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This is an environmental disaster because many organisms like fish depend on it for survival.
P&G has to handle these environmental problems quickly. Some of the measures mentioned above like the implementation of waste control measures can go a long way in making the rivers and oceans safer for humans as well as the other organisms that depend on it for survival. They are the market leaders and when they implement certain standards, the rest of the industry has to follow suit. P&G has to use its position to make the environment cleaner and safer for the people of China. It is their moral duty and responsibility to give something back to the country that has helped them to make billions of dollars in profits.
Another aspect that should be given importance is the usage of labor including child labor. The demand for wages also has gone up in China and it can no longer depend on its low-wage policy. The average income earned by the employees in P&G China today is $2,000 with little chance for a raise. However, the awareness to this problem of low wages in slowly surfacing, thanks to the media propaganda and the increased use of Internet. Blogs have become very common in China and more and more people are resorting to express their opinions through these blogs. In the near future, there is going to be a demand for more wages and the way P&G handles this problem will pave the road for its continued dominance of the Chinese markets. Also, P&G has to be more conscious and careful about its PR policies. The debacle of SK-II caused an uproar among the Chinese public and such situations should be avoided in future.
There are many solutions that can be undertaken by P&G. Though a handful of it is already implemented like the Safe Drinking Water program, there is a lot more that the company can do. To start with, it can work in conjunction with the Chinese Government to create and enforce regulations towards usage of certain chemicals and disposal of waste. This will make it easier for other multinational companies to follow. They should set an example for the others to follow because they are the market leaders.
They should also work towards providing a better work environment for its employees. The company as a whole should be a safe place for the employees and they should be paid a fair amount of money in return for their labor. Though the wages need not be on par with the United States, nevertheless a fair sum according to Chinese standards should be offered. They can even offer medical insurance as part of the terms of employment for their employees.
Besides environment and employee working conditions, P&G should do everything in its power to lessen any negative impact that has affected the Chinese economy and environment due to its operations. This can be a perfect example for companies from the U.S. And other developed countries that are looking to establish their operations in developing countries like India and China. It will show them how to operate in a mutually beneficial manner for the company, people, environment and the Government of that country.
These measures are important to improve the trust of the company in the eyes of the public. One good deed always leads to another and this is what P&G should keep in mind. When they work towards the development of the environment and the society in China, there is no doubt they will be rewarded with better trust and leverage in the Chinese business. Also, more and more people will tend to buy products from such an environment conscious company and this will definitely lead to better business and larger profits for the company. In fact, it can be used as an opportunity for the company to gain an edge over its competitors in China. All these will undoubtedly augur well for the company in the long-run and this should be kept in mind by the company's executives.
Rein, Shaun. "Procter & Gamble's China Problem: The Return of SK II." Seeking Alpha. 9, November 2006. Web. 20 October, 2010.
No author. "Procter & Gamble Company." Zumer. No date.Web. 20 October, 2010.
Frazier, Mya, "How P&G brought the diaper revolution to China." BNET. 7 January, 2010. Web. 20 October 2010.
Chief Executive. "Cracking China: in a new book, Procter & Gamble tells how it brought consumerism to an untapped market." BNET. June, 2004. Web. 20 October 2010.
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