1

Topic :- BUSINESS ETHICS

(P&G)
2 INTRODUCTION

Ethics is a set of rules that define right and wrong conduct .

Business ethics can be defined as written and

unwritten code of principles and values
that governs decision and action within a
company.
 In business world , the organization culture set of standards for
determining the difference between good & bad decision making
and behavior.
 We would like to discuss about the ethics of the organization
P&G(PROCTER & GAMBLE)
3 NEED OF BUSINESS ETHICS

Stop business malpractices

Improve consumer confidence
Protecting consumer rights
Create good image of business
Smooth functioning of business
Consumer movement
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5 COMPANY PROFILE

 Name : Procter & Gamble Ltd. (P & G)

 Type : Public
 Industry : Consumer Goods
 Founded : 31st October , 1837
 Founder : William Procter & James Gamble
 Products : 1. Cleaning agents
2.Personal care products
3.Beauty Care Products
4.Personal Healthcare Products
Diagnostics (Joint Venture)
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INTEGRITY LEADERSH
IP

VALUES
TRUST
OWNERSH
IP

PASSION
OF
WINNING
7 PRINCIPLES

• Show Respect for All Individuals- Inspire & enable people to achieve high expectations
standards and challenging goals. They are honest with people about their performance.

• The Interests of the Company and the Individual are Inseparable: Believe that doing
what is right for the business will lead to mutual success.

• We are Externally Focused: Develop superior understanding of consumers and their needs and also
incorporate sustainability.

• Value Personal Mastery: Believes in development of every employee and hence encourages technical
and executional excellence.

• Mutual Interdependency is a Way of Life: Build superior relationships with all parties
who contribute to fulfilling the corporate purpose.
8 POLICIES

RESPECT TO YHE GOVERNMENT AND THE LAW

 Company makes sure that every employee should be able to answer “yes”
to the following questions before taking action:

• IS THIS ACTION THE RIGHT THING TO DO?

• WOULD THIS ACTION WITHSTAND PUBLIC SCRUNITY?

• WILL THIS ACTION UPHOLD P&G REPUTATION AS AN

ETHICAL COMPANY?

If the answers are not an unqualified ‘Yes’ we don’t do it.

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A . Accuracy of Company Records

 Produce reliable and accurate reports to Stakeholders and Management

 Not condone concealing any payment
 Maintain Disclosure Control.

B . Antitrust Policy and Compliance Guidelines

 Strictly compliance with antitrust laws and anti-monopoly laws of all countries
 Company’s general rule “NO CONTACT WITH COMPETITORS”.

C . Securities Trading

 Company do not trade in P&G Securities or those of any other company on the
basis of material Non public Information acquired through employement.
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D. Antitrust policy and compliance guidelines
 To prohibit agreements among companies
 NO CONTACT WITH COMPETITORS
E. Lobbying
 Reviewed with subsidiary management and legal counsel .
F. Political contribution
 Political campaigning ,political fundraising
 Permission by Company`s Ethics Committee.
G. Transacting international business
 Special laws and regulations for International trading
 Anti-boycott and international embargo regulations
11 RESPECT IN THE WORKPLACE
Personal Behavior in the Workplace.
Child Labour and Worker Exploitation Policy.
Health, Safety and Environmental Policies.
Wage and Hour Practices Safety & Health Policy.
Environmental Quality Policy.
HIV/AIDS Policy.
12 RESPECT IN THE MARKETPLACE

• Product safety.
• Prohibition to bribery and improper business dealings.
• Fair value dealings with Suppliers and Customers.
• Confidentiality and Consumer privacy.
• Communicating with the Media.
• Research involving Animals.
13 P&G’s sustainability history

• In 1952, the focus lay on charity and ecology; the company established the
P&G Fund for the distribution of money to a U.S. charity.
• In the mid-60s, P&G switched to biodegradable anionic surfactant, and the
use of linear alkylbenzene sulfonate began.
• Since 2012, P&G augmented the use of recycled raw materials by 39% and
reduced generated waste by 8%. P&G’s brand Tide is a relevant example.
The company began producing new Tide bottles from old bottles
approximately 20 years ago and helped popularise recycling in North
America.
• P&G works with large and small palm plantation owners across Malaysia.
Thus, in 2010, P&G began the intensive work of tracing its complete supply
chain by partnering with the Malaysia Institute for Supply Chain Innovation
(P&G, 2010).
14 CASE STUDY
 For the past 60 years, P&G has committed to creating an environment that
includes social and environmental goals in their business conduct. Despite
these consistent efforts for sustainability at P&G, in 2013 and 2014, the
media repeatedly reported that P&G and many other companies were
sourcing palm oil from suppliers connected to widespread forest
devastation (Greenpeace, 2014), done to create land for palm oil
plantations.

 In 2013, Greenpeace began investigating P&G’s supply chain for more

than a year and found that an orangutan habitat was being cleared in a
plantation linked to P&G’s supply chain.

 In March 2014, P&G appeared in numerous negative articles in the media

due to its old palm oil sourcing practices. Nevertheless, P&G demonstrated
its commitment to change these practices by speaking with Greenpeace
and other stakeholders regarding rainforest preservation, thus, setting an
example for others to follow . , P&G said it had eliminated deforestation
from all of its palm oil sourcing practices and announced a non-
deforestation policy for all of its products
15 Where does P&G stand today?

 Powering all its plants with 100% renewable energy as part of

the climate pledge; P&G agreed to achieve 30% renewable
energy to power its plants globally by 2020, with a long-term
vision of using 100% renewable energy (Brunsman, 2015).
 Using 100% renewable or recycled materials for all products
and packaging.
 Having zero consumers or manufacturing waste goes to
landfills until 2020.
 Designing products that delight consumers while maximising
the conservation of resources.
16 SOURCES OF INFORMANTION:-

 Principles and Practice of Management – L M Prasad

 https://us.pg.com/who-we-are/
17 CONCLUSION

Ethics are important not only

in business but in all aspects
of life because it is an
essential part of foundation
on which a civilized society is
build. A business or society
that lacks ethical principles
are bound to fail sooner or
later.