This case study is based primarily on interviews of Procter & Gamble (P&G) Mehoopany staff members that took place in October 1997.
P&G company brochures and written information were also used when applicable. Please note that case studies are snapshots of a particular organization at a particular time and that Mehoopany’s program has continued to evolve since the interviews. Subsequent communications with P&G Mehoopany have indicated that, while some of the details may have changed, the message is largely the same.
This appendix describes P&G Mehoopany’s environmental program, emphasizing its successful implementation. Brief overviews of the facility, its general organizational structures, and some of the envi- ronmental accomplishments are followed by discussion of the pol- icy, goals, visions, and structural elements of the environmental management system (EMS). Next, the appendix describes the facili- ty’s processes for environmental assessment and priority-setting, its effectiveness at stakeholder relationships, and how it trains and motivates its employees. A brief conclusion follows.
CASE STUDY OVERVIEW
The largest P&G plant in the world, with about 2,700 employees drawn from six counties, is set in a rural valley along the Susquehanna River in Mehoopany, Pennsylvania. P&G Mehoopany has two basic product lines: tissues and towels, and diapers. The facility houses a diverse set of functional activities, including pulp
production at a sulfite pulp mill,1 water purification, drinking water treatment, and wastewater treatment. Given its diverse activities, which have a high potential environmental impact, and high visibil- ity in the community, the facility is highly complex compared to other P&G facilities.
P&G Mehoopany has a strong, well-run, and efficient environmental program that has implemented innovative facilitywide approaches.
The plant has achieved substantial reductions in air, water, and waste emissions. It has also addressed natural resource issues, such as working with wood suppliers in sustainable forestry. The facility has won numerous environmental awards and been recognized as a best-in-class P2 facility. The environmental program is built on a strong corporate EMS philosophy and ethic with a total-quality envi- ronmental management (TQEM) approach. Management is effective at integrating environmental issues into the business units, including allocating environmental costs back to them and emphasizing P2 initiatives. The managers base their environmental decisions on strategic thinking about the long-term impacts and the economics.
They have been effective at reducing the plant’s environmental impact and finding cost savings from environmental initiatives, especially in the solid waste area. The plant’s very good relationships with the regulators and community feed back into increasing inter- nal management support for additional proactive, innovative envi- ronmental approaches. The managers effectively train and motivate the employees to support the environmental program.
THE COMPANY
P&G produces and sells a wide range of paper, laundry, cleaning, beauty care, health care, and food and beverage products to more than five billion consumers in more than 140 countries. The com- pany markets approximately 300 consumer product brands, includ- ing Tide, Pampers, Ariel, Crest, Always, Whisper, Vicks, Pantene Pro- V, Oil of Olay, and Pringles. P&G employs 110,000 people worldwide, with headquarters in Cincinnati, Ohio, and operations in 58 coun- tries. For the fiscal year ending June 30, 1998, P&G’s worldwide net
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1One of the changes since the original interview is that P&G Mehoopany no longer produces its own pulp. Environmental practices and programs have remained in place during the transition to a nonpulp facility.
sales were over $37 billion and net earnings were $3.78 billion (P&G, 1998). P&G’s primary motivation is to serve its customers.
Paper products are one of P&G’s main product lines. P&G’s paper products plants are located throughout North America, including facilities at Mehoopany, Pennsylvania; Albany, Georgia; Green Bay, Wisconsin; Modesto, California; Cape Girardeau, Missouri;
Greenville, North Carolina; Belleville, Ontario (outside Toronto);
Auburn, Maine; and Oxnard, California.
P&G’s company culture and philosophy are very much focused on leadership, integrity, customers, and company reputation. The core values focus on high-quality employees, leadership, ownership,2 integrity, being the best, and trust. Similarly, company principles include respect for all individuals, keeping company and individual interests inseparable, focusing strategically, innovation as a corner- stone of success, and being externally focused; Tables A.1 and A.2 present the full list of core values and principles. These corporate values are reflected throughout the organization and its environmen- tal program.
In environment activities, P&G also strives to be a leader; to empha- size innovation; to focus on customer, community, and regulator relations; to value the company image and reputation; to be strate- gic, proactive, and forward thinking; and to promote integrity. To help facilitate these activities, the corporate organizational structure includes a fair amount of decentralized environmental authority that allows individual facilities to innovate and customize their environ- mental activities for local needs.
THE FACILITY
In 1997, the P&G plant in Mehoopany, Pennsylvania, covered about 1,200 acres and had about 85 acres of roof space. The plant opened as a Charmin Paper Products Company facility in 1966. The workers living in the region at the time were employed in declining indus- tries, especially coal mining. Charmin moved into this location to
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2Ownership is a term of art at Mehoopany and conveys a sense of accountability and responsibility.
Table A.1 P&G’s Core Values
P&G is its people and the core values by which they live.
P&G PEOPLE. We attract and recruit the finest people in the world. We build our organization from within, promoting and rewarding people without regard to any difference unrelated to performance. We act on the conviction that the men and women of Procter & Gamble will always be our most important asset.
LEADERSHIP. We are all leaders in our area of responsibility, with a deep commit- ment to deliver leadership results. We have a clear vision of where we are going.
We focus our resources to achieve leadership objectives and strategies. We develop a capability to deliver our strategies and eliminate organizational barriers.
OWNERSHIP. We accept personal accountability to meet the business needs, improve our systems and help others improve their effectiveness. We all act like owners, treating the Company’s assets as our own and behaving with the Compa- ny’s long-term success in mind.
INTEGRITY. We always try to do the right thing. We are honest and straightforward with each other. We operate within the letter and spirit of the law. We uphold the values and principles of P&G in every action and decision. We are data-based and intellectually honest in advocating proposals, including recognizing risks.
PASSION FOR WINNING. We are determined to be the best at doing what matters most. We have a healthy dissatisfaction with the status quo. We have a com- pelling desire to improve and to win in the marketplace.
TRUST. We respect our P&G colleagues, customers, and consumers and treat them as we want to be treated. We have confidence in each other’s capabilities and intentions. We believe that people work best when there is a foundation of trust.
SOURCE: P&G (undated a).
take advantage of this labor; the surrounding forestry assets, espe- cially the mature forests; and the water in the Susquehanna River. In 1976 Charmin Paper Products Company’s name was changed to The Procter & Gamble Paper Products Company.3
The P&G Mehoopany site has two plants, producing two basic prod- uct lines: the tissue/towel plant and the diaper plant. For manage- ment purposes, these two plants are run in a thoroughly integrated
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3This report simply refers to the facility as P&G Mehoopany.