- All companies have the same responsibility of growing the business and creating stable and postive financial perfomance. Pursuing of innovative and efficient competitive strategies allows companies to become leaders on the market. However, constantly making profit is almost impossible without realizing the need of a company's corporate social responsibility strategy.
But what is the corporate social responsibility strategy?
Corporate social responsibility (CSR) strategy is consisted of five types of actions: actions to ensure the company operates honorably and ethically; actions to contribute to community service and better the quality of life worldwide; actions to protect and sustain environment; actions to provide good working conditions for employees; actions to promote workforce diversity.
Consequently the question arises why it is essential for the companies to implement these actions?
There are two reasons of why it is important. First, if company performs unethically and morally wrong, it can inadequately reflects on the company's employees. Second, ethical strategy can successfully contribute to the business and serve the self-interest of shareholders.
Procter&Gamble is a great example of showing how utilization of corporate social responsibility strategy can effectively contribute both to the society and financial performance. In this review, I demonstrate the Procter&Gamble's CSR strategy, specifically all five types of actions that I mentioned before, and how the company implements these actions according to the recent news. Finally, I show the benefits that P&G receives by using CSR strategy.
- Procter&Gamble clearly stated the four main entities that CSR encompasses: environmental sustainability, social responsibility, employees and stakeholders.
- The first component of Procter&Gamble's corporate social responsibility strategy are actions to ensure the company operates honorably and ethically. In this article, P&G expains that its purpose is providing quality products, while value of the products contributes to better live of costumers around the world. P&G's understanding of ethicals standards also derives from the fact that P&G brands serve about 4.6 billion of the nearly seven billion people on the planet today and that capability allows company to pursue socially responsible business behavior
- This tweet and linked article proved the idea that sustainability can be profitable if company sufficiently and effectively uses the new innovative ideas that gain both the profits of shareholders and involvment in providing better life to society.
- Second component of P&G's CSR strategy are actions to participate in community service and better the quality of life around the world. Company explicitly stated their goals in terms of its products, operations and social responsibility and also demonstrated current accomplishments, such as gaining of $52 billion in sales of sustainable innovation products; reducing the usage of water and energy in more than 25%; progress in helping children.
- Several recents activities show how Procter&Gamble implements its participation in community service and help in creating better life around the world.
- This video displays the general idea of the company of creating vibrant community whereas P&G operates. As an example, Procter And Gamble presented a check from the P&G Fund for $1 million to the Cincinnati Parks Foundation to support the creation of the P&G Vibrant Playscape in Smale Riverfront Park.
- This video is perfect example of P&G's participation in community affair as company have been maintainting a 15-year partnership with Miami hispanic charity against cancer - "League Against Cancer". It demonstrates P&G's strong willingness to support charitable causes. As one interviewee said "It is not causal relationship, it is a commitment, it has been demonstrated as comminment for both sides".
- Moreover, Procter&Gamble extensively demonstrates their efforts to create a better life by providing various medical and hygiene services around the world. Brand manager fo Oral B for P&G Nigeria clearly explained “it is this Purpose that has inspired P&G to provide dental professionals with helpful education tools such as dentalcare.com, provide Nigerians of different social classes FREE access to routine dental check up and consultancy through the Oral B Mobile Dental Clinic and introduced in Nigeria the most advanced toothpaste and manual toothbrush technology in Oral B Pro-Health All-Round Protection toothpaste and Oral B Pro-Expert toothbrush.’’
- Also, Procter&Gamble provides hygiene services for schools such as this example of providing special services in order to decrease the level of illnesses among students in schools.
- Moreover, Procter&Gamble contributes to educational systems in developing countries in order to make our world more educational, and consequently make a difference in the lives of the disadvantaged.
- Third component of the P&G's CSR strategy are actions to protect and sustain the environment. P&G effectively utilizes its innovative capabilities to reduce environmentally harmfull aspects of the company's operation in order to improve the environment and support local communities.
- The latest sustainability report released that progress toward long-term vision by demonstrating its commitment to making everyday life better for people around the world through an integrated approach to environmental and social responsibility