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Cadbury Schweppes Foundation working better together our corporate and social responsibility report 2004 This is our second Corporate and Social Responsibility (CSR) Report, incorporating for the first time a full Environment, Health and Safety Report. IT COVERS THE PERIOD FROM JANUARY 2002 TO DECEMBER 2003 This report is for all our stakeholders. Shareowners, employees, special interest groups, investment analysts, consumers, customers, suppliers, business partners, governments, members of the communities in which we live and work – we invite you all to take a look at where we are and how we’re doing on our CSR journey. To help each of you find the information you want, we have provided two ways to follow the journey. If you like, you can take the quick route through the main illustrated pages to get the big picture of Cadbury Schweppes and CSR. Along the way, or straightaway, you can get more detailed information on specific issues, policies, key performance indicators and case studies from the booklets inserted in the report. welcome In the following pages we map out our continuing journey in the world of Corporate and Social Responsibility Take a look at our four big challenges; find out why CSR matters to us, what we've achieved and how we’re going about putting it into practice throughout our business. Manufacturing PeterArea Manager Todd Cadbury ANZ content by chapter 1. our commitment the little book of big challenges 2. who we are 3. our value chain 4. what csr means to us our business principles 5. how we make decisions encouraging stakeholder dialogue 6. making it happen key performance indicators 7. our people Big Challenges 1.1 our people policies and principles Managing company 1.6change 8. our consumers 4.1 Our Business Principles Addressing obesity 1.11 our responsibility 11.1 Environment, health and safety policy Trading with care 1.16 to consumers 9.1 Human rights and ethical trading policy Economic responsibility 7.2 Equal employment opportunities and diversity policy 9. working 8.4 Quality policy with suppliers how we are working with suppliers 10. growing community value new topics in this report progress we are making Generating and sharing wealth around the world 9 Working with suppliers 1.16 investing in communities Sustainability key performance indicators 6.1 10.1 Growing community value around the world 11.12 Packaging innovation Stakeholder dialogue 5.1 11. environment, 6 Embedding CSR within the organisation Listening to consumers 8.1 health and safety 6 Working better together an integrated approach to the environment, health and safety; and responsible use of resources 12. the journey other challenges 6 continues Consistent global data collection and index Biodiversity 11.14 1. our commitment We are wholeheartedly committed to Corporate and Social Responsibility (CSR). From our key strategic goals to the individual actions of our people around the world everyday, it is central to who we are, what we do and the way we do it. New horizons. Over the past two to three years Cadbury Schweppes has made great strides in embedding CSR under the leadership of my predecessor, John Sunderland, and Baroness Judith Wilcox, the Chair of our first CSR Committee. I look forward to continuing their great work. Todd Stitzer chief executive officer For all of us at Cadbury Schweppes, 2003 was a year of transition. John Sunderland became Chairman and I became Chief Executive, we undertook the largest restructuring in our history and we made and successfully began integrating our largest acquisition, Adams. Big changes accomplished in an atmosphere of challenging global economic, social and political conditions. We have adopted five key strategic goals, one of which is to reinforce our good reputation with employees and society by building on our high standards of CSR worldwide. I believe passionately that our global team has the commitment and enthusiasm to deliver greatly on this and all our key goals. The restructuring of our business and the integration of Adams require factory consolidation and a reduction in the number of employees worldwide. This challenge will be met with care and sensitivity and guided by our business values of integrity, honesty and responsibility. These values are not just about maintaining a healthy workplace, where people love to work. They underpin our commitment to working better together to understand and find solutions to other challenges: the ethical sourcing of raw materials; the economics of sustainable business in a competitive and ey fast-changing world; and changing consumer attitudes to diet and active rn u o lifestyle. j e h t We now have frameworks to help us understand and manage these issues, r o f as discussed by my colleague Baroness Judith Wilcox (right). Looking forward, y d the focus of the next two years is to embed these further throughout the a e r business. We will train and develop our colleagues, build capability within our g supply chain, strengthen our key performance indicators and data collection n i t t systems, and determine the role of auditing and external verification in our e g CSR reporting. Sanjiv Sarin Commercial Director Cadbury Egypt Baroness Judith Wilcox non-executive director and chair of the Corporate and Social responsibility committee Journey logbook. Throughout my career in business and public life, I have always believed that good business is conducted competitively but fairly, honestly and with benefits for all those involved. I have found those beliefs to be rooted in Cadbury Schweppes' traditions too. I am delighted to play an active role as we build on them, in every part of our business and in diverse cultural settings around the world. We are halfway through a planned five-year This learning has been reflected in our Ethical programme to review, update and embed Sourcing Standards, which are underpinned our CSR commitment, while incorporating the with a system for supplier evaluation, training rich and varied CSR traditions that we have for our people and engagement with our inherited from the companies and brands suppliers. that now make up Cadbury Schweppes. We are building around five CSR pillars: human Another highlight is Growing community rights and employment standards; ethical value around the world, a global strategy sourcing and procurement; marketing, food to demonstrate the part we can all play to and consumer issues; environment, health assist local communities. We aim to invest and safety; and community investment. We one per cent of our pre-tax profits, and also publicly committed in 2003 to the have established guidelines to measure and principles of the United Nations Global manage our community investment activities. Compact. We are pleased that we continue to receive In the period covered by this report we have encouraging external feedback on our developed frameworks to enable us to deliver performance, including positive ratings higher performance in key areas. For in the FTSE4Good, Dow Jones Sustainability example, our Human Rights and Ethical and Business in the Community indices. Trading (HRET) committee has concentrated But the most important feedback is from on putting the detail of our HRET policy into consumers, employees, shareowners and practice. We learned much from pilot study other stakeholders, who continue to trust visits to five key countries: China, Ghana, us to create brands that people love with Indonesia, Mexico and Turkey. honesty, integrity and responsibility. p1.1 managing company change p1.6 addressing obesity p1.11 trading with care p1.16 economic responsibility, wealth generation and distribution little he bo t ok of c hallenges managing company change We have embarked on a programme of wide ranging changes that will shape Cadbury Schweppes for the future. These changes are driven by our desire to “deliver greatly” – in every sense, from great shareowner returns to great contributions to the communities we live Bob Stack and work in. We have set our sights Chief Human Resources Officer deliberately high. To continue to succeed in a world of more demanding customers, changing consumer tastes, increasingly global competition, mounting public scrutiny of the food and drink industry and rising expectations of the role of business in society – we must deliver greatly. To this end, we have carried out a fundamental reorganisation of the business and are focusing our heads and hearts on achieving five stretching and mutually reinforcing goals (see chapter 4). In the way we go about achieving our goals, as in everything, we will be guided by our values of integrity, honesty and responsibility and by our core purpose of working together to create brands people love. 1.2 big challenges As our Chief Executive Officer Todd regional operating units and six global Stitzer said at the outset of our functions in order to give ourselves reorganisation in 2003, “We need to the strongest possible structural change the processes that define the foundation for reducing costs, way we work, the technology that streamlining decision making and supports our work, the organisation in working better together. which we work, and the ways in This reorganisation builds on a history which we work. But through this of managing change well. In recent change we must remain supportive, years we have successfully acquired open and honest with each other. and integrated a number of Take on new challenges, work with businesses. The latest and biggest is new people. Dare to do great things Adams. We completed the Adams together.” acquisition in March 2003 and are We carried out the reorganisation busy integrating it around the world. rapidly and effectively. In early 2004, Two other similarly big and bold Science and Technology was added as integrations are also well underway: a new global function represented at the bringing together of our Americas the top level of the organisation, Beverages businesses and the further reflecting the importance of this area integration of Europe Beverages.
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