͻ Meet or exceed the requirements of all environmental laws and regulations. We use
environmentally sound practices, even in the absence of government standards. We
cooperate with governments in analyzing environmental issues and developing cost-
effective, scientifically based solutions and standards.
ͻ Continually assess our environmental technology and programs, and monitor
progress toward environmental goals. We develop and use state-of-the-art science
and product life cycle assessment, from raw materials through disposal, to assess
environmental quality.
ͻ Provide our consumers, customers, employees, communities, public interest groups
and others with relevant and appropriate factual information about the environmental
quality of P&G products, packaging and operations. We seek to establish and nurture open,
honest and timely communications and strive to be responsive to concerns.
ͻ Ensure every employee understands and is responsible and accountable for
incorporating environmental considerations in daily business activities. We
encourage, recognize and reward individual and team leadership efforts to improve
environmental quality. We also encourage employees to reflect their commitment to
environmental quality outside of work.
ͻ Have operating policies, programs and resources in place to implement our
environmental quality policy.
P&G's philosophy is grounded in a belief that we should be a leader in our industry in
implementing our global environmental program. To do this, we concentrate on environmental
innovation and accountability for results. We believe our accomplishments illustrate this
commitment. For example, P&G was first to bring innovations such as concentrated products,
refill packages and recycled plastic bottles to our industry. We have made great strides in
reducing overall packaging per case by an average of 27 percent since 1990. During the same
period, our focus on pollution prevention has resulted in a 37 percent reduction in waste, air
and water emissions from our manufacturing plants.
We recognize that environmental progress is a never-ending journey of continuous effort and
improvement. However, by focusing on improving the lives of consumers through innovative
technologies that work better and more efficiently, we believe we can continue to sustain both
the growth of our business and the health of the environment.
!
!
.
& !
Procter & Gamble has announced five-year sustainability goals as part of its 2007 Global
Sustainability Report (PDF).
P&G says that it plans to generate at least $20 billion in cumulative sales of products with
reduced environmental impact over the next five years. Financial Times reports that the
environmental impact of those products will be at least 10 percent less than those of previously
available products. This is believed to be the first time a consumer products company has set
itself a financial target for developing and selling greener items, rather than for waste or energy
reduction.
P&G͛s sales target for environmentally enhanced products will be significantly supported by its
move to shift its liquid detergent market in the U.S. to double concentrate formula.
P&G is also changing its core statement of corporate purpose - that it seeks to ͞improve the
lives of the world͛s consumers with its branded products and services͟ -? to add the phrase
͞now and for generations to come,͟ according to the FT article.
The company also said it will reduce CO2 emissions, energy and water consumption, and
disposed waste per unit of production by an additional 10 percent each, contributing to a 40
percent reduction over the decade (2002-2012).
Other goals include:
ͻ Improve the lives of 250 million children through its corporate cause, Live Learn and Thrive. It
will also deliver another two billion liters of clean water through its Children͛s Safe Drinking
Water program over the next five years. The company estimates that this will prevent 80
million days of disease and save 10,000 lives.
ͻ Help P&G employees build ͚?sustainability thinking and practices͛ into their daily work.
ͻ Continue to work with external stakeholders, such as the Centers for Disease Control, UNICEF,
the World Health Organization and Populations Services International, to create new
opportunities and solutions for the world͛s sustainability challenges.
P&G is a founding member of the recently announced Supply Chain Leadership Coalition, an
organization that will press suppliers to release data about carbon emissions and climate-
change strategies.
)
!
(| All P&G products are held to P&G's high standards
for environmental and human safety; we do not
differentiate between which products meet these
standards and which do not - they all do.
(| P&G has been the Dow Jones Sustainability Index
Super Sector Leader for seven consecutive years in
the "Non-Durable Household Products" market
sector.
(| P&G has been leading the industry with innovations
like concentrated products, recycled plastic bottles
and refill packages to the industry.
(| P&G's Central Product Safety Environment Group was established to develop new
methods for evaluating the environmental safety of consumer products. P&G was one
of the first companies to establish such an organization.
(| P&G has hundreds of scientists and engineers responsible for assessing the
environmental safety of our products and operations.
(| P&G's environmental organization has published more than 700 articles over the past 45
years; almost 500 of those since 1990.
(| In 1992, P&G received the World Environment Center Gold Medal for International
Corporate Environmental Achievement.
(| P&G has been listed by FTSE4Good ethical investment index since its inception.
(| 95.93% of all materials entering P&G factories worldwide leave as finished product
(waste is 4.07% of which more than 50% is recycled).
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There are various CSR activities carried out by P&G with genuine intention of giving back to the
society. A few highlighted have been discussed within this project.
They are:
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Let us now study each of these projects.
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With a mission to make a difference to current alarming situation of children͛s͛ literacy, Procter
& Gamble (P&G) has joined hands with India͛s premier child rights organization Child Relief and
You (CRY) and Sony Entertainment Television to launch ͚Shiksha͛, a program to help educate
underprivileged children across India. Under Shiksha, P&G and Sony appealed to their
consumers and viewers to support the cause and make it easy for them to do so - all an
individual has to do is purchase a large pack of either Tide, Ariel, Pantene, Head & Shoulders,
Rejoice, Vicks VapoRub or Pampers during April, May and June 2005, and he/she will help
support one day͛s education of one child per pack purchased.
Irrespective of the sale of its brands from Shiksha, P&G has committed a minimum of Rs. 1
crore to CRY.
Education has managed to reach the underprivileged and even the poorest of the poor,
children numbering around 87,000 in India. Thanks to the corporate social responsibility (CSR)
initiatives of FMCG major Proctor & Gamble (P&G).
P&G's CSR programme in partnership with CRY empowers consumers across the country to
participate and support the education of marginalised children in India via a simple purchase of
any of P&G's products.
P&G India closed Shiksha '08 with the largest-ever contribution of Rs 3.2 crore to CRY and other
initiatives reaching out to over 87,000 children in the coming year.
With a motto of 'Padhega India, Badhega India', Shiksha believes that the secret to a brighter
India lies in children attaining their right to free, quality education.
Irrespective of sales, every year P&G commits to a minimum of Rs 1 crore to its partner CRY,
which will be allocated to projects focused on enabling the child's right to education.