Procter & Gamble

Guided by our Purpose, Values and 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, D.C., in U.S. state capitals and in key country capitals 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 $4.13 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 2010 calendar year. In fiscal year 2009-2010, P&G reported lobbying activity in the range of €350,000 to 400,000 in the European Union under voluntary guidelines issued by the EU Commission.

In 2010, P&G paid roughly $8.3 million in dues to U.S. trade and industry associations with annual dues of $25,000 or more, of which $1.5 million, roughly 18 percent, was identified by 50 associations as funds spent on lobbying and political activities.
Download a listing of 2010 P&G’s U.S. associations and amount of dues attributable to political activities.

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 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 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.

P&G has no plans to use corporate funds to support independent political expenditures to influence federal elections, nor to make contributions to trade associations for that purpose. Further, our policy is to not use corporate funds to support 527 organizations or candidates in states where it is legally permissible to do so.

In 2010, P&G gave $150,000 in contributions to ballot initiatives and other issue advocacy campaigns that had a direct impact on the business. Download a listing of these initiatives

The P&G Good Government Fund (P&G GGF)

The P&G GGF is a voluntary, nonpartisan political action committee (PAC). Registered as the P&G Good Government Fund with the U.S. Federal Election Commission (FEC) and appropriate state offices, the P&G GGF 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 GGF operations are transparent and compliant with all applicable laws. It is governed by a set of bylaws and supervised by a diverse board of senior Company 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 P&G GGF 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 2010, the P&G GGF made 224 contributions to political candidates or committees totaling $224,380. The average contribution was about $1,000.

P&G GGF activity is available on the FEC and state elections Web sites.
Download a listing of all 2010 GGF contributions