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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 is an important
means of building and protecting our global business, and 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 and are providing additional detail in response to
requests from external stakeholders.
P&G's public policy and legislative priorities are reviewed annually
with senior business leaders as well as 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; 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 $1.97 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 2007
calendar year. Beginning in 2008, P&G will report lobbying activity
in the European Union under new voluntary guidelines issued
by the EU Commission.
In 2007, P&G spent over $9.9 million in dues to associations in the
U.S. with annual dues of $25,000 or more, of which $1.7 million,
roughly 17 percent, was identified by 42 associations as funds
spent on lobbying and political activities. A listing of P&G's U.S.
associations and percentage of dues attributable to political activities
can be downloaded by clicking here.
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, Chief Operating
Officer, and Chairman & 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.
In 2007, P&G gave $101,500 in contributions to state ballot
initiatives and other issue advocacy campaigns that had a direct
impact on the business. A listing of these initiatives can be downloaded by clicking here.
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 2007, the P&G PAC contributed
$238,105 to candidates running for office. The average contribution was $1,189.
Additionally, P&G operates a separate state PAC in Massachusetts.
In 2007, the P&G/Gillette state PAC contributed $2,050 to
Massachusetts state and local candidates. The average contribution was $410.
P&G PAC activity is available on the FEC and state elections websites. A listing of all 2007 PAC contributions can be downloaded by clicking here.
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