Procter & Gamble Co. (P&G) is an American multi-national consumer goods corporation headquartered in downtown Cincinnati, Ohio, founded in 1837 by British American William Procter and Irish American James Gamble.[3] It primarily specializes in a wide range of cleaning agents and personal care and hygienics products. Before the sale of Pringles to the Kellogg Company, its product portfolio also included foods, snacks and beverages.[4]
In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was streamlining the company, dropping and selling off around 100 brands from its product portfolio in order to focus on the remaining 65 brands,[5] which produced 95% of the company's profits. A.G. Lafley—the company's chairman, president, and CEO until October 31, 2015—said the future P&G would be "a much simpler, much less complex company of leading brands that's easier to manage and operate".[6]
Sustainability is integrated into our company’s purpose of touching and improving the lives of consumers now and for generations to come. We define sustainability broadly at P&G to include both environmental sustainability and social responsibility.
AN OVERVIEW ON THE CORPORATE SOCIAL RESPONSIBILITY INITIATIVES BY PROCTOR &GAMBLE COMPANY
1. 1
AN OVERVIEW ON THE CORPORATE SOCIAL
RESPONSIBILITY INITIATIVES BY PROCTOR &GAMBLE
COMPANY
Varun Kesavan, Research Scholar, E – Mail Id –
varunkesavan@yahoo.com
INTRODUCTION
Procter & Gamble Co. (P&G) is an American multi-national consumer
goods corporation headquartered in downtown Cincinnati, Ohio, founded in 1837
by British American William Procter and Irish American James Gamble.[3] It
primarily specializes in a wide range of cleaning agents and personal care and
hygienics products. Before the sale of Pringles to the Kellogg Company, its
product portfolio also included foods, snacks and beverages.[4]
In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G
announced it was streamlining the company, dropping and selling off around 100
brands from its product portfolio in order to focus on the remaining 65
brands,[5] which produced 95% of the company's profits. A.G. Lafley—the
company's chairman, president, and CEO until October 31, 2015—said the future
P&G would be "a much simpler, much less complex company of leading brands
that's easier to manage and operate".[6]
2. 2
HISTORY
Origins
Candlemaker William Procter, born in England, and soapmaker James Gamble,
born in Ireland, both emigrated from the United Kingdom. They settled
in Cincinnatiinitially and met when they married sisters Olivia and Elizabeth
Norris.[7] 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 created.
In 1858–1859, sales reached $1 million. By that point, about 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.
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.
3. 3
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".
International expansion
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. After this
acquisition, Procter & Gamble had their UK Headquarters at 'Hedley House'
in Newcastle upon Tyne, until quite recently. 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 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 purchased Charmin paper mills and began
manufacturing toilet paper and other tissue paper products. Once again focusing
on laundry, Procter & Gamble began making Downy fabric softener in 1960 and
Bounce fabric softener sheets in 1972.[8]
4. 4
One of the most revolutionary products to come out on the market was the
company's disposable Pampers diaper, first test-marketed in 1961, the same
year Procter & Gamble came out with Head & Shoulders.[9] Prior to this
point, disposable diapers were not popular, although Johnson & 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.
Further developments
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,
the Iams Company, and Pantene, among others. In 1994, the company made
headlines for big losses resulting from levered 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, P&G
again made headlines when the Food and Drug Administration approved a new
product developed by the company, Olestra. Also known by its brand name
'Olean', Olestra is a lower-calorie substitute for fat in cooking potato chips and
other snacks.
5. 5
In January 2005, P&G announced the acquisition[10] 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,[11] and Gillette's Rembrandt toothpaste line to Johnson &
Johnson.[12]
The deodorant brands Right Guard, Soft and Dri, and Dry Idea were sold to Dial
Corporation.[13] 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.[14]
P&G's dominance in many categories of consumer products makes its brand
management decisions worthy of study.[15] For example, P&G's corporate
strategists must account for the likelihood of one of their products cannibalizing
the sales of another.[16]
On August 25, 2009, the Ireland-based pharmaceutical company Warner
Chilcott announced they had bought P&G's prescription-drug business for
$3.1 billion.[17]
6. 6
P&G exited the food business in 2012 when it sold its Pringles snack food
business to Kellogg's for $2.75 billion after the $2.35 billion deal with former
suitor Diamond Foods fell short.[18] The company had previously sold Jif peanut
butter, Crisco shortening and oils, and Folgers coffee in separate transactions
to Smucker's.
In April 2014, the company sold its Iams pet food business in all markets
excluding Europe to Mars, Inc. for $2.9 billion.[19] It sold the European Iams
business to Spectrum Brands in December 2014.[20]
Restructuring
In August 2014, P&G announced it was streamlining the company, dropping
around 100 brands and concentrating on the remaining 65, which were producing
95% of the company's profits.[5]
In March 2015, the company announced it was selling its Vicks VapoSteam U.S.
liquid inhalant business to Helen of Troy, part of a brand-restructuring operation.
This deal was the first health-related divestiture under the brand-restructuring
operation.[21]
In July 2015, the company announced the sale of 43 of its beauty brands to Coty,
a beauty-product manufacturer, in a US$13 billion deal. It cited sluggish growth
of its beauty division as the reason for the divestiture.[22][23][24] The sale was
completed on October 3, 2016.[25]
7. 7
In February 2016, P&G completed the transfer of Duracell to Berkshire
Hathaway through an exchange of shares.[26]
In April 2018, Reuters reported that Procter & Gamble would purchase the
consumer health division of Merck Group for €3.4 billion euros (£2.96 billion; $4.2
billion).
BUSINESS OPERATIONS
As of July 1, 2016, the company structure has been categorized into ten
categories and six selling and market organizations.
Categories
Baby Care
Fabric Care
Family Care
Feminine Care
Grooming
Hair Care
Home Care
Oral Care
Personal Health Care
Skin & Personal Care
8. 8
Selling & Market Organizations
Asia Pacific
Europe
Greater China
India, the Middle East, and Africa (IMEA)
Latin America
North America
SOCIALINITIATIVESBYP&G IN INDIA
P&G does this through the products and services it offers, manufacturing in an
environmentally responsible manner, and through its social responsibility
programs that improve lives for those in need around the world.
Sustainability Journey in India
Sustainability is integrated into our company’s purpose of touching and improving
the lives of consumers now and for generations to come. We define sustainability
broadly at P&G to include both environmental sustainability and social
responsibility.
9. 9
Shiksha (Education): Padhega India. Badhega India.
P&G’s flagship Corporate Social Responsibility Program Shiksha is an integral
part of our global philanthropy program - Live, Learn & Thrive. Now in its 8th
year, Shiksha has till date helped 280,000 underprivileged children access their
right to education. The program has built & supported over 140 schools across
India, in partnership with NGOs like Round Table India (RTI), Save the Children
(STC), Army Wives Welfare Association (AWWA) and Navy Wives Welfare
Association (NWWA), amongst others.
Shiksha began with P&G India’s research which revealed education as the one
cause that consumers are most concerned about and are looking for a simple
way to contribute to. With this insight and founded on P&G’s purpose, Shiksha
was launched in 2005 to enable consumers to contribute towards the cause of
education of under-privileged children through simple brand choices.
10. 10
Since its inception, Shiksha has made a cumulative donation of over Rs. 22
crores towards helping children on the path to better education. This is a result of
the support from our consumers who participated in the Shiksha movement by
buying P&G brands for one quarter of the year, thus enabling P&G to contribute
a part of the sales towards the cause.
Shiksha’s NGO Partners
Shiksha’s vision is to help India get to 100% Shiksha someday, and it is working
towards this vision in partnership with NGOs like Save the Children India, Army
Wives Welfare Association (AWWA), Navy Wives Welfare Association (NWWA)
and Round Table India (RTI), amongst others.
Each of Shiksha’s NGO partners focuses on a critical approach towards
education, with NGO Round Table India specializing in building educational
infrastructure and supporting schools across India, NGO Save the Children
laying emphasis on the girl child via supporting the government’s Kasturba
Gandhi BalikaVidhyalays, and the NGOs AWWA and NWWA serving the unique
educational needs of differently-abled children of naval and army officer’s
families.
11. 11
Shiksha Schools
Shiksha aims to build the educational future of India ‘Brick – by – Brick’ by
addressing the need for better educational infrastructure and building the tangible
asset of schools. Shiksha’s interventions span across health and hygiene
facilities at schools such as clean drinking water and separate toilets for boys
and girls, advanced educational aids such as libraries and computer centres, as
well as basic infrastructure needs such as classrooms.
Shiksha Supporters
Shiksha has evolved into the national consumer movement that it is today, with
the invaluable support of our stakeholders amongst the media, influencers,
employees and customer partners.
12. 12
Over the years, the program has received generous support from many thought
leaders & celebrities such as actors AnupamKher, SushmitaSen, Saif Ali Khan,
Sharmila Tagore, R Madhvan, AbhayDeol, KonkonaSen, Tabu and Soha Ali
Khan; social activist Dr. KiranBedi; artist Jatin Das and many more.
Shiksha owes its success to the commitment of P&G employees and the support
of our partners and stakeholders. P&G employees volunteer their time and effort
towards the program and are engaged with the initiative at several platforms. For
instance, in 2010, over 400 employees from across the P&G family nationally
traveled to the RTI ShikshaSadhana School in Pune.
13. 13
These activities together help Shiksha further its motto ‘पढ़ेगाइंडियातोबढेगाइंडिया',
(if India will study, India will grow) and help us touch and improve the lives of our
consumers.
Disaster Relief
India has braved several natural disasters in the recent past, such as the
Tsunami in South India, floods in Bihar or earthquakes in J&K and Gujarat. P&G
has stepped forward in each of these calamities and helped communities get
back on their feet. Most recently we helped rebuild the Army School in Ladakh,
located in one of the most challenging Himalayan Terrains, which was wrecked
by the Flash Floods in 2010.
14. 14
Shiksha came to the aid of the Ladakh Scouts Children’s School, by supporting
the education of children orphaned by the tragedy and helping reinstate essential
infrastructure.
Parivartan - The Whisper School Program
P&G’s Parivartan (Transformation) Program has been protecting millions of
adolescent girls in India from getting trapped in traditional practices of using
unhygienic cloth for sanitary protection, by providing timely menstrual education.
The program has been improving the lives of over 2 Million girls annually across
15,000 schools in India. The objective of the program is to help adolescent girls
embrace womanhood positively and enable them to adopt the right feminine
hygiene practices to stay healthy and stay in school. Parivartan ensures that
adolescent girls do not miss school on account of periods and initiates a series of
cascading effects leading to a more equal gender status in the state.