Diageo removed from FPB’s ‘Hall of Shame’

Diageo has been removed from a small business forum’s ‘Hall of Shame’ after taking steps to “improve” its supply chain practices.

Diageo has been removed from the Forum of Private Business’s ‘Hall of Shame’

The Forum of Private Business (FPB) has removed the Johnnie Walker maker from its ‘Hall of Shame’ list of companies that it believes demonstrate “poor payment practices”.

The group said Diageo had “responded to its offer” of working together to improve company payment procedures for suppliers.

In January this year, the FPB criticised Diageo’s plan to extend how long it takes to pay new suppliers from 60 to 90 days, claiming actions such as this “threaten to break the backbone of the British economy – small businesses”.

Diageo initially defended the move, claiming it “supports the long-term sustainability of our business and yours”, adding that “to support our investments we need to improve our cash flow and drive out costs”.

However the group then backtracked on this plan in March this year after the Chartered Institute of Credit Management (CICM) said it had considered removing the company as a signatory of the Prompt Payment Code.

“We fully recognise the importance of SMEs to the UK economy and to the sustainability of our own business and therefore we will commit to a maximum 60-day term for SMEs in the UK,” David Cutter, president of supply and procurement for Diageo, said at the time.

While Diageo has been removed from FPB’s ‘Hall of Shame’, brewer Carlsberg has been inducted into it.

“Change is a key motivator behind the Hall of Shame,” FPB claims. “We are currently working with some companies on this list to remove them due to improved practices following pressure from the Forum, elected representatives, the media and most importantly their customers.

“So far only two companies have responded to this offer, which has led to Diageo being removed from the Hall of Shame.”