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Performance and outlook

We have a guiding purpose: to celebrate life every day, everywhere. We want our people to thrive, and are committed to running a business that is safe, fair, diverse and inclusive – and a great place to work.

Key metrics

Our number one commitment to our people is their safety, which we consistently measure, monitor and report at the global level.

Progress against Our people targets
Target by 2012 2012 performance Cumulative performance (2010-2012) Achivement
Reduce our lost-time accident frequency rate* by 40% against a 2010 baseline 43% 57% Achieved

* Number of accidents per 1,000 employees and directly-supervised contractors resulting in time lost from work of one day or more.

It is with great regret that we report that one employee died following a work-related accident in 2012. Our employee was the only fatality in a road traffic accident involving two vehicles in the Jos region, Nigeria, in June 2012. The circumstances of this tragedy are still being investigated. One fatality in our business is one too many, and we are deeply saddened by this loss. We introduced a Severe and Fatal Incident Prevention programme (SFIP) this year as a priority programme in all locations with the express purpose of helping prevent accidents like this from happening.

Across Diageo as a whole, we reduced our lost-time accident (LTA) frequency rate by 43% compared to 2011. Last year, after we exceeded our Zero Harm 2011 reduction target against a 2007 baseline, we reset our baseline to 2010 to continue our trajectory of improvement. For 2012, we set ourselves a target of 40% improvement on the 2010 baseline. We have again exceeded expectations with an overall reduction of 57%. This has been realised with over 70% of our manufacturing sites achieving zero LTAs this year, an increase of 10% on last year.

Despite these improvements, however, we regret each and every accident suffered by our employees and contractors, and continue to look for ways to ensure that everyone goes home safe, every day, everywhere. Read more about our safety performance.

Other performance

Workplace awards

We are proud to say that this year our business was rated highly by various institutions, such as the Great Places to Work Institute, receiving 21 awards across the world, as shown in the table below.

For an overview of our awards, see this table. (Note: rankings are by the Great Place to Work Institute if not otherwise stated).

Workplace awards
Global Diageo ranked 11th in a list of the 'Best Workplaces' in 2012
Argentina Diageo was ranked 8th in a list of 'Best Small Companies' in 2011
Australia Diageo ranked 39th in a list of the best companies to work for in 2011
Brazil Diageo ranked 27th in the list of 'Best Companies in Brazil' in 2011
Canada Diageo ranked 21st in the list of 'Best Large Workplaces' in 2012 Separately, Diageo ranked 22nd in the 'Best Workplaces in Canada for Women' list
Colombia Diageo ranked 8th in the 'Best Companies' in the country in 2011
European Union Diageo ranked 8th in the top '100 Best Workplaces in the EU 2012'
Germany Diageo ranked 16th in the list of 'Best Workplaces in Germany 2012'
Global Diageo ranked 11th in a list of the 'Best Workplaces' in 2012
Ireland Diageo Ireland was ranked as the 9th 'Best Workplace' in the country among large companies (250+) while Europe Beer Supply business was ranked 15th in the country on the same list in 2012
Latin America Diageo ranked 5th among the '25 Best Multinationals to Work for in Latin America' in 2012
Mexico Diageo ranked 4th in a list of 'Best Companies to Work for in Mexico' among large companies (500+) or multinationals in 2012. In a separate list, it was ranked 21st on gender equality in 2011
Netherlands Diageo ranked 19th in a list of 'Best Workplaces'
Nigeria Guinness was ranked 1st in the 'Best Place to Work in Nigeria' and 'Best Multinational Company in Nigeria' categories in 2012
Portugal Diageo ranked 19th on a list of 'Best Workplaces in Portugal 2011'
Uganda In March, our Eabl Uganda business was recognised as 'Employer of Choice' by the Federation of Uganda Employers (FUE) for its excellent talent management programme in 2012, receiving its Silver Award
United Kingdom Diageo was ranked 13th in the 'Best Workplaces in United Kingdom 2011'
United States Diageo North America named among the 100 Best Companies by Working Mother Magazine
Uruguay Diageo ranked 9th in the list of 'Best Small Companies in Uruguay 2011'
Venezuela Diageo ranked 7th in a list of 'Best Companies in Venezuela 2012'

Employee engagement

We believe that having engaged and motivated people is essential for long-term business success. We measure this through our Values Survey, run by external authority, Kenexa. Our goal is to achieve top quartile performance in employee engagement against Kenexa’s global database. In 2012, 91% of our people fully completed the Survey and showed an engagement score of 86%. These results are in the top quartile of Kenexa's benchmark group.

Bob Bergman, Consulting Director, Kenexa, commented: ‘At Kenexa, we partner with many of the world’s most prestigious organisations to measure and improve the levels of their employee engagement. In doing so, we have collected nearly 15 million survey responses over the last three years from over 400 organisations. With this database we are able to determine a best practice / highest performing normative score for employee engagement. One of the partnerships we are most proud of is the one we have with Diageo. It is clear that Diageo places a high level of importance on creating a culture and environment of engagement; in fact, Diageo has had consistently high employee engagement scores and now outscores the best practice normative comparison by two percentage points. One thing for sure, this does not happen by chance.’

Because so many people in our business are classified as ‘engaged’, in 2006 we set ourselves an aspirational goal against a higher order of employee super engagement, motivation and morale. To achieve this ‘super-engagement’ score, employees must give top marks to six core engagement questions. Our aim is for 50% of our people to be ‘super-engaged’. In 2012 we achieved 40%. There are no external benchmarks for this engagement category since most companies do not measure it.

Diversity

Our company is becoming increasingly diverse as we expand our presence in Africa, Asia, Latin America and Caribbean and emerging European markets. This is true of our workforce, as well as our leadership, which currently stands at 775 roles. In the past two years all the growth in our leadership population has come from markets in these regions.

One of our goals is to have 50% of our total leadership population based in local geographies by 2015. This will include roles that have global responsibilities and roles that have local responsibilities. To achieve this goal we are developing strong local talent pipelines in all of our markets, while providing international opportunities to help prepare our top talent to become future global leaders. For example, today, our top 21 general manager positions are held by people from 13 nationalities, with just three from the United Kingdom.

Another goal is to improve the gender balance of our business, particularly in our leadership population. Our target is for 30% of this group to be women by 2015. In 2012 women made up 26% of the group.

Outlook

We are proud of Diageo as an employer of choice for a growing number of people around the world – and we want to keep improving our business as a place for talented people to fulfil their potential. We have set new safety targets to achieve a 20% improvement in lost-time accidents each year until 2015. Diversity and inclusion will remain high on our agenda and we will work not only on creating a supportive workplace for women but maintaining all types of diversity in the workplace and leadership. As part of this, we will continue to support local employees and leadership as our business grows to meet opportunities in new markets.