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LBG Assurance Statement – Diageo

Diageo is an active member of the LBG (London Benchmarking Group). The LBG model helps businesses to improve the management, measurement and reporting of their corporate community involvement programmes. It moves beyond charitable donations to include the full range of contributions (in time, in kind and in cash) made to community causes, and assesses the actual results for the community and for the business. (See www.lbg‑online.net for more information.)

As managers of the Group, we have worked with Diageo to ensure that it understands the LBG model and has applied its principles to the measurement of community involvement programmes during the year to 30 June 2013. Having conducted an assessment, we are satisfied that this has been achieved. Our work has not extended to an independent audit of the data.

Two developments in Diageo’s data merited attention this year.

Firstly, Diageo has included data on major cause-related marketing activity in Latin American countries aiming to establish new forms of volunteering. While we are satisfied that only those elements relating directly to the delivery of voluntary activity have been reported, Diageo and its partner should ensure that the amount of ongoing activity and the growth in participation are measured, to establish that the level of volunteering achieved is proportionate to the investment made.

Secondly, a significant increase in donations of Diageo product has been reported. In light of the sensitivities around alcohol, we are encouraged that Diageo has only included those donations that support fund-raising activities of community organisations.

Finally, we reiterate a previous recommendation that Diageo should more systematically quantify the achievements of its activities (outputs and impacts) in its application of the LBG model so that a clear assessment of the overall impact of its investment into the community can be achieved.

Corporate Citizenship
www.corporate‑citizenship.co.uk
July 2013