History Of Diageo Plc

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Diageo Plc is one of the largest producers of alcohol beverages in the world with its headquarters in London, United Kingdom. The company’s history traces back in the 17th century. Diageo was formed through the merger of Grand Metropolitan PLC and Guiness PLC in 1997. The company is ranked third amongst other world’s largest alcohol producers including Heineken, Carlsberg and Anheuser Busch Inbev NV according to market capitalisation (Financial Times, 2017). It operates in 21 geographically based markets around the world and has a presence in over 180 countries. It employs 30,400 across 200 production facilities sites in over 30 countries with an outstanding collection of over 200 brands across spirits and beer. Diageo PLC manages its operations…show more content…
(Diageo, 2017). DIAGEO PLC’s BOARD OF DIRECTORS Roles: The role of the Chairman of the Board is to manage and provide leadership to the Board and ensures that all the Directors are properly informed and adequate information is made available to facilitate appropriate judgements. The CEO of Diageo has a duty of care for the day to day management of the company and putting into effect the resolutions and policies of the Board. The six Non-Executive Directors provide an innovative contribution and enhancement to the Board by offering objective and constructive criticism. This role also extend to the chairman as he is also the Non-executive director. How board are compensated: No Director is involved in determining his or her own remuneration in the company. Decisions pertaining the Directors remuneration are taken by the Remuneration Committee. A study by Solomon and Solomon (2004) declares that the need for an independent remuneration committee has been highlighted in the academic literature as a mechanism to prevent executives writing and signing their own pay…show more content…
Sustainability and Responsibility report has given the general overview on increased in awareness of 30% and almost 60000 more women with empowerment programme under thriving communities. The annual report 2017 has discussed the issue of Carbon and water impact. Water is the major component in all the drinks produced by Diageo PLC accounting up to 95% in content. According to this report, Diageo PLC is now growing 80% of water in the barley and hops to make Guinness beer. Furthermore, the annual report has discussed the use of renewable energy, with India being the case, after the installation of solar power and the use of biomass fuel. Both strategies have made Diageo PLC to reduce carbon by 45g in some drinks and 30% reduction in carbon emission. (Diageo,
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