A. Background
Interaction with government officials and government agencies is an important and useful part of the federal, state, and local legislative processes, provided it is conducted in compliance with all applicable legal requirements. Laws and regulations governing lobbying or attempts to influence government officials vary from state-to-state and continue to be revised at the federal level.
To help support PPG’s objective of full compliance with all government regulations and policies, PPG has developed this Corporate Policy on Lobbying/Interactions with Government Officials (“Policy”) to guide its employees. This Policy requires that all PPG U.S. employees adhere to strict procedures for interactions with elected officials and their staff.
B. Overview
Scope:
This Policy applies to all PPG employees in the U.S. that are full-time, part-time, and occasional/seasonal, including employees of PPG’s U.S. affiliates or subsidiaries. This Policy also applies to contingent workers and contracted workers in accordance with their employers’ contractual obligations to PPG.
Although comprehensive in scope, the Policy is an overview and does not address every instance where political implications may affect an employee’s job. For questions related to this Policy, employees should contact Emily Elizer, director, government affairs, at EElizer@ppg.com.
Summary:
PPG Government Affairs represents all PPG entities in governmental processes and serves as the only authorized representative of PPG in the public policy arena. This Policy serves to inform employees about permissible employee activities in this area, some of which require preapproval, as well as prohibited conduct. It represents the mandatory minimum requirements to be followed by PPG U.S. employees and contractors and addresses the following topics in Section D:
• Lobbying
• Grassroots & Employee Advocacy Requirements
• Political Campaign Volunteering & Personal Contributions
• Voting
• Conducting Business with Government Entities
• Gifts, Gratuities and Payments to Public Officials
• Corporate Funding in Support of Candidates & Issues
• Trade Organizations
• Employee Political Forum (PPG PAC)
• Public Policy Priorities
Purpose:
This Policy’s purpose is to educate and establish the requirements for U.S. employees with respect to political and public policy activity as it pertains to employment with PPG as a U.S.-based company. PPG encourages employees to engage in the political process, both personally and professionally, in accordance with the law and this Policy. U.S. federal, state and local laws regulate certain political activities of U.S.-based corporations and its employees, and certain laws compel disclosure pertaining to engagement with government entities, officials, candidates, and committees. To that end, this Policy clarifies the legal and ethical obligations associated with political activity as it relates to your employment with PPG.
For purposes of this Policy, the term “government official” applies to any elected or appointed official, or any other official or employee, of any federal, state, or local legislature, executive branch agency, or other government agency, commission, board, authority, public fund, or any other governmental or quasi-governmental entity.
C. Responsibilities
Employees
• Know, understand, and abide by the Policy.
• Ask questions if unclear about the intent or application of the Policy.
• Be a proactive partner in sustaining a culture that is respectful, ethical and compliant.
• When requested, certify understanding of and compliance with the policy, as appropriate.
Leaders
• Lead by example – know, understand, and abide by the Policy.
• Create and sustain a work environment that treats all people with respect, is ethical, reflects PPG values, is compliant with PPG policies and is safe to raise questions.
• Hold employees accountable for violation of policies.
• When requested, certify understanding of and compliance with the policy, as appropriate.
D. Requirements
1. Lobbying
Lobbying involves making contact with government officials – or encouraging others to make contact with such officials -- in an attempt to influence legislation or regulatory activity and in some cases procurement activity at the U.S., federal, state or local level. Federal law requires companies to register and report lobbying activity in certain instances which requires consultation with the government affairs function. PPG files lobbying reports, copies of which are available at http://lobbyingdisclosure.house.gov or http://www.senate.gov/legislative/Public_Disclosure/LDA_reports.htm. State and local governments may also have their own lobbying, registration and reporting requirements.
Examples of lobbying activities include but are not limited to attempting to influence legislation, formal rulemaking or other administrative action, influencing the decision on an award or terms of a government contract, and grassroots lobbying.
As a PPG employee:
- Government Affairs representatives (and other employees pre-authorized by Government Affairs) are the only employees that may engage in lobbying. In general, employees should not be engaging in lobbying activity on behalf of PPG unless done in conjunction with the Government Affairs department and with pre-approval from the Director of Government Affairs.
- If employees believe their job responsibilities require interaction with government officials, then they must obtain pre-approval from the Director of Government Affairs.
- Employees may not invite candidates or government officials to a PPG facility without prior approval from the Director of Government Affairs.
- Unless part of a PPG-approved grassroots lobbying effort, employees must avoid communicating or acting in a manner that could mislead others into believing such employees’ personal views are those of the company.
- Employees must obtain approval from Government Affairs prior to retaining any outside consultant to engage in lobbying activities. All contacts with government elected officials (and contracts for lobbying consultants) on behalf of PPG must be coordinated with and approved by PPG Government Affairs. This includes participation in trade association events such as legislative fly-ins or any type of meeting with an elected official.
- Requests for company positions on pending legislation initiated by legislators or their staff to any PPG employee must be discussed with PPG Government Affairs and position papers may not be given out by PPG staff without the prior consent of the Director of Government Affairs.
- PPG associates must contact PPG Government Affairs if a government official approaches them requesting to: visit a PPG facility; conduct a town hall; or request an audience of PPG employees. This includes elected officials at the federal, state and local levels of government.
2. Grassroots & Employee Advocacy Requirements
PPG may engage in “grassroots” lobbying activity by communicating with employees or a segment of the public for purposes of influencing legislation or rulemaking. Government Affairs is responsible for advocacy efforts concerning industry or public policy issues of interest to PPG.
Under the direction of Government Affairs, PPG or one of its subsidiaries may request that employees contact federal, state or local legislators regarding an issue of critical importance to the company. Such requests will generally include background information about the issue, its importance to PPG and a suggested message for employees to convey to their legislator. If applicable, Government Affairs may also share information on relevant state or local lobbying laws as prepared by PPG legal counsel.
As a PPG employee:
• If requested by PPG to participate in grassroots initiatives, employees’ participation is encouraged but is never required as a condition of employment.
• No employee may engage in grassroots lobbying activities on behalf of PPG without prior approval from the Director of Government Affairs.
• Periodically, PPG (as represented by senior management and Government Affairs) may organize events to educate employees or support community initiatives related to government. The Director of Government Affairs must approve any event.
*See https://www.ppg.com/about-ppg/en-US/government-affairs for additional information.
3. Political Campaign Volunteering & Personal Political Contributions
When a PPG employee participates in a political campaign as a candidate, volunteer, financial sponsor or otherwise, the employee is participating as a private citizen and not as a representative of PPG. Employees providing financial support to a political candidate or issue should familiarize themselves with state and local laws and contribution limitations. In some states, certain employees may be required to disclose their personal contributions. Affected employees or officials may include members of PPG Board of Directors, executive officers, and employees contracting with government officials. These laws may also impact immediate family members of affected employees. Federal, state and local laws generally require that all political contributions – whether financial (e.g., in the form of a corporate check or a purchase of tickets to a political fundraiser) or in-kind (e.g., the use of company personnel or facilities or donation of product or services) – are reported to proper election authorities and public disclosure is often required. In some instances, such contributions are illegal. All donations of PPG resources -- including products, services or use of any PPG property or resources -- to political entities require close coordination with PPG Government Affairs and must be discussed with Director of Government Affairs prior to being made.
As a PPG employee:
- While engaging in personal political activities, PPG employees must do so as an individual and may not hold themselves out as representing PPG, or in a manner which could be perceived as representing PPG. Any overt, visible, and partisan political activity (including use of corporate title) that would cause someone to believe that an employee’s actions reflect the views or positions of PPG requires preapproval by Government Affairs.
- Employees may not perform campaign activities on company time and are prohibited from using company property or resources (e.g., computers, email, phones) for such activities.
- If your store or location is approached about a contribution (including donations of equipment or other resources) to a political campaign or organization, please contact the Government Affairs team prior to making any commitment.
- PPG shall not directly or indirectly reimburse or otherwise compensate any person for his or her personal political contributions – see also PPG Employee Political Forum (PPG PAC) below.
- This Policy does not apply to individual political expression that is not on behalf of PPG. You can work to influence legislative bodies relating to issues of personal concern. However, you must ensure that you do not mention PPG or use any company resources (letterhead, e-mail accounts, etc.) that might give the appearance you are acting on PPG’s behalf.
4. Voting
PPG promotes the importance of voting and encourages all employees to vote on Election Day.
As a PPG Employee:
- Employees should talk to their managers regarding Election Day plans to minimize scheduling disruptions.
5. Conducting Business with Government Entities
In an effort to prevent bribery and corruption, U.S., non-U.S., federal, state and local laws regulate the manner in which companies may conduct business with government entities. Some states and localities have enacted so-called “pay-to-play” laws, which may require PPG to report certain information, including personal political contributions of certain “covered” employees and their families, or limit the scope of business transactions with governmental entities if these covered individuals make or solicit political contributions to a candidate campaign in that jurisdiction. To support compliance with applicable laws, it is imperative that employees understand the instances where personal contributions may impact their business activities and trigger compliance obligations for PPG.
As a PPG employee:
• Employees may not make a political contribution to obtain or retain business for PPG or to obtain any other improper advantage.
• Prior to making or soliciting political contributions at the state or local level (or to a state or local official running for federal office), employees should contact the Legal Department for additional guidance on pay-to-play laws specific to their business activities and to report applicable activity.
6. Gifts, Gratuities and Payments to Public Officials
In connection with PPG’s Global Code of Ethics and Global Anti-Corruption Policy, and in accordance with applicable federal, state and local laws, employees are strictly prohibited from giving gifts, gratuities or anything of value to influence a government official or to advance PPG business. This prohibition extends to anything that personally benefits the individual to whom it is given, including meals, entertainment, travel, lodging and any other items of value to the recipient. Employees should never provide any such items to a government official (federal, state or local public officials, and in some cases their spouse or children) without the prior approval of Government Affairs and Legal. Employees must strictly comply with these policies to ensure their conduct complies with legal requirements and avoids any impropriety and the appearance of impropriety.
As a PPG employee:
• Due to the sensitive and complex nature of these prohibitions against gifts, gratuities and payments to public officials, employees should consult Government Affairs for advice prior to interacting with government officials, their spouses, or children in order to avoid inadvertent violations of company policy and applicable law.
7. Corporate Funding in Support of Candidates and Issues
As allowed by law, PPG may provide corporate funding to candidates and/or ballot measures or issue advocacy campaigns that align with the company’s business objectives and public policy goals.
When deciding whether to support a particular candidate or campaign, the company manages the process as follows:
Disclosure and Corporate Governance
Although other policies may restrict certain corporate spending on political and public affairs matters, PPG discloses corporate funds and PPG PAC spending in compliance with applicable laws.
Current PPG policy prohibits corporate funds being used to support candidates, ballot measures or issue advocacy campaigns. All contributions come from the employee-funded PPG PAC.
The PPG PAC Executive Committee is comprised of PPG PAC members and meets twice a year, or as needed, to review and approve PPG PAC funding for contributions pertaining to:
• Candidates, political parties or political organizations;
• Ballot campaign initiatives;
• Independent expenditures;
• Any electioneering communications on behalf of a federal, state or local candidate.
Selection Criteria:
The Executive Committee will evaluate the following criteria when considering potential recipients of corporate funds:
• Business impact – including the interests of the company, employees, shareholders and customers
• Public policy goals – including the recipient’s ability to positively impact one or more of the PPG policy priorities
• Alignment with PPG core values
As a PPG employee:
• Provide feedback to Government Affairs. Government Affairs works to educate employees on PPG political activity and policy through online learnings, group meetings, communications and individual conversations. Employees who would like to learn more about PPG political engagement should contact Government Affairs.
• Employees may not make political contributions from PPG—which include monetary contributions from company funds, use of corporate personnel or facilities, and donations of equipment or other resources—without obtaining prior approval from Government Affairs and Legal.
8. Trade Organizations/Associations
PPG belongs to several business and trade organizations that support and lobby on behalf of various public policy initiatives. PPG Government Affairs monitors the use of dues or payments to trade associations and other organizations to ensure consistency with the company’s stated policies, practices, values and long-term interests.
As a PPG employee:
• Employees should notify Government Affairs if they or a business or retail team is considering joining a trade organization or association that engages in lobbying activity.
• If unsure whether a trade organization engages in lobbying activity, employees should consult with Government Affairs prior to joining the trade organization.
• Any associates who participate in trade association activities that are involved with developing or advocating public policy must report their activity to PPG Government Affairs for determination as to whether such activity needs to be covered in PPG’s required disclosures.
9. Employee Political Forum - PPG Political Action Committee (PPG PAC)
The PPG PAC is PPG’s non-partisan political action committee governed by the Federal Elections Campaign Act. The PAC allows eligible employees to pool their personal funds on a voluntary basis to help elect candidates who appreciate and understand the issues important to PPG.
The PAC is governed by an Executive Committee composed of a diverse group of PPG PAC members. The membership of the PAC Executive Committee rotates periodically to allow additional opportunities for PAC members to participate in the review and approval of contributions and direction of the PAC. The PAC’s activity, including all receipts and disbursements, are reported regularly to the Federal Election Commission (FEC). Nothing in this Policy is intended to prohibit the activities of the PAC or the ability of eligible employees to participate in the PAC as allowed by federal law.
As a PPG employee:
• Participation in the PAC is completely voluntary and at the discretion of eligible employees as allowed by federal law.
• Employees will not be favored or disadvantaged based on their decision to join or not join the PAC or the amount of any contribution made to the PAC.
• No employee may cause the PAC to make a political contribution without obtaining prior approval from Government Affairs.
• Neither the company nor the PPG PAC may reimburse an individual or entity for making political contributions.
10. PPG Public Policy Priorities
Each year, under the direction and approval of the Director of Government Affairs, the company develops public policy positions that have a direct impact on our business. Government Affairs manages these issues throughout the federal, state, local, foreign and multinational legislative sessions. Consistent with federal, state and local laws, PPG discloses all activities and expenses related to lobbying. Federal lobbying reports can be found at: http://www.senate.gov/legislative/Public_Disclosure/LDA_reports.htm or http://lobbyingdisclosure.house.gov/.
E. Non-Compliance
Penalties for violations of federal, state and local election laws can be serious and could impact PPG’s reputation and ability to conduct business with the U.S. government. Failure to comply with these laws, even if that failure is inadvertent and caused by lack of awareness of the law, could result in a legal violation, civil and/or criminal penalty, and reputational risk to the company. Employees who knowingly or negligently violate these laws or this Policy will be subject to disciplinary action up to and including termination and/or, if applicable, legal action.
F. Reservation of Rights
This Policy is not intended to be a contract. PPG reserves the right in its sole discretion to interpret the provisions of this Policy, vary from them, change them, or rescind them, unless prohibited by applicable law.
G. Additional Resources
Please also refer to the following resources and policies: