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Reputation – A Critical Driver of Business Value, by Ian Wright MPRCA, Corporate Relations Director, Diageo


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Reputation – A Critical Driver of Business Value, by Ian Wright MPRCA, Corporate Relations Director, Diageo

  1. 1. The economics of reputation are built on Strategy, Leadership and Accountability Diageo's 3 Key Drivers of Success in Reputation Building, 1 Ian Wright , Global Corporate Relations Director , Diageo
  2. 2. 2 THE WORLD ’S LEADING PREMIUM DRINKS BUSINESS Selling the world’s best known brands in 180 markets WORLD CLASS MARKETING
  3. 3. 3 THE WORLD ’S LEADING PREMIUM DRINKS BUSINESS 25,000talented employees in around 80countries Over £10bnturnover Over £1bnoperating profit Diageo invests over £1.5bnin marketing and promotion each year 42%of business in fastest growing markets – accounting for 21%of operating profit growth 50%of net sales in fast growing markets expected from 2015
  4. 4. 4 Our Heritage 1986 Distillers Company Limited taken over by Guinness and renamed United Distillers 1884 James Buchanan establishes his business 1877 DCL established by John Haig of Cameronbridge distillery and others 1871 James & Samuel Greenlees, of Old Parr, establish their business 1863 William Sanderson, creator of Vat 69 establishes his business 1825 Thomas Sandeman starts trading & Arthur Bell joins business in 1845 1820 John Walker opens for business 1749 Justerini & Brooks founded 1627 Haig family start distilling 1890 White Horse trademark registered 1997 Diageo formed 2001 Seagram aquisition
  5. 5. 5 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
  6. 6. 6 Business as Soap Opera …loss of trust is the new media narrative
  7. 7. 7 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
  8. 8. 8 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
  9. 9. 9 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 Reputation is Made Locally
  11. 11. Our Ambition: To create the best performing, most trusted and respected consumer company in the world 11
  12. 12. 12 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
  13. 13. 13 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
  15. 15. 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
  16. 16. 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