Many f our historic brands such as Johnnie Walker and Guinness were built on the same corporate citizenship that we hold today. We agree to the fact that we cannot change the world on our own. With our participation and continuous support towards the UN Global Compact, we can learn from others and show leadership. Though, here at Adagio Pl, we recognize that there are still many changes and improvements that need to be made among us and also among our supply chains. This submission hopes to continue our commitment to the UN Global Compact policies by proposing recommendations based on our experiences and mistakes to the local network.
Our local network region chosen will be India. The recommendations are based on two principles of the UN Global Compact. The principles are 1) Principle 2: "Businesses should make sure they are not complicit in human rights abuses. " (The Ten Principles/ Principle 2 2012). 2) Principle 8: "Businesses should undertake initiatives to promote greater environmental responsibility' (The Ten Principles/ Principle 8 2012). The recommendations are:- Encourage suppliers to Join the Suppliers Ethical Data Exchange (Sexed). Encourage other corporations to harness employee's power. Recommendation 1
Our experience in developing countries has shown how complicity in human right abuses can arise when negligence occurred in the supply chain. We learned from our mistakes and come up with the following recommendation to prevent such thing from happening again in India. We Join the Suppliers Ethical Data Exchange (Sexed) (Adagio 2007). Through Sexed, suppliers will post a self-assessment of their practices and products. These can be accessed by any of their customers. At present we count 300 of our own suppliers in Sexed. The assessment of each supplier is then closely checked against the Ethical Trading Initiative standards of human rights.
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We encourage all suppliers of Adagio Pl to Join the Sexed. We also Join a group of food and drink manufacturers who have strong belief on the fact that their supply chains should operate in the highest standards towards human rights. We are currently working with suppliers assessed as non-compliant and try to make them improve. Incase there is no improvement from our supplier; we retain the possibility of seeking alternative sources of supply. This year, we stopped our business with one of our supplier in Asia because he was not willing to report his performance.
Benefits and Implications Consumers: They are given information about the product that they will be using directly from our supplier. Moreover they will know whether or not the supplier is compliant with current human right policies. Suppliers: Getting involved in Sexed will definitely capture the interest of other companies in the product they made. Shareholders: By avoiding human rights controversies, the company will be protected against legislative and financial repercussion and as a result the company's profit will not be affected.
Recommendation 2 Since we're been creating our 201 5 targets, we have been working hard to minimize our environmental impact. Targeting the obvious things can be straightforward. But to able to address our other impacts, we needed the knowledge and ideas of the people on the ground in our daily operations. We realized that the employee's involvement could be the missing link to achieve our environmental targets. We come up with the Greening as recommendation (Adagio Sustainability & Responsibility Report 2011). Greening is the codename for the strategy implemented to encourage employees to act in an environmental friendly way.
The employees from different site will form teams known as the "GREEN TEAM". Teams will compete to win Olympic- Tyler medals for completing environmental initiatives. These ranges from bronze medal projects to gold medal achievements. Winning sites will be chosen across the whole world and each winner will be awarded EYE,OHO to invest in the new environmental friendly project either on site or locally. Also depending on the success of the program, one idea is to launch a new platinum category to reward gold medal sites that will help another facility start a green team.
Our business is about celebration and we try to bring that into everything we do. And also the reason why Greening will work is we tap our people's sense of community and also their nominative spirit. Benefits and Implications Employees: Capture the interests of 20,000 people working on all level of our business in 80 sites across 40 countries and also provide a platform for the employees to share their idea. Consumers: This will create an impact in the mind of our consumers. People are starting to care for their future generation.
They want to deal with firms who are environmentally responsible. Greening will definitely create something positive for our company. Environment: The purpose of Greening is the impact it has on the environment whilst the main purpose of the whole program. The award winning project will be implemented throughout all sites in the world. We are expecting achievements like cutting amount of water used by 60% or reducing amount of carbon dioxide emission by 50% on our site. Greening will definitely be beneficial for the environment.
Challenges The implementation of the proposed recommendations will be a challenging task. The problem with the first recommendation is that withdrawing from a non- compliant supplier will only displace the problem rather than solving it. Our action could affect the supplier's employees and owners. For small community, the loss in business of the supplier could have big economic implications. Our objective is to balance those risks and help the supplier to improve instead. The challenge faced due to the second recommendation is not all employees will be willing to take part in the program.
Creating awareness among the employees is also of great concern for A success story We at Adagio Pl have responsibility towards our stakeholders and the environment. We continue to show our support to the principles of the UN Global Compact. We believe that the proposed recommendation could be used as a guideline by our local network and other corporation to fulfill their social contract towards their stakeholders. By creating innovative and smart CARS approaches, our business and our society will benefit hence continuing our success story.
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