P&G CEO Urges Action on Financial Crisis

Lafley Pens Op-Ed, Says Suppliers, Consumers Are Struggling

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BATAVIA, Ohio (AdAge.com) -- Procter & Gamble Co. Chairman-CEO A.G. Lafley today urged congressional passage of a financial rescue plan in an op-ed in the Cincinnati Enquirer, noting that some Procter & Gamble Co. suppliers are "having great difficulty attaining loans" and that "consumers are feeling the credit crunch very directly."
A.G. Lafley
A.G. Lafley

"Now is the time for Congress and the administration to work diligently without partisanship to rally public confidence for the greater good of the country," Mr. Lafley said. "I urge the leadership of Washington to swiftly develop a proposal we can all support. And I urge people on Main Street to let our legislators know that it's impacting them."

He did not, however, offer any specific proposals that should be in a legislative package or directly support the bailout proposal rejected by the U.S. House of Representatives on Monday.

Suppliers in a bind
Mr. Lafley said P&G's brands "are largely unaffected by this issue," but he said the crisis in the credit market is having an impact on P&G suppliers. "In the past month, we have seen many examples of mid-sized and smaller suppliers having great difficulty obtaining loans, capital guarantees and access to financial markets to take advantage of new opportunities to supply P&G," he said.

A P&G spokesman said he was unaware of any specific projects or rollouts delayed because of credit problems facing suppliers.

"When consumers see their employers struggling, and also have doubts about their own financial security including the availability of credit to them, their confidence erodes," said Mr. Lafley in his column.
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