This document discusses Diageo's approach to reputation management and key drivers of success. It outlines Diageo's 3 key drivers as strategy, leadership, and accountability. It also notes that societal trust in business is low and declining, while regulatory frameworks and consumer/customer priorities around sustainability are increasing. The document advocates developing a robust reputation strategy and increasing leadership reputation capability, accountability, and engagement to create the most trusted and respected consumer company.

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
THE WORLD ’S LEADING
PREMIUM DRINKS BUSINESS
Selling the world’s best known brands in
180 markets
WORLD CLASS MARKETING

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
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
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
Business as Soap Opera
…loss of trust is the new media narrative

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
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
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

10. 10
- REPUTATION STRATEGY

11. Our Ambition:
To create the best performing, most trusted
and respected consumer company in the world
11

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
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

14. 14
- REPUTATION FUTURE TRENDS

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. 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