The Protector and Gamble Company Poor Corporate Governance and their Solutions

The Protector and Gamble Company Poor Corporate Governance and their Solutions

Although P&G has implemented several favorable good governances, specific board acts raise concerns about the efficiency of the firm's governance and framework in safeguarding shareholder interests. It lacks corporate governance, such that the board is more interested in management and not in strategic planning, vision, and mission which fails to keep the important objectives of the company running, demonstrating a sequence of troubling decision making. Secondly, fail in operations and maintenance mistakes over the last two decades, like the series of unsuccessful efforts to standardize governance, erroneous acquisitions of brands purchased and afterward sold, and omitted trends. In aspects of omitted trends, the company's lack of massive investment in the direct-to-consumer (DTC) business model seems to have had a negative impact, primarily in grooming; it is the most profitable sector. Thirdly, the documentation provided to the board of directors is insufficient. Information needed by the board, the type of material required by the board, and the demonstration should be discussed at least once a year. Four, whilst the board shows a lack of excellent CPG expertise, it possesses a wealth of C-suite expertise. Policies as well as procedures either, do not exist, not reviewed, or lack approval in a timely manner. They provide structure to the company and give a guide on how to operate on a daily basis. As a result, they are important and noticeable deficiencies in this sector expose the company to risk. 

The solutions include Appointing Competent Members of the board who comprehend what skills they have and need. Similarly, evaluation of the board aspiring candidates’ interpersonal skills, as board interrelations and communication will be crucial to the overall corporate governance with proper strategic planning, operation, maintenance, and the urge to achieve company objectives. Boards should be sure that the company has a modern set of administrative, budgetary, and personnel management policies and procedures assessed and evaluated on a regular basis. Boards of directors provided with accurate information to make sound decisions and make appropriate judgments. The board must always approve policy changes. Risk management needs prioritization. Every board should put in place an efficient risk supervision and control plan. Efficient risk management results in improved decision-making and more exact cost-benefit or threat calculations.