Washington Business Advocacy: A Holistic View

ForThe Washington Campus

Carolyn BrehmVice President, Global Government Relations

& Public PolicyProcter & GambleFriday, August 30, 2013

What is Government Relations?

“Lobbying is Democracy in Action”

“Lobbying is modern marketing: trying to transform a group’s narrow interest into something perceived, rightly or wrongly, as serving the broad public interest”

Robert SamuelsonNewsweek ColumnistDecember 2008

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“Corporate representatives who are effective and principled advocates of their company’s interests, and of the business community as a whole, help government arrive at better informed decisions.”

Bryce Harlow’s P&G’s 1st Washington Representative

InnovationBranding Go-to-

Market

Innovation

Consumer Understanding

Scale

50 Leadership Brands

• Among the world’s best-known household names

• Represent 90% of P&G sales, more than 90% of profits

• Include 25 billion-dollar brands

P&G’s 2012/13 Global Footprint 121,000 employees $84 billion in sales; more than $11 billion in net

earnings Operations in 80 countries Sales in more than 180 countries $3.5 billion in taxes globally Touched 4.8 billion consumers a day More than 60% of sales outside of the US /

Canada 39% of sales in developing markets $100 million per year in charitable contributions $2 billion spent on R&D

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P&G Global Government Relations & Public Policy

Cincinnati

Washington

Sacramento • Mexico City

Brussels

• Beijing

• Shanghai• Guangzhou

• Moscow/EE/Central

• Manila

• • •

Panama City• •

Caracas

• Sao Paulo

• Buenos Aires

• Lagos

• Dubai

• Geneva

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• Delhi

• Kobe

Singapore

Jakarta

P&G Privileged and Confidential Information

• Community Relations Headquarter Cities• GGR Cluster/Country Leaders GGR Hubs

• Abuja

• Riyadh

Warsaw/CE/CaucusKiev

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Global Government Relations Mission:  Influence legislation and policies that build or

protect P&G’s global business interests consistent with PVPs

How: Protect the business; Grow the business; Reputation building with key government stakeholders; Grow GR capability

Core Work:  Focus on opportunities and challenges identified in close consultation with business owners

o Deliver cost savings through tax breaks, lower tariff and non-tariff barriers and VAT savings

o Cost avoidance by working to prevent burdensome new laws and regulations

o Protect and grow business especially in developing markets with different legislative systems and high degree of government intervention

o Cultivate superior reputation and trust among policy makers and be regarded as objective source of information and expertise 8

How GR works to Support Global Business Internal Business leaders are clients

Constantly connecting externally – eyes, ears and voice

Business needs drive issue priorities – business impact determines choices

Seek long term strategic solutions over short term fixes – Porter’s shared value creation concept

Every issue needs senior business owner – value of opportunity/cost helps drive priorities

Success – or progress- is measured annually – did we deliver objectives?

Proactive outreach – “411 before the 911”9

GGR Tools and Resources

Associations, coalitions and think tanks

Senior executive engagement – CEO, CFO, GLC program

Plant assets – US plant manager fly-in; plant tours

Reputation-building opportunities – Children’s Safe Drinking Water; Protecting Futures

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Demonstrating Economic Impact One pagers

Advertisements

Show and tell

Third party advocacy - studies

Grassroots & grasstops

Social media a work in progress

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US Jobs Related to Making Fusion CartridgesProcter and Gamble manufactures and packages Fusion Cartridges in Massachusetts – but many other companies, small and

large, contribute to making this product. As Fusion sales increases, P&G and its workers are affected, and so are these suppliers and their workers

Blade Support and Trimmer Housing –

made in Pittsburgh PASupplier Allegheny LudlumEnrollment in Pittsburg PA – 3700Corporate Enrollment - 9700

Clip – made in

North Haven CTSupplier United AluminumEnrollment in North Haven – 150Corporate Enrollment - 150

Dispenser Polystyrene – made in

Channahon ILSupplier Ineos/NovaEnrollment in Channahon IL - 70Corporate Enrollment - 11150

Inner Carton – made in

Lynn MASupplier Harvard Folding BoxEnrollment in Lynn MA - 130Corporate Enrollment - 480

Blade Coating - Teflon – made in

Chamberworks NJSupplier DupontEnrollment in Chamberworks NJ - 600Corporate Enrollment - 60000

Blade Coating – Niobium/Carbon –

made in Chandler AZSupplier WC HeraeusEnrollment in Chandler AZ - 215Corporate Enrollment - 11875

Blade Coating - Carbon – made in

Exeter NHSupplier OsramEnrollment in Exeter NH - 500Corporate Enrollment - 43500

Printed Board – made in

Rochester NYSupplier Diamond PkgEnrollment in Rochester NY - 186Corporate Enrollment - 200

Hood - Xyron – made in

Fowlerville MISupplier AsahiEnrollment in Fowlerville MI - 475Corporate Enrollment - 30000

Shipper – made in

Gardner MASupplier NEWWEnrollment in Gardner MA - 95Corporate Enrollment - 134

Packing Film – made in

Gordonsville VASupplier Klockner PentaplastEnrollment in Gordonsville VA - 250Corporate Enrollment - 3200

Packing Film – made in

Oshkosh WISupplier Bennis CurwoodEnrollment in Oshkosh WI - 4500Corporate Enrollment - 12000

Packaging Operation – made in

MASupplier SonocoEnrollment in MA - 60Corporate Enrollment - 19000

Blade Steel - – made in Yasugi JapanSupplier HitachiEnrollment in Yasugi - 1500Corporate Enrollment - 5700

Platinum Band – made in

Hanau GermanySupplier WC HeraeusEnrollment in Hanau – 3000Corporate Enrollment - 11875

Lobbying in the New Washington

Bashing of big business

Vilification of lobbying and lobbyists

Lobbying & ethics rules

o HLOGA & Obama Administration

P&G Good Government Fund as a tool

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Tactics of the Best Lobbyists* The three C’s:

o Consistencyo Concisiono Credibility

Providing consistently reliable info – 86%Presenting a concise argument – 82%Providing evidence to support position – 77%Presenting, refuting opposing view – 71%Holding face to face meetings – 70%

Assuming each represents your constituents, with whom would you most likely meet?o A lobbyist you know and trust, from an organization you are

uncertain about – 57%o A lobbyist you don’t know but who represents a well-respected

organization – 43%

14• Source: The Policy Council 2007 Based on Hill Staff Interviews

P&G / US Priority Issues 2013

US Corporate Tax Reform Economic Liberalization – TPP, TTIP,

China BIT Shaping Regulations - US Chemicals

framework, solid waste

Marketing & Advertising Policy/Regulation

US-China Policy15