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Coca Cola CSR

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by

Isabella Gyenes

on 15 January 2015

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Transcript of Coca Cola CSR

Ethical
Economic
Women's Economic Sustainability
Legal
Coca Cola Merger
Philanthropic?
Project Last Mile
Why they
SHOULDN'T
be on the top 100 list

"Open Happiness"
RAIN
Olympic Moves
Copa Coca Cola
The fight against Tuberculosis and Malaria
Improve access to clean water for 2 million people by 2015
Backed up by $30 million dollars
Replenish 2 billion liters of water annually
Largest Secondary school competition
Founded in the Netherlands in 2003
Camp a few days before the FIFA World Cup 2014
Cultural, economic, and racial barriers were broken
Teens want to be active, play, make friends at the expense of being in their comfort zone
Human Rights
Every Bottle Has a Story
Changing the Course
Coca-Cola and UN-HABITAT
Human rights in the work place
Adopted UN human rights guiding (2011)
Implementing rule to Bottling and distributors
Coca-Cola Malaysia collaborates with Raleigh International
Gravity-fed water supply system
Community members fully involved in the installation of tanks and pipes
Taught how to maintain the system
http://www.coca-colacompany.com/rain-the-replenish-africa-initiative
Promotes smarter water management
National Geographic Society, Bonneville Environmental Foundation, Participant Media
Restore flow Colorado River Basin depleted rivers and wetlands, from headwaters to the Delta
Merging with Grupo Tampico worth
$790 million
Restored nearly 1 billion gallons of water to five depleted portions
Coca-Cola Sponsoring
Solid waste management
Providing improved access to clean drinking water and sanitation
Augmenting ground water with rainwater harvesting techniques
India, Nepal, Bangladesh, Sri Lanka, Pakistan, Cambodia, Vietnam, Uganda, Kenya, Tanzania, Bhutan, Southern Sudan
Illegal
Mislabeling?
VS
http://www.npr.org/blogs/thesalt/2014/06/12/321390014/pom-wonderful-wins-a-round-in-food-fight-with-coca-cola
Illegal Bottling Plant!
Closures Declared Illegal?!
In the Utter Pradesh (northern India) the plant was built on village council land
Entrepreneurship Program
Denied the allegations by building an addition
Revised Proposal for Executive Pay
Economic Impact on Local Communities
http://spanishnewstoday.com/spanish-coca_cola-bottling-plant-closures-declared-illegal_20068-a.html#.VG4tj1fF8tM
Women do 66% worlds work, earn 10% worlds income
90% back to family and community
Enabled more than 550,000 women since 2010
Non Philanthropic
Not Saving the Environment
44 countries (2013)
Fruit farmers and recyclers to retailers and artisans.
PET bottles chemically identical to regular plastic bottles
Changed use of fossil fuels to ethanol from renewable resources
$1 billion program empowerment & entrepreneurship
Target minority & women run businesses
Minority economic partnerships
Increase number of urban customer partnerships
Strengthen entrepreneurs and local economies
Review value chain force
Increase community contributions & support
Cutting Donations
Strong criticism on share board
Pay cash to most employees
Creating a new long term plan
Shifting focus from education to other more strategic priorities
Create local jobs for our business
More than 700 facilities
Zoo Atlanta was completely cut
Employs more than 100,000 associates
$4.5 billion in payroll
They are able to apply for grants but they should ask for money that fits into Coca-Cola’s new areas of emphasis.
Not Paying Their Fair Share
Paid only
out of $7.2 billion in pre-taxes
Claimed to "38-39% because its taxable income was lower than the $7.2 billion reported to shareholders"
6.5%
BUT NO SUPPORTING FIGURE
Will receive 63.5 million new series L KOF shares each worth $103.20 each
2 directors will take seats on Coca-Cola's FEMSA's board
Payment of $2.15 billion in exchange for a 16.7% stake in Monster
Transfer ownership of energy and non energy drinks
Monster surged as much as 30%
Monster Stakes
http://www.forbes.com/sites/maggiemcgrath/2014/08/14/coca-cola-buys-stake-in-monster-beverage-for-2-billion/
Consent to BACK OFF!
Unethical
Bring more competition to the European market for soft drinks
Put an end to exclusivity arrangements
No longer offer any rebates that reward its customers
Parched Farms and Poisoned Land
No longer require a customer to buy a less popular brands
Plant accused of draining well water
20% of the cooler provided by Coke for any
product it chooses
Poisoning land with "fertilizer"
Local villages so desperate Coca-cola sends out water tankers supplying MINIMUM needs
1 mill liters daily
Fertilizer has high levels of lead and cadmium
Devoting Time and Money for SOX
Refuses to release environmental assessment
Formalizing their review procedures
Submit a formal written report and audit
Highlights discrepancies and weaknesses
International divisions of enforcing the importance of
compliance within the entire company
Time and expenses attached to their actions
http://trace.tennessee.edu/cgi/viewcontent.cgi?article=2025&context=utk_chanhonoproj&sei-redir=1&referer=http%3A%2F%2Fwww.google.com%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3Dcoca%2520cola%2520sox%26source%3Dweb%26cd%3D2%26ved%3D0CCkQFjAB%26url%3Dhttp%253A%252F%252Ftrace.tennessee.edu%252Fcgi%252Fviewcontent.cgi%253Farticle%253D2025%2526context%253Dutk_chanhonoproj%26ei%3DiIN-VIn4MtS2oQSdoICgDQ%26usg%3DAFQjCNHtBeuIXc09h5W75eKMDr4IkS0g9g%26bvm%3Dbv.80642063%2Cd.cGU#search=%22coca%20cola%20sox%22
Rain Water Harvesting
Announced "water neutral" by 2009
Kala Dera, recharged 5X water used
When asked for numbers, none were given
History
Founded in1886 by Dr. John S. Pemberton
Rain water too low in area to be possible
1899, 3 people purchased the bottling rights $1
1888, sold the majority of the interest Asa G. Candler
When inspected, all recharge shafts were in dilapidated conditions
2009, the “Open Happiness” campaign was message to pause, refresh, and life’s simple pleasures
“Open the Games. Open Happiness” featured during the 2010 Winter Olympic Games in Vancouver
Hazard Pay
Pays employees "hazard pay" to work in China's polluted air
Health concerns
Uneconomical
Share Holders Displeased
Unnecessary transfer in wealth from share holders to management
14.2% change
Places management above interest of share holders
http://www.businesswire.com/news/home/20140321005785/en/Wintergreen-Advisers-LLC-Expresses-Disappointment-Coca-Cola%E2%80%99s-Proposed#.VH6eSI10w5t
Where Do You
Think Coca-Cola
Should Be?

Challenges in Indonesia
Rising fuel bills and higher employee salaries causing less profit
16% decline in group net profit for its fiscal first half
Boosts media spending
Soft drink demand decreasing
2016 increase to $1 billion
Targets concerns regarding obesity and feature innovation in sweeteners and packaging
Many investors aren't sharing confidence that management does of company's future
Competition and higher costs causing loss of sales
http://www.cokecce.com/system/file_resources/125/Corporate_Responsibility_Report_2013_2014.pdf
http://fairlife.com/what-we-make/
New
Industry
Citation
http://www.worldofcoca-cola.com/about-us/coca-cola-history/ History
http://www.coca-colacompany.com/projectlastmile: Philanthropy
http://www.coca-colacompany.com/fifa-world-cup/slideshow-copa-coca-cola-camp-welcomes-teen-footballers-from-28-countries-to-brazil Philanthropy
http://www.coca-colacompany.com/rain-the-replenish-africa-initiative Philanthroy
http://www.coca-colacompany.com/well-being/olympic-moves-introduces-dutch-students-to-sport-eyes-international-expansion Philanthropy
http://www.coca-colacompany.com/our-company/human-workplace-rights Ethical
http://www.coca-colacompany.com/videos/every-bottle-has-a-story-creating-water-access-in-borneo-ytbyy7zdcvu9m Ethical
http://www.coca-colacompany.com/coca-cola-unbottled/changing-the-course-of-our-water-future-for-good Ethical
http://www.coca-colacompany.com/stories/coca-cola-un-habitat-extend-water-partnership-to-12-countries Ethical
http://assets.coca-colacompany.com/cf/86/8f1b015a45f788baeb03bcaf2ab5/2013-2014-sustainability-report-womens-economic-empowerment.pdf Economic
http://www.csrwire.com/press_releases/22433-Coca-Cola-Commits-1-Billion-To-Comprehensive-Empowerment-and-Entrepreneurship-Program Economic
http://www.nytimes.com/2014/10/02/business/coca-cola-yielding-to-criticism-revises-its-plan-for-executive-pay.html?partner=rss&emc=rss Economic
http://coca-colaambassador.com/us-en/faq/what-is-coca-colas-economic-impact-on-local-communities Economic
http://www.forbes.com/sites/maggiemcgrath/2014/08/14/coca-cola-buys-stake-in-monster-beverage-for-2-billion/ Legal
http://www.reuters.com/article/2011/06/29/us-kof-idUSTRE75S0FO20110629 Legal
http://trace.tennessee.edu/cgi/viewcontent.cgi?article=2025&context=utk_chanhonoproj&sei-redir=1&referer=http%3A%2F%2Fwww.google.com%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3Dcoca%2520cola%2520sox%26source%3Dweb%26cd%3D2%26ved%3D0CCkQFjAB%26url%3Dhttp%253A%252F%252Ftrace.tennessee.edu%252Fcgi%252Fviewcontent.cgi%253Farticle%253D2025%2526context%253Dutk_chanhonoproj%26ei%3DiIN-VIn4MtS2oQSdoICgDQ%26usg%3DAFQjCNHtBeuIXc09h5W75eKMDr4IkS0g9g%26bvm%3Dbv.80642063%2Cd.cGU#search=%22coca%20cola%20sox%22 Legal
http://cms4.luc.edu/media/lucedu/law/centers/antitrust/pdfs/publications/newsviews/hamouda_cocacola.pdf Legal


Bad
http://www.theguardian.com/environment/2003/jul/25/water.india Unethical
http://www.indiaresource.org/campaigns/coke/2008/kaladeraunethical.html Unethical
http://www.huffingtonpost.com/2014/07/17/china-coca-cola-pollution_n_5593182.html Unethical
http://www.npr.org/blogs/thesalt/2014/06/12/321390014/pom-wonderful-wins-a-round-in-food-fight-with-coca-cola Illegal
http://rt.com/news/indian-officials-demolish-coke-plant-171/ Illegal
http://spanishnewstoday.com/spanish-coca_cola-bottling-plant-closures-declared-illegal_20068-a.html#.VG4tj1fF8tM Illegal
http://www.slate.com/articles/health_and_science/green_room/2011/06/plastic_by_any_other_name.html Non Philanthropic
http://www.bizjournals.com/atlanta/print-edition/2014/07/18/coca-cola-shifts-focus-of-its-local-charitable.html?page=all Non Philanthropic
http://www.ajc.com/news/business/corporate-giants-find-ample-shelter/nQJPQ/ Non Philanthropic
http://www.businesswire.com/news/home/20140321005785/en/Wintergreen-Advisers-LLC-Expresses-Disappointment-Coca-Cola%E2%80%99s-Proposed#.VG45Vq1dVQo Uneconomical
http://online.wsj.com/articles/coca-cola-amatil-faces-challenges-in-indonesia-1408531835 Uneconomical http://adage.com/article/news/coca-cola-boosts-marketing-spend-demand-slows/291747/ Uneconomical
http://www.cokecce.com/system/file_resources/125/Corporate_Responsibility_Report_2013_2014.pdf CSR report




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