Procter & Gamble CSR

RUNNING HEAD: CSR - PROCTOR AND GAMBLE 1
University of Maryland University College
Corporate Social Responsibility (CSR) Highlight: Proctor and Gamble
For
Dr. Barnard
DMBA 610
Asad Zaman
Submitted: April 26, 2015
Table of Contents
Introduction....................................................................................................................3-3
Corporate Social Responsibility: Definition...............4-Error! Bookmark not defined.

Proctor & Gamble: A Global Player ............................................................................... 5
Proctor and Gamble: Beginnings .................................................................................5-6
Proctor and Gamble: Brands........................................................................................6-7
Proctor and Gamble: Leadership and Business Units ..................................................... 7
Purpose: Mission Statement............................................................................................ 7
Sustainability: CSR Beginnings...................................................................................7-8
Establishing CSR .........................................................................................................8-12
Initiatives..................................................................................................................12-13
Successes..................................................................................................................13-16
P&G Corporate Social Responsibility ...........................Error! Bookmark not defined.
Environment Issues...................................................18-Error! Bookmark not defined.
P&G Suite alleges discrimination................................................................................. 19
Global law and regulations ........................................................................................... 19
Global Outreach............................................................................................................ 20
Conclusion ....................................................................................................................... 21
References...................................................................................................................22-24

Introduction
Today’s global business enterprises are vastly different from the businesses formed prior to
the beginning of the 21st
century. Compared to humankind’s beginnings of conducting trade and
business transactions previously, today’s methods of conducting business and the way that business
relationships are formed require strategies and that serve to satisfy many stakeholders. These
strategies include methods to lower costs and increase market share. Businesses have begun to
orchestrate cost effective means in order to buy, sell, or transfer goods and services in this global
realm with profitability as the primary goal.
The business climate of today includes many businesses spread across the globe.
Globalization, a word that has taken the business world by storm has caused a dramatic shift in
business strategies compared to the simplistic and humble beginnings of business trade many years
ago. Businesses are conducting more trade on a global scale that is helping to fuel extreme
competiveness in the business market (McConnell & Brue, 2008, p. 99).
With globalization, businesses are invoking a global and collaborative method of conducting
business, which includes “industry, commerce, communication, travel, and culture” with other
nations, and by virtue of globalizations’ competitive nature, has also created a panacea for itself
(McConnell & Brue, 2008, p. 99).
This globalization panacea has created a desire for global businesses to achieve profitability
while at the same time attempting to cut costs. Sometimes, the results of these competitive business
strategies can be disastrous. This new and modern marketplace, a product of globalization, has
caused some companies to outsource and manufacture products offshore to increase profits, despite
unsafe and poor work conditions of the employees working in the outsourced country. Some
companies fail to see or ignore the hazardous work conditions those employees are subjected to.

This paper will evaluate how one company, Proctor and Gamble, created a Corporate Social
Responsibility (CSR) program in the midst of thriving and ever expanding globalization co-ops, and
evaluate its successes and failures related to its CSR attempts. Furthermore, an exploration of how
P&G applies ethical and moral reasoning behind its CSR policies. How they positively or negatively
affect stakeholders, including those employees in the outsourced locations. Additionally, this paper
will explore Proctor and Gamble beginnings, its CSR failures and successes, and where they stand in
today’s society today and where they appear to be heading in the future.
Corporate Social Responsibility: A Definition
Corporate Social Responsibility otherwise known as CSRis a common term, which embodies
the ethical and moral values and standards of an organization and how those aspects are applied by
the business in the context of executing their business operations. There are many factors which can
influence a business to adopt practical CSR standards for itself while at the same time demonstrating
an ethical appearance which could positively affect or influence its stakeholders; from customers to
the shareholders. However, how does that business deal with the co-ops; those other businesses that
are responsible for actually manufacturing its products or the assembly of components which support
the businesses in terms of employee working conditions, health care, employee rights, and a slew of
other factors which can add to or detract from an employee’s well-being? Due to globalization, the
answer to this question is mostly applicable to businesses in other countries that are providing a
product or service for the main business in another country.
According to Werther and Chandler (2006, p. 7) CSR can be defined as a “broad concept that
businesses are more than just profit-seeking entities and, therefore, also have an obligation to
benefit society” (Werther & Chandler, 2006, p. 7). When a business embraces CSR as an aspect of its
identity, it is also creating atmospherics in terms of how society perceives that business. The

perception is weighted against the company’s values in terms of how it achieves profitability and
success.
Further, according to Daft (2008, p. 150) CSR can also be defined as a means to determine
“right from wrong and doing right” in order to “contribute to the welfare and interests of society as
well as the organization” (Daft, 2008, p. 150). There are various levels of the interpretation of CSR;
however, when a business lacks CSR or does not adhere to societal norms concerning ethics and
values, then all stakeholders may be negatively affected.
According to Chernev and Blair (2015) “research” conducted on the subject of corporate
socially responsible businesses revealed “socially responsible firms are likely to deliver superior
financial performance” and indicates that there is a positive correlation between good corporate
social responsibility acts and the businesses profitability (Cherney & Blair, 2015).
Furthermore, Green and Peloza (2011) indicated in previous surveys “that a company’s reputation for
social responsibility tends to decrease consumers price sensitivity and increase their brand loyalty”
(Green and Peloza 2011; Marin, Ruiz, and Rubio 2009).
Proctor and Gamble: A Global Player
Proctor and Gamble: Beginnings
The story of how Proctor and Gamble began is an interesting one. According to the Proctor
and Gamble corporate history web site (2012) “Procter Meets Gamble In 1837, William Procter and
James Gamble signed a partnership agreement formalizing The Procter & Gamble Company, with
combined total assets of $7,192.24” (Proctor & Gamble, 2012).
The beginnings are actually more in depth compared to the history indicated on the Proctor
and Gamble website. William Bell was a soap manufacturer who mentored James Gamble, the son of
Irish immigrants who settled in America because of financial hardships in Ireland. After James

became ill, the family stopped in Cincinnati, Ohio and made that their home after James’s recovery
and the great hospitality experienced by them from the town (Proctor and Gamble, 2015).
After eight years of mentoring by William Bell to James Gamble, James went into business
for himself in 1828 with Hiriam Knowlton. Thus, a formal soap manufacturing business was created
in Cincinnati; however, just down the road, another soap manufacturer, managed by William Proctor
was in direct competition with James Gamble business model (Proctor & Gamble, 2015).
Interestingly, James married Elizabeth Ann Norris and William Proctor married Olivia Norris ,
Elizabeth’s sister, thus creating an indirect family competitive business model. Alexander Norris,
William Proctor and James Gamble’s father in-law, suggested that they both go into business
together and in 1837 the official partnership of Proctor and Gamble began (Proctor & Gamble, 2015).
Today, Proctor and Gamble is a multibillion-dollar global corporation with presence in many
countries. Proctor and Gamble is a publicly traded Fortune 500 company with approximately $83
billion dollars in fiscal year 2014 sales (Proctor & Gamble, 2015).
Proctor and Gamble: Brands
Proctor and Gamble has 23 $1 billion dollar brands with annual sales exceeding $1 billion to
$10 billion and above in several of those brands. Additionally, another 14 brands count for sales in
the $500 million to $1 billion range. According to Proctor and Gamble (2015), many of the 23 $1
billion dollar and above brands and nearly the entire $1 billion dollar and below brands are among
the top one or two spots within the brands segment area. Further, the top brands show evidence of
continued growth with increased valuation in terms of revenue opportunity (Proctor & Gamble,
2015).
Due to Proctor and Gambles vast branding in many market segments, the business provides
approximately “5 billion people” globally with opportunities to use its brands (Proctor & Gamble,
2015). These brands include; “Always, Ambi-Pur, Ariel, Bounty, Charmin, Crest, Dawn, Downy,

Fairy, Febreze, Gain, Gillette, Head & Shoulders, Lenor, Olay, Oral-B, Pampers, Pantene, SK-II,
Tide, Vicks, Wella, and Whisper” (Proctor &Gamble, 2015).
Proctor and Gamble: Leadership and Business Units
P&G’s leadership consists of the Company’s Chairman of the board and Chief Executive
Officer (CE), Mr. A.G. Lafley and elected board members with one-year terms.
Proctor and Gamble’s business units combined to form four globally focused sectors in order
to improve its business efficiencies and attain better performance. The individual brands within each
businesses sector are focused on sharing technologies, improving consumer confidence, and
overcoming competition. Proctor and Gamble’s four global focus sectors include “global beauty”,
“global baby, feminine and family care”, “global fabric and home care”, and “global health and
grooming” (Proctor & Gamble, 2015).
Purpose: Mission Statement
P&G has combined its mission statement along with its purpose. The combination of these
two create a purpose statement that enables others to view how P&G services and products will
provided to others and as an enabling component to draw customers to P&G for other products. The
Proctor and Gamble (2015) purpose statement indicates:
“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”
(Proctor & Gamble, 2015).
Sustainability: CSR Beginnings
P&G has implemented a business strategy, which takes into account the health of the
environment and the employees and population in those locations where P&G operates which are

affected by environmental factors. P&G claims that it develops “sustainable products” and that it
operates “responsibility” within the “supply chain” and that P&G strives at “treating our employees
fairly” (P&G, 2015). Additionally, P&G also asserts it provides “health and hygiene education to
children around the world” and is able to respond “to natural disasters” (P&G, 2015). Furthermore,
P&G also asserts that they also “have both a responsibility and an opportunity to do the right thing
and create change” (P&G, 2015).
Establishing CSR at Proctor and Gamble
Proctor and Gamble devotes a company website to social responsibility and environmental
sustainability. The company’s social obligations are worldwide, beginning with its employees and
extending throughout their global industry and supply chain. It is Proctor and Gamble’s ambition to
achieve their 18 environmental sustainability goals by 2020 (P&G, environmental sustainability,
2015). In addition to environmental sustainment and the basic social responsibilities for safety an
economical enhancement, the company has activated policies to combat human rights violations and
conflict mineral violence.
According to Proctor and Gamble’s Executive Sponsor of Global Sustainability, Martin Riant,
the company educates consumers to engage in cold water washing that will in turn reduce energy
consumption and carbon emissions (Proctor & Gamble; Sustainability Report, 2014). While
encouraging ways for everyone to take part in global sustainment of the environment the company
also provides humanitarian assistance to populations in need. The Proctor and Gamble Safe Drinking
Water Program has delivered more over 72 billion gallons of water and saved as many as 42
thousand lives (Proctor & Gamble; Sustainability Report, 2014, p. 3). The company establishes
sustainment and humanitarian programs through collaborative efforts with industry partners and
experts, nongovernmental organizations (NGO), and the academic community (Proctor & Gamble;
Sustainability Report, 2014).

Proctor and Gamble has acknowledged their role in preventing human rights violations such
as human trafficking, slavery, and conflict mineral violence. The supply chain is filled with
numerous vulnerabilities and opportunities for human rights violations to occur. Understanding that
a company in underprivileged regions may serve as a catalyst for human trafficking and slavery,
Proctor and Gamble has placed policies and controls ensuring their operations do not provoke nor
tolerate human rights violations (Proctor and Gamble; policies and practices, 2015). Proctor and
Gamble submit company support and compliance with the International Bill of Human Rights and
International Labor Organization (ILO) in a global effort to prevent human rights violations (P&G,
Human Rights Policy Statement, 2014). The company enforces respect for human rights throughout
its policies and controls and commits “Due Diligence” observation over its supply chain to prevent
violations (P&G, Human Rights Policy Statement, 2014). Furthermore, Proctor and Gamble hold
supply chain stakeholders accountable by routinely inspecting them with third party human rights
agencies (P&G, Human Rights Policy Statement, 2014).
Proctor and Gamble complies with the California Transparency in Supply Chains Act of
2010 where the company engages in supply chain verification and auditing for risks of human
trafficking and slavery in accordance with the U.S. Department of Labor’s Bureau of International
Labor Affairs (P&G, California Transparency Act, 2015). Additionally, P&G trains managers
involved in the supply chain for detection in human trafficking and slavery and in the mitigation of
such risks within the supply chain for which they are involved. It also requires third party audits of
facilities and supply chains; though it is notable the audits are pre-announced (P&G, California
Transparency Act, 2015).
Proctor and Gamble works to ensure conflict minerals, such as those funding or exciting
illegal war groups in regions of Central Africa, are not included in the supply chain. The company
publishes an annual Conflict Minerals Report that is posted to their website for public review.

Additionally, Proctor and Gamble strives to ensure suppliers are operating within international law
and internal company policy directives by installing controls to monitor and mitigate risk factors
contributing to conflict mineral adversities (Proctor & Gamble; Conflict Minerals Report, 2013).
According to the 2013 report there have been no grievances or occurrences reported. Proctor and
Gamble’s “Due Diligence Team” is a multidisciplinary collaboration of corporate members with a
specialized responsibility to observe supply chain activity at risk for mineral conflict vulnerabilities
(Proctor & Gamble; Conflict Minerals Report, 2013).
The company also seeks to conserve environmental resources by using less water and
materials, incorporating renewable resources, and replacing waste at the end of life of a product with
a renewable resource (P&G, environmental sustainability, 2015). According to Proctor and Gamble’s
Worldwide Business Conduct Manual, “all products and packaging must be safe for the consumer
and the environment” (2010, p. 21). Proctor and Gamble has set a timeline for sustainability for the
year 2020. Sustainability goals include; powering plants with 100% renewable energy, using 100%
renewable packaging, no consumer or manufacturer waste to landfills, reduce carbon footprint by
20% per unit of production, reducing industrial related transportation, and several other pre-existing
sustainment goals (P&G, environmental sustainability, 2015).
Company policies are in place for climate change, environmental quality, wood pulp,
deforestation, palm oil, and water (Proctor and Gamble; policies and practices, 2015). Furthermore,
Proctor & Gamble discloses energy use and greenhouse gas emissions to the public through an
Annual Sustainability Report. However, sustainment and conservation efforts are also extended to
the public where a common use of energy sparing, sustainable, and renewables are key factors in
what Proctor & Gamble describes as “global citizenship” (Proctor and Gamble; policies and practices,
2015).

Animal Welfare and Alternatives is a program where Proctor and Gamble has invested over
$370 million and forty years of research in order to eliminate animal testing (Proctor & Gamble;
policies and practices, 2015).Accordingly, the company has developed over fifty alternative, non-
animal testing systems. These efforts began in the 1970’s when P&G reduced duplicate testing on
animals by utilizing databases to store scientific data. Later in the 1980’s, the company invested in
state-of-the art laboratories intent on programs focused on reducing animal testing-innovations
continued in the 1990’s, where P&G received awards from the Humane Society of the United States
(HSUS) and the John Hopkins Center for Alternatives to Animal Testing (Proctor & Gamble;
policies and practices, 2015). Furthermore, P&G testified scientific advancements in alternative
testing to congress in order to obtain federal funding while securing memberships with HSUS,
National Institute of Health, and Animal Rights International (Proctor & Gamble; policies and
practices, 2015). In the 2000’s, P&G teamed with the European Centre for the Validation of
Alternative Methods (ECVAM) to eliminate toxicity testing on animals (Proctor & Gamble; policies
and practices, 2015).
In 2011 and 2014, P&G sponsored the 8th and 9th World Congress on Alternatives and
Animal use in Life Science (Proctor & Gamble, 2015). Finally, post 2010, P&G worked diligently to
develop a ground breaking non animal skin test system called Direct Peptide Reactivity Assay
(DPRA), which was finally adopted by the international Organization for Economic Cooperation and
Development in 2015 (Proctor & Gamble; 2015). In addition to ECVAM and HSUS, P&G has
membership with the Interagency Coordinating Committee on the Validation of Alternative Methods
(ICCVAM), a consortium of fifteen U.S. regulatory and research agencies as well as several
European Union science organizations (Proctor & Gamble; policies and practices, 2015).
In 1980, Proctor and Gamble swiftly withdrew Rely tampons for potential association with
toxic shock syndrome suffered by women who used their product (Gatewood & Carroll, 1981).

Considering a company investment of twenty years development and $74 million in product research
and marketing, some might stratify Proctor and Gamble as the standard for corporate response and
liability strategies in the 1980’s (Gatewood& Carroll, 1981).
Initiatives
In April of 2014 Proctor and Gamble declared a commitment to their global sustainability
goals by promising no further deforestation will occur within its palm oil supply chain by the year
2020 (P&G Sets New Sustainability Goal, 2014). Palm oil is an edible vegetable oil where 50
million tons harvested from Africa, Asia, and the Americas account for 30% of the world’s vegetable
oil production (www.saynotopalmoil.com, 2015). Proctor and Gamble are working to set long term
solutions towards sustainment of the palm oil industry while removing negative impacts on the
environment (P&G Sets New Sustainability Goal, 2014). Proctor and Gamble seeks to improve the
industry by tracing palm oil materials down to their supplier mills and plantations through the
Malaysia Institute for Supply Chain Innovation (MISI) which is part of the Massachusetts Institute of
Technology (MIT) (Proctor & Gamble; Sustainability Report, 2014).
According to Vice President of Global Sustainability, Len Sauers, Proctor and Gamble is
working to reduce production water use by 20% per unit, allowing for another 1 billion people access
to water efficient products (Proctor & Gamble; Sustainability Report, 2014). The company is also
working to reduce packaging by 20% per consumer, double the use of recycled resin in plastic
packaging, and ensure 90% of product packaging is recyclable or that a program is in place to do so
(Proctor & Gamble; Sustainability Report, 2014). As a global player Proctor and Gamble provides
robust assistance to countries around the world when disaster strikes. They’ve donated products,
cash and resources to more than twenty major disasters in recent years, the last according to this 2014
report, being more than $3 million of supplies and water purifiers to the Philippines (Proctor &
Gamble; Sustainability Report, 2014, p. 8). Currently, the Proctor and Gamble Children’s Safe

Drinking Water program teams with 140 global partners, to include Wal-Mart and UK ASDA stores
in delivering safe drinking water to numerous developing countries around the world (Proctor &
Gamble; Sustainability Report, 2014).
Proctor and Gamble brands have taken individual leader roles in providing valuable resources
in many countries. The product brand “Always” serves 300 thousand girls in Africa and the Middle
East with feminine hygiene products and education. Their “Pampers” Mobile Clinic Program has
reached 1.8 million families with basic health and wellness checks in Kenya, Uganda, and Pakistan
while also teaming with UNICEF to provide 300 million vaccines for preventable diseases to
children in fifteen countries (Proctor & Gamble; Sustainability Report, 2014). “Pantene” has
collected 550 thousand ponytail donations and distributed over 34 thousand real hair wigs to those in
need through partnerships with cancer associations in the U.S., Canada, Australia, and Israel (Proctor
& Gamble; Sustainability Report, 2014). The P&G sponsored “Safegaurds” Clean Hands Campaign
assists 4.5 million children annually with hand washing supplies and sanitation stations coupled with
hand hygiene education across China, the Philippines, Pakistan, and Mexico (Proctor & Gamble;
In the article “Apocolypto” by Anya Kamentz (2011), she remarks how Proctor and Gamble
is working to increase use of renewable energy, transition packaging to 100% recyclable material,
and have reduced carbon emissions by 53%. Kamentz further comments that while Proctor and
Gamble’s goals are ambitious, even the smallest amount of progress is a long term value in
preserving our environment and setting the example for other corporations (2011). Proctor and
Gambles CSR initiatives total 18, and the progress of those goals is available for public viewing on
their website (Proctor & Gamble; Sustainability Report, 2014).
Successes
Ivanishchev (2012) describes CSR strategy based on five major components:

 Initiatives to demonstrate the company is acting honorably and ethically;
 Efforts to improve living conditions in the community and make the world a better place;
 Sound environmental actions;
 Gather necessary conditions for employees empowerment at work;
 Implement and encourage workforce diversity.
Proctor & Gamble through its different CSR related activities has harmoniously applied these
actions suggested by Ivanishchev (2012) in order to achieve a successful CSR strategy. By
implementing these actions in their operations, P&G has managed to show that financial gain and
supporting social outcomes to improve the lives of people can be achieved. P&G’s success stories
will be scrutinized based on these five components:
To emphasize on the first element related to ethics, a research developed by the
International Journal of Business Research and Management (IJBRM) (2012), highlights P&G
Pakistan. The research findings conclude that stakeholders are very regarding of ethics reporting.
P&G Pakistan has been working relentlessly in educating people and raising awareness in the society
by informing customers where the company stands regarding the importance of Business Ethics
(IJBRM, 2012). The more knowledge acquired by customers, the more influence they have on a
company to ensure the application of CSR actions. The research conducted by IJBRM (2012),
indicated the importance of P&G products’ quality and consumer satisfaction to manage and retain
loyal customers in Pakistan. It simply shows that through good business ethics and product quality,
P&G has established a great relationship with stakeholder groups around the world.
Secondly, P&G has in fact improved the living conditions within the community. For
example, current accomplishments indicate gains of $52 billion in sales of sustainable innovation
products; reducing the usage of water and energy by more than 25%, and progress in helping children.

P&G also offered a $1 million check to the Cincinnati Parks Foundations to support the creation of
the P&G Vibrant Playscape in Smale Riverfront Park (Ivanishchev, 2012).
Procter & Gamble has been very active regarding the protection of the environment through
numerous actions they have implemented to mitigate their impact and society and the environment.
As clearly reported by Bob McDonald, previous President and CEO of P&G, “P&G’s commitment to
environmental and social sustainability is unwavering” (Ethical Corporation, November 2012). As an
illustration to his statement, he goes on to indicate:
“From our founding, we have invested in the communities where we sell our products, and
we have embraced the responsibility of ethical and sustainable operations. To grow and
thrive for another 175 years requires us to accelerate our sustainable innovation and resource
efficiency so that we have less environmental impact, and at the same time, continue to invest
in our communities to help create the conditions for future growth” (P&G Annual
Among concrete actions taken by P&G to support such strong statements from their
chairperson, there was the launch of a pilot program in the Philippines for a sustainable initiative to
address the growing issue of waste. There is also the very ambitious initiative of “Zero Net
Deforestation by 2020” (Ethical Corporation, November 2012); the use of renewable energy and
recycled material in their everyday operations.
Through their outstanding efforts in implementing good environmental practices, P&G has
been included on the Dow Jones Sustainability Index; they are among the Global 100 Most
Sustainable Corporations in the world.
P&G is always striving to gather necessary conditions for the empowerment of their
employees. They understand that the success of a company goes hand to hand with a consequent
investment in their workforce. They manage to do that by always trying to hire the right employees

who become a kind of reflection of their consumers. As stated by their CEO, their consumers are
their main priorities and to serve them accordingly, they have to recruit the right employees who can
bring in the skills and knowledge needed to meet their customers’ expectations. Through a program
launched in 2007 “Me and my Mentor”, P&G aimed to contribute to the growth of their employees
by creating a framework of guidance from trusted, experienced and skilled mentors. The program
was later institutionalized through “Speed Mentoring” (IJBRM, 2012).
P&G encourages workforce diversity and provides benefits to their employees and
employment opportunities to ethnic minorities. Understanding women’s rights and implementing
ethnic, educational, and gender diversity within the company has always been an urging
preoccupation for P&G (IJBRM, 2012). P&G launched a diversity network program in Pakistan to
encourage skilled women (IJBRM, 2012). At P&G, “Diversity is a matter of ethics. Every individual
in the company, and every partner with whom they have a business relationship, deserves an equal
opportunity to grow, excel and succeed” (IJBRM, 2012).
P&G Corporate Social Responsibility
P&G Corporate Social Responsibility issues and challenges
Based on comprehensive research, we can say that P&G is a socially responsible organization
and it is working for the betterment of the society. However, there is another side, where the
company violates the social responsibility in some cases explained below.
P&G always claim that they have not used hazardous and harmful materials in the products.
They said that they are very much careful about the use of materials in the production of products.
Recently, the Pampers, the P&G product was claimed to be the reason of rashes and burns on the
babies who used them. The mothers of babies have become very much concerned about the fact that
the product have put the babies on ease of dryness, but at the same time, the babies are getting rashes
and they are getting open sores.

P&G claimed that they used and tested the product on nearly 20,000 babies before
introducing it in the market. They have stated that nearly 70% of people have preferred to use the
product in the market. When Pampers, the P&G product were tested in Germany, they found that the
company violated the product safety claim and it was detected that the product had poisonous
substance used in their product manufacturing. Greenpeace discovered that tributyltin (TBT) a
dangerous substance was used in Pampers Baby Dry Mini. The Pampers contained 38.4 mg of TBT
in the section of the pamper belt and also in other layers of pampers (Dudovskiy, 2012). The tests
were conducted and came out founded. TBT has been the most dangerous substance that can
contaminate the environment and it can also enter the skin too. It can also damage the immune
system of a person as well as hormones.
According to Nickson, Gelinas, Payea, and O’Bryane, (2012) “Greenpeace alleged that P&G
failed to protect the company supply chain from being tainted by suppliers linked to its products and
the palm oil plantations involved in forest fires and clearing of peat lands” (Nickson, H., Gelinas, A.,
Payea, A. & O’Bryane, T (2012.
It was discovered in 2009 that bacteria contaminated Vicks Nasal Spray, a product of P&G.
The discovery of B. Cepacia bacteria was found in nearly 12,000 Vicks Nasal Spray bottles. All the
dispatched products were recalled. The detected bacteria was said to have a risk of causing serious
infections to those who had weak immune systems. However, there were no reported illnesses or
contamination from its use. The bacteria did not carry much risk; however, it can lead to chronic lung
cancer to people who have weak immune system.
In 2003, the company violated the consumer privacy through the RFID. This issue reveals
how the company has irresponsibly behaved and how they intruded the personal lives of the
consumers. According to Consumers Against Supermarket Privacy Invasion and Numbering
(CASPIAN) “Wal-Mart was also involved along with P&G in the scam. The activity took place in

Tulsa, where consumers were used by company as guinea pigs for the research purposes of Wal-Mart
and P&G. The company had placed the RFID antenna chips the lipstick packets named Max Factor
Lipfinity, and the P&G researchers would know when lipsticks have been removed from the shelves.
Even though the company says that they did not want to invade the consumer’s privacy, they still
violated the rule” ( “Scandal: Wal-Mart, P&G Involved” , 2013).
Environment issues
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. “ The GRI promotes international harmonization in reporting of environmental, social
and economic performance statistics, in order to promote a more open environment for responsible
decision-making (Boulter, J., & Goodchild, L., (2011)”
A. Resource use (materials and energy)
B. Water quality and availability
C. Waste and emissions.
P&G supplies used in manufacturing goods and services produce wastes and emissions. For
example, making a household product demands raw ingredients, packaging and energy as inputs.
Besides the tangible packed product, other significant outputs will be materials for recycling, for
reuse or for treatment on site, non-hazardous solid waste, hazardous solid waste, air emissions, and
water emissions. Each of these has an environmental effect.
According to a case study by a UK research firm, “P&G’s systematic approach towards
decreasing conservational impact has improved its manufacturing efficiency. For example, 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 wastewater than in 1990” (Promoting Sustainable Development

P&G, 2012).
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. The ‘more from less’ principle can be
illustrated by looking at the development of Ariel, P&G’s laundry detergent. 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. That represents enough energy to
heat around 200,000 homes by gas central heating for one year” (Promoting Sustainable
Development P&G, 2012).
P&G Suit Alleges Age Discrimination
Proctor & Gamble has had to deal with lawsuits involving its own internal practices. For
example, a Procter & Gamble attorney previously filed a federal lawsuit accusing the company of
trying to cut costs by forcing out older employees. Gary Hagopian, a P&G employee for 26 years,
alleges in a suit filed in U.S. District Court that Hagopian was demoted from his job as vice president
and general counsel because the company wanted to replace him with a younger, cheaper employee.
Hagopian, 51, asked for damages of more than $12 million (Highbeam, 2001).
Global Law and Regulations
P&G’s global presence—the company sells products in a number of markets to consumers in
more than 180 countries around the world—its law department faces unique challenges from both a
regulatory as well as a management perspective especially in corporation social responsibility
alleviation. The greatest challenge for our global legal department is to keep our arms wrapped
around both our varying businesses and the myriad laws and regulations that apply to each
jurisdiction.
Global Outreach

As indicated previously, Proctor and Gamble (P&G) is among the world’s largest household
consumer goods company with numerous products in personal care, home, beauty, health, baby and
family categories. P&G has a presence in more than 180 countries in Europe, Middle East, North and
South America, African and Asia. According to a Global Household Goods Industry Profile report
(2014) P&G achieved revenues of $83.062 million dollars. While the company is a global
powerhouse today, its start up in 1836 was rather modest under arduous circumstances to say the
least.
In 2013, Proctor and Gamble secured 14% of the Global household market share, ahead of
Unilever at 7.4%, S.C. Johnson & Son, Inc., at 5.5%, Reckitt Benckiser Group plc at 5.3%, and
others at 67.7% (Global Household Goods Industry Profile, 2014). Strong brand names and high
volume production facilities among powerful companies indicates a low threat of new entry
household companies into the market (Global Household Goods Industry Profile, 2014). The larger
competitors are dominating 32.3% of the global market value with Proctor and Gamble leading at
14%, which is considerable and likely sustainable due to their geographical and product
diversification (Global Household Goods Industry Profile, 2014).

Conclusion
In an attempt to expose the success stories and the failures of CSR at P&G, we have
concluded that the successes seem to outweigh the limitations caused by the implementation of CSR
at P&G. Through our findings, the company is working relentlessly to always improve their CSR
initiatives through several projects undertaken to improve CSR actions.
P&G is a worldwide organization that deals with many stakeholders including their
employees, their customers, and the 180 countries they work in. With such reality, they are
accountable for a social responsibility vis-à-vis to the society, their own employees and they always
have to make sure their operations are not hurting the environment but providing innovative
technology and initiatives to protect and preserve the environment. As we know, P&G is already
doing an awesome job as far as the impact of their products and operations on the environment: they
have so far 4% waste reduction efforts on their products, which is a very satisfactory standard. They
need to keep that up and progressively reduce their footprint on the environment.
The ultimate goal expected by P&G through their CSR initiatives, is to better the lives and
living conditions for all their stakeholders around the world. What is considered a luxury under a
different sky should be made accessible to people who are in need of these things. P&G has
contributed to improve the life of nearly 135 million children in the world in 2007 (Dudovskiy, 2012).
If we consider children are the foundation of future generations, P&G is investing in future leaders
around the world and making the world a better place.

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