Corporate Social Responsibility Practice

This report analyzes the different elements of the CSR initiatives undertaken by Procter & Gamble Company in Brazil and Indonesia, focusing on their economic element and its impact on the economic development of these nations. It also discusses the strengths and weaknesses of these initiatives.

Running head: CORPORATE SOCIAL RESPONSIBILITY PRACTICE
Corporate Social Responsibility Practice
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Table of Contents
Introduction................................................................................................................................2
Overview of Procter & Gamble Company.................................................................................2
Corporate Social Responsibility (CSR) and its elements...........................................................3
CSR Practices of Procter & Gamble Company..........................................................................4
Justification for the selection of the economic element.............................................................5
Practical issues relating to the organization...............................................................................6
Strengths and Weaknesses of the initiatives..............................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................9

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Introduction
As opined by Herzog (2017), the notion that the business firms are required to take
responsibility for their actions and thereby mitigate the damage that they are causing to the
environment, society and the planet had gained a significant amount of prominence within the
framework of the contemporary business world. Brammer and Pavelin (2016) are of the
viewpoint that in the light of these facts the business firms are increasingly resorting to the
usage of different kinds of Corporate Social Responsibility (CSR) activities or practices for
the mitigation of the different issues that the world is facing currently. More importantly, it is
seen that the various business firms through the effective usage of the different kinds of CSR
activities are trying to improve their market or brand image in an effective manner (Hopkins
2016). This is important because of the fact that the contemporary customers have become
very concerned regarding the brand or the market image of the firms whose products or
services that they are opting for. (Herrera 2015) However, at the same time it is seen that
there are various elements of then CSR practice or initiatives and also the CSR practices or
the initiatives which are being followed by a firm should be in synchronicity with these
elements. This report will undertake an analysis of the different elements of the CSR
initiatives or practices under taken by the organization Procter & Gamble Company in the
particular context of their CSR activities in Brazil and Indonesia.
Overview of Procter & Gamble Company
The business firm, Procter & Gamble Company (P&G), established in 1837 by British
American William Procter and Irish American James Gamble, is “an American multi-national
consumer goods corporation based in Ohio (Us.pg.com 2019). Furthermore, the firm is
known for the plethora of products or services that it offers to the customers starting from
personal healthcare products to snacks, beverages and others (Us.pg.com 2019). The annual

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profit of the firm under discussion here for the year 2017 was US$ 65.06 billion and the firm
is currently offering more than 100 different brands to the customers from the diverse parts of
the world (Us.pg.com 2019). In this regards, it needs to be said that the firm is currently
operational in more than in almost all the major business markets of the world like that of
England, India, Indonesia, Brazil and others (Us.pg.com 2019). In addition to this, the firm
offers employment services to more than 95,000 people from all over the world (Us.pg.com
2019). However, at the same time it needs to be said that the sale of Pringles to Kellogg
Company had adversely affected the prospects of the concerned firm and this is being
adequately reflected in the decline in profitability that the firm had experienced in the recent
years (Us.pg.com 2019). In this context, it needs to be said that firm is increasingly taking the
help of different kinds of CSR activities or practices not only for the improvement of its
present market or brand image but at the same time for resolution of the diverse wicked
problems that the world is currently facing.
Corporate Social Responsibility (CSR) and its elements
Crowther and Seifi (2018) have articulated the viewpoint that the CSR can be seen as
a private business self-regulation through which the business firms try to contribute in an
effective manner towards the environment, society and the economy of the nation in which
they are operational. As opined by Grayson and Hodges (2017), in the earlier times the
narrow view of CSR was very popular and thus the firms held the idea that their prime
responsibility is economic development of the nations in which they operated. However, in
the recent times, the broad view of CSR had gained popularity and thus the firms along with
economic development also focus on environment and also the society (Crane, Matten and
Spence 2019). In this regard, Carroll's CSR Pyramid is an important one which the firms are
required to take into effective consideration while designing their CSR policies.

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Figure 1: Carroll's CSR Pyramid
Source: Lins, Servaes and Tamayo 2017
The business firms, thus, while designing the different CSR measures or initiatives
that they are going to follow need to consider whether CSR initiative would enable them to
fulfill their economic, legal, ethical and philanthropic responsibilities (Cheng et al. 2017).
More importantly, it is seen that the components of this pyramid itself had emerged as the
essential elements of the construct of CSR framework that the firms are required to take into
accounts (Martinez-Conesa, Soto-Acosta and Palacios-Manzano 2017). In this regard, it
needs to be said that Carroll’s pyramid concurs with the narrow view of CSR and states that
the primary responsibility of the firms is to make profit.
CSR Practices of Procter & Gamble Company
P&G follows the “Companies Act, 2013” and thereby considers CSR as an important
strategic tool for the “sustainable growth of the people, the communities we operate in and
the Company as a whole” (Us.pg.com 2019). The firm under discussion here is reputed for
the diversity of the CSR policies which it follows in the different nations of the world and
these policies differ from nation to nation depending on the kind of wicked problems that the

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concerned nation is facing. For example, in the nation of Brazil, the firm focuses on
Conservation of natural resources like forests, wildlife, using renewable sources of energy
and others whereas in the nation of Indonesia the firms takes the help of issues like housing,
health and hygiene of the people, imparting education and others (Us.pg.com 2019). In
addition to these, the majority of the CSR initiatives followed by the firm can be categorized
into two broad headings, namely, “Social and cultural development” and “Ensuring
Environmental Sustainability” (Us.pg.com 2019). Moreover, the firm in the recent times in
synchronicity with its HRM team had taken various initiatives to eradicate gender inequality,
gender pay gap, enhance diversity and others within its workplace to enhance the job
satisfaction level of the employees. Furthermore, the firm is also following the measure of
ethical as well as responsible marketing as a way to contribute in an effective manner towards
society and also to reduce the damage that the firms cause to the customers by misleading
them regarding the products or services that they offer to the customers (Poplawska, Labib
and Reed 2017). However, at the same time it needs to be said that the firm is currently using
the framework of CSR as a strategic tool not only for the enhancement of its brand or market
image but also as a means to earn a higher amount of profit as well. Thus, it can be said that
from the perspective of the firm under discussion here the economic element is the most
important one although it focuses on the other elements of the framework of the CSR like
social, environmental and others.
Justification for the selection of the economic element
The economic element of the CSR initiatives or the practices which the firm P&G is
following in the nations of Brazil and Indonesia had been selected because of the fact that this
element forms one of the most important elements of Carroll’s pyramid of CSR. In addition
to this, it is a generally agreed fact that one of the most important responsibilities of the
business firms is to make profit (Eriksson and Svensson 2015). I personally feel that this

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economic element becomes especially important from the perspective of the economic
condition of the two nations under discussion here, namely, Brazil and Indonesia. Thus, it is
likely through the extensive focus of the firm under discussion here, the firm would be able to
contribute in a significant manner towards the economic development of these two nations
and thereby help these two nations in the best possible manner. More importantly, Pai et al.
(2015) argue that the other elements of the framework of CSR are directly related to the
economic element and thus it is likely that by helping in the economic development of these
two nations, the firm would also be able to contribute in a sustainable manner towards the
development of these nations. At this juncture, I would like to add that I and my group
members unanimously agree on the fact that from the perspective of the business operations
of the firm P&G in the two nations of Brazil and Indonesia the economic element of CSR is
the most important one because of the above mentioned reasons. The extreme focus of the
firm on the element of economy also becomes apparent from the aggressive marketing and
human resource management strategies used by the firm under discussion here.
Practical issues relating to the organization
Mayorova and Lapitskaya (2016) have articulated the viewpoint that it is true that one
of the most important responsibilities of the business firms is to make profit and thereby
contribute in an effective manner towards the economic development of the nations in which
they are operational. However, Jamali and Karam (2018) have suggested that the sole focus
of the firms on this particular element of CSR shifts their focus from the other elements
which in turn leads them to follow the kind of strategies to earn a higher amount of profit
which in longer run prove to be detrimental for the interests of the society and the planet. It is
precisely here that the practical issues related to the effective usage of this particular element
arise in the particular case of P&G. For example, it is seen that the firm through focusing on
the economic element of CSR is trying to contribute in an effective manner towards the

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economic development of these two nations at the complete disregard of the other elements
like social, environmental and others. Moreover, it is seen that the concerned firm is trying to
address the deforestation problem in Brazil, the housing issue in Indonesia and others yet at
the same time it is needs to be said that the sole focus of the concerned firm is on the aspect
of profitability rather than these elements.
Strengths and Weaknesses of the initiatives
One of the most important strength points of the various CSR initiatives undertaken
by the firm P&G and is extensive focus on the attribute of economic development is the fact
that it had not only enabled the concerned firm to attain a higher level of economic growth
but also to become one of the largest firms of the world in terms of the revenue generated by
it. This in turn had enabled it to contribute in an effective manner towards the nations in
which it is operational and thereby fulfill its economic responsibility towards the nations in
which it is operational. However, at the same time I would like to say that this in turn had
shifted the focus of the concerned firm from the other elements of the CSR like societal
development, environment development and others which in turn is adversely affecting the
development of the nations in which it is operational like Brazil, Indonesia, India and others.
This as a matter is one of the major weakness of the different CSR initiatives of the firm
under discussion here.
Conclusion
To conclude, the construct of CSR had emerged as one of the most important ones
within the framework of the contemporary business world and is being extensively used by
the different firms to contribute in an effective manner towards the economic, societal and
environmental development of the nations in which it is operational. More importantly, it is
seen that taking the help of this construct the firms are increasingly focusing on its diverse

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elements like economy, society, environment and thereby improve their brand image in an
effective manner. However, it is seen that the firms are currently focusing on merely one of
the above mentioned elements at the utter disregard of the other elements of the construct of
CSR. This in turn hinders the extent of contribution that they have made had they taken into
effective consideration all the elements of CSR since it is seen that all these elements are
interlinked. These aspects become evident from the above analysis of the CSR initiatives
undertaken by the firm P&G and also its extreme focus on the element of economic
development.

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References
Brammer, S.J. and Pavelin, S., 2016. Corporate reputation and corporate social
responsibility. A handbook of corporate governance and social responsibility, 437.
Cheng, N., Holodar, M., Guzman, G. and Pollack, B., 2017. Companies Leaving Its
Footprint: Stepping into Corporate Social Responsibility. Proceedings of the Northeast
Business & Economics Association.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings
and cases in a global context. Routledge.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
Eriksson, D. and Svensson, G., 2015. Elements affecting social responsibility in supply
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Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
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Herzog, L., 2017. No Company is an Island. Sector-Related Responsibilities as Elements of
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Hopkins, M., 2016. The planetary bargain: corporate social responsibility comes of age.
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emerging field of study. International Journal of Management Reviews, 20(1), pp.32-61.

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Lins, K.V., Servaes, H. and Tamayo, A., 2017. Social capital, trust, and firm performance:
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Us.pg.com 2019. Procter & Gamble Company. [online] Available at: https://us.pg.com/
[Accessed 18 Mar. 2019].