Sustainability

Why product safety is important?
P&G
Safety of our products is a prerequisite
for responsible business (P&G website)

ECONOMIC PERSPECTIVE
Increase likelihood that products
will be chosen by consumers.
http://www.jstor.org/stable/25074153

CPSC (CONSUMER
PRODUCT SAFETY Protecting consumers and families
COMMISSION)
from products that pose a
fire, electrical, chemical, or
mechanical hazard. http://www.cpsc.gov/about/about.html

What is a “hazardous product”?
The CPSC (consumer product safety commission) defines three
degrees of product hazard:

1.unreasonable risk;

2.substantial product hazard;

3.Immediate: a hazardous consumer product.

Retrieved from
http://www.jstor.org/stable/1251067

P&G in product safety
1.Safety heritage:
“if you cannot make pure goods and full weight, go to something else
that is honest, even if it is breaking stone” (co-founder, James Gamble).

2.Fulfilling our Commitments:

700 in-house experts globally.

Promoting, researching and enhancing
product safety.

3.Using a Science-based Approach to Evaluate Safety

http://www.pg.com/en_US/sustainability/index.shtml

P&G policy on product safety
1.Safe products and packages
2.Safe operations
3.Meet/exceed all applicable legislative/regulatory requirements
4.Provide interested parties with relevant/appropriate factual information

P&G product safety assurance key elements
1.Company-wide/global product safety policies applied consistently.
2.Pre-Market, science-based assessment of product safety.
3.Rigorous control of production
4.Post market surveillance and rapid response.


Pantene
Committed to Renewable Materials
Pantene is piloting the use of plant-based plastic in its packaging.
Innovative material made from sugarcane — a first for the mass
hair care industry — debuted in the Pantene Pro-V Nature Fusion
collection last April in Western Europe, and is expanding to North
America in Fall 2011.

The sugarcane is
converted into
ethanol and
eventually into
plastic utilizing a
by-product from
the rest of the
plant to provide
some of the
energy needed
to fuel this
process.


Gillette
Committed to Packaging Reduction
New packaging launched in
W.Europe:

57% reduction in plastic compared to originally
launched Fusion.

20% reduction in gross weight compared to
original Fusion launch package.

To minimize plastic, use of fibre material made
from bamboo, sugarcane, and bulrush.


How to promote product safety?
The U.S. Consumer Product
Safety Commission has
launched an investigation into
Pampers diapers with
Dry Max after some parents
complained that the new
Procter & Gamble Co diapers appear
to be the cause
of rashes and chemical burns on their
children. http://www.reuters.com/article/2010/05/05/us-procter-
pampers-idUSTRE6444RW20100505
Recommendation given
by CPSC:
Act promptly;
Improve quality control;
Establish voluntary standard;
Consumer education program;
Experts involvement.
Retrieved from A Review and Critical Evaluation of the Consumer
Product Safety Commission: Marketing Management Implications

Employees & Stakeholders
Employees & Stakeholders are critical enablers of
our sustainability programs.

P&G Show Respect for All Individuals:

• All individuals can/want to contribute to their fullest
potential.
• Value differences.
• Inspire/enable people to
achieve high expectations, standards
and challenging goals.
• Honesty in performance with people.

Retrieved from
http://www.pg.com/en_US/sustainability/product_safety.shtml

Our Enablers
1.equip ALL P&G employees to be sustainable in everyday
thinking/work practices.

2.transparency with stakeholders. Allows P&G continued freedom to
innovate in a responsible way.

Delivering the environmental and social programs


Employee contirbutions to sustainability
• responsibility for energy, water, waste reductions
Lighting that will save 245,000 KWh (or enough power for 16 average homes for a year) upgrades at the P&G
Mexico

• Managed Print Services :
Today we can print anywhere in the P&G print world, scan to email, print two-sided, eliminate the cover
pages, and use smart color. In just one year, P&G has printed 11 million fewer pages, and that number is
expected to grow considerably.

• Earth day
The practice of “Turn over your trash can.” employees were challenged to not use their individual trash can
for a week to consider how they personally could reduce the waste they produce and recycle more. At
many sites all over the world, teams implemented centralized waste stations, where employees gave up
their trash can and disposed of waste, recycling, paper and compost at a centralized station on the floor.

Landscape watering system redesign collects rainwater or irrigation in Buenos Aires saving an estimated 340,000 liters of water a
year.

Employees: Human Rights at P&G

Respect for human rights implemented through policies,
practices and due diligence systems (e.g., employee rights;
employee benefits; health, safety, and environment; water;
health services)

P& G INVOLVEMENT
 UN report on Business and Human Rights by Harvard Professor John Ruggie, Secretary-
General’s Special Representative for Business and Human Rights
 Update to the Organisation for Economic Co-Operation and Development (OECD)
guidelines for multinational enterprises

Going forward. “….use of UN based Guiding Principles for Business and Human Rights” to identify
and address any gaps in our human rights policies and programs.

Employees: Diversity & Inclusion

Diversity Metrics:
P&G continues to focus on diversity as a
global strategy and expects its work force to
become increasingly diverse, enabling P&G to
serve more of the world’s consumers.

Retrieved from http://www.pg.com/en_US/sustainability/index.shtml

Employees: Diversity & Inclusion
FORTUNE
• World’s Most Admired Companies
(#5 overall; #1 in our industry)
• Global Most Admired Company
(2011—# 5 / #1 in Industry)
• Top Companies for Leaders (2010—#2)
• Most Powerful Women—Melanie Healey P&G Recognition
(#13), Gina Drosos (#39), Deb Henretta
(#20 – International)
Diversity Inc.
• Top Company for Cultural Competence (2010) In 2011, P&G’s solid progress
• Top Companies for Diversity (2011 #25) in diversity and inclusion was
• Top Global Diversity Companies (2011 #8) recognized in many global
• Top 10 Companies for People with Disabilities
(2011 #6)
and U.S. surveys:
• Top 10 Companies for Latinos (2011 #5)
• Top 10 Companies for Asian Americans
(2011 #9)
• Top 10 Companies for Recruitment &
Retention (2011 #9)
• Top 10 Companies for Executive Women
(2011 #5)

http://money.cnn.com/magazines/fortune/most-admired/2012/snapshots/334.html

Communities:
build constructive relationships with local authorities, industry
associations, residential and business neighbours, action groups, thought
leaders, and news media.

Authorities:
communicates with local, regional, and global authorities directly, both as an
individual company and through industry associations.

Non-government organizations:
enters into dialogue with nongovernmental organizations (NGOs) to
understand their concerns and cares.

Consumers:
meeting the needs of our consumers by providing products and services that
can help improve their lives.

Sustainability Guidelines for Supplier Relations

• Expecting our suppliers to comply with all applicable laws
of their country.
• Any personal payment or bribe to individuals employed by
P&G’s customers or suppliers is strictly prohibited.
• Placing substantial value upon incumbent and potential
suppliers who consistently respect basic human rights.
• Respecting employees’ right to freedom of
association, where allowed by law.


On supplier level:

http://www.pgsupplier.com/en/current-suppliers/environmental-sustainability-scorecard.shtml

SC Environmental Sustainability Scorecard (FILL IN ALL APPLICABLE SHADED CELLS; NON-SHADED ARE OPTIONAL)

Submit Date (Month DD, YYYY): Scope Code & Annual Data:
Company Name/Unit (below): Enter Scope Code (based on your capability to measure):
P = P&G Product-specific materials and services (DESIRED)
S = Site(s) (combined total) that create for P&G
C = Corporate level
NA = Measure does not apply to my industry/service (explain)
2011 (Current Year) 2010 (Past Year) yyyy

I Status
Unit of Measure
Core Measure (from dropdown menu)
Jan - Dec Jan - Dec Jan - Dec
Scope Data Scope Data Scope Data

(Electric) Energy Usage

(Fuel) Energy Usage

(Input / Withdrawal) Water Usage

(Output / Discharge) Water Usage

Hazardous Waste Disposal

Non-Hazardous Waste Disposal
Kyoto Greenhouse Gas
Emissions Direct (Scope 1)
Kyoto Greenhouse Gas
Emissions Indirect (Scope 2)
C C C
N
Annual Volume/Output P P P
A
S S S

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