Procter & Gamble India's Sustainable Symphony: Orchestrating Value Creation through the Value Octagon

Corporate Governance:

The company and its employees follow a set of guiding principles called Purpose, Values, and Principles. The employees are expected to uphold high standards of corporate governance, which are reinforced through the Worldwide Business Conduct Manual (WBCM). This manual outlines the company's commitment to conducting business with strong ethical standards and describes the standards of business conduct expected from everyone associated with the company.

The company aims to create shareholder value by serving consumers, retail partners, employees, and communities. Their Citizenship framework focuses on Community Impact, Equality and inclusion, and Environmental Sustainability, guided by strong ethics and corporate responsibility in all their actions.

Risk Management:

The company has a committee and a policy to manage risks, following global guidelines. They take measures to identify and handle risks promptly. They have a solid plan for financial risks and prepare for potential disruptions. They also assess and plan for risks related to key vendors and natural disasters. The company is insured well to protect its assets. They carefully select distributors and vendors. To sustain their business and follow the law, they have a proactive policy to manage risks, aiming to protect employees, assets, and the environment while ensuring business growth. Risks are consistently identified across functions, and the company works to link each risk with a solution to keep the business going. They regularly review a report on risks to ensure they are prepared, recognizing that not all risks can be eliminated.

Cost Management:

The Company's commitment to zero-manufacturing-waste-to-landfill at its Goa plant aligns with environmental regulations and reflects a prudent approach to cost efficiency. By minimizing waste, the company reduces disposal costs and potentially earns savings through recycling initiatives. Compliance with Extended Producer Responsibility (EPR) guidelines on plastic packaging waste collection showcases environmental responsibility and helps manage potential regulatory fines. Moreover, the shift towards 100% post-consumer recycled (PCR) plastic in Vicks' sore throat drop container demonstrates the brand's environmental consciousness while potentially reducing raw material costs associated with virgin plastic.

The energy and water conservation initiatives at the Goa plant also contribute to cost management. Using auto cleaning in chillers, controlling air leakages, and employing energy-efficient equipment lead to reduced energy consumption, positively impacting operational expenses. Similarly, utilizing rainwater for cooling towers and implementing measures for water conservation not only aligns with sustainability goals but may also lead to lower water consumption costs.

Innovation Business Model:

P&G's approach to innovation involves a focus on superior product quality, packaging, communication, go-to-market execution, and value, as well as a commitment to constructive disruption and an agile and accountable organizational structure and culture.

Performance Management:

The company prioritizes employee training on compliance, emphasizing anti-corruption and workplace harassment prevention. They provide health care benefits, including Accident and Health Insurance, maternity/paternity benefits, daycare facilities, and Retirement benefits like Provident Fund and Gratuity. They also provide an opportunity for their employees to purchase shares of Proctor & Gamble USA.   Advanced security programs to ensure employee and asset safety. Business sustainability and governance are maintained through proactive risk management. The company values co-creating careers with employees and fostering authenticity for personal and professional growth. Performance is assessed based on results and individual growth impact. Equality and inclusion are integral in creating a workplace that values every individual, supports diverse consumers, and commits to building an equal and inclusive culture.