Top P&G Public Policy Issues

Our Priority Policy Issues: Crafting U.S. policies and legislation to maintain a robust and competitive environment for U.S. manufacturing is critical to P&G’s future success.

Corporate Tax Policy: P&G supports corporate tax policy that maintains a level playing field with our foreign competitors both in the U.S. and in markets abroad. The U.S. corporate tax rate is the second highest in the world, and the U.S. is one of only a handful of countries that taxes the foreign income of its residual companies. This antiquated system tilts the playing field against U.S. companies in the very competitive global marketplace.

P&G believes that Congress and the Administration should begin the work on lasting reform of the tax law in a non-partisan, fiscally responsible way. The new tax law should enable American enterprise to be more competitive to help boost economic recovery and increase job growth. P&G believes that business tax reform should include a competitive territorial system with a rate at or below the OECD average.

Economic Liberalization: P&G is a globally-engaged enterprise. Over 60% of our sales are outside the United States, with the fastest growth in developing markets. We manufacture our brands close to the consumer, but many P&G jobs in the U.S. depend on our global operations.

Overall, we support responsible international economic policy which promotes predictable, transparent, and fair commercial rules. P&G supports the National Export Initiative, and advocates prompt approval of pending Free Trade Agreements (FTAs) with South Korea, Colombia, and Panama. Further, we support the Russian Federation’s accession to the rules-based multilateral trading system on commercially-meaningful terms and Congressional approval of Permanent Normal Trade Relations (PNTR) for Russia.

The U.S.-China economic relationship deserves careful attention by the Congress and Administration. P&G has a large, fast-growing business in China and expanding sales in China support and complement our operations in the U.S.

Innovation: Innovation is P&G’s lifeblood and is fundamental to growing our business and delivering products that meet consumers’ wants and needs. Each year, we invest more than $2 billion in innovation. To foster continued innovation, P&G supports:

 • Sensible, Science-based Chemical Regulations: Unreasonable bans or limitations on chemicals safely used in our products today could have a significant effect on our ability to innovate and provide products of superior quality, performance and value. P&G supports an effective U.S. regulatory framework based on the protection of human health and the environment through a risk-based chemicals management program. P&G opposes a patchwork of state requirements, and supports modernization of the Toxic Substances Control Act (TSCA).

 • Patent Reform: Our robust investment in research and development makes P&G a leading recipient of U.S. patents. P&G supports S. 23, which includes a carefully crafted compromise on the apportionment of damages and makes a number of useful reforms to U.S. patent law.

Advertising and Privacy: P&G is the world’s largest advertiser. In 2010, we spent more than $8.5 billion reaching consumers around the globe through television, print, radio, internet and in-store advertising. We also invest significantly in better understanding our consumers, which allows us to develop products and advertisements tailored to our consumers’ wants and needs.

Innovations in digital advertising allow P&G to anticipate consumers’ interests and preferences and serve them more relevant digital ads. We support a robust self-regulatory program for behavioral advertising, one that educates consumers about data collection and gives them choice with regards to data use. Responsibly managing consumer privacy is central to our success as a company.

These are significant issues with meaningful implications for our business and employees.  We want to ensure that we all – as U.S. citizens and as P&G’ers – are well-informed about these and other issues that could affect us, our families and the Company.

Information on voter registration, early voting by mail, or on where to locate your voting location can be found here.

A Message from Bob McDonald

P&G Employees:

Over the past few months, I have spent time with our Government Relations team in Washington, D.C., meeting with President Obama, members of his Administration and key Congressional leaders.  Our discussions have been objective and non-partisan as we’ve attempted to provide perspective on public policy issues affecting our Company and the business community at large. 

I thought it might be helpful to share some perspective from these discussions, particularly because I am increasingly being asked questions by P&G employees in the U.S. about where the Company stands on political and public policy matters.  I won’t presume to suggest how anyone should vote, but I do think it’s important that all of us – as employees and as P&G shareholders – have an informed understanding of issues that can impact our business. 

We have been actively engaged with the Obama Administration and the Congress on a number of issues that are important to our success.  We’ve worked closely with the Administration to help restore economic growth. For example, I advised Vice President Biden’s Middle-Class Task Force on the importance of advanced manufacturing to the future prosperity of America’s middle class. I also had the opportunity to meet with Secretary of Commerce Gary Locke and Secretary of State Hillary Clinton in support of President Obama’s National Export Initiative. While P&G is not a large exporter (we manufacture most products locally), international trade is important to P&G.  We support this measure and its goals, and I was grateful for the opportunity to share my perspective on how government and business can work together to achieve them. We also met with the President’s economic advisors, including Valarie Jarrett and Larry Summers, to share our insight into future growth projects that we believe will help create good-paying American jobs. We are committed to continuing this level of engagement.

We have also raised concerns about legislation and policies that we think will hinder economic growth and make it more difficult for companies like P&G to compete.  One example is a proposed change to the U.S. tax law that would unilaterally tax American global companies such as P&G at a rate that would far exceed what our foreign competitors (i.e. Unilever, Kao and Henkel) pay. 

We’ve also raised concerns about legislation that has been introduced in the U.S. Congress and several state legislatures that dictates how ingredients which are used in our products are manufactured and handled in the U.S.  This legislation could stifle domestic innovation and domestic manufacturing. About 90% of the products we sell in the U.S. are made in the U.S., so the effects of this legislation could be significant for our North America business.

There is a wide range of other issues that we feel are important to our business and to the nation’s economic health.  As illustrated above, we support some issues and oppose others.  The most important point is that we are actively engaged in shaping public policy because it directly impacts our ability to innovate, to operate, and ultimately, to touch and improve consumers’ lives.  As you consider which candidates to support, particularly for state and national offices, I encourage you to understand where they stand on issues such as those I’ve highlighted here.  These issues are of great importance to our business.

Thank you for visiting PGvotes for more information about these and other issues.  

Companies like ours have a responsibility and an opportunity to be a force for good in the world.  One way we fulfill this responsibility is through our engagement in public policy decisions that affect our lives and our future – as a Company and as a community of employees and shareholders.

Bob McDonald

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