Date post: | 08-May-2015 |
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The economics of reputation are built on Strategy, Leadership and Accountability Diageo's 3 Key Drivers of Success in Reputation Building,
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Ian Wright , Global Corporate Relations Director , Diageo
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THE WORLD ’S LEADINGPREMIUM DRINKS BUSINESS
Selling the world’s best known brands in
180 marketsWORLD CLASS MARKETING
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THE WORLD ’S LEADINGPREMIUM DRINKS BUSINESS
25,000 talented employees
in around 80 countries
Over £10bn turnover
Over £1bn operating profit
Diageo invests over
£1.5bn in marketing and
promotion each year
42% of businessin fastest growingmarkets – accounting
for 21% ofoperating profit growth
50% of net salesin fast growing marketsexpected from 2015
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Our Heritage
1986DistillersCompanyLimitedtaken overby Guinnessand renamedUnitedDistillers
1884James Buchanan establishes his business
1877DCL established by John Haig ofCameronbridge distillery and others
1871James & Samuel Greenlees, of Old Parr,establish their business
1863William Sanderson, creator ofVat 69 establishes his business
1825Thomas Sandeman starts trading& Arthur Bell joins business in 1845
1820John Walker opens for business
1749Justerini & Brooks founded
1627Haig family start distilling
1890White Horse trademark registered
1997Diageo formed
2001Seagramaquisition
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Societal Trust is Low and Declining
Trust in Business
Trust in Business Leaders to tell the truth
50%
18%
Global
-32
2013 Edelman Trust Barometer
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Business as Soap Opera
…loss of trust is the new media narrative
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Changing Regulatory and Legislative Framework
EU calling for greater corporate accountability
Top companies in India must spend 2% of profit on CSR
RSA requires firms to have Social & Ethics Committees
China is toughening environmental legislation
Elsewhere sustainable reporting requirements are in place
MNCs to protect human rights along whole supply chain
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New Consumer and Customer Priorities
CONSUMERS:
66% consumers expect brands to be sustainable*
46% consumers are prepared to pay a premium for brands seen as sustainable*
Expectations are particularly strong among millennials and consumers in high growth markets**
*Source: ACNielsen 2012** Futures Group 2013
CUSTOMERS:
Walmart to disclose sustainability scores on shelf labels for 70% of products
Safeway wine suppliers rejected on environmental grounds
Sainsbury’s and Marks & Spencer to reduce abv of alcohol products and increase fair trade sales
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Reputation Trackers 2012
Ireland: 4.2GB: 4.1
Scotland: 4.4marked / 5
scores > 3 +ve
Diageo Hellas Platinum CSR award
(90% + score)
Ranked 2nd in food and beverage, scored 4.8/5
• Ireland & Nigeria No. 1 • Portugal 3rd
• Mexico 4th • Germany & Venezuela 7th
• Greece top ten
Reputation is Made Locally
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- REPUTATION STRATEGY
Our Ambition:
To create the best performing, most trusted and respected consumer company in the world
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We Define Our Stakeholders As:
• Investors
• Employees
• Government and NGOs
• Commercial Partners (Customers, Suppliers, Partners…)
• Community and Special Interest Groups
• Media
• Consumers of our brands
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Responsible drinking
Sustainability
Employer attractiveness
Product innovation
Relationship Management
Leadership
Contribution to society
TRUST&
RESPECT
Brand builder
Accountability - Diageo reputation drivers
Diageo reputation attributes and local market attributes to be defined
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- REPUTATION FUTURE TRENDS
Global business trends in reputation management
Reputation is becoming a critical business driver
Reputation strategies are more robust and thoughtful
Leadership expect-ations are increasing
Leadership engagement is increasing
Leadership reputation capability is required
Leadership account-ability is increasing - KPIs & scorecards
Global FUNCTIONAL trends in reputation management
As reputation becomes a critical business driver:
Functions develop more robust and thoughtful reputation strategies
Strategies and programs are more integrated and less siloed
Functions are changing to meet new demand
Push and pull between HQ & big market infra-structure versus fastest growing markets
Reputation capability
Reputation Tracking
Reputation Forecasting
Reputation Tracking
and Insights
Reputation Workshops
Functional Planning
Conversations
Changing infrastructu
re and skillsets
Changing ways of working
Resource where
needed
Big bets from the centre
Delivered for leaders
Delivered for
functions
Cascading and impact
Comprehens-ive & tailored