Growing business the right way in fast growth markets
Case study 21 JUN 2013
As we expand around the world we want to embed our principles in our new businesses. When choosing new partners we seriously consider their compliance track record, and we work with new joint ventures or acquisitions where necessary to strengthen their controls and compliance environment to be consistent with ours.
Implementing our compliance infrastructure within newly acquired businesses in the first year of operation is critical. So when we acquired Ypióca, the Brazilian cachaça business, we rolled out our Code of Business Conduct training to more than 600 employees, set up a risk management committee, and introduced internal controls to ensure that critical risks to the business were addressed – all within the first year.
As Renato Gonzalez, Managing Director of Ypióca, said: 'As well as creating value, Diageo places equal importance on managing risks and creating a culture where integrity is lived every day within our organisation.'
However, the process also continues beyond the first year. In Turkey and Ethiopia, for example, we continue to embed our compliance programme in our subsidiaries Mey Ïçki and Meta Abo, respectively, which we acquired two years ago.
In Turkey our network of compliance and ethics ambassadors – employees embedded within the business – champion the programme, answer queries, and ensure there is an accessible contact to raise potential concerns. Mey Ïçki employees also completed our Values Survey for the first time.
In Ethiopia this year we rolled out Pathway of Pride, Diageo's compliance engagement programme in Africa, while our teams in London and Nairobi continued to train local employees in compliance.