Diageo maps an ethical way forward for its staff

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Food and drinks conglomerate Diageo has produced corporate citizenship guidelines for its 77,000 employees around the world.

The guidelines, which are being distributed to Diageo staff members in more than 200 countries, outline ways in which the company hopes to become more socially responsible.

They say the group should focus resources and expertise on three key areas ‘where our business has impact and where we consider our business can benefit most from involvement’. These are:

its impact on the communities within which it does business

the impact of its products and services on society, particularly issues involving alcoholic drinks

its impact on the environment.

Case studies show how parts of the business have already taken corporate responsibility initiatives. The Burger King chain, for instance, has spent more than $43 million since 1991 on loans to increase the number of ethnic minority-owned franchise restaurants.

Diageo community support manager Ann Quinn said the group – which owns United Distilleries, Pillsbury, Guinness and Burger King – had recognised the need for an ethical framework since it was formed by the merger of Grand Metropolitan and Guinness in December 1997.

‘Grand Metropolitan produced its own corporate citizenship guidelines in 1997 but it was felt these should be updated and consolidated by the new company,’ she said. ‘Their main focus is for our people and businesses around the world, but they have also been drawn up with a view to communicating with an external audience.’

Quinn said there were no plans to produce a group social report in the near future, but that various parts of the business may produce their own. The guideline document includes results of a pilot framework for social, environmental and economic reporting carried out by the Diageo-owned drinks company UDV, which has produced a social report on its activities in Poland.

Diageo hopes the report, verified by KPMG consultants, ‘will encourage other businesses to measure, improve and report performance to the wider public’.

Burger King has told an Israeli company that opened a franchise in the disputed West Bank territory that it must remove its brand name from the site. The company said the franchisee, Rikamor, had ignored instructions not to operate in the area under the Burger King banner ‘at this sensitive time in the peace process’. It added: ‘Burger King has no interest in taking sides in the Arab-Israeli peace process.’