CORPORATE RESPONSIBILITY AT BACARDI LIMITED

Stakeholders

We recognize the need to connect with our stakeholders – those who affect or are affected by our business. Listening to stakeholders helps prioritize the most important Corporate Responsibility issues for us to address.

Stakeholder engagement has been central to our Corporate Responsibility strategy and to the approach we take within each of our five pillars of activity. Stakeholder feedback informs our assessment of the most material Corporate Responsibility issues and helps us determine which topics to include in this report.

 

Stakeholder Research / Engaging Employees

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Stakeholders Group

We have identified a wide range of stakeholders important to Bacardi:

GROUPSDESCRIPTIONPRIORETIZED AREAS OF INTEREST
icon_martiniConsumersIdentifying and understanding consumer trends, including attitudes to alcohol, is essential to ensure our responsibility messages resonate with consumers.
  • Responsible drinking
  • Responsible marketing
  • Sustainable agriculture and sourcing
  • Sustainable packaging
icon_bottlesCustomersOur customers expect us to manage Corporate Responsibility issues, just as we expect the same from our suppliers. We seek to work together on areas of mutual concern.
  • Responsible drinking
  • Responsible supply chain
  • Sustainable agriculture and sourcing
  • Product responsibility
icon_peopleEmployeesWe keep our people updated on important issues about Bacardi with CEO webcasts, management roadshows and our global ONE Bacardi intranet.
  • Employer responsibility
  • Product responsibility
  • Responsible drinking
  • Responsible marketing
icon_ribbonIndustrial AssociationsSharing knowledge and experiences with industry partners promotes a collective response on industry-wide matters, such as responsible marketing and responsible drinking.
  • Responsible marketing
  • Responsible drinking
  • Managing direct environmental impacts
  • Sustainable agriculture and sourcing
icon_localLocal CommunitiesBacardi always has seen itself as part of the communities where we operate. We engage with our local communities to understand and respond to their concerns.
  • Responsible drinking
  • Responsible marketing
  • Managing direct environmental impacts
  • Sustainable agriculture and sourcing
icon_globusNongovernmental Organizations (NGOs)We exchange views with NGOs on alcohol issues at various forums, including the World Health Organization, the EU Alcohol and Health Forum and a range of trade associations.
  • Responsible marketing
  • Responsible drinking
  • Good governance
  • Supporting local communities
icon_magnificationRegulatorsWe engage with regulators through trade bodies, one-to-one meetings and written responses to policy consultation documents.
  • Responsible marketing
  • Good governance
  • Responsible supply chain
  • Responsible drinking
icon_chartShareholdersAs Corporate Responsibility becomes more important to business, our shareholders are increasingly interested in how we are planning for a sustainable future, as well as protecting our current reputation.
  • Good governance
  • Product responsibility
  • Responsible marketing
  • Being a responsible employer
icon_suppliersSuppliersWe engage suppliers on our Responsible Sourcing standards both through our regular procurement processes and our Responsible Sourcing program.
  • Responsible drinking
  • Product responsibility
  • Responsible marketing
  • Sustainable agriculture and sourcing

Stakeholder Research

We undertook independently conducted stakeholder research in fiscal 2012 as part of a more structured approach to stakeholder engagement. The results of this research, which are summarized below, remain applicable in fiscal 2014.

Stakeholder Research
The research involved structured, one-on-one interviews with a global range of individuals from each of our main stakeholder groups, except for shareholders. The interviews focused on a number of areas, including:

  • What Corporate Responsibility means for the spirits sector
  • How stakeholders view Bacardi in relation to Corporate Responsibility
  • What stakeholders think are the most important responsibilities for the sector

Key Results:
Responsibility in the Spirits Sector The results showed larger companies in the spirits sector were generally considered to be responsible. There was a sense, however, that the industry will face greater expectations and scrutiny of its behavior with ongoing political, NGO and public debate and with the growing awareness and expectation in developing markets.

Key Areas of Interest for Stakeholders:
Although the main priorities and concerns of stakeholders differed, based on their interests or expertise - there was broad consensus on key Corporate Responsibility issues for the spirits sector, as shown below.

Bacardi and Responsibility
Stakeholders generally considered Bacardi in a positive light. With regard to our approach to Corporate Responsibility, the results were mixed. While many stakeholders felt that Bacardi strived to be a responsible business, others were unsure, due to their limited awareness of our Corporate Responsibility activity. This was particularly the case with new stakeholders, who were less familiar with the Bacardi family of brands and are more likely to link the Company solely with our BACARDÍ rum brand.

Suggested areas for improvement in our approach to, and communication of, Corporate Responsibility included:

  • Practical solutions for responsible drinking, not just education
  • Further work on responsible consumption with those who sell and serve our brands
  • Measuring and managing social and environmental supply chain issues
  • Improving the environmental credentials of our packaging

Although the main priorities and concerns of stakeholders differed, based on their interests or expertise - there was broad consensus on key Corporate Responsibility issues for the spirits sector, as shown below.

It was also felt that while responsible drinking and responsible marketing were the highest priority issues and are most clearly linked with responsibility in the sector, other issues are becoming more important, such as managing direct environmental impacts.

Issue Prioritization – Global, All Stakeholders (Weighted Scores)

RESPONSIBLE DRINKING
121
RESPONSIBLE MARKETING
106
PRODUCT RESPONSIBILITY
59
MANAGING DIRECT ENVIRONMENTAL IMPACTS
58
SUSTAINABLE AGRICULTURE AND SOURCING
56
RESPONSIBLE SUPPLY CHAIN
43
GOOD GOVERNANCE
43
SUSTAINABLE PACKAGING
40
BEING A RESPONSIBLE EMPLOYER
37
SUPPORTING LOCAL COMMUNITIES
32

The score for each issue is derived from the top five issues identified by each stakeholder weighted by their level of priority.

Working with the Results
We used the stakeholder research to inform our biannual, materiality assessment. The assessment prioritized key Corporate Responsibility issues for Bacardi by combining the level of priority given by stakeholders with the current or potential impact of the issues on our business. Find out more about our materiality process.

Engaging Employees
During fiscal 2012, we completed our first-ever Global Employee Engagement Survey. Since then, we have set up Action Teams to address challenges and gaps identified in the survey. Read more on the follow-up to the survey in the People Section of this report.