Corporate and Social Responsibility Report 2006
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Corporate and Social Responsibility Report 2006 living our values yesterday, today, tomorrow welcome to our corporate And social responsibility report 2006 2 Todd Stitzer Chief Executive, Cadbury Schweppes plc 4 Baroness Wilcox Chair, Board CSR Committee 6 Our business 10 Our CSR vision and strategy See ♥ pg 13 Goals and Commitments on Sustainability 14 Our economic contribution 16 Our impacts 18 Our stakeholders Our five pillars of csr 20 Marketing, food and consumer issues ♥ Responding to consumer concerns ♥ 12 Point Action Plan 28 Ethical sourcing and procurement ♥ A complex and diverse supply chain ♥ Working with suppliers ♥ Sustainable cocoa 36 Environment, health and safety (EHS) ♥ Environmental sustainability ♥ EHS management systems ♥ Health and safety in the workplace 44 Human rights and employment standards ♥ ‘The Place to Be’ ♥ Diversity and inclusiveness 50 Community investment ♥ Areas of focus ♥ Some of our initiatives 56 Where next? See ♥ pg 57 Goals and Commitments on Sustainability 58 Current KPI progress and future commitments 59 Global reporting indicators 60 UN Global Compact – communication on progress 61 Assurance statement This report covers the Cadbury Schweppes group of companies and focuses primarily on 2005. It has been developed with input from our functions and regions and its content has been reviewed and signed off by senior leaders in our business. We welcome your feedback. Please see the back of this report for contact details. 01 Todd Stitzer, CEO performance driven; values led Responsible business is underpinned by strong values and has a clear and compelling vision of where it is going. Over many years Cadbury Schweppes has earned success on the strength of its distinctive values and clear vision. This report sets out the steps we are taking to ensure that in our present and future business, as in the past, we continue to live our values. The world is changing around us. The past decade has seen beginnings in 19th century England, we have lived out our an ever more lively debate about the role and responsibility values through our actions. Tea and cocoa were a social of companies. Times change, our values are constant. Our response to alcohol for our Quaker forefathers; creation primary contribution at Cadbury Schweppes is, quite of the Ghana cocoa industry a response to forced labour simply, to be in business. Responsible wealth creation is practices elsewhere. We established schools, colleges, and the most fundamental social contribution that any business early works councils, and supplied emergency chocolate can make. At Cadbury Schweppes we believe that rations during World War II. These were not isolated acts business should and can be a force for good in the world. of philanthropy. They improved the performance of the It is a prerequisite for business to prosper in the long Company. They established a firm link between term and create wealth on which future generations responsible business and long-term value creation. will depend. The early Cadburys strove to be ‘an asset to the Our heritage and values provide the structure as we neighbourhood’. I too believe that it is possible to pursue seek to grow our business responsibly. From our early commercial goals, and care about our communities at the Living our values Cadbury builds ‘factory Cadbury Australia and in a garden’ Cadbury New Zealand in Bournville supply biscuits and Schweppes First to offer emergency ration manufactures Indian half day chocolate to Allied tonic water – offering Saturdays to troops and Adams anti malarial properties UK workers provides Chiclets gum Jacob Schweppe Cadbury made the Halls brothers make gives free mineral decision to source their first medicated water to the sick cocoa from Ghana, cough drops to offer of Geneva leaving São Tomé sinus relief where forced Cadbury Wedel labour was sponsors male and being used female employees to participate in sport 02 club ‘Rywal’ in Poland same time. Around the time I joined Cadbury Schweppes from this experience will help drive process improvement in 1983 our then Chairman, Sir Adrian Cadbury, published right across our business to help ensure this does not his statement of purpose and values, The Character of happen again. the Company. In it he wrote, ‘Cadbury Schweppes earns Ultimately our goals and those of our shareowners are its living in the competitive world. It needs to do so similar; a responsible and well-run company that delivers successfully to meet its obligations to all those with a consistently superior profits over the long-term. stake in the enterprise and to make the Company one to Performance driven, values led. Good business and strong which people are proud to belong. I find no conflict values go hand in hand. For our long term future, and between the values and characteristics we have inherited that of all our stakeholders, it is in our mutual interests from the past and the actions we have to take to ensure a that we create a world in which our business will grow successful and independent future for Cadbury Schweppes.’ and thrive. Now, 20 years later, that twin perspective of This report explains the progress we have made on our performance and stewardship is one which our new continuing journey, including progress on what we regard generation of business leaders is embracing, and building as our ‘Big Issues’. It lays out our road map for the future into our business strategy across all our regions. The ideas, and a new set of Goals and Commitments ingenuity and creativity of our people will be the basis See on Sustainability between now and 2010 of our commercial success. Their values and their pg 13, 57 (see pages 13 and 57). commitment inform both our strategic decision making and our day-to-day activities; providing imaginative, but Change often brings with it a degree of uncertainty, but practical solutions for sustainable business growth. one thing we can be sure. At Cadbury Schweppes we will live out our values in the way we do business. That was Our products have brought pleasure and refreshment true yesterday. It is true today. It will be true tomorrow. to millions over many generations. People's needs and tastes will change, and we will be there as a welcome and trusted part of their lives for generations to come. A relationship based on informed choice and trust… sustainably. We make quality products – chocolate, candy, chewing gum and soft drinks. They must always be enjoyed safely by consumers. In the summer of 2006, certain aspects of the quality assurance process we followed in the UK created concern in the eyes of the public and consumers, for which we apologise. The valuable lessons learned 7 Up Plus with added calcium and vitamin C is introduced in the US Fit for Life programme is established in the UK Cadbury Adams in Brazil starts Bate Bola Trident tackles after school sports and tooth decay Dentyne offers first extra-curricula activity with the first sugar-free breath programme for children sugarless gum freshening gum Enterprise in Snapple ‘apple’ soda is Green & Black’s Schools approach sold by ‘Unadulterated introduce organic to UK Community Food Corporation’ to chocolate and a Fair Investment health food stores in Trade bar in the UK New York 03 Baroness Wilcox, Chair, CSR Board Committee continuing the journey For Cadbury Schweppes the last few years have been a time of careful reassessment and purposeful renewal. We have re-articulated our CSR policies and strengthened our practices to enable us to live our values in an ever-changing business world. Marketing, food and food Marketing, consumer issues and sourcing Ethical procurement health Environment, and safety Human rights and standards employment Community investment Our Business Principles and good governance 04 In 2001 Cadbury Schweppes set up a formal Board We recently embraced a new set of Goals Corporate and Social Responsibility Committee. We saw See and Commitments on Sustainability for pg 13, 57 that how a company lived out its values and met its our activities in each of our pillar areas. responsibilities was becoming an increasingly important These will guide and focus our CSR approach for the focus of attention for our consumers, shareowners and next five years. society at large. And while these things had always been As part of our strategic review we also examined important to us at Cadbury Schweppes, our values and whether or not our policies were robust enough for the responsibilities needed to be re-articulated and managed 21st century, and upgraded those that no longer achieved in ways that made sense for our times. I was delighted to the standards we wanted. We improved our management be asked to chair the committee. processes, and focused on embedding good CSR practice Our approach in 2001 was to start by working out what into our business, including celebrating success. And living our values meant in the contemporary world and to finally for this period, we began to measure, verify and make an up-to-date re-statement of our values. One of assure what we do. This will feature strongly in our future our first actions was to develop our Human Rights and work in this area. Ethical Trading policy. Based on international standards On the basis of all these actions, achieved with the and best practice this policy applies both to our own support and active engagement of our many stakeholders, employees and to our suppliers. We then revised Our and built on our robust governance structures, we have Business Principles, our code of conduct and guide to again improved our performance over the period under ethical business practices, to match current best practice review. and deal comprehensively with new and emerging issues of corporate responsibility.