I think the Ocean Breeze Soap thing might be what your boss is thinking of. There's a montage where the other characters are looking for Kermit, intercut with Kermit doing great business for the ad agency. At one point, Kermit is in a boardroom enthusiastically (but with his weird "Phil" voice) saying the new slogan: "Ocean Breeze Soap will get you clean!"
That's the only scene where Kermit is in a meeting. Otherwise, perhaps your boss is thinking about the earlier scene where Kermit helps them come up with the slogan in the first place. "You mean, just say what the product does? Unbelievable!"
Incidentally, the short film Foz was discussing isn't available on video anywhere. It was only intended to be seen by network executives back in 1975, and was shown as a special treat at MuppetFest. It's never been released for TV or video distribution anywhere...so I doubt it's what your boss saw.
Gotta go now...I suddenly feel like taking a bath.
Chilly
P.S. Ocean Breeze Soap: It's like taking a cruise, except there's no boat and you don't actually go anywhere!