1 Corporate Social Responsibility at Miller Brewing Company and Plzeňský Prazdroj Elizabeth Barry Jana Christová Matthew Etzel April 21, 2007

2 A general understanding of CSR Has 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 USAIn 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 MillerPlzeňský Prazdroj Dom. market share23%49% Number of breweries73 Sales$4.9 billion$570 million Beer sales40 million barrels11.8 million barrels Number of employeesNearly 6,000Over 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

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

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 REACH Responsibility and Cultural Diversity

13 The Miller REACH – Employment Miller Urban Entrepreneurs  Help young entrepreneurs find the balance in managing a small business  Adults aged 21 to 35  $50,000, $20,000, and $2,500 grants  Business plan competition  $800,000 already given; $130,000 in 2006  2006 winner  Dwayne T. Brown  Brown Technologies  Interactive 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!