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Frequently Asked Questions
What is the Procter & Gamble PAC?
Established in 1992, the P&G Political Action Committee (P&G PAC) is a voluntary, nonpartisan political action committee. Registered 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 seeking elective office at the federal, state and local level, who support issues important to our business, our employees and our shareholders.
Why does P&G have a PAC? Active employee engagement in the political process is an important means of protecting our business, employee and shareholder interests. The size and scope of government have continued to increase and grow more complex. Governments decide how business is conducted and public policy decisions made in one industry sector often reverberate in many other sectors. State governments are becoming more proactive than ever before, leading the charge in legislative activity on important issues that impact our business - ex.) promotion of international free trade, sound domestic and international tax policy, proper regulation of chemicals in consumer products, phosphate bans and packaging restrictions. P&G PAC allows employees to engage the political process by pooling resources and supporting elected officials who support issues important to P&G. As a leader in our industry and the business community, it’s critical that we be engaged and have a robust, effective PAC.
Does the PAC report its contributions and expenditures?
Yes. P&G PAC operations are transparent and compliant with all applicable laws. Because they are regulated by the Federal Election Commission (FEC) and state and local election agencies, PACs are considered the most transparent form of political involvement. As required by law, P&G PAC activity is publicly disclosed on the FEC and state election agency websites.
Is the PAC bi-partisan?
Yes. P&G PAC support is based on candidates’ support of P&G issues and sustained constituent and business relationships, regardless of political party. Starting in 2006, PAC Members will have the option of designating their contribution toward either Democratic or Republican candidates, or leave it to the discretion of the P&G PAC Board.
What are the PAC’s contribution criteria? PAC support is based on candidates’ support of P&G issues and sustained constituent and business relationships. P&G PAC generally does not contribute to Presidential candidates; industry, association or leadership PACs; or multiple candidates running in the same race.
The average size of a P&G PAC contribution in 2008 was $1452.
Who decides where the PAC money goes?
P&G PAC is governed by a set of bylaws and supervised by a diverse Board of Senior Executives and PAC Members. PAC support is determined by P&G’s government relations team and approved by Members of the PAC Board. Each contribution is also approved by the Legal department.
What percentage of a contribution actually goes toward candidates? Over 99% of your PAC contribution goes to support local, state or federal candidates for office. Federal law permits companies like P&G to establish and support employee political action committees. P&G pays most PAC administrative and operating costs, however it is forbidden by law from contribution monetarily to the PAC. Some states require the PAC to reimburse the company for these expenses. These expenses are minimal and constitute less than 1% of annual PAC receipts.
Who can participate in the P&G PAC? While all P&G employees who are U.S. citizens or permanent green card holders are eligible to participate, only those employees who are Band IV and above (Associate Directors) are solicited.
Is anyone required to contribute to the P&G PAC?
CONTRIBUTIONS TO THE P&G PAC ARE STRICTLY VOLUNTARY. Your decision to join the PAC has absolutely no effect on your employment status or performance evaluation.
How much can someone contribute to the P&G PAC? Individuals are allowed to contribute $5,000 per year to PACs. P&G PAC has suggested contribution levels which are outlined on the Enrollment form. Contribution levels are only a suggestion and more or less may be given without reprisal. Contributions at any level are always welcomed and appreciated. P&G PAC contributions are not tax deductible.
Who sees how much an employee gives to the PAC?
Only essential PAC administrators have access to PAC member information. Federal law requires the PAC to report the name, mailing address, occupation and name of employer for each individual whose aggregate contribution exceeds of $200 in a calendar year. This information is publicly available on the Federal Election Commission’s website www.FEC.gov
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