Corporate social responsibility
Transcription
Corporate social responsibility
Corporate social responsibility R E P O R T SABMiller plc 2 0 0 8 Corporate social responsibility R E P O R T SABMiller plc 2 0 0 8 q 07 contents 10 Taking re sponsibility for the future 30 Openness is our middle name 42 Environmental protection: our priority Introduction 16 Noblesse oblige 34 Fighting for a 'European' drinking standard 46 Commitment to local communit ies 08 Our business philosophy 20 Kompania Piwowarska is a great place to work 40 Our logo stands for highest quality 52 About us q C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Social corporate responsibility is not just a moral obligation; it is a way to ensure sustainable development and excellent performance. Together with the other SABMiller subsidiaries all over the world, Kompania Piwowarska has established ten sustainable development priorities, a testimony to our corporate social responsibility. These priorities include solemn commitment in the realm of environmental and social issues: water efficiency, waste recycling and recovering as well as observing human rights and care for local communities with special emphasis on promoting responsible drinking. In our opinion, Kompania Piwowarska’s corporate responsibility must not be limited to however numerous social or charity programmes. It needs to be reflected in all aspects of our business activity. I recommend this fourth report on corporate social responsibility where we present relevant initiatives and the progress we made last year. Paweł Sudoł President of the Board 7 O U R B U S I N E S S P H I L O S O P H Y Our business philosophy OUR VISION To be the most admired company in the Polish beer industry, thereby enhancing SABMiller’s global reputation. OUR MISSION 8 To ensure that our local and international brands are the first choice of our consumers. C O R P O R A T E S O C I A L R E S P O N S I B I • Our people are our enduring advantage L I T Y OUR VALUES • Accountability is clear and personal • We work and win in teams • We understand and respect our customers and consumers • Our reputation is indivisible 9 T A K I N G R E S P O N S I B I L I T Y F O R T H E F U T U R Taking responsibility for the future If the Chinese wanted to reach the American standard of living energy consumption would equal the earth’s triple stock. What would be left for the future generations? Sustainable Development is not a pure concept; it has become reality and a provision in the Polish Constitution. Article 5 reads:“The Republic of Poland shall safeguard the independence and integrity of its territory and ensure the freedoms and rights of persons and citizens, the security of the citizens, safeguard the national heritage and shall ensure the protection of the natural environment pursuant to the principles of sustainable development”. Article 86 of the Constitution says: “Everyone shall care for the quality of the environment and shall be held responsible for causing its degradation. The principles of such responsibility shall be specified by statute”. 10 At SABMiller, our measure of success is more than just brewing great beer. We focus on building first choice brands, nurturing partnerships with our distributors, our customers and our communities, and on being a responsible employer and global citizen. Our core business activities can create jobs, create markets for entrepreneurs and train and educate our employees and others who touch our business. A company for years enjoying the title of an exemplary Earth citizen cares about the natural environment and the local communities. Therefore the idea of sustainable development relying on business operations accompanied by protection of the environment and human rights is an integral part of SABMiller’s philosophy. Sustainable development is meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. It is the only possible direction our civilization may follow: purposeful creation of balance between economic growth, care for the natural environment and the company’s social environment. A state passes on businesses various responsibilities while the increasingly more aware society expects the companies to be equally involved in supplying high quality products and undertaking social and environmental initiatives. The company assesses its progress in the key areas of Sustainable Development by means of ‘the four levels’. This self-evaluation allows for matching the group’s priorities and introducing changes and updates in line with global trends bearing in mind the company’s local conditioning. The best performance necessitates adjusting business activity to the real world in which SABMiller subsidiaries operate. E C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y WE ARE AWARE OF THE IMPACT OUR DECISIONS HAVE ON THE FUTURE GENERATIONS Kompania Piwowarska was among the first companies to introduce a program encouraging Sustainable Development. From direct Corporate Social Investment we do not expect any financial pay-back and the contributions are motivated by supporting the well-being of the employees, communities, suppliers, clients and shareholders; this sensitivity to social issues works for the benefit of the future generations. KP activities for the sake of the natural and social environments are in compliance with the owner company, SABMiller, the second largest brewer in the world. Its management launched our sustainable development framework which focuses on the 10 priorities most relevant and material to the business. They are aligned with the United Nation’s Millennium Development Goals, however identified by means of an analysis of our business operations. We considered the threats and opportunities to the natural and social environments related to SABMiller operations. Each of the priorities includes an SABMiller goal, the related responsibilities and rules underlying management and reporting. All issues and processes need to be included in each subsidiary‘s business plan. As the rules underlying the Sustainable Development have been well embedded into strategic and operational planning, they are a crucial element of our business, natural in today’s world. 11 T A K I N G R E S P O N S I B I L I T Y F O R T H E F U T U R SABMiller is committed to being a responsible company because it makes sense It’s not about being altruistic for its own sake, it’s about understanding how behaving responsibly has a positive impact on profitability and on economic growth. Our aim is to secure economic benefits for the local communities where we grow raw materials and brew beer and also for our shareholders who benefit from a sustainable business and a return on their investment. SABMiller’s forward-looking policy supports these assumptions. The company has been involved in social and environmental initiatives since the onset of its operations. However, as the company is dynamically expanding on the global market it needs to redefine its strategy. The scope of operations has been embraced by means of 10 sustainable development priorities. They include: Reduce our energy and carbon footprint Have respect for human rights 12 Discourage irresponsible drinking Make more beer but using less water Have a vibrant packaging reuse and recycling economy Work towards zero waste operations Have supply chains that reflect our own values and our commitment to sustainable development Bring benefits to the communities we serve Contribute to the reduction of HIV/ Aids within our sphere of influence Be transparent in reporting our progress on our sustainable development priorities E C O R P O R A T E S O C I A L Discourage irresponsible drinking Alcohol can be an enjoyable part of adult social experiences. People who drink to excess, drink while underage or drink and drive, hurt themselves and the society. This is why we actively promote care and moderation when drinking alcohol. Promoting the responsible beer drinking underlies the company’s marketing communication. On top of the existing local legal standards of alcohol promotion, SABMiller has adopted its own, more restrictive rules. The Alcohol Manifesto and the Commercial Communication Code set standards for approved modes of presenting alcoholic beverages. In addition to liaising with governments and policy organisations, we continually invest in education programmes and marketing campaigns to remind our consumers of the vital role they play in preventing alcohol-related harm to themselves, to others and to society overall. A series of ‘Alcohol – Underage Access Denied’ activities undertaken by the Polish beer industry serves as an excellent example. It has resulted in a significant growth in the sellers’ awareness of the need to ban sales of alcohol to the underage. Make more beer but using less water Historically SABMiller’s approach to water issues has been focused on efficiency in the production process, but more recently we have broadened our scope to include our wider responsibilities; from understanding how much water is used in the growing of our raw materials through to water availability in our local communities. We acknowledge that we must take a holistic approach to water management, in the context that many of our operations are R E S P O N S I B I L I T Y in areas of water stress. Water scarcity and quality is becoming an increasingly urgent and politically sensitive issue and is of immediate relevance to SABMiller. We have a clear business imperative to take action in three specific areas. Firstly our operations need to reduce the amount of water they require to produce a unit of beer. Secondly our operations must consider the needs of the communities in which they operate. Lastly, there is a case for engaging with our suppliers to research and gain a better understanding of our extended water footprint. We are developing a watershed assessment tool which is soon to be tested in Poland with the aim of rolling it out across the business. Our operations are gathering information on water availability and quality in the context of future requirements to protect local communities from potable water shortages. Reduce our energy and carbon footprint Energy is expensive and the consensus is that greenhouse gas emissions contribute to climate change. For both of these reasons SABMiller must become more energy efficient, manage its carbon footprint and explore cleaner sources of energy. The global player’s initiatives include all areas of operations. All the European operations continue to work on projects aimed at improving energy efficiency. Miller is a member of the US-based Climate Leaders group – a voluntary industry initiative through which companies make commitments to reduce their carbon dioxide emissions. SAB in South Africa has signed a letter of understanding with the Department of Minerals and Energy to reduce its energy consumption by 15% by 2010. SABMiller breweries in South Africa launched the ‘Operation Kill-a-Watt’ campaign aimed at reducing electricity usage. Savings are achieved by switching off of air conditioning and lighting. Have a vibrant packaging reuse and recycling economy Packaging plays a critical role in protecting the quality of our products, yet also has visible environmental consequences. Businesses have a responsibility to design and use packaging which has a minimal environmental impact once practical considerations are taken into account (for example, protecting the product), as well as to meet obligations post consumer use. Hence the emphasis on recycling and recovery thereof. In South Africa, 79% of all SAB Ltd’s beers are packaged and sold in returnable containers. We evaluate where existing packaging materials can be substituted with improved alternatives. For example, our global packaging team will be conducting trials on new materials such as biodegradable shrink film in Poland. Work towards zero waste operation Waste recycling and recovery in the production process is another priority. Reducing waste saves money as the cost of disposal rises. 94% of SABMiller’s waste is recycled or reused. Our organic brewing wastes can be valuable resources for food producers and farmers as well as a potential energy source. In South Africa, spent yeast is sold to the manufacturers of health foods and savoury spreads while the spent grain is sold to farmers as animal feed. The brewery in Port Elizabeth donates a portion of its spent grain to local farmers every month. 13 T A The priorities of sustainable growth have become a vital element of SABMiller’s operations and increasingly more determine the company’s business decisions. Execution of the priorities is monitored in the subsidiaries across the globe. The activities are also consulted with NGOs, local authorities and UN experts. The company’s responsible attitude is adopted in all countries of SABMiller’s operations. On the other hand, numerous awards reflect the international community’s appreciation of SABMiller’s efforts. K I N G R E S P O N S I B I L Have supply chains that reflect our own values and our commitment to sustainable development We recognize that a supply chain which is both responsible and efficient should result in reduced costs, improved quality and provide a competitive edge, as well as being sustainable. SABMiller group companies will engage with their suppliers of goods and services to promote the following principles, and work towards implementing these principles throughout their supply chains: business conduct, working conditions, employment, child labour, wages and hours, diversity, freedom of association, environment. In India a ‘Growing in Partnership’ initiative has been launched to develop a high quality barley malt industry. The project is aimed at the long-term development of a strong barley malt industry. The project uses a cooperative farming model to unlock the potential benefits of economies of scale for both the farmer, the brewery and the supply chain. Have respect for human rights SABMILLER ACTIVELY REDUCES WASTE EMISSION We need to have respect for the diverse national cultures and differences in laws and traditions in countries where we operate. At the same time we seek to abide by the values of the international community, notably the United Nations Universal Declaration of Human Rights. SABMiller not only observes internationally recognised human rights instruments but has developed its own human rights principles, including freedom of association, abolition of child labour, intolerance of cultural and ethnic discrimination, establishing fair and competitive wages and benefits, providing safe and health work environments, community commitment etc. Our operation in the Czech Republic is a partner of the ’One World’ festival which is one of the largest and most important human rights film festivals in Europe. It aims to foster mutual understanding between cultures, heighten awareness about human rights and promote global responsibility. Bring benefits to the communities we serve The prosperity of communities and our businesses are co-dependent. Our corporate social investment activities aim to improve quality of life in the communities in which we operate, with a particular emphasis on boosting employment and con- 14 I T Y F O R T H E F U T U R E tributing to the local budgets with various taxes and fees. The company initiates a number of social activities targeted at specific regions. We believe that the most sustainable form of CSI is where our companies enter into long-term partnerships with stakeholders. For example, SAB Ltd in South Africa will invest 10% of CSI project funding into HIV/ Aids, specifically on interventions which assist with capacity building of healthcare providers while Miller in the US supports Grassroots Soccer, a non-profit organisation that is fighting the Aids pandemic in Africa with an innovative tool – superstar African soccer players. Contribute to the reduction of HIV/Aids within our sphere of influence The extent of the HIV/Aids pandemic in Africa and its consequences require us to manage this as a priority. Our programmes are targeted at our employees, their families, local communities and suppliers. We aim to reduce and prevent new infections through effective education programmes while existing infections are managed through voluntary counselling and testing (VCT), early diagnosis and managed healthcare. Together with the Ugandan Ministry of Health with support from NGOs we decided to open its HIV/Aids clinic to the local community where the residents are tested. Be transparent in reporting our progress on our sustainable development priorities SABMiller is committed to timely, accurate and honest public reporting of progress on sustainable development priorities. For example, the majority of reports on recognizing the priorities of sustainable growth is available on the company’s corporate website. In the future SABMiller intends to issue every six months a report on its operations. Plans include reports drawn by the company’s subsidiaries like this KP report reflecting the execution of SABMiller’s 10 sustainable development priorities in various parts of the globe. There are formal requirements made by the financial community but, in addition, other stakeholders such as NGOs expect businesses to be aware of issues where they have a potential influence. We aim not only to highlight where performance has met our targets, but also to acknowledge areas where we need to strengthen our programmes. C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y SUSTAINABILITY ASSESSMENT MATRIX TRACKING PERFORMANCE AGAINST THE SUSTAINABLE DEVELOPMENT PRIORITIES 3 KOMPANIA PIWOWARSKA’S 2007 PERFORMANCE AGAINST SUSTAINABLE GROWTH PRIORITIES 1 2 4 Being admired – Achievement of what is currently considered to be best practice in a particular field Creating opportunity – Creatively turning potential risks into business opportunities Being ready – Meeting the challenges of risks that we anticipate we will be facing in the next three years Minimum standard – All operations must achieve level 1 as it represents management of the key sustainable development risks we are facing today. The Executive Committee has mandated that where operations do not meet level 1 currently, they must implement a plan to reach this level as soon as possible November 2007 March 2007 3 2 1 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 ALCOHOL Research conducted to measure the results of activities promoting responsible drinking proves deeper awareness in the target groups. WATER The capacity of the waste treatment sub-plant and the adjusted load of waste transferred to external treatment plants allows to maintain low-level water contamination. ENERGY AND CARBON The new boiler in Poznań has contributed to a significant reduction in CO2 as well as nitrogen and sulphur monoxides emission. PACKAGING Improvement in the realm of minimising the packaging mass and the heavy metal content contributed to good performance. WASTE Our cooperation with companies specializing in waste recovering and recycling allows us to fulfil all statutory requirements pertaining to waste collection and segregation. 6 7 8 9 10 SUPPLY CHAINS Progress in our cooperation with suppliers in the realm of a proper production system has resulted in high quality raw materials and packaging. COMMUNITIES The social initiative ‘For What It’s Worth’ granted support to over 4 thousand socially excluded individuals on account of poverty in various parts of the country. HUMAN RIGHTS The appraisal includes recognition of the national community’s values as well as other ratified international agreements and SABMiller’s relevant internal regulations. HIV/AIDS The appraisal refers to the country’s policy on HIV/AIDS prevention. It allows for conducting 14 thousand tests a year. 97% of the budget is dedicated to treatment while the remaining a 3% to prevention. TRANSPARENCY Openness and transparency of business operations as well as the employees’, partners’ and clients’ free access to information is the most highly appreciated priority. 15 N O B L E S S E O B L I G E Noblesse oblige During several years of operation, Kompania Piwowarska has been constantly increasing its share in the Polish beer market. We are proud of the fact that our excellent financial performance largely contributes to the state budget while Kompania Piwowarska is one of the biggest tax payers in the country. Kompania Piwowarska combines the glorious tradition of the Polish brewing culture, the best world technologies and a modern philosophy of corporate social responsibility. We rely upon the latest knowledge of management and marketing as well as modern, sound financing. Our company is managed in a modern way, resorting to valuable experience, knowledge and skills offered by outstanding experts in the field of management from SABMiller, acquired in many countries across the globe. The ultimate result of our business operations is constant growth of the highest rate in the country. and demonstrate exemplary behaviour, to set up standards and models. We accept the challenge, setting an example by acting responsibly in every aspect of KP operations. Fulfilling consumers’ needs has great meaning to us. We strive not only to fulfil but to exceed their expectations, every day asking the question: what can we do today better than we did yesterday and better than our competitors? We take pride in the fact that we are more effective than our competitors in identifying expectations of Polish and world beer lovers. And this is the story of our success: in everything we do we focus on the consumers and the growth of their favourite brands. The leading position is not only about splendour and glory; it involves many responsibilities and accountability. The leader is expected not only to bring about excellent sales results and the market share growth but most of all to set trends 16 IN EVERYTHING WE DO WE FOCUS ON THE CONSUMERS AND THE GROWTH OF THEIR FAVOURITE BRANDS C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y KP's importance to Polish economy Revenues from sales of beer produced by Kompania Piwowarska may be compared with the state’s total expenditure on healthcare, sports and environmental protection. These considerable funds are handled by several hundred companies operating on the Polish beer market: distributors – our trade partners. The funds are dedicated to financing current operations, including purchase of raw materials, remuneration and taxes. The bottom line is that they also contribute to the shareholders’ profits. Our company cooperates with thousands of entities in Poland and abroad, affecting many industries: agriculture, transport, trade, on-premise, glass production, printing, television, the press and other. Last year we sold over 14 million hl beer which represented about 40% of the beer sold in Poland (the total beer sales in Poland amount to 35 million hl). Our flagship product is Tyskie, the most popular Polish exported beer, the biggest Polish beer brand not only in Poland (16% of the domestic beer market) but also abroad. We export it chiefly to UK, Ireland, Germany and the United States. (2007 data) OUR FLAGSHIP PRODUCT IS TYSKIE, THE MOST POPULAR POLISH EXPORTED BEER 17 N O B L E S S E O B L I G E We increase the state budget Not only the shareholders, employees, consumers and local communities profit from our operations; actually, benefits are derived by the whole society. State authorities benefit considerably from the wealth Kompania Piwowarska creates. 100% VAT (calculated) Excise tax Other taxes and fees Retailer’s margins Margins Production cost and profit-before-tax 0% 18 Payment of direct and excise taxes represents approximately 1% of all tax revenues in the state budget. Last year the total sum of taxes paid by KP was only slightly smaller than the budget of the Ministry of Culture and Art for maintaining the ministry, artistic facilities and significant artistic events. The income tax paid by KP exceeded the state expenditure on IT systems while the excise tax represented over 70% of the state’s expenditure on education. The local authorities also benefit from taxes paid by KP. It is our policy to pay the declared amounts of taxes regularly, on time. We have calculated that the total amount of direct and excise taxes represents 41% of the price of every beer drunk by the consumers. C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y We generate employment If we assume that sales of beer produced in our breweries significantly contributes to the revenues generated by several dozen points of sales in Poland, nearly 50 thousand people in Poland owe employment directly to KP. We estimate that in total these people earn approximately PLN 1.5 billion a year. The related income tax amounts to about PLN 135 million; approximately PLN 95 million is dedicated to health insurance and PLN 280 million to social security (the additional total contribution paid by the employers exceeds PLN 300 million). Our company cooperates with numerous entities, including suppliers of raw materials (hops, yeast, malt), packaging (producers of bottles, cans, labels, carton boxes, transporters) and service rendering companies (transport, advertising agencies, the press, television, suppliers of machines, devices, vehicles etc.). We cooperate with about 600 dis- It is not only the shareholders who profit from our operations but also the employees and their families as well as our trade partners and their families. People employed in our company and their families add up to a crowd of approximately 9 thousand people totally or partly supported by Kompania Piwowarska SA. tributors who profit from trading with us. Our trade partners employ in total 20 thousand people. Cooperating with numerous entities, Kompania Piwowarska supports over 80 thousand individuals and their families. “As much as 95% of the hops we use comes from domestic plantations (approx. 450 plantations, about 900 thousand tons of hops). They give employment to many people and support their families. Within a year we consume about 240 thousand tons of barley malt which is produced from approx. 300 thousand tons of barley. Approximately 60% of our malt and 40% of barley comes from domestic suppliers. About a thousand farms produce barley for KP, each of them employing several people. The lion’s share of the bottles we fill is supplied by three domestic producers (out of five who cooperate with us). We purchase cans from six producers, including two suppliers from three factories located in Poland. The crowns are supplied by three producers, two of them Polish. The labels come from five suppliers, including one from Poland”. OUR EMPLOYEES AND THEIR FAMILIES ADD UP TO A CROWD OF APPROX. 9 THOUSAND PEOPLE DIRECTLY OR INDIRECTLY TRACED BACK TO THE PRODUCTION AND SALE OF OUR PRODUCTS Tomasz Sokołowski Director: Supply Chain Management 19 K ompania P i w o w arska I S A G R E A T P L A C E T O W O R K Kompania Piwowarska is a great place to work We want to be an employer of choice and create a ‘great place to work’. To pursue this goal, every year we devote significant financial means to personnel development. In the past fiscal year the related expenditure amounted to PLN 7 million. More and more frequently, our employees acquire and master their skills abroad by participating in international training sessions and project groups led by world-class experts. Every company’s performance is ultimately affected by its employees. We offer attractive employment conditions and prospects for a professional career to talented, competent individuals open to new information, full of invention and enthusiasm. Kompania Piwowarska ensures that its employees are well remunerated, enhance their skills, demonstrate a creative approach, are capable of team work, follow the code of conduct and enjoy their workplace. People pleased with their work are our company’s biggest asset. “In the past few years the labour market in Poland has changed. On the lookout for new employees, managers focus their recruitment efforts on more than the skills, know-how and experience. They search for people capable of becoming company leaders, fostering relationships, motivating and inspiring others, building teams and coming up with innovative ideas, individuals who most of all can ‘manage themselves’. During job interviews managers used to ask ‘What skills can you offer?’ whereas now they ask ‘Who are you?’ with respect to the beliefs, attitudes towards work, other people and important values. At the same time employers realize that an employee’s failure to adapt to an organization culture, regardless of the employee’s excellent skills, results in frustration, lowered motivation and problems for both parties involved”. Joanna Heidtman, Ph.D. Psychologist and sociologist, Management Trainer and Consultant. Her latest book “In Tune with Yourself” is dedicated to personal effectiveness. PEOPLE PROUD OF THEIR JOBS ARE THE COMPANY’S BIGGEST ASSET 20 C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Employee percentage by function in F07 Salaries and remuneration In Kompania Piwowarska, the average salary amounts to PLN 4687,00 before tax i.e. nearly 175% of the average salary in the business sector in Poland. The average remuneration at Kompania Piwowarska excluding the managers’ salaries amounts to 3480,00 PLN i.e. nearly 130% of the average salary in the business sector. The above data include annual bonuses paid out with relation to the company’s performance. The amount of the annual bonus usually exceeds 100% of the monthly remuneration. A group representing approximately 2.5% of the employees (seasonal workers ex- other 11% production 29% sales and distribution 60% cluded) receives smaller remuneration of PLN 1850-2000 before tax. All employees are eligible for a sales-related or an annual bonus. KP managers are part of a separate incentive scheme. Female and male employees holding the same position are equally remunerated. Since 2008 all employees and their families are eligible for a private healthcare scheme, previously enjoyed only by the managers. The average annual inflation-rate related rises in salaries have been agreed with the trade unions and included in the corporate three-year plan. SALARY AT KP STEMS FROM THE JOB’S MARKET POSITION Remuneration at Kompania Piwowarska depends on the company’s financial performance and each employee’s individual achievements. Remuneration at KP is based upon the position’s market value and is related to individual, team and corporate performance. It is Kompania Piwowarska‘s strategy to offer remuneration equal to that enjoyed in companies with which KP competes for employees. They account for top 350 Polish companies, leaders on the remuneration market. The salaries they offer are regularly analysed by HAY Management Consultants. This is how Kompania Piwowarska determines market remuneration for each job position in a given fiscal year. REMUNERATION AT KOMPANIA PIWOWARSKA DEPENDS ON THE COMPANY’S FINANCIAL PERFORMANCE AND EACH EMPLOYEE’S INDIVIDUAL ACHIEVEMENTS 21 K ompania P i w o w arska The Motivation System I S A G R E A T P L A C E T O W O R K Years of service at Kompania Piwowarska [%] 50 40 30 At Kompania Piwowarska, management refers to goal setting, control of implementation thereof as well as awarding the employees in line with their performance. It is important to empower employees so that they all contribute to managing the company. Performance Management implemented in Kompania Piwowarska includes incentivizing tools, performance analysis, competence appraisal and designing development schemes. Performance Management provides the employees with ongoing feedback; twice a year each employee is evaluated by his or her superior against individual goal accomplishment and awarded accordingly. At the same time, the system encourages employee empowerment, supports development of management competence, fosters cooperation between departments and promotes accountability. However, we do not pursue our goal at any price; in everything we do, we follow our value system. When in doubt, we keep to provisions of Kompania Piwowarska’s Code of Conduct. It is our guide in the area of accountability, honesty, transparency and conflict of interests. The employees are even more motivated with recognition contests and programmes. As part of “Big Beer” programme each individual may nominate an employee or a team of employees whose conduct or accomplishments can serve as ‘the best example to follow’. This is how we evaluate not only success in pursuing individual or team goals but also attitudes and involvement in promoting our values. A nomination in this programme is an honour to the candidate. Winners of the prestigious “Big Beer” award may fulfil their dreams at the employer’s expense (up to PLN 5 000). Irrespective of the motivation schemes, sales and distribution employees partake in an incentive programme “Gold for the best”. 22 20 10 0 48% 34% 0-6 years 6-12 years Employees tend to be motivated also by the company’s goodwill. Initiatives launched for the benefit of other people trigger off the employees’ involvement and contribute to their affiliation 12% 3% 3% 12-18 years 18-24 years 24-30 years years of service to the local community. In programmes like “For What It’s Worth” KP employees’ votes count double. “Santa’s Little Helpers” programme demonstrates that the company’s social involvement makes it possible for the employees to lend a helping hand. During our annual opinion polls we ask the employees if the company fulfils their expectations and how they evaluate employee relations, the corporate culture, communication and KP image. Incentive systems, schemes and tools can only prove useful if they meet expectations of those whom we want to motivate. OUR EMPLOYEES MAY SOCIALIZE IN CORPORATE PUBS WHERE BEER IS SERVED AT THE EMPLOYER’S EXPENSE “The rules underlying promotion at Kompania Piwowarska are very explicit. Firstly, we promote employees who give regular excellent performance and accomplish their individual goals beyond expectations. For several years we have been planning succession to the key positions. Candidates for the successors include employees who enjoy accomplished performance and demonstrate high potential. It is verified in the course of pursuing new, more challenging tasks and by means of specialized performance appraisal methods, including competence appraisal. Every spring we undertake the so-called talent review and as a result indicate the successors and design development paths for our High Potentials”. Aleksandra Dzięciołowska-Piątek Recruitment and Succession Manager C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Vocational Development At Kompania Piwowarska it is the employee who is responsible for his or her development while the superiors and the company are there to encourage the process. Our goal is to create suitable work conditions where each individual’s potential will be best employed. Hence the company strives to give its employees an opportunity to develop their competences. This results in more effective daily work as well as facing professional challenges in the future. New employees take part in an induction programme aimed at quick and effective preparation for the job and its requirements as well as integration with the other employees. Employment structure at KP by gender (percent) Employment structure: managerial positions, by gender (percent) women 21,8% women 20% men 78,2% men 80% OUR EMPLOYEES EMBRACE THE OPPORTUNITY OF SKILLS DEVELOPMENT “The employees may acquire the skills they find useful at present and competences which will allow them to assume other positions in the company. Each employee interested in personal development may cooperate with his or her superior on developing one’s Individual Development Scheme. KP offers the following development options: on-site education, participation in ambitious project, self-learning, elearning, training, individual coaching, mentoring or participation in academic programmes and studies. Specifically for KP employees a Catalogue of Developmental Offers and a Catalogue of Competence Development have been devised. They are lists of various ideas and hints on how to develop particular skills. The employees will find there offers of training programmes, lists of literature on the subject and links to interesting websites”. Maryla Maj-Wisoky Education and Development Manager BIG BEER – A RECOGNITION PROGRAMME FOR KP EMPLOYEES ENJOYING REMARKABLE RESULTS IN PURSUING KP’S STRATEGIC PRIORITIES 23 K ompania P i w o w arska I S A G R E A T P L A C E T O W O R Development Programmes Induction training All new Kompania Piwowarska employees undergo induction training. It consists of two stages: general introductory training followed by an individual program tailored to the position’s specificity. The training’s goal is to build up the new employees’ general knowledge useful in daily operations. In the course of the training, the new employees find out about Kompania Piwowarska: its history, vision, brand portfolio and success pillars. They also absorb essential information on the Polish beer market, its characteristics and chief players. Last but not least, the new employees gain insight into beer brewing (brewery tours coming in handy) and meet their future colleagues. The individual induction programme takes several days when the employee can learn about all aspects and issues necessary to smoothly start work at KP. THE PROGRAMMES PARTICIPANTS DEVELOP INTER-DEPARTMENTAL CO-OPERATION IN LINE WITH KP MISSION, VISION AND VALUES Management Development Programme To ensure the company’s long-term success it is necessary to support the development of talented managers to turn them to even better leaders. They are submitted to a programme geared to a comprehensive understanding of the business and the role of a KP manager and leader. As part of the programme, we assist the participants in developing their individual leadership style. The programme takes several months when the managers participate in interactive lectures conducted by recognised experts, in practical workshops, business simulations and meetings with successful people. They are also engaged in interfunctional projects supporting the company’s strategic plan. Managers from all functions are welcome. The participants naturally find out about other functions’ characteristics and develop inter-departmental cooperation in line with KP mission, vision and values. KP employees’ education level (2007) Tertiary , Master’s Degree 27,3% Tertiary, Bachelor’s Degree 2,7% 24 Vocational 20,1% Secondary vocational 30,3% Post-secondary 3,6% Management Academy This is a year-long programme during which all the employee’s time is devoted to Elementary 4,4% Secondary general 11,6% K C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y development. Stage one of the programme consists in finding out about all functions in the company and key processes. Then individual developmental needs are identified to devise Individual Development Plans. As part of the plans implementation, the employees are entrusted with conducting complex and significant KP projects. These projects are often conducted in functions and areas completely different from the manager’s scope of competence. Project management Our managers possess the expert skill of project management. As part of the relevant training we offer development of knowledge and skills related to an all-encompassing view on the subject, including project goals, schedules, project team management, project risks and IT projects management. The training programme offered to our managers is in compliance with the world PMI standard. It is maintained throughout the SABMiller group. This is why our managers partaking in international projects have the knowledge and skills to effectively work in an international environment. Change management ‘Change’ largely affects our company’s operations. Changes relate to nearly all areas of our business. For our managers and other employees in charge of change we have developed workshops to learn by practice how to prepare for change, how to assist employees in going through change and what needs to be done for the process of change to be put in motion. Finance for the non-finance employees At Kompania Piwowarska we put great emphasis on skilful finance management. Kompania Piwowarska conducts financerelated training for non-finance employees. The participants learn fundamental terms in the field of economy, budgeting, accounting and book-keeping. This is why in their daily work they can manage a budget, know the specificity of running a company selling and distributing beer and keep the department’s accounts. NEW EMPLOYEES CAN FIND OUT ABOUT BEER BREWING Individual coaching and mentoring Employees developing their leadership competence may take advantage of individual coaching or mentoring. The benefit of this individual approach is an effective development of very specific, individual developmental needs. Sales Academy Sales Academy is targeted at the sales department employees with more than 3 months of service in the company or who have successfully completed the trial period. The training’s goal is to present the employees with expectations related to their work in the sales department, standards of conduct and the way Kompania Piwowarska does business. The sales representatives learn about the Polish beer market, its segmentation, Kompania Piwowarska’s brand portfolio and the competitors. They acquire knowledge of the sales channels, trade marketing and promotion, IT as well as elements of the law and economy crucial for their job. They also have an opportunity to acquire basic skills in the realm of public relations and sales techniques. Basic trade negotiations Outperforming sales representatives have an opportunity to undergo training on basic trade negotiations. They first learn how to prepare for the negotiations and which negotiation techniques to employ. They also acquire practical skills of identifying the client’s needs, resorting to effective arguments, breaking deadlocks and concluding talks. Once the training is over, the sales department employees are well prepared for holding talks with our existing and prospective clients. Advanced negotiations Sales department managers cooperating with our key accounts are offered extra training in trade negotiations. They can learn about advanced negotiation techniques and develop their skills of effective trade talks. Moreover, in the course of the training the managers find out about the chief types of personalities among negotiators and how to recognize them. 25 K ompania P Coaching for sales managers Every good manager has the ability of managing his or her team. Training in the realm of coaching is orientated towards methods of team management and implementing them in daily work. Our managers gain insight into effective coaching and the related standards. On top of that, they learn how to define their subordinates’ roles, how to divide labour and set goals to accomplish. Training for sales representatives: our partners’ employees Kompania Piwowarska ensures that sales representatives offering our products have the knowledge and skills useful in their daily work. KP organizes special training sessions for sales department employees of our key accounts. The scope of training is similar to that offered to our sales representatives. In the course of the training its participants learn about Kompania Piwowarska’s history, growth and its current position on the Polish beer market. There are also presentations of the KP brand portfolio and segmentation. Our key accounts’ sales representatives i w o w arska I S A G R also learn the modes of price management and fundamental techniques of direct selling. Total Sales Management In a team viewed as a chain, its vital link is the manager. Future success stems from the manager’s competence and skilful team work. Kompania Piwowarska’s top managers undergo a series of training sessions encompassing all key elements of effective management: sales analysis, marketing, trade marketing, HR corporate procedures, team management as well as effective employment of the existing procedures and IT systems. This comprehensive training prepares managers for competent goal implementation. Fundamental management skills for sales and distribution managers Kompania Piwowarska’s sales managers are offered training in the realm of fundamental management skills. This is how they learn about team management as well as effective area and time management in sales. Moreover, during training E A T P L A C E T O W O R K sessions they find out about developing interpersonal relations between managers and their team members. This part of training is dedicated to organizing internal meetings (both individual and group meetings) as well as motivating and disciplining employees. Team building Can you learn about team work from painting? Yes: this unusual task poses many opportunities of perfecting skills necessary in team work. The workshops reveal innovative talents and creativity but also reinforce organization skills and demonstrate that inspiration is not enough for a team to win. During the sessions the participants learn to apply their individual skills for the benefit of the group; they reinforce their self-management and prepare for problem solving. They become more aware of our brands, better understand the advertising campaigns’ goals and are proud of the company’s products. The training is an excellent opportunity for strengthening group relations. Kompania Piwowarska’s success is the result of, among other things, an unconventional approach to training! Problem solving Problem solving should be a useful skill rather than a procedure to adopt. This is why the training program resorts to corporate daily life examples, is interactive, interesting and uncommon just like the problems we often need to tackle at work. The sessions foster creativity, out-of-the-box approach and ingeniousness while consistency and self-discipline are maintained. The participants learn to think before they act, avoid rash decisions and ineffective work. The process of problem solving has been divided into six stages; following them ensures effective solutions. KP’S APPROACH TO TRAINING IS UNCONVENTIONAL 26 TEAM WORK CAN BE LEARNED EVEN BY PAINTING C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Internal Communication Kompania Piwowarska puts great emphasis on communication. Our monthly “Świat Piwa” is developed by representatives of various departments in the company and is regarded one of the best employee information channelS. It has also been highly appraised by an objective jury, scooping two Agape awards for the best internal magazine in Poland. We also employ the Intranet (an internal computer network referred to as the Infonet) and electronic mail as these tools offer speed. Employees who do not work with computers may resort to general-access computers in the breweries. Several times a month all employees receive an electronic bulletin entitled “KP News” where the latest information is shared and important upcoming events announced. We have developed a series of meetings “Welcome to the brand world” intended to give the employees better insight into the brands they produce and sell. Brands are also patrons of many contests where the employees can win gadgets, invitations to concerts, events and trips. In 2006 when Tyskie brand sponsored the national football team, approximately 200 KP employees accompanied ‘our footballers’ during matches in Germany. At Kompania Piwowarska we organize meetings hosted by different departments. The employees in charge have at their disposal a whole range of meeting scenarios; it is up to them how they will present to others themselves and their performance. This is how we support internal integration. Opinion polls conducted among Kompania Piwowarska’s employees suggest that direct contact with superiors and colleagues is an important, work-stimulating factor. We have arranged a programme of meetings with the Management Board members, entitled “En route to success”. The executives visit employees all over the country, presenting to them the company’s strategic plans and answering queries. “ŚWIAT PIWA” IS KOMPANIA PIWOWARSKA’S BULLETIN FOR THE EMPLOYEES. ITS MONTHLY CIRCULATION AMOUNTS TO 3500 COPIES NR 6 (65) 2007 LIPIEC NR 5 (64) 2007 CZERWIEC MAGAZY N FIRMOWY KO MPAN II PIWO WARS K IEJ MAGAZ Y N FI R MOW Y KO M PAN I I P IWO WAR S K I E J 'REU\VPDN URG]LVLÚ]F]DVHP ļWDNRPDUFH ļ WDN R PDUFH 3LOVQHU8UTXHOO PöZL0DUFLQ.\GU\ñVNL G]LHQQLNDU]NRPSR]\WRUSRGUöĝQLNLIRWRJUDğN 2QRZ\FKRSDNRZDQLDFK3LOVQHU8UTXHOOF]\WDMQDV $QLD'ÈEURZVND ļSLRVHQNDUNDDXWRUNDWHNVWöZLPX]\NLļ RSRZLDGDRVZRMHMLQVSLUXMÈFHM LNRORURZHMSU]\JRG]LH]PDUNÈ5HGGijV :LÚFHMRSURPRFMLķ5HGGijV:7ZRLFKNRORUDFKĵQDV 5HGGijV 27 K ompania P i w o w arska I S A G R E A T P L A C E T O W O R K The Social Fund The social fund is managed to finance holidays for our employees and their children, rental of gyms, swimming pools, organizing skiing classes as well as football and basketball tournaments. We also subsidize concert and cinema tickets and cover costs of department meetings. The largest part of Kompania Piwowarska’s social fund is dedicated to housing loans; last year they were taken out by 415 em- ployees. We also assist KP’s former employees (approximately 830 people) with one-off cash allowances and Christmas coupons. son. The employees may also socialize at the company’s expense in corporate pubs located in the breweries or invite their families to dedicated brewery tours. Our employees and their families have an opportunity to partake in recreational and cultural events, including Christmas parties and summer picnics when the company celebrates the end of the high sea- Kompania Piwowarska employees enjoy corporate canteens offering subsidized two-course meals at the price of PLN 5.00. Our employees are also eligible for monthly beer allowances. Kompania Piwowarska’s social fund is intended to fulfil the employees’ living, social and cultural needs, within the bounds of the company’s possibilities. All employees enjoy a health scheme and access to modern corporate clinics and dentist surgeries. Moreover, since April 2008 each employee and his or her family will enjoy a private medical care scheme, previously available only to managers. THE SOCIAL FUND COVERS THE COST OF THE EMPLOYEES’ AND THEIR CHILDREN’ HOLIDAYS 28 C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y KP Code of Conduct Kompania Piwowarska’s reputation has been built on the foundation of our COMPREHENSIVE social corporate responsibility as well as honest, reliable and trusting relations with the suppliers and clients. Maintaining ethical standards is of great importance to us, as exemplified in KP’s Code of Conduct. This operating philosophy is highly appreciated by our employees and trade partners. The Code’s fundamental rules include: • honesty and openness, • accountability, • justice, • mutual respect and dignity. These are rules underlying Kompania Piwowarska’s internal relations and the company’s operations in the business environment. We act for the benefit of the company but not at all cost; we strive to operate in a faultless way and to practise what we preach. The Code also establishes the rules of receiving and offering gifts; it explicitly forbids accepting and offering bribes. 29 O Openness is our middle name Everything about us Would you like to find out about Kompania Piwowarska or your favourite beer production? We have set up a special hotline operating round the clock. Every bottle of beer produced at KP bears the hotline number. We communicate with our consumers also by means of a comprehensive website system and personally, hosting thousands of brewery tours. Our regularly updated corporate website www.kp.pl includes detailed information on Kompania Piwowarska, SABMiller group and its board of directors, our beer brands, the company’ and the breweries’ history as well as latest sales-related data. Every month our website is visited by approximately 150 thousand people. Those who express special interest in our operations P E N N E S S I S O U R M I D D L E N A M Openness and transparency are among the ethical fundamentals underlying Kompania Piwowarska’s operations and social corporate responsibility. regularly obtain e-mail information upon registering in the virtual Information Centre. We inform the media about significant events taking place in the company, maintaining media relations with national, regional and local journalists. Specially for them, every three weeks we send out an electronic ‘Beer Information Service’. We are open to visitors; anyone who wants to contact us is welcome to the brewery touring centres. The Brewing Museum in Tychy, opened in December 2004 following our efforts, attracted nearly 100 thousand visitors by the end of May 2007. Every month 3.5 thousand people visit the Museum. Lech Touring centre attracts every month 1.8 thousand people; it has attracted a total of 65 thousand visitors since its establishment in May 2003. “The Brewing Museum in Tychy started operations in 2004, a special year for the Tychy Brewery when it celebrated 375 years of existence. The Museum is the epitome of Tyskie Browary Książęce, combining glorious tradition and modernity. A visit to this unusual venue and a brewery tour offer an excellent opportunity to communicate the origin and the future of the best selling beer brand in Poland – Tyskie Gronie”. Dorota Janas Coordinator a t t h e B r e w i n g M u s e u m i n Ty c h y 30 E C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Communication with the clients and consumers Complaints procedures providing guidelines for handling product complaints are intended to provide prompt and effective customer and consumer service. They are also part of our quality management policy. any time and will scrupulously investigate the application. The consumers may raise their complaints via a hotline 0-801 133 133 (charge as per TP SA local calls). The company commits to responding to consumers within 24 hours. Should anyone question the quality of our beer, we will accept the complaint Communicati on with partners and suppliers We have established genuine partnership and long-term, solid trade relations with our contractors offering them good trade conditions, direct communication and friendly personal relations. Last but not least, our cooperation relies on the satisfaction from producing and trading our products. KP’s five strategic priorities include capturing the market together with our trade partners. This is why the company ensures that cooperation with distributors is expanded in a best professional way; it calls for trust, understanding and constant improvement. An ongoing exchange of experience and opinions improves supply quality and the resulting business growth. Kompania Piwowarska’s goal is to become a trade partner of choice, supplying not only the best products but also ensuring highest-quality business relations. As part of a Partnership Program introduced over a year ago, the leader of the Polish beer market has launched a number of initiatives supporting trade partners, offering specialist business training developed jointly with Harvard Business Review Poland. It is the Polish edition of the most prestigious management magazine published since 1922 by Harvard Business School, the best institution of the kind in the world. This is an education program comparable with the latest editions of MBA-like programs; its goal is to strengthen relations with KP’s vital distributors, to build up their knowledge of management and hence enhance their professional operations. Kompania maintains communication with its key accounts by means of DCP (Distributors Communication Portal). It is a tool for managing the cooperation process. Moreover, KP allows its partners to purchase fixed assets at the most favourable terms. They may enjoy Kompania Piwowarska’s discounts or purchase used fixed assets straight from KP. The Partnership Program is of a dynamic and developmental nature. This year and in the years to follow, we may extend it with new elements. The team in charge of the program in KP ensures that it is flexible, easy to adapt in line with the market needs and the contracting parties’ expectations. We are involved in regular customer satisfaction surveys hoping to gain objective insight into the quality of our efforts and our mutual relations. An independent research company conducts the survey twice a year. The customers have the liberty of indicating the most vital aspects of cooperation and evaluate the brewers against these criteria. This ensures the survey’s objectivity. We also survey the customers’ expectations and measure them against all brewers’ performance. This is how we can view ourselves the way our customers see us. Equipped with the knowledge on what is truly important for the beer industry clients we can adjust our cooperation offer to effectively compete on the market to our mutual advantage. “If a client has doubts about our product quality, an authorised KP employee visits the location and investigates the complaint on the spot. A complaint report is drawn. The client is attended to by his or her immediate supplier while the acknowledgement of the complaint is recorded in the report. The defective product and the report are transferred to the respective depot (where a correction invoice is issued for the immediate recipient), then to the Central Warehouse where it is handled by the complaints team. All complaints-related information, including the handling time and the decisions made is recorded in the complaint report. The faulty product is subjected to laboratory research. Depending on the circumstances, it may involve sensory appraisal, physical and chemical examination or microbiological research. Whenever necessary, beer samples are sent out to external laboratories. On top of that, in order to confirm or eliminate a defect (both in production and packaging) extra tests and simulations are conducted, photocell readings are checked and the production stages are reconstructed for particular beer batches. Once all vital information is gleaned, corrective or preventive measures are adopted. In the past year, an average of 46 complaints a month were lodged over the phone. They usually pertained to incorrect handling of consumer promotions, cooperation with the company’s sales representatives and beer quality. The latter’s monthly average amounts to 13”. Katarzyna Kotarska Complaints Manager 31 O “Kompania Piwowarska has employed a reporting system for filtering data and analyzing its structure in many ways. This allows to trace how sales revenue information is broken down to components by regions, assortment groups, sellers, sellers and regions, sellers and assortment groups, assortment groups and sales channels etc. The reports make the information genuine, present the company’s overall operations and activities conducted by the smallest teams, the organization’s strengths and weaknesses, areas calling for improvement as well as the reasons of failure and success. The reports also provide managers with a very important top-down analysis”. Danuta Nyckowska IT Solutions Manager P E N N E S S I O U R M I D D L E N A M E The reporting and information policy Openness relates also to the internal information flow. Which products enjoy the biggest share in EBIT? Do they sell the same way in all regions and seasons? How much do we spend on promoting them in comparison with the other products? Who are our top ten suppliers? What is the influence of the top ten products on EBIT? Nearly all executives ask many such questions. In order to answer them i.e. promptly and easily gain access to information necessary in management, one needs a good tool for analysing phenomena observed in the company. Transparency of financial reporting After the scandal accompanying accounting frauds and the resulting bankruptcy of Enron and other companies, politicians and business people realized that it was necessary to counteract bad practice and frauds in financial reporting processes in large companies. On 30 July 2002 president Bush signed into law an act submitted by Paul Sarbanes and Michael Oxley stating it included “the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt.” The main benefits resulting from SARBOX (requirements of the restrictive Sarbanes Oxley Act ) include investors’ trust, high ethical standards and best business practice, recoding and streamlining key processes as well as increasing control over execution. High standards imposed by SARBOX are followed in SABMiller companies and have 32 S been gradually introduced to Kompania Piwowarska. Maintaining SARBOX standards and guidelines relates both to business and technology (IT). One of the titles of the act relates to establishing and maintaining internal controls designed to ensure accurate financial disclosure including information technology controls. They ensure the desired quality and reliability of financial reports generated by means of information systems. They pertain to financial and accounting systems, fixed assets management and storage systems to name a few. Technology-related activities are part of an IT General Controls (ITGC) sub-project. Completion of numerous complex tasks and KP employees’ great involvement have made it possible to reach an advanced stage of preparations for compliance with SARBOX requirements. C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Media relations Kompania Piwowarska provides information on the company’s operations on a regular basis. By means of an external electronic bulletin, Beer Information Service, our releases reach national, regional and trade media. We make sure that the information is up-to-date and accompanied by abundant images. Our corporate website www.kp.pl includes the Press Office containing exhaustive information on Kompania Piwowarska’s operations as well as interesting articles and reports devoted to the beer industry. „Marketing & more”, sierpień 2007 r. On 1 August 2007 “Marketing & more” magazine published a ranking list of companies appreciated for professional media relations. Kompania Piwowarska was ranked 1 st among 77 considered companies in Poland. OUR OPEN AND PROFESSIONAL MEDIA RELATIONS ARE HIGHLY APPRAISED 33 fighting for a ‘ european ’ drinking standard Fighting for a 'European'’ drinking standard After consuming a reasonable amount of alcohol we tend to feel relaxed; however, our reaction time extends nearly twice! We also tend to lose our self-criticism. Lack of moderation may pose a threat to health and life, not only of the drinking person. On the other hand, many beer lovers would agree with Plato who claimed that “he was a wise man who invented beer”. After all, beer stands for a lifestyle and epitomises fun in good company. Tyskie brand beer picnics are symbols of the beer culture in Poland. Beer accessories collectors gather mats, unusual bottles, crowns, labels and mugs. Many locations all over the world offer beer museums. The first Beer Touring Centre in Poland, Świat Lecha (Lech World) was originated in Poznań in LBW (Lech Brewery). Those who appreciate beer culture should be avid propagators of responsible alcohol drinking. In order to truly enjoy the taste of beer one should consume it in a moderate and reasonable way. Beer is alcohol The numerous different types of beer in the world vary significantly in flavour and aroma but they are all alcoholic beverages. This is why consumption of beer as well as wine or vodka calls for special caution and moderation. by 0.3-0.5 second. When intoxicated, we tend to have trouble with fine movements. More importantly in the context of drinking and driving, our judgement is impaired and we are not capable of a fine mental analysis. Alcohol is quickly absorbed into the bloodstream and it can diffuse into nearly every biological tissue of the body. The more alcohol we consume the bigger the blood alcohol concentration. Drinking alcohol has nice effects: initially, alcohol generally produces feelings of relaxation and cheerfulness as well as a sudden rush of euphoria, self-confidence and audacity. At the same time a drinking person’ reflex is impaired and time of reaction is longer. After an even small dosage of alcohol, a driver’s correct reaction time of about 0.5 second is extended The largest part of alcohol is removed from the body by the liver; however, the process tends to be slower than consumption. Therefore blood alcohol content may remain high even a long time after drinking. The average rate of recovering from intoxication amounts to 0.085-0.1 per mill per hour for women and 0.1-0.150 per mill for men (per mill stands for mass per alcohol volume). Hence a well-built man should wait for at least 6 hours upon drinking a shot (100g) of vodka before he starts driving. 34 “It is high time for Poles to learn how to drink in a polished, moderate way, the European style. We should treat alcohol in a responsible way being aware that it is not intended to quench thirst. Most people with alcohol problems were exposed to drunkenness at home, often as children. Mass alcohol abuse incurs disastrous health, family and emotional losses (among those who drink and their families). All this results in heavy economic losses”. Ewa Woydyłło-Osiatyńska P h . D . , Ps y c h o l o g i s t d e a l i n g w i t h a d diction treatment in the Addiction T h e r a p y C e n t r e a t t h e Ps y c h i a t r y a n d N e u r o l o g y i n s t i t u t e i n Wa r s a w Western researchers of beer consumption models often refer to “binge drinking” related to a risky, unhealthy and dangerous mode of drinking alcohol with the intention of becoming intoxicated. A person who gets drunk quickly is exposed to the danger of being robbed, mugged, turning aggressive or irresponsible (e.g. drunken driving or use of dangerous devices). C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Put a curb on drinking - do not drive! The project’s goal is to discourage drunken driving. It is targeted at young people aged 18-30 and has been conducted under the auspices of the European Committee. hol that evening and will drive his or her friends home. Alco-goggles showed how the driver’s mental and motor skills were retarded by alcohol. The project has proved effective: in Łódź the police recorded 35% less drunken drivers than the year before. In Poland twelve out of a hundred accidents are caused by drunken drivers. The problem has been examined by social activists, politicians and alcohol producers. An education campaign entitled “Driver – Sober!” was launched in 2006 on a national scale by the Polish Brewers Association. The project was inaugurated in November 2006 in Łódź and then transferred to other Polish cities. On weekends (police statistics indicate that drunken drivers tend to cause the biggest number of accidents on weekends) selected pubs and clubs were visited by “Safe Party Traffic” animators. They encouraged the guests to get home safely by a night bus or a taxi (with a special discount), to select one person from among a group who will not drink alco- Alcohol - Underage Access Denied Kompania Piwowarska has been involved in similar activities for years. The first project was conducted in 2001 in Poznań in cooperation with the City Office and the Municipal Police Station. A project dubbed “Don’t sell alcohol to minors” was aimed at reminding sales assistants and the general public about the ban on selling alcohol to minors. A parallel project entitled ”I’m fair. I don’t sell alcohol to minors” was conducted in Tychy. The pilot programmes in Poznań and Tychy proved successful when put to a test in projects conducted twice nationally in 2003-2006. They were organized by the Polish Brewers Association together with the State Agency for Prevention of Alcohol Related problems. The activities, named “Your protest counts” were intensified during summer holidays. Their goal was to change attitudes of sales assistants as well as individuals witnessing sales of alcohol to minors. The campaign consisted in TV commercials, posters, leaflets for sales assistants and billboards. A hotline – the Not indifferent Line – was set up. Local authorities joined the project with the task of controlling off-license shops by means of the so-called mystery shoppers (juvenile-looking persons attempting to purchase alcohol). Shops failing to abide by the law received warning yellow cards; shops where the underage were refused alcohol received fair seller’s certificates. This claim accompanies nationalscale social projects co-organized by Kompania Piwowarska, promoting responsible alcohol drinking among adults. Although selling alcohol to the underage is a crime the law tends to be violated on a regular basis. Individuals witnessing the underage purchasing alcohol usually could not care less. 35 fighting for a ‘ european ’ drinking standard Warning beer mats Thousands of beer mats sported the winning designs of a graphic contest dubbed “Responsible alcohol consumption”. The project is an extension of “Alcohol – Underage Access Denied” devised in May 2006 by Kompania Piwowarska in cooperation with the Police Headquarters and the Academy of Arts in Poznań. 36 The aspiring artists had to tackle three subjects: ‘There’s only one type of intoxication’ project was dedicated to the problem of drunken driving. ‘Several percent of caution less’ was a reminder of the threat of being robbed under the influence. The third subject: ‘Minors access denied’ referred to the ban on selling alcohol to the underage. Over 100 contestants from all over Poland and from abroad submitted 387 works. The winning works were duplicated on beer mats, posters and table top stands in pubs. The works were also exhibited on billboard all over Poznań. C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y SABMiller PLC's Alcohol Manifesto There is a number of bans restricting alcohol producers’ advertising activities. These bans have been included in the Act on Upbringing in Sobriety and Counteracting Alcoholism; failure to abide by the bans involves liability. We also support self-regulated marketing which establishes self-imposed restraints and standards that often go beyond legal standards. Our Code of Commercial Communication forms the foundation for our self-regulated practices. Our commitment to promote alcohol responsibly is evidenced in the marketing messages we send – or won’t send – to our customers. In every country where we do business the Manifesto is guarded by special committees which gain insight into relevant advertising, promotion and other commercial communication beforehand to prevent broadcasting or placement of any messages violating the rules. A careful reader will spot in the Manifesto references to the so-called self-regulating codes of the brewing industry applicable in particular countries. In Poland such a code of conduct was introduced many years ago (in July 1998) although its observance is sometimes dubious. The crux of such industrial codes is in brewers watching each other. Bearing the fierce competition on the Polish beer market, the efficiency of such controls may be much higher than the most restrictive state controls. Introduction Responsible alcohol consumption may positively influence the quality of life of alcohol consumers. There is an expanding body of evidence to show that the responsible consumption of alcoholic beverages by those not at risk can be compatible with a healthy and balanced lifestyle. This is why SABMiller proudly offers its beer brands to the consumers. There is no denying that excessive or irresponsible alcohol consumption may adversely affect one’s personal and social life as well as health. SABMiller believes it has a legitimate and positive role to play in promoting responsible drinking. The Goals 1. To promote responsibility in the use of beverage alcohol, as part of a healthy lifestyle, while at the same time endeavouring to prevent alcohol misuse and abuse. 2. To promote in our commercial communications our own brands among those not at risk who have made the decision to consume alcoholic beverages. 3. To ensure that the commitment to responsibility remains seamless across the company, while at the same time acknowledging cultural differences and differences in approach dependent on the nature of the company’s investment in a particular country. Alcohol policy In order to accomplish this objective, the following policy applies to all SABMiller companies 1. In addition to complying with existing national legislation, statutory regulations and industry self-regulatory codes, group companies adhere to the SABMiller plc Code of practice for commercial communication. 2. Internal compliance committees monitor and review commercial communications and ensure that these comply with the letter and the spirit of the Code. 3. Wherever appropriate, SABMiller plc group companies include responsible messages in commercial communication. 4. SABMiller plc group companies have an employee alcohol policy in place, which provides guidelines on responsible behaviour. 5. SABMiller plc group companies take steps to educate the retail trade on the responsible use of the company’s products and, in particular, to prevent the serving of underage or intoxicated patrons. 6. SABMiller plc group companies take steps to educate consumers on the responsible use of the company’s products and in particular on such issues as underage drinking, and drinking and driving. 7. SABMiller plc group companies encourage, where possible, efforts to collect data on patterns of alcohol consumption and associated problems, and encourage research projects that will provide data to direct efforts to combat misuse. 8. SABMiller plc group companies cooperate with, and positively influence, the alcohol industry nationally and internationally to promote the responsible use of alcohol. 9. SABMiller plc group companies collaborate with relevant national and international authorities, and non-governmental organisations, to develop effective controls and programmes to promote responsible alcohol use. 10. SABMiller plc group companies formally report on progress made in terms of the policy. 37 fighting for a ‘ european ’ drinking standard SABMiller's Commercial Communication Code Guidelines for commercial communication accompanying alcoholic beverages: commercial communication encompasses all media (including the Internet and text messages), packaging, promotions, product placement, merchandising, sponsoring and market research. Fundamental rules 1. Commercial communication must: • be legal, decent, honest and truthful and conform to accepted principles of fair competition and good business practice, • be in keeping with local cultural values, • be prepared with a due sense of social responsibility and be based on principles of fairness and good faith, • comply with all regulatory requirements, • not be unethical or otherwise impugn human dignity or integrity, • be mindful of sensitivities relating to culture, gender, race and religion, • not employ themes, images, symbols or figures, which are likely to be considered offensive, derogatory or demeaning. Protection of persons under the legal drinking age 2.Commercial communication may not be directed at persons under the legal drinking age (or in countries without a legal drinking age, to persons under the age of 18). 3.Commercial communication will not incorporate images of people who are, or look as if they were, under the legal drinking age pertaining to the particular 38 market (or in countries without a legal drinking age, to persons under the age of 18), unless there is no suggestion that they have just consumed, are consuming or are about to consume alcohol. 4.Commercial communication may not employ characters or icons which have unique appeal to children. Responsible drinking 5.Commercial communication may not feature or encourage irresponsible, risky or excessive drinking. 6.Commercial communication may not portray persons in a state of intoxication nor in any way suggest that intoxication is acceptable. Circumstances calling for sobriety 9.Commercial communication may not depict or suggest consumption of alcohol beverages under circumstances that are generally regarded as irresponsible, improper or illegal, e.g. before or during any operation requiring sobriety, skill or precision. Health aspects 10.Commercial communication may not depict or include pregnant women. 11.Commercial communication may not imply that alcohol beverage consumption is essential to business, academic, sporting or social success. Violence and anti-social behaviour 7.Commercial communication may not present refusal, abstinence or moderate consumption in a negative light. 12.Commercial communication may not have an association with violent or antisocial imagery or behaviour, or with illicit drugs or drug culture. Alcohol content Success 8.Commercial communication may not encourage the choice of a product because of its higher alcohol content or intoxicating effect. Factual information for the guidance of consumers about alcoholic strength may be included, dependent on existing regulatory requirements. 13.Commercial communication may not imply that alcohol beverage consumption is essential to business, academic, sporting or social success. 14.Commercial communication may not portray nudity or suggest that alcohol beverages can contribute directly to sexual success or seduction. C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Polish Breweries Advertising Code The Code’s role is to provide guidance with respect to our beer brands’ marketing communication in context of the Alcohol Manifesto and any legal and industry-related requirements already existing in Poland. The term ‘marketing communication’ encompasses all media (including the Internet and text messages), packaging, promoting, product placement, merchandising, sponsoring and market research. This is an agreement on establishing rules of self-control in advertising in the beer industry in Poland initialled on 8 June 2005 by members of the Polish Brewers Association and other breweries respecting the Code. Woodstock Respite Kompania Piwowarska was the first brewer in Poland placing on Tyskie cans an image prompting responsible alcohol drinking. graphic design appealing to young people were aimed at drawing the participants’ attention to responsible drinking. During the Woodstock festival KP would sell Tyskie beer cans from a special limited edition labelled “Don’t take it all, you’re not a mug”. The same claim was also placed on plastic beer cups and posters installed in the festival area and the adjacent taverns. A clear, straightforward message and Kompania representatives would hand out stickers saying “I don’t buy booze for minors”, encouraging responsible social attitudes. Personnel serving beer from over 90 dispensers underwent special training to prevent serving alcohol to the underage. Woodstock Respite is regarded the biggest open air rock festival in Europe, attracting every year over 100 thousand rock fans from all over the Old Continent. In 2007 Tyskie, a brand from Kompania Piwowarska’s portfolio, was a sponsor of this unique event for the seventh time. 39 our logo Our logo stands for highest quality Our philosophy says: „Anything we do, we do it well the first time”. Following this philosophy, we maintain the standards of the “World Class Manufacturing”. Our focus on the customer, the market and the competitors results in our care for high quality, stability and safety of our products. In order to ensure health safety of our products, we have implemented the Hazard Analysis and Critical Control Point (HACCP) based upon requirements of the international standard ISO 22000. In July 2006 KP was the first brewer in Poland to stands for KP’s relations with the suppliers are based upon transparent and fair rules. A special auditing program allows to check the sup- 40 q uality Kompania Piwowarska’s logo is not only a guarantee of the highest possible quality; it is also a guarantee of safety TO the consumers. receive an accredited certificate confirming compliance with the standard. The system allows a company to perfect its operations when the company’s goal is to fulfil its clients’ and customers’ requirements and increase their satisfaction. Quality Management System and other innovative technological solutions make it possible to keep up high and stable quality of all types of beers. We also take preventive measures in order to eliminate the causes of potential deficits. Desired end quality starts with highest class raw materials: water, malt, yeast and hops. Care for quality relates not only to the production stage but also the product’s ‘transfer’ to the consumer. This resulted in launching new models of bottles and crates for transport. At every stage of the production process and distribution, the At the same time we take care of our suppliers who benefit from KP’s success. Together with the suppliers we implement the Sustainable Growth programme aimed at raising the suppliers’ awareness of environmental issues, equal opportunities regardless of sex, age, religion, in line with KP’s social responsibility philosophy. Managing the Suppliers’ Quality It is a fundamental assumption that Kompania Piwowarska’s products need to be of highest quality and safe to the customer. This assumption has far-reaching consequences: Kompania cooperates not only with the suppliers who can satisfy our strict quality-related requirements. We prefer suppliers who offer required quality and production systems. The greater the suppliers’ influence on the end product the higher the requirements. highest pliers against compliance with established criteria. These companies are regularly evaluated by a special evaluation system (SPES) and receive coherent feedback on their work quality, products and services as indications of constant improvement. The suppliers also need to fulfil ISO requirements while the supplied materials need to comply with exact quality requirements. This way we can exclude potential risk related to introducing lower quality materials to beer production and packaging. „The consumers’ priorities include stable quality of beer and its safety. Both the quality and safety of beer are largely affected by the ingredients used in the production process as well as the suppliers’ production methods. Kompania Piwowarska is supplied with raw materials and packaging from various sources. Some of our suppliers have several production sites, each of them supplying KP with same raw materials or packaging. In view of such a large number of suppliers and the multitude of production sites, Supplier Quality Management (SQM) is a tool for controlling the quality of supplied materials. It assures unchanged quality and safe raw materials”. Michał Marcinek Leader: Seller Quality Management C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Traceability All KP activities are accompanied by the company’s care for the consumer. It relies on various tools including traceability, a system devised for close product tracing in order to protect the consumer. It allows us to trace the product at each stage of the cycle, including the employed raw materials, the product batch location at various stages of production, processing and distribution. The system gives us information about the origin of all the raw materials and ingredients used to brew our excellent beer. Information on a given batch, its origin and movement, is monitored and recorded. The last stage of the traceability process consists in determining the recipient of the goods. The reason behind our efforts is quite simple: in the case of a complaint, the system allows for prompt and effective withdrawal of defective products from the distribution network. The system allows to determine the origin of the raw materials, the content of materials and packaging of a given batch of beer and to identify the clients who purchased beer from a particular batch. How does the system work? Tracing a product is in compliance with decree no. 178 /2002 of the European Parliament and the Council of Europe which introduced general legislation and requirements for food products; it refers to all food producers and distributors operating in the European Union. According to the regulations, since 1 January 2005 Kompania Piwowarska has been accountable for applying the traceability system. In line with the legal regulations, it encompasses directly the supplier, the production process and the end user. All employed raw materials, semi-products and the production process as well as all end products, auxiliary materials and packaging which come into contact with beer as well as waste for further use (e.g. spent grain as fodder) necessitate identification (they are defined and marked as batches). KP has implemented WMS-SKK system, an electronic traceability system for packaging and distribution. Each pallet with KP beer is marked with a unique label bearing an 18-digit bar code. This way every move of the pallet is registered in the system. “Owing to a daily sensory analysis (beer tasting by means of the sense of taste, smell, hearing, sight and touch) the tasting panel ensures regular high-quality product for the consumer. Even the most precise laboratory devices used for analysing beer are not able to determine the reactions between chemical compounds responsible for the beer’s flavour and aroma. This makes information provided by the tasting panel simply indispensable; it is reported to the technologists or departments in charge of product development. Regular beer tasting at various stages of the production process (the raw materials, semi-products, end products) helps to achieve the desired sensory characteristics of the end product. An experienced employee will trace possible undesirable flavours or aromas in beer; excess or non-existence thereof significantly differentiates the end product. Equipped with his/ her sensitivity and skills developed during regular training sessions, a beer taster is among the most demanding consumers”. Joanna Wasilewska High quality of KP products in trade At Kompania Piwowarska, maintaining high quality of products in trade is one of priorities related to quality management; after all, this is where our beer is tasted by consumers. What really counts is the consumers’ appraisal of our brands. KP employs a special team dedicated to such multi-stage activities. Distribution audits ensure that products on their way to the distributor are of best possible quality. KP has established respective cooperation with its trade partners. The quality team pays the distributors in a region two visits a month. This way they can check in a comprehensive way if beer from KP is appropriately stored and replaced. During the visits, training sessions for the KP ORGANIZES TRAINING SESSIONS FOR BARTENDERS Specialist: Sensory Analysis a n d Q u a l i t y i n Tr a d e distributors are held in the realm of quality-oriented modes of KP beer handling. All this is to ensure that the clients and consumers receive malt liquor of remarkable quality. This is why, the consumers are most willing to repeat their purchase of our beers again and again. Another link in the chain monitored by the quality team pertains to retail and on-premise sales. Points of sales are visited, draught beer turnover and quality are inspected (in the on-premise channel). Training sessions for the pubs personnel are organized while KP ensures regular, professional servicing of beer dispensing devices. 41 I N T U N E W I T H N A T U R E Environmental protection: our priority Within four years, the Poznań brewery has managed to reduce by half CO2 emission; it is the most prevalent gas identified as contributing to global warming. Care for the natural environment where we live and work is one of Kompania Piwiwarska’s most basic priorities. We extend our breweries by introducing new technologies and streamlining materials management, not only improving our business performance but also ensuring that our investment is environmentally friendly. By perfecting our safety and control systems we limit the risk of grave threat to the environment. This is how we practice the values we preach, ensuring that the local communities benefit from our existence. At KP we coordinate all ecological activities by means of an environment management system compliant with ISO 14001. The activities rely upon the growing awareness of environmental issues among Kompania Piwowarska’s employees. The system has brought about remarkable results: every year we decrease our consumption of energy and water and reduce environmental pollution. ing programmes etc. On the recognised industry measure, the amount of water used to brew a hectolitre of beer, we have achieved a 3.6 ratio against over 10.0 ten years ago. Power Poland is among European Union countries enjoying the lowest electricity consumption per capita. KP’s environmental investments are no exception from the rule; the company’s performance complies with the EU standards of thermal and electric energy consumption (brewing industryspecific). Our breweries’ total thermal energy consumption amounts to approximately 67-74 MJ/hl of beer, depending on the type of fuel being burned (natural gas or oil). This impressive performance results from excluding coal as fuel: the breweries in Poznań and Tychy are equipped with modern natural gas and oil boilers while the brewery in Białystok resorts to external supplies. Electricity consumption approaches 6.2 kWh/hl beer; in the past two years we managed to decrease it by 0.4 kWh/hl. Energy production triggers off emission of carbon monoxide and dioxide as well as sulphur dioxide to the atmosphere both from local energy sources in the breweries (usually boilers) and industrial works (power stations). Owing to technological innovations, since 2003 CO2 emission in Water Water is one of the basic raw materials used in beer production. We have our own water intakes (ground and surface water) or resort to municipal waterworks; the water is treated on site. We have managed to decrease water consumption owing to the so-called C.I.P. (Cleaning in Place) technology in a closed-circuit system, supervision over washing by hand, exchanging the machinery to less water-consuming, streamlining devices and water pipes wash- 42 INNOVATIVE SOLUTIONS BRING ABOUT CONSTANT REDUCTION OF WASTE ACCOMPANYING BEER BREWING C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y the Poznań brewery has been reduced by half while CO emission has been reduced nearly fifteen times over! In the other KP breweries the emissions have been gradually minimized. Waste Innovative solutions contribute to constant reduction of the amount of waste accompanying beer production at KP. In Poznań production waste has been reduced by over 1/3 against 2003, in Tychy by 20% and in Białystok by 40%. Brewery waste is biologically degradable. Its concentration of organic substances is higher than in municipal waste; it is usually referred to by means of the chemical oxygen demand (COD) and suspension. Organic waste comes from raw materials, product loss, organic waste’s contact with sewage and from organic washing agents. Efforts to reduce waste pollution are among our priorities. As an environmentally friendly company, we boast of exemplary waste management. The majority of wastes produced in our operations are recyclable or reusable to some extent (live-stock fodder, fertilizer). By volume the largest proportion of our operational wastes is organic by-products from the brewing process. These include spent grain from wort filtration, trub (slurry from the wort boiling process), dust from TEN YEARS AGO, IN ORDER TO PRODUCE 1 HECTOLITRE OF BEER WE USED THREE TIMES MORE WATER malt, thick liquid yeast and used kieselguhr as filtered post-fermentation sediment. In the process of beer packaging and storing solid wastes are produced, including cullet, aluminium cans, pallets, crates, polyethylene foil, carton boxes and labels. Sorted before collection, most of the waste is recyclable. Metal scrap as well as used oil and lubricants are by-products of machinery operations. The boiler, waste processing plant and water treatment plant as parts of the brewery production facilities may be sources of other types of waste. KP’s efforts to reduce water production have borne fruit: since 2004 the amount of recovered and recycled waste in the breweries in Poznań, Tychy and Białystok has nearly doubled. Recovery and recycling Launching packaged products to the market, KP is obliged to ensure packaging recycling for each type of waste. For example, 40% of aluminium cans introduced to the market in 2007 needed to be recycled. Following the Ministry of Natural Environment’s instruction, the percentage of waste recycling will grow to reach 50% in 2014. KP EASILY ACHIEVES EUROPEAN UNION ENERGY CONSUMPTION STANDARDS KP has already introduced special procedures to recycle and recover as much as 97.1% of all waste. These procedures include recovering and sorting waste in places of its origin and temporary collection in designated areas. We cooperate with a company specializing in waste recovery and recycling. It offers its expertise, experience as well as technical and organization potential and a network of packaging waste collecting for further recycling. As Kompania Piwowarska’s attitude to waste management complies with all statutory requirements with respect to recycling the company does not need to pay the so-called product fee for launching packaged products. KP devotes a lot of attention to its products packaging, bearing in mind minimizing its adverse influence on the natural environment at the design stage. Raw materials Raw material losses in the production process (especially of malt and beer) trigger off bigger consumption of electricity and water as well as more waste produced. Reduced production efficiency may result from low raw materials quality, non-streamlined wort boiling, low efficiency wort filtration or considerable wort turbidity disrupting beer fermentation. Systematic elimination of the mentioned adverse phenomena contributes to environmentally friendly, more effective use of raw materials and limiting water and electricity consumption. 43 I N T U N E W I T H N A T In Tune with Nature “The idea of an environmental programme for Kompania Piwowarska employees was explored as an extension of the company’s environmental protection policy. Production standards, procedures and technology are capable of controlling the machines and processes. The rest is up to the people. It is our ambition to environmentally modify their conduct and attitudes as part of the programme. The goal of “In Tune with Nature” is raising our aware- KP’s social responsibility is not limited to monitoring corporate operations as part of an environmental protection scheme. In April 2007 KP launched “In Tune with Nature”, by Polish standards a pioneer programme of environmental education among employees. Its goal is to raise awareness of the natural environment and demonstrate how important it is to care for it, all done in an attractive, funny way. “In Tune with Nature” aims at giving ecology a human touch. Rather than discourage with pathos and threaten with catastrophic visions, the programme relies on humour and surprise. The program’s website encourages exchange of opinions and presents materials submitted by employees. Part of it is dedicated to children, weekend activities, photo gallery, environmental facts and trivia and recommended website links. The programme is leave our footprint on the earth, afas well as our disposable income. The simple truth is that ecology saves money”. Wojtek Mrugalski Internal Communications Manager EMPTY BEER KEGS USED AS CONTAINERS FOR USED PRINTING CARTRIDGES, BATTERIES AND OTHER SOLID WASTE 44 R E supported by experts in the field of recycling and environmental protection. The contest winner has an opportunity to have a once-in-a-lifetime adventure: a trip to one of the most remote and exciting corners of the world. The winner needs to score over the other participants in quizzes, visiting the website and participating in environmental trips to nature reserves. ness to the fact that every day we fecting our environment, our future U “IN TUNE WITH NATURE” IS AN ATTRACTIVE PROGRAMME FOR RAISING KP EMPLOYEES’ ENVIRONMENTAL AWARENESS C O R P O R A T E S O C I A L The programme is aimed at reducing the amount of waste and segregation thereof, saving water, electricity and thermal energy both at work and at home. All participants R E S P O N S I B I L I T Y will find out that when we care for the environment we actually raise the quality of our own lives. Since April 2006 the Poznań brewery has boasted a new, environmentally-friendly gas and oil boiler. It allows the brewery to expand and enjoy extra energy supplies. This investTHE OLD BOILER WAS DISMANTLED IN 2006 ment has allowed for lowering sulphur emission (by 99%) and THE NEW, ENVIRONMENTALLY-FRIENDLY GAS AND OIL BOILER STARTED OPERATION IN APRIL 2006 R. carbon dioxide emission (by 50%) while dust emission has been completely eliminated. The boiler is fully automated and controlled by a computer which sends its ‘supervisor’ a text message in the case of any failure. The investment has also produced tangible economic benefits: electricity consumption savings of 0.4 KWh/ hl of beer and reduced water consumption. 45 C O M M I T M E N T T O L O C A L C O M M U N I T I E S Commitment to local communities Kompania Piwowarska donated over PLN 1.5 million in 2007 alone to COMBAT social exclusion on aCcount of poverty. Financial sponsoring also supports culture, sport and local communities’ activities. KP’s social involvement improves the corporate image while the company assumes an identity and reliability in local communities. The company’s ability to establish itself in this community is a value by itself. While KP is a national company, we operate as part of local communities where we focus our social involvement. Our presence in Poznań, Tychy and Białystok – locations of KP breweries – involves more than significant tax revenues (real estate, means of transport, some income taxes) for the benefit of the municipal and regional authorities. We also build strong relations with local communities, supporting important sports and artistic events as well as social activities. Our support positively affects the inhabitants’ standard of living and the stability of our environment. Examples of musical, sports or theatrical ventures suffice to demonstrate the extent of our involvement. KP also supports social organizations; we have donated modern equipment for hospitals in Białystok, Tychy and Poznań. The total amount of donations in the fiscal year F07 (from 1 April 2006 to 31 March 2007) amounted to PLN 1.85 million! We ensure that not only our employees but also the suppliers, clients and con- 46 sumers as well as the local communities benefit from the location of our brewery in Białystok. We also support The Dramatic Theatre named after Józef Piłsudski and the Podlasie Region Opera and Philharmonic Hall. Together with the Municipal Office and the Białystok Cultural Centre we organize events enjoyed by the city dwellers: “Days of the City”, “Days of Contemporary Art” and “Autumn Blues”. We take care of the environment by planting linden trees along Białystok’s main street and hence adhering to the city tradition. We also sponsor the Białowieża National Park (via “Żubr” brand). the region we are involved in activities aimed at making city life more attractive: “Tyskie sponsors benches in the Chorzów Park”, “Tyskie sponsors fountains in the Chorzów Park”, “Tychy Days”. We support cultural establishments: the Small Theatre and the Municipal Museum (the latter is located in the hospitable, painstakingly renovated historic buildings of the Tychy brewery). In Poznań we support the established Raczyński Library and the cult Teatr Ósmego Dnia (Eighth Day Theatre), appreciated both at home and abroad. We also make sure that KP participates in Tychy’s popular city events: “Work Song Port – Sea Shanties” and “Tyskie Theatre Meetings”. In the city and in OUR SOCIAL INVOLVEMENT FOCUSES ON LOCAL COMMUNITIES C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y For What It's Worth In total, PLN 3 million has been received by non-governmental organizations submitting projects as part of two editions of a social initiative “For What It’s Worth”. The winning projects enjoyed social trust and opinion of the best of the bunch. Kompania is part of the society and intends to play an important role in social life by raising the local communities’ standard of living. Poverty is a huge problem in Poland, largely discussed but not tackled. A research conducted by Pentor Institute at KP’s request indicates that penury is a key factor contributing to social exclusion. It is also a serious problem to the Polish society; as much as 6% of the population live in poverty while another 65% are concerned about facing this situation in the future. The program commenced in June 2006. It was originated for the benefit of the most needy individuals who live beyond the society or are threatened with such a prospect on account of poverty. The initiative’s key element is a grant contest for public benefit organizations submitting projects of supporting socially excluded individuals. The program is oriented to promoting long-term activities and those resulting in actual social reintegration of selected individuals and groups. The first edition of the contest attracted nearly 100 non-governmental organizations. Experts, representatives of scientific circles and the third sector selected the best projects which were then submitted for public voting. Nine winning projects were selected from among the short-listed proposals; the total subsidy amounted to PLN 1.5 million. Indirectly and directly, related assistance activities reached about 4 thousand individuals. The winners included: • ‘Growing Up’ Foundation for Assisting the Young named after John Paul II: accommodation for young people in charge of an orphanage in Łopuszka Mała who were starting adult lives, • Bread of Life Commonwealth Houses Foundation headed by nun Małgorzata Chmielewska: establishing “Manufaktura”, a Work and Education Centre ensuring every year training and temporary employment for 60 individuals from the region, THE PROGRAMME INITIATED BY KP HELPS PEOPLE TO EFFECTIVELY COMBAT POVERTY AND THE RELATED SOCIAL EXCLUSION • “Jantar” (Amber) Association – Mr. Blot’s Academy – a project assisting children from poor foster families in Elbląg, • Pro Publico Bono Association from Szczytno, for several months providing food assistance for poor families, activating professionally a group of 40 disabled individuals from the region and organizing educational workshops for over a hundred children from dysfunctional families, • Active Women Association from Sosnowiec, taking care of nearly 40 single and impoverished mothers and their children from the Silesia region. The social initiative “For What It’s Worth” consists also in educational and information-related activities, aimed at raising social awareness of the nature, range and ways of successful counteracting social exclusion. The project’s honorary patron is dr. Janusz Kochanowski, the Civil Rights Spokesman. The program is also part of the Organizing Committee of celebrating the International Day for the Eradication of Poverty. The organizations’ performance is monitored. In December 2007, during a gala, another nine organizations were supported with PLN 1.5 million to conduct projects for the needy. More information at: www.warto.eu. “The phenomenon of social exclusion is a disgrace of 21st century. A disgrace even more ignominious when juxtaposed with human accomplishments: moral, philosophical, religious, economic and social. reference to human sensitivity and the civilization’s achievements gives ground for solving the problem of social exclusion. In fact it means that, irrespective of the place and role, a company will assume partial responsibility for full-time employment and creation of new jobs, education of children and youth, for health, development of culture and most of all, for prevention of adverse phenomena. In this process of building up a responsible society business may play and strives to play a special role”. Anna Machalica-Pułtorak P r esi d en t o f ‘ O p en Do o r s’ A s s oc iat ion 47 C O M M I T M E N T T O L O C A L C O M M U N I T I E S Sports Sponsoring Kompania Piwowarska and its beer brands are household names among sports fans. They were part of the “flag craze” all over Poland during the Football World Cup in 2006, instigated by Tyskie brand, the Official Sponsor of the Polish National Football Team. Footballers have benefited from Kompania Piwowarska’s support also locally: in Poznań (LECH Poznań – sponsor from 2001 to 2006) and Białystok (Jagiellonia Białystok since 2005). However, it is not only football fans who take advantage of KP sponsoring activities. Kompania was the Official Sponsor of a winter expedition to K2 (elevation: 8,611 m/28,251 ft) led by Krzysztof Wielicki. KP has also supported CSIO international equestrian show jumping in Poznań in 1995-2004 and a National Tennis Tournament: KP Tennis Cup in Białystok. KP’s sponsoring contributed to Polish TYSKIE BRAND MADE THE WHOLE COUNTRY SURRENDER TO THE FLAG CRAZE DURING THE WORLD FOOTBALL CUP IN 2006 48 Olympic teams’ better training and travels conditions. In 1996-2005 KP was a sponsor of the Polish Olympic Sport and the Polish National Olympic Team. KP also sponsored the Team’s excursions to the Winter Olympic Games in Nagano in 1998, Salt Lake City 2002 and the Summer Olympic Games in Atlanta 1996, Sydney 2000 and Athens 2004. Kompania also cares for local communities: last year in the Wielkopolska region alone, 10 clubs enjoyed KP’s support (speedway, handball, volleyball, football). On top of that, KP has co-organized “LECH Basket League” in 1999 and “LECH Beach Soccer Tour” in 2004, 2005 and 2006. Kompania has also been patron of the Academic Wielkopolska Championships; in cooperation with AZS (Academic Sports Association) KP has sponsored scholarships for the best students-cum-sportsmen. Since 1990 KP has sponsored GKS Tychy hockey team and the hockey league. However, sport is not only for those who are ‘Swifter, Higher, Stronger’; it is intended to give pleasure to those who do not do sport on a daily basis. Some of them can enjoy sports equipment at ZET Local Sports Club in Tychy. NOT ONLY FOOTBALL FANS BENEFIT FROM KP SPONSORING C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Saving lives We get involved in most vital issues; our donations contribute to growing effectiveness of medical care and higher standards of hospital equipment. In order to counteract the aggravating problems of children suffering from asthma and other diseases of the respiratory system, we have financed four inhalators in the Children’s Diseases Clinic at the Białystok Medical School. We have purchased a vehicle for the Independent Public Children’s Clinical Hospital to help with transporting the diseased to dialyses. The inhabitants of Tychy also benefit from improved medical care: we finance the Regional Specialist Hospital, the Municipal Hospital in Tychy and ‘Closer to us’ asso- ciation for children with cerebral palsy. In Poznań KP’s beneficiaries include the Medical Care Institution of the Ministry of Interior and Administration, the Specialist Medical Care Institution for Mothers and Children, The Neurosurgery Department and Clinic at Przybyszewski Street, the Urology Department and Clinic at Szwajcarska Street, the General Surgery and Vessels Surgery Clinic. The Polish Palliative Care Association in Poznań received a car for transporting the sick and visiting them at home. On our ex-employee’s initiative we financed a project of removing building barriers to the handicapped. KP’s national-scale operations result in our involvement not only in the breweries’ locations: we have financially supported ‘University’ Children’s Assistance Foundation from Biskupice and Padjasek – Krysowski company from Katowice in purchasing a wheelchair. OUR EFFORTS HAVE RESULTED IN BETTER MEDICAL CARE FOR DWELLERS OF BIAŁYSTOK, TYCHY AND POZNAŃ 49 C O M M I T M E N T T O L O C A L C O M M U N I T I E Kompania of Initiatives Three and a half thousand people participated in meetings held in universities in three editions of Kompania of Initiatives while over 300 teams from 80 universities in Poland and abroad completed over 100 projects as part of the “Goal – Manager” project, part of Kompania of Initiatives. In 2006-2007 the third edition of the programme was carried out. How was this program drawn up? Employees would often express their concern (confirmed in related research) that university graduates lack the so-called soft managerial skills, very useful when looking for an internship or a job. They also prove useful in pursuing professional career. In late 2004, in cooperation with an international organization Students In Free Enterprise we commenced an education program targeted at students. Its goal is to propagate knowledge related to developing interpersonal and managerial skills. A contest “Goal – Manager” is an integral element of Kompania of Initiatives. As part of the contest with its underlying principle of “learning by teaching”, the students need to plan and execute one or several projects attempting to develop soft skills and entrepreneurship among selected individuals. In the third edition we emphasized the importance of building up practical knowledge making the beginning of vocational life easier. In March 2007 six selected universities across Poland hosted freeof-charge, two-days’ long Kompania of Initiatives workshops conducted by professional trainers. The participating students learned about planning their career paths, self-presentation, effective work group, creative problem solving and project management. In total 272 workshop hours were delivered to 358 students from all over the country. The contest winners are awarded with internships at Kompania Piwowarska in a department of their choice. This is how the most talented and active students afford the opportunity of gaining professional experience. As part of the contest, the students need to plan one or several projects aimed at developing soft skills and entrepreneurship. MEETINGS AT UNIVERSITIES HELD AS PART OF KOMPANIA OF INITIATIVES 50 WE HELP THE MOST TALENTED STUDENTS TO GAIN THEIR FIRST PROFESSIONAL EXPERIENCE More details on Kompania of Initiatives and the “Goal – Manager” project at: www.kompaniainicjatyw.kp.pl or www.ki.kp.pl. S C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y OUR EMPLOYEES BRING CHRISTMAS GIFTS TO CHILDREN FROM DEPRIVED FAMILIES Santa's Little Helpers We do care about children from the most deprived families. Every Christmas since 2004 embark on a project of donating gifts of toys and sweets. We reach the children with the help from our employees. An increasingly larger group of employees report every year the families in need. The employee in charge personally hands the gifts and sweets. The number of gifts handed in 2004 reached approximately 5 thousand while in 2006 it grew to nearly 7 thousand. We have managed to bring joy to many families at Christmas. Kompania Piwowarska supports the Foundation for Corporate Social Responsibility established by Bill Chasey. The Foundation involves companies from all over the world committed to fighting poverty and hunger among children. Every year the foundation feeds approximately 40 thousand meals to undernourished children all over the world. 51 about us About us Kompania Piwowarska - leader of the Polish beer industry Kompania Piwowarska is Poland’s largest brewer. Hundreds of years of experience in beer brewing, state-of-the-art technology and rigorous adherence to the World Class Manufacturing principles guarantee the highest quality of beer. The company’s product portfolio includes TYSKIE – Poles’ favourite beer, ŻUBR – the second largest Polish beer brand, LECH, Dębowe Mocne, Pilsner Urquell, Redd’s, Dog in the Fog, Peroni Nastro Azzurro and Miller Genuine Draft as well as Wojak and Gingers. Kompania Piwowarska was established in 1999 as a result of a merger of Tyskie Browary Książęce and Lech Browary Wielkopolski. In 2003 Dojlidy Brewery in Białystok was acquired and in 2008 a brewery in Kielce joined KP. In the fiscal year F07, ended on 31 March 2007, KP sales volume amounted to 13 mill hectolitres. mill hl Kompania Piwowarska’s share in the Polish beer market (%) against total beer production volume (mill hl) 40 35 30 25 20 15 10 5 19,0% 20,2% 23,0% 28,4% 30,0% 31,4% 31,8% 35,4% 37,4% 38,5% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0 years The data on the chart relates to Kompania Piwowarska’s fiscal years, starting on 1 April and ending on 31 March; it differs from data calculated for calendar years. Kompania Piwowarska’s sales in the calendar year of 2007 exceeded 14.1 million hl while its domestic market share amounted to over 40%. 52 C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y SABMiller - one of the world's leading brewers Kompania Piwowarska is a subsidiary of SABMiller plc, one of the world’s leading brewers with brewing interests or major distribution agreements in over 60 countries spread across six continents. The group boasts a portfolio of over 150 robust brands (including Pilsner Urquell, Miller Genuine Draft, Peroni Nastro Azzurro or Castle Lager). SABMiller plc is also one of the largest Coca Cola bottlers out- side the US. In the fiscal year F07 ended on 31 March 2007 SABMiller generated sales worth $18.6 billion and profit before taxation of $2.8 billion. Sales volume amounted to 216 mill hectolitres. SABMiller in the world SABMiller in Poland 53 q q SABMiller plc