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P&G In a Glance

Sales of $ 68.2 billions Nearly 300 brands in more than 160 countries 22 global brands with sales of over $ 1 billion Workforce of 140.000 3 billions people touched everyday by P&G products Spends more than $5 million a day on R&D
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THE CSR WAY

P & G OVERVIEW

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P&G at a glance
Founded in 1837 - 176th anniversary Sales of $ 83.6 billion Nearly 300 brands in more than 160 countries 22 global brands with sales of over $ 1 billion Worldwide workforce of 135,000 140 plants and 25 R&D centers globally Spend nearly $ 2 billion a year on R&D

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P&G: Sustainability
Sustainability is integrated into the companys purpose of touching and improving the lives of consumers now and for generations to come. 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.

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P&Gs Programs:

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P&Gs Enablers:

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P&GS ENVIORNMENT SUSTAINABILITY PROGRAMS

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P&Gs Long-Term Environmental Sustainability Vision

Powering our plants with 100% renewable energy Using 100% renewable or recycled materials for all products and packaging Having zero consumer and manufacturing waste go to landfills Designing products that delight consumers while maximizing our conservation of resources

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PRODUCTS & PACKAGING

Ariel and Tide: Pioneers in introducing compact detergents in India using less raw material and packaging material Whisper and Pampers: Redesigned packaging to reduce thickness, thus reducing raw material usage and saving paper Olay: Re-designed pump package reduces plastic consumption and is 25% lighter. Saves over 400 tons of packaging a year (the weight of a Boeing 747)

OPERATIONS & SUPPLIERS

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P&Gs Head Office in Mumbai has reduced its annual energy consumption by over 27% over the last 9 years, saving over 1700 gigajoules of energy, by conscious behavior change of employees P&Gs plants have adopted various innovative ideas to transform scrap material into useful daily needs. The melted plastic is being used for making chairs while the metal laminate is being applied as mixture with cement for construction. Shampoo production waste has been converted to car washing agent
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PROGRESS SO FAR
PROGRESS (percent reduction per unit of production) Energy Usage Carbon Di oxide Emissions Waste Disposal Water Usage Since July 2007 Since July 2002

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-16
-14

-52
-54

-71
-22

-74
-58
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P&GS SOCIAL RESPONSIBILTY PROGRAMS

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Social Responsibility Programs

LIVE LEARN AND THRIVE Since its inception, P&G has improved life for more than 400 million children around the world through our Live, Learn and Thrive cause. Every second of every day, two children benefit from P&G Live, Learn and Thrive initiatives P&Gs CHILDRENS SAFE DRINKING WATER PROGRAM 4.2 billion liter of clean water delivered, 22000 lives saved and 170 days of diseases prevented
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Social Responsibility Programs

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P&Gs OLYMPICS CAMPAIGN: PROUD SPONSORS OF MOM:

The Thank You, Mom campaign honors moms, celebrate the London 2012 Olympic and Paralympics Games, and leverage the Companys broad portfolio of leading brands to drive extensive retail displays and volume. The campaign ends with the line The hardest job in the world is the best job in the world. Thank you Mom!! In addition, P&G will sponsor 28 U.S. Olympic and Paralympic athletes, as well as launch the P&G/Team USA Youth Sports Fund.

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Social Responsibility Programs in SHIKSHA India

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Shiksha has till date helped 280,000 underprivileged children access their right to education.
Every time a consumer buys a large pack of any of P&Gs product he/she will have made a definitive contribution towards SHIKSHA Irrespective of the sale of its brands from Shiksha, P&G has committed a minimum of Rs. 1 crore to CRY.

DISASTER RELEIF
P&G has stepped forward in natural calamities and helped communities get back on their feet. Most recently they 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.
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Contd
PARIVARTAN-The Whisper School Program 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
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P&GS SUPPLIERS AND THEIR ENVIRONMENTAL POLICY

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P&G Rated its Suppliers

1. Procter and Gamble has released the second version of its environmental sustainability scorecard, moving from benchmarking suppliers to rating and rewarding them.
About 40 percent of scorecards received offered at least one innovation idea for improving the environmental footprint of P&Gs business. Many of the ideas have become actual projects. In one example, a chemical supplier has begun to work with P&G on renewable energy projects, renewable materials development, and ways to reduce emissions.

2.

3.

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How many employees have sustainability objectives?

P & G has been a leader in greening its consumer products, offices and production facilities. One of the companys most successful initiatives has been the engaging of P&Gs 130,000 global employees through its Take the R (responsibility) for Tomorrow engagement program. Established site Green Teams led by a Sustainability Ambassador, and armed them with a Sustainability Toolkit that outlined an easy-to-use ten-step formula to engage fellow workers for green success. Result: The majority of P&G personnel are enthusiastic about the sustainable workplace, but they also contribute ideas that save the corporation about $1 million per year in energy costs

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Other Initiatives
Introduced Future Friendly campaign in Europe, a multi-brand and

multi-platform effort to raise awareness about greener products and

greener practices; Created a high-profile panel of sustainability experts to advise on its Future Friendly efforts; Launched a supplier scorecard to measure their environmental impacts; Reformulated a bestselling shampoo to reduce toxins; Announced concentrated versions of powder laundry detergents that significantly reduce packaging and energy use; and Introduced sugarcane packaging to three of its shampoo and makeup brands.
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Measuring Social Impact

Resources and Waste Summary

Diversity Metrics
Audit Scores Environmentally Sustainable Scorecard Fragmented Scores

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MARKETING SUSTAINABILITY

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Market Sustainable Products ?

Market Sustainability ?
How do Consumers react?
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Good News
Consumers are Re:THINKING consumption, Re:DEFINING success and Re:IMAGINING the future of a more sustainable economy.
Source: Market Research by BBMG, GlobeScan and SustainAbility

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What P&G achieved

P & G is a leading in its sector in Environmental and Social Leadership in consumer perception Consumer Product Safety Commission (CPSC) Material Safety Data Sheets (MSDS) provide a standardized listing of the chemical and physical characteristic of a product Product Ingredients

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Challenges Only 11% believe companys traditional communications. 75 % - performance of the product should be at par 70 % - Price of the product should be at par

However the first most trusted sources among consumers are certification seals

Source: Market Research by BBMG, GlobeScan and SustainAbility

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PRODUCT

PLACE

Customer Segmentatio n Target Market

PROMOTIO N

PRICE

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Consumer Segmentation on Sustainability Spectrum

Highly committed Advocates (14%) Style and social status seeking Aspirationals (37%), Price & performance-minded Practicals(34%) Less engaged Indifferents (15%).

Source: Market Research by BBMG, GlobeScan and SustainAbility

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 86% of Advocates believe they have a responsibility to purchase products that are good for the environment and society. 73 % of Aspirationals believe consume a lot less to improve the environment for future generations but they also care for style, status and happiness 52% of Practicals believe theyd buy more sustainable products if they got rewarded in some way for doing so. 16% believe individuals should be responsible and are indifferent to company

Source: Market Research by BBMG, GlobeScan and SustainAbility

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Source: Market Research by BBMG, GlobeScan and SustainAbility

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Recomendations
Reward Aspirationalists and Practicals in terms of all Ps of Marketing Design Marketing Strategies accordingly Along with Product, market sustainability of it However this is possible only if there is no inherent defect in the product in sustainability lines

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BOTTOM OF THE PYRAMID APPROACH

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Bottom of the Pyramid

C. K. Prahalad proposes that businesses and governments should stop thinking of the poor as victims and instead start seeing them as resilient and creative entrepreneurs as well as value-demanding consumers. There are tremendous benefits to multinational companies who choose to serve these markets in ways responsive to their needs. The poor of today are the middle-class of tomorrow.
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Examples of Bottom of Pyramid

Tata Swach range of Water Purifiers from Tata Chemicals-A Tata Group Company satisfying the essential necessity of purified water for the BoP for as low as Rs.499 Godrej & Boyce called ChotuKool provides all the functionality of a normal refrigerator but can run on a battery and doesnt need continuous power supply unlike the traditional refrigerator. Vortex is a startup incubated at Indian Institute of Technology, Chennai which has been successful in making rural banking a reality with the low cost ATM.

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HUL Project Shakti

HLL created a direct distribution network in hard-to-reach locales. HLL selected entrepreneurial women from villages and trained them to become distributors, providing education, advice, and access to products to their villages. These village women entrepreneurs, called Shakti Amma (empowered mother), have unique knowledge about what the village needs and which products are in demand. They earn between Rs. 3,000 and 7,000 per month (U.S. $60 $150) and therefore create a new capacity to consume for themselves and their families. More important, these entrepreneurial women are increasingly becoming the educators and access points for the rural BOP consumers in their communities.

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CREATING SHARED VALUE

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The Process
1. 2. 3. 4. Countries fail if they dont create corporate citizenship. P&G should work with government and NGOs to increase value. It should understand the need of society from NGOs who work at ground level. Attack a societal problem with a business model but it requires an enormous change in mindset. It should follow separate form of measurement and policy at business unit level. It should analyze social impact that the company is having and what that meant for the success of their business. It should focus on inclusive growth, focus on that segment of society that is left out. Food security to very low income population.

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6. 7. 8.

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CSR 2.0

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CSR 2.0
Based on transformative approach C=Creativity S=Scalability R=Responsiveness 2=Glocality 0=Circularity

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C~Creativity
P&G water purifying solution, a sachet that can clean 10 litres in just 20 minutes. Over 2000 children die a day from drinking unsafe water; they have provided close to 6 billion litres of clean water. P&G give these packets away or provides it over the world at cost working with different agencies.

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S~Scalability
Procter and Gamble has formed a global pledge to invest resources into the development of plant-based PET for use in the packaging of its personal care products and other consumer goods. use of 100 percent plant based PET materials and fibres for a variety of consumer products.

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R~ Responsiveness
Improved manufacturing process by asking suppliers to reduce energy use. P&G fragrance packaging contains varying properties of recycled glass depending on the products. Using recycled paperboard in secondary packaging.

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2~ Glocality
I. The Vicks Breathe for Life Project of P&G provided accessible healthcare services for up to 75,000 children in Bangladesh, where pneumonia is among the top three causes of death in children under five. II. P&Gs Live, Learn and Thrive has improved life for more than 400 million children across the Globe.

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0~Circularity
On December 6, 2010 P&G announced that its Maine facility became 9th P&G manufacturing site globally to reach zero waste to landfill, putting company on path to delivering long-term environmental vision. The feminine care facility worked with both employees and suppliers to implement a process that beneficially uses 100 percent of its waste. A majority - more than 60 percent - is recycled or reused, while the remainder is converted to energy.

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MEASURING SOCIAL IMPACT

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Measuring Social Impact

Balanced Score Card
Financial Results:
a) Operating Profit b) Investment c) Return on Investment

Customer & Society:

a) Cost Reduction b) Reduction in wastage of electricity, water and CO2 emission c) Increase in Literacy rate

Processes/Capabilities:
a) Timely Delivery b) Social Responsibility c) Supply Chain efficiency

People & Organization:

a) Increase in Retention Ratio b) Decrease in absentees. c) Gender Diversity

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Karmayog Rating
A. Negative Criteria that usually determine the maximum possible Rating
Negative Criteria Companies that make liquor, tobacco, genetically engineered / modified crops Companies that violate laws/rules/regulations Reason Rating Level These products are not needed by society, Level 0 and cause harm to people and the environment. The best CSR to do is to stop making these products. CSR is not limited just to how a company Level 1 spends its money, but also to how it makes that money in the first place Level 1

Companies engaged in high impact Processes that severely damage the P&G doesnt fall processes environment require extraordinary under any of this efforts by the company to reduce and repair the damage, and require greater contributions to benefit society Companies that report the same This indicates that the company does not CSR activities (even, verbatim) as take CSR seriously enough to be engaged for previous years in CSR initiatives every year, building on these, and reporting progress.

One Level less than the previous years rating

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Karmayog Rating
Sufficient Criteria
Sufficient Criteria What this means Rating Level Level 1 Company fulfilling basic needs of The products and services of the company are society through its products or useful and benefit society services e.g. providing financial services Unique CSR activity which would not The CSR activity being undertaken by the otherwise happen company is helpful to government, NGOs, e.g. Developing a mapping and others, in tackling issues of society tracking software for adoption in India qualifies for or services provide Company helps to reduce the negative P&G The companys products impact of other companies solutions to mitigate Rating Levelharm caused by actions e.g. A company that makes water of companies, their products, etc. of Level 2 purification & waste recycling systems The company is committed to measuring and Company adopting the GRI reporting its CSR initiatives as per a voluntary Framework for CSR reporting globally accepted framework. The company is committed to a minimum Companys annual expenditure on expenditure on CSR annually, and thus CSR = 0.2% of sales, minimum considers CSR as an integral part of its business
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Level 1

Level 1

Level 1 Level 2

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Karmayog Rating
Necessary Criteria
Necessary Criteria Explanation Rating Level

If undertaking any CSR Activity

CSR activities that cover any kind of social, developmental or community work If CSR is also linked to reducing the negative impacts CSR activities that aim to of companys own products or processes accordingly improve processes and products of the company. If CSR initiatives are also for the local community CSR activities that are focused on P&G qualifies for those who are affected directly by the Final rating of company If CSR is also embedded in the business operations CSR activities that form a part of Level 3 the daily business activities of the company. If innovative ideas and practices are also developed CSR activities that enable for CSR sustainable and replicable solutions to problems faced by society.

Level 1
Level 2 Level 3 Level 4 Level 5

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Implementing Social Welfare

Inputs Leadership Communication

Decide area of focus

Action plan based on health care

Communication across Organization Fix Responsibilities & targets

Revise/ Intensify Plans

Monitor the Plan

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THANK YOU

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