COMPANY RESEARCH

Procter & Gamble

Vision
To be and be recognized as the best consumer products company in the world.

Mission
Procter & Gamble will provide branded products and services of superior quality and
value that improve the lives of the world’s consumer. As a result, consumers will reward us with
industry leadership in sales, profit, and value creations, allowing our people and shareholders,
and the communities in which we live and work to prosper.

Introduction and background information on how the company became global

In Cincinnati, Ohio, Procter & Gamble, an American multinational consumer goods

corporation was founded by William Procter and James Gamble to produce and sell candles
and soap. Both individuals were born in the United Kingdom and had immigrated to the United
States. William Procter's grandfather was a candlemaker who partnered with James Gamble,
an Irish soapmaker, in 1837. During his father's presidency (1890–1907), the company grew
steadily, thanks to the successful marketing of Ivory soap released in 1879 and other goods
later introduced during his father's administration (1890–1907) William Alexander Procter.
During the challenging economic times preceding the Civil War, Procter & Gamble
began as a small soap and candle business and has since grown into a large consumer goods
company. It's safe to say that Procter & Gamble has expanded well beyond its founders'
wildest dreams. In the world of consumer products, P&G is a behemoth. P&G is the world's
largest manufacturer of household products, with operations in nearly 80 countries and nearly
300 brands marketed in more than 180 countries. More than half of the company's sales come
from outside the United States.
When Procter & Gamble bought England's Thomas Hedley & Company, the producers
of Fairy Soap, it became a global enterprise. As times passed by , the company expanded its
product range to include toothpaste, coffee, tea, and baking mixes. Despite the restructuring,
the corporation continued to make acquisitions at a rapid rate. In 1994, P&G acquired
Vereinigte Papierwerke Schickedanz AG's European tissue business, as well as Giorgio
Beverly Hills, Inc.'s premium fragrance business. Following the easing of US sanctions in that
year, Procter & Gamble re-entered the South African market. The following year, the
corporation made a change to its geographical management structure. P&G had previously
divided its operations into two groups: domestic and international but split it into four groups:
North America, Latin America, Asia, and Europe/Middle East/Africa. Artzt stepped down as
chairman and CEO in July 1995, and Pepper took over. Durk I. Jager was appointed as
president and chief operating officer.
The Company's Culture and Code of Ethics

Company's Culture And Code Of Ethics Purpose, Values, And Principles — are
who they are at their core. Their mission is to create a positive change in people's lives in
small but meaningful ways. Integrity, leadership, ownership, passion for winning, and trust
are values that guide how they interact with one another and their partners. Their Principles
describe how they approach work daily with intention. P&G employees believe in the PVP
foundation's personal and business worth; the PVPs are routinely recognized as the number
one feature of their culture that employees would not change in their annual employee poll.
Their attitude is that a reputation for trust and integrity is earned over time, generating long-
term benefits to the stakeholders.

Good Governance — As firms face escalating external difficulties and an ever-

changing operational environment, the significance of good leadership and effective
monitoring has only grown. They have experienced the effects of the COVID-19 pandemic on
governments, businesses, and communities firsthand. As they negotiate these obstacles and
adapt to new opportunities, their commitment to and guiding principles for effective
governance continue to offer a crucial basis for the company. Their Corporate Governance
Guidelines described these and other processes. They constantly monitor and update as
needed based on feedback from investors and stakeholders and their evaluation of external
best practices. For example, signatories to the Commonsense Corporate Governance
Principles demonstrate their commitment to a robust governance framework. They also
compare their processes to external benchmarks such as the Investor Stewardship Group's
Corporate Governance Principles and find that they generally align with these ideals. Overall,
they feel that their governance structure increases the Board's ability to give significant
oversight, evaluation, and counsel to the company, as it operates on behalf of all of its
shareholders.

Respecting Human Rights — They acknowledge that it is the responsibility of the

sovereign state to protect human rights by enacting and enforcing appropriate laws and
regulations. They also believe that certain countries lack proper legal and regulatory
frameworks and enforcement mechanisms or have laws that violate internationally
recognized human rights. Even under these situations, they are devoted to doing the right
thing by protecting human rights in all aspects of their activities. They take their obligation
and responsibility seriously to ensure that they respect human rights throughout their whole
value chain, including all of their stakeholders, including their employees, customers,
communities where they do business, and business partners.

Doing The Right Things With Our Employees — Every year, they hold a "Do the
Right Thing Celebration" to commemorate their shared Purpose, Values, and Principles
foundation. Their locations worldwide host their employee engagement events based on a
global theme derived from their WBCM principles of Respect, Integrity, and Stewardship.
"Integrity" was the subject of the 2019 celebration. Events include games and contests to
engage employees and promote awareness, leadership town hall conversations, and
inspiring films from employees making a difference. Outstanding performance in originality,
engagement, and passionate leadership has been acknowledged for the sites. Those who
exhibit a dedication to ethics and compliance might be honored by peers or supervisors with
a specific "PVP Champion" label. However, they establish high standards for all employees.
Hundreds of employees have received recognition since the program began in 2016. In
addition to these local activations, the 2019 celebration included a recorded town hall led by
Matthew Price, P&G President for Greater China, who shared what he has learned firsthand
about the importance of integrity and excellent stewardship in boosting business
performance.

Doing The Right Thing With Our Consumers — The Environmental Protection
Agency has named P&G a 2019 Safer Choice Partner of the Year (EPA). The award honors
P&G's Home Made SimpleTM product portfolio for excellent success in designing,
manufacturing, selecting, and using of dish, fabric, and surface cleaning products that meet
EPA Safer Choice standards. The laundry detergent bottles are made of 25% or more post-
consumer recycled plastic. They are proud to be named an EPA Safer Choice Partner for
providing seductively great household cleaning solutions that are safe and effective from the
well-known and trusted brands of P&G. P&G has advocated for ingredient transparency in
North America since 2018 with all designed product ingredients specified in SmartLabel. In
North America, they fulfilled their increased transparency promise in 2020, sharing the
chemicals in their fragrances down to 0.01 percent. Smart LabelTM now contains the
intricacies of their scent compositions, including explanations of the fragrance compounds
they use.
Recent company scandals and how the company addressed the issue/s

Forest Destruction

In 2014, Greenpeace revealed that P&G is sourcing palm oil from companies
connected to forest destruction. Its sourcing policies have exposed its supply chain to forest
fires and habitat destruction, further pushing the Sumatran tiger to its edge of extinction.
The environmental concern has sparked a rebellion by the top institutional
shareholders of Procter & Gamble. Two-thirds of the P&G annual meeting votes were cast in
favor of a shareholder's proposal calling for P&G to increase the scale and pace of its efforts
to prevent deforestation in its supply chain.
In response, P&G implemented a Responsible Palm Sourcing Policy and Supplier
Expectation for suppliers to meet the high standards of No Deforestation, No Peat, No
Exploitation (NDPE) Policy. The purpose of the policy is to share P&G's expectations with their
suppliers in responsible palm-sourcing.

Human Rights Abuses

In connection to P&G's sourcing of palm oil, Felda Global Venture, the palm oil supplier
of P&G in Malaysia, was found guilty of forced labor, child labor, and human trafficking on its
palm oil plantation. P&G also sources its palm oil in an Indonesian palm oil plantation which
was found to have human rights abuses such as forcing children as young as eight years old
to work in dangerous and unsafe working conditions. Being part of its supply chain, Procter &
Gamble was held responsible for the plight of palm oil plantation laborers. P&G should not
knowingly condone, contribute or benefit from the human rights abuses of its business
partners.
To address the issue, they implemented Human Rights Policy which includes their
commitment to their supply chain. P&G established clear expectations of their business
partners to respect human rights recognized internationally, have ethical and responsible
business operations, and comply with all applicable laws.

Cancer-causing Chemicals in Herbal Essences

In 2010, chemical tests and studies showed that herbal essences of & Gamble
contained high levels of 1,4-dioxane, which should have been labeled with warnings, as
required by California's Proposition 65, but P&G failed to do so. The law requires companies
to include warnings on items that contain high levels of cancer-causing chemicals. One of
these is the chemical 1,4-dioxane, often known as dioxane. 1,4-dioxane is a contaminant
produced during the manufacturing process of shampoos, liquid soaps, bubble baths, and
other personal care products.
To address the issue, Procter & Gamble started reformulating its herbal essences to
reduce the concentration of 4-dioxane as part of their agreement with the Organic Consumers
Association and the Green Patriot Working Group. The process involved changing supplier
specifications and manufacturing methods.
In 2012, 1,4-Dioxane was once again found in Procter & Gamble's product. P&G's Tide
Free & Gentle® was revealed to contain dangerous levels of 1,4-dioxane. The product was
marketed as a safer choice of laundry detergent. This is alarming, especially if the product is
used on children's laundry because their immune, neurological, and hormonal systems are
still developing, making them susceptible to chemical exposures. P&G took responsibility for
the toxic contamination in their product and reformulated the Tide Free & Gentle® to reduce
the cancer-causing chemical.
Recent corporate social responsibility activities of the company

Serving nearly five billion people globally for more than 80 years, Procter & Gamble
is committed to being a corporation that positively impacts society and the world through
conserving resources, protecting the environment, improving social conditions, and
respecting social conditions human and labor rights. The Corporate Social Responsibility of
Procter & Gamble is centered on three focus areas: environmental sustainability, community
impact, and equality and inclusion.

Environmental Sustainability

P&G’s progress on sustainable forestry. Having industry-leading transparency and

accountability on forestry practices, P&G made all their reports available to the public
through their ESG Investor Portal. P&G continues to invest heavily in innovative fiber
alternatives, pledging at least $20 million over the next five years.
P&G’s accelerated forestry and 100% sourcing certification goals on the wood pulp and palm
oils used in their brand. These certifications restrict deforestation, uphold the rights of
workers and Indigenous peoples, and save animal habitats in forests.

P&G products’ sustainable packaging. With its 2030 goal of 50% reduction of virgin
petroleum-based plastic packaging, P&G has started its early phase with a 4% reduction by
2020. P&G has also begun to replace plastic packaging with recycled paper in Safeguard, Old
Spice, and Secret products. They plan to launch a refill system of their shampoo brands such
as Head and Shoulders and Pantene using a reusable aluminum bottle and recyclable refill
pouch.

Community Impact

Discovery education partnership and P&G employees inspiring the young

generation. P&G focuses on expanding diversity and access to opportunity in the STEM fields
through its relationship with the STEM Careers Coalition, which supports K-12 STEM
education for under-resourced schools. The plan is to reach 10 million students in 5,000
schools over the next few years.

Bringing Clean Water to Communities. To aid the concern of having nearly a billion
people without access to clean water, P&G launched the Children’s Safe Drinking Water
(CSDW) Program. P&G invented a technology called — P&G Purifier of Water packets. It turns
dirty and potentially deadly water into clean and drinkable water. In June 2020, P&G had
already distributed 17 billion liters of safe water to people in need in 90 countries, especially
to communities with people suffering from Cholera which they got from drinking unclean
water.

Equality and Inclusion

P&G and the YWCA of the United States collaborated on the Level Up!
Campaign. The Summit is a two-day virtual event designed to help women entrepreneurs
gain economic empowerment. They learn marketing in social media, the growth of successful
cosmetics companies, the importance of prioritizing mental health and self-care, and
obtaining funding through panel discussions and workshops. This is in support of their aim of
empowering women and promoting gender equality.

Hiring People with Disabilities through P&G Russia’s Project REACH. As part of
their goal of having an inclusive and accommodating workplace, P&G Russia launched the
project REACH to provide opportunities for persons with disabilities to gain work experience
and skills. In 2019 and 2020, 19 people with disabilities graduated from project REACH in
Russia, and most of them were able to secure permanent jobs in multinational companies.
Conclusion, Findings and Summary

Diversified brand portfolio Imitable/fake products

Global operation Failed products
Strong distribution network
Award-winning achievements

Rural Market penetration Competition

Increasing buyer power Government Intervention
Mergers and acquisition Increasing material prices
Increasing fuel prices

Procter & Gamble, founded over 180 years ago, has already established its operation
in over 80 countries and sells more than 300 brands globally in over 180 countries. Its 24
brands have annual sales individually at over a billion dollars, and it made a strong presence
to the public due to its excellent marketing and advertising strategies. They have a good
partnership with their retailers, dealers, and distributors. They not only sell P&G products but
also focus on promoting them. Moreover, P&G is a generous sponsor in significant sports and
entertainment events, which helped the business expand and build its connection with
people.
Procter & Gamble has a huge concern regarding fake products sold under the name
of their brands, especially from China. Hence, consumers' faith in brands is destroyed due to
counterfeit items of poor quality being sold in the market. In the 1980's P&G attempted to
introduce a new product, color-safe bleach, named Vibrant, a possible competitor of Clorox,
but Clorox had a glimpse of it and successfully eliminated the competition. Since it is an old
company and there are too many business units and investments to handle, the decision-
making process is said to be inefficient and affects the organization.
Rural businesses have two driving factors: availability and pricing, and P&G may still
gain a competitive edge by pursuing cost-effective initiatives. In many nations, consumer
purchasing power is growing. P&G might benefit significantly from such new markets. P&G's
global markets would expand faster than its domestic market. Acquiring strong local rivals'
products or sales platforms is one way to eliminate competition while also adding a new
product to the portfolio.
Procter & Gamble's market share may be affected by the intense and growing rivalry
from other fast-moving consumer goods companies. Some of its major competitors also
include Hindustan Unilever Limited, Colgate-Palmolive, Johnson & Johnson. Moreover, due to
present economic lockdowns, consumers are being more cautious with their spending on
non-essential products. Fuel prices are rising and may have an impact on goods pricing. The
cost of raw materials will increase, causing the price of commodities to grow as well. All of
this puts P&G in jeopardy.
International companies like P&G understand that success is more than just creating
an appealing marketing campaign. These companies require more robust strategies and
excellent knowledge of the global market. Companies need to test and plan for
environmental, financial, and demand issues to market products globally to understand how
they impact their international efforts effectively. In doing so, the company will effectively
reach its new market of customers and create a unique position in their minds, building brand
loyalty, increasing sales, and growth in profit potential.
References

https://marker.medium.com/how-tide-survived-the-tide-pods-fiasco-and-kept-them-on-
shelves-d5496d1f835e https://www.3blmedia.com/news/our-progress-sustainable-forestry

https://www.3blmedia.com/news/advancing-equality-and-inclusion-stem

https://www.3blmedia.com/news/pg-and-ywca-usa-partner-level-womens-
entrepreneurship-summit

https://www.greenbiz.com/article/pg-reformulating-herbal-essences-limit-toxins

https://www.fastcompany.com/1583943/herbal-essences-finally-cut-down-cancer-causing-
chemical

https://www.womensvoices.org/2012/03/29/tens-of-thousands-call-on-procter-gamble-to-
strip-cancer-causing-chemical-from-tide-free-gentle/

https://www.commondreams.org/newswire/2010/03/09/procter-gamble-agrees-
reformulate-herbal-essences-due-toxic-contaminant

https://www.womensvoices.org/2013/01/25/tide-reformulates-detergents-to-reduce-
cancer-causing-chemical/

https://www.amnesty.org/en/latest/news/2016/11/palm-oil-global-brands-profiting-from-
child-and-forced-labour/

https://actions.sumofus.org/a/it-s-time-procter-and-gamble-tackles-palm-oil-exploitation-
in-its-supply-chain

https://us.pg.com/blogs/pg-and-responsible-forestry/

https://www.mbaskool.com/brandguide/fmcg/1517-procter-and-gamble.html

https://www.projects4mba.com/swot-analysis-procter-gamble/5013/

https://howandwhat.net/swot-analysis-procter-gamble/
Individual photos of the group using, eating, or otherwise interacting with the product
or service of your chosen company.

DELA CRUZ, Jemagneil April

FLORES, Nicole

EVANGELISTA, Ailynn