BIG Picture Trends in Cause Marketing (CM) and Corporate Social Responsibility (CSR)

Cause Marketing (CM) is one of the fastest growing business marketing strategies in North America. Cause marketing enables companies of all shapes and sizes to develop a mutually beneficial partnership with a cause on a campaign or ongoing basis. R1 Abacus Datas survey of 1,208 Canadians found that Canadians are interested in knowing how companies are contributing to their communities and how their purchases are making a difference. Divisions among people of different genders, income levels and age groups help break down the Canadian relationship to cause marketing. The key findings included: 79% of Canadians are willing to switch brands to support the companies they care about. 82% agree companies should donate to charities and nonprofits.

Company commitment to social and environmental issues is important to Canadians 82% say this is important to where they decide to buy or shop. 65% say this is important in deciding where to invest. R2

Since todays consumers are savvier and much more sophisticated and connected than ever before, they are looking more closely at impact and input of corporations in current issues. Companies must be a part of Corporate Social Responsibility (CSR) with authenticity and transparency or risk doing more harm than good to their reputation. The three major trends in Corporate Social Responsibility are as follows: Social Media Social media is transforming the CSR landscape. Consumers are taking social channels to learn more about issues, share positive and negative information and influence their personal networks. Companies are learning to recognize social media as a powerful tool with equal ability to advantage and hazard. Transparency Research shows that most consumers are not seeing significant corporate impact on pressing issues. Companies are starting to come to terms with the gap between corporate actions and consumer perceptions. Companies need to consistently and transparently communicate their CSR progress and return in channels their consumers are using. Personal relevancy Research reveals distinct consumer personalities with associated preferences and motivation for engaging in social and environmental issues. Corporations who understand their consumers motives will be able to communicate the right return and be prepare to deliver a great CSR impact. R3

Client Profile and Track Record

History
The Procter & Gamble Company (P&G), incorporated on May 5, 1905, is focused on providing consumer packaged goods. Procter & Gamble is the largest consumer goods company in the world and sells products under more than 50 brand names. The Procter and Gamble Company is today more familiarly known as P&G in most of the English-speaking world, and has grown from its humble roots as a Cincinnati soap maker to one of the 20 largest multinational corporations in the world (based on sales). P&G was founded in 1837 by William Procter and James Gamble, working-class immigrants from England and Ireland, respectively. William Procter was a candle-maker and businessman by trade, and James Gamble was a soap-maker who also became involved in the candle-making business. Messrs. Procter and Gamble met when they became brother-in-laws as they each married one of the daughters of successful Cincinnati businessman Alexander Norris. Mr Norris noted that both men were competing for the same raw materials (leftover fats from animal packing plants) and suggested that they form a partnership. Taking his advice, the men pooled their resources and the Procter and Gamble Company was formed with total assets of $7192.24. P&G developed a reputation for quality products and innovation in marketing in just a few short years, coming up with several new products, including the accidentally invented, but phenomenally successful, Ivory soap. The Companys products are sold in more than 180 countries and territories around the world primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, salons, e-commerce and high-frequency stores, the neighborhood stores which serve many consumers in developing markets. R4

Overview
As of June 30, 2013, the Company has five reportable segments: Beauty; Grooming; Health Care; Fabric Care and Home Care; and Baby Care and Family Care. Beauty In beauty care, the Company offers a variety of products, ranging from deodorants to cosmetics to skin care, such as its Olay brand, which is the facial skin care brand in the world. It also operates in fragrances market, through its Dolce & Gabbana, Gucci and Hugo Boss fragrance brands. Grooming The Companys grooming products include Shave Care (Blades and Razors, Pre- and Post-Shave Products); Braun and Appliances. Its brands include Braun, Fusion, Gillette and Mach3. The Company holds approximately 20% of the male shavers market and over 40% of the female epilators market. Health Care

In the healthcare market it operates in various categories, such Feminine Care (Feminine Care, Incontinence); Oral Care (Toothbrush, Toothpaste, Other Oral Care); Personal Health Care (Gastrointestinal, Rapid Diagnostics, Respiratory, Other Personal Health Care, Vitamins/Minerals/Supplements). Its brands include Always, Crest, Oral-B, and Vicks. Fabric Care and Home Care In this segment, the Company offers a variety of Fabric Care (Bleach and Laundry Additives, Fabric Enhancers, Laundry Detergents); Home Care (Air Care, Dish Care, Surface Care); Personal Power (Batteries); Pet Care; Professional. Its products include Ace, Ariel, Dawn, Downy, Duracell, Febreze, Gain, Iams, and Tide. In batteries, the Company has over 25% of the global battery market share. Baby Care and Family Care The Baby Care and Family Care products include baby Wipes, diapers and pants, paper towels, tissues and toilet paper. Its brands include Bounty, Charmin, and Pampers. R5

Brand Foundation
Procter and Gambles Purpose, Values and Principles are the foundation for P&Gs unique culture. Throughout their history of nearly 175 years, their business has grown and changed while these elements have endured. Their Purpose unifies them in a common cause and growth strategy of improving more consumers lives in small but meaningful ways each day. It inspires P&G people to make a positive contribution every day. Their Values reflect the behaviors that shape the tone of how P&G work with each other and with their partners. And Their Principles articulate P&Gs unique approach to conducting work every day. R6

Track Record
Procter and Gamble believes that by making their products environmentally friendly, they are ensuring a better quality of life for people and the planet. Having high levels of CSR is something that Procter and Gamble takes pride in and is part of their growth strategy. They are ranked 22nd on their CSR Index by The Center for Corporate Citizenship. They have both environmental sustainability and social responsibility. Procter and Gamble's corporate cause is Live, Learn and Thrive. This cause focuses on helping children in need around the world. Within Live, Learn and Thrive, is the program called Childrens Safe Drinking Water. Their programs allow children to become healthy and have access to education that will build skills for life. Since 2007, Procter and Gamble has helped over 315 million children. Other causes that Procter and Gamble takes an interest in include protecting mothers and babies from tetanus. Pampers works with UNICEF to combat this cause by delivering vaccines. Each pack of Pampers bought results in one dose of vaccine being donated. Procter and Gamble supports Feeding America to fight against child hunger. They provide food and other groceries to

families that have no means of providing these basic essentials. Protecting Futures works toward keeping young girls in school and providing them with the appropriate information they will need for the future. They have reached over 450,000 girls with this effort. P&G Hope Schools provides children with better access to education in areas of China were people are very poor. They also partnered with United Way to provide better education in Latin America. They primarily focus on younger children under the age of 6. "Born Learning" focuses on child development by improving child care centers. Procter and Gamble goes to the extreme when it comes to acting responsibly. By continuing to fund and support these causes they can only improve the way that they are viewed as a whole. In the future they could continue partnering with various causes when new products are created. They could also invest in other causes that they haven't created so that they can focus more resources towards other ventures. Overall Procter and Gamble does a lot to build their high CSR but there is always more that can be done. By going above and beyond expectation they can gain new consumers who are impressed by their efforts as well as ensuring their stakeholders that they are a good socially and environmentally responsible company. R6/R7