Mission Statement Analysis – P&G

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P & G

In 1837, a bold new enterprise was born in Cincinnati: Procter & Gamble. William Procter quickly established himself as a candle maker. James Gamble apprenticed himself to a soap maker. By 1890, P&G was selling more than 30 different types of soap. To meet this increasing demand, the Company expanded its operations outside Cincinnati, with a plant in Kansas City, Kansas, followed by a plant in Ontario, Canada. As each new plant opened, P&G would embark on plans for another. The research labs were as busy as the plants.

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Innovative new products rolled out one after another. The Company that began as a small Midwestern partnership had grown into one of America’s largest multinational corporations. The company emerged as an important new player in health care and in cosmetics and fragrances. Today, P&G offers more products than just soap. Their product line consists of personal and beauty (cosmetics, oral care, hair care), house and home (laundry care, dish soap, snacks and coffee), pet care and nutrition products. P&G’s Purpose Statement reads:

“We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.”

This statement is directed to the consumers of the world: from young children to adults, single to married couples. The purpose statement of Procter and Gamble is clear and powerfully communicates its intentions and motivates the team and organization to realize an attractive and inspiring common vision of the future. It defines the organizational purpose in terms of the organization’s values rather than bottom line measures. It seeks to create value for its customers, shareholders and communities.

P&G takes care of the communities by powering plants with 100% renewable energy, using 100% renewable or recycled materials in all products and packaging, and deliver products with an improved environmental profile. Ensuring the safety of people who use their products, and the safety of the world we all live in, has been at the heart of what P&G does.

The purpose statement of P&G is a reflection of its past performance and future goals. The statement is short and to the point. It says only positive things about the company: what it does and where it is wants to be in the future. Procter and Gamble had been providing many countries with the high quality products for many years and they are striving to be #1 company for the years to come.

P&G participates in the lives of many consumers by improving existing products to complying with all laws and regulations where they are sold. In my opinion, Procter and Gamble’s Purpose Statement is written nicely, and its consistent with what company does.

The company’s purpose statement doesn’t have any direct reference to the company’s ethics. Company’s ethic policy is mentioned in its booklet of “Our Values and Policies” and it reads as:

“While P&G competes hard to achieve leadership and business success, the Company is concerned not only with results, but with how those results are achieved. We will never condone nor tolerate efforts or activities to achieve results through illegal or unethical dealings anywhere in the world.”

Putting ethics statement with the purpose statement would be too wordy, but this statement should be available to the consumers on company’s web site. Adhering to the ethical standards set by the company should not do any harm to the company. It should bring more pride in what company does and how it’s being done.

http://www.pg.com/images/company/who_we_are/pdf/values_and_policies907.pdf http://www.pg.com/en_US/company/purpose_people/index.shtml
October 1-5, 2013

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