Assignment 2: Integrating Culture and Diversity in Decision Making: The CEO and Organizational Culture Profile Proctor and Gamble:
Leadership and Organizational Behavior/BUS 520
January 31, 2014
Dr. Jelena Vucetic
Proctor & Gamble or P&G for short was formed in 1837 in Cincinnati, Ohio by two brothers in law who were originally makers of soap and candles. Proctor & Gamble is a global, publicly traded Fortune 500 company. They operate in over 180 countries. Proctor and Gamble has 50 leadership brands including Tide, Charmin, Joy and Gain. P&G brands are among the world’s best known household names including beauty, baby, feminine, family care, fabric, home care, health and grooming products. A culture is the values and practices shared by the members of the group. Company Culture, therefore, is the shared values and practices of the company's employees. Purpose, Values and Principles are the foundations that make up P&G’s unique culture. Throughout their175-year history, business has grown and evolved while enduring their purpose, values and principles. Proctor & Gamble, states that their purpose is to 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 them with leadership sales, profit and value creation, allowing P&G people, shareholders and the communities in which they live and work to prosper. Diversity & Inclusion at P&G is EVERYONE. It is living it every day. It is experiencing it everywhere. Proctor and Gamble’s core values include Integrity, Leadership, Ownership, Passion for Winning and Trust. Listed Principles are: We Show Respect for All Individuals, The Interests in the company and the individual are inseparable, We are Strategically Focused in Our Work, Innovation is the Cornerstone of Our Success, We Value Personal Mastery, We Seek to Be the Best, We Are Externally Focused and Mutual Interdependency is a Way of Life. P&G is committed to creating a winning culture where colleagues and managers of others demonstrate sincere care for each other, extending a personal touch to each individual, and genuinely getting to know each other. Everyone’s full engagement is expected to ensure that P&G delivers on their mission in every part of our business. Company culture is important because it can make or break your company. Companies with an adaptive culture that is aligned to their business goals routinely outperform their competitors. Proctor and Gamble show signs of the culture I identified as they motivate their employees encouraging them to be innovative, hiring young employees with fresh, new ideas. It appears as they utilize need for affiliation encouraging employees to think in the mind of the consumer. According to Forbes they have ranked No. 6 among the “Global Most Admired Companies”, ranked No. 2 among “Top Companies for Leaders” and have consistent No.1 ranking within industry on “Most Admired” list for 25 of 26 total years and for 13 years in a row. P&G ranked No.3 on the “World’s Most Respected Companies List” according to Barons. Factors that caused Proctor and Gamble to embody their particular culture is the fact that the leaders of P&G continue to work hard to making innovation part of the daily routine, establishing an innovation culture. They sought to create an enterprise-wide social system that would harness the skills and insights of people throughout the company and give them one common focus: the consumer. Without that kind of culture of innovation, a strategy of sustainable organic growth is far more difficult to achieve. Proctor and Gamble also focused on creating a practice of open innovation: taking advantage of the skills and interests of people throughout the company and looking for partnerships outside P&G according to A.G. Lafley chief executive officer in 2000. Their innovation practices are designed for deliberate...
References: Ai, Dan. (May 27, 2013). What A.G. Lafley 's New And Improved Procter & Gamble Must Do Now: Adapt and Change. (Forbes). Retrieved from http://www.forbes.com/sites/avidan/2013/05/27/what-a-g-lafleys-new-and-improved-procter-gamble-must-do-now-adapt-and- change.
Lafley, A.G. (August 26, 2008). P&G’s Innovation Culture. (Strategy and Business). Retrieved from http://www.strategy-business.com/article/08304?pg=all , retrieved on 01/30/2014
Structure and Operations. (2014). P&G.com. Retrieved from http://www.pg.com/en_ANZ/company/structure-and-operations.shtml.
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