Sustainable Consumption of Procter and Gamble

This report analyzes the sustainable consumption of Procter and Gamble along with comparing the company with its major competitor that is Unilever. The paper will also analyses the role of government whether it is an enabler or barrier in motivating the sustainability strategies of the company.

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Sustainable Consumption of Procter and Gamble
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1SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
Table of Contents
Introduction..........................................................................................................................2
Theoretical Positions...........................................................................................................2
Stakeholders Approach in P & G’s Sustainability...........................................................2
Theoretical Frameworks......................................................................................................4
Three Pillars of Sustainability.........................................................................................4
Kuznets Sustainability Curve..........................................................................................7
Role of Government............................................................................................................9
Responsible Marketing of P & G Company......................................................................10
Comparison with Other Companies in the Industry..........................................................10
Conclusion.........................................................................................................................13
References..........................................................................................................................14

2SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
Introduction
Procter and Gamble is positioned as a company that develops diverse products and its
motive is to attain consumer demand. The company has branches in more than 70 nations and its
environmental science department has an exceptional function in making sure that the products
are safe for the consumers to use (Boboc, Ariciu and Ion2015). Environmental safety is an
internal part of quality that the company builds within all its products. The objective of this
report is to analyze the sustainable consumption of Procter and Gamble along with comparing
the company with its major competitor that is Unilever. The paper will also analyses the role of
government whether it is an enabler or barrier in motivating the sustainability strategies of the
company. The report will also focus on analyzing the health care product segment of the
company along with carrying out Kuznets’s curve approach in evaluating company’s sustainable
position.
Theoretical Positions
Stakeholders Approach in P & G’s Sustainability
Stakeholders of Procter and Gamble have provided numerous opinions about evaluating
the health care product segment of the company (Cervanteset al.2015). It was gathered, the
employees declared that the company made several important decisions regarding the ways in
which it deals with purchasing and procurement of various raw materials and components. They
also stated that one of the major decisions that changed the sustainability consumption of P & G
Company is its implementation of “Supplier Environmental Sustainability Scorecard”. Such
sustainability scorecard was the precursor to greater sustainable consumption initiative that had

3SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
an objective of encouraging suppliers to improve its sustainable position. The investors of P & G
reported that it develops and sells “sustainable innovation products” that significantly facilitates
in decreasing environmental population (Chang and Slaubaugh 2016). In the year 2007, the
company replaced the packaging of its health care products with double concentrated formula.
This has facilitated the company in saving the use of its packaging materials along with
decreasing wastes. As perf the sustainability report of P & G, the management of the company
reported about its sustainable operations to all its investors. It was mentioned in the report that
the company established “sustainable development team” within the offices (Chang and
Slaubaugh2016). By means of “green recycling box”, the company recycled more than 4800 kgs.
of waste paper that is exchanged for set of new paper pieces. It is also gathered that power
consumption of the company decreased by 10% that saves 17 million kwh. Moreover, in certain
distribution centers and factories, the company also installed solar power along with rainwater
processing device for decreasing energy consumption. The consumers of the company reported
that P & G offers programs that promotes healthy behavior of people that can prevent illness
along wit enhancing confidence of people those are in need (Epstein, Buhovac and Yuthas 2015).
All the health and beauty care brands of this company have developed programs that offers
benefits to the brand in promoting consumer health and hygiene. The health care product
segments of P & G have initiated programs to enhance consumers wellbeing. UNICEF and
Pampers are working collaboratively to provide vaccinations to children and women all through
the world from “Maternal and neonatal status tetanus (MNT)”. Consumer survey about the
company’s health care product ranges revealed that P &G offers everyday essentials that can
facilitate in developing experience of the families those are not capable to afford them or are
displaced (Fitzpatrick, Hickey, Schischke and Maher 2014). Health care brands pf P & G

4SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
includes Vicks, Ariel, Tide, Whisper, Olay, Pampers, Pantene, Oral B and Head and Shoulders
come together in assembling personal hygiene kits. All the health care product of the company is
kept ready for delivery in immediate repose to the areas those are impacted by disaster. The
global environment protection communities reported that P & G responds to the disaster
situations through product donationsMoreover, the mobile relief units are developed to offer
health care products in highly impacted regions. From the sop to the personal hygiene goods the
brand offers laundry, diaper along with cleaning products for helping people in need (Goldsmith
2016).
Theoretical Frameworks
Three Pillars of Sustainability
Following the three pillars of sustainability model Procter and Gamble attempts to deal
with the environmental, social responsibility along with economic development concerns related
with the health care products (Hu, Boardman and Wright 2016). For instance, all the health care
products have implications for the:
 Social responsibility:Health, hygiene along with education
 Environment:Use of resources such as materials and energy, water quality along with
availability, emissions and waste
 Economic development:Employment, shareholder value along with taxes, fees and
contributions

5SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
Figure 1: Three Pillars of Sustainability Model
(Source: Hul.co.in.2018)
Resources employed in developing health care goods and services generating emissions
and waste. A simple sustainable development program explains the fact. For instance,
developing a health care product needs raw materials, packaging along with energy as inputs.
Rather than tangible packed product, certain other significant outputs will include materials for
recycling, reusing along with on-site treatment, non-hazardous solid waste, air and water
emissions along with hazardous solid waste (Trivedi 2014). All of them including chemicals
used in its beauty products and dossal of its sanitary napkins are deemed to have environmental
impact.
P & G has considered to innovate and develop a health care product range that helps its
consumers to attain an effective and better-quality life along with obtaining better opportunities
for itself. It indicates that it is possible for P & G to attain environmental protection, social

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responsibility along with economic development for surviving internationally. There is a synergy
between social equity, economic development along with the environment (Us.pg.com. 2018).
Economicdevelopment of the company can be attained through leveraging its power of
innovation. Sustainable production of all its beauty care ranges indicates a huge step towards
making its business sustainability an integrated topic within the organization. This approach
facilitates the health care ranges of P & G to associate its concerns with the values it attempts to
generate by associating economic, social issues to the triple bottomline values associated with
economic sustainability (Woolmanet al.2017).
Figure 2: Sustainability Matrix

7SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
(Source:Ziegler and Gerhartz 2016)
The company also attempts to address the social causes associated with its sustainability.
P & G health care ranges are capable too positively contribute towards enhancing its sustainable
position. For instance, its Fairy Liquid Extra Hygiene is an antibacterial dishwashing liquid that
is playing a vital function that can facilitate in controlling bacteria when employed in addition to
better household hygiene practice (Ziegler and Gerhartz 2016). Developing the beauty care
ranges of the P & G Company maintains a sustainability culture in which all he members of the
company believes in the relevance of balancing economic efficiency along with maintaining
environmental accountability. Social causes are addressed by the company through developing
products that is focused on continual learning along with previous success within implementing
incremental change. P & G attains a track record of the sustainable outside-in products like
safeguard that social and global concern that increases the company’s business opportunity.
Kuznets Sustainability Curve
Figure 3: Kuznets Sustainability Curve
(Source:Ziegler and Gerhartz 2016)

8SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
Kuznets sustainability curve explains the relationship between economic development
along with environmental quality. This indicates several indicators of the environmental
degradation that tends to be worse as modern economic growth takes place till the average
income of P & G reaches a particular point over the deployment of the course (Sneha, Pritesh
and Yogesh 2016). Considering the curve, it is observed that P & G is committed in order to
provide consumer brands that addresses the consumer expectations without compromise. The
company has reached the turning point of attaining environmental improvement in which it
attains increased per capita income through giving back to the communities in which it operates.
The two focus areas for P & G that results in environmental improvement for community effect
work, health, hygiene along with attaining comforts of home. Through offering its health care
products, P & G attempts to promote healthy behavior which can prevent illness along with
enhancing confidence of all its consumes (Yunet al. 2017). Along with hand washing, personal
hygiene along with tooth brushinginstruction associated with better access to sanitation facilities.
A number of beauty care brands of the company have programs that have attained the turning
point towards environmental improvement. This includes aa number of beauty care products of P
& G that offers brand benefits in order to promote the confidence and health(Sneha, Pritesh and
Yogesh 2016). The company has earned high revenues from its sustainability programs through
offering product donations from its health care brands like Whisper and Vicks along with
offering monetary donations. This offers a long standing emergency relief partner companies
AmeriCares andInternational Medical Corps that can save children along with world vision
resulting in increase of the company’s per capita income (Sneha, Pritesh and Yogesh 2016).
Main focus of P & G Company must focus on the biggest brands that offers significant
environmental improvements because of their size along with the international research.

9SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
Improvement in environmental sustainability as well as its revenue is offered by the company’s
health care brands such as Pampers and Olay. In addition, the focus of the sustainable innovation
products is to attain the same devoid of trade-offs for its consumers. Major focus in attaining the
turning point situation was on enhancing its technological environment that considers improving
renewable or recycled materials in all its health care product ranges along with their
packaging(Sneha, Pritesh and Yogesh 2016). For instance, P & G uses plant-based plastic for all
its shampoo bottles, designs products that facilitates in conserving resources suchas cold water
washing along with less energy use. Employing the technology of packaging reduction considers
shifting from plastic thermoform clamshells to a paperboard carton.
Role of Government
Government acts as enabler in encouraging sustainable development of P & G’s strategy
of attaining long term environmental sustainability vision. Considering such goals, the
government has supported the company in attaining its sustainability regarding renewable
materials, waste reduction, using renewable energy along with packaging reduction (Morgan,
Foxon and Tallontire 2018). In addressing the issues related to such concern P & G needed
collaboration along with collective responsibility. The company are committed to partnering with
the government that makes sure it shares expertise along with focusing on developing solutions.
In commitment to the sustainability, the company made successful partnership with government
for clean nation initiative in order to protect the environment as well as decreasing waste to
landfills(Sneha, Pritesh and Yogesh 2016). Health care initiatives of the Company with its
products such as shampoo, sanitary napkins and razors is attaining increased government support
through setting manufacturing plants that can decrease dependence on price imports (Payaud
2014). Through attaining fund support from the government for research and development

10SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
initiatives of the company, P & G have set its global sustainability goals. This has facilitated the
company in keeping the nation clean through developing initiative of developing technology in
decreasing waste to landfill that supported in up-cycle of sustainability waste.
Responsible Marketing of P & G Company
P & G is observed to follow responsible marketing strategy in the approach of sustainable
promotion of its health care products. Following such strategy, the company attained marketing
Golden Halo award (Goldsmith 2016) in their approach of suitable marketing. For instance, its
heath care product such as Oral B is marketed among its consumers through providing
promotional messages on its innovative toothbrush ranges that can bring dental health benefits.
In responsible marketing the company made partnership with many NGO organizations and
offers free samples of its health care products to deprived children. This has enhanced brand
image of the company among its consumers and has resulted in increased acceptability of its
products by its target consumers.
Comparison with Other Companies in the Industry
In maintaining sustainability, Procter and Gamble faced tough competition from Unilever
that is one of its major business rivals. Both of these companies have attained its utmost
sustainability ambitions for attaining its global growth plans. Unilever is observed to own its
own heath care brands like Dove, Walls and Hellman’s those were observed to be manufactured
sustainably by the company (Goldsmith 2016). The products decrease the water, waste along
with carbon imprints of its health care products which make sure that all the raw materials are
sourced sustainably. For attaining a better sustainable position that Unilever, P & G has focused
its sustainability vision on its brands such as Gillette, Ariel and Pringles (Sneha, Pritesh and

11SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
Yogesh 2016). The company are committed to partnering with the government that makes sure it
shares expertise along with focusing on developing solutions. It makes sure that in
manufacturing such products employ renewable or recycled materials in packaging and products
along with stopping all manufacturing. Moreover, the brans also make sure that all the consumer
waste to go into land will. Procter and Gamble has attained sustainabilityadvantages in
comparison to the unilever. Procter and Gamble has set industry benchmarks for enabling the
company in using sustainability strategies (Hu, Boardman and Wright 2016). The company’s
SCALA results that encompass head of sustainability responses in consideration to three
benchmarks:
 An aggregate of 10 people representing the companies in North America
 An aggregate of 49 people representing consumers within consumer products industry
The results gathered from such benchmarks indicated that P & G is performing in a better
manner in comparison to its benchmarks on one concern necessary for the sustainability culture.
The sustainability advantages included rewarding innovations as this resulted insustainable
development realms of the environment and economy that impacts of social aspects of
sustainable development (Iannuzzi 2017).

12SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
Figure 4: Sustainability Performance
(Source: Fitzpatrick, Hickey, Schischke and Maher2014)
The benchmark evaluation indicated that there is insufficient visibility of P& G sustainability
strategy and its competitors are performing well in outperforming the sustainability benchmark.
While Unilever is observed to be the major competitor of P & G. The company is making great
attempts in ensuring sustainability through claiming to bring clean water to most of the people in
rural areas through offering health care products such as Lifebuoy (Liedtkeet al.2015).
Considering the same, P & G is facing tough competition based on sustainability as it is based on
dealing with health-related issues. However, the company also finds it challenging to engage its
consumers in making easy changes that canreducesconsumers as well as the company’s
environmentalimpacts. In an attempt of performing based on benchmark P & G has maintained

13SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
its environmental impact of its offerings alongwith offering farmers along ith distributors in the
developing nations to the supply chain (Mylan 2015).
Conclusion
The objective of this report is to analyze the sustainable consumption of Procter and
Gamble along with comparing the company with its major competitor that is Unilever. It was
gathered from analysis that the company is observed to attain increased external recognition for
its sustainable development initiatives. It was also concluded that based on the company’s
sustainability approaches it has been able to attain the first place within the sustainability index.
The report reflected that P & G have developed a range of innovative heath care products and
ensured that all of these products are developed in consideration to environmental protection,
social responsibility and economic development of the company. Sustainable development of its
products have enhanced brand image of the company among its consumers and has resulted in
increased acceptability of its products by its target consumers. Hence, it can be recommended
that the company must continuously develop its sustainability initiatives in keeping the nation
clean through developing initiative of developing technology in decreasing waste to landfill that
supported in up-cycle of sustainability waste.

14SUSTAINABLE CONSUMPTION OF PROCTER AND GAMBLE
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