Reputation – A Critical Driver of Business Value, by Ian Wright MPRCA, Corporate Relations...
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Transcript of Reputation – A Critical Driver of Business Value, by Ian Wright MPRCA, Corporate Relations...
Selling the world’s best known brands in
180 marketsWORLD CLASS
MARKETING
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 business
in fastest growingmarkets – accounting
for 21% of
operating profit growth
50% of net sales
in fast growing marketsexpected from 2015
1986
DistillersCompanyLimitedtaken 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
1997
Diageo formed
2001
Seagramaquisition
Trust in Business
Trust in Business Leaders to tell the truth
50%
18%
Global
-32
…loss of trust is the new media narrative
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
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
CONSUMERS: 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
Reputation Trackers 2012 Ireland: 4.2
GB: 4.1
Scotland: 4.4
marked / 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
CELEBRATING LIFE EVERYDAY EVERYWHERE
To create the best performing, most trusted and respected consumer company in the world
To transform our reputation in every market
Ambition: To create the best performing, most trusted and respected consumer company in the world
WHAT WE WILL
ACHIEVE
FOCUS AREA Transform reputation in every market
KEY PRIORITIES
Build Brand DiageoBroaden accountability
to 21 GMs + teamsLead on Alcohol in
SocietyOther S&R standards
and programmesWin the War for Talent
KEY ENABLERS Build and Measure Accountability and Capability
Equity + Price + Share growth in every priority
brand market unit
Annual operating margin expansion across every
activity
Transformed reputationin every market through
enduring stakeholder partnerships and
exemplary conduct
Super-engaged people everywhere
LEADERSHIPALCOHOL IN SOCIETY
Advocacy | Enduring partnerships | Ambitious global targets
CRITICAL BUSINESS FOUNDATIONPeople, Parity and Sustainable Sourcing:Health and safety, health and wellness, human rights, diversity, fair wages, fair tax, carbon, waste, packaging, water, local investment, sustainable agriculture.Underpinned by core values, ethics, exemplary conduct, governance and compliance.
SKILLS & EMPOWERMENT• Total supply chain approach• Focus on customers and farmers• Apply gender lens• Partnership approach• Demonstrate strong ROI
WATER STEWARDSHIP• We care about water • Specific interventions in
challenged markets or crisis situations
• Advocacy and partnership approach
BEST PRACTICE PROGRAMMES
• Investors
• Employees
• Government and NGOs
• Commercial Partners (Customers, Suppliers, Partners…)
• Community and Special Interest Groups
• Media
• Consumers of our brands
US SPIRITS AND WINE OPEN STATES
NAM
US SPIRITS AND WINE CONTROL STATES
DIAGEO GUINNESS USA (DGUSA)
CANADA
VENEZUELA
COLOMBIA
ANDEAN
FREE TRADE ZONE
WEST LAC
MEXICO
BRAZIL
PUB
URUGUAY
PARAGUAY
GB
WESTERN EUROPE
GERMANY
IBERIA
IRELAND
ITALY
BENELUX
NORDICS
GREECE
MHD
RUSSIA
POLAND
RUSSIA & E EE
PARTNERMARKETS
KENYA
EAST AFRICA
RWANDA
BURUNDI
SOUTH SUDANTANZANIA
UGANDA
GHANA
AFRICA REGIONAL MARKETS
DISA
CAMEROON HUB
CHINA
GREATER CHINA
AUSTRALASIA
HONG KONG
TAIWAN
VIETNAM
THAILAND
SOUTH EAST ASIA
INDONESIA
KOREA JAPAN
NORTH ASIA
PHILIPPINES
MALAYSIA
ETHIOPIA
NIGERIA SOUTH AFRICA
GTME INDIA
TURKEY
ESTABLISHED MARKETS
EMERGING MARKETS
STRONG REPUTATION
CRITICAL OPPORTUNITY
RESERVE
DGCE WINES
JAMAICA
SOUTH LAC
CENTRAL KEY
CENTRALVENTURE
SINGAPORE
Lack of economic growth and unemployment
Increasing competition for raw materials and need for sustainable supply chain
Alcohol-related health issues
Regulation and taxation of alcohol
Changing consumer consumption patterns
Increasing competition concentration of businesses
SETS A COMPELLING
VISION
SEE RESPONSIBILITY AND SUSTAINABILITY
AND CENTRAL TO A HEALTHY BUSINESS
STRONG INFLUENCING & NETWORKING
SKILLS
RADAR FOR FORESIGHT/ RISK
AND INSIGHT
GREATSTORY TELLERS
UNDERSTAND SOCIAL MEDIA AGENDA
& REAL TIME COMMUNICATIONS
COALITION BUILDERs AND
GOOD NEGOTIATORs
ACCOUNTABLE
ON TOP OF THE NEWS AGENDA
CONSISTENTLY SETS AND ARTICULATES A COMPELLING VISION
RADAR FOR RISK
AND INSIGHT
Key
mod
ules
ESSENTIALS OF REPUTATION
MANAGEMENT
MESSAGING & NARRATIVE
INTERNAL LEADERSHIP
THE WAR FOR TALENT
CSR & SUSTAINABILITY
ALCOHOL & SOCIETY
PUBLIC POLICY & COALITION-
BUILDING
ENGAGING EXPERTS &
SEEKING ENDORSEMENT
LIVING & LEADING DIAGEO’S VALUES
BUILDING BRAND DIAGEO
Liv
e!
Cha
llen
ges
SALES AND MARKETING FREEDOMS
A NEW TAX NEW PRODUCT
INNOVATION
DEEP DISCOUNTING
Atte
nd
ee
s 21 General Managers Local management teamsLocal Corporate Relations
teams (induction)
Wha
t? The Diageo Reputation Master Class
FACTORY OPENING/CLOSING
PRODUCT RECALL
US SPIRITS AND WINE OPEN STATES
US SPIRITS AND WINE CONTROL STATES
DIAGEO GUINNESS USA (DGUSA)
CANADA
VENEZUELA
COLOMBIA
FREE TRADE ZONE
MEXICO
BRAZIL
URUGUAY
PARAGUAY
GB
GERMANY
IBERIA
IRELAND
ITALY
BENELUX
NORDICS
GREECE
MHD
RUSSIA
POLAND
PARTNERMARKETS
KENYARWANDA
BURUNDI
SOUTH SUDANTANZANIA
UGANDA
GHANADISA
CAMEROON HUB
CHINA
AUSTRALASIA
HONG KONG
TAIWAN
VIETNAM
THAILAND
INDONESIA
KOREA JAPAN
PHILIPPINES
MALAYSIA
ETHIOPIA
NIGERIA
SOUTH AFRICA
GTME INDIA
TURKEY
ESTABLISHED MARKETS
EMERGING MARKETS
STRONG REPUTATION
CRITICAL OPPORTUNITY
RESERVE
DGCE WINES
JAMAICA
SOUTH LAC
CENTRAL KEY
CENTRALVENTURE SINGAPORE
1. NAM 2. WE 3. Russia & E EE
4. Greater China & NA
5. SE Asia
6. SA & Africa regional
8. East Africa
9. WLAT & MEXICO10. PUB & ANDEAN
7. GTME, IN, AUS
Ten, 2-day regional Master Class sessions will immerse 80+ Diageo leaders in reputation capability
Diageo reputation attributes and local market attributes to be defined
Behavioural intentions & trust
Materiality, Foresight
Competitor benchmark
Source rankingReputation metrics
Engagement preferences
Media monitoring and message output tracking
Integrated with Values Survey
TAG and other stakeholder feedback mechanisms
1. Roll out Diageo global reputation tracker model
2. 2013 benchmark study in 21 markets supply and demand
3. Representative sample of respondents agreed per market across our main stakeholder groups – qualitative and quantitative approach, interviews and online
4. Integrate existing key research
5. Develop functional and leadership performance scorecards
6. Performance tracking and incentives – development towards achieving our 2017 reputation and business goals
7. Tailor research to individual market needs
8. Comprehensive research every 2 years and deep dives and pulse survey every other year
ILLUSTRATIVE
Brand Diageo
21 GMs as CEOs
Lead on Alcoholin Society
Water of Life
Learning for Life
The world’s most trusted and respected consumer company
Reputation management embedded across our business
Diageo and our industry are trusted partners in the alcohol debate
We care about the safety and quality of life of people and communities…
…and we empower them to celebrate life every day, everywhere
Trust (Tax)We are trusted to lead by the spirit as well as the letter of the law
Reputation is becoming a critical business driverReputation strategies are more robust and thoughtfulLeadership expect-ations are increasing
Leadership engagement is increasingLeadership reputation capability is requiredLeadership account-ability is increasing - KPIs & scorecards
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 capability
Reputation Forecasting
Reputation Tracking and
Insights
Reputation Workshops
Functional Planning
Conversations
Changing infrastructure and skillsets
Changing ways of working
Resource where needed
Big bets from the centre
Delivered for leaders
Delivered for functions
Cascading and impact
Comprehensive & tailored
