P&G CSR

transcript

Procter & Gamble

Introduction

Companies like P&G used Social Responsibility as a Marketing Strategy. We all know that the primary reason of a business is to gain profit, but nowadays, due to the stiff competition, they have to use a strategy that can build a relationship with their customers.

P&G focuses on improving the lives of their consumers. P&G has been built through the character of its people. And that character is reflected in the Company’s Values, which have been fundamental to their success for more than 160 years. Their continued success depends on each one of them doing their part to uphold those values in their day-to-day work and in all the decisions they make, as reflected in their principles. These principles show from their purpose and values.

Procter and Gamble is a Fortune 500 multinational company based in Cincinnati, Ohio and manufactures a wide variety of consumer goods

Started by candle maker William Procter and soap maker James Gamble on October 31, 1837

It came to the Philippines in 1920

The Procter & Gamble Company (P&G) boasts boatloads of brands. The world's top maker of household products courts market share and billion-dollar names. It's divided into two global units:

* Beauty & Grooming* Household Care

The firm also makes pet food and water filters. Two dozen of P&G's brands are billion-dollar sellers, including Febreze, Fusion, Always, Braun, Bounty, Charmin, Crest, Downy, Gillette, Mach3, Iams, Olay, Pampers, Pantene, Tide, Gain, and Wella, among others. P&G purged its coffee in 2008 and it's selling Pringles. Being the acquisitive type, with Clairol and Wella as notable conquests, P&G's biggest buy in company history was Gillette in 2005.

Products offered in the Philippines

COMPANY PROFILE

Mission Statement

PURPOSEWe will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will

reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to

prosper.

OUR VALUES

We always try to do the right thing. We are honest and straightforward with

each other. We operate within the letter and spirit of the

law. We uphold the values and principles of P&G

in every action and decision. We are data-based and intellectually honest

in advocating proposals, including recognizing risks.

INTEGRITY

We are all leaders in our area of responsibility, with a deep commitment to delivering leadership results.

We have a clear vision of where we are going.

We focus our resources to achieve leadership objectives and strategies.

We develop the capability to deliver our strategies and eliminate organizational barriers.

LEADERSHIP

We accept personal accountability to meet our business needs, improve our systems and help others improve their effectiveness.

We all act like owners, treating the Company’s assets as our own and behaving with the Company’s long-term success in mind.

OWNERSHIP

We are determined to be the best at doing what matters most.

We have a healthy dissatisfaction with the status quo.

We have a compelling desire to improve and to win in the marketplace.

PASSION FOR WINNING

We respect our P&G colleagues, customers and consumers, and treat them as we want to be treated.

We have confidence in each other’s capabilities and intentions.

We believe that people work best when there is a foundation of trust.

PRINCIPLES

We believe that all individuals can and want to contribute to their fullest potential.

We value differences. We inspire and enable people to achieve

high expectations, standards and challenging goals.

We are honest with people about their performance.

SHOWS RESPECT FOR ALL INDIVIDUALS

We believe that doing what is right for the business with integrity will lead to mutual success for both the Company and the individual. Our quest for mutual success ties us together.

We encourage stock ownership and ownership behavior.

INTERESTS OF THE COMPANY AND THE INDIVIDUAL ARE INSEPARABLE

We operate against clearly articulated and aligned objectives and strategies.

We only do work and only ask for work that adds value to the business.

We simplify, standardize and streamline our current work whenever possible.

STRATEGICALLY FOCUSED ON WORK

We place great value on big, new consumer innovations.

We challenge convention and reinvent the way we do business to better win in the marketplace.

INNOVATION IS THE CORNERSTONE OF OUR SUCCESS

We believe it is the responsibility of all individuals to continually develop themselves and others.

We encourage and expect outstanding technical mastery and executional excellence.

VALUE PERSONAL MASTERY

We strive to be the best in all areas of strategic importance to the Company.

We benchmark our performance rigorously versus the very best internally and externally.

We learn from both our successes and our failures.

SEEK TO BE THE BEST

We develop superior understanding of consumers and their needs.

We create and deliver products, packaging and concepts that build winning brand equities.

We develop close, mutually productive relationships with our customers and our suppliers.

We are good corporate citizens. We incorporate sustainability into our

products, packaging and operations.

EXTERNALLY FOCUSED

We work together with confidence and trust across business units, functions, categories and geographies.

We take pride in results from reapplying others’ ideas.

We build superior relationships with all the parties who contribute to fulfilling our Corporate Purpose, including our customers and suppliers, universities and governments.

MUTUAL INTERDEPENDANCY IS A WAY OF LIFE

EXECUTIVE TEAM

Chairman of the Board, President and Chief Executive Officer Bob has nearly 30 years of brand-building, market development, global business unit and global operations leadership experience across P&G and throughout the world.

Robert “Bob” McDonald

Vice Chairman, Global OperationsWerner oversees business operations around the world including P&G offices in about 80 countries, and a network of 500+ distributors to serve over 4 million retail outlets every month.

Werner Geissler

Vice Chairman, Global Business UnitsDimitri, a global business leader with vast international experience, is Vice Chairman of Procter & Gamble Global Business Units.

Dimitri Panayotopoulos

CORE STRENGTH

No company in the world has invested more in market research than P&G. We interact with more than five million consumers each year in nearly 100 countries. We conduct over 20,000 research studies every year, and invest more than $400 million annually in consumer understanding. The insights we gain help us identify opportunities for innovation and better serve and communicate with our consumers.

CONSUMER UNDERSTANDING

P&G is widely recognized as the industry’s global innovation leader. Nearly all organic sales growth over the past decade has come from new brands or improved products. We collaborate with a global network of research partners, and more than half of all product innovation coming from P&G today includes at least one major component from an external partner.

INNOVATION

P&G is the brand-building leader of our industry. We’ve built the strongest portfolio of brands in the industry with 50 leadership brands that are among some of the world’s best-known household names–and which together make up 90% of P&G’s sales and more than 90% of profits. Twenty-four of these brands each generate more than $1 billion dollars in annual sales.

BRAND-BUILDING

We’ve established industry-leading go-to-market capabilities. P&G is consistently ranked by leading retailers in industry surveys as a preferred supplier. We’re also frequently ranked as the industry leader in a wide range of capabilities, including clearest company strategy, brands most important to retailers, strong business fundamentals and innovative marketing programs.

GO-TO-MARKET CAPABILITIES

P&G is creating scale advantage by integrating across our enterprise, consistently acting as one Company across our businesses and markets. By harnessing the strength of our brands and categories as one Company, we can better serve more consumers around the globe. With all of our brands, businesses, and people working in unison, we can create scale advantages by allocating resources more strategically and efficiently than any individual business can do on its own. This combination is greater than the sum of its parts—and we are focused on maximizing its potential.

EXTERNAL RECOGNITION

P&G won 3 trophies in the 2011 Global CSR awards, Asia’s Most Prestigious recognition awards program for Corporate Social Responsibility.

(Asia Employee Value Proposition) recognizing P&G’s Asia Diversity, Work-life effectiveness and Talent Development programs that built a comprehensive employee ownership package,

BRONZE AWARD FOR BEST WORKPLACE PRACTICES

(Philippines Downy Single Rinse) recognizing how product innovation genuinely touches and improves lives with Downy Single Rinse reducing water usage in rinsing by 66%, giving real peso savings and hours of time and effort for the average Filipino housewife. Since its launch in 2008, Downy Single Rinse has saved over 20BN liters of water

SILVER AWARD FOR PRODUCT EXCELLENCE

(Asia Environmental Sustainability) recognizing how P&G Asia incorporates Environmental Sustainability practices not just in product innovations but in day to day office operations, manufacturing processes and logistical operations across the region.

SILVER AWARD FOR ENVIRONMENTAL EXCELLENCE

HERITAGESince 1837, P&G has built a rich heritageof touching consumers’ lives with brands

that make life a little better every day.

Ivory soap represents P&G’s first effort at mass marketing its product through continuous consumer advertising

P&G institutes a pioneering profit-sharing program that gives employees an ownership stake in the Company.

The founder’s son, James N. Gamble, helps create the first coordinated community campaign for charities.

P&G becomes one of the first companies to formally respond to consumer correspondence by establishing the Consumer Relation department.

Tide, “the washday miracle,” is introduced. With a new formula that cleans better than anything then on the market, Tide makes laundry easier and less time-consuming.

P&G establishes the Procter & Gamble Fund to coordinate the distribution of money globally to charitable organizations in communities where we have a concentration of employees.

P&G answers the age-old need to reduce leaks, mess and rashes caused by wetness of cloth baby diapers by introducing Pampers, the first affordable, successful disposable diaper.

P&G is named for the first time among the 100 Best Companies to Work For by the Great Places to Work Institute.

P&G earns the U.S. Government’s National Medal of Technology.

P&G was recognized by SymphonyIRI as the most innovative manufacturer in the consumer package good industry for the last decade.

RECOGNITIONS

P&G Manila Service Center (MSC) was awarded the 2011 Excellence in People and Communications - Honorable Mention by the Asia Shared Services Outsourcing Network (SSON).

Excellence in People and Communications

P&G was conferred the Asian Human Capital Award at the 2010 Singapore Human Capital Summit.

Asian Human Capital Award

Manila Service Center was awarded the 2006 Best Mature Shared Services Organization in Asia and 2008 Asia Shared Services Employer of the Year by the Shared Services Organization Network (SSON).

Best Mature Shared Services Organization in Asia

P&G was named as the #2 Best Employer in the Philippines in 2003 by the Hewitt Group and Asia Business Week.

#2 Best Employer in the Philippines

Organizational ChartDuties and Responsibilities

Organizational Chart

P&G’s structure has removed many of the traditional overlaps and inefficiencies that exist in many large companies.

Global Business Units (GBUs) focus solely on consumers, brands and competitors around the world. They are responsible for the innovation pipeline, profitability and shareholder returns from their businesses.

Market Development Organizations (MDOs) are charged with knowing consumers and retailers in each market where P&G competes and integrating the innovations flowing from the GBUs into business plans that work in each country.

Global Business Services (GBS) utilizes P&G talent and expert partners to provide best-in-class business support services at the lowest possible costs to leverage P&G’s scale for a winning advantage.

Lean Corporate Functions ensure ongoing functional innovation and capability improvement.

P&G CSR theme is Live, Learn, and Thrive; its programs are giving life-saving vaccinations and safe water in Africa, building safe homes across Europe, providing educational opportunities in Asia, supplying essential nutrition in North America, and enriching early childhood development in Latin America. Its commitment is to improve life for disadvantaged children and youth, help children get off to a healthy start, receive access to education, and build skills for life with its goal of being closer to consumers from all walks of life and in touch with needs of communities around the world.

Duties and Responsibilities

This commitment goes well beyond the P&G facilities. Every year, thousands of P&G employees worldwide personally commit to helping children and youth live, learn and thrive in their communities and beyond. Many employees volunteer their time or work in groups on team-building projects such as building playgrounds for children, teaching the importance of safe hygiene, or mentoring tweens and teens. And millions of dollars have been donated by employees with the goal of improving life for children and youth.

Environmental Sustainability As part of our strategy to grow responsibly, we will work

toward a long-term environmental sustainability vision that includes:

Powering our plants with 100% renewable energy Using 100% renewable or recycled materials for all products

and packaging Having zero consumer and manufacturing waste go to landfills Designing products that delight consumers while maximizing

our conservation of resources This vision is stretching, and we believe it will take us decades

to achieve. We have set strategies in Products and Operations that help us deliver against our vision. To ensure we are holding ourselves accountable, we have two sets of goals, for 2012 and 2020, within Products and Operations.

Social Responsibility Live, Learn and Thrive is P&G’s corporate

cause, focusing on helping children in need around the world. The programs enable children to get off to a healthy start, receive access to education and build skills for life. Since 2007, P&G has improved the lives of over 315 million children

Employees & Stakeholders In order to deliver our environmental and

social programs, we must engage our employees and stakeholders. Our objective is to equip all P&G employees to build sustainability thinking and practices into their everyday work. We will also work transparently with stakeholders to enable us continued freedom to innovate in a responsible way.

Project and Plans

Providing access to clean drinking water Reducing death toll P&G Packets

◦ Developed by P&G and the U.S. Centers for Disease Control and Prevention (CDC)

P&G Children’s Safe Drinking Water Program

Death caused by maternal and neonatal tetanus

Vaccines for vulnerable women and their children

Pampers and UNICEF: Working Together for Healthy Babies

Girls miss days of school caused by the lack of basic sanitary protection in managing their periods.

Puberty education Sanitary protection Sanitary facilities

Always and Tampax: Protecting the Futures of Girls

P&G Hope Schools China Youth Development Better access to education in poverty-

stricken rural areas of China

P&G and Hope Schools: A Long-Term Commitment to Education Success

India: World’s largest population of uneducated children

Shiksha Program◦ Provide access to education

P&G and Shiksha: Increasing Access to Education in India

Hand washing: cornerstone of public health Reduce incidence of diarrheal disease Cut respiratory infections Prevent the spread of influenza H1N1 Safeguard + NGOs + Key governments

Clean Hands Save Lives

Global disaster response Safety and welfare of employees Humanitarian partners

◦ Understanding the scope and impact of the crisis◦ How best to respond

Disaster Relief at P&G

“Dreaming Together for the Future” Part of P&G product purchases

◦ Enabling children in their self-development Access to vocational education

◦ Baking to Journalism Help handicapped children discover hidden

talents◦ Art, music, and sports

P&Gers Improving Lives

Improve lives of Filipinos◦ Consumer products◦ Philanthropic activities◦ Access to education◦ Build life skills

LIVE◦ P&G Villages (118 homes)

LEARN◦ P&G Safeguard Acquired Reading and Learning

(A.R.A.L.) Center (78 Safeguard scholarships) THRIVE

◦ P&G employees: steady source of manpower for educational activities with P&G scholars

Live, Learn and Thrive

Address the need of families affected by Typhoon Reming

Through Red Cross, P&G donated cash and relief goods (US $500M)

Help distribute the aid Help meet the needs of more than 15,000

families

P&G Helps Victims of Typhoon Reming

“Isang Laptop, mas malawak na kaalaman, mas magandang bukas.”

E-learning advocacy program Smart Communications, Inc. and Synergeia

Foundation Child-friendly laptops (One Laptop per Child

Association) Internet connectivity (Smart)

e.Studyante Program

Projects/Plans

Effects of CSR to the people within the organization

Sustained a transparent workforce among the stakeholders to enable continued freedom to innovate in a responsible way and shape a good future.

For the internal stakeholders, they are engaged and equipped to build sustainability thinking and good practices into their everyday work with ethical behaviour and standards.

Improved lifestyles of the individuals/consumers. People around the world get off to a healthy start,

receiving access to education and build skills for life.

Effects of CSR to the stakeholders in P&G

Effects of CSR to the Community

• Through implementing CSR programs they receive a number of benefits like:Health assuranceImproved lifestyleEducational attainment(LIVE&LEARN)Minimize povertyLow class community experience having laptops

and etc. (keeping them updated to current issues)

Effects to the Community

Issues and Challenges

1980 Tampon Controversy: Toxic shock syndrome (TSS) is a disease caused by strains of the bacteria Staphylococcus aureus. Most people have these bacteria living in their bodies as harmless commensals in places such as the nose, skin, and female parts. The disease can strike anyone, not only women, but the disease is often associated with tampons.

Product Controversy

814 menstrual-related TSS cases were reported; 38 deaths resulted from the disease. The majority of women in these cases were documented as using super-absorbent synthetic tampons, particularly the Rely tampon created by Procter & Gamble. The Rely tampon was so super-absorbent that one by itself could in fact hold one woman's entire menstrual period flow.

The slogan used by Procter & Gamble for the product was "Rely. It even absorbs the worry."

On June 30, 1999 Procter & Gamble announced that it would limit its animal testing practices to its food and drug products which represents roughly 80% of its product portfolio. The company invested more than $275 million in the development of alternative testing methods.

Procter & Gamble has received criticism from animal advocacy group PETA for the practice of testing on animals

Animal Testing

Logo issueThe company received unwanted media publicity in the 1980s when rumors were spread that their previous corporate logo was a Satanic symbol.

The company has sued and attempted to sue a number of companies like Amway and individuals who have spread rumors of this type, in some instances because they sell competitive products and have spread such rumors for the purpose of tarnishing P&G's image to increase sales of their own brands.

In October 2007, a class action lawsuit was filed in the State of Georgia alleging that many users of Crest Pro-Health mouthwash suffered stained teeth and loss of their sense of taste as a result.

Procter & Gamble contends that these side effects occur in only three percent of users. The suit seeks to include disclosure warning users of these side effects on product packaging.

Crest Pro-Health mouthwash

Logo issueHowever, the continuous media coverage prompted P&G to adopt tan entirely new logo consisting of just an entirely new logo consisting of just the letters P&G.

In television commercials in China, the former P&G logo still appears in China, the former P&G logo still appears at the end of each commercial, and up until at the end of each commercial, and up until 2004, it appeared at the end of commercial in Japan.

As evident in the awards that Procter and Gamble already have (whether international or local), Procter and Gamble is a company that really shows Corporate Social Responsibility and Good Governance

Conclusion and Recommendation

The only on-going concern to the Procter and Gamble CSR is their animal testing procedure.

Overall, their CSR programs are near to perfection, but what are concerning and need recommendations are their procedures and some past product defects.

Focus more on the REAL needs of our country. The country obviously needs more educational facilities and fixtures (i.e. Classrooms, tables, chairs, etc.) than laptops and other gadgets

P&G CSR

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