1

Corporate Social Responsibility at Miller Brewing Company

and Plzeňský Prazdroj

Elizabeth BarryJana ChristováMatthew Etzel April 21, 2007

2

A general understanding of CSRHas become a central theme of the political agenda of many companies since 1970

The definition by the EU:

“Corporate social responsibility is the voluntary integration of social and ecological aspects into everyday corporate operations with the surrounding environment.”

Is connected with the principles of

a sustainable development,

• The basic areas: economic,

environmental,

social.

The scheme of sustainable development

3

Motivations for an implementation of CSR

 

 

 

 

 

 

 

 

 

 

 

 

 

Customers

CSR

Suppliers and Partners

EmployeesCommunities

4

CSR in the USA and the Czech Republic

In the USA In the Czech Republic

• All firms incorporate CSR into their business strategy

• Small number of companies that implement social responsibility especially multinational corporations

• Stress on internal and external dimensions of CSR

• Oriented more toward the internal aspects—employees, etc.

• Corporate social responsibility a big part of public relations

• Insufficient interest of public

• High interest of media • Lower interest of media

• The topic is of high importance to society currently

• The topic is not discussed in society

5

Miller and Plzeňský Prazdroj

Miller Plzeňský Prazdroj

Dom. market share 23% 49%

Number of breweries 7 3

Sales $4.9 billion $570 million

Beer sales 40 million barrels 11.8 million barrels

Number of employees Nearly 6,000 Over 2,500

Key brands Miller Lite, Miller Genuine Draft (MGD), Miller High Life

Pilsner Urquell, Gambrinus, Radegast, Kozel

Miller Brewing Company and Plzeňský Prazdroj belong to the SABMiller, the second largest brewer in the world.

6

SABMiller’s vision:

To be the most admired company in the global beer industry.

- Principles of transparency, correct economic competition and social responsibility.

The SABMiller brewing group

7

Basic Priorities of Miller and Plzeňský Prazdroj

CSR

Local communities, Society Business partners,

suppliers

Business transparency

Consumers (Responsible drinking)Environmental

protection

Preserving

the historical legacy

Adaption to change

Health and safety at work

Human resources management

8

• The Plzeňský Prazdroj Citizen's Choice - To support publicly beneficial projects, started in 2002

• The Pl. Prazdroj Enterprise Development Program- In cooperation with the NGO NESsT,- Focused on development of social entrepreneurship

and improvement of managerial skills of non-profits

• The Donation Fund of Plzeňský Prazdroj- In cooperation with the VIA Foundation.

Community Development Support – Plzeňský Prazdroj

9

- Earmarked Amount: 7 million CzK ($333k)- Supported areas: Education and Environment, Culture, Sports, Health and Social Care.

The Plzeňský Prazdroj Citizen's Choice

21 2129 30

05

1015202530

Percent

Sport Culture Environment Health andsocial care

Category

Categories supported within the Citizen's Choice program of Plzeňský Prazdroj

10

- Around 100 organizations strive for participation every year,- 30 – 35 organizations are supported through the Citizen's Choice,- The public makes the final decision.

The Plzeňský Prazdroj Citizen's Choice

The total of supported projects in the individual regions since 2003

23

5150

Plzeň Velké Popovice Frýdek

11

- Responsibility- Education- AIDS/HIV

The Miller REACH

- Cultural Diversity- Heritage Initiatives

12

- Responsibility-Prevent underage drinking and drunk driving-The Keys to Responsibility Guide-“Last Call: Safe Ride Home” program-Miller Free Rides Program-Let’s Keep Talking-We I.D.

- Cultural Diversity-Thurgood Marshall Scholarship Fund-Adelante

The Miller REACHResponsibility and Cultural Diversity

13

The Miller REACH – EmploymentMiller Urban Entrepreneurs

Help young entrepreneurs find the balance in managing a small businessAdults aged 21 to 35$50,000, $20,000, and $2,500 grantsBusiness plan competition$800,000 already given; $130,000 in 20062006 winner

Dwayne T. BrownBrown TechnologiesInteractive athletic performance analysis systems

14

- Similarities:- Programs are in compliance with SABMiller overall CSR strategy- Programs are focused on the three pillars

- Social- Economic- Environmental

- Support local organizations and their programs- Commitment to the betterment of society

- Differences- Miller supports more cultural diversity programs- Plzeňský Prazdroj supports mostly non-profits- At Plzeňský Prazdroj, public can vote for the most beneficial projects

The community development support - Comparison

15

- Both breweries should:- continue already existing CSR strategies

- promote and market CSR activities- more so in the Czech Republic (promote positive media image)

- issue annual CSR reports displaying progress

- strive to serve and identify the needs of the local community

- adapt CSR strategy to the differing local communities

Recommendations

16

THANK YOU FOR YOUR ATTENTION!