Class Internal Assessment -I

Procter & Gamble

Submitted by:

Name Registration No.

Harsh Purohit PG22074

Priyanshi Mittal PG22149

Shiksha Jaiswal PG22199

Hemanshu Yadav PG22077

Pretish Pancholi PG22144

Adarsh Agarwalla PG22010

Under the guidance of

Prof. L R S Mani

Associate Professor

Business Ethics and Corporate Governance

 Organization Profile

1. History:
Procter & Gamble's story stretches back nearly two centuries, a testament to its adaptability and
innovation. The Procter & Gamble Company (P&G) is an American multinational consumer
goods corporation headquartered in Cincinnati, Ohio, founded in 1837[4] by William Procter and
James Gamble. It specializes in a wide range of personal health/consumer health, personal care
and hygiene products; these products are organized into several segments including beauty;
grooming; health care; fabric and home care; and baby, feminine, and family care. Before the
sale of Pringles to Kellogg's, its product portfolio also included food, snacks, and beverages.
P&G is incorporated in Ohio.

In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was
streamlining the company, dropping and selling off around 100 brands from its product portfolio
in order to focus on the remaining 65 brands,[8] which produced 95% of the company's profits.
A.G. Lafley, the company's chairman and CEO until October 2015, said the future P&G would
be "a much simpler, much less complex company of leading brands that's easier to manage and
operate".

Founders and Early Days (1837-1880s):

A Partnership Born from Family: William Procter (candlemaker) and James Gamble (soap
maker) joined forces in 1837, Cincinnati, Ohio. Their shared values of quality, hard work, and
innovation laid the foundation.

Humble Beginnings: They started with lard-based candles and soap, catering to the needs of a
growing city. Early successes included Ivory soap (1879), known for its purity and gentle
cleaning.
Building Brand Identity: The iconic Moon and Stars logo appeared in the 1850s, symbolizing
quality and trustworthiness. Early advertising employed newspapers and word-of-mouth
marketing.

1879: A shining star is born. Ivory soap, known for its gentle yet effective cleaning power,
becomes a household staple. This marks a significant innovation in soap-making, using a newly
developed process to create a bar that floats in water.

Expansion and Diversification (1880s-1940s):

1880s-1920s: Expansion and diversification. P&G expands its product line beyond soap,
venturing into laundry detergents, bleach, and Crisco shortening. Their marketing strategy
evolves, utilizing radio and sponsoring the first soap operas, solidifying their brand recognition.

1930s-1940s: Innovation drives growth. P&G introduces Tide, the first synthetic laundry
detergent, revolutionizing the cleaning experience. World War II demands see them supplying
essential goods to the military and fostering employee loyalty through profit-sharing initiatives.

Post-War Growth and Global Reach (1950s-present):

1950s-1970s: Global reach and brand power. P&G becomes a truly global company, establishing
operations in multiple countries. They introduce iconic brands like Pampers diapers, Crest
toothpaste, and Head & Shoulders shampoo, further solidifying their market leadership.

1980s-: Adapting to a changing world. P&G focuses on R&D, continuously innovating and
evolving its product lines to meet changing consumer needs and preferences. They face
challenges like increased competition and private label brands, but also capitalize on
opportunities in emerging markets and the rise of e-commerce.

Today and Beyond:

Sustainability and Social Responsibility: P&G emphasizes environmentally friendly practices

and ethical sourcing, aligning with modern consumer values.

Personalized Products: They cater to individual needs and preferences, offering customizable
options and leveraging digital tools.

Future-Oriented Vision: P&G continues to adapt to a dynamic market, aiming to improve lives
through its products and initiatives.
2. Key Factors Affecting P&G’s background:
• Diversification: Over time, P&G expanded beyond soap into new verticals like personal
care, baby care, and beauty, catering to diverse consumer needs and mitigating risk.
• Global expansion: Early international expansion fueled growth and allowed them to adapt
offerings to regional preferences and emerging markets.
• Marketing innovation: P&G pioneered marketing strategies like radio soap operas and
targeted advertising, effectively reaching and engaging with consumers.

Overall, P&G's journey reflects a combination of strong foundational principles, adaptability

to changing markets and consumer preferences, and embracing modern trends while
addressing emerging challenges. This mix of factors has positioned them as a leader in the
consumer goods industry.

3. PRODUCTS/SERVICES:

P&G business verticals represent a diverse range of products that P&G sells to consumers around
the world. The company has been successful in part because it has been able to adapt its
offerings to meet the changing needs of its customers. For example, in recent years, P&G has
placed a greater emphasis on natural and organic products, as well as on products that cater to
specific needs, such as sensitive skin or allergies.

1. Baby, Feminine & Family Care:

• Focus: Diapers, wipes, training pants, and other baby care products; feminine hygiene
products; family planning solutions.
• Popular Brands: Pampers, Luvs, Always, Tampax, Bounty, Charmin, Puffs

Products:

• Diapers: Pampers, Luvs

• Wipes: Pampers wipes, Charmin wipes
• Training pants: Pampers Easy Ups, Luvs Pull-Ups
• Feminine hygiene products: Always pads, Tampax tampons
• Family planning solutions: Rely condoms
2. Beauty:

• Focus: Skin care, hair care, cosmetics, fragrances, and

oral care.
• Popular Brands: Olay, Pantene, Head & Shoulders, SK-
II, Gillette Venus, Braun, Oral-B.

Products:

• Skin care: Olay Regenerist, SK-II Facial Treatment

Essence
• Hair care: Pantene Pro-V, Head & Shoulders Classic
Clean
• Cosmetics: CoverGirl makeup, Max Factor makeup
• Fragrances: Gucci Guilty Eau de Parfum, Hugo Boss
Bottled Eau de Toilette
• Oral care: Oral-B Genius X electric toothbrush, Crest 3D
White toothpaste

3. Grooming:

• Focus: Razors, shaving gels, trimmers, deodorants, and other grooming products for
men.
• Popular Brands: Gillette, Braun, Old Spice, Art of Shaving

Products:

• Razors: Gillette Fusion5 ProGlide, Braun Series 9 Pro

• Shaving gels: Gillette Fusion ProGlide Sensitive
shaving gel, Braun CoolTec shaving gel
• Trimmers: Gillette Styler, Braun MultiGroomer
• Deodorants: Old Spice Classic deodorant, Gillette
Clear Gel deodorant

4. Health Care:
 • Focus: Over-the-counter medications, vitamins, and digestive health products.
• Popular Brands: Vicks, Metamucil, Pepto-Bismol, Prilosec OTC

Products:

• Over-the-counter medications: Vicks NyQuil cough

syrup, Metamucil fiber supplement
• Vitamins: Centrum multivitamins, Pepto-Bismol Digestive
Relief tablets
• Digestive health products: Prilosec OTC heartburn relief
tablets

5. Fabric & Home Care:

• Focus: Laundry detergents, fabric softeners, dishwashing liquids, and household cleaning
products.
• Popular Brands: Tide, Gain, Downy, Febreze, Cascade, Dawn

Products:

1. Laundry detergents: Tide Pods, Gain Ultra Clean Fresh scent

2. Fabric softeners: Downy April Fresh fabric softener, Febreze
Fabric softener & Odor remover
3. Dishwashing liquids: Dawn dish soap, Cascade Complete
Action Pods dishwasher detergent

Key Takeaways:

• P&G's diverse, powerful, and adaptable product portfolio makes them a leader in
consumer goods. However, they must navigate competition and balance innovation with
core brand value while embracing sustainability to ensure future success.
• P&G caters to the entire family life cycle, offering products for babies, adults, and
families.
 • Their focus on health, hygiene, and personal care aligns with growing consumer
priorities.
• They leverage e-commerce platforms to reach new customers and expand their online
presence.

4. Market Share:

Beauty:

We are a global market leader amongst the beauty categories in which we compete, including
hair care and skin and personal care. We are a global market leader in the retail hair care market
with nearly 20% global market share primarily behind our Pantene and Head & Shoulders
brands. In skin and personal care, we offer a wide variety of products, ranging from deodorants
to personal cleansing to skin care, such as our Olay brand, which is one of the top facial skin care
brands in the world with nearly 5% global market share.

Grooming:

We are the global market leader in the blades and razors market. Our global blades and razors
market share is more than 60%, primarily behind our Gillette and Venus brands. Our appliances,
such as electric shavers and epilators, are sold primarily under the Braun brand in a number of
markets around the world where we compete against both global and regional competitors. We
hold nearly 25% of the male electric shavers market and over 50% of the female epilators
market.
Health Care:

We compete in oral care and personal health care. In oral care, there are several global
competitors in the market, and we have the number two market share position with nearly 20%
global market share behind our Crest and Oral-B brands. In personal health care, we are a global
market leader among the categories in which we compete, including respiratory treatments,
digestive wellness, vitamins and analgesics behind our Vicks, Metamucil, Pepto-Bismol and
Neurobion brands.

Fabric & Home Care:

This segment is comprised of a variety of fabric care products, including laundry detergents,
additives and fabric enhancers; and home care products, including dishwashing liquids and
detergents, surface cleaners and air fresheners. In fabric care, we generally have the number one
or number two market share position in the markets in which we compete and are the global
market leader with over 35% global market share, primarily behind our Tide, Ariel and Downy
brands. Our global home care market share is about 25% across the categories in which we
compete, primarily behind our Cascade, Dawn, Febreze and Swiffer brands.

Baby, Feminine & Family Care:

In baby care, we are a global market leader and compete mainly in taped diapers, pants and baby
wipes, with more than 20% global market share. We have the number one or number two market
share position in the markets in which we compete, primarily behind our Pampers brand. We are
a global market leader in the feminine care category with over 25% global market share,
primarily behind our Always and Tampax brands. We also compete in the adult incontinence
category in certain markets behind Always Discreet, with over 10% market share in the key
markets in which we compete. Our family care business is predominantly a North American
business comprised primarily of the Bounty paper towel and Charmin toilet paper brands. North
America market shares are over 40% for Bounty and over 25% for Charmin.

5. Competitive Landscape:

Competitive Condition. The markets in which our products are sold are highly competitive. Our
products compete against similar products from many large and small companies, including
well-known global competitors. In many of the markets and industry segments in which we sell
our products, we compete against other branded products as well as retailers' private-label
brands. We are well positioned in the industry segments and markets in which we operate, often
holding a leadership or significant market share position. We support our products with
advertising, promotions and other marketing vehicles to build awareness and trial of our brands
and products in conjunction with our sales force. We believe this combination provides the most
efficient method of marketing for these types of products. Product quality, performance, value
and packaging are also important differentiating factors. Government Regulation. Our Company
is subject to a wide variety of laws and regulations across the countries in which we do business.
In the United States, many of our products and manufacturing operations are subject to one or
more federal or state regulatory agencies, including the U.S. Food and Drug Administration
(FDA), the Environmental Protection Agency (EPA), the Occupational Safety and Health
Administration (OSHA), the Federal Trade Commission (FTC) and the Consumer Product Safety
Commission (CPSC). We are also subject to anti-corruption laws and regulations, such as the
U.S. Foreign Corrupt Practices Act, and antitrust and competition laws and regulations that
govern our dealings with suppliers, customers, competitors and government officials.

In addition, many foreign jurisdictions in which we do business have regulations and regulatory
bodies that govern similar aspects of our operations and products, in some cases to an even more
significant degree. We are also subject to expanding laws and regulations related to
environmental protection and other sustainability-related matters, non-financial reporting and
diligence, labor and employment, trade, taxation and data privacy and protection, including the
European Union’s General Data Protection Regulation (GDPR) and similar regulations in states
within the United States and in countries around the world.
6. Timelines:

1837: The soapmaking firm of Procter & Gamble was founded in Cincinnati by Procter’s
grandfather William Procter, a candlemaker, who joined with James Gamble, an Irish soap
maker, in 1837.

1848: In 1848 Cincinnati was also linked to the major cities of the East via rail, and Procter &
Gamble grew.

1851: Around 1851, when P & G shipments were moving up and down the river and across the
country by rail, the company’s famous moon-and-stars symbol was created.

1854: In 1854 the company leased an office building in downtown Cincinnati.

1859: By 1859, Procter & Gamble reached $1 million in sales.

1860: In 1860 on the brink of the Civil War, two young cousins, James Norris Gamble and
William Alexander Procter (both sons of the founders), traveled to New Orleans to buy as much
rosin as they could.

1869: In 1869 the transcontinental railroad linked the two coasts and opened still more markets
to Procter & Gamble.

1875: In 1875 the company hired its first full-time chemist to work with James Gamble on new
products. In the days before advertising, trademarks were a product’s principal means of
identification, and in 1875 when a Chicago soap maker began using an almost-identical symbol,
P & G sued and won. In 1875 the company hired its first full-time chemist to work with James
Gamble on new products, including a soap that was equal in quality to expensive castile soaps,
but which could be produced less expensively. In 1875 the company hired its first full–time
chemist to work with James Gamble on new products, including a soap that was equal in quality
to expensive castile soaps, but which could be produced less expensively.
1878: Launching Ivory Soap in 1878
1878: P&G introduces White Soap, soon renamed Ivory.

1882: In 1882 it registered its trademark with the United States Patent Office to protect itself
against future copycats.

1883: William Cooper Procter had joined the company in 1883 after his father, William
Alexander Procter, requested that he return from the College of New Jersey (now Princeton
University) just one month before graduation to help with the company’s affairs.

1886: In 1886 P & G opened its new Ivory dale plant on the edge of Cincinnati to keep up with
demand.

1887: At his suggestion, in 1887, Procter & Gamble was the first American company to give a
half-holiday on Saturdays. William Arnett Procter, William Procter's grandson, began a profit-
sharing program for the company's workforce in 1887.

1889: Marketed as a heavier-duty product, the yellow soap helped P&G reach sales of more than
$3 million by 1889.

1902: Meanwhile, new soaps, including P & G White Naphtha, which was introduced in 1902,
kept P & G at the forefront of the cleaning-products industry.

1903: Two years later the company implemented an employee stock-purchase program, which in
1903 was tied to the profit-sharing plan.

1904: In 1904 the company opened its second plant, in Kansas City, Missouri, followed by Port
Ivory on Staten Island, New York.

1921: Chipso soap flakes for industrial laundry machines were introduced in 1921.
1926: In 1926 Camay was introduced and three years later Oxydol joined the P & G line of
cleaning products.

1930: From 1930 until his death four years later, he was chairman of the board.
The company moved into other countries, both in terms of manufacturing and product sales,
becoming an international corporation with its 1930 acquisition of the Thomas Hedley Co.,
based in Newcastle upon Tyne, England.
The emblem changed slightly over the years until 1930, when Cincinnati sculptor Ernest Bruce
Has well refined the emblem to its current form.

1931: Brand management system is formally introduced.

1933: In 1933, Dreft is introduced as the first-ever household synthetic detergent, but research
continues to develop a product that can clean consumer’s toughest stains.

1939: In 1939 Procter & Gamble had 21 programs on the air and spent $9 million.

1946: The company was not ready for the consumer demand for heavy-duty detergent when it
introduced the product in 1946; within two years Tide, backed by a $21 million advertising
budget, was the number one laundry detergent, outselling even the company's own Oxydol and
Duz.

1947: The company was not ready for the consumer demand for heavy-duty detergent when it
introduced the product in 1947; within two years Tide, backed by a $21 million advertising
budget, was the number-one laundry detergent, outselling even the company’s own Oxydol and
Duz.

1955In 1955, Procter & Gamble began selling the first toothpaste to contain fluoride, known as
Crest. In 1955, after five years of research, Procter & Gamble firmly established itself in the
toiletries business with Crest toothpaste. In 1955 it bought the Lexington, Kentucky-based nut
company W. T. Young Foods, and acquired Nebraska Consolidated Mills Company, owner of
the Duncan Hines product line, a year later.
1956: P&G hit its $1 billion sales mark in 1956.
The idea for Pampers came from a Procter & Gamble researcher, Vic Mills, who was inspired
while changing an infant grandchild’s diapers in 1956.

1957: Branching out once again in 1957, the company purchased Charmin Paper Mills and
began manufacturing toilet paper and other paper products.
In 1957 the Charmin Paper Company and the Clorox Chemical Company were also acquired.

1959: Amway history, profile and corporate video Jay Van Andel and Richard DeVos, a pair of
direct sales veterans, launched Amway in 1959.
1960: Once again focusing on laundry, Procter & Gamble began making "Downy" fabric
softener in 1960 and "Bounce" fabric softener sheets.

1961: One of the most revolutionary products to come out on the market was the company’s
Pampers, first test-marketed in 1961.

1967: In a case that found its way to the Supreme Court, Procter & Gamble was finally forced to
divest Clorox in 1967.

1974: Morgens remained CEO until 1974.

1977: Taking over as president and CEO was A.G. Lafley, who had joined the company in June
1977 as a brand assistant for Joy and had most recently been in charge of the global beauty care
unit. In 1977, after three years of test marketing, Procter & Gamble introduced Rely tampons,
which were rapidly accepted in the market as a result of their “super-absorbent” qualities.

1981: In 1981 John G. Smale became CEO of Procter & Gamble.

Procter & Gamble added the Ben Hill Griffin citrus products in 1981 to its Crush International
soft drinks purchase of a year before.

1982: PG added Pepto Bismol and Chloroacetic to its rapidly growing family when it acquired
Norwich-Eaton Pharmaceuticals in 1982. The company also entered the over-the-counter (OTC)
drug market with the 1982 purchase of Norwich-Eaton Pharmaceuticals, makers of Pepto Bismol
and Chloraseptic.

1985: Then, in 1985, the company bought Richardson-Vicks, the makers of Vicks and Nyquil,
for $1.2 billion (its largest purchase yet), as well as the brands Dramamine and Metamucil. In
1985, unable to squelch perennial rumors linking Procter & Gamble’s famous moon-and-stars
logo to Satanism, the company reluctantly removed the logo from product packages.

1987: “The House that Ivory Built: 150 Years of Procter & Gamble,” Advertising Age, August
20, 1987. In 1987, the company restructured its brand-management system into a “matrix
system.” Category managers became responsible for several brands, making them sensitive to the
profits of other Procter & Gamble products in their areas.

1988: In September 1988 Procter & Gamble made its first move into the cosmetics business with
the purchase of Noxell Corporation, maker of Noxema products and Cover Girl cosmetics, in a
$1.3 billion stock swap.

1989: In 1989, Procter & Gamble entered the makeup market when it bought Noxell, the
company that makes CoverGirl and Noxzema, in a $1.34 billion deal.

1990: Former chairman John Smale and Edwin L. Artzt, who replaced Smale in early 1990,
have been quite successful at adapting to new market conditions—container recycling has taken
on new importance at P & G for the 1990s.

1991: While P&G expanded its presence in cosmetics and fragrances through the July 1991
acquisition of the worldwide Max Factor and Betrix lines from Revlon, Inc. for $1.03 billion, it
also divested holdings in some areas it had outgrown. Max Factor and Betrix cosmetic and
fragrance lines are bought from Revlon, Inc.

1992: In 1992 the corporation sold about one-half of its Cellulose & Specialties pulp business to
Weyerhaeuser Co. for $600 million. Meanwhile, Pantene Pro–V was introduced in 1992 and
quickly became the fastest–growing shampoo brand in the world.
1993: Company sales surpassed the $30 billion mark in 1993.

1994: In 1994 P&G entered the European tissue and towel market through the purchase of
Vereinigte Papierwerke Schickedanz AG’s European tissue unit, and added the prestige
fragrance business of Giorgio Beverly Hills, Inc.

1995: In July 1995 Artzt retired, and was replaced as chairman and CEO by Pepper.

1996: In 1996 Procter & Gamble purchased the Eagle Snacks brand line from Anheuser–Busch,
the United States baby wipes brand Baby Fresh, and Latin American brands Lavan San
household cleaner and Magia Blanca bleach. In 1996, P&G again made headlines when the Food
and Drug Administration approved a new product developed by the company, Olestra.

1997: The $2.4 billion program, which culminated in 1997, resulted in annual after–tax savings
of more than $600 million. Company acquires Tambrands, Inc., maker of the Tampax line of
tampons.

1998: Actonel was developed by Procter & Gamble and gained FDA approval in 1998. The
company sold its Duncan Hiñes baking mix line to Aurora Foods of Ohio for $445 million in
1998. But sales stood at just $37.15 billion by 1998, only a 4 percent increase over the previous
year—when 7 percent increases were needed each year.

1999: Among new products introduced in 1999 was Swiffer, an electrostatic dusting mop that
was part of a new category of household product: quick cleaning.

2000: In June 2000, after the company issued its third profit warning in a year, Jager resigned.

2001: 2001: P&G acquires the Clairol hair-care business from Bristol-Myers Squibb Company.
In 2001, Liquid Paper and Gillette's stationery division, Paper Mate, were sold to Newell
Rubbermaid.

2002: The deal, completed in May 2002, was valued at about $900 million.
These two new products helped increase global sales of the Crest brand by 50 percent, propelling
it past the $1 billion mark during fiscal 2002. Jif peanut butter and Crisco shortening brands are
divested.
2003: Company acquires a controlling interest in German hair-care firm Wella AG.

2004: In April 2004 Procter & Gamble reached an agreement to sell its Sunny Delight and
Punica drinks businesses to J.W. Childs Associates LP, a private-equity firm in Boston.
The snacks and beverages unit accounted for only 7 percent of the company's total revenues in
fiscal 2004.

2005: In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer
goods company and placing Unilever into second place.
The companies officially merged on October 1, 2005.Liquid Paper, and Gillette’s stationery
division, Paper Mate were sold to Newell Rubbermaid.
In December 2005, Procter & Gamble’s pharmaceutical division was involved in a research
dispute for Actonel.

2006: In 2006, Procter & Gamble Pharmaceuticals and Sanofi-Aventis filed a lawsuit against
Roche Pharmaceuticals and GlaxoSmithKline claiming that Roche and GSK had made false and
misleading claims about their osteoporosis product, Boniva, which were intended to deprive
P&G and Sanofi of profit.
Experts cast doubt over scientists’ claims for Actonel, Times Higher Education (02/2006)

2008: Tide Dry Cleaners launches in 2008 and is P&G’s big move into the service industry. In
2008, P&G branched into the record business with its sponsorship of Tag Records, as an
endorsement for TAG Body Spray.

2009: On August 25, 2009, the Ireland-based pharmaceutical company Warner Chilcott
announced they had bought P&G’s prescription-drug business for $3.1 billion. In 2009,
established that Estell had been negligent in making misleading claims but that the claims were
not deliberately dishonest.
2012:P&G exited the food business in 2012 when it sold its Pringles snack food business to
Kellogg's for $2.75 billion after the $2.35 billion deal with former suitor Diamond Foods fell
short.

2014: In August 2014, P&G announced it was streamlining the company, dropping around 100
brands and concentrating on the remaining 65, which were producing 95% of the company's
profits. Procter & Gamble was a tier one sponsor of Sochi’s 2014 Winter Olympic Games.

2015
In March 2015, the company divested its Vicks VapoSteam United States liquid inhalant
business to Helen of Troy, part of a brand-restructuring operation.

2016: The sale was completed on October 3, 2016.

2018: Amid the recent concerns parents have voiced on the ingredients in diapers, Pampers
launched Pampers Pure collection in 2018, which is a "natural" diaper alternative.

2019: In 2019, Procter & Gamble recorded more than $67 billion in sales, second to
manufacturing giant, Johnson & Johnson.

2022: Tucker, Thomas; Dougal, April; Salamie, David "The Procter & Gamble Company ."
International Directory of Company Histories. . Encyclopedia.com. (June 21, 2022).
https://www.encyclopedia.com/books/politics-and-business-magazines/procter-gamble-
company-1.
 CRITICAL ANALYSIS OF THEIR ETHICAL CODE
OF CONDUCT

Overview of code of conduct of P&G:

P&G's Ethical Code of Conduct reflects its commitment to integrity, compliance, respect, and
responsibility across all aspects of its business operations. By adhering to these principles, P&G
seeks to build trust with stakeholders, maintain a positive corporate reputation, and contribute to
sustainable growth and social impact.
Key Principles:

1. We Show Respect for All Individuals

• 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.

2. The Interests of the Company and the Individual Are Inseparable

• 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

3. We Are Strategically Focused in Our Work

• 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

4. Innovation is the Cornerstone of Our Success

• 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.

5. We Value Personal Mastery

• 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.

6. We Seek to Be the Best

• 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.

7. We Are Externally Focused

• 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.

8. Mutual Interdependency is a Way of Life

• 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, suppliers, universities and governments.

CORPORATE SOCIAL RESPONSIBILTIY BY P&G

P&G: ENVIRONMENTAL SUSTAINABILITY

P&G’s Ambition 2030 supports our brands’ ability to provide irresistible superiority that is
sustainable to improve lives now and for generations to come. At its foundation is improving the
livelihoods of people across our operations, supply chain, and the communities we serve. It is
built upon the strength of four science-based pillars—Climate, Waste, Water and Nature—where
we can make the biggest difference for the planet and our business. In September 2021, P&G set
a new ambition to achieve net zero greenhouse gas (GHG) emissions across its operations and
supply chain, from raw material to retailer. P&G also shared a Climate Transition Action Plan
which outlines a comprehensive approach to accelerating climate action and the key challenges
ahead. In addition to the details of P&G’s net zero ambition to 2040, the Climate Transition
Action Plan covers the entire lifecycle emissions of our products and packaging, across supply
chain, operations, consumer use of our products, and product end of life.
P&G SURAKSHA INDIA: Slowing the Spread in India

In India, we launched #PGSurakshaIndia, our COVID-19 response and relief program intended
to serve our people, our consumers and our communities. To support the government's vaccine
efforts, we donated money for a million vaccine doses for 500,000 citizens. In addition, we
facilitated vaccination drives for our 5000+ employee workforce in India and their eligible
immediate family members. We also distributed more than 3.5 million health and hygiene
products to those in need. To help control the spread, we installed additional capacity at our
manufacturing sites to produce masks and hand sanitizers. Since the outbreak of the pandemic,
we have donated more than two million masks and hand sanitizers in partnership with the
government and relief organizations. We also partnered with TATA Trusts to expand the
healthcare capacity of hospitals, including enhancing bed capacity, providing ventilators and
radiological equipment. We set up oxygen plants at hospitals and donated oxygen concentrators
to local authorities to support their fight against the pandemic. And we used our marketing
expertise to support public health measures to help flatten the curve and slow the spread of the
virus. Employees also contributed through a fundraiser with partner Round Table India. The
funds raised were disbursed to assist families who lost loved ones to COVID-19. India’s
signature Community Impact program, P&G Shiksha is a decade old program that has helped
build more than 2,300 schools, enabled 50,000 children get an online education during COVID-
19. The film “Munni” is a heart-warming story of the educational dreams fulfilled through this
program.
P&G clear water: The Stories of our Billion Liter Milestone Families

The P&G Children’s Safe Drinking Water Program started as a non-profit initiative in 2004.
Through a diverse network of more than 150 partners, P&G has provided more than 20 billion
liters of clean water to people in need around the world. This interactive map shows where we
are making an impact around the world and shares the stories of many of our billion-liter
milestone families.

P&G: OUR COMMITMENT TO #BECRUELTYFREE

We are calling for an end to all animal testing of cosmetic products globally, and we’re proud to
partner with Humane Society International’s #BeCrueltyFree Campaign to advance that vision.
Our support of #BeCrueltyFree is another step in our long-term commitment to make animal
testing obsolete. Our journey began over 40 years ago through ongoing research, investment and
partnerships to develop and promote the use of alternatives to animal testing. These efforts have
contributed to the greater good, enabling us and others to develop products that have not been
tested on animals. Our contributions include:

• Investing more than $480 million over 40 years in alternatives to animal testing, our
researchers pioneering over 25 non-animal methods, publishing more than 1,000 scientific
articles.
• Partnering with leading international animal welfare organizations, academia, and industry
coalitions to promote use of non-animal, cruelty-free methods around the world.
• Advocating for public use of non-animal methods and adoption by scientists and policy
makers around the world for over 25 years.

Global Recycling Day: P&G Accelerates Towards 2030 Plastic Reduction Goals
On Global Recycling Day, P&G is progressing toward our commitments by reducing plastic
waste, accelerating sustainable packaging, and partnering to improve recycling systems. We
believe we can help unlock more worth from the materials we use every day, long after their first
use. Instead of throwing away used plastic, we can design it to be used over and over again so
that it doesn’t become waste — part of a circular economy. For a circular economy to work
properly, it must be a collective effort. Our brands, suppliers and partners continue to collaborate
on a range of sustainable solutions so that more plastic is collected, recycled and reused.

Corporate Governance Activities of Procter& Gamble

At P&G, our Purpose, Values and Principles (PVPs) are the foundation of everything we do –
this includes Corporate Governance. Corporate Governance is how the management,
shareholders and Board of Directors ensure all investors—both shareholders and creditors—are
protected against managers acting solely in their best interest. Our governance consists of laws,
policies, procedures and practices that protect the well-being of P&G. The policies, procedures
and practices in this section demonstrate how seriously we take corporate governance. Our
management acts as long-term investors because they, like most P&G employees at all levels, are
in fact long-term investors. P&G has a strong history of operating with integrity throughout the
company—at all levels, in all countries, both internally and externally. Our actions and the
actions of all our employees are governed by our Purpose, Values and Principles. The basis for
every decision we make at P&G can be found in our Purpose, Values and Principles—our PVPs.
The clarity and constancy of the Company’s PVPs is the one factor above all others that has
driven the Company’s growth over generations. Our commitment to operate responsibly is
reflected in the steps we have in place to ensure rigorous financial discipline and Corporate
Governance.

• P&G boasts an independent, skilled Board and dedicated Audit Committee (exclusively
independent directors) overseeing financial matters with expertise. They meet regularly with
independent auditors for enhanced governance.
• Robust internal controls guide P&G. Written policies, defined roles, and employee training
ensure authorized transactions, secure assets, and reliable financial reporting, adhering to US
 accounting standards. Continuous monitoring via self-assessment and audits strengthens this
system.
• Rigorous disclosure procedures ensure timely, accurate reporting. A dedicated committee,
staffed by senior executives, evaluates the disclosure implications of key business activities,
bolstering transparency.
• P&G cultivates financial responsibility through employee training programs, emphasizing
discipline in daily and strategic decisions. They prioritize accurate reporting and strong
controls, with the Global Leadership Council actively overseeing financial matters.
• P&G emphasizes ethics through mandatory training on its Worldwide Business Conduct
manual, holding employees personally accountable. This manual outline management and
board's commitment to ethical conduct, adhering to SEC and NYSE regulations.

Board of Directors:

The Board represents and acts on behalf of all shareholders of the Company. The Board, acting
either as a whole or through its committees, is responsible, among other things, for establishing,
and helping the Company achieve business and organizational objectives through oversight,
review and counsel. The Board, acting either as a whole or through its committees, also:

• approves and monitors critical business and financial strategies of the Company;
• reviews and assesses major risks facing the Company and options for their mitigation;
• approves and monitors major corporate actions;
• oversees processes designed to ensure the Company’s and Company employees’ compliance
with applicable laws and regulations and the Company’s Worldwide Business Conduct
Manual, including maintaining a strong compliance culture and risk-based decision-making;
• oversees processes designed to ensure the accuracy and completeness of the Company’s
financial statements;
• monitors the effectiveness of the Company’s internal controls;
• selects, evaluates and sets appropriate compensation for the Company’s Chief Executive
Officer;
• oversees succession planning for the Chief Executive Officer position;
• reviews the recommendations of Company management for, and elects, the Company’s
principal officers; and oversees the compensation of the Company’s principal officers elected
by the Board.
Board Committees

The purpose of Board Committees is to help the Board effectively and efficiently fulfill its
responsibilities, although the Committees do not displace the oversight responsibilities of the
Board as a whole. Committees will report the results of their significant activities to the full
Board or make recommendations to the full Board as appropriate.

Standing committee:

The Board has established four (4) standing Committees of the Board. The Governance & Public
Responsibility Committee will regularly review the Board’s committee structure and make
recommendations to the full Board as needed. The Board may add, eliminate, and change the
Charter or composition of any Committee at any time, except to the extent that such a change
would violate the Company’s Articles, Regulations, By Laws, or the listing standards of the
NYSE. The four (4) standing Committees are the Audit Committee, the Compensation &
Leadership Development Committee, the Governance & Public Responsibility Committee and
the Innovation & Technology Committee.

Audit Committee Financial Expert:

In considering whether a person qualifies as an audit committee financial expert, the Board will
consider all the available facts and circumstances, including without limitation:

• The level of the person’s accounting or financial education; Whether the person is a certified
public accountant, and the length of time that the
• person actively practiced as a certified public accountant; Whether the person is certified or
otherwise identified as having accounting or
• financial expertise by a recognized private body; Whether the person has served as a
principal financial officer, controller or principal
• accounting officer; The person’s specific duties as a public accountant, auditor, principal
financial
• officer, controller, or principal accounting officer; The person’s level of familiarity and
experience with all applicable laws and
• regulations regarding the preparation of financial statements; The level and amount of the
person’s direct experience reviewing, preparing,
• auditing or analyzing financial statements; The person’s past or current membership on one
or more audit committees; The person’s level of familiarity and experience with the use and
analysis of financial statements.
• An understanding of generally accepted accounting principles and financial statements;
• The ability to assess the general application of generally accepted accounting principles in
connection with the accounting for estimates, accruals and reserves;
• Experience preparing, auditing, analyzing or evaluating financial statements that present a
breadth and level of complexity of accounting issues that are generally comparable to the
breadth and complexity of issues that can reasonably be expected to be raised by the
Company’s financial statements, or experience actively supervising one or more persons
engaged in such activities;
• An understanding of internal controls and procedures for financial reporting; and
• An understanding of audit committee functions

Controversies and Awards

The P&G logo is frequently seen on a large number of the everyday products used by the
majority of Americans. Nevertheless, Proctor and Gamble has been embroiled in a good deal of
controversy despite its success and widespread appeal. The massive consumer goods company
Procter & Gamble (P&G) must negotiate a challenging environment where their actions draw
both favorable and unfavorable attention. This is a fair summary of the issues surrounding P&G:

Positive Controversies of Reliance Industries:

Sustainability Initiatives: P&G's goal to achieve zero manufacturing waste to landfill and
reduce greenhouse gas emissions aligns with growing environmental concerns, garnering
positive attention.

Community Development Programs: Their involvement in initiatives like clean water access
and disaster relief projects, partnering with Habitat for Humanity, portrays a commitment to
social responsibility.
Product Innovations: Launching products like Always Infinity Pads with LeakGuard
technology, addressing period poverty, or Crest Sensitivity toothpaste addressing consumer
needs, positions them as responsive to evolving demands.

Employee Engagement: Matching employee donations to charities and volunteer incentives

promote positive engagement and contribute to social causes.

Negative Controversies of Reliance Industries:

TSS:

If you’ve never heard of TSS, you’re not reading enough tampon boxes. Toxic shock syndrome
is associated with the use of tampons, and it’s very rare. However, back in 1980 it wasn’t nearly
as rare. There were several hundred cases of TSS and 38 of those resulted in death. The vast
majority of the complaints filed for TSS were related to P&G Tampons. The company
voluntarily recalled them and removed them from shelves.

Fixed Prices:

In April 2011, Procter & Gamble was fined by the European Commission for participating in a
price-fixing cartel in Europe. A cartel is an agreement among competing firms. During this price-
fixing cartel, Procter & Gamble formed an agreement with Unilever and Henkel to fix the price
of competing products in order to reduce competition and increase profits.

Lobbying Activities:

Lobbying against regulations affecting their products, like plastic bags, sparks controversy about
prioritizing profit over environmental concerns
 .

Recognitions and Awards:

Procter and Gamble (P&G) has received numerous awards and recognitions over the years,
reflecting its strong performance in various areas like innovation, sustainability, corporate social
responsibility, and workplace culture. Here's a glimpse of some notable ones:

Innovation:

• Top 25 Most Innovative Client Companies (2020): The Packaging Innovation Awards
• Best Workplaces for Innovators (2019): Fast Company
• 25 Most Innovative CMOs in the World (2019): Forbes
• 26 Cannes Lions (2017): Recognizing creative excellence in advertising campaigns

Sustainability:

• 100 Best Corporate Citizens (2023): Corporate Responsibility Magazine

• Climate Leadership Award 2017: Organizational Leader: US Environmental Protection
Agency
• 2016 Sustainability Award for Water: The American Forest & Paper Association
• Sustainability Index: Dow Jones
Corporate Social Responsibility:

• Corporate Equality Index: Human Rights Campaign (recognizing LGBTQ+ workplace

equality)
• Top 50 Companies for Diversity: Diversity Inc.
• Top Companies for Executive Women: National Association for Female Executives
• 100 Best Corporate Citizens: Corporate Responsibility Magazine (recognizing overall social
responsibility performance)
• Global Corporate Social Responsibility Silver Award for Product Excellence: Pinnacle Group

Workplace Culture:

• World's Most Admired Companies: Fortune

• Best Places to Work: Glassdoor
• Most Attractive Employers: Universum Global
• Top 50 Companies for Customer Service: The UK's only
independent and most prestigious Customer Service
Excellence Awards

Additional Awards:

• One of the Top Product Suppliers: Advantage Monitor

(recognizing retailer perceptions of manufacturers)
• New Product Pacesetters: IRi, Market research company
• Grocer Gold Awards - Branded Supplier of the Year:
Recognizing collaboration with retail partners

Sources:

• https://us.pg.com/awards-and-recognition/
• Community Impact Stories | Procter and Gamble (pg.com)
• P&G Worldwide Business Conduct Manual (ctfassets.net)
• GUIDELINES_-_Corporate_Governance_2023-04-11.pdf (ctfassets.net)
• P&G 2023 Annual Report (ctfassets.net)
• Procter & Gamble Lobbyists • OpenSecrets