The document discusses Procter & Gamble's efforts towards promoting sustainable development. It describes how P&G integrates environmental protection, economic development, and social responsibility to balance the three pillars of sustainability. The company focuses on providing basic needs to developing countries, improving manufacturing efficiency, and developing products that raise quality of life. P&G's initiatives in areas like healthcare, hygiene, and resource conservation demonstrate its commitment to sustainable development goals. The case shows how large corporations can successfully align business interests with environmental and social objectives.
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INTRODUCTION
The case gives us insight about how sustainable development can be done efficiently by the
companies in today’s scenario. There is strong need of aligning the efforts of all the big players in
the market towards sustainable development. Firstly Sustainable Development is not only limited
in doing some CSR activities or following various laws fixed by the Government but it is broadly
related to “How” one should go about practicing it seriously. P&G is one of those Companies
which is sincerely putting its efforts for Sustainable Development worldwide.
The main issue that is needed to be resolved today is “How we can provide the basic living
necessary for a human being to survive”? Do we have enough resources which will cater their
needs and wants? This can only be answered only by focusing on three basic elements which will
ultimately leads to Sustainable Development, and here P&G did the same. P&G’s approach has
been to meet new and existing consumer demands through a responsible attitude towards methods
of supply. The approach involves integrating the three elements:
Environment Protection
Economic Development
Social Responsibility.
The inter-relationship of the three elements is best illustrated as a three-legged stool:
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For Sustainable Development these 3 elements are necessary. One cannot only work environment
protection or social responsibility but one have to focus on all the 3 elements only than the true
meaning and sense of Sustainable Development can be achieved.
P&G has made some excellent efforts for this matter. According to them to provide the population
with basic needs one should overcome one of the biggest and only barriers that is Poverty. If we
are successful in eliminating this factor then Sustainable Development is not so far away. If all of
us will do our bit nothing is impossible and P&G has proved it by catering basic needs to poor
countries like Senegal by their various initiatives like Roll Back Malaria, Polio Eradication and
Stop Tuberculosis.
FINDINGS
P&G is a global company employing over 100,000 people worldwide.
Brands are produced in nearly 130 plants around the world and the majority of raw
materials are purchased locally in regions where products are manufactured.
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P&G contributes taxes and benefits where it operates and its successes are shared through
increasing shareholder value, local charitable donations and the opportunity to access a
wider range of products and services.
P&G is working really hard to attain and promote “Sustainable Development”, integrating
activities in line with Environmental Protection, Social Responsibility and Economic
Development.
P&G’s systematic approach towards reducing environmental impact has improved its
manufacturing efficiency.
The company’s use of energy is nine times more efficient than in 1985.
Today, P&G is able to produce 50% more product output per unit of waste water than in
1990.
Moreover, the shift away from coal to cleaner fuel has helped P&G to reduce CO2
production by three and a half fold per ton of production.
Innovations in detergents have allowed the wash temperature across Europe to be lowered
by around 15°C, leading to a reduction in household energy use.
Reducing the average wash temperature has been equivalent to saving 1.5 Megawatt hours
of energy per year in the UK alone i.e. enough energy to heat around 200,000 homes by
gas central heating for one year.
For the second year running P&G holds first place within the Dow Jones Sustainability
Index ‘non-durable household products’ group and reports its work annually under the
Global Reporting Initiative (GRI) guidelines.
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ANALYSIS
The information presented in the report on which we have done our analysis was obtained by doing
secondary research. Research methods like questionnaires and FGD were not suitable for this
topic, as it was not something a layman would know about. As we could not get access to contact
any of the P&G employees, we had to rely on considerably reliable secondary data to do our
analysis.
Sustainable development has been defined in many ways, but the most frequently quoted definition
is from Our Common Future. "Sustainable development is development that meets the needs of
the present without compromising the ability of future generations to meet their own needs. It
contains within it two key concepts:
The concept of needs, in particular the essential needs of the world's poor, to which
overriding priority should be given; and
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The idea of limitations imposed by the state of technology and social organization on the
environment's ability to meet present and future needs."
Based on the secondary research we have found that P&G have devoted itself whole heartedly in
sustainable development and is playing a crucial role in developing products that raise their quality
of life of life of people under poverty line. Two key determinants of quality of life are:
o Access to clean water
o Standards of health and hygiene.
Focusing on the same, P&G developed Fairy Liquid Extra Hygiene, an antibacterial
dishwashing liquid, is playing an important role in helping to control bacteria when used
in conjunction with good household hygiene practice.
Together with this, in 1999, P&G in Spain and Portugal worked with UNICEF to buy one
dose of BCG vaccine for every bottle of Fairy sold to Iberian consumers. The outcome
was more than 3 million vaccines for children in Senegal, which is one of the poorest
countries of the world and with a high incidence of tuberculosis.
The Fairy programme was so successful that it was reapplied in the UK, which managed
to raise an additional 4 million vaccines for UNICEF. Spain and Portugal repeated the
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programme in 2000 and raised a further 4 million vaccines, a total of over 11 million
children protected from tuberculosis.
P&G have diversified its focus areas of the company to such aspects which speaks the seriousness
of P&G's effort to stick to its core idea of sustainable development.
Conservation of Resources
Using less energy, water, and materials when we make our products and requiring fewer
resources when they are used in the home.
Designing and manufacturing products that maximize the conservation of resources
Renewable Resources
Increasing the use of sustainably sourced, renewable materials and renewable energy in
our products and operations.
Using 100% renewable or recycled materials in all products and packaging
Powering our plants with 100% renewable energy
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Worth from Waste
Identifying ways to eliminate waste at the end of life, so that all manufacturing and
consumer waste has value through recycling, reuse, or conversion to energy.
Having zero consumer and manufacturing waste going to landfills.
SUGGESTIONS
As it was mentioned in the case that P&G is contributing towards sustainable development
in terms of economic development, better quality of life and improving standard of living.
But most of the people are not aware of the fact that what efforts the company is making
to improve globally sound.
Now, in order making people aware P&G should go for communicating to the world
through marketing channels like advertisements, bill boards, newspaper and word of
mouth.
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P&G must focus on building more research and development centers across various cities
in order to ensure better quality of life for everyone so that sustainable development can be
achieved.
Using less energy, water, and materials when we make our products and requiring fewer
resources when they are used in the home.
Increasing the use of sustainably sourced, renewable materials and renewable energy in
P&G’s products and operations.
Identifying ways to eliminate waste at the end of life, so that all manufacturing and
consumer waste has value through recycling, reuse, or conversion to energy.
CONCLUSION
The case highlights P&G's dedication and constant devotion to cling to the idea of sustainable
development to ensure that the resources of the planet is not only enjoyed by us- the current
generation, butthe same can be equally shared with the coming generation as well. P&G has
received external recognition for its approach to sustainable development. For the second year
running P&G holds first place within the Dow Jones Sustainability Index ‘non durable household
products’ group and reports its work annually under the Global Reporting Initiative (GRI)
guidelines.
This case study illustrates how P&G has innovated to develop a range of products and services
that are helping to provide a better quality of life for everyone, as well as business opportunities
for itself. It demonstrates that it is perfectly possible for companies that take environmental
protection, social responsibility and economic development seriously not only to survive, but to
flourish. Hence if P&G can take initiative to serve the world population, anyone can do achieve
the true meaning of Sustainable Development.