Don Bosco Institute of Arts and Sciences Total Quality Management (TQM)

Pamantasan ng Cabuyao
Katapatan Subd., Brgy. Banay-banay
Cabuyao, Laguna

CASE STUDY ASSIGNMENT:

Company History

William Procter and James Gamble created Procter and Gamble in 1873. William Procter introduce him self to Cincinnati as a
candle maker, while his counterpart apprenticed himself to a soap maker. They met by chance when they married sisters and
fittingly they initiated a partnership of candle making and soap making.

A partnership then originated on October 13, 1837. In 1850 Moons and Stars became the unofficial trademark. In 1862, Procter
and Gamble profited by making candles for the Union soldiers, keeping the company afloat through good publicity. James Norris
Gamble, the son of James Gamble, created Ivory in 1879.

By 1980, Procter and Gamble was a successful partnership producing over thirty types of soap. Excellent advertisement caused
the need for more plants to be open, such as Ivory dale. The creation of new plants, so the creation of new and improved ideas,
Products such as: "˜Ivory-Flakes'-a soap for washing cloths and dishes, "˜Chipso'- the first soap for washing machines, "˜Dreft'-
the first synthetic detergent for households, and "˜Crisco'- the all-vegetable shorting that changed cooking forever. The company
had grown from $7,192.94 the original investment by Procter and Gamble, to over $350 million in 1945.

53 years after the formation of the successful partnership, P&G was incorporated to gain financial capital for an expansion. The
expansion carried with it the creation of Tide. Tide overtook the market and by 1959 was the leading detergent in the country.
P&G did not stop with Ivory and Tide, the company produced the first toothpaste with a "˜dentist approval', Crest. Crest skyrocket
soon after the company merged with Duncan Hines cake mixes and the inauguration of consumer paper products.

1960, the same year of the Crest take-off, P&G brought into existence Downy. Just a year after that Pampers entered the test
market in Peoria, Illinois. Coffee was the nest market to enter, with an acquisition of Folgers in 1963. Almost 10 years went by
before chemist attached to the company learned how to make a nonwoven sheet to soften clothes. Bounce followed its
predecessor's footsteps and became the second largest seller, only second to Downy. The first pharmaceutical product was created
in 1978, entitled Didronel.

One hundred and forty-three years after birth, P&G had grown into a massive company with sales over ten billion dollars. A
merger with Norwich Eaton Pharmaceuticals, 1982, brought about a new phase in P&G's prescription and over-the-counter health
care products. Innovative thinking created the superior feminine protection product, Always/Whisper, which was the leader in
selling by 1985. Another merger, to Richardson-Vicks, once again provided the opportunity to substantially increase its over-the-
counter and personal health care marketing 1985. Entering cosmetics in 1989, the company overtook the market with Cover Girl,
Noxzema, and Clarion. This step followed by the 1991 acquisition of Max Factor and Betrix. "Over the years, P&G innovations
have helped Tide remain a category leader and P&G's single largest brand.

Today, Procter & Gamble is a truly global corporation. Since 1980, the company has quadrupled the number of consumers it can
serve with its brands -- about five billion people around the world. P&G now has operations in more than 70 countries and its
products are sold in over 140 countries, making P&G one of the biggest and most successful consumer goods companies in the
world.

Company Purpose - We will 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. 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.

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Company Values
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 and
Gamble always will be our most important asset.
Integrity
• 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.
Leadership
• 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.
Ownership
• 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.
Passion for Winning
• 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.
Trust
• 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.

Some Corporations acquired by P&G

• MAX FACTOR – Gives way to P&G to enter the cosmetic market
• GILETTE – For producing shaving products
• NORWICH EATON PHARMACEUTICALS – To produce over the counter health care products
• RICHARDSON-VICKS – Increase the market for over the counter health care products
• PHILIPPINE MANUFACTURING CORPORATION (PMC) – Acquired by P&G and became P&G Philippines
which began the 1st operation of P&G in Far East.
• FOLGERS – P&G enters coffee market
• IAMS – Makers of animal products
• REI DESIGNS – P&G was able sell drinking water purification system

Four Pillars of Company’s Structure

• Global Business Units (GBU) builds major global brands with robust business strategies.
• Market Development Organizations (MDO) build local understanding as a foundation for marketing campaigns.
• Global Business Services (GBS) provide business technology and services that drive business success.
• Corporate Functions (CF) work to maintain our place as a leader of our industries.

P&G approaches business knowing that we need to Think Globally (GBU) and Act Locally (MDO). This approach is supported
by our commitment to operate efficiently (GBS) and our constant striving to be the best at what we do (CF). This streamlined
structure allows us to get to market faster.

Controversies
A. SATANIC LOGO

P&G's former logo originated in 1851 as crude cross that barge workers on the Ohio River painted on cases of P&G star candles
to identify them. P&G later changed this symbol into a trademark that showed a man in the moon overlooking 13 stars, said to
commemorate the original 13 colonies.
The company received unwanted media publicity in the 1980s when an urban legend spread that the moon-and-stars logo was a
satanic symbol. The accusation is based on a particular passage in the Bible, specifically Revelation 12:1, which states: "And there
appeared a great wonder in heaven; a woman clothed with the sun, and the moon under her feet, and upon her head a crown of
thirteen stars." Because P&G's logo consists of a man's face on a moon surrounded by thirteen stars, some have claimed that the

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logo is a mockery of the heavenly symbol alluded to in the aforementioned verse, and hence the logo is satanic. Where the beard
meets the surrounding circle, a mirror image of the number 666 can be seen when viewed from inside the logo, and this has been
interpreted as the reflected number of the beast, again linked to Satanism. In addition, there are two horns like a lamb that are said
to represent the false prophet.

These interpretations have been denied by company officials, and no evidence linking the company to the Church of Satan or any
other occult organization has ever been presented.

The company has sued and attempted to sue a number of companies such as 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. Amway was found not liable as a company because it did not instruct
individuals to spread such rumors. An example of one such rumor was the fabricated account that the president of P&G had
appeared on a Saturday edition of The Phil Donahue Show, where he purportedly declared that he was a Satanist and that the
company's logo was satanic. This rumor continued to circulate, despite the facts that the company's president had never made such
a statement in public, had never appeared on Phil Donahue's show, and Donahue's show never ran on Saturdays. Later variations
of this rumor replaced the Donahue show with Geraldo Rivera's show.

The old P & G Logo

Change of Company Logo

The continuous media coverage finally prompted P&G to adopt an entirely new logo consisting of just the letters P&G in 1992.

The value of the new Logo "PG" is enhanced by the fact that it is "internet compatible" as the company was able to register in
1992 the matching internet domain pg.com. Only few corporations worldwide own a two letter domain name

B. PRICE FIXING

In April 2011, P&G was fined 211.2m euros by the European Commission for establishing a price-fixing cartel in Europe along
with Unilever, who was fined 104 million euros, and Henkel (not fined). Though the fine was set higher at first, it was discounted
by 10.00% after P&G and Unilever admitted running the cartel. As the provider of the tip-off leading to investigations, Henkel
was not fined.

B. PRODUCT COMPLAINS

A. Crest Pro-Health Teeth cause Staining & Loss of Taste

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.

B. Clairol causes chemical burns in scalp

A civil lawsuit has been filed against Procter & Gamble alleging hair dye made people permanently lose all their hair.
Plaintiff Mary Alice Mack applied a Clairol "Nice 'n Easy" natural black hair dye and was left with chemical burns to her
scalp. Her hair fell out in large clumps and she has continued to lose hair for 10 months. Mack had preliminary discussions
with Procter & Gamble who offered her an $8 refund and a wig.

The lawsuit is seeking $12 million in compensatory damages and an unspecified amount in punitive damages and there is a
potential for class action

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C. SK-II Cosmetics contains harmful chemical ingredients

China's General Administration of Quality Supervision, Inspection and Quarantine said that it had found chrome and
neodymium in a batch of imported SK–II products. These materials are banned in China for use in cosmetics. Both chrome
and neodymium can cause skin problems, as well as other effects if ingested.

D. Rely Toxic Shock Syndrome (TSS) and Tampons

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 harmlesscommensals in places such as the nose, skin, and vagina. The disease can strike
anyone, not only women, but the disease is often associated with tampons. In 1980, 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. Unlike other tampons made of
cotton and rayon, Rely used carboxymethylcellulose and compressed beads of polyester for absorption.

In the summer of 1980 the Centers for Disease Control released a report explaining how these bacterial mechanisms were
leading to TSS. They also stated that the Rely tampon was associated with TSS more than any other brand of tampon. In
September 1980, Procter & Gamble voluntarily recalled its Rely brand of tampons from the market and agreed to provide
for a program to notify consumers. Since the 1980s, reported cases of TSS have dramatically decreased.

E. IAMS & Eukanuba Pet Food – abuse of animals use during experiments

United Kingdom's Uncaged exposed horrific accounts of cats and dogs used and killed in experiments for IAMS/Eukanuba
with a front-page story in the national press.

Their research uncovered scientific papers that describe IAMS-funded experiments on hundreds of previously healthy
animals that caused diseases. Many of the animals died as a result of the experiments, or were killed and dismembered for
tissue analysis.

Undercover video footage showed cats and dogs in laboratories in terrible conditions – dogs were debarked by having their
voice boxes cut out; and cats and dogs were experimented on and killed. Documentary evidence from research
establishments and IAMS/Eukanuba's own admissions reveal that they continue to kill other animals in cruel nutrition tests;
and cats and dogs are still spending their entire lives in cages for (non-lethal) experiments.

Other test conducted to Animals

• Acute toxicity test where dogs were force fed large amounts of a cleaning chemical by stomach tube
• Cancer and toxicity tests on rats and mice of optical brighteners and other laundry detergent ingredients
• Long-term poisoning tests in animals for coloring agents
• Skin Irritancy Tests - rats suffered liver damage in skin irritancy tests for chemicals to be used in hair care products and
fabric softener.
• Laundry Detergent Ingredients - Painful and lethal skin allergy tests were carried out on guinea pigs as well as on mice.

C. Boycott of P&G Products

Pledge to boycott Procter & Gamble products until they cease testing on animals!

Pledge to boycott multi-national company Procter & Gamble products until they cease testing on and killing thousands of animals.

Multi-national company Procter & Gamble (brands include Daz, Fairy, Iams/Eukanuba, Pringles, Always, Head and Shoulders
and Oil of Olay) continue to routinely vivisect and destroy thousands of animals in the development of their new products and
ingredients. If you buy P & G products, you fund animal torture.

The Facts A TIDE of Abuse

IDA launched its campaign against Procter & Gamble (P&G) in 1989. Our goal: to stop the company's blinding, burning,
maiming and killing of thousands of animals each year in product tests that are cruel, outdated and not required by law.

And, while the company claims that it no longer uses dogs in product testing and that it has reduced the number of animals used
by 90 percent, it refuses to back up any of its claims with facts. For example, Procter & Gamble refuses to release to the public
information regarding the actual numbers and species of animals used, or the types of tests it forces these animals to endure.

Because P&G refuses to release any pertinent information to the public, the media, or even to its shareholders, we must seriously
question the truth of any claims it makes regarding its use of animals in product testing, or its development and use of non-animal
testing methods.

Therefore, until P&G makes a firm commitment to end all animal testing of its household and consumer goods, In Defense of
Animals encourages consumers to boycott all of the company's products.

Other Information – Logo Controvesy

Related issue 1

This rumor is entirely false and has been harmful to the witness of the gospel as well as unfair to Procter & Gamble. A moon-star
symbol was used by the company on many of its products from 1882 to 1985. In this picture, the stars stand for the thirteen
original American colonies, and the drawing is a company logo and nothing more.

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During the 1960s, a story began circulating that the corporation was controlled by Satan worshipers. The arrangement of stars in
the symbol was said to secretly spell out the Revelation 13:18 "number of the beast": 666. Without examining the facts, many
people signed petitions against Procter & Gamble and boycotted their products.
Although the story is untrue (Procter & Gamble is owned by stockholders, not some sinister cult of moon worshipers!), the
company dropped the symbol from its product in 1985, so exasperating were the false accusations and bad publicity that the logo
had caused. The story continues to be circulated, mainly by misguided Christians. It is a sin to “give false testimony” Exodus
20:16), and this rumor should not be encouraged by the faithful.

According to an August 28, 1995 Procter and Gamble press release,

"The false stories typically claim that P&G's president discussed satanism on Donahue, a nationally televised talk show,
and that the company's 'moon and stars' trademark is a satanic symbol. The president of P&G has never discussed
satanism on any nationally televised talk show, nor has any other P&G executive. The moon & stars trademark dates back
to the mid-1800s, when the man in the moon was simply a popular design. The 13 stars in the design honor the original 13
colonies."

Procter & Gamble has received well over 200,000 calls and letters regarding this false rumor just within the past 18 years.
However, some well-known religious leaders and groups from the Christian spectrum have tried to put a stop to these rumors in
recent years. These include: The Billy Graham Evangelistic Association; Jerry Falwell; The Southern Baptist Convention; Most
Reverend Daniel E. Pilarczyk, Archbishop of Cincinnati; and the Church of the Nazarene.

Related issue 2

In 1997, Procter & Gamble filed the most recent in a series of lawsuits against Amway Corporation and several of its distributors
for allegedly spreading rumors to the effect that P&G, maker of familiar household products such as Mr. Clean and Tide laundry
detergent, is affiliated with the Church of Satan.

In evidence, P&G lawyers submitted the transcript of a voicemail message in which an Amway distributor could be heard relaying
what they characterized as false and malicious statements about Procter & Gamble to associates, including the allegation that the
president of the company had avowed his personal allegiance to Satan on a nationally-televised TV talk show.
The text of the voicemail recording appears been lifted practically verbatim from a flier that has been circling the globe for many
years via fax, snail mail, and, more recently, email. The rumors upon which it is based have existed for close to three decades and
are still running rampant despite Procter & Gamble's best efforts to combat them - as evidenced by a forwarded email that showed
up in my inbox just last week:

The President of Procter & gamble appeared on the Phil Donahue Show on March 1, 1994. He announced that due to the openness
of our society, he was coming out of the closet about his association with the church of Satan. He stated that a large portion of his
profits from Procter & Gamble Products goes to support this satanic church. When asked by Donahue if stating this on t.v. would
hurt his business, he replied, "THERE ARE NOT ENOUGH CHRISTIANS IN THE UNITED STATES TO MAKE A
DIFFERENCE."

"There aren't enough Christians in the United States to make a difference," Procter & Gamble's president supposedly
announced. Outlandish as it may seem to believe that such a prominent company - one that prides itself on being a "household
name" - would alienate every Christian on the planet by aligning itself with Satan, there are obviously a great many people
ready and willing to believe it. As Jeff Siemon of Search Ministries observes, the rumor is especially compelling to "Bible-
believing" Christians because it fits into a world view that presupposes a literal battle between the spiritual forces of good and
evil on earth:

When we think of hoaxes that relate to conspiracies that are being concocted against Christianity - in the case of Madalyn
Murray O'Hair or Procter & Gamble — this is in some sense consistent with the Biblical understanding that a great war rages
at a spiritual level. Certainly there are enemies of the faith. This does not mean that these hoaxes are real, but there will be
resistance and enemies of Christianity. The Christian, with an understanding of the Biblical world view, is sensitive to these
kinds of responses against the Christian faith. (Source: Christian Coalition Website)

Defending the faith does not require abandoning reason. Bob Passentino, another evangelical leader, argues bluntly that some
Christians are just too gullible: "It's not just a stamp we're wasting. It's our credibility. Our credibility is on the line. People might
think if Christians are stupid enough to fall for this falsehood, maybe early Christians were gullible enough to fall for the
resurrection story."

The issue goes beyond credibility; it's also a moral one. People who believe they're combating evil by spreading unverified rumors
may in fact be doing just the opposite. Tempting as it may be to always look for deceit in high places, we would all do well to
remember that lies, intentional or otherwise, can just as easily pass from our own lips or through our computer modems. Before
sharing such scurrilous allegations with others, we ought to stop for a moment and consider whose interests are really being
served.

Update: In January 2003, the U.S. 10th Circuit Court of Appeals upheld a lower court's dismissal of Amway Corporation as a
defendant in the lawsuit, chastising Procter & Gamble for "vague and confusing legal arguments."

Update: In March 2007, Procter & Gamble was awarded $19 million in its lawsuit against four Amway distributors for
disseminating rumors tying the company to Satanism.

Sources:
• http://urbanlegends.about.com/gi/o.htm?zi=1/XJ&zTi=1&sdn=urbanlegends&cdn=newsissues&tm=75&f=20&su=p284.13.3
42.ip_p504.6.342.ip_&tt=2&bt=2&bts=45&zu=http%3A//www.christiananswers.net/q-eden/edn-r012.html
• http://urbanlegends.about.com/od/business/a/procter_gamble.htm
• http://en.wikipedia.org/wiki/Procter_%26_Gamble
• http://cdn.instantshift.com/wp-content/uploads/2011/07/wiyb-06.jpg
• http://www.businesspundit.com/wp-content/uploads/2011/02/pg-star-sixes.jpg ***Nothing Follows***

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