CZECH REPUBLIC: EMBASSY NOMINATES PROCTER & GAMBLE

UNCLAS PRAGUE 000705 SIPDIS SIPDIS STATE FOR EEB/EPPD NANCY SMITH-NISSLEY E.O. 12958: N/A TAGS: ECON BEXP EINV ETRD ELAB KSEP SENV EZ SUBJECT: CZECH REPUBLIC: EMBASSY NOMINATES PROCTER & GAMBLE FOR SECRETARY'S AWARD FOR CORPORATE EXCELLENCE REF: STATE 47222 ¶1. (U) U.S. Embassy Prague is pleased to nominate Procter and Gamble - Rakona s.r.o (P&G) for the 2007 Secretary's Award for Corporate Excellence (ACE). P&G - Rakona is a multinational enterprise that produces chemicals, mainly washing powder, in the small town of Rakovnik. Over the past fifteen years, the company has expanded its initial $21 million investment into a $181 million, 750-employee organization. P&G demonstrates significant accomplishments in all eight of the ACE selection criteria and is well-deserving of the Secretary,s recognition. ¶2. (U) Comment: As one of the largest employers in a small Czech town, P&G has embodied the best of American corporate citizenship. The company has demonstrated its long-term commitment to the local community, the environment and corporate philanthropy and is highly deserving of the Secretary's recognition in 2007. End comment. SIPDIS GOOD CORPORATE CITIZENSHIP -------------- -------------- -------------- ¶3. (U) P&G is an integrated part of the town of Rakovnik. Since 1991, the company has donated over 62 million Czech koruna ($3 million) to help educational, cultural and environmental charities in the local area. This financial assistance included donating information technology equipment for basic and secondary schools, an ambulance and medical beds for the Rakovnik hospital, a car for two local orphanages, and monetary donations to numerous children's organizations. The Mayor of Rakovnik publicly recognized this extraordinary achievement in 2007, noting "It is great to have such a company in the town. I appreciate the support given by P&G to the local community." DEVELOPMENT OF LOCAL ECONOMY -------------- -- -------------- -------------- ¶4. (U) When an inadequate roadway system within the town impacted economic growth in Rakovnik, P&G stepped in with financial assistance for construction of a ring road around the town. Following up on this successful cooperation, P&G consulted with the regional government on future possible infrastructure projects. ¶5. (U) P&G also has a positive influence on Rakovnik,s education system. Each year, the plant hosts 10-15 students for a monthly practical internship program. On top of this ongoing program, the company worked with 10 seniors from the class of 2007 on technical projects around the plant. The students submitted these projects as their final practical exams required for graduation. ENVIRONMENTAL STEWARDSHIP -------------- -------------- ¶6. (U) P&G takes its corporate responsibility to the environment seriously. Company policy requires that a full environmental impact study be completed before any technical project is approved. An independent emission measurement system proves that the company does not just meet legally-required limits, but emits significantly lower levels in all parameters. ¶7. (U) P&G is also concerned about its customers. The Rakovnik plant was the first in Central Europe to produce compact washing powder, 70% of which is phosphate-free. This translates into a major decrease in the raw materials and powder used in a single washing, and a more environmentally-friendly product for families. GRABER