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Cablegate: Czech Republic: Embassy Nominates Procter & Gamble

VZCZCXYZ0000
PP RUEHWEB

DE RUEHPG #0705 1660818
ZNR UUUUU ZZH
P 150818Z JUN 07
FM AMEMBASSY PRAGUE
TO RUEHC/SECSTATE WASHDC PRIORITY 9229
INFO RUEHXQ/ALL EUROPEAN UNION POST COLLECTIVE PRIORITY

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

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