Washington Business Advocacy: A Holistic View For The Washington Campus

1. Washington Business Advocacy: A Holistic ViewForThe Washington Campus Carolyn Brehm Vice President, Global Government Relations & Public Policy Procter & Gamble Friday, August 30, 2013

2. 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 Samuelson Newsweek Columnist December 2008

3. “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

4. Innovation Branding Consumer Understanding Go-to-Market Scale Innovation 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

5. 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

7. Cincinnati Washington Sacramento P&G GlobalGovernmentRelations & Public Policy Brussels Warsaw/CE/Caucus Kiev • Moscow/EE/Central Beijing • Geneva • Kobe • Shanghai Riyadh • Dubai • Guangzhou • Delhi • Mexico City • Manila • Caracas • Abuja Panama City Singapore Lagos Jakarta • SaoPaulo • Buenos Aires • Community Relations Headquarter Cities • GGR Cluster/Country Leaders • GGR Hubs P&G Privileged and Confidential Information

8. 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 • Deliver cost savings through tax breaks, lower tariff and non-tariff barriers and VAT savings • Cost avoidance by working to prevent burdensome new laws and regulations • Protect and grow business especially in developing markets with different legislative systems and high degree of government intervention • Cultivate superior reputation and trust among policy makers and be regarded as objective source of information and expertise

9. 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”

10. 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

11. Demonstrating Economic Impact • One pagers • Advertisements • Show and tell • Third party advocacy - studies • Grassroots & grasstops • Social media a work in progress

12. US Jobs Related to Making Fusion Cartridges Procter 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 PA Supplier Allegheny Ludlum Enrollment in Pittsburg PA – 3700 Corporate Enrollment - 9700 Blade Coating - Teflon– made in Chamberworks NJ Supplier Dupont Enrollment in Chamberworks NJ - 600 Corporate Enrollment - 60000 Packaging Operation– made in MA Supplier Sonoco Enrollment in MA - 60 Corporate Enrollment - 19000 Platinum Band– made in Hanau Germany Supplier WC Heraeus Enrollment in Hanau – 3000 Corporate Enrollment - 11875 Blade Steel - – made in Yasugi Japan Supplier Hitachi Enrollment in Yasugi - 1500 Corporate Enrollment - 5700 Blade Coating - Carbon– made in Exeter NH Supplier Osram Enrollment in Exeter NH - 500 Corporate Enrollment - 43500 Clip– made in North Haven CT Supplier United Aluminum Enrollment in North Haven – 150 Corporate Enrollment - 150 Printed Board– made in Rochester NY Supplier Diamond Pkg Enrollment in Rochester NY - 186 Corporate Enrollment - 200 Dispenser Polystyrene– made in Channahon IL Supplier Ineos/Nova Enrollment in Channahon IL - 70 Corporate Enrollment - 11150 Shipper– made in Gardner MA Supplier NEWW Enrollment in Gardner MA - 95 Corporate Enrollment - 134 Inner Carton– made in Lynn MA Supplier Harvard Folding Box Enrollment in Lynn MA - 130 Corporate Enrollment - 480 Packing Film– made in Gordonsville VA Supplier Klockner Pentaplast Enrollment in Gordonsville VA - 250 Corporate Enrollment - 3200 Blade Coating – Niobium/Carbon– made in Chandler AZ Supplier WC Heraeus Enrollment in Chandler AZ - 215 Corporate Enrollment - 11875 Hood - Xyron– made in Fowlerville MI Supplier Asahi Enrollment in Fowlerville MI - 475 Corporate Enrollment - 30000 Packing Film– made in Oshkosh WI Supplier Bennis Curwood Enrollment in Oshkosh WI - 4500 Corporate Enrollment - 12000

13. Lobbying in the New Washington • Bashing of big business • Vilification of lobbying and lobbyists • Lobbying & ethics rules • HLOGA & Obama Administration • P&G Good Government Fund as a tool

14. Tactics of the Best Lobbyists* • The three C’s: • Consistency • Concision • 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? • A lobbyist you know and trust, from an organization you are uncertain about – 57% • A lobbyist you don’t know but who represents a well-respected organization – 43% • Source: The Policy Council 2007 • Based on Hill Staff Interviews

15. 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 Policy