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 Global Imitable/fake products Failed

operation Strong distribution products
network Award-winning
achievements

Rural Market penetration Competition Government

Increasing buyer power Mergers Intervention Increasing material
and acquisition 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