CSR Executive Summary
MBA 630 : Accounting & Info Management
Sustainability Project
September 30, 2014
Corporate Social Responsibility (CSR) is a highly discussed and sometimes debated subject for companies as well as their shareholders and customers. As we conducted research for purposes of this project, it was easy to conclude that there are a multitude of definitions and interpretations for exactly what CSR means. Also, there are many inconsistencies as they relate to various metrics and indices used to determine both the impact on society and the financial impact on the company. Since companies do not have standardized CSR reporting requirements, it can sometimes be difficult to accurately compare any two. In a very broad sense, CSR relates to how companies manage their business processes to produce an overall positive impact on society. Is it tied to a company’s profitability and long-term standing or does it take away from the company’s bottom line by serving as no more than glorified PR? We will attempt to answer these questions and more as we compare two global giants: Procter and Gamble and Johnson & Johnson. Procter and Gamble has a vast portfolio of home products with names that include Tide, Downy, Duracell, and Pampers, just to name a few. Their products are sold in more than 180 countries and the company is considered a leader in its CSR program. Procter and Gamble established a long range set of CSR goals in 2010 that it plans to meet or exceed by 2020, many of which have already achieved great strides. The following data was obtained from Procter and Gamble’s 2013 Sustainability Report.
Energy Consumption - dropped 8% since 2010
Waste Reduction - 56% reduction per unit of production since 2010
Green-House Gases - 4.8% reduction per unit since 2010
Water - 14% reduction per unit since 2010 Johnson & Johnson is considered a direct competitor of Procter and Gamble. The company performs an extensive amount of research and development,
Sustainability Project
September 30, 2014
Corporate Social Responsibility (CSR) is a highly discussed and sometimes debated subject for companies as well as their shareholders and customers. As we conducted research for purposes of this project, it was easy to conclude that there are a multitude of definitions and interpretations for exactly what CSR means. Also, there are many inconsistencies as they relate to various metrics and indices used to determine both the impact on society and the financial impact on the company. Since companies do not have standardized CSR reporting requirements, it can sometimes be difficult to accurately compare any two. In a very broad sense, CSR relates to how companies manage their business processes to produce an overall positive impact on society. Is it tied to a company’s profitability and long-term standing or does it take away from the company’s bottom line by serving as no more than glorified PR? We will attempt to answer these questions and more as we compare two global giants: Procter and Gamble and Johnson & Johnson. Procter and Gamble has a vast portfolio of home products with names that include Tide, Downy, Duracell, and Pampers, just to name a few. Their products are sold in more than 180 countries and the company is considered a leader in its CSR program. Procter and Gamble established a long range set of CSR goals in 2010 that it plans to meet or exceed by 2020, many of which have already achieved great strides. The following data was obtained from Procter and Gamble’s 2013 Sustainability Report.
Energy Consumption - dropped 8% since 2010
Waste Reduction - 56% reduction per unit of production since 2010
Green-House Gases - 4.8% reduction per unit since 2010
Water - 14% reduction per unit since 2010 Johnson & Johnson is considered a direct competitor of Procter and Gamble. The company performs an extensive amount of research and development,
References: Johnson & Johnson. 2013. Citizenship & Sustainability Report. Retrieved from www.jnj.com/sites/default/files/pdf/cs/2013-JNJ-Citizenship-Sustainability-Report-FINAL061914.pdf Procter and Gamble. 2013. Sustainability Report. Retrieved from www.pg.com/en_US/downloads/sustainability/reports/PG_2013_Sustainability_Report.pdf