Proctor And Gamble Integration Case Study

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“Conglomerate integration occurs when a company produces a number of different product lines in a variety of countries” (O 'Brien and Williams 2013). There are few multinational corporations that fit this description better than Proctor and Gamble. Proctor and Gamble, commonly referred to as P&G, is everywhere. It is a multinational corporation that has been catering to a wide variety of sectors since 1837- including cleaning products, health care, and beauty. As of 2014, $83.1 billion dollars in sales had been recorded. Some of P&G’s most popular brands include Always, Aussie, Charmin, Crest, Dawn, Febreze, Gillette, Olay, Old Spice, Pampers, Pantene, Swiffer, and Tide- yet these are only a few of the 66 brands ("P&G - Our Brands" 2018). Clearly,…show more content…
Instead of purchasing palm oil from companies with sustainable practices, P&G has been exposed for purchasing it from firms such as BW Plantation. BW Plantation is a third-party supplier for palm oil company Asian Agria. This company, among other suppliers, have been linked to the massive deforestation and orangutan and tiger habitat destruction taking place in Central Kalimantan and Papua, mentioned earlier. In fact, it was found that less than 10% of the palm oil P&G uses in their products had been sustainably sourced (Puiu 2016). In the Kalimantan region, 1,400 square kilometres of orangutan habitat were cleared between 2009 and 2011. Furthermore, approximately 17,000-30,000 square kilometres of forest in Kalimantan has been lost in total due to the extraction practices that occurred between 1990 and 2005 (Greenpeace 2013). Studies of regional biodiversity have shown that approximately only 15% of species recorded in primary forest areas were found in areas with oil palm plantations- this difference demonstrates the harmful way in which plantations affect ecosystems (Fitzherbert et al. 2008). The rainforest destruction this causes contributes to climate change and tropical biodiversity loss, as explained in the Greenpeace report, License to…show more content…
In fact, P&G is known for their “Make a Difference” campaign, which not only entails donating thousands of bottles of Dawn to aid in cleaning animals that were caught in oil spills, but also spreading awareness about the oil contamination that occurs through improper disposal of oils. The irony here is that Dawn is a petroleum-based product- and that fighting oil spills with this product is only further driving the demand for oil (Shogren 2010). Furthermore, according to the Ultra Dawn Dishwashing Liquid and Antibacterial Hand Soap MSDS, the ingredient triclosan makes up 0.1% of the product ("Household Products Database - Health And Safety Information On Household Products" 2017). Triclosan is an organic compound that has been deemed by Environment Canada as toxic to aquatic wildlife. An Environment Canada assessment found that although triclosan breaks down under UV light and does not persist in the environment, this is not the case in water. Considering the fact that triclosan is commonly found in cleaning and cosmetic products, which eventually are washed down the drain, it is easy for the chemical to find its way into streams- the habitats of aquatic wildlife. Oftentimes, wastewater treatment plants cannot remove the discharge- and this poses health risks to the fish, algae, and invertebrates there. Breeding

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