CORPORATE RESPONSIBILITY: BETTER BUSINESS OR A MORAL MUST
Another big feature of this year’s NABCA conference was the Social Responsibility panel headed by Alain Barbet (president and chief of Pernod USA), John Esposito president and chief of Bacardi USA) and moderated by Susan Molinari, chairwoman of the Century Council. Responsibility is such a huge issue in our industry and each speaker exemplified unique and important approaches to getting the message across.
In her opening comments, Susan told listeners that corporate responsibility is not only the right thing to do, but it helps create a more profitable business.
“It’s [social responsibility] good business,” she said. "The new generation of consumers wants to do good. What they want is to change the world. They want to make sure their purchases help the world.”
That feel good image applies to employees as well, she said. “People want to work in a company that’s making a difference.”
RESPONSIBILITY IS NOT A CATCH PHRASE. The first speaker to take the stage was Pernod’s Alain Barbet. His response to Susan’s comments was this: “I’m not sure that corporate responsibility to better business is the right benchmark.”
“Responsibility should not be a catch phrase. It should not be a way for us in the industry to look good. In my view responsibility is a state of mind,” he continued.
“It’s our moral obligation to make responsibility the fabric of our lives every minute of every day.”
He informed the audience that Pernod employees are required to alert the company if they receive a DWI or DUI, and that all employees’ driving records are monitored regularly.
Also, Pernod is currently in the final stages of developing a responsibility campaign.
“We have taken the high road in an industry that sometimes turns their heads to risks,” said Alain. “Responsibility isn’t about good business or about business at all. It’s the fabric of who we are as individuals, as human beings.”
INDUSTRY UNDER ATTACK. So while Alain argued that responsibility should be viewed as an avenue to better business, Bacardi’s John Esposito took an opposing view.
“Is corporate responsibility good business? Well I think it is, and if the world was a perfect place than Alain’s outlook would work. But the reality is the world is not perfect. There are special interest groups targeting this industry. My comments today will address how we as an industry need to respond.”
He told listeners to think back at what happened to the tobacco and fast food industries, for example, after regulators began targeting them. “I wonder who they’re coming after next?” he asked.
John’s solution? Self-regulation, he said, is the best way to avoid negative publicity, but it must come from a more aligned industry.
“As an industry today we are not aligned. We need to be more aligned.”
“There’s only a handful of people in the Century Council...we can do more...we need to come together not as competitors.”
John spoke out against the after effects of Beam Global’s and Sazerac’s recent marketing initiatives that voluntarily restrict advertising to audiences that are comprised of at least 75% adults. (DISCUS’s “Code of Compliance” currently holds a 70% standard.)
“Is it the 5% that makes the difference?” said John. “I’m not sure. But everyone needs to do what they think is right.”
He pointed out that many special interest groups are using the 5% gap as a way to “tear into other spirits companies.”
“What should have been a wonderful movement forward, became something that divided the industry. Is that good for us? I don’t think so.”
“I think it’s about survival. I think the industry is under attack,” he stated later in his speech.
John said he agrees with Alain that promoting social responsibility requires the entire corporation and remarked that no one at Bacardi is allowed to drive home after a company event.
At the end of his speech, John put up a slide featuring the following statement.
“Vision statement: Bacardi USA will be the #1 value-creating premium spirits company by 2011.”
REACTING TO INDUSTRY OFFENDERS. The Q/A was short and sweet, but the three speakers managed to address some very important, and rather controversial topics.
One issue repeatedly put forth in this industry is how to deal with offending brands. Both Alain and John made some interesting points, mainly centered on the importance of communication.
“I’m not sure if the example of Spykes is actually relevant but the fact is...at some point companies have to react if the rest of the world thinks it’s a terrible piece of advertising,” said Alain.
John used this as an opportunity to appeal to retailers and restaurants.
“If you continue to allow those people (non-compliant companies) to have shelf space and advertising space then you are at fault...A lot of times with an offender all you have to do is talk to them.”
An individual in the audience asked panelists where they draw the line in partnering with anti-alcohol groups.
“We think the programs that MADD are doing are right...I don’t think we’re aligning with people that hate the industry, but we’re aligning with people to make sure they have the facts and don’t go way overboard,” said John.
“We know there is a right message to give out to the public and in general they [the public] are very receptive...I don’t think these particular messages have made us suffer,” responded Alain. “In the past, this industry didn’t pay attention to regulators and that was the end (prohibition).”
Susan also agreed that partnering with MADD has given the industry a level of credibility.
BEER ALIGNING WITH SPIRITS. With so much talk about aligning the industry, what about coming together with the beer sector?
John: “It’s not about individual companies...I’m urging us to align as an industry. The Century Council would welcome the beer companies to join the organization."
Alain: “I think spirits and wines are really driving the responsibility message but I think we should be together...beer is getting there, but the spirits industry in particular has been very strong for many years for pushing the responsibility message...the beer side has not always been very credible in their responsibility message, so we encourage them to join us.”
Susan: “We also have to recognize that most people don’t differentiate between alcohol companies...if one company does something wrong it tars everyone...we’re certainly always looking for more partners.”
In her opening comments, Susan told listeners that corporate responsibility is not only the right thing to do, but it helps create a more profitable business.
“It’s [social responsibility] good business,” she said. "The new generation of consumers wants to do good. What they want is to change the world. They want to make sure their purchases help the world.”
That feel good image applies to employees as well, she said. “People want to work in a company that’s making a difference.”
RESPONSIBILITY IS NOT A CATCH PHRASE. The first speaker to take the stage was Pernod’s Alain Barbet. His response to Susan’s comments was this: “I’m not sure that corporate responsibility to better business is the right benchmark.”
“Responsibility should not be a catch phrase. It should not be a way for us in the industry to look good. In my view responsibility is a state of mind,” he continued.
“It’s our moral obligation to make responsibility the fabric of our lives every minute of every day.”
He informed the audience that Pernod employees are required to alert the company if they receive a DWI or DUI, and that all employees’ driving records are monitored regularly.
Also, Pernod is currently in the final stages of developing a responsibility campaign.
“We have taken the high road in an industry that sometimes turns their heads to risks,” said Alain. “Responsibility isn’t about good business or about business at all. It’s the fabric of who we are as individuals, as human beings.”
INDUSTRY UNDER ATTACK. So while Alain argued that responsibility should be viewed as an avenue to better business, Bacardi’s John Esposito took an opposing view.
“Is corporate responsibility good business? Well I think it is, and if the world was a perfect place than Alain’s outlook would work. But the reality is the world is not perfect. There are special interest groups targeting this industry. My comments today will address how we as an industry need to respond.”
He told listeners to think back at what happened to the tobacco and fast food industries, for example, after regulators began targeting them. “I wonder who they’re coming after next?” he asked.
John’s solution? Self-regulation, he said, is the best way to avoid negative publicity, but it must come from a more aligned industry.
“As an industry today we are not aligned. We need to be more aligned.”
“There’s only a handful of people in the Century Council...we can do more...we need to come together not as competitors.”
John spoke out against the after effects of Beam Global’s and Sazerac’s recent marketing initiatives that voluntarily restrict advertising to audiences that are comprised of at least 75% adults. (DISCUS’s “Code of Compliance” currently holds a 70% standard.)
“Is it the 5% that makes the difference?” said John. “I’m not sure. But everyone needs to do what they think is right.”
He pointed out that many special interest groups are using the 5% gap as a way to “tear into other spirits companies.”
“What should have been a wonderful movement forward, became something that divided the industry. Is that good for us? I don’t think so.”
“I think it’s about survival. I think the industry is under attack,” he stated later in his speech.
John said he agrees with Alain that promoting social responsibility requires the entire corporation and remarked that no one at Bacardi is allowed to drive home after a company event.
At the end of his speech, John put up a slide featuring the following statement.
“Vision statement: Bacardi USA will be the #1 value-creating premium spirits company by 2011.”
REACTING TO INDUSTRY OFFENDERS. The Q/A was short and sweet, but the three speakers managed to address some very important, and rather controversial topics.
One issue repeatedly put forth in this industry is how to deal with offending brands. Both Alain and John made some interesting points, mainly centered on the importance of communication.
“I’m not sure if the example of Spykes is actually relevant but the fact is...at some point companies have to react if the rest of the world thinks it’s a terrible piece of advertising,” said Alain.
John used this as an opportunity to appeal to retailers and restaurants.
“If you continue to allow those people (non-compliant companies) to have shelf space and advertising space then you are at fault...A lot of times with an offender all you have to do is talk to them.”
An individual in the audience asked panelists where they draw the line in partnering with anti-alcohol groups.
“We think the programs that MADD are doing are right...I don’t think we’re aligning with people that hate the industry, but we’re aligning with people to make sure they have the facts and don’t go way overboard,” said John.
“We know there is a right message to give out to the public and in general they [the public] are very receptive...I don’t think these particular messages have made us suffer,” responded Alain. “In the past, this industry didn’t pay attention to regulators and that was the end (prohibition).”
Susan also agreed that partnering with MADD has given the industry a level of credibility.
BEER ALIGNING WITH SPIRITS. With so much talk about aligning the industry, what about coming together with the beer sector?
John: “It’s not about individual companies...I’m urging us to align as an industry. The Century Council would welcome the beer companies to join the organization."
Alain: “I think spirits and wines are really driving the responsibility message but I think we should be together...beer is getting there, but the spirits industry in particular has been very strong for many years for pushing the responsibility message...the beer side has not always been very credible in their responsibility message, so we encourage them to join us.”
Susan: “We also have to recognize that most people don’t differentiate between alcohol companies...if one company does something wrong it tars everyone...we’re certainly always looking for more partners.”
posted at 12:34 PM
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