Introduction
Colgate-Palmolive Company is regarded as one of the most ethical organizations in the business world. The company operates globally in more than 200 countries and generates “over 70% of sales from outside North America” (Thain & Bradley, 2014, p. 42). The company stresses that it is socially and environmentally responsible in all countries where it operates. It sets high ethical standards and keeps to its motto, “living our values” (Code of conduct, n.d.). The company’s code of conduct includes such values as sustainability, responsibility and improvement. It is necessary to note that Colgate-Palmolive Company makes considerable profit but it also contributes to development of the community when it comes to its impact on consumers, environment and employees.
Responsibility
Consumers
The company claims that one of their priorities is to provide high-quality products to consumers and, more importantly, to keep them informed. Pride, Hughes and Kapoor (2013) argue that consumers have the right to be fully informed. Admittedly, people try to buy products that meet their needs and requirements. Buying such consumer products as toothpaste or shampoo and many other things, people want to be sure that the products will not do any harm to their (or their close ones’) health. Caring about people is one of values declared by Colgate-Palmolive Company (Code of conduct, n.d.). Therefore, the company invests into research and development of new products. It is necessary to note that the company also tries to provide cheaper versions of its products in developing countries (Thain & Bradley, 2014). Clearly, consumers appreciate the quality at a reasonable price. This is one of the way the company’s responsibility is manifested.
Apart from informing consumers and providing them with high-quality products, the company invests into development of the community. For instance, the company has been engaged into its international HIV/AIDS initiative since 2003. Within the initiative, Colgate-Palmolive provides “education, awareness, and non-discrimination programs in Africa, Asia, and Latin America” (Markle, 2011, p. 289).
Clearly, the company addresses some of the most urgent issues in the society and assists in important spheres. This help contribute to development of the community and enables the company to create a positive image. The company also collaborates with professionals (Thain & Bradley, 2014). Colgate-Palmolive holds a variety of seminars and conferences where professionals are able to share their experiences. Of course, the incentive is aimed at promoting new products but it also contributes to development of professionals in many spheres.
Environment
It is necessary to add that the company is environmentally responsible. First, it tries to reduce the use of water and energy in its production. It is reported that Colgate-Palmolive decreased water consumption by 40% and the use of water by 44%, energy consumption was also lowered by 20% (Lammers, 2012). Besides, the company decreased its gas emissions by 21%. Obviously, the company is trying to reduce its negative impact on the environment. Colgate-Palmolive invests into further development of environmentally sustainable policies.
More so, the company encourages other companies to report on their impact on environment and try to reduce negative effects of this impact. Lammers (2012) note that Colgate-Palmolive has already encouraged sixty suppliers to start working on reduction of water and energy consumption as well as gas emissions. Therefore, the company is trying to make sure that its environmentally responsible policies will be shared by its partners and may soon become a norm in the business world.
Employees
As has been mentioned above, Colgate-Palmolive is a global company. Diversity is one of its core values. Diversity is manifested at different levels. The company has diverse range of products as well as diverse workforce. It may often be difficult to be socially responsible in terms of such diversity. Nonetheless, the company manages to achieve high goals in this sphere as well. For instance, the company provides equal opportunities for promotion and self-development for all employees irrespective of race, gender, religion and so on (Code of conduct, n.d.). It is stressed that the company is respectful to all employees. This contributes to creation of the appropriate atmosphere in the working place.
Besides, the company launches various incentives to train, educate and support people living in the communities. This is aimed at providing local people with an opportunity to obtain a well-paid job at one of the company’s facilities (Delmas & Blass, 2010). Clearly, employees get training which enables them to earn more and improve their financial conditions. This is especially valuable in developing countries. It is noteworthy that almost 50% of the company’s workforce is employed outside the United States.
Effects
It is necessary to note that people are not satisfied with high quality of products and reasonable prices as they need something more important than that. People are eager to buy from companies that contribute to development of the society and have minimum negative impact on environment as well as community. Therefore, organizations are trying to create a favorable image to attract more customers. The image has to involve such spheres as social and environmental responsibility. People pay attention to policies aimed at addressing environmental issues, needs of customers as well as employees.
It is possible identify particular effects each of Colgate-Palmolive’s policies may have on its bottom line. Thus, its policies aimed at diminishing negative impact on environment creates an image of a company that makes money but is responsible and tries to preserve natural resources for future generations. Clearly, this involves certain investment as research requires additional funds. At the same time, such policies will attract more customers which will result in increased revenues.
As far as sustainable policies aimed at addressing customers’ needs, they can also lead to the rise of the company’s revenue. As has been mentioned, above the company pays specific attention to providing extensive information on its products. Customers are eager to buy products they understand and know a lot about. Of course, people will buy from the company that shares important information concerning products.
Colgate-Palmolive’s investment into social initiative also contributes to creation of the favorable image of the company. People want to support (and buy from) a company which invest into development of communities (in other words, in their development). More so, enabling people to get certain training and get a better job can also lead to attracting more customers as the people often improve their financial state and are able to buy more products or more expensive products from the company.
Finally, bottom line of the company will also be positively affected by policies contributing to development of employees. Thus, company provide certain benefits for its employees and claims that every employee has an opportunity to develop. One of the most important benefits of working in the company is training as employees get skills and knowledge as well as ability to get better jobs.
Of course, such policies may require additional funds but they have a very important positive outcome. Hence, employees will become more loyal and investment into the staff results in a greater revenue as employees are committed to provide high-quality services to customers who are satisfied and ready to buy from the company. More so, incentives aimed at educating people living in the areas where the company operates may also help seek for talented and loyal employees. It has been acknowledged that the staff is the greatest asset of any company.
Improvement
As seen from the analysis provided above, the company invests considerable effort and funds to create a favorable image and really does a lot to be a truly responsible organization in many respects. Nonetheless, there are still spheres which could be improved. Thus, Delmas and Blass (2010) note that companies which have high ratings on their environmental responsibility are often measured inappropriately and their positive sides are overestimated as companies producing different products are compared. Hawthorne (2012) stresses that even though Colgate-Palmolive uses less amount of chemicals but the company still uses materials others do not use. These materials and chemicals negatively affect the environment and can even harm consumers.
Clearly, the company has to pay more attention to this sphere to keep its image as one of the most responsible companies. In the first place, the company has to invest more in the research. It is important to diminish the use of harmful materials. Researchers have to come up with ideas to change these materials and use only appropriate resources. The growth of the company suggests that the research is possible and the company has the necessary funds (Thain & Bradley, 2014). Colgate-Palmolive also has to reconsider its assessment criteria when it comes to safety and environmental responsibility. Clearly, the company admits certain amount of chemicals used but the acceptable use of harmful elements has to be reduced.
Besides, the company has to pay special attention to its reporting. It is unacceptable to focus on positive image and silence some data which can negatively affect the company’s image. As has been mentioned above, one of Colgate-Palmolive’s values is keeping the customer informed. Therefore, the company has to provide as much information on its operations as possible. Highlighting incentives is important but it is also essential to keep customers informed on what is done in the sphere of environmental protection and what is going to be done. The company also has to provide information on why it is important to start this or that research or incentive.
Conclusion
In conclusion, it is possible to note that Colgate-Palmolive is one of socially and environmentally responsible companies. It contributes to development of communities and tries to diminish the negative impact on the environment. The company does a lot to become environmentally and socially responsible. Doing so, it creates a favorable image aimed at attracting more customers. It is necessary to note that the current trends existing in the society involves attention to companies’ operations and their impact on environment and society. People want to buy from companies that are responsible. People want to feel the company makes a difference, which is one of the factors affecting people’s choice. Companies investing into development of the society will make more profit as they will attract more customers.
Reference List
Code of conduct: Living our values. (n.d.). Web.
Delmas, M., & Blass, V.D. (2010). Measuring corporate environmental performance: The trade-offs of sustainability ratings. Business Strategy and the Environment, 19(1), 245-260. Web.
Hawthorne, F. (2012). Ethical chic: The inside story of the companies we think we love. Boston, MA: Beacon Press. Web.
Lammers, L. (2012). Colgate-Palmolive pledges to reduce water consumption 40%. Web.
Markle, G.L. (2011). Constructions of citizenship among multinational corporations. International Journal of Business and Social Science, 2(24), 283-291. Web.
Pride, W., Hughes, R., & Kapoor, J. (2013). Business. Mason, OH: Cengage Learning. Web.
Thain, G., & Bradley, J. (2014). FMCG: The power of fast-moving consumer goods. Sarasota, FL: First Edition Design Pub. Web.