AB Inbev
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Year end: Dec 2017
Assessment date: Apr 2018
AB Inbev’s reporting is a combination of a superficial “feel-good” promotional document and heavy-weight legal compliance response where risks and contingencies loom into view.
High moral ideals and cherry-picked stories of isolated campaigns are portrayed in the most positive light, giving the strong impression of greenwashing realities of the business and its dealings. Such positive promotion of the company as a force for societal good may be a smart strategy to build reputation and protect the company’s licence to operate in most of its many regions of operation. However, cases of anti-competitive behaviour against the company may open chinks in the company’s reputational armour.
The risk for AB Inbev is that the sense of moral high ground might blind management as to the realities of its relationships with stakeholders, in particular authorities, leaving it vulnerable to licence or competitive threats. Given society’s increased tendency to scrutinise giant companies with dominant market share, AB Inbev may not have the leadership maturity to avert destruction of shareholder value should its dominance be challenged by authorities.
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