Our Political Involvement
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 2021 calendar year, P&G reported U.S. lobbying expenditures of $3.0 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 $1.03 million in lobbying expenditures in U.S. states. In fiscal year 2020-2021, P&G reported lobbying activity in the range of 600,000 - 699,999 € at the European Union level under voluntary guidelines issued by the EU Commission and the European Parliament.
P&G’s membership in trade associations enables our business to combine our efforts and collaborate with other similarly affected companies on a broad variety of issues important to the Company, e.g., tax and trade policies, to name a few. We routinely evaluate our membership in associations to ensure that we are obtaining commensurate business value that further enables us to build the business and increase shareholder value. However, as with many associations, there will be diverse points of view, and we will not agree with positions taken by each association on every issue.
The trade associations of which we are members are aware of our policy positions. In all cases, any P&G position on a matter of public policy is the prevailing company position, irrespective of any trade association position. We are consistent in the positions we share with external stakeholders as well as in our trade association engagement. We view this as a matter of integrity, and we act in accordance with our Company’s Purpose, Values and Principles (PVPs).
U.S. corporate political activity
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.
Since 2012, we have notified our key associations on an annual basis that our annual dues cannot be used for electioneering or independent political expenditures.
In 2021, P&G made $50,000.00 contributions to ballot initiatives and other issue advocacy campaigns that had a direct impact on the business or our employees.
The P&G Good Government Fund (P&G GGF)
The P&G GGF is P&G's Political Action Committee. It enables P&G employees to pool personal, voluntary financial contributions to support candidates at the federal, state, and local levels who support issues important to business operations and the quality of life in the communities in which P&G employees live and work. Federal law prohibits corporations from making political donations. Only the P&G GGF can participate directly in the Federal political process supporting candidates who reflect P&G’s interest.
The P&G GGF supports candidates at all levels of government with a goal of even support between Democrats and Republicans. Support of candidates is governed by any or all of the following criteria:
- Support of P&G business issues
- Sustained constituent relationships with P&G facilities or employees
- Positions in leadership or on Committees of particular importance to the Company
Determination of support for candidates is based on an approach that looks holistically at the implications a donation may have on the business. We acknowledge that individual candidates and elected officials may be supportive on some issues and opposed on others and that no candidate or elected official will align with P&G on every issue; therefore, we rely on P&G's experienced government relations personnel, who regularly consult with a diverse group of senior business leaders and legal counsel, to evaluate candidates and make recommendations that will best support our Purpose of touching and improving consumers’ lives. Moreover, each contribution to a candidate is individually evaluated and previous decisions on contributions do not guarantee future support.
Consistent with our Company's Values and Principles, the GGF is administered in a manner that is legal, ethical, and transparent, and participation by employees is on a voluntary basis. All P&G activity is available on the Federal Elections Commission and relevant state elections websites and a full listing of 2021 GGF Contributions can be found here.
P&G does not make political contributions outside the United States.