Procter & Gamble has revealed that it closed a manufacturing plant in the developing world for four months after taking a stand on bribery.
The company, known for making household brand goods such as Clairol, Dreft, Head & Shoulders and Pampers, took the stance when a customs official blocked the entry of a $250,000 (£143,000) raw material shipment until a $5000 payment was made.
The regional director refused to pay and shut the plant until the company was able to get the country’s president to arrange for the shipment to be released.
The story is told by chief executive Alan Lafley in the company’s latest sustainability report. Lafley says the cost to Procter & Gamble’s business ‘far exceeded the cost of just paying the bribe’.
However, he adds: ‘The cost to Procter & Gamble’s reputation and values would have been far greater had we compromised the company’s integrity.’
P&G owns nearly 300 brands. It has operations in more than 70 countries and markets products in 160.