Responsible Corporate Decision Making - Eo M Ch5 continued, Case- Proctor & Gamble, Industry - Conglomerates, Corporate funding social benefit activities PDF

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A weekly case study that counts towards the final grade for BUS300s at CSUMB. ...

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xxxxx BUS300s-03 Professor Glenn (05/02/2019) Step one: 1. Stakeholder groups that were harmed and how they were harmed: a. Some of Procter & Gamble's shareholders (A shareholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation) were most likely harmed. Since P&G rather focus on establishing relationships with stakeholders t han creating profits for their shareholders  could many of their shareholders be harmed. b. Some of Procter & Gamble's employees, focusing on establishing relationships rather than profit can lead to financial loss and cuts. Many employees can therefore lose their job if P&G does a financial loss over time. c. Procter & Gamble as a company, focusing on establishing relationships rather than profit can get massive consequences. A company should 2. Stakeholder groups that were benefited and how they were benefited: a. Focusing on establishing relationships with stakeholders  will of course benefit many of Procter & Gamble's stakeholders. b. Procter & Gamble as a company has a good reputation of caring about their shareholders rather than making profit. c. The chairman and CEO of Procter & Gamble, A.G Lafley, running a company with over 2.5 billion customers 3. Stakeholder groups that were denied rights, what those rights were and how their rights were denied: a. The book/case study did not mention any particular stakeholders groups that were denied rights, but I b. Shareholders, many shareholders did most likely invest either their money, time, or both in Procter & Gamble with a vision of making profit out of it. Procter &

Gamble’s vision of establishing relationships rather than profit would most likely harm some of their stakeholders as well. c.

Procter & Gamble’s employees, in case of a financial loss could many of P&G’s employees potentially lose their job which would harm them.

4. Stakeholder groups that were able to exercise their rights and what those rights were: a. Procter & Gamble’s CEO and chairman A.G Lafley was able to exercise his rights, and pursue his philosophy regarding how the company should be controlled. b. Since the main focus for Procter & Gamble was to establish relationships with their stakeholders c ould many of them exercise their rights of course. 5. Stakeholder groups that were economically damaged and how they were economically damaged: a. The book did not mention any particular stakeholder group that was economically damaged, so I will give two examples of potential groups that could have been economically damaged. b. Some of Procter & Gamble’s shareholders that invested in the company with a belief of financial gain could have been damaged. c. Employees that potentially could lose their job and source of income if Procter & Gamble would experience a financial loss. 6. Stakeholder groups that were economically benefited and how they were economically benefited: a. The book did not mention any particular stakeholder group that was economically benefited, so I will give three examples of potential groups that could have been economically benefited. b. Procter & Gamble and the majority of their daughter companies experienced a financial gain at the time of this case study. c. Procter & Gamble’s employees, they had a job to get to and could receive an income. d. Suppliers, wholesalers, and distributors of Procter & Gamble’s products.

7. Stakeholder groups that were legally impacted and what legal requirements applied to the situation: a. The book did not mention any particular stakeholder group that was legally impacted, so I will give one example of a potential group of stakeholders that could have been legally impacted. b. The only stakeholder group I can think about is some of Procter & Gamble’s shareholders that might not agree with the senior executives vision about focusing on establishing relationships rather than profit. They have invested a lot of personal capital and will therefore expect a financial gain. I do not know if this would be enough to go to the court, but it is the only group I can think about. Q1: The ethical dilemma: (what they risk vs. what they gain) of the one of the primary decision

 he major dilemma or question is if focus should be mainly on stakeholders or makers: T shareholders? Should the senior executives of a large and prosperous consumer products firm be concerned about the rights and well-being of the wide range of the individuals, groups and organizations associated in some way with the operations of the company, or should they worry far more about increasing value and generating profits for the owners of the firm? Q2) What you would do and why: I would probably focus both on the company's share a nd stakeholders . I firmly believe that you have to pay both stake and shareholders attention in order to be a successful company. Establishing relationships is of course very important, but my personal opinion is that making profit (and still making ethical decisions of course), and being loyal to your shareholders should be priority one. Step Two: I chose Colgate-Palmolive which is a huge manufacturing company in the health care segment. It was kind of hard to find a similar company since Procter & Gamble “owns” a lot of brands in different kinds of business segments.

● Balancing personal, social and community needs (People): Colgate-Palmolive is taking a responsibility towards the local community. Each day, the 38,000 employees of Colgate-Palmolive share a commitment to bringing you safe, effective products, as well as programs to enrich communities around the world (colgatepalmolive.com/en-us, 2019). Colgate-Palmolive is responsible for over 15 programs in their local communities. Palmolive Clean Hands, Good Health is a program launched in the South Pacific region to promote handwashing in partnership with Bright Smiles, Bright Futures. “Clean Hands, Good Health” works to encourage children to wash their hands by providing handwashing educational resources. Another great program is Give Kids A Smile, which is a program that has provided free education along with preventive and restorative care to more than 5.5 million underserved children who may not have access to dental care. ● Ethical behavior (Ethics): Colgate-Palmolive is working hard everyday to ensure that ethical behaviors are used within the company. C-P is also committed to follow their ethics line. This commitment to ethical leadership is further demonstrated when they hold themselves and others accountable by challenging behavior that conflicts with their Code of Conduct or other policies or by simply asking for guidance when in doubt. ● Concern for issues of fairness (Equity): Again, Colgate-Palmolive is committed to being a fair and ethical company. The Colgate-Palmolive Company provides a number of resources to facilitate your ability to seek advice, ask questions or raise concerns. These resources include: Managers, Human Resources, Global Ethics & Compliance, Employee Relations, our Legal organization and the Colgate-Palmolive EthicsLine.

● Environmental stewardship (Planet): Colgate-Palmolive is taking a huge corporate responsibility regarding the environment and our planet. A cleaner, healthy environment is important to Colgate not only because it is the right thing to do, but also because it makes good business sense for them. C-P is working hard to reduce their manufacturing water intensity by half compared to 2002, partner with local and global organizations to bring clean water to underserved areas of the world, promote use of renewable energy and reduce absolutely greenhouse gas emissions from manufacturing by 25% compared to 2002, and reduce our manufacturing energy intensity by one third compared to 2002. ● Business value-added (Profit): Colgate-Palmolive’s long history of strong performance comes from absolute focus on their core global businesses. This focus, combined with a successful worldwide financial strategy, continues to drive their global growth. Colgate-Palmolive’s annual revenue during 2017 was 15.45 billion USD and $15.544B for 2018, a 0.58% increase from 2017 (macrotrends.net, 2019). Colgate-Palmolive won a number of business related awards during 2018. For example, top three in the world’s most chosen consumer brands. ● Outsider’s view: Colgate-Palmolive seems to be a great company from an outsider’ view. According to their website did Colgate-Palmolive receive a lot of awards during 2017 for their great corporate performance. “2018 50 Best companies for latinas”, “2018 Best companies to work for women”, “Forbes 2018 Best employer” are only a few examples of this. Colgate-Palmolive is controlled by a great Board of Directors. The Board of Directors believes that good corporate governance accompanies and facilitates long-term

success. Colgate-Palmolive is truly a global company serving hundreds of millions of consumers worldwide. Step three: I will summarize and compare the company from our textbook, Procter  & Gamble, and Colgate-Palmolive. Q1). What they are doing well: Both Procter & Gamble and Colgate-Palmolive are taking care of both their stock and shareholders in a great way. According to both companies’ websites are they also working hard for the planet in general and their local communities in particular. Both Procter & Gamble and Colgate-Palmolive are providing various programs to enrich communities around the world. Q2) Are they overall CSR focused: Yes, both Procter & Gamble and Colgate-Palmolive seems to be very CSR focused. It was quite hard to get a picture about Procter & Gamble since the textbook did not give very much information about their corporate structure. Colgate-Palmolive on the other hand is very CSR focused. Colgate-Palmolive is committed to be fair and ethical company. The Colgate-Palmolive Company provides a number of resources to facilitate your ability to seek advice, ask questions or raise concerns. These resources include: Managers, Human Resources, Global Ethics & Compliance, Employee Relations, our Legal organization and the Colgate-Palmolive EthicsLine. Q3) Are they a “green” company/industry: Yes, both Procter & Gamble and Colgate-Palmolive are very environmentally friendly. During Earth Week in 2018, Procter & Gamble released new sustainability goals called Ambition 2030. These broad-reaching goals have one purpose in mind: to enable and inspire positive impact on our environment and society while creating value

for the company and their consumers. In an effort to address two of the world’s most pressing environmental challenges; finite resources and growing consumption Procter & Gamble focused their ambitious goals in these specific areas. Colgate-Palmolive is working hard to reduce their manufacturing water intensity by half compared to 2002, partner with local and global organizations to bring clean water to underserved areas of the world, promote use of renewable energy and reduce absolutely greenhouse gas emissions from manufacturing by 25% compared to 2002, and reduce our manufacturing energy intensity by one third compared to 2002. Q4) Can you respect their leaders: I can honestly say that I respect both Procter & Gamble and Colgate-Palmolive’s leaders. They are treating their shareholders, employees, and local communities amazing. Both P&G and C-P’s leaders want to lead the charge in doing the right thing. Their goal is to use every opportunity they have, no matter how small, to set change in motion. To be a force for good and a force for growth. For the world and for every generation to come. Q5) What are a couple of things they need to address as a company/industry: I think both Procter & Gamble and Colgate-Palmolive have to adjust their businesses from physical stores to online stores. Mobile devices and tablets have greatly changed the shopping process and the path to purchase. These days, you can buy anything from a pizza to an island from home. Due to this simplicity, new online shops are constantly popping up to cater to different customer segments (business.com,2019). This is a common challenge for many companies today. If they manage to adjust. I truly believe that both Procter & Gamble and Colgate-Palmolive will continue to be very successful in the future.

References: Brands. (n.d.). Retrieved May 1, 2019, from https://us.pg.com/doing-what-is-right/ What Makes a Successful Online Store? (n.d.). Retrieved May 1, 2019, from https://www.business.com/articles/what-makes-a-successful-online-store/ Palmolive – Global Household & Consumer Products. (n.d.). Retrieved May 1, 2019, from https://www.colgatepalmolive.com/en-us...