The Transforming Tobacco vision is integrated into the way RAI and its subsidiaries operate. Each pillar of the Transforming Tobacco vision is supported by a cross-functional team, which provides guidance, best practices and implementation assistance to RAI’s subsidiaries. These teams meet monthly to prioritize initiatives, report progress and address issues impacting our industry.
The three pillar teams report progress to the Transforming Tobacco Steering Committee (TTSC). The TTSC reviews management practices, initiatives, goals and key performance indicators (KPIs) from throughout RAI and its subsidiaries, and makes recommendations to the RAI leadership team. In 2015, our executive leadership team formed a Sustainability and Governance Committee. This team meets monthly, and the TTSC regularly reports progress to this group, helping to ensure that activities are aligned and deliver on our vision.
Sustainability Governance Organizational Chart
The RAI board of directors is responsible for preserving the long-term interests of the company’s shareholders by overseeing the management, strategy and governance of RAI and its subsidiaries, including the Transforming Tobacco vision. The Corporate Governance, Nominating and Sustainability Committee has direct board-level oversight for our sustainability strategy. The Corporate Governance, Nominating and Sustainability Committee charter outlines their responsibility for sustainability to include:
- Monitoring and reviewing programs and practices of RAI and its subsidiaries on sustainability topics, including Youth Tobacco Prevention, Tobacco Harm Reduction and Commercial Integrity (including environmental and social impacts of RAI, its operating companies and supply chain);
- Monitoring and reviewing the policies, programs and practices of RAI and its subsidiaries on political contributions and lobbying, and support of charitable organizations; and
- Monitoring the reputation generally of RAI and its subsidiaries and their relationships with external stakeholders regarding significant social responsibility matters.
In addition, the executive vice president (EVP) of public affairs annually reports sustainability progress to the full board.
Each function within RAI and its subsidiaries has specific goals supporting the Transforming Tobacco vision, which are reflected in employees’ individual goals. Annual performance for each employee is evaluated against these goals, creating common goals and accountability within each company.