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  1. 1. At P&G, we are focusing our efforts where we can make the most meaningful difference in both environmental and social Sustainability.<br />Our commitment begins with P&G’s Purpose, Values and Principles, in which Sustainability is embedded, and manifests itself in a systemic and long-term approach. We strive to make our actions matter.<br />In 2007, P&G established five strategies for Sustainability and set goals to be achieved by 2012. In March of 2009, in recognition of the progress we’ve made so far and to emphasize our commitment to achieving even more significant wins, we increased each of our goals. It’s a part of P&G’s culture to continuously raise the bar, and our work in Sustainability is no exception.<br />Our five strategies are as follows:<br />Delight the consumer with sustainable innovations that improve the environmental profile of our products.<br />GOAL Develop and market at least $50 billion in cumulative sales of “sustainable innovation products,” which are products that have an improved environmental profile.(1)<br />PROGRESS(in billions of U.S. dollars)Cumulative Salessince July 2007Cumulative sales of sustainable innovation products$13.1<br />Improve the environmental profile of P&G’s own operations.<br />GOAL Deliver an additional 20% reduction (per unit production) in CO2emissions, energy consumption, water consumption and disposed waste from P&G plants, leading to a total reduction over the decade of at least 50%.<br />PROGRESS(percent reduction per unit production)SinceJuly 2007SinceJuly 2002Energy Usage11%48%CO2 Emissions10%52%Waste Disposal30%53%Water Usage13%52%<br />Improve children’s lives through P&G’s social responsibility programs.<br />GOAL Enable 300 million children to Live, Learn and Thrive.(2) Prevent 160 million days of disease and save 20,000 lives by delivering 4 billion liters of clean water in our Children’s Safe Drinking Water program.(3)<br />PROGRESSSinceJuly 2007LIVE, LEARN AND THRIVENumber of Children Reached135 millionCHILDREN’S SAFE DRINKING WATERLiters of Clean Water Delivered930 millionDays of Disease Prevented39 millionLives Saved> 5,200<br />Engage and equip all P&Gers to build Sustainability thinking and practices into their everyday work.<br />Shape the future by working transparently with our stakeholders to enable continued freedom to innovate in a responsible way.<br />(1)<br />Sustainable Innovation Products are included if they have launched in market since July 1, 2007, and have a >10% reduction in one or more of the following indicators without negatively impacting the overall Sustainability profile of the product: A. Energy, B. Water, C. Transportation, D. Amount of material used in packaging or products, E. Substitution of nonrenewable energy or materials with renewable sources.<br />(2)<br />Live, Learn and Thrive (LLT) is P&G’s global cause that focuses our social investments on efforts that improve the lives of children in need ages 0 – 13.<br />(3)<br />Within Live, Learn and Thrive, our signature program is Children’s Safe Drinking Water. Methodology for calculating diarrheal days and mortality was developed with Population Services International and Aquaya Institute. Details are provided in the 2009 Sustainability Report found at www.pg.com/sustainability.<br />Growth strategies paying off at P&G<br />21-Oct-2003<br />Related topics: Financial<br />'Better business plans, closer consumer relationships, tighter customer partnerships, more sustainable growth'. This was the slogan provided by Procter & Gamble's president and chief executive A.G. Lafley in an upbeat address to the company's shareholders at its annual meeting last week.<br />Starting off the address on a high note, Lafley said P&G had "delivered results ahead of growth objectives in fiscal 2003" which he took as confirmation that the company's strategies were working.<br />For fiscal 2002/2003, P&G sales were up 8 per cent, volume was up 8 per cent and net earnings and net earning per share each were up 19 per cent. Core net earnings, which exclude restructuring charges, were up 13 per cent. Core diluted net earnings per share, which exclude restructuring charges, were up 14 per cent.<br />"We've generated nearly $17 billion (€14.55 bn) in free cash flow since fiscal 2000 - two and half times the amount generated in the prior three years," said Lafley. "P&G is performing like a leading company again."<br />Lafley said the most important factor was that growth had accelerated over the past three years. He pointed out that in fiscal 2000, P&G brands were growing share in categories representing less than 40 per cent of company sales. Yet during the last six months of fiscal year 2003, shares grew in categories accounting for nearly 90 per cent of sales.<br />"Building global share at this level is unprecedented in P&G history," Lafley said. "It confirms that P&G's business strategies are working."<br />Lafley noted that 100 per cent of 2002/03 growth was organic - coming from core, established businesses. "Acquisitions are part of P&G's overall growth strategy," he said. "We'll continue to make acquisitions when they fit P&G's sustainable growth strategy and core capabilities. Some of these acquisitions have been and will be substantial - like Wella and Clairol - but the key drivers of sustained growth should come from core businesses, over the long term."<br />According to Lafley the secret to success requires focus on being the best in branding, innovation, and scale. "Three years ago, there were ten P&G brands with a billion dollars or more in sales," Mr. Lafley said. "Today, P&G has 13 billion dollar brands - Crest, Iams, and Olay have joined the club."<br />Creating new brands and categories is also a focus for the company. Lafley cited research provided by Information Resources which revealed that three of the top 10 non-food products introduced in the US last year were P&G products. He said that P&G was multiplying its innovative capability with a 'connect and develop' strategy that links P&G with external innovation partners, adding that P&G's vision was for 50 per cent of all P&G discovery and invention to come from outside the company.<br />Lastly Lafley highlighted the importance of scale. "We're the global leader in all of our four core businesses: laundry, baby care, hair care and feminine protection. With leadership comes scale economics. The company is building even more scale advantage with P&G's global organisation design, and is starting to see the full benefits of this unique structure."<br />"The benefits are tangible," urged Lafley, rounding off with the slogan for next year, "Better business plans, closer consumer relationships, tighter customer partnerships, more sustainable growth."<br />Proctor & Gamble's (PG) Mission Statement<br />PURPOSE We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. 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.VALUESP&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 & Gamble will always be our most important asset.Leadership<br />We are all leaders in our area of responsibility, with a deep commitment to deliver leadership results.<br />We have a clear vision of where we are going.<br />We focus our resources to achieve leadership objectives and strategies.<br />We develop the capability to deliver our strategies and eliminate organizational barriers.<br />Ownership<br />We accept personal accountability to meet our business needs, improve our systems, and help others improve their effectiveness.<br />We all act like owners, treating the Company's assets as our own and behaving with the Company's long-term success in mind.<br />Integrity<br />We always try to do the right thing.<br />We are honest and straightforward with each other.<br />We operate within the letter and spirit of the law.<br />We uphold the values and principles of P&G in every action and decision.<br />We are data-based and intellectually honest in advocating proposals, including recognizing risks.<br />Passion for Winning<br />We are determined to be the best at doing what matters most.<br />We have a healthy dissatisfaction with the status quo.<br />We have a compelling desire to improve and to win in the marketplace.<br />Trust<br />We respect our P&G colleagues, customers, and consumers, and treat them as we want to be treated.<br />We have confidence in each other's capabilities and intentions.<br />We believe that people work best when there is a foundation of trust.<br />OUR PRINCIPLESWe Show Respect for All Individuals<br />We believe that all individuals can and want to contribute to their fullest potential.<br />We value differences.<br />We inspire and enable people to achieve high expectations, standards, and challenging goals.<br />We are honest with people about their performance.<br />The Interests of the Company and the Individual Are Inseparable<br />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.<br />We encourage stock ownership and ownership behavior.<br />We Are Strategically Focused in Our Work<br />We operate against clearly articulated and aligned objectives and strategies.<br />We only do work and only ask for work that adds value to the business.<br />We simplify, standardize, and streamline our current work whenever possible.<br />Innovation Is the Cornerstone of Our Success<br />We place great value on big, new consumer innovations.<br />We challenge convention and reinvent the way we do business to better win in the marketplace.<br />We Are Externally Focused<br />We develop superior understanding of consumers and their needs.<br />We create and deliver products, packaging, and concepts that build winning brand equities.<br />We develop close, mutually productive relationships with our customers and our suppliers.<br />We are good corporate citizens.<br />We Value Personal Mastery<br />We believe it is the responsibility of all individuals to continually develop themselves and others.<br />We encourage and expect outstanding technical mastery and executional excellence.<br />We Seek to Be the Best<br />We strive to be the best in all areas of strategic importance to the Company.<br />We benchmark our performance rigorously versus the very best internally and externally.<br />We learn from both our successes and our failures.<br />Mutual Interdependency Is a Way of Life<br />We work together with confidence and trust across business units, functions, categories, and geographies.<br />We take pride in results from reapplying others' ideas.<br />We build superior relationships with all the parties who contribute to fulfilling our Corporate Purpose, including our customers, suppliers, universities, and governments.<br />Can Kimberly Clark Learn from P&G's Recession Strategy?<br />Follow Trefis<br />See all from Trefis<br />More from Trefis:<br />Green Initiatives at Kimberly-Clark Add to Upside<br />Feminine care a battleground for P&G and Kimberly Clark<br />Designer Diapers Boost P&G, Kimberly Clark<br />Article Tools:<br />Buzz Up!<br />Stumble It<br />Tweet It<br />Facebook<br />LinkedIn<br />Share It<br />Referenced Stocks<br />CL75%Rate It<br />KMB0%Rate It<br />PG100%Rate It<br />UL0%Rate It<br />Posted 1/29/2011 12:30 PM by Trefis Team from  HYPERLINK "http://community.nasdaq.com/articles-by-author.aspx?username=trefis" Trefis in Investing, Investing Ideas, Stocks, US Markets<br />0 comments | Like itDon't like it<br />Referenced Stocks: CL, KMB, PG, UL<br />As the global economy gradually recovers from the recessionary 2008-09, consumer products companies across the globe are implementing measures sustain growth and meet investor expectations.  It comes as no surprise that all the big players such as Procter & Gamble ( PG ), Kimberly Clark ( KMB ), Colgate Palmolive ( CL ) and Unilever (UL ), among others, and have resorted to time-tested strategies to maintain the most crucial metric in personal care industry, their market share.<br />But while P&G continues to beat the market expectations, further raising its outlook for sales growth to 7% for the year ahead, Kimberly Clark issues downside guidance for the full year with sales growth expected to be around 2%. This caught our attention and got us thinking what is it that P&G is doing right?<br />Response to economic downturns<br />While the recent recession was devastating in its scope, economic downturns are no anomalies by themselves.  In fact, businesses with sound fundamentals along with good cash and working capital management often stand to gain in the long term from downturns. Here's how the personal care consumer products companies have responded to the adverse macroeconomic environment.<br />1) All the global players have compensated for low growth in developed markets by focusing on emerging markets in South Asia, Latin America and Eastern Europe, which have been exhibiting double-digit growth rates on account of rising disposable income levels and high population growth rates. While the cash rich players can reasonably target inorganic expansion by acquiring local/regional players amidst lower valuations in general and expensive credit (which restrains the cash starved competitors thereby eliminating competitive bids).<br />2) The cash starved competitors undertake corporate restructuring and cost-cutting initiatives so as to improve operating margins. This might also involve divestiture of non-strategic and less profitable business units and/or businesses with low growth potential. The industry as a whole focuses on consumer promotions (For instance: Buy Two Get one Free) and retracts from advertising and media spending. Research and development too gets allocated lower budget in general.<br />What Makes P&G Different?<br />P&G has focused on offering value-for-money to the consumers who are strained with cash amid rising unemployment and reduced disposable income levels. Offering branded (quality) products at lower price points has helped P&G maintain and even gain market share. With this result, P&G has been exhibiting robust volume growth in excess of 7%, partially compensated by a negative growth in prices (~1%), still leading to an impressive 5%- 6% value growth.<br />Kimberly Clark on the other hand continues to focus on building the brand. Despite having a portfolio of leading baby care and feminine care products, Kimberly Clark has been losing share to private labels and other competitors, as consumer trade down to other lower priced substitutes.  The impact of loss in volumes to private labels lasts much longer than the recession itself since consumers tend to stick to lower-priced products that offer acceptable quality even after the economic conditions improve.<br />Read more: HYPERLINK "http://community.nasdaq.com/News/2011-01/can-kimberly-clark-learn-from-pgs-recession-strategy.aspx?storyid=55354" l "ixzz1E2OVkp3y" http://community.nasdaq.com/News/2011-01/can-kimberly-clark-learn-from-pgs-recession-strategy.aspx?storyid=55354#ixzz1E2OVkp3y<br />Objective<br />OUR PURPOSE<br />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.<br />Read more: http://wiki.answers.com/Q/What_are_the_objectives_of_Procter_and_Gamble#ixzz1E2PlU15l<br />History of p& g<br />Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500 American multinational corporation headquartered in Downtown  HYPERLINK "http://en.wikipedia.org/wiki/Cincinnati" o "Cincinnati" Cincinnati,Ohio[3] that manufactures a wide range of consumer goods. It is 6th in Fortune's Most Admired Companies 2010 list.[4] P&G is credited with many business innovations including brand management and the soap opera.<br />Procter & Gamble is a leading member of the U.S. Global Leadership Coalition, a Washington D.C.-based coalition of over 400 major companies and NGOs that advocates for a larger International Affairs Budget, which funds American diplomatic and development efforts abroad.[5]<br />he Procter & Gamble CompanyTypePublic (NYSE: PG)Dow Jones Industrial Average ComponentIndustryConsumer goodsFounded1837HeadquartersCincinnati, Ohio, U.S.Area servedWorldwideKey peopleBob McDonald(President) & (CEO)ProductsSee List of Procter & Gamble brandsRevenue US$78.9 billion (2010)[1]Operating income $16.13 billion (2009)[1]Net income $12.74 billion (2010)[2]Total assets $134.83 billion (2009)[1]Total equity $63.099 billion (2009)[1]Employees127,000 (2010)Websitepg.com<br />History<br />William Procter, a candlemaker, and James Gamble, a soapmaker, immigrants from England and Ireland, respectively, who had settled earlier in Cincinnati, who met as they married sisters, Olivia and Elizabeth Norris, HYPERLINK "http://en.wikipedia.org/wiki/Procter_%26_Gamble" l "cite_note-5" [6] formed the company initially. Alexander Norris, their father-in law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born.<br />In 1858-1859, sales reached $1 million. By this point, approximately 80 employees worked for Procter & Gamble. During the American Civil War, the company won contracts to supply the Union Army with soap and candles. In addition to the increased profits experienced during the war, the military contracts introduced soldiers from all over the country to Procter & Gamble's products.<br />In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats in water. The company called the soap Ivory. William Arnett Procter, William Procter's grandson, began a profit-sharing program for the company's workforce in 1887. By giving the workers a stake in the company, he correctly assumed that they would be less likely to go on strike.<br />The company began to build factories in other locations in the United States because the demand for products had outgrown the capacity of the Cincinnati facilities. The company's leaders began to diversify its products as well and, in 1911, began producing Crisco, a shortening made of vegetable oils rather than animal fats. As radio became more popular in the 1920s and 1930s, the company sponsored a number of radio programs. As a result, these shows often became commonly known as "soap operas".<br />Procter & Gamble headquarters inDowntown Cincinnati, Ohio<br />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. Procter & Gamble maintained a strong link to the North East of England after this acquisition. Numerous new products and brand names were introduced over time, and Procter & Gamble began branching out into new areas. The company introduced "Tide" laundry detergent in 1946 and " HYPERLINK "http://en.wikipedia.org/wiki/Prell" o "Prell" Prell" shampoo in 1947. In 1955, Procter & Gamble began selling the first toothpaste to contain fluoride, known as "Crest". Branching out once again in 1957, the company purchasedCharmin Paper Mills and began manufacturing toilet paper and other paper products. Once again focusing on laundry, Procter & Gamble began making "Downy" fabric softener in 1960 and "Bounce" fabric softener sheets in 1972. One of the most revolutionary products to come out on the market was the company's "Pampers", first test-marketed in 1961. Prior to this point disposable diapers were not popular, althoughJohnson & Johnson had developed a product called "Chux". Babies always wore cloth diapers, which were leaky and labor intensive to wash. Pampers provided a convenient alternative, albeit at the environmental cost of more waste requiring landfilling.<br />Procter & Gamble acquired a number of other companies that diversified its product line and significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's Old Spice, Max Factor, and the  HYPERLINK "http://en.wikipedia.org/wiki/Iams" o "Iams" Iams Company, among others. In 1994, the company made headlines for big losses resulting from leveraged positions in interest rate derivatives, and subsequently sued Bankers Trust for fraud; this placed their management in the unusual position of testifying in court that they had entered into transactions that they were not capable of understanding. In 1996, Procter & Gamble again made headlines when the Food and Drug Administration approved a new product developed by the company, Olestra. Also known by its brand nameOlean, Olestra is a lower-calorie substitute for fat in cooking potato chips and other snacks that during its development stages is known to have caused anal leakage and gastrointestinal difficulties in humans.<br />Procter & Gamble has dramatically expanded throughout its history, but its headquarters still remains in Cincinnati.<br />In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods company and placing Unilever into second place. This added brands such as Gillette razors, Duracell, Braun, and Oral-B to their stable. The acquisition was approved by the European Union and the Federal Trade Commission, with conditions to a spinoff of certain overlapping brands. P&G agreed to sell its SpinBrush battery-operated electric toothbrush business to Church & Dwight. It also divested Gillette's oral-care toothpaste line, Rembrandt. The deodorant brands Right Guard, Soft & Dri, and Dry Idea were sold to Dial Corporation.[7] The companies officially merged on October 1, 2005. Liquid Paper, and Gillette's stationery division, Paper Mate were sold to Newell Rubbermaid. In 2008, P&G branched into the record business with its sponsorship of Tag Records, as an endorsement for TAG Body Spray.[8]<br />P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study.[9] For example, P&G's corporate strategists must account for the likelihood of one of their products cannibalizing the sales of another.[10]<br />On August 24, 2009, the Irish-based pharmaceutical company Warner Chilcott announced they had bought P&G's prescription-drug business for $3.1 billion.[11][12]<br />[edit]<br />