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CoCa Cola
Corporate Governance Final Project Report
Submitted to: Sir M. Irfan
Submitted by:
Samina Bibi FA13-BSD-007
Huma...
CORPORATE GOVERNANCE PROJECT
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IN THE NAME OF ALLAH, THE MOST MERCIFUL, THE
COMPASSIONATE
CORPORATE GOVERNANCE PROJECT
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Contents
CONTENTS..................................................................
CORPORATE GOVERNANCE PROJECT
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PATTERN OF SHAREHOLDING ...........................................................
CORPORATE GOVERNANCE PROJECT
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PREFACE
We are submitting this report to show what we learned from the course Co...
CORPORATE GOVERNANCE PROJECT
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ACKNOWLEDGEMENT
First of all we are thankful to “ALMIGHTY ALLAH”. Who gave us th...
CORPORATE GOVERNANCE PROJECT
Page 7 of 40
DEDICATION
“Dedicated to my Family for their
Efforts, support, encouragement and...
CORPORATE GOVERNANCE PROJECT
Page 8 of 40
ABSTRACT
Corporate governance is a vital part of the company. This project is ab...
CORPORATE GOVERNANCE PROJECT
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COMPANY SELECTED
CORPORATE GOVERNANCE PROJECT
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REASON FOR SELECTION
Coke is it -- it being the #1 nonalcoholic beverage compan...
CORPORATE GOVERNANCE PROJECT
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PART 1:
INTRODUCTION
Coca-Cola is a carbonated soft drink sold in
stores, resta...
CORPORATE GOVERNANCE PROJECT
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1886 Coca-Cola is created by John S. Pemberton and served at Jacobs’ Pharmacy
i...
CORPORATE GOVERNANCE PROJECT
Page 13 of 40
1923 The introduction of the first six-bottle carton is a significant innovatio...
CORPORATE GOVERNANCE PROJECT
Page 14 of 40
MISSION, VISSION & VALUES
Our mission, vision and values outline who
we are, wh...
CORPORATE GOVERNANCE PROJECT
Page 15 of 40
OBJECTIVES
Objectives give a sense of direction, unity, and purpose. They play ...
CORPORATE GOVERNANCE PROJECT
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more than 500 sparkling and still brands. Led by Coca-Cola, one of the world's
...
CORPORATE GOVERNANCE PROJECT
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James D. Robinson III
Peter V. Ueberroth
SENIOR OPERATIONS LEADERSHIP
Ahmet Boz...
CORPORATE GOVERNANCE PROJECT
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conveyor system, sanitation process changes, and an inspection procedure
to ens...
CORPORATE GOVERNANCE PROJECT
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PART 2
CEOs OF THE CORPORATION SINCE INCEPTIONS
CURRENT CEOs OfCoca Cola
E. Nev...
CORPORATE GOVERNANCE PROJECT
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2. PROMOTING THE CORPORATION
Since its inception, the Foundation has supported ...
CORPORATE GOVERNANCE PROJECT
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PART 3
PROSPECT FOR THE FUTURE
The Coca-Cola Company aims to be globally known,...
CORPORATE GOVERNANCE PROJECT
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The key difference between Plant Bottle packaging and traditional PET plastic b...
CORPORATE GOVERNANCE PROJECT
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carbonated drinks will grow in emerging economies but it will prove weak as the...
CORPORATE GOVERNANCE PROJECT
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in the world (about 40%).
Strong marketing and advertising. Coca Cola’ advertis...
CORPORATE GOVERNANCE PROJECT
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Bottling operations in 12 high-growth markets across Southern and East Africa w...
CORPORATE GOVERNANCE PROJECT
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ACHIEVEMENT ON COMPETITORS
The Coca-Cola Company is confident that all the step...
CORPORATE GOVERNANCE PROJECT
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Developing and expanding our still beverage portfolio through innovation,
strat...
CORPORATE GOVERNANCE PROJECT
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. Amount (thousand)
Financial
institutions
73 17,820
Securities
companies
34 3,...
CORPORATE GOVERNANCE PROJECT
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Number of shareholders
54,003
MAJOR SHAREHOLDERS
Major Holders (Dec 12, 2014)
B...
CORPORATE GOVERNANCE PROJECT
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Holder Shares % Out Value* Reported
Berkshire Hathaway,Inc 400,000,000 9.13 17,...
CORPORATE GOVERNANCE PROJECT
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Prices
Date Open High Low Close Avg Vol
Dec 1, 2014 44.18 44.77 40.87 40.91 17,...
CORPORATE GOVERNANCE PROJECT
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PAYMENT OF
DIVIDEND
Prices
Date Open High Low Close Volume Adj Close*
Nov 26, 2...
CORPORATE GOVERNANCE PROJECT
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CEO COMPENSATION PATTERN
A publicly-traded company is only required to disclose...
CORPORATE GOVERNANCE PROJECT
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Name/Title 2010 2011 2012 2013
Key Executive Compensation 31,186,076 47,954,912...
CORPORATE GOVERNANCE PROJECT
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PART 5 : Corporate Social Responsibility
ANALYSING CORPORATION CSR
Corporate so...
CORPORATE GOVERNANCE PROJECT
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A FAIR AND ETHICAL WORKPLACE
As a participant in the UN Global Compact, Coca-Co...
CORPORATE GOVERNANCE PROJECT
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provide any personal information. Anyone who has provided information to these
...
CORPORATE GOVERNANCE PROJECT
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$1.5 million in bribes. A spokesman for Coca-Cola, Kenth Kaerhoeg, confirmed
on...
CORPORATE GOVERNANCE PROJECT
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PART 6 :
CONCLUSION
Coca-Cola as a Company has made several mistakes, is making...
CORPORATE GOVERNANCE PROJECT
Page 40 of 40
REFERENCES
www.coca-cola.com/
www.coca-cola.com/template1/index.jsp?locale=en_U...
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Corporate Governance - Coca Cola

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Corporate governance is a vital part of the company. This project is about to study any one of companies and one of that company’s ownership and management according torules and regulations. In this project we have studied the different shareholders of company, from identifying the needs wants and demands of their product among the people, and how company developed the relationship with stakeholders, that are how they have done the investment situations. We have studied the Major shareholders fluctuation in in the value of shares during the last five years earnings per share and payment of dividend to the shareholders CEO/senior executive compensation pattern corporation’s profit corporation’s reputation and all other necessary information.
At the end I have studied the SWOT and PEST analysis of the company and conclusion and recommendations.

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Corporate Governance - Coca Cola

  1. 1. CoCa Cola Corporate Governance Final Project Report Submitted to: Sir M. Irfan Submitted by: Samina Bibi FA13-BSD-007 Huma Bakht Yousufi FA13-BSD-036 Zara Siddiqui FA13-BSD-037 Tannia Sibtain FA13-BSD-038
  2. 2. CORPORATE GOVERNANCE PROJECT Page 2 of 40 IN THE NAME OF ALLAH, THE MOST MERCIFUL, THE COMPASSIONATE
  3. 3. CORPORATE GOVERNANCE PROJECT Page 3 of 40 Contents CONTENTS.................................................................................................................................... 3 PREFACE....................................................................................................................................... 5 ACKNOWLEDGEMENT .............................................................................................................. 6 DEDICATION................................................................................................................................ 7 ABSTRACT.................................................................................................................................... 8 Investment................................................................................................................................. 10 PART 1: ........................................................................................................................................ 11 INTRODUCTION .................................................................................................................... 11 HISTORY ................................................................................................................................. 11 MISSION, VISSION & VALUES ........................................................................................... 14 OBJECTIVES ........................................................................................................................... 15 PRODUCTS MANUFACTURED ........................................................................................... 15 BOARD OF DIRECTORS ....................................................................................................... 16 LANDMARK ACHIEVEMENTS ........................................................................................... 17 AWARDS ............................................................................................................................. 18 PART 2 ......................................................................................................................................... 19 CEOs of the Corporation since Corporations inceptions .......................................................... 19 Current CEOs of Coca Cola...................................................................................................... 19 Past CEOs & Directors of Coca Cola ....................................................................................... 19 The most important CEO .......................................................................................................... 19 a. Contribution made by CEO............................................................................................ 19 The most important CEO .......................................................................................................... 20 a. Contribution made by CEO............................................................................................ 20 PART 3 ......................................................................................................................................... 21 PROSPECT FOR THE FUTURE............................................................................................. 21 CURRENT BUSINESS CHALLENGES ................................................................................. 22 FUTURE OUTLOOK............................................................................................................... 23 INCREASES IN PROFIT DUE TO NEW PRODUCT ........................................................... 24 ACHIEVEMENT ON COMPETITORS .................................................................................. 26 STRATEGIES FOR GROWTH....................................................................................................26 PART 4..........................................................................................................................................27
  4. 4. CORPORATE GOVERNANCE PROJECT Page 4 of 40 PATTERN OF SHAREHOLDING .......................................................................................... 27 MAJOR SHAREHOLDERS .................................................................................................... 29 VALUE OF SHARES (During The Last Five Years) ............................................................. 30 Share Price Range, Past 5 Years ........................................................................................... 30 EARNINGS PER SHARE........................................................................................................ 31 PAYMENT OF DIVIDEND..................................................................................................... 32 CEO COMPENSATION PATTERN ....................................................................................... 33 PART 5 : Corporate Social Responsibility ................................................................................... 35 ANALYSING CORPORATION CSR ..................................................................................... 35 HEALTH & WELL BEING ................................................................................................. 35 A FAIR AND ETHICAL WORKPLACE............................................................................ 36 SUSTAINABLE AGRICULTURE ...................................................................................... 36 CORPORATE GOVERNANCE PRACTICES........................................................................ 36 FRAUD ................................................................................................................................. 36 PUNISHMENTS................................................................................................................... 37 PART 6 : CONCLUSION & RECOMMENDATIONS............................................................... 39 CONCLUSION......................................................................................................................... 39 RECOMMENDATIONS.......................................................................................................... 39 REFERENCES ......................................................................................................................... 40
  5. 5. CORPORATE GOVERNANCE PROJECT Page 5 of 40 PREFACE We are submitting this report to show what we learned from the course Corporate Governance, and got experience throughout the course of practical work here, in COMSATS Institute of Information Technology Islamabad .we learned many things which will be beneficial for us in our practical life. Here we became familiar with the working on the companies. In preparation of this Report we have tried our best to provide all possible information about the company in brief and comprehensive form. It also includes current and future conditions of company. We have also tried my best to use simple and easy words and language. Finally report ends with some recommendations after identification of some limitations and weaknesses of company.
  6. 6. CORPORATE GOVERNANCE PROJECT Page 6 of 40 ACKNOWLEDGEMENT First of all we are thankful to “ALMIGHTY ALLAH”. Who gave us the strength, patience, courage and enthusiasm needed to write and complete this project, then to our friends who assisted us in this effort and we worked daylong to accomplish this assignment and to my parents who supported me financially and encouraged me morally. I have a debt of gratitude to our respected teacher Sir. Muhammad Irfan who instructed us in such a way which have put confidence in us and motivated us to put effort to understand about business practices and its various dimensions. This not only increased our strengths to work with team spirit but also enhance the knowledge of leadership. This will surely help us in future studies. We expect that our teacher will appreciate our effort of this report. It was pleasure for us to be worked on this project. We are very thankful to all the students and honorable teachers for their time, cooperation and feedback.
  7. 7. CORPORATE GOVERNANCE PROJECT Page 7 of 40 DEDICATION “Dedicated to my Family for their Efforts, support, encouragement and Confidence that enabled me to complete This task”
  8. 8. CORPORATE GOVERNANCE PROJECT Page 8 of 40 ABSTRACT Corporate governance is a vital part of the company. This project is about to study any one of companies and one of that company’s ownership and management according torules and regulations. In this project we have studied the different shareholders of company, from identifying the needs wants and demands of their product among the people, and how company developed the relationship with stakeholders, that are how they have done the investment situations. We have studied the Major shareholders fluctuation in in the value of shares during the last five years earnings per share and payment of dividend to the shareholders CEO/senior executive compensation pattern corporation’s profit corporation’s reputation and all other necessary information. At the end I have studied the SWOT and PEST analysis of the company and conclusion and recommendations.
  9. 9. CORPORATE GOVERNANCE PROJECT Page 9 of 40 COMPANY SELECTED
  10. 10. CORPORATE GOVERNANCE PROJECT Page 10 of 40 REASON FOR SELECTION Coke is it -- it being the #1 nonalcoholic beverage company, as well as one of the world's most recognizable brands. The Coca-Cola Company is home to 16 billion dollar brands, including four of the top five soft drinks: Coca-Cola, Diet Coke, Fanta, and Sprite. Other top brands include Minute Maid, PowerAde, and vitamin water. All told, the company owns or licenses and markets more than 500 beverage brands, mainly sparkling drinks but also waters, juice drinks, energy and sports drinks, and ready-to-drink teas and coffees. With the world's largest beverage distribution system, The Coca-Cola Company reaches thirsty consumers in more than 200 countries. Investment Over the past five decades or so, Coca-Cola has regularly increased its dividend, most recently lifting its quarterly payout on KO stock by 9% to 30.5 cents per share. Coca-Cola also is focused on share repurchases, buying back $4.8 billion worth of shares last year.
  11. 11. CORPORATE GOVERNANCE PROJECT Page 11 of 40 PART 1: INTRODUCTION Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke. The Coca-Cola Company is the world's largest number 1 beverage company, largest manufacturer, distributor and marketer of non- alcoholic beverage concentrates and syrups in the world, and one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day. The company operates a franchised distribution system dating back to 1889 where The Coca Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its current president and CEO is Muhtar Kent. HISTORY The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company, a co-partnership between Dr. John Stitch Pemberton and Ed Holland. The company was formed to sell three main products: Pemberton's French Wine of Cola (later known as Coca-Cola), Pemberton's Indian Queen Hair Dye and Pemberton's Globe Flower Cough Syrup. Here’s a look at Coca-Cola’s 125-year journey …
  12. 12. CORPORATE GOVERNANCE PROJECT Page 12 of 40 1886 Coca-Cola is created by John S. Pemberton and served at Jacobs’ Pharmacy in downtown Atlanta. 1887 Coupons are first used to promote Coca-Cola; John Pemberton registers his “Coca-Cola Syrup and Extract” label as a copyright with the U.S. Patent Office. 1893 The Coca-Cola Spenserian script trademark is registered with the U.S. Patent Office. 1899 The rights to bottle Coca-Cola in most of the United States are sold by Asa Candler 1900 Music hall performer Hilda Clark becomes the first celebrity to appear in multiple advertising formats, including trays, posters and bookmarks. 1904 The first advertising for Coca-Cola appears in national magazines; annual sales of Coca- Cola hit the 1 million-gallon mark. 1906 Bottling operations begin in Canada, Cuba and Panama, becoming the first three countries outside the United States to bottle Coca-Cola. 1915 Answering the call of The Coca-Cola Company, the contour bottle prototype is designed by Alexander Samuelson. 1919 The first bottling plants are opened in Europe in Paris and Bordeaux. 1923 The introduction of the first six-bottle carton is a significant innovation for the beverage industry. The carton is patented the following year. 1925 The Board of Directors passes a resolution placing the secret formula for Coca-Cola in a bank vault at the Trust Company Bank in Atlanta. Here’s a look at Coca-Cola’s 125-year journey … 1886 Coca-Cola is created by John S. Pemberton and served at Jacobs’ Pharmacy in downtown Atlanta. 1887 Coupons are first used to promote Coca-Cola; John Pemberton registers his “Coca-Cola Syrup and Extract” label as a copyright with the U.S. Patent Office. 1893 The Coca-Cola Spenserian script trademark is registered with the U.S. Patent Office. 1899 The rights to bottle Coca-Cola in most of the United States are sold by Asa Candler 1900 Music hall performer Hilda Clark becomes the first celebrity to appear in multiple advertising formats, including trays, posters and bookmarks. 1904 The first advertising for Coca-Cola appears in national magazines; annual sales of Coca-Cola hit the 1 million-gallon mark. 1906 Bottling operations begin in Canada, Cuba and Panama, becoming the first three countries outside the United States to bottle Coca-Cola. 1915 Answering the call of The Coca-Cola Company, the contour bottle prototype is designed by Alexander Samuelson. 1919 The first bottling plants are opened in Europe in Paris and Bordeaux.
  13. 13. CORPORATE GOVERNANCE PROJECT Page 13 of 40 1923 The introduction of the first six-bottle carton is a significant innovation for the beverage industry. The carton is patented the following year. 1925 The Board of Directors passes a resolution placing the secret formula for Coca-Cola. 1931 Seeking to create an advertising program that links Coca-Cola with Christmas, artists Haddon Sundblom creates his first illustration showing Santa Claus pausing for a Coke. 1943 The U.S. government requests that Coca- Cola be made available to the troops. 1950 Coca-Cola becomes the first product to appear on the cover of Time magazine. 1955 Fanta Orange is introduced in Naples, Italy, the first new product to be distributed by the Company. 1963 TaB, the first diet product produced by the Company, is launched. 1971 First introduced as a radio ad and later produced as a television commercial, “I’d Like to Buy the World a Coke” 1978 Coca-Cola signs an agreement to reenter the China market after a nearly 30-year absence;. 1979 The “Mean Joe Green” television commercial debuts. The ad is consistently voted one 1982 Diet Coke is introduced in a celebrity-filled ceremony in New York, becoming the first extension of the trademarks of Coca-Cola and Coke. 1985 The formula for Coca-Cola is changed for the first time in 99 years. 1992 PowerAde is introduced and is designated as the official sports drink of the Olympic Games. 1993 The Company reenters India after leaving the country in 1977 rather than reveal the secret formula for Coca-Cola. 2001 Simply Orange, a not-from-concentrate orange juice, is introduced. 2002 “American Idol,” a singing competition sponsored by Coca-Cola, debuts. It becomes one of the most popular shows in the history of television. 2005 Coca-Cola Zero, a zero-calorie cola, makes its debut. 2008 A Coca-Cola Face book page is established by two fans. 2009 Coca-Cola Freestyle, an innovative fountain dispenser that allows consumers to select from more than 100 beverages, is unveiled; Plant Bottle PET packaging is introduced 2012 The Coca-Cola Company celebrates 125 years of brand Coca-Cola; for the first time in 86 years, the Coca-Cola secret formula is moved to the World of Coca-Cola in Atlanta making the vault containing the secret formula visible to the public.
  14. 14. CORPORATE GOVERNANCE PROJECT Page 14 of 40 MISSION, VISSION & VALUES Our mission, vision and values outline who we are, what we seek to achieve, and how we want to achieve it. They Provide a clear direction for our Company and help ensure that we are all working toward the same goals. Everything we do is inspired by our enduring Mission:  To Refresh the World...in body, mind, and spirit.  To Inspire Moments of Optimism...through our brands and our actions.  To Create Value and Make a Difference...everywhere we engage. To achieve sustainable growth, we have established a Vision with clear goals:  People: Being a great place to work where people are inspired to be the best they can be.  Planet: Being a responsible global citizen that makes a difference.  Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples' desires and needs.  Partners: Nurturing a winning network of partners and building mutual loyalty.  Profit: Maximizing return to shareowners while being mindful of our overall responsibilities. We are guided by shared Values that we will live by as a company and as individuals:  Leadership: “The courage to shape a better future”  Passion: “Committed in heart and mind”  Integrity: “Be real”  Accountability: “If it is to be, it's up to me”  Collaboration: “Leverage collective genius”  Innovation: “Seek, imagine, create, delight”  Quality: “What we do, we do well”.
  15. 15. CORPORATE GOVERNANCE PROJECT Page 15 of 40 OBJECTIVES Objectives give a sense of direction, unity, and purpose. They play a big role in forming the foundation for companies in the decision making process. Objectives can be communicated through mission statements. Strategies and tactics both refer to a plan or scheme but strategies are long term plans that will have significant consequences. The main objectives for the Coca-Cola Company are  To be globally known as a business that conducts business responsibility and ethically and to accelerate sustainable growth to operate in tomorrow's world.  Coca-Cola should be known world-wide for its distribution of non-alcoholic beverages.  Their objective is to maintain a trusted local presence in every community they serve.  They are constantly looking ahead to anticipate what their communities may need and gathering resources to support them.  To carry out this objective, they’ve devised a strategy to “build out on fundamental strengths in marketing and innovation driving increased efficiency and effectiveness in interactions without system and generating new energy through core brands that focus on health and wellness.  Their tactic is to increase their annual marketing budget, launch many new products, and developed a model to help our retail customers maximize their sales.  The primary objective is to deliver a superior investment return to shareowners through consistent increases in long-term operating cash flows and profitable increases in sales volume.  Strong cash flow position, which can be derived from consistent performance and lower investment requirements.  Average earnings per share growth of approximately 15% over the long term.  Capital expenditures will be stable to declining from historical trends over the next 5 years, as the investments in the bottling side of the business will be reduced.  Gradually reduce the dividend pay-out ratio to 30% over time. This reduction will occur due to an increase in earnings, not due to a decrease in the aggregate amount of the dividend payment.  Maintain the net debt-to-net capital ratios that have been shown historically. By having these objectives, it forms the foundation for companies in the decision making process. PRODUCTS MANUFACTURED The Coca-Cola Company is the world's largest beverage company, refreshing consumers with
  16. 16. CORPORATE GOVERNANCE PROJECT Page 16 of 40 more than 500 sparkling and still brands. Led by Coca-Cola, one of the world's most valuable and recognizable brands, our Company's portfolio features 17 billion-dollar brands including  Coca-Cola  Diet Coke  Coke Zero  Thums Up  Sprite  Fanta  Limca  Maaza  Minute Maid Pulpy Orange  Minute Maid Nimbu Fresh  Minute Maid Guava  Maaza Milky Delight  Minute Maid Mango  Burn  Kinley Water  Kinley Soda  Schweppes  GEORGIA Gold Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy our beverages at a rate of 1.9 billion servings a day. BOARD OF DIRECTORS Muhtar Kent( CEO) Herbert A. Allen Ronald W. Allen Ana Botín Howard G. Buffett Richard M. Daley Barry Diller Helene D. Gayle Evan G. Greenberg Alexis M. Herman Robert A. Kotick Maria Elena Lagomasino Sam Nunn
  17. 17. CORPORATE GOVERNANCE PROJECT Page 17 of 40 James D. Robinson III Peter V. Ueberroth SENIOR OPERATIONS LEADERSHIP Ahmet Bozer, President, Coca-Cola International Nathan Kalumbu, President, Eurasia & Africa Group James Quincey, President, Europe Group Brian Smith, President, Latin America Group Atul Singh, President, Asia Pacific Group J.Alexander M. Douglas Jr., President, Coca-Cola North America Irial Finan, President, Bottling Investments Group SENIOR FUNCTIONAL LEDERSHIP Alexander B. Cummings, Chief Administrative Officer J.Alexander M. Douglas Jr., Global Chief Customer Officer Bernhard Goepelt, General Counsel Ceree Eberly, Chief People Officer Clyde C. Tuggle, Chief Public Affairs and Communications Officer Ed Steinike, Chief Information Officer Kathy Waller, Chief Financial Officer Guy Wollaert, Chief Technical and Innovation Officer Irial Finan, President, Bottling Investments Group Javier C. Goizueta, President, McDonald’s Division Joseph V. Tripodi, Chief Marketing and Commercial Officer Lisa M. Borders, Vice President, Global Community Connections LANDMARK ACHIEVEMENTS  Reduced electrical bill by over $200,000 in 2012 by installing skylights and energy efficient lighting, and by modifying the air and ammonia compressor systems to run at top efficiency.  Identified and repaired compressed air, nitrogen, and CO2 leaks, saving energy, raw materials, and CO2 emissions.  Implemented a recycling program that captures over 98% of all waste generated at the facility.  Reduced water consumption by over 18 million gallons annually through changes to the
  18. 18. CORPORATE GOVERNANCE PROJECT Page 18 of 40 conveyor system, sanitation process changes, and an inspection procedure to ensure all water leaks are fixed, no matter how small.  Provided empty drums to various organizations for conversion to rain collection barrels. AWARDS  Coca-Cola HBC excels in the World Beverage Innovation Awards  Dual Accolades in Sustainability for Coca-Cola HBC  Coca-Cola HBC earns prominent award for its 2013 Integrated Report  Triple distinction for Coca-Cola HBC Greece in 2014 Health & Safety Awards  Fanta Lemon is the 'Product of the Year 2014' in Italy  Amita & Amita Motion, Products of the Year in Greece  Polish plant awarded for safety culture  Coca-Cola HBC ranks second as a Top Employer in Moldova  Coca-Cola HBC ranks first as the Best Company Leader in Romania  Coca-Cola HBC in Serbia, Most Desirable Employer for the 3rd time  International recognition for “Our Beautiful Sava” project of Coca-Cola HBC Croatia  Corporate Volunteering Award For The Coca-Cola System In Serbia  Active lifestyle programme in Hungary receives prestigious recognition  Coca-Cola HBC wins the “Business Partner Plus 2013” award in Serbia  Promotions of the year for Coca-Cola in Hungary  Coca-Cola HBC receives the European CSR Award for “Mission Water”  Best organisational culture and engagement project by HR Club Excellence Awards Gala in Romania  Hungary ranks 6th as Most Desirable Employer and 2nd in the FMCG sector  Coca-Cola HBC among the Top Ten Best Employers in Russia  Newly European Water Stewardship Standard gives Gold Medal to Romanian plant  Coca-Cola HBC in Croatia receives Top Employer Certificate for the 6th year in a row  Coca-Cola HBC awarded for its 2011 Health & Safety Campaign on Safe Driving  Superior Taste Awards for Two Cappy Products  Natur Aqua Emotion is Product of the Year  Coca-Cola Cup Awarded Champion of the Year 2011  Hungary wins Special Volunteering Award  Coca-Cola HBC in Bulgaria named ‘Greenest Company’ in the country
  19. 19. CORPORATE GOVERNANCE PROJECT Page 19 of 40 PART 2 CEOs OF THE CORPORATION SINCE INCEPTIONS CURRENT CEOs OfCoca Cola E. Neville Isdell Business 8-Jun-1943 CEO of Coca Cola, 2004-08 Muhtar Kent Business c. 1952 CEO of Coca-Cola PAST CEOs & Directors Of Coca Cola Douglas N. Daft Business 1943 CEO of Coca Cola, 2000-04 Roberto C. Goizueta Business 18-Nov-1931 18-Oct-1997 CEO of Coca-Cola, 1981-97 Penelope L. Hughes Business c. 1960 Former Coca-Cola executive M. Douglas Ivester Business 26-Mar-1947 CEO of Coca Cola, 1997-2000 Carl Ware Business 30-Sep-1943 Former Coca-Cola executive Robert W. Woodruff Business 6-Dec-1889 7-Mar-1985 President of Coca-Cola, 1923-54 THE MOST IMPORTANT CEO Roberto Críspulo Goizueta (November 18, 1931 – October 18, 1997) was Chairman, Director, and Chief Executive Officer (CEO) of The Coca-Cola Company from August 1980 until his death in October 1997. Under the direction of Goizueta, the Coca-Cola Company became a top US corporation. a. CONTRIBUTION MADE BY CEO In 1984, Roberto Goizueta, then Chairman and CEO of The Coca-Cola Company, established The Coca-Cola Foundation. Over the past three decades, The Foundation has grown from a local foundation into a global philanthropic organization awarding $98 million in 2013 to impact approximately 134 million people in 122 countries. 1. SHAPING THE COMPANY The Coca-Cola Company is committed to giving back 1% of its prior year’s operating income annually. This commitment is made through The Coca-Cola Foundation and Company donations. In 2013, The Coca-Cola Company and The Coca-Cola Foundation invested more than $143 million in communities worldwide.
  20. 20. CORPORATE GOVERNANCE PROJECT Page 20 of 40 2. PROMOTING THE CORPORATION Since its inception, the Foundation has supported learning inside and outside the classroom. However, addressing critical community challenges and opportunities is an evolving process. In 2007, the Foundation broadened its support to include global water stewardship programs, fitness and nutrition efforts and community recycling programs. Today, our strategies align with the Company’s Sustainability platform and include women’s empowerment and entrepreneurship. In addition, the Foundation supports many local community programs such as arts and culture, community and economic development programs in the United States, as well as HIV/AIDS prevention and awareness programs in Africa and Latin America. Our community commitment is shared across The Coca-Cola system. When natural disasters strike, The Coca-Cola Foundation and the entire Coca-Cola system respond to offer emergency relief. Through the Coca-Cola Matching Gifts Program, eligible employees make personal contributions to qualified organizations and The Coca-Cola Foundation matches those contributions on a 2-for-1 basis. THE MOST IMPORTANT CEO In 1999, Kent left the Coca-Cola Company after 20 years of service. Returning to Turkey, Muhtar Kent became CEO of Efes Beverage Group at Anadolu Group, the largest local shareholder of the Coca-Cola franchise in Turkey and one of Europe's largest international beverage businesses. a. CONTRIBUTION MADE BY CEO Muhtar Kent, our Chairman of the Board and Chief Executive Officer, leads us into the new century with a firm commitment to the values and spirit of the world's greatest brand. 1. SHAPING THE COMPANY In our journey to become a sustainable, profitable growth company, our management structure has evolved to sharpen external focus on the marketplace with greater speed, productivity and effectiveness. 2. PROMOTING THE CORPORATION Since our first soda fountain sales in 1886, we have been a driver of marketplace innovation and an investor in local economies. Today we lead the beverage industry with more than 500 beverage brands -- including four of the world's top-five sparkling brands. But while our business opportunities are enormous, our commitment to our consumers and the communities in which we operate is even greater.
  21. 21. CORPORATE GOVERNANCE PROJECT Page 21 of 40 PART 3 PROSPECT FOR THE FUTURE The Coca-Cola Company aims to be globally known, they do this by targeting different areas across the globe with different products, gaining their brand name and popularity. All the bottling partners work closely with their customers such as convenience stores, grocery stores, movie theaters and street vendors to create and use localized strategies developed in partnership with the Company. Their competition with other beverage companies are also narrowed down as they own various brands that could be possible competition. For example, the company sells Coke without the competition of other popular soft drink brands like Sprite and Fanta because the company owns those brands as well. The company often reviews and evaluates their business plans and performance to improve their earnings and analyze their competitive position in the market. They make decisions in realigning their business models to match the objectives of the company by using strategies and tactics in the analysis of their performance.
  22. 22. CORPORATE GOVERNANCE PROJECT Page 22 of 40 The key difference between Plant Bottle packaging and traditional PET plastic bottles is that instead of using petroleum and other fossil fuels to produce a key ingredient in the plastic, Plant Bottle packaging uses materials that are up to 30% plants-based. In essence, we are trading fossil fuels for plant-based material without sacrificing performance or recyclability. John F. Brock Chairman and Chief Executive Officer CURRENT BUSINESS CHALLENGES There are certain challenges which are faced by the company and recovery measurements are necessary to be taken immediately. Changes in consumer tastes. Consumers around the world become more health conscious and reduce their consumption of carbonated drinks, drinks that have large amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is mainly serving carbonated drinks. Water scarcity. Water is becoming scarcer around the world and increases both in cost and criticism for Coca Cola over the large amounts of water used in production. Strong dollar. More than 60% of The Coca Cola Company income is from outside US. Due to strong dollar performance against other currencies firm’s overall income may fall. Legal requirements to disclose negative information on product labels. Some Coca Cola’s carbonated drinks have adverse health consequences. For this reason, many governments consider to pass legislation that requires disclosing such information on product labels. Products containing such information may be perceived negatively and lose its customers. Decreasing gross profit and net profit margins. Coca Cola’s gross profit and net profit margin was decreasing over the past few years and may continue to decrease due to higher water and other raw material costs. Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over market share in BRIC countries, especially India. Saturated carbonated drinks market. The business significantly relies on the carbonated drinks sales, which is a threat for the Coca Cola as the market of carbonated drinks is not growing or even declining in the world. Significant focus on carbonated drinks. The business is still focusing on selling Coke, Fanta, Sprite and other carbonated drinks. This strategy works in short term as consumption of
  23. 23. CORPORATE GOVERNANCE PROJECT Page 23 of 40 carbonated drinks will grow in emerging economies but it will prove weak as the world is fighting obesity and is moving towards consuming healthier food and drinks. Undiversified product portfolio. Unlike most company’s competitors, Coca Cola is still focusing only on selling beverage, which puts the firm at disadvantage. The overall consumption of soft drinks is stagnating and Coca Cola Company will find it hard to penetrate to other markets (selling food or snacks) when it will have to sustain current level of growth. High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCE’s acquisition significantly increased Coca Cola's debt level, interest rates and borrowing costs. Negative publicity. The firm is often criticized for high water consumption in water scarce regions and using harmful ingredients to produce its drinks. Brand failures or many brands with insignificant amount of revenues. Coca Cola currently sells more than 500 brands but only few of the brands result in more than $1 billion sales. Plus, the firm’s success of introducing new drinks is weak. Many of its introduction result in failures, for example, C2 drink. FUTURE OUTLOOK Bottled water consumption growth. Consumption of bottled water is expected to grow both in US and the rest of the world. Increasing demand for healthy food and beverages. Due to many programs to fight obesity, demand for healthy food and beverages has increased drastically. The Coca Cola Company has an opportunity to further expand its product range with drinks that have low amount of sugar and calories. Growing beverages consumption in emerging markets. Consumption of soft drinks is still significantly growing in emerging markets, especially BRIC countries, where Coca Cola could increase and maintain its beverages market share. Growth through acquisitions. Coca Cola will find it hard to keep current growth levels and will find it hard to penetrate new markets with its existing product portfolio. All this can be done more easily through acquiring other companies. The best global brand in the world in terms of value. According to Inter brand, The Coca Cola Company is the most valued ($77,839 billion) brand in the world. World’s largest market share in beverage. Coca Cola holds the largest beverage market share
  24. 24. CORPORATE GOVERNANCE PROJECT Page 24 of 40 in the world (about 40%). Strong marketing and advertising. Coca Cola’ advertising expenses accounted for more than $3 billion in 2012 and increased firm’s sales and brand recognition. Most extensive beverage distribution channel. Coca Cola serves more than 200 countries and more than 1.7 billion servings a day. Customer loyalty. The firm enjoys having one of the most loyal consumer groups. Bargaining power over suppliers. The Coca Cola Company is the largest beverage producer in the world and exerts significant power over its suppliers to receive the lowest price available from them. Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR programs, such as recycling/packaging, energy conservation/climate change, active healthy living, water stewardship and many others, which boosts company’s social image and result in competitive advantage over competitors. INCREASES IN PROFIT DUE TO NEW PRODUCT & SERVICES To switch the focus to profitable growth, Coca-Cola developed Revenue Growth Management (RGM), a fully integrated business model identifying the complete range of long-term growth opportunities. BTS worked with more than 470 of Coca-Cola’s most senior managers to create a program designed to change management culture from the top down. Company CEO Muthar Kent recently spoke with the paper about Coca-Cola Life, which is sweetened with sugar and zero-calorie Stevie and made its debut in Argentina earlier this year. A 20-ounce serving of the soda contains 100 calories, which is less than half of the calories that are in a 12-ounce can of regular Coke. Is this new product a well-meaning attempt to help slim down waistlines, however, or a sign of ongoing trouble for the soda industry?
  25. 25. CORPORATE GOVERNANCE PROJECT Page 25 of 40 Bottling operations in 12 high-growth markets across Southern and East Africa with pro forma annual revenue of US$2.9bn and volume of 729 million unit cases (41 million hector liters)Largest Coca-Cola bottler in Africa and 10th largest worldwide with scale and resources to capture and accelerate the long-term growth potential in African markets Shared vision Coca Cole Life is being launched in Australia in April next year The gleaming green can has 35 per cent less sugar than Classic coke Natural sweetener, Stevie, is used to replace the sugar Daily Mail Australia was given an exclusive taste of the new product Main Competitors PepsiCo Nestle Dr. Pepper Snapple group Ocean Spray Rasna PowerAde Gatorade Monday Virgin Cola Soda stream Soda Stream's Red Bull Wine Coca. Benetton Coca Cola Bisleri home
  26. 26. CORPORATE GOVERNANCE PROJECT Page 26 of 40 ACHIEVEMENT ON COMPETITORS The Coca-Cola Company is confident that all the steps they have taken will put them on the forefront of change. They believe that they have a strong understanding of consumer habits and will continue to learn more as they continue to build our core carbonated soft drink business and as they enter into new categories. With the Coca-Cola’s new culture taking hold, combined with their great brands and bottling partners, they are optimistic about their ability to deliver on volume growth and financial results consistently over the long-term. Coca cola markets four of the words top five nonalcoholic sparking beverage brands including, coke, coke diet, sprite and Fanta. Thus boasting a high level of consumer acceptance. Given increasing health consciousness amongst consumers. Coca cola is slowly expending the portfolio of non-carbonating drinks and command a leading space in many still beverage categories. Coca cola possesses one of the largest distribution networks in the word which gives it a huge competitive advantage. The acquisition of the north American bottling business from CCE has helped the evolution of the entire north American operations of the company. Costs saving from its productivity initiatives will be used towards further brand building and will help mitigate the negative impact from rising commodity costs. There by boosting long term profitability. Coca cola boast a solid cash position which can be used to return value to share holder through higher dividends and regular buy backs as well as be re-invested back in the business STRATEGIES FOR GROWTH The more realistic the simulation, the easier it is for people to activate and go back to the business to apply their new capabilities and knowledge.” - Terry Hildebrand, Global Director of Learning and Development, Coca-Cola Coca-Cola developed Revenue Growth Management (RGM), a fully integrated business model identifying the complete range of long-term growth opportunities. BTS worked with more than 470 of Coca-Cola’s most senior managers to create a program designed to change management culture from the top down. Working with The Coca-Cola Company to develop a business model to continue exploring and participating in new lines of beverages, extending existing product lines and effectively advertising and marketing our products.
  27. 27. CORPORATE GOVERNANCE PROJECT Page 27 of 40 Developing and expanding our still beverage portfolio through innovation, strategic acquisitions and by entering into agreements to acquire companies with The Coca-Cola Company; Expanding our bottled water strategy with The Coca-Cola Company through innovation and selective acquisitions to maximize profitability across our market territories. Strengthening our selling capabilities and go-to-market strategies, including pre-sale, conventional selling and hybrid routes, in order to get closer to our clients and help them satisfy the beverage needs of consumers. Implementing selective packaging strategies designed to increase consumer demand for our products and to build a strong returnable base for the Coca-Cola brand. Replicating our best practices throughout the value chain. Rationalizing and adapting our organizational and asset structure in order to be in a better position to respond to a changing competitive environment. Committing to building a multi-cultural collaborative team, from top to bottom; and Broadening our geographic footprint through organic growth and strategic joint ventures, mergers and acquisitions. PART 4 PATTERN OF SHAREHOLDING
  28. 28. CORPORATE GOVERNANCE PROJECT Page 28 of 40 . Amount (thousand) Financial institutions 73 17,820 Securities companies 34 3,942 Other domestic corporations503 46,532 Foreign corporations 328 23,712 Individuals and others 53,064 17,134 Treasury stock 1 1,983 Total 54,003 111,125 Stock informations (As of June 30, 2014) Authorized shares (Thousands) 270,000 Outstanding shares (Thousands) 111,125
  29. 29. CORPORATE GOVERNANCE PROJECT Page 29 of 40 Number of shareholders 54,003 MAJOR SHAREHOLDERS Major Holders (Dec 12, 2014) Breakdown % of Shares Held by All Insider and 5% Owners: 1% % of Shares Held by Institutional & Mutual Fund Owners: 60% % of Float Held by Institutional & Mutual Fund Owners: 60% Number ofInstitutions Holding Shares: 1653 major Direct Holders (Forms 3 & 4) Holder Shares Reported REYES JOSE OCTAVIO 0 Feb 28, 2014 FINAN IRIAL 327,366 Sep 2, 2014 KENT AHMET MUHTAR 262,118 Feb 25, 2014 CAHILLANE STEVEN A 224,073 Apr 30, 2013 BOZER AHMET C 175,660 Feb 18, 2014 Top Institutional Holders
  30. 30. CORPORATE GOVERNANCE PROJECT Page 30 of 40 Holder Shares % Out Value* Reported Berkshire Hathaway,Inc 400,000,000 9.13 17,064,000,000 Sep 30, 2014 Vanguard Group, Inc. (The) 237,258,704 5.42 10,121,456,312 Sep 30, 2014 State Street Corporation 171,925,522 3.93 7,334,342,768 Sep 30, 2014 Capital World Investors 119,902,250 2.74 5,115,029,985 Sep 30, 2014 FMR, LLC 107,418,333 2.45 4,582,466,085 Sep 30, 2014 BlackRock Institutional TrustCompany, N.A. 103,184,215 2.36 4,401,838,611 Sep 30, 2014 Northern Trust Corporation 68,788,679 1.57 2,934,525,046 Sep 30, 2014 Bank of New York Mellon Corporation 54,393,871 1.24 2,320,442,536 Sep 30, 2014 BlackRock Fund Advisors 46,219,288 1.06 1,971,714,826 Sep 30, 2014 Yacktman AssetManagementLp 42,906,057 0.98 1,830,372,391 Sep 30, 2014 Top Mutual Fund Holders Holder Shares % Out Value* Reported Vanguard Total Stock Market Index Fund 64,608,728 1.48 2,756,208,336 Sep 30, 2014 Washington Mutual Investors Fund 43,929,200 1.00 1,874,019,672 Sep 30, 2014 Vanguard 500 Index Fund 40,980,146 0.94 1,748,213,028 Sep 30, 2014 SPDR S&P 500 ETF Trust 40,473,020 0.92 1,726,579,033 Sep 30, 2014 Vanguard Institutional Index Fund- Institutional Index Fund 39,991,049 0.91 1,706,018,150 Sep 30, 2014 American Balanced Fund 27,345,000 0.62 1,166,537,700 Sep 30, 2014 Vanguard Specialized-Dividend Appreciation Index Fund 24,436,602 0.56 960,114,092 Jul 31, 2014 AMG Yacktman Focused Fd 20,000,000 0.46 847,200,000 Jun 30, 2014 Vanguard Growth Index Fund 19,414,270 0.44 828,212,758 Sep 30, 2014v Select Sector SPDR Fund-Consumer Staples 17,867,868 0.41 762,243,248 Sep 30, 2014 VALUE OF SHARES (During The Last Five Years) Share Price Range, Past 5 Years Minimum 25.02 Jul 1 2010 Maximum 44.83 Nov 28 2014 Average 35.70
  31. 31. CORPORATE GOVERNANCE PROJECT Page 31 of 40 Prices Date Open High Low Close Avg Vol Dec 1, 2014 44.18 44.77 40.87 40.91 17,132,000 Jan 2, 2014 41.12 41.23 37.72 37.82 14,551,700 Dec 2, 2013 40.10 41.39 38.87 41.31 14,898,700 Jan 2, 2013 36.99 37.87 36.52 37.24 15,034,500 Dec 3, 2012 37.90 37.99 35.58 36.25 14,263,800 Jan 3, 2012 70.15 70.71 66.57 67.53 15,688,700 Dec 1, 2011 67.00 70.29 65.88 69.97 15,115,100 Jan 3, 2011 65.88 65.88 61.89 62.85 19,122,700 Dec 1, 2010 63.94 65.88 63.70 65.77 18,993,600 Jan 4, 2010 57.16 57.43 53.70 54.25 21,449,100 * Close price adjusted for dividends and splits. EARNINGS PER SHARE Fiscal Period Dec10 Dec11 Dec12 Dec13 Sep14 Revenue per Share ($) 7.52 10.02 10.47 10.39 2.69 EBITDA per Share ($) 3.51 2.98 3.10 3.09 0.74 EBIT per Share ($) 1.80 2.19 2.35 2.27 0.61 Earnings per Share (diluted)($) 2.53 1.85 1.97 1.90 0.48 eps without NRI ($) 2.53 1.85 1.97 1.90 0.48 Free Cash flow per Share ($) 1.57 1.41 1.72 1.77 0.66 Dividends Per Share 0.88 0.94 1.02 1.12 0.31 Book Value Per Share ($) 6.76 6.99 7.34 7.54 7.64 Tangible Book per share ($) 0.89 0.88 1.22 1.26 1.48 Month End Stock Price ($) 32.89 34.99 36.25 41.31 42.66
  32. 32. CORPORATE GOVERNANCE PROJECT Page 32 of 40 PAYMENT OF DIVIDEND Prices Date Open High Low Close Volume Adj Close* Nov 26, 2014 0.305 Dividend Mar 12, 2014 0.305 Dividend Nov 27, 2013 0.28 Dividend Mar 13, 2013 0.28 Dividend Nov 28, 2012 0.255 Dividend Mar 13, 2012 0.255 Dividend Nov 29, 2011 0.235 Dividend Mar 11, 2011 0.235 Dividend Nov 29, 2010 0.22 Dividend Mar 11, 2010 0.22 Dividend 0 0.5 1 1.5 2 2.5 3 2009 2010 2011 2012 2013 EarningPerShare
  33. 33. CORPORATE GOVERNANCE PROJECT Page 33 of 40 CEO COMPENSATION PATTERN A publicly-traded company is only required to disclose information concerning the amount and type of compensation paid to its CEO, CFO, and the three other most highly compensated executive officers in a given year. Information about compensation for these individuals may be unavailable in prior years if they were not in their current roles or did not qualify as among the most highly compensated officers at the time. Methodology: Compensation rank is based on total compensation for latest fiscal year. Total compensation for each chief executive includes the following: salary and bonuses; other compensation, such as vested restricted stock grants, LTIP payouts and perks; and stock gains, the value realized by exercising stock options. Efficiency rank is based on our chief executive's performance/pay score. Ranks are given only to chief executives who have a six-year tenure and six-year compensation history. The Coca-Cola board, for example, lays out the formula that set the 2013 cash bonus for Muhtar Kent, its chief executive (base salary x base salary factor x business performance factor). It explains how a failure to achieve certain goals helped limit the bonus to $2 million, but also describes how Mr. Kent got millions more in stock and options. It notes that under his leadership, Coke had “continued to gain value share globally in nonalcoholic ready-to-drink beverages,” and tells shareholders why the board might require him to fly on the company jet (“to allow travel time to be used productively for the Company”). What was all that worth? A tidy $ 18 million. 0 0.2 0.4 0.6 0.8 1 1.2 1.4 2009 2010 2011 2012 2013 DividendPerShare
  34. 34. CORPORATE GOVERNANCE PROJECT Page 34 of 40 Name/Title 2010 2011 2012 2013 Key Executive Compensation 31,186,076 47,954,912 60,437,264 61,737,947 Muhtar Kent/Chairman of the Board and Chief Executive Officer 18,813,013 24,782,017 29,115,573 30,460,186 Gary P. Fayard/Executive Vice President and Chief Financial Officer 5,755,536 8,268,766 8,524,572 8,222,962 Steven A. Cahillane/Former Executive Vice President and President, Coca-Cola Americas - - 6,889,847 6,149,084 Ahmet Bozer/Executive Vice President and President, Coca- Cola International - 6,394,607 7,790,905 7,343,119 Jose Octavio Lagunes Reyes/Vice Chairman, The Coca-Cola Export Corporation 6,617,527 8,509,522 8,116,367 9,562,596
  35. 35. CORPORATE GOVERNANCE PROJECT Page 35 of 40 PART 5 : Corporate Social Responsibility ANALYSING CORPORATION CSR Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change. Corporate Social Responsibility projects within Coca-Cola Sabco are chosen using decentralized model within a broad Group Corporate Responsibility Policy. Each territory, and, in South Africa, each region chooses the community project they would like to support, but are called upon to justify their selections within the Group Policy and Governance Processes. Additionally, the Group Policy requires each operation to invest the equivalent of at least one percent of its operating profit in community projects. The following section of the report intends to present some examples of how Coca-Cola Sabco Partners with its communities to provide support in areas where assistance is required. While Coca-Cola Sabco often provides funding for projects, many of our employees devote their own time to the initiatives we support and we thank them as well as the many people from the Community organizations we partner with. Their selfless devotion to securing the welfare of Others help make the world a place that we can be proud to live in. HEALTH & WELL BEING The Company’s operations conduct intervention programs that address Specific health risks, including HIV/AIDS, malaria and lifestyle diseases such as obesity. In Nigeria, for example, Coca-Cola Hellenic provides HIV/AIDS education, voluntary counseling, Testing and anti-retroviral medicines together with government, the Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria, local NGOs and The Coca-Cola Company. Awareness Activities were extended in 2007 to reach 3,000 part-time employees, dealers, suppliers and Contractors. In Ukraine, all supervisors and managers were trained to manage HIV/AIDS in the Workplace during 2007.The Company’s Nigerian operations teaches employees to prevent and control malaria at work and at home. During 2007 a further 5,000 insecticide-treated nets were provided for employees to use at home. Physical activity and nutrition education are the focus of Company efforts in countries where obesity and lifestyle diseases are rising. New programs have been launched in Greece, in addition to those in Hungary, Romania and Ireland.
  36. 36. CORPORATE GOVERNANCE PROJECT Page 36 of 40 A FAIR AND ETHICAL WORKPLACE As a participant in the UN Global Compact, Coca-Cola Hellenic Upholds internationally recognized labor and human rights standards and commits to fight Corruption. The Company’s Human Rights Policy and Equality of Opportunity Policy (available on the Company website) are integrated into management training, and policies are widely common Child labor is expressly prohibited, and appropriate checks are made during Recruitment. Approximately 90% of Company operations have implemented policies, and over 11,000 hours of training have been conducted to date. SUSTAINABLE AGRICULTURE Protecting freshwater and small farms in South Africa Project Khula is helping small-scale sugarcane farmers in the KwaZulu- Natal region of South Africa improve their yields and livelihoods while reducing environmental impacts. The Coca-Cola Foundation provided a $150,000 grant to help support the project. Launched in September 2010 and named in 2012 with the Zulu word for “growth,” Project Khula leverages the mentorship program of a local growers association to train smallholder farmers in better land and catchment management practices. It aims to support development of more than 3,000 small-scale growers on over 8,400 hectares, and to help the local sugar mill, the local government and other local stakeholders organize smaller farms into cooperatives. The cooperatives are expected to help improve productivity and provide opportunities for funding expansion of the program. Mentors will work with farmers to maintain and restore riparian areas and increase pesticide use-efficiency. The project also seeks to remove Invasive plant species threatening freshwater ecosystems and to develop improved sustainable practices that can be adopted by other South African sugarcane growers. In 2011, the project team assisted in the formation of two planned cooperatives, engaging 97 farmers who farm about 250 acres. Cane plantings on the farms could eventually produce as much as 8,000 tons of sugar every two years, providing farmers and their families with a potential collective income of 3 million rand. Farmers also cleared 266 acres of invasive trees and shrubs, helping to conserve local freshwater sources. CORPORATE GOVERNANCE PRACTICES FRAUD Rumor: Scam postings claim to show "horrific" video about Coca-Cola Fact Messages posted on Facebook and Twitter are claiming to provide links that users can click to view a supposedly "horrific" video showing the "truth" about Coca-Cola.In fact, there is no such video. Users who try to view the video are instead asked to share links to the content and to respond to surveys requesting personal information. This activity appears to be part of a phishing scam in which perpetrators attempt to obtain personal information that can be used to commit identify theft. Consumers should avoid clicking on these links and should not
  37. 37. CORPORATE GOVERNANCE PROJECT Page 37 of 40 provide any personal information. Anyone who has provided information to these sites should contact their local and/or federal authorities for advice on how to protect their personal information and privacy. Rumor: Coca-Cola job offers/job posting websites Fact The Coca-Cola Company has learned of emails in circulation and postings on internet websites that falsely offer jobs to individuals. Some examples include: Emails or websites that offer jobs to individuals willing to collect money on behalf of Coca-Cola for charity work in Georgia and Asia. The subject line on such emails may read "Coca-Cola Jobs" and may refer to Coca-Cola Charity Coordinator, Coca-ColaCharityCoordinator@live.com, and/or Tony Cook. A website using the url www.instanthumanrecources.com that claims to be an official job site for the Company. The fraudulent job application requests personal information, including Social Security numbers and copies of driver’s licenses. The website has been designed to look legitimate by including Company images, photographs and other trademarks. An offer to pay individuals to place signage on their cars or other vehicles to advertise our energy drink or other brands. In some cases, the perpetrators have contacted the victims and falsely claimed to hire them in order to obtain additional personal and financial information and in some cases have asked them to cash fraudulent checks and send them money. The Coca-Cola Company is in no way associated with this website. The jobs listed on the sites or in the emails are not real, we are not a sponsor, and our name and trademarks are used here without permission. We are currently investigating the situation with the appropriate authorities This appears to be a form of fraud known as "phishing," wherein perpetrators attempt to develop relationships with victims in order to obtain personal and financial information. Common signs that a message may be a part of an email scam or phishing campaign include:  Spelling and grammatical errors in the email;  Improper use of company trademarks;  Sender's use of free, non-corporate email accounts (such as Yahoo!, AOL, g-mail and Hotmail);  Requests for personal information and the promise of quick financial gain. PUNISHMENTS In September 2009 SHANGHAI — Police here have detained a former employee of a Coca-Cola bottling plant, whom they accused of corruption and bribery. The detention of the employee from the Shanghai Shen-Mei Beverage and Food Company, a bottling plant partly owned by Coca-Cola, was reported over the weekend by China’s state-run news media, which said the employee took about
  38. 38. CORPORATE GOVERNANCE PROJECT Page 38 of 40 $1.5 million in bribes. A spokesman for Coca-Cola, Kenth Kaerhoeg, confirmed on Sunday that a female middle manager at the plant was detained by Shanghai police this year and then dismissed by the bottling company. Mr. Kaerhoeg declined to give further details about the case, but he said Coca-Cola was cooperating with the investigation. Calls to Shen-Mei, in which Coca-Cola has a minority stake, went unanswered on Sunday and Shanghai police officials could not be reached for comment. The detention is the second prominent bribery case this year involving a global company operating in China. That corruption drive, coupled with the Rio Tinto case — which initially involved allegations of stealing state secrets — has unnerved many foreign business people working in China. But even though corruption is pervasive in China, very few executives working for global companies have been detained or arrested by Chinese police. Legal experts say that is partly because investigators focus on the government officials who accept the bribes; but they also say the government is reluctant to go after foreign companies. There have been indications in China’s state-run news media, though, that investigators could begin to target multinational corporations. And many foreign companies operating here are warning employees to use extra caution because the United States Justice Department has stepped up its enforcement of the Foreign Corrupt Practices Act, which forbids the paying of bribes to government officials to win or influence business deals. In July, Control Components, a company based in California, pleaded guilty to foreign bribery charges and agreed to pay an $18.2 million fine. The company had been accused of paying bribes to officials in more than 30 countries over many years, including to Chinese state-owned companies. In the Coca-Cola case, the National Business Daily, a Chinese state-controlled publication, reported over the weekend that the bottling plant middle manager had worked in the marketing department of the bottling company. Coca-Cola has huge operations in China, including about 38 bottling plants, and about 30,000 employees in China, and is pushing to expand aggressively here. This year, the company’s move to pay $2.4 billion to acquire one of China’s biggest juice makers, the Huiyuan Juice Group, was blocked by the Chinese government, which cited antitrust concerns.
  39. 39. CORPORATE GOVERNANCE PROJECT Page 39 of 40 PART 6 : CONCLUSION Coca-Cola as a Company has made several mistakes, is making some but at the same time they are doing their best to rectify them. Their Acts show an inclination towards sustainability & willingness to support communities. They have sustainability reports and other yearly reports openly available on their website to ensure more transparency and to involve people in their activities. They are one of the biggest Companies in the world.• They were at fault at the Belgian Recall incident. They were initially not that active but later took necessary measures and acted to rectify those mistakes. To summarize it can be said that Coca-Cola Company has gone through a number of challenging situations in the past five years. The major challenge was the protests from the environmentalists for exploiting the resources. The company has tackled this issue to an extend by agreeing to the demands of the protesters and the governments. But it should put in more effort to get back the reputation it had in third world countries. Innovative technologies that are eco-friendly must be introduced. The company is now into more and more green initiatives which are a very positive sign. If such efforts continue, it would undoubtedly be the most reputed and recognized brand in the world. RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company, which are following.  Coca ColaCompanyshouldtryto emphasismore onprovidingtheirinfrastructure in the market to facilitate their customers.  Accordingto the survey,conductedbythe international firmPakistani peoplelikelittle bit sweetercoladrink.Soforthiscoca colacompanyshouldproduce their product.According to the local demand.  Marketingteamshouldtryto increase the availabilityof Coke inrural areas.  Theyshouldalsofocusthe oldpeople.  Now young generation has a trend to drink coke 2 regular bottles at same time, so providing more satisfaction to them company should introduce ½ litre disposable bottle.
  40. 40. CORPORATE GOVERNANCE PROJECT Page 40 of 40 REFERENCES www.coca-cola.com/ www.coca-cola.com/template1/index.jsp?locale=en_US www.thecoca-colacompany.com/ www.pakvisit.com/.../jobs%20in%20coca%20cola%20Pakistan.htm en.wikipedia.org/wiki/The_Coca-Cola_Company www.thecoca-colacompany.com/.../chronicle_birth_refreshing_idea.html - www.likecool.com/Coca_Cola_History--Pic--Gear.html www.ideafinder.com/history/inventions/cocacola.htm www.thecoca-colacompany.com/.../av_advertising.html www.psdeluxe.com/.../100-old-coca-cola-ads-and-posters.html

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