Proctor and Gamble is a renowned multinational investment company that deals with different products ranging from beauty, baby, home care, family, and health brands. The company is under the leadership of CEO and chairman of P&G’s board David Taylor since November 1 st , 2015. Taylor has been employing different communication skills to address the employees, investors, and stakeholders. This paper elucidates how the CEO uses social media to rally votes to rebuff the proposal of activist shareholder Nelson Peltz.
Through a video, The CEO urges employees, retirees, and alumni to reject advances from Trian Fund Management’s co-founder Peltz to vote him into the board of directors (Brunsman, 2017). He directly addresses the shareholders to vote “blue” which will ensure Peltz is not voted into the board. Taylor contends that Peltz vision to shake up the consumer merchandise conglomerate and increase the share values is incorrect, and does not serve the current and future interests of the shareholders. Also, he cites that the time is not right to restructure or embrace a new strategy (Brunsman, 2017). Rather, Taylor suggests that the company should focus its innovation plans towards improving the existing products and not introducing new brands that people do not know.
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The CEO use of social media to contend Peltz vision is very effective since he is able to reach the large portion of shareholders directly. This result to Peltz losing the vote that would secure the seat at P& G board to Mexico’s ex-president Ernesto Zedillo. Peltz secured 972,766,372 votes while Ernesto got 973,264,684 (Orol, 2017). Overall, Taylor’s decision to reach shareholders serves their interest and the company at the time since it cannot afford to experience a shakeup since the majority will lose their jobs.
References
Orol, R. (2017). Peltz Won't Get Everything He Wants With P&G Board Seat. Retrieved from https://www.thestreet.com/story/14422695/1/peltz-will-have-a-modest-impact-on-p-g.html
Brunsman, B. (2017). P&G CEO: This is a battle for our soul. Retrieved from https://www.bizjournals.com/cincinnati/news/2017/10/03/p-g-ceo-this-is-abattle-for-our-soul.html
