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P&G In a Glance
Prepared By:

•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
THE CSR
•Spends more than $5 million
WAY a day on R&D

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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 company’s

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&G’s Programs:

P&G’s Enablers:

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P&G’S ENVIORNMENT
SUSTAINABILITY PROGRAMS

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P&G’s 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: Re-
designed 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)
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OPERATIONS & SUPPLIERS
•P&G’s 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&G’s plant’s 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 Since July Since July
(percent reduction per unit of 2007 2002
production)

Energy Usage
-16 -52
Carbon Di oxide Emissions
-14 -54
Waste Disposal
-71 -74
Water Usage
-22 -58

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P&G’S 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&G’s CHILDREN’S 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

P&G’s OLYMPICS CAMPAIGN: PROUD SPONSORS OF MOM:

• The “Thank You, Mom” campaign honors moms, celebrate the
London 2012 Olympic and Paralympics Games, and leverage the
Company’s 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

India SHIKSHA
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&G’s 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&G’S 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.

2. About 40 percent of scorecards received offered at least one

innovation idea for improving the environmental footprint of P&G’s
business.

3. 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.

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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 company’s most successful initiatives has been the
engaging of P&G’s 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 company’s 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

Customer
PLACE
Segmentatio PROMOTIO
n – Target N
Market

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 “they’d 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 P’s 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 multi-
national 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 doesn’t 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. Countries fail if they don’t create corporate citizenship.

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

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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&G’s 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 it’s

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
Customer & Society:
Financial Results: a) Cost Reduction
a) Operating Profit b) Reduction in wastage of
b) Investment electricity, water and CO2
c) Return on Investment emission
c) Increase in Literacy rate

Processes/Capabilities: People & Organization:

a) Timely Delivery a) Increase in Retention Ratio
b) Social Responsibility b) Decrease in absentees.
c) Supply Chain efficiency c) Gender Diversity

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Karmayog Rating
A. Negative Criteria that usually determine the maximum possible Rating

Negative Criteria Reason Rating Level

Companies that make liquor,
tobacco, genetically engineered /
modified crops
Companies that violate
laws/rules/regulations
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

P&G doesn’t
Companies engaged in high impact Processes falldamage the
that severely Level 1
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 One Level less
CSR activities (even, verbatim) as take CSR seriously enough to be engaged than the
for previous years in CSR initiatives every year, building on previous year’s
these, and reporting progress. rating

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Karmayog Rating
Sufficient Criteria
Sufficient Criteria What this means Rating
Level
Company fulfilling basic needs of The products and services of the company are Level 1
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 Level 1
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
Company helps to reduce the negative P&G qualifies
The company’s for or services provide
products Level 1
impact of other companies Rating
solutions Levelharm caused by actions
to mitigate
e.g. A company that makes water of companies, their products, etc.
purification & waste recycling
of Level 2
systems
The company is committed to measuring and Level 1
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 Level 2
Company’s 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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Karmayog Rating
Necessary Criteria

Necessary Criteria Explanation Rating Level

If undertaking any CSR Activity CSR activities that cover any kind Level 1
of social, developmental or
community work
If CSR is also linked to reducing the negative impacts CSR activities that aim to Level 2
of company’s 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 Level 3
P&G qualifies for
those who are affected directly
Final rating of company
by the
If CSR is also embedded in the business operations CSR activities that form a part of Level 4
Level 3the daily business activities of
the company.
If innovative ideas and practices are also developed CSR activities that enable Level 5
for CSR sustainable and replicable
solutions to problems faced by
society.

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Implementing Social Welfare

Inputs
Action plan based
Leadership Decide area of focus
on health care
Communication

Communication
across
Organization

Fix
Revise/ Intensify Monitor the Plan Responsibilities
Plans & targets

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THANK YOU 

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