Our political involvement is an important way to bring our purpose to life through public policy.
Guided by our Purpose, Values and Principles, P&G participates in the political process to help shape public policy and legislation that helps us fulfill our corporate purpose: delivering products to improve the lives of the world’s consumers. 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.
P&G’s Global Government Relations & Public Policy (P&G GGRPP) team represents the Company’s point of view in Washington, D.C., in U.S. state capitals and in key country capitals around the world. Working with the businesses, P&G GGRPP 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 GGRPP 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 United States 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. For the 2013 calendar year, P&G reported U.S. lobbying expenditures of $3.96 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 and a total of $331,335 in lobbying expenditures in U.S. states. In fiscal year 2012-2013, P&G reported lobbying activity in the range of €400,000 to €450,000 at the European Union level under voluntary guidelines issued by the EU Commission and the European Parliament.
In calendar year 2013, P&G paid roughly $8.27 million in dues to U.S. trade and industry associations with annual dues of $25,000 or more, of which $1.2 million, roughly 14 percent, was identified by 42 associations as funds spent on lobbying and political activities.
P&G engages in the political process by providing financial support to selected state ballot initiatives and issue advocacy campaigns that have a direct impact on our ability to touch and improve consumers’ lives. P&G’s involvement in these campaigns is overseen by P&G’s Public Policy Team, a multi-functional team composed of representatives from Global Government Relations and Public Policy, Legal, Human Resources, Corporate Communications and other functions related to the specific issue under consideration. The team makes recommendations to the Chief Legal Officer for approval, and for further review and approval by the Chairman and CEO 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.
P&G’s policy is to not use corporate funds to support super PACs, 527 organizations or candidates in states where it is legally permissible to do so. Further, P&G has no plans to use corporate funds to support other independent political expenditures to influence federal elections, nor do we plan to make contributions to trade associations for that purpose. Beginning in 2012, we notify our key associations on an annual basis that our annual dues cannot be used for electioneering or independent political expenditures.
In 2013, P&G made $5,000 in contributions to ballot initiatives and other issue advocacy campaigns that had a direct impact on the business or our employees.
The P&G GGF is P&G’s political action committee. As with all other aspects of P&G’s business, the P&G GGF is guided by our Purpose, Values, and Principles. The P&G GGF enables 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 P&G employees live and work.
The P&G GGF supports candidates at all levels of government. Support of candidates is guided by our Purpose, Values and Principles and generally based on any or all of the following criteria: support of P&G business issues (key votes can be found here); sustained constituent relationships with P&G facilities or employees; and positions in leadership or on Committees of particular importance to the Company.
Consistent with our Company’s Values and Principles, the P&G GGF shows respect for all individuals, including our employees, consumers, business partners and shareholders. We also value differences of opinion. Therefore, we realize that there will be diverse, divergent and often strongly held views on candidates the P&G GGF should support, and what issues should determine that support. Further, we realize that individual candidates and elected officials may be supportive on some issues and opposed on others. That is why we use a data-driven approach that looks holistically at the implications a donation may have on the business. While this can be hard to quantify, we rely on a diverse group of Company managers, government relations personnel and legal counsel, which make up the P&G GGF Board, to evaluate candidates and make recommendations that will best support our Purpose of touching and improving consumers’ lives.
All P&G GGF activity is available on the Federal Elections Commission and state elections web sites, and a full listing of 2013 P&G GGF contributions can be found here.
P&G does not make political contributions outside the United States.
An archive of past trade association and corporate political spending can be found here: