Case Study, Diageo

• Member of the Ayrshire Chamber of Commerce
• Associate member of Ayrshire Business in the Community

Historically known as the Johnnie Walker whisky plant, Diageo has been embedded within the local Ayrshire community since the company was founded in 1820. Diageo believe that community involvement is a vital part of corporate citizenship. The Diageo community involvement approach is aligned with one of the Diageo core values, ‘freedom to succeed’. Diageo aims to support projects by providing company resources that will help each project stand on its own. Whilst financial contributions are important, active involvement can often achieve much more for the community, either through the time and skills of our people, or surplus products and other ‘in-kind’ resources. The catalyst effect of a company working in partnership with non-profit and government agencies can be especially powerful in overcoming difficulties. In 2004, Diageo employees at Kilmarnock/Hurlford raised over £23k for charity projects, and this was match funded by the Diageo Foundation. Diageo believe benefits of good Corporate Social Responsibility help to create a sustainable business environment. Diageo have supported many good causes. Below are a selection of the activities that they are involved in:

• Charity Fundraising – 2004:Employees raised over £23k and this was fund matched by the Diageo Foundation
• Make it Scotland Workshops: Since the Pilot scheme was rolled out 4 years ago, Diageo have taken part in promoting Scottish Industry to local schools.
• Industrial Awareness Days: Acting as supervisors to second year pupils.
• Work Shadowing: Offering students a work placement shadowing a member of management.
• Work Experience: Offering students one weeks work experience.
• Scottish Engineering Project: Students from a local secondary school are given funding and assistance from Diageo engineering managers to complete an engineering project, before entering a national competition with their findings.
• Achievers International: Hosting the annual awards ceremony.
• Killie Writing Competition: Hosting the annual awards ceremony of this competition which is directed at budding authors from age 5 upwards.
• School prize giving: money is donated each year to Kilmarnock secondary schools for prize giving ceremonies.
• Kilmarnock Harriers: Annual sponsorship of £1,000 is given to help support and encourage budding athletes
• Business Student of the Year: Sponsoring the trophy for Business Student of the Year from the 4 local colleges within the Ayrshire area.

In line with continuing developments in international social reporting frameworks, Diageo has committed to the principle of measuring and monitoring their impact on the communities in which they are active, and in communicating the results to stakeholders and key audiences.  In Scotland, Diageo is piloting what could become its global approach to reporting on issues of corporate citizenship. A copy of the annual Diageo Corporate Citizenship Report is given to every Diageo employee. Diageo have an environmental group on site who report on various environmental issues. There is also a bi-monthly newsletter updating employees on how to minimise and recycle waste on site. There are also ‘keep it green’ campaigns to reduce power wastage on lights, pc use etc. Local suppliers are used where possible. Local glass company, Rockware, supplies much of the glass bottles needed to fulfil orders. Other local companies are used to supply stationery, signage, catering, workwear etc. Diageo continually strive to meet customer expectations. They continually review their range of products and seek to meet consumer needs through a programme of technological innovation. During 2004, they spent £11million on research and development.

The company takes Health & Safety seriously. Safety inspections are carried out at least every quarter, prior to Safety Committee meetings. As well as complying with H&S legislation, they have a bi-monthly newsletter updating employees of new and practiced legislation.  As the bottling halls have a stringent Asset Care policy, time is scheduled in the daily plan to ensure machinery and work areas are kept clean at all times.

The company has already gained ‘Investors in People’ accreditation. Diageo have an extremely knowledgeable HR department. New employees are given a copy of the company guidelines book. The HR dept uses various methods of communication (Team Talks, Employee Updates, Weekly Newsletter, Employee Groups) to make employees aware of any changes they should be aware of. All employees are provided with a copy of their employment contract.

Around the world, Diageo companies are involved in supporting hundreds of community projects in their local areas. When Diageo was created, 1% of its pre-tax profits were committed to such community projects. In 2004, the total came to nearly £18million. Part of this investment is made by the Diageo Foundation, set up by the company to offer ‘kick-start’ funding and expertise for projects within priority themes around the world.

Diageo Scotland Ltd
Kilmarnock
Ayrshire

t: 01563 575 000
f: 01563 536 744
w: www.diageo.com

NB: All case studies are based on the Organisation’s Bronze Award submission.