Stock exchange symbol: (DGE:LN)
Diageo provided the following introductory information:
• Diageo’s Code of Business conduct can be downloaded here: [link]
• Diageo’s Human Rights and Anti-Discrimination Global Policy can be downloaded here (under Our Code, Policies and Standards): [link]
• In completing our annual Sustainability and Responsibility Report, Diageo adheres to the GRI G4 – reporting on all 12 of the Human Rights specific standard disclosures. The latest report and the Addendum to the report can be found here: [link]
• In December 2014, Diageo released its 2020 Sustainability and Responsibility targets, which aim to further reinforce our commitment to sustainability and responsibility - accessible here: [link]
Does your company have a publicly available commitment to respect human rights?
Yes, Diageo has a stand-alone Human Rights and Anti-Discrimination policy, which is also part of our global Code of Business Conduct. We also recognise our responsibility to respect human rights within our supply chain, and our supplier code of conduct, ‘Partnering with Suppliers’, sets out the human rights and labour standards we expect our suppliers to adhere to. These are aligned to the ILO Core Conventions and UN Global Compact. Links to these documents are provided below:
Human Rights and Anti-Discrimination policy: [link]
Partnering with Suppliers standard: [link]
Diageo has a strong commitment to Human Rights, defined within our stand-alone Human Rights Policy. Our policy is embedded across our operations and very explicitly applies to all operations as noted in the excerpts below:
"This Policy applies to all Diageo employees and employees of subsidiaries and joint ventures where Diageo has a controlling interest. In joint ventures where Diageo does not have overall control, the leaders and managers of those businesses are strongly encouraged to adopt the same or similar standards. If any human rights issues arise in joint ventures we will work actively with the business leaders to address them. We expect our business partners and suppliers to consider this policy and refer our suppliers to our Partnering with Suppliers standard. If there is a difference between the content of this policy and any local law or regulation, the more stringent requirement will apply"
"We expect our employees to demonstrate ownership of our operations and careful oversight of our activities to assure we make a positive impact on human rights. We expect our suppliers and business partners to have similar policies and comply with local laws and regulations."
"We believe a serious commitment to respecting human rights is fundamental to our way of business. We recognize that we are responsible for the impact of our operations on our employees, on workers in our supply chain, on consumers of our products and on the communities in which we operate." Human Rights Policy
In addition to our Human Rights policy, there are a number of other policies and standards that demonstrate our ongoing commitment to continuously embed human rights across our operations – and also lays out similar expectations of our stakeholders:
Code of Business Conduct
"Our Code applies to everyone working for Diageo worldwide, regardless of location, role, or level of seniority… Our Code is underpinned by a number of global policies covering specific areas of our activities… Our global policies cover a number of areas, including: …Human rights" http://www.diageo.com/en-us/csr/Pages/our-code-policies-and-standards.aspx
Partnering with Suppliers Standard
"The Partnering with Suppliers Standard sets out the minimum compliance standards which we expect to be in place in our suppliers, and which we will enforce contractually."
"As a minimum we expect our suppliers to:
- meet all applicable legislation and the ILO core conventions
- pay fair wages in line with the norms for the industry and market and not require anyone to work excessive hours, particularly where this might impact personal health or safety
- treat employees fairly and not discriminate on the grounds of gender, sexual orientation, race, religion, age, caste, union membership, political affiliation, marital status or national origin
- allow employees the freedom to join a union (or collective bargaining group acting for them) or allow them to decline if they choose to
- not ever use forced or bonded labour
- not ever harass, abuse or threaten any employee through physical abuse, discipline, threat of physical abuse, sexual or any other form of intimidation
- not employ anyone full-time under the age of 15, (or higher if stipulated by local labour law)
- protect and promote the special interests of employees under 18 by allowing them access to education, limiting employment during typical resting hours and ensuring no exposure to working conditions that are likely to jeopardise their health & safety or morals…
- maintain a safe working environment and provide access to protective equipment and safety training to mitigate known hazards or potential risks." http://www.diageo.com/Lists/Resources/Attachments/773/PwS_EN_LowRes_v2.3_Oct12.pdf
How are human rights managed within your company?
Diageo’s Human Rights & Anti-discrimination policy applies to all Diageo employees and employees of subsidiaries and joint ventures where Diageo has a controlling interest. It also applies, as far as is reasonably achievable, to our upstream and downstream supply chain through partners, suppliers and third party contractors. In joint ventures where Diageo does not have overall control, the leaders and managers of those businesses are strongly encouraged to adopt the same or similar standards. If any human rights issues arise in joint ventures we will work actively with the business leaders to address them.
The core principles of our policy include; Valuing Diversity, Anti-discrimination, Work-life balance, Releasing potential, Fair reward, Valuing people, Employee engagement, Respect for national sovereignty, Community, Safe working environment.
Our managers are expected to ensure that the individuals who report to them receive the guidance, resources and training they need to enable them to do their jobs in compliance with this policy.
A confidential ‘SpeakUp’ helpline is available to all employees and business partners to report any breaches against this policy.
With regards to our supply chain, Diageo clearly sets out the standards we expect of our suppliers in relation to human rights and labour standards in our Partnering with Suppliers standard – which is available at [link] These are aligned to the International Labour Organisation (ILO) core conventions and UN’s Global Compact. We have developed a comprehensive but flexible four-stage process for identifying, assessing and managing social and ethical risks in our supply chain – more detail can be found by clicking the link above and in the PwS standard.
How are actual and potential human rights impacts identified and assessed?
We have conducted a corporate level assessment and mapped our global policies, processes and procedures against the UNGPs. This work was undertaken with BSR (Business for Social Responsibility - a global nonprofit consultancy) in order to provide external perspective on issues and risks, and provide guidance on established and emerging areas of good practice. Through this, we have been able to assess what is working well and areas of opportunity.
Following the corporate level assessment, we have developed a comprehensive human rights impact assessment (HRIA) - to guide markets through a systematic review of their business to identify and assess potential human rights impacts. Our HRIA looks at every element of our value chain from raw materials sourcing, manufacturing, contractors, operations, sales and marketing to third party operations. We began this process in Kenya, assessing all aspects of the value chain there.
What steps are taken to prevent or manage negative human rights impacts?
Our first assessment in Kenya involved visits to barley and sorghum farms/communities, supplier manufacturing units (glass, labels etc.), retailers and bars selling our products, meetings with employees, union members, operators in our manufacturing plants, manpower providers, contract workers, NGOs we support and other external parties.
We have prioritised key raw material supply chains for more detailed review. Within this, we have assessed supply networks for molasses derived from sugar cane in Central America, working closely with relevant suppliers. In addition we have also begun work to assess agricultural supply networks in Africa, considering on-farm conditions often involving smallholders, where we are also assessing the positive impact that improved farming methodologies bring to farming communities. We are also investigating the potential for risks around issues such as land rights.
Where we come across specific instances of negative human rights impacts, we develop appropriate mitigation programmes, working with suppliers and other agencies as needed to effect necessary improvement or strengthen existing approaches.
Our corporate HRIA and the review in Kenya confirmed that we operate at a strong baseline in terms of management of human rights, with committed leadership and robust awareness and percolation of policies and processes. We will continue with our assessment process, building from the foundation, but cannot afford to be complacent given the breadth of our value chain and the continuing emergence of human rights issues generally.
How is the importance of human rights signaled to business partners?
Codes and policies, including our Human Rights Policy, are communicated widely to employees and to business partners. Our Code of Business Conduct supports this. “Our Code, polices and standards apply to everyone working for Diageo worldwide, regardless of location, role, or level of seniority… Our Code is underpinned by a number of global policies covering specific areas of our activities… Our global policies cover a number of areas, including: …Human rights"
“Each market has its own training plan for our Code, and other key policies (including Human Rights Policy), which they deliver through locally organised, risk-based training. To further embed ownership of this agenda with employees, some of our businesses go beyond basic training with annual engagement events such as the Pathway of Pride programme in Africa, Ethics Day in Asia Pacific, and Compliance Day in Great Britain.”
Our policies very clearly call out our commitment and respect for human rights and our clear expectation from our suppliers and other stakeholders including business partners for the same. Our global policies and standards explicitly state that ‘We do not tolerate discrimination, harassment, bullying or abuse; we comply with wage and hour laws; we respect our employees’ decision to join or not join a trade union; and we do not tolerate forced or compulsory labour. We will not work with anyone, including any supplier, who does not adopt these values. Suppliers who are judged to represent the highest potential risk (on the basis of the three previous stages) are then audited against the standards set out by SEDEX. We reserve the right to undertake unannounced audits where we feel it is necessary. We encourage our suppliers to do likewise for their own suppliers in turn.
Policies are communicated to suppliers through our Partnering with Suppliers Standard.
Our key policies are available on our global intranet – Mosaic and at www.diageo.com
To ensure our policies are accessible and understood by employees, business partners and other stakeholders in the diverse geographic footprint we operate, they have been translated into a number of different local languages.
What training is conducted for staff and business partners?
Diageo provides its employees and management who have direct responsibility for supply chain management, training on human trafficking and slavery, particularly with respect to mitigating risks within the supply chains of products. (Diageo, California Transparency in Supply Chains Act)
For supply sites specifically, we provide Security Awareness Training for Supply Chain Integrity that ensures our employees are instructed on what to look for in the supply chain on human smuggling.
Diageo also provides both live and web-based training for its Procurement staff on its Corporate Citizenship and Suppliers program and its Partnering with Suppliers standard, part of which includes managing the human rights and labour standard risks within the supply chain
Diageo provides both live and web-based training on its Code of Business Conduct, Human Rights Policy and other core company policies. All new employees are required to attend new hire induction where each of our key policies are reviewed.
The annual certificate of compliance (ACC) is designed to confirm that all mid-level and senior managers fulfil their duties with regards to compliance, and have read and understood our Code and key global policies. It requires people managers to confirm that they have had conversations with their direct reports about our Code and key policies.
In addition, each market has a training plan covering our key policies, which is delivered through locally organised, risk-based training. Training to support the delivery of the HRIA will be provided, together with appropriate training to support preventative or mitigation measures.
We are developing a comprehensive training module on the Human rights impact assessment methodology. We will be conducting a number of training sessions for employees to develop the requisite skills to conduct human rights impact assessments (as part of our self-assessment strategy) across our markets.
Our due diligence processes are designed to help our suppliers improve their sustainability performance. While we have our own standards and guidelines, we also work with industry associations like AIM PROGRESS, SEDEX, CDP and SAI Platform. When we can, we help suppliers meet our standards by offering training to build their skills and capabilities.
How does the company track the effectiveness of its actions on human rights?
Our risk management global standard requires all markets and functions to perform two risk assessments at least annually: first, a general assessment of business risk, to consider the operational, financial, and reputational risks of running the local business; second, a compliance risk assessment, to consider risks concerning human rights, bribery and corruption, anti-money laundering, and all other relevant laws and regulations, as well as our own Code, policies and standards – and to ensure that mitigation plans for the most significant risks have been established. Markets are then responsible for reviewing their risk assessments and progress against the mitigation plans at their local risk management committee meetings. http://www.diageo.com/en-us/csr/governanceandethics/Pages/our-risk-and-compliance-programme.aspx
Suppliers who are judged to represent the highest potential risk (on the basis of the three previous stages) are then audited against the standards set out by SEDEX. We reserve the right to undertake unannounced audits where we feel it is necessary. http://www.diageo.com/Lists/Resources/Attachments/773/PwS_EN_LowRes_v2.3_Oct12.pdf
Where remedial action programmes are instigated after an HRIA, an assessment of the impact in tackling the human rights issues will be part of the process. For supplier activity, confirmation of effective remedial action is required.
In addition, our human rights impact assessment toolkit is designed to cover a comprehensive review of all our operations. It looks at every element of our value chain from raw materials sourcing, manufacturing, contractors, operations, sales and marketing to third party operations. The findings of the impact assessments are then shared within our governance structure and progress reviewed on an ongoing basis. This provides a clear mechanism through which we can ensure that HRIA’s are executed with sufficient focus and attention.
What is the company’s approach to the engagement of stakeholders (including workers, and local communities impacted by the company’s activities), on human rights issues?
To date our engagement has been focused on the promotion of our Human Rights and Anti-discrimination policy across our business globally, and also the Partnering with Suppliers standard with our suppliers – with communication, training and assessment programmes in place against both of these policies. We also have led specific engagement programmes internally with workers to support internal networks that promote diversity such as women (Spirited Women) or Gay, Lesbian, Bisexual and Transexual (GLBT) groups.
We recognise we need to expand this work further, which was started with our 2020 commitment and follow with steps to identify and assess our human rights impacts.
By listening to everyone who engages with Diageo, we can ensure that ours is a business that understands stakeholders' expectations and meets them. We define as stakeholders everyone who is affected by our business, and everyone who affects it. Our stakeholders range from employees to investors to corporate partners, and from consumers to communities, farmers, and governments.
We engage stakeholders on two levels, local and global. At a local level, employees across Diageo's business engage their colleagues, local governments, customers, media, and community groups on issues of immediate concern to them. At a global level, we engage investors, customers, suppliers, and multinational organisations such as United Nations agencies or NGOs.
Our website sets out each stakeholder group and gives examples of how we currently engage them on all issues, including sustainability and responsibility questions which include human rights. http://www.diageo.com/en-us/csr/sustainability/Pages/stakeholder-engagement.aspx
For example, we engage with our own teams in a variety of ways including
- Values Survey
- Team meetings
- Employee intranet/newsletters
Local community organisations and NGOs are reached, for example, via:
- One-to-one meetings or conversations
- Multi-stakeholders forums
- Annual review (Diageo Foundation)
- Ongoing partnerships
While farmers, at the extent of our value chain, are reached by:
- One-to-one meetings or conversations
- Open days
- Field and factory visits
- Workshops with value chain partners
- Connecting farmers with finance and agri-business partners
- Radio and television programmes (Africa)"
Our supply chains create value directly to local economies, and provide one of the most important ways in which we support and build capability among the communities in which we work. They are also an important part of our contribution to driving higher standards in sustainability and business ethics, bringing shared value to individuals, businesses and society.
A secure, stable supply chain is also critical to the long term performance of our business. We have a clear interest in mitigating risk, and in supporting suppliers in strengthening their sustainability in ways that benefit them as well as us. We source goods and services from a wide variety of businesses around the world, and our procurement systems depend on relationships with suppliers that are local, regional, and global. We expect all our suppliers to follow our Partnering with Suppliers Standard, which sets out our minimum social, ethical and environmental compliance standards, and we invite them to be our partners more widely in providing responsibly-sourced materials and services which have a positive impact on communities and the environment.
Priority human rights issues: What are some of the priority human rights issues for your company?
- Health (including workplace health & safety, prevention of pollution)
- Workplace diversity / non-discrimination
- Forced labour and human trafficking (including in supply chains)
- Sexual harassment
- Freedom of association and trade union rights
- Access to water
- Conflict minerals
- Transparency in payments to governments / responsible tax practices
- Product misuse
- Children (including child labour)
- Health (including workplace health & safety, prevention of pollution)
- Workplace diversity / non-discrimination
- Forced labour and human trafficking (including in supply chains)
- Sexual harassment
- Freedom of association and trade union rights
- Access to water
- Transparency in payments to governments / responsible tax practices
- Product misuse
- Children (including child labour)
- Racial and ethnic minorities
Access to water
Diageo has a comprehensive Water Blueprint that supports access to water through activity in key areas:
- Our own use of water where we have targeted a number of measures including a 50% improvement in water efficiency within our operations and replenishment of water within water stressed areas;
- Provision of water and WASH for local communities. Our Water of Life programme has already provided safe water for more than 10 million people in Africa;
- Equip our suppliers with tools to protect water resources in the most water stressed locations.
- Advocacy and contributing locally and globally, to collaborative efforts to address the water crisis including work on landscape and catchment area management solutions to support water.
Diageo celebrates diversity and strives to create an inclusive culture that provides all individuals the freedom to succeed, irrespective of their gender, race, religion, disability, age or sexual orientation.
With 46% of our Executive being women, we are proud of the progress we have made in developing female leaders, but recognise there is more to do. We are also committed to building local talent, with our general managers representing over 25 different nationalities.
Our recent focus has been on broadening and deepening our approach to diversity and inclusion. Each market has developed a detailed multi-year plan to achieve stretching goals, and their performance is regularly tracked and benchmarked. Examples of market activities undertaken as a result include leadership sessions on unconscious bias in Europe, North America and India, a ‘Women in Supply’ leadership programme delivered to over 390 participants globally, and our commitment to ensuring that 50% of hires to our global graduate programme are women.
We have a target for 2020 to build diversity, with 30% of leadership positions held by women and measures implemented to help female employees attain and develop in leadership roles. Currently 28% of leadership roles are held by women. At the most senior level, 42% of our Board members and 46% of our Executive Committee members are women, a position recognised as leading by the 2016 report from Cranfield University (http://www.cranfield.ac.uk/SOM/Research-Centres/Global-Centre-for-Gender-and-Leadership/Female-FTSE-Index-and-Report)
We provide opportunities for all people, including those with disabilities, and foster a culture that allows for a variety of lifestyles. Our training and education programme includes retraining, if needed, for people who have become disabled. Where possible we encourage a flexible approach to working, and emphasise the importance of treating individuals justly and in a non-discriminatory manner throughout the employment relationship. This includes recruitment, compensation, training, promotion, and transfers.
Women’s empowerment is one of our strategic priorities at Diageo with women represented across our entire value chain, from employees, to farmers and suppliers, customers as well as consumers and communities. Ensuring a diverse and inclusive talent base is essential to actively shape the future of Diageo, our partners, and the industry in which we operate.
We understand that when women have access to education and learning, there is a powerful ripple effect that positively impacts society around them. That is the reason why Diageo’s ‘Plan W: Empowering Women through Learning’ community investment programme was launched in 2012.
Plan W is part of Diageo’s new 2020 Sustainability and Responsibility targets which aims to build thriving communities. Through Plan W, our goal is to empower across all socio-economic profiles, giving them opportunities to learn and develop skills. In March 2013, Diageo became the first beverage alcohol company to sign the UN Women’s Empowerment Principles globally. Plan W contributes to UN Global Goal 5: ‘Gender Equality’. To date the programme has empowered 260,000 women.
Diageo is committed to workplace diversity for our business, as well as growing the talents, skills and capability of the women who work within our wider value chain. Our four key areas of focus for Plan W include; Our Company: ensuring a diverse and equitable workforce; Our Industry: delivering targeted skills training to women in hospitality to improve their knowledge and job prospects; Our Communities: working with partners, to train women in marginalised communities, helping them to obtain jobs and start businesses; Our Consumers: raising awareness among consumers.
Diageo was one of the founding members of the Beer Selling Industry Cambodia (BSIC) which with leadership from CARE International, implemented a code of conduct to improve the health and working conditions of beer promoters in Cambodia, who faced regular sexual harassment and misconduct or exploitation. The code covers 7 key standards around: employment status; organization of work; uniform; transport; training and information; harassment; alcohol information, as well as regular independent research to evaluate performance against commitments and guide improvements. This has demonstrated increased awareness of workers’ benefits and rights, a drop in sexual harassment and an increase in the number of beer promoters addressing incidents of sexual harassment directly, indicating improved working conditions for beer promoters covered by the BSIC’s code of conduct, compared with those who are not.
The report is titled Project “BSIC Monitor” Research Report Wave 2 by Indochina Research. This research is commissioned by BSIC regularly (anecdotally every 12-18 months)
Actions on workplace diversity / non-discrimination
To take workplace diversity / non discrimination as an example, our work on diversity can be evidenced by the fact that women now make up 28% of our senior leaders across the company, 43% of our Executive Committee and 44% of our Board. Further employee profile information by gender is included in the Our people section of the Annual Report, page 46. Additional we also have led specific engagement programmes internally with workers to support internal networks that promote diversity such as women (Spirited Women) or Gay, Lesbian, Bisexual and Transexual (GLBT) groups.
Diageo’s commitment to diversity extends to our community investment programme Plan W. Launched in Asia in December 2012, Plan W aims to empower women through learning, focusing on our business, our industry, our communities and our consumers. See page 45 of the Annual Report 2014, or for a case study example see: [link]
Diageo’s 2020 community targets reflect this global priority. Launched in December 2014, our community programmes enable those who live and work in our communities, particularly women, to have the skills and resources to build a better future for themselves. We will evaluate and report on the tangible impacts of our programmes. See more here: [link]
Actions on 'other' issues
Another example is our work on Responsible Sourcing. Through our Responsible Sourcing programme we are taking steps to understand and address any potential human rights impacts. We have set clear standards for our suppliers in relation to human rights, detailed in our Partnering with Suppliers standard and have an active programme in place to assess and mitigate any risks against these; which include communication, training, assessments and corrective action.
How are human rights commitments and information about how the company addresses its human rights impacts communicated, internally and externally?
There are two core channels for communicating; firstly, we have our codes, polices and standards – as reference above, and in which we run internal training sessions.
Secondly, we report on our commitments and our progress against these externally. Examples of this include our Annual Report, which is now an integrated report including both financial and sustainability reporting, and also the DJSI –where we are one of only 15 companies (and the only beverage company) which has been included in this leading index every year since its launch in 1999.
Our 2015 annual report confirmed our commitment to human rights in a variety of areas, including a specific commitment to the UN Guiding Principles on Human Rights. These were also already published on our website. Our forthcoming 2016 report (August 2016) will expand upon this, outlining the approach we are taking in terms of assessing human rights risks across our global operations, and the progressive rollout of activity to review and mitigate these in detail within our different markets.
In addition, we have had articles published on websites illustrating our commitment to human rights and examples of work we do in empowering communities. We also share these examples with our employees via our intranet : Mosaic and yammer
In addition we celebrated and created awareness of International Human rights day, 10 December via a series of online articles, blogs, and postings on our intranet. Our Group Human Resource Director published her article and blog reminding all our employees of our commitment to ensuring we upkeep and respect Human rights across our operations. We conducted a lunch and learn session at our global headquarters inviting all London based employees for a session on Human rights and what it means by Martin Hatfull, former British diplomat, Minister to Japan, 2003–08, and Ambassador to Indonesia, 2008–11
Internal communication is undertaken through our established governance process on human rights and through broader internal communication channels including our intranet and code of conduct.
In addition we run an annual month long #proudofwhatwedo campaign across all our markets where we collect and share stories and best practices from across our business, on a global platform. We encourage, recognize and appreciate our employee’s contributions to promoting human rights, sustainability, positive impact on environment etc.
We increase our employee engagement by leveraging the sense of pride and passion employees feel from working for a company that champions and supports its communities
What provisions does your company have in place to ensure that grievances from workers and affected communities or individuals are heard, and can you provide examples of remedies provided?
Employees and suppliers have access to our confidential whistleblowing hotline, SpeakUp, to file grievances. Read more about our approach to managing the issues collected through this and other grievance mechanisms in the Governance and ethics section of the Annual Report, page 48.
There were 831 suspected breaches of our Code of Business Conduct reported this year, of which 440 were subsequently substantiated. All identified breaches are taken very seriously and investigated by experienced investigators who handle every breach reported to us that requires action. For more details see the Governance and ethics section of the Annual Report, page 48. Omissions: we do not disclose how each individual grievance is resolved. Our confidential whistleblowing service, SpeakUp, is also shared with our suppliers.
This year Diageo received four calls relating to suppliers and vendors through SpeakUp, though none were substantiated breaches.
There are multiple ways and channels promoted amongst employees, suppliers and other stakeholders in relation to raising grievances such as
- Direct line manager
- Manager’s manager
- Any senior manager at Diageo
- Local Human Resource team
- Local Control, Compliance and Ethics (CC&E) manager
- Diageo internal lawyer
- Global Risk and Compliance team ([email protected])
- Speak up
We strive to have a culture in which employees feel comfortable raising concerns about potential breaches of our Code or policies. We expect anyone who comes across a breach to report it immediately, either through our confidential whistleblowing helpline SpeakUp, to their manager, or to a member of the global risk and compliance, human resources or legal teams. SpeakUp is also available to suppliers and other business partners.
OUR CONFIDENTIAL SPEAKUP SERVICE
SpeakUp is a confidential service for raising concerns about our business conduct and compliance and ethics matters. This can be in relation to a breach of our code, policies or standards. SpeakUp is promoted as a medium of reporting grievances of any kind by any employee/ supplier when they are not comfortable speaking to someone inside the company. Complete anonymity is assured. SpeakUp is managed by a company independent of Diageo, and is available to employees, suppliers and other business partners in their language of choice.
We expect our business partners to raise any potential or actual breach of our Code [including Human Rights policy] directly with their contact in Diageo, a Diageo internal lawyer or confidentially via SpeakUp. http://www.diageo.com/Lists/Resources/Attachments/500/A4_Code_of_Conduct_AWv3_Lowres.pdf
Which external and collaborative human rights initiatives does your company participate in, and what is the nature of your involvement?
Examples of these include multi-stakeholder initiatives such as the Fair Labor Association, Global Network Initiative, Voluntary Principles on Security & Human Rights; industry initiatives such as the Electronic Industry Citizenship Coalition; UN Global Compact; other international, regional or local initiatives.
We are signatories to both the UN Global Compact and the UN Women’s Empowerment Principles We are also member of AIM-PROGRESS, a forum of 40 leading consumer goods companies which promotes responsible sourcing practices and sustainable supply chains. We play an active role within AIM-PROGRESS, collaborating with peers across an number of activities, for example supplier Responsible Sourcing training events we co-hosted with Coca-Cola in Kenya and Nigeria in 2014. A Diageo representative also sits on the AIM-PROGRESS Leadership Team.
Diageo actively leads and participates in a number of multi stakeholder initiatives. Illustrating a few examples below:
Diageo is a signatory to the UN Global Compact, a strategic policy initiative for businesses that are committed to aligning their operations and strategies with the principles in the areas of human rights, labour, environment, and anti-corruption. We work with UNGC programmes and report performance to them.
Diageo is also a signatory to the UN Women’s Empowerment Principles and has committed to acting in accordance with the UN Guiding Principles on Business and Human Rights. We fully endorse and support the principles enshrined in the International Bill of Human Rights and the International Labour Organisation’s (ILO) Declaration on Fundamental Principles and Rights at Work.
Our Plan W programme on women’s empowerment, collaborates with almost 40 NGOs in India alone, along with the British Council there. We work with other NGOs on a similar basis in other countries around the world to support women’s empowerment. http://www.diageo.com/en-row/ourbrands/infocus/Pages/PlanWEmpoweringWomenthroughLearning.aspx
A further example of our work with CARE International on the Beer Selling Industry Cambodia (BSIC) to implement a code of conduct to improve the health and working conditions of beer promoters in Cambodia, who faced regular sexual harassment and misconduct or exploitation.
In addition, our due diligence processes are designed to help our suppliers improve their sustainability performance. While we have our own standards and guidelines, we also work with industry associations like AIM PROGRESS, SEDEX, CDP and SAI Platform.
Diageo is also a member of ‘AIM-Progress’, a collaboration between major consumer goods companies that is working towards harmonising supply chain activities in this area and minimising the impact on suppliers as a result and to reduce duplication and supplier ‘audit fatigue’.
Diageo has applied increased focus on leading industry efforts in tackling alcohol misuse and promoting a positive role for alcohol in society. In 2013 it became a signatory of the global Beer, Wine and Spirits Producers’ Commitments to reduce harmful drinking and over the last year increased the number of programmes it supports to over 370 across 53 countries (up from just over 300 across 49 countries).
We have developed a partnership with WaterAid and other local NGOs in support of developing access to water and WASH. Over the past 8 years, this has enabled more than 10million people to have access to safe water in Africa, while we have similar programmes in India and other parts of Asia.
Which are the key one, two or three elements of your approach to human rights that been developed or amended since June 2011? Please indicate if these actions were in response to the UN Guiding Principles.
Since 2011 we have signed up to the UN Women’s Empowerment Principles, committed to open and transparent reporting on Human Rights against the relevant GRI indicators, and set a target to comply with the UN Guiding Principles.
We are currently reviewing our Human rights policy and COBC, and will continue the development of programmes to deliver our 2020 human rights targets.
We have made significant strides in our Human Rights journey since June 2011. Briefly summarizing some of our highlights:
Following our commitment to act in accordance with the UN guiding principles (UNGPs) on business and human rights by 2020, we partnered with BSR (Business for social responsibility, a global nonprofit consultancy) to formulate and articulate our Human Rights vision and strategy for proactive human rights management. This also provided external perspective on issues and risks, and provide guidance on established and emerging areas of good practice. We have since conducted a corporate level assessment and mapped our global policies and processes against the UNGPs. Through this, we identified what is working well and areas of opportunity.
Following the corporate level assessment, we developed a comprehensive human rights impact assessment (HRIA) - to guide markets through a systematic review of their business to identify and assess potential human rights impacts. Our HRIA looks at every element of our value chain from raw materials sourcing, manufacturing, contractors, operations, sales and marketing to third party operations.
We have conducted our first assessment in Kenya which involved visits to barley and sorghum farms/communities, supplier manufacturing units (glass, labels etc.), retailers and bars selling our products, meetings with a number of employees, union members, workers on the factory lines, manpower providers, contract workers, NGOs we support and other external parties.
Overall our HRIA confirmed that our work in Kenya gave us a strong foundation for human rights within our activities, with competent leadership, robust awareness and percolation of policies and processes, and best in class water management. It also highlighted our work to empower communities, especially through our relationships with barley and sorghum farmers.
We have a clear plan of action and have developed our due diligence approach for proactive human rights management across our operations.
In addition, we actively contribute to the wider communities via our long-term, actively-managed programmes that help serve critical local needs, such as access to clean water and developing skills. In recent years, we have made a meaningful assessment of the potential impact of our entire value chain on our local communities, and we are increasingly focusing our community programmes on empowering stakeholders.
Launched in 2012, Plan W is part of Diageo’s 2020 Sustainability & Responsibility targets which aims to build thriving communities and make a positive contribution to society. Through Plan W, our goal is to empower two million women across all socio-economic profiles by 2017 giving them opportunities to learn and develop skills. To date Plan W has impacted the lives of over 260,000 women, through new skills, opportunities and resources. The initiatives have created a positive ripple effect, indirectly benefiting over 1 million family and community members connected to the women who have been empowered across 15 countries.
To drive improvement in efficiency across water, carbon emissions, waste management, we set ourselves a series of challenging targets. We subsequently added commitments covering our packaging. These targets were refreshed and extended in 2015 as part of the evolution of our overall strategy. They also reflect our commitment to reduce the environmental impact of our supply chain, beyond our own operations. We are focusing on these goals through rigorous programmes in our supply operations, in procurement, with our suppliers, and by engaging employees through our GREENIQ programme. GREENIQ enlists employees as environmental champions for their sites and then supports them through online networking, a news portal and an awards programme
The Diageo Water Blueprint defines our strategic approach to water stewardship. It is an integrated approach based on four core areas where we will increase our efforts - in the sourcing of raw materials, in our own operations, within the communities in which we operate, and through local and global advocacy for best practice in water stewardship
SAVING WATER WHERE IT IS NEEDED MOST – CEARÁ, BRAZIL
Illustrating an example of some of the work we have embarked on in water usage and efficiency
In the Brazilian state of Ceará, water is precious. The region has been subject to a serious drought, and businesses need to do what they can to help save water. Our Paraipaba distillery in Ceará has invested in making its use of water more efficient – and has reduced the total amount of water it withdraws by 1.7 million cubic metres in 2015. Where it previously took 85 litres of water to produce a litre of our
products, it now takes just 13. The savings are equivalent to the water needs of 10,000 people, making a significant difference in an area of severe water scarcity. As well as making changes to the way in which we grow the sugar cane used at our distillery, and the way that it is washed and processed, we have invested in new measures such as an indirect heating system which returns distillation condensate to our boilers, and closed cooling water circuits.
What are some of the obstacles and challenges that your company encounters in implementing its human rights commitments?
We face the challenges of being a global company spanning across numerous markets. As a result, we have complex supply chains an increasing responsibility in our supply chains to set up the next level of assessment.
Managing the human rights risk further down the supply chain is a challenge. Merchandising materials is one of the categories we have identified as high risk because they are often made in higher risk countries and we often buy through intermediaries and therefore may not know where they were produced. We continue to work with our key merchandising suppliers to develop assurance further down the supply chain.