February 25, 2025
Publication: Global Investigations Review
India’s Central Bureau of Investigation said in January that it was investigating UK-headquartered alcoholic beverage company Diageo for alleged bribery that occurred nearly 20 years ago. Kobre & Kim’s Miranda Ching sat down with Global Investigations Review to share her insight on the ESG and reputational risks Diageo may now face.
“The more immediate risk to the company is being answerable to both regulators and customers in demonstrating compliance with ESG [environmental, social and governance] standards in its supply chain,” Ms. Ching shared. While the ESG metrics on Diageo’s website include “doing business the right way,” Ms. Ching indicated that Diageo may decide that living up to this claim requires it to disclose the active bribery investigation in India to its business partners. The company might also need to review its existing anti-bribery controls to reassure customers, and conduct an internal investigation into the Indian allegations – though this will likely be challenging because of how much time has passed, Ms. Ching explained.