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P&G’s political involvement is an important means of building and protecting our business.
Guided by our Purpose, Values & Principles, P&G participates in the political process to help shape public policy and legislation that has a direct impact on the Company. This engagement ensures that the interests of our employees, consumers and shareholders are fairly represented at all levels of government around the world. We are committed to being transparent about our political involvement globally.
P&G’s public policy and legislative priorities are reviewed regularly with senior business leaders and annually with the Governance and Public Responsibility Committee of the Board of Directors.
Lobbying Activity
P&G’s Global Government Relations team (P&G GGR) represents the Company’s point of view in Washington, DC, in U.S. state capitols and in key country capitols around the world. Working with the businesses, P&G GGR focuses on legislative and public policy issues that impact the Company’s bottom line and long-term business interests. Where permitted by law, P&G GGR engages and educates policy makers and key stakeholders on issues that impact our business; facilitates the exchange of information between key decision-makers and public policy organizations in the U.S. and abroad; and leads Company actions on policy matters both unilaterally and in industry coalitions and associations.
P&G complies with all U.S. federal and state laws, including the Lobbying Disclosure Act and Honest Leadership and Open Government Act that require reporting on lobbying activities and certification of compliance with Congressional gift rules. P&G reported U.S. lobbying expenditures of $3.66 million in the lobbying disclosure reports filed with the Clerk of the U.S. House of Representatives and the Secretary of the U.S. Senate for the 2008 calendar year. In 2008, P&G reported lobbying activity in the range of €200,000 to 250,000 in the European Union under new voluntary guidelines issued by the EU Commission.
In 2008, P&G spent roughly $9.2 million in dues to U.S. associations with annual dues of $25,000 or more, of which $1.8 million, roughly 19.5 percent, was identified by 40 associations as funds spent on lobbying and political activities.
Download a listing of P&G’s U.S. associations and percentage of dues attributable to political activities.
U.S. Corporate Political Activity
P&G engages in the political process by providing financial support to state ballot initiatives and issue advocacy campaigns that have a direct impact on the business. P&G’s involvement in these campaigns is overseen by a multi-functional team comprised of representatives from Global Government Relations, Legal, Human Resources, Corporate Communications and other functions related to the specific issue under consideration. The team makes recommendations to the Global External Relations Officer for approval, or for further review and approval by the President and CEO and Chairman as appropriate. As with all other aspects of our political involvement, our participation in such efforts is guided by our Purpose, Values and Principles and by our business strategies, and is fully reported in accordance with governing laws. In 2008, P&G gave $280,000 in contributions to state ballot initiatives and other issue advocacy campaigns that had a direct impact on the business.
Download a listing of these initiatives.
P&G Political Action Committee (P&G PAC)
The P&G PAC is a voluntary, nonpartisan political action committee. Registered as the P&G Good Government Committee with the U.S. Federal Election Commission (FEC) and appropriate state offices, the PAC allows P&G employees to pool personal, voluntary financial contributions to support candidates at the federal, state and local level, who support issues important to the business and the quality of life in the communities in which we live and work.
P&G PAC operations are transparent and compliant with all applicable laws. It is governed by a set of bylaws and supervised by a diverse board of Company senior managers, U.S. Government Relations personnel, and Legal counsel.
Support of candidates is based on their support of P&G issues and sustained constituent relationships. The PAC generally does not contribute to Presidential candidates, national political parties, trade and industry association or leadership PACs, or multiple candidates running in the same race. In 2008, the P&G PAC contributed $270,280 to 184 candidates running for office. The average contribution was $1,469.
Additionally, P&G operated a separate state PAC in Massachusetts, and a federal PAC related to the acquisition of Gillette. In 2008, the P&G/Gillette state PAC contributed $1,250 to 3 Massachusetts state and local candidates, and the Gillette Federal PAC did not make any contributions to candidates. Both PACs were closed in the beginning of 2009.
P&G PAC activity is available on the FEC and state elections websites. Download a listing of all 2008 PAC contributions.
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P&G Global Operations
