Just before Christmas, I spotted a couple of interesting purpose-related announcements by Diageo. The first was around water management, an issue which doesn’t often get as much profile as climate but has the potential to be just as big a challenge for the planet over the next 50 years.
“Diageo, along with its Tequila brands Don Julio, Casamigos and DeLeon, has announced that it will invest 100 million pesos (£4.6 million) in water preservation schemes in Mexico, in the State of Jalisco. The investment is part of the company’s target to replenish more than 100% of the water used in its operations in water stressed areas by the end of 2025.”
Six projects will be funded through 2024 with the aim of increasing water quality and improving access for local people. The first project – already complete – actually created new artificial wetlands which should clean millions of litres of wastewater and improve irrigation for local farmers. Diageo is also investing in collective action to preserve priority water basins.
The second case study is the Diageo “Learning Skills for Life” (LSFL) program, which is having an impact in US communities. The firm obviously has an interest in the hospitality market generally thriving and growing. So that is why “we’re making deliberate investments in talent development and upskilling to support the next generation of entrepreneurs, operators and leaders in the field.”
LSFL was initially launched in Latin America, but is now promoted in North America, Europe, Africa and Asia. The program is free to those seeking employment in the hospitality industry, but is aimed specifically at those who may have faced barriers to education and employment, such as veterans, people re-entering the workforce, those with disabilities and homeless individuals. Some may aspire simply to work as an employee; but others will end up as entrepreneurs and perhaps one day will employ many other people.
The training covers industry skills, food safety, financial literacy and other bartending basics but also includes more general job readiness training in areas such as interview preparation and conflict resolution (I’m sure you need that if you’re going to work in bars, pubs etc!) Although it is a global program, it is run in collaboration with appropriate local partners – the Washington Literacy Centre and the YMCA Metropolitan Chicago being the two latest in the US. These partners can help with access to local employers and help build relationships. And the success of the program is indicated by job placement rate of 88%, which seems incredibly good.
“It has been a life-changing experience, and I was able to meet amazing people, instructors and future business partners,” said Leatrice Kersey, graduate of the Learning Skills For Life program in Washington, DC.
There is some push-back in the US at the moment against the corporate DEI movement, and I think one valid reason for that is the way it has often been narrowly focused on very specific minority groups. But if we really think about who needs support, you can’t define that as simply people of a particular ethnicity, gender, religion or whatever. For instance, it’s interesting to see universities in the UK starting to introduce schemes to encourage white, “working class” boys to apply, as that is now the most “disadvantaged” group in terms of applicant numbers! Young people coming out of the care system in the UK are an incredibly disadvantaged group; how about more initiatives from business to help that group?
So I liked the way the LSFL scheme isn’t discriminating against others – unlike, for instance, positive discrimination programmes where less qualified people get jobs above better candidates because of “minority” status. LSFL is about providing training and helping to build capability across a wide spectrum of people. But then those individuals have to go out and get jobs and perform like everyone else. And the evidence seems to suggest they are doing that pretty successfully.
Whilst I was browsing around the Diageo website, I also spotted an article from October which announced the firm is to fund environmental management training and subsequent certification via the Institute of Environmental Management and Assessment (IEMA) for those working in Sustainable Procurement and Supply Chain Sustainability teams. I don’t really know IEMA so need to do some research – it is a relatively young Institute but it is certainly in the right place given the zeitgeist.
For most large organisations, so much of “sustainability” agenda is in the hands of procurement really as it flows through the supply chain. So I wonder if CIPS feels comfortable with this IEMA connection? Is there a worry that procurement professionals might decide a qualification from that organisation might be just as valuable as MCIPS?
One final point. I do struggle sometimes with sustainability initiatives from firms that fundamentally are not benefitting humanity in a wider sense because of their core raison d’etre, and I know some people feel that way about drinks firms. My view is that the overall benefits to humanity of alcohol just about outweigh the negatives – but I know some people would disagree. Personally, I have tobacco / vaping firms and online gambling businesses the “wrong” side of the line, and alcohol and fast foods just on the positive side! But it is a personal thing. I can’t imagine working for a tobacco firm; I did almost work for Diageo once upon a time. But that’s another story…