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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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P & G OVERVIEW
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
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 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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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.
INDIAN INSTITUTE OF MANAGEMENT RAIPUR
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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
INDIAN INSTITUTE OF MANAGEMENT RAIPUR
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2.
3.
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Other Initiatives
Introduced Future Friendly campaign in Europe, a multi-brand and
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Diversity Metrics
Audit Scores Environmentally Sustainable Scorecard Fragmented Scores
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MARKETING SUSTAINABILITY
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
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
PRODUCT
PLACE
PROMOTIO N
PRICE
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
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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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.
5.
6. 7. 8.
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CSR 2.0
CSR 2.0
Based on transformative approach C=Creativity S=Scalability R=Responsiveness 2=Glocality 0=Circularity
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.
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.
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.
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.
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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Processes/Capabilities:
a) Timely Delivery b) Social Responsibility c) Supply Chain efficiency
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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.
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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
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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