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Five Stage Model Analysis of Proctor and Gamble Company


Procter and Gamble is a public limited company and was formed in 1890. Company total numbers of employees are almost 200,000. Procter and Gamble leads in consumer goods area. It is considered as the leading company in United State for making the household products. It is operating in almost 80 countries and marketing its almost 300 brands in all over the world. Company is conducting its business globally and its major portion of revenue comes from other countries. It is largest advertising company in industry, as it promotes its products globally and it is also considered in the aggressive marketers. It carries extensive research related to marketing and its products. Company conducts many projects for the enhancement of the employee's awareness towards the environmental issues. Program related to the profit sharing of the employees was first developed by this company. Procter and Gamble formulates sustainability goals and objectives and has been successful in the achievement of these goals. It also accomplishes different environmental campaigns. (P&G, 2009a, 2009b, 2010)

Main Body

Five stages of sustainability reporting model is described below.

Stage 1: Green glossy

Sustainability development ensures the high quality life. Sustainability initiatives are an integral part of the policies of Proctor & Gamble. One such initiative is decreasing the size of the packaging. Every year Proctor & Gamble releases a sustainability report that is linked to the goals and objectives of the company. Core purpose of sustainability development is to provide high living standard to everyone and to bring improvements in people's lives. Company's objective is to provide the innovative products and services to the end users. Procter and Gamble wants to have competitive edge on other companies by producing more innovative products lines and for this it utilizes more innovative resources in its production, manufacturing and R&D departments. Because of the exploitation of innovative approaches, company's products conform to the needs and requirements of the customers. It is facing new business challenges and to compete with these challenges company achieves its sustainability goals, in each year and over the long period of time. (P&G, 2009a, 2009b, 2010)

Company takes advantage of its large scope and global scalability, this scope makes company unrivalled in its industry. Consequently, it produces steady products and does more innovations than its competitors. Procter and Gamble tries to maintain and improve its sustainability development and profile by providing consumers and customers with their required products. Company also takes social responsibility and provides training to its employees about the environmental issues that pertain to the company. (P&G, 2009a, 2009b, 2010)

Stage 2: One-off

Company's aim is to progress and excel in its operational environmental profile in all over the world. It is trying to reduce the usage of water and energy. Procter and Gamble is making use of less hazardous materials to make the environment free from pollution and company's progress is significant against these objectives. Company engages and equips every employee's thinking with sustainability approach and also forces them to follow this approach in their regular work. (P&G, 2009a, 2009b, 2010)

Stage 3: Descriptive

P & g sets measurable objectives and sustainability goals to contribute to environment. The reports clearly state the goals and objectives and a clear description of what has been done and what needs to be done by the company for innovative sustainability. Procter and Gamble is formulating many projects and conducting many pilot projects for making the employees more responsible and accountable. Company wants to shape the future of present and coming generation and for making it possible, company is collaborating with its stakeholders in all around the world e.g. company is working with trust for the energy saving, which encourages the people to do their clothes washing with cold water. Nevertheless, company's history provides evidences that it has maintained its sustainability approach and this approach is consistent with the company's basic principles. Procter and Gamble is committed to meet its sustainability goals consistently in long run. (P&G, 2009a, 2009b, 2010)

Stage 4: Characteristics

Procter and Gamble seeks opportunities and innovations at every point in the production of its services and products. Company does investments also for reducing the hazardous environmental issues that can occur from its operating activities. These issues can affect both company's facilities and its processes. Company discovers innovative tools by using different scientific technologies and approaches for sustainability and re-usability opportunities of its products. (P&G, 2009a, 2009b, 2010)

Procter and Gamble provides innovation through the improvements in products that can be identified or through the invisible operational advancements. Company makes the employees more responsible for the achievement of the sustainability objectives. Employees lead these goals in the external and internal environment of the company. Procter and Gamble boosts its product concentration, inventory efficiencies, and precise predictions and also prevents the remnant run out within the company. It is taking sufficient actions for waste reduction, less water usage, less emission and less energy utilization. (P&G, 2009a, 2009b, 2010)

Procter and Gamble has increased its sales thrice in the past seven years and has doubled the number of its brands. Company performs its businesses globally and in accordance with its organizational structure. It uses innovative resources that make company capable to compete with the growing business trends globally. Procter and Gamble carried out many acquisitions and divestitures. It proceeds from the sales of its assets and also made many global purchases.

Main purpose of the company is to provide the superior quality branded services and products. It presents value in products and services to the customers and consumers. Company believes that it exists because of its people. It provides value to its customers and considers that man, children and women as its real and key assets. Company maintains its integrity by doing right thing at right time, complies all legislation and regulations, uphold company's principles in making every decision and it fabricate logical and honest risk recognitions.

Procter and Gamble carries good leadership management. Every employee in the company is having clear vision about the company. Company focuses its resources to attain the objectives and goals of leadership. It delivers its strategies and eradicates all the barriers towards its progress. Procter and Gamble is determined to produce the best and does not agree with status quo. It always promotes healthy and positive changing within the company. (P&G, 2009a, 2009b, 2010)

Stage 5: Company responsibility

Proctor & Gamble considers it its responsibility and the responsibility of its employees to provide sustainable and environmental friendly products. Before releasing a product Proctor & Gamble analyses its impacts on both global and local environment. They have created products like washing powder that saves water. Their standards are well documented and communicated throughout the company, in each and every department. Company takes much consideration towards the ISO standards while producing its products. All of its products conform to the standards of the ISO. Some of the company's research scientists have also been working for many years in the ISO 14020 series. This series settle the standards for environmental labelling. Company products are always ISO certified. (P&G, 2009a, 2009b, 2010)


Procter and Gamble products should be recycled and reused. They should be environmental friendly, although company is producing environmental friendly products but excessive use of plastic can create hazardous environmental and air pollution issues. Employees of the company should have clear understanding about the vision of the company and should be motivated enough to provide optimistic results in terms of the better work commitment. Procter and Gamble should take extra precautionary measures for the reduction of waste, usage of water, emission from factories and utilization of energy. It should produce products according to the ISO standards and according to the defined limitations of this standard.


Procter and Gamble is ensuring high level of sustainability development. Main aim of the company is to give high quality life to its consumer and customers using this sustainability development. Company considers its people as its real assets. It is providing innovative products and services to satisfy its customer's needs and requirements. Company has gained competitive edge over its competitors through these innovative products lines. It is introducing products that can be recycled and reused again. Procter and Gamble is taking manifold advantages of its large scope and producing products more steadily with less time to market of the product. It is maintaining its sustainability development and profile through the satisfaction of its customers. It is providing awareness about hazardous environmental and air pollution issues and problems through various programs among its employees. Procter and Gamble is making its employees more responsible and accountable for attaining the sustainability objectives and goals. All Procter and Gamble's products are IS0 certified and conform to the ISO standards.


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