This paper will conduct research with the authority of the CEO and the board of the company. The proposal will investigate some of the environmental strategies and schemes implemented by Procter and Gamble. The research is important because the formulation of environmental strategies by corporate will open new markets and have improved relations with the stakeholders that will translate to increased profits for the company. Most of the highly acclaimed strategies by multinationals raises concern such as the extent of integrating old and new activities, time of changing, and consistency of change in the territory. Some of the firms are using the environmental pressure as an opportunity to modify their course in light of global focus. Similarly, stakeholders pressurize the multinationals to observe the environmental standards in their corporate social responsibility (Davies, 2012). The research will solely rely on the peer-reviewed journals from different authors to come up with an assertion on the effort the company makes to safeguard the environment. A programmatic alternative will be applicable to compare the environmental strategy with other firms in addition to other tools and incentives.
Section 1: Introduction to the Organization
Procter and Gamble (P&G) is a company that manufactures and markets consumer goods such as laundry detergents, baby care products, beauty care products, cosmetics, health care products, snacks, and beverages. The company is headquartered in Cincinnati, Ohio and operates in other continents such as Middle East, Europe, Asia, and Africa. The company has more than 121,000 employees as of FY2013 (Procter & Gamble, 2014). The firm is a large consumer good company since its products reach more than 4.8 billion people worldwide (Procter & Gamble, 2014). The company has managed to build a strong portfolio brand with 50 leadership brands that generate the highest percentage of revenue and profits (Procter & Gamble, 2014). The ability of the firm having a strong brand portfolio and being a leader in the market position give it a competitive edge to enable it have a stable financial growth. William Procter and James Gamble from United Kingdom founded the company in 1837 (Procter & Gamble, 2014). William was a candle maker, and James was a soap maker, and both carried out their operation in Cincinnati. They married from the same family, and their father-in-law was pivotal in their collaboration that led to Procter and Gamble. During the American Civil War, the company supplied the military with candles and soap.
P&G earns consumer’s trust since it makes promises and works to fulfill them. P&G brand ensures people live in a sustainable environment through product performance and intense innovation. At the company level, the firm environmental efforts focus on resource conservation in using renewable resources and looking for innovative ways of recycling waste from the products and operations. The long term sustainable vision of P&G is to ensure 100 percent renewable energy and zero waste in a landfill (Davies, 2012).
Section II: Research Question and Hypothesis
In the light of the stiff competition of the consumer goods industry, does P&G have a strategy that will ensure a sustained environment? P&G has been recording a decline in operating profit from 2009 to 2012. The fall of net income worries the investors since they can trace a weak senor management.
P&G has a Global Asset Recovery Purchasing (GARP) team that has the duty of finding innovative ways of reducing the company’s waste and minimize on the disposal costs. GARP collaborates with external organizations to turn waste into a resource. The team has the principle of turning waste into revenue to improve the environment and economic sustainability of the site. GARP program started in 2007 and so far the team has managed to reduce most of the disposed solid waste that would be in landfills. GARP identifies players from the secondary market that serve as alternative sales to reduce the inventories and improve the revenues. GARP collaborates with Site Solution Providers to provide waste management solution in a global perspective and increase the value of recycled materials (Davies, 2012). GARP builds P&G new capacity due to the creation of new alternative uses of materials while avoiding the incineration. The goal of the company is to ensure zero waste to landfill through the use of R&D, by-product synergy network, and technology search companies to look for solutions to address the new challenges.
Section III: Research Significance, Purpose, and Data Collection Methods
The study examines the strategy and implementation of three different companies namely Volvo, Polaroid, and Procter and Gamble. Each uses an environmental issue to develop a unique strategy in the implementation of existing activities. The data collection method used includes the use of interviews from the officials at the firms.
Volvo has five different entities each with a manager where every manager has a unique environmental strategy. In the 1980s, the company faces intense pressure from environmental regulators and activists that threaten the survival of the firm (Maxwell et al. 2007). Volvo hopes to leverage its reputation while meeting the needs of the consumers. The top management develops a distinct corporate environmental profile while staying ahead of the legislation. Volvo strives to increase its legitimacy and credibility in the political circles through intensely environmental activities with the company’s stakeholders. The firm’s management pledges to use manufacturing processes with the least effect on the environment. The company establishes a new management structure to achieve this goal. Volvo initiates an extensive environmental training to at least 70,000 of its employees (Maxwell et al. 2007). The training would inform the workers on how to improve environmental performance in the firm. Consequently, the firm developed tools to assist in evaluating the effects of chemicals in the environment and other raw materials.
The company started in 1930s and designs light polarizing filters, cameras, lenses, industrial, and chemical products (Dombrowski, 2013). In the onset, the firm relied on end-of-pipe controls so as to comply with the environmental regulation standards. The company used an incinerator to treat all its waste. Later on changes in the environmental regulation led to the firm losing the environmental strategy. Middle management in the firm initiated the Toxic Use and Waste Reduction (TUWR) program to eliminate all the waste in the environment. A tracking system called the Environmental Accounting and Reporting System would measure the use of toxics and eliminate the substances (Dombrowski, 2013). To avoid organizational obstacles, the firm relied on an educational campaign with a message so as to portray commitment. A performance review process would encourage a divisional participation to evaluate the environment. The company used a data tracking system to ensure a reduction in the toxic use.
Procter and Gamble
During the 1980s, the consumer product company faced pressure from environmentalists to check on its environmental scope. The company started to integrate global environmental concerns to alleviate pressure from the regulators and the environmental activists. In 1988, the company established an environmental strategy with the focus of reducing and preventing environmental impact of the package design (Dombrowski, 2013). A technical strategy would ensure the product improved to meet customer satisfaction. A team from the company developed an environmental policy with guidelines to inform the employees on the environmental activities. The approach has the capacity of utilizing the source reduction method while integrating with the consumer recycled materials in the package. P&G collaborates with the suppliers to ensure plastic recycling and generate a market for the recycled materials. The benefits from the source reduction initiatives exceed the initial expectations of the company. Source reduction provides P&G with an opportunity of promoting the different brands. The pursuit of environmental goals will create a new business with market opportunities that will increase the profits. Colgate is one of the company’s brand that adopts a recycled plastic. The environmental strategy allows P&G to experience improved stakeholder relations with activists and regulators.References
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Dombrowski, J. P. (2013). Foreign Tax Credits: The Recent Decision In Proctor & Gamble V. United States Allows Procedure To Override The Statutory Intent. University Of Toledo Law Review, 44(2), 405-430.
Maxwell, J., Rothenberg, S., Briscoe, F., & Marcus, A. (2007). Green Schemes: Corporate Environmental Strategies and Their Implementation. California Management Review, 39(3), 118-134.
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