Coca cola csr report

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Coca cola csr report

  1. 1. Business Ethic Team Project Coca - Cola Jae Hyuck Tscha 1195710 Mohamed Lamine Bachir L Mahaman 1190032 Balzhan Zhengis 1052811 Dilan Karaman 1. Who are the stakeholders? There are six of stakeholders in Coca-Cola which are: -Community -Shareholders -Employees –Customers –Suppliers -Government
  2. 2. 2. What are stakeholders’ stakes? As mentioned above, there are six stakeholders and each of the stakeholders works differently. Here’s how the each of them works. Community These are organizations that affect Coca-Cola due to their abilities to influence the production process they aremainly represented in 4 groups: -International Sport and Culture Association (ISCA), Given Coca-Cola’s support of sport and physical activity programs worldwide, we believed we shared many common objectives with ISCA and sought a collaborative relationship. -The Ensemble Prévenons l’Obésité Des Enfants (EPODE), in 2011, The Coca-Cola Company is proud to help support the spread of EIN’s global mission to reduce the prevalence of childhood obesity and its associated health risks. In 2012, The Coca-Cola Foundation awarded $1.07 million to support EPODE’s OPEN project. -International Federation of Broomball Associations (IFBA), meeting with a variety of stakeholders to discuss our progress against the five commitments IFBA members made in 2008 to the World Health Organization. -Ceres, for more than a decade, The Coca-Cola Company has engaged with Ceres on a wide range of sustainability issues ranging from our sustainability reporting and goals to our water policies and approach to other material environmental, social and governance issues. -EU Platform for Action on Diet, Physical Activity and Health. Shareholders On FAQs section in web site of Coca Cola, they answering about the question ‘who owns the company?’ with ‘The Coca‑Cola Company is a public company that trades its shares on the New York stock exchange - so we are 'owned' by our thousands of shareholders and investors around the world.’ To be specific, they are mainly constituted of the board of directors, which are individual or group of companies that own Coca Cola brand. Right behind them come the Senior Operations Leadership and Senior Functional Leadership. Employees Employees through their performances and objectivity affect the company in a certain way. Also, to make their voice in the company, they use syndicates or other external organization like International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Association (IUF) and International Labor Organization (ILO). It is crucial to work on human resource management department to handle the problems or potential problems about employees for stake well for Coca Cola. Customers Customer through their purchase and critics allows the company to orient their goal. Most of the main capital of the firms is mainly from teenagers and young adults. Since Coca Cola works and spends their time and capital for health campaigns, Coca Cola needs to care about their customers as first aim. The more customers buy or feedback on Coca Cola, the more Coca Cola
  3. 3. can affect customer with better quality, services, events and so on. Thus, customer can be the strongest stakeholders for the Coca Cola as many as customer love it. Suppliers Supplier through the quality and time of delivery of their product affect the company somehow such as feedbacks from distribution channels, suppliers of minor resources, human resource sector and etc. Without those many of suppliers, Coca Cola cannot maintain producing their products properly. Government Rules and regulations of the government affect the policy of Coca Cola not only directly but also in a roundabout way. Being present in almost all the countries in the world, Coco Cola has to deal with lot of rules and regulations for each case. Thus, Coca Cola needs to work and take care of on those rules and regulations to produce in legally for each country. 3. What economic, legal, ethical, and philanthropic responsibilities does the firm have to its stakeholders? Stakeholders Economic Legal Ethical Philanthropic Community Medium High High High Shareholders High High Medium Medium Employees High High Medium High Customers High Medium Medium High Suppliers High High Medium Medium Government High High Medium Low
  4. 4. -Attachment Breakdown % of Shares Held by All Insider and 5% Owners: 5% % of Shares Held by Institutional & Mutual Fund Owners: 62% % of Float Held by Institutional & Mutual Fund Owners: 65% Number of Institutions Holding Shares: 1561 Major Direct Holders (Forms 3 & 4) Holder Shares Reported DILLER BARRY N/A Apr 27, 2012 REYES JOSE OCTAVIO 0 Feb 28, 2014 KENT AHMET MUHTAR 262,118 Feb 25, 2014 FINAN IRIAL 327,366 Feb 18, 2014 FAYARD GARY P 146,510 Feb 18, 2014 Top Institutional Holders Holder Shares % Out Value* Reported Berkshire Hathaway, Inc 400,000,000 9.08 16,524,000,000 Dec 31, 2013 Vanguard Group, Inc. (The) 218,661,801 4.96 9,032,918,999 Dec 31, 2013 State Street Corporation 176,901,346 4.02 7,307,794,603 Dec 31, 2013 FMR, LLC 124,359,813 2.82 5,137,303,875 Dec 31, 2013 BlackRock Institutional Trust Company, N.A. 98,853,867 2.24 4,083,653,245 Dec 31, 2013 Northern Trust Corporation 70,816,142 1.61 2,925,414,826 Dec 31, 2013 Bank of New York Mellon Corporation 54,975,213 1.25 2,271,026,049 Dec 31, 2013 Yacktman Asset Management Lp 43,243,371 0.98 1,786,383,656 Dec 31, 2013 BlackRock Fund Advisors 42,427,078 0.96 1,752,662,592 Dec 31, 2013 Grantham Mayo Van Otterloo & Company 38,425,687 0.87 1,587,365,129 Dec 31, 2013 Top Mutual Fund Holders Holder Shares % Out Value* Reported
  5. 5. Vanguard Total Stock Market Index Fund 58,070,934 1.32 2,199,726,979 Sep 30, 2013 Vanguard Institutional Index Fund- Institutional Index Fund 37,332,610 0.85 1,542,210,119 Dec 31, 2013 Vanguard 500 Index Fund 36,636,011 0.83 1,513,433,614 Dec 31, 2013 SPDR S&P 500 ETF Trust 35,796,092 0.81 1,353,808,199 Jan 31, 2014 Fidelity Contrafund Inc 31,264,279 0.71 1,291,527,365 Dec 31, 2013 Washington Mutual Investors Fund 27,920,000 0.63 1,153,375,200 Dec 31, 2013 Vanguard Specialized-Dividend Appreciation Index Fund 20,624,943 0.47 816,128,994 Oct 31, 2013 Managers AMG Funds-Yacktman Focused Fund 19,400,000 0.44 801,414,000 Dec 31, 2013 Vanguard Growth Index Fund 18,552,060 0.42 766,385,598 Dec 31, 2013 Managers AMG Funds-Yacktman Fund 16,900,000 0.38 698,139,000 Dec 31, 2013 Coca-Cola’s Crises Management: Coca Cola is the world’s leading manufacturer, marketer and distributor of non-alcoholic drinks and syrups. The company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not ready-to-drinks powder products. Now operating in more than 200 countries and producing nearly 400 brands of beverages, the Coca Cola system has successfully applied a simple formula on a global scale: ‟Provide a moment of refreshment for a small amount of money- a billion times a day” Crises might happen at any unexpected point to any company or corporation. This process is not predictable but companies are being prepared for this sort of issues in order to be able to prevent it and manage it timely. No matter to the size and success of corporation crises indeed has potential to occur in a different industries of the company, it ranges from manufacturing and production sides all the way through logistics to financial crises’, moreover some external crises might occur that are being caused not relatively to the companies internal system. By narrowing down on Coca Cola’s case we will be taking deep look on crises that has been occurred in India. Now on to the actual crises. On august 5, 2003 The Center of Science and Environment (CSE), an activist group in India issued a press release stating: “12 major cold drink brand sold in and around Delhi contain a deadly cocktail of pesticide residues” This caused a title wave to sweep through Coca Cola’s profits in India and the stock market back in the US. The facts that three samples of twelve Pepsi CO and Coca- Cola brands from across the city were found to contain
  6. 6. pesticide residues surpassing global standards surpassing global standards by 30-36 times including lindane, DDT, Malathion and chlorpyfiros. These four pesticides were known to cause cancer and damage to the nervous and reproductive systems, birth defects and severe disruption of the immune system. Due to these finding, the India’s government decided to ban these products. The share of Coca Cola dropped 5$ in the stock market and the huge market and potential expansion of the India market was in jeopardy by not only Coke brand but Pepsi brand as well. This had and adverse impact on the sales of Coca Cola, with a drop of almost 30- 40% of sales within first two weeks only, on the heels of 75 % five-year trajectory. “ Drinking Coke is like drinking farmer’s blood in india”- Nandlal Master of Lok Samiti and the National Alliance of people’s movements at march and Rally Between Coca- Cola’s Battling Plants at November 14, 2004 Coca Cola’s response to that: From 1993-2003 Coca Cola expensed 1 $ billion in India making them one of the country’s highest investors. When CSE issued report on bottled drinking water, Coca Cola faced image problems of both Indian and US market; its social responsible reputation was risked to lose its positions. After the report has been declared, Coca Cola along with Pepsi chose to attack CSE’s credibility. Basically company felt that they were wrongly accused of serving Indian people with ‘’deadly cocktail of pesticide residues”, and they start attacking the CSE, calling their findings “misleading and unaccredited”. Both companies did not realize the power of NGO and that they have a high credibility around the world and the general public often takes their side rather than that of a large of multi-national organization. So basically Coca Cola denied the report citing regular testing at independent laboratories proving the safety of their product, and while products being tested Coca Cola decided to run campaign to gain the public trust and interest back. CSR initiatives by Coca Cola India Coca-Cola opened an exclusive website, www.cokefacts.org, which addressed the allegations related to India and other countries. In another official statement, Coca-Cola rebutted the charges against its bottling plant at Plachimada, Kerala. The company said the plant was not responsible for the depletion of the underground water table. It quoted a study conducted in October 2002 by Dr. R.N. Athvale, emeritus scientist at the National Geophysical Research Institute78 (NGRI), which had concluded that there was no field evidence of overexploitation of the groundwater reserves in the area surrounding the plant. The report had added that any underground depletion could not be attributed to water extraction in the plant area.
  7. 7. Coca-Cola also quoted another report prepared by the Palakkad District Environmental. Protection Council and Guidance Society in June 2002. The report had concluded that the factory had not caused any environmental damage at any level. The company also quoted a study conducted by the Department of Family and Child Welfare, Central Government of India, after the allegations regarding high pesticide level in its beverages were made in August 2003. It said the study had found that the products sold by the company were perfectly safe. It also provided scientific data on the safety of its beverages when the issue cropped up in 2006 and with the help of these, managed to get the temporary ban imposed on its beverages in some states of India revoked. Coca-Cola maintained that most of the allegations leveled against it were false and were not supported by reliable data. It alleged that it was being targeted, as it was the leading beverage company. The way coca-cola managed those crises showed a contradiction with the CSR repport. Coca - cola pretends to be a responsible company that take care of its consumer and assume its responsibilities. And by deciding to ignore the complaint maid on them they break some of their principle mentioned in the report. Coca – Cola’s Corporate Governance Yes, The Coca-Cola Company is committed to good corporate governance, which promotes the long-term interests of shareowners, strengthens Board and management accountability and helps build public trust in the Company. The Board is elected by the shareowners to oversee their interest in the long-term health and the overall success of the business and its financial strength. The Board serves as the ultimate decision making body of the Company, except for those matters reserved to or shared with the shareowners. The Board of Directors has established Corporate Governance Guidelines which provide a framework for the effective governance of the Company. The Board regularly reviews developments in corporate governance and updates the Corporate Governance Guidelines and other governance materials as it deems necessary and appropriate. *check attachment for Corporate Governance Guidelines of Coca – Cola Coca-cola as a listed company Robert W.Woodruff is the one who purchased Coca-Cola for $ 25 million on 5th of September in 1919, since then company was re-incorporated as Delaware Corporation and it became publicly traded company. Its stock was put on public sale on New York Stock Exchange, with common stock at 40$ per share and preferred stock at $100 per share. Coca Cola for many years has been referenced as the perfomance of the stock, as it once became one of the 30 stocks which makes up of Dow Jones Industrial Average. Its stock is available from a direct purchase program
  8. 8. Current Stock Exchange of Coca Cola NYSE: KO Open Day High 52-Wk High $38.22 0.18 (0.47%) $38.36 $38.59 $43.43 Shares Outstanding Volume Prev. Close Day Low 52-Wk Low 4,405,893,000 11,753,588 $38.40 $38.11 $36.83 The world's largest beverage company with a market capitalizaion of $176.20 billion, Coca Cola is a market leader with a market share of 34%, by sales volume, in the industry and its competitor PepsiCo Inc. holds 26.3% of the market sales volume-wise. Coca Cola distinguishes with its extensive distribution network in 200 countries and its infrastructure is very difficult to compete with, that is why it's competitive advantage is very sustainable in the market. Diversity of the board members -Numbers: There are 17 members of borders of directors with 3 independent members Name Position Independent Muhtar Kent Chairman, Executive Committee NO Herbert A. Allen Member, Management Development NO
  9. 9. Committee Ronald W. Allen Member NO Ana Botín Member NO Howard G. Buffett Member NO Richard M. Daley Member NO Barry Diller Member, Finance Committee NO Helene D. Gayle Member NO Jacob Wallenberg Member NO Alexis M. Herman Member, Public Issues and Diversity Review Committee NO Robert A. Kotick Member NO Peter V. Ueberroth Member NO Donald F. McHenry Member NO Sam Nunn Member NO James D. Robinson III Member, Audit Committee YES Maria Elena Lagomasino Member , Compensation Committee YES Evan G. Greenberg Member , Committee on Directors and Corporate YES -Female members: There are 4 female boards of directors who are -Ana Botín -Helene D. Gayle -Alexis M. Herman -Maria Elena Lagomasino -Independent members: There are 3 independent boards of directors who are - James D. Robinson III - Maria Elena Lagomasino - Evan G. Greenberg -Employment representatives: There is any information about employment representatives but there are 5 public issues and diversity review boards of directors who are responsible for employment representatives. Those are - Howard G. Buffett - Alexis M. Herman
  10. 10. - Donald F. McHenry - Sam Nunn - Jacob Wallenberg Stakeholders Company’s most important responsibility is to fulfill the expectations of the stakeholders and to continuously improve social, environmental and economical performance while ensuring the sustainability and operational success of the company Customer stakeholders: Customer preference is a core value of Coca Cola company, so it continually seeks to deepen its customer relationships. Company partners with it’s customers on multiple fronts-from knowledge management and capabilities development to go-to-market and point-of-sale execution-to ensure each and every shopper’s trip counts. A set of comprehensive initiatives was adopted by Coca- Cola in order to build collaborative customer relationships and ensure excellent execution. These are core principles of excellent execution:  Availability means placing range of products within easy reach of consumers in the "right" package, in the "right" location, at the "right" time  Affordability means offering a wide variety of desirable, premium quality products, in packages appropriate for the occasion, at the "right" price  Acceptability means supplying an extensive and growing range of products that meet the highest quality standards in each country, enhancing their acceptability to consumers. Experience in quality control, customer service and efficient distribution, combined with a detailed understanding of consumer needs and access to the most effective communications channels, allows company to reach out to customers and consumers in each of it’s markets and meet their demands.  Activation means motivating consumers to choose the products by improving product availability and attractiveness at the point of purchase and by building brand strength in local markets.
  11. 11.  Attitude is about the way sales representatives and people behave every day in their interactions with customers ensuring that company meets their needs with an objective to become the preferred supplier of choice. There also have been introduced the joint value creation concept with key customers, which is built on the premise that beverages offer significant growth not only for Coca-Cola, but also for it’s retail customers. Coca Cola also have established customer care centers that provide a single and efficient point of contact between the customers and company itself leading to improved satisfaction scores. Company’s customers divide into two groups, direct customers and end consumers. The direct customers of Coca-Cola are outlets such as service stations, newsagents, leisure centers, cinemas, clubs, supermarkets and many other retailers selling soft drinks. In this area the emphasis in marketing has therefore been on providing superior delivery, promotional services and sales support. All of these elements clearly differentiate Coca-Cola as being the beverage supplier most likely to generate profits for retailers. On the other hand end consumers of Coke are the millions of people who consume soft drinks world-wide. Over many years Coca-Cola has expanded its markets horizontally in country after country, until there is virtually no place on earth where people do not drink Coca-Cola. Today this horizontal growth is almost total, with fewer than 20 countries not taking the product. Coca-Cola is therefore now trying to develop the brands vertically. This simply means creating a deeper consumer desire for that brand than existed the day before. It involves giving people additional reasons to buy Coca-Cola brands instead of reasons to buy competing ones. That is the essence of differentiation. It is not an easy task, because already 5.6 billion people have a well established understanding of what Coca-Cola means to them. However, there are considerable strengths that support Coca-Cola in this task namely:  The trademark which is so widely known and part of the public imagination.  Coca-Cola is continually building on its existing expertise in marketing and consumer understanding, and is supported by access to a wealth of financial and creative resources.
  12. 12.  Coca-Cola has an action orientation'. Instead of waiting for change to happen it is at the leading edge, driving action forward. Quality And Safety Rules Coke ensure sustainable procurement, production, distribution and marketing operations and make efforts to meet the expectations of all stakeholders in the field of business. Company buys from suppliers with the best performances in social, environmental, and economic areas, produce the highest quality products in harmony with food safety principles, and with correct planning and effective distribution strategies, we take care to responsibly introduce our products to the market.The Coca-Cola system has the highest standards and processes to ensure consistent quality from concentrate production to bottling and product delivery. To ensure consistency and reliability , Coca- Cola Bottling Company of Santa Fe is governed by the Coca-Cola Operating Requirements (KORE) • KORE guarantees the highest standards in product safety and quality, occupational safety and health and environmental standards across the entire manufacturing and distribution process. • KORE outlines clear requirements for the policies, specifications and programs that guide our operations. • KORE integrates business and quality objectives and aligns them with consistent metrics to monitor performance. • KORE integrates preventive action as a management tool with more rigorous demands when introducing new products and services. • KORE incorporates Hazard Analysis and Critical Control Points (HACCP) into our system standards. • KORE manages risk in our bottling operations and across our supply chain. • KORE defines problem-solving methods and tools to drive consistent quality with improvements ABOUT THE PRODUCT Coca-Cola is the most popular and biggest-selling soft drink in history, as well as
  13. 13. the best-known brand in the world. It is a carbonated soft drink made with extracts from coca leaves, kola nuts, sugar, caramel, along with acid and aromatic substances. The Coca-Cola concentrate itself, which remains one of the world's most closely guarded trade secrets, is added to a filtered syrup of sugar and purified water and subsequently carbonated. It originated in 1886 as a soda fountain beverage made from cocaine from the coca leaf, and caffeine extracts of the cola nut. It was created by an Atlanta pharmacist, John S. Pemberton. Long Island Iced Tea
 ACID
 Bacardi Gold & Cola
 Black Tooth
 Hennessy and Coke Dale's Long Island Iced Tea
 Vanilla Coke
 Skittles
 Calimocho Torreon Special
 Electric Long Island Iced Tea
 Jack and Coke Colorado Bulldog
 Captain and Coke Long Island Cocktail
 Long Island Tea Texas Tea
Vodka Coke
Cuba Libre
 Crown & Coke
Coke Drops Old-Fashioned Rum and Coke TOP DRINKS
  14. 14. Calories (kcal) Energy(kj) Fats Carbohydrates Protein 11
 48 0g 3.3 g 0g Fiber Sugars Cholesterol
 Sodium
 Alcohol 0 g
 3.3 g
 0 mg
 4.2 mg 0 g Marketing and Advertising Coca cola develops strong relationships with it’s customers by focusing on excellent execution of customer marketing promotions and merchandising at the point of sale. It supports such market execution by conducting regular customer satisfaction surveys and by developing innovative materials for retail sales activation, including new racks, point-of-sale visuals and sales aids for customers. Coke conduct market analyses to better understand unique shoppers and purchase occasions in different trade channels. This information is used to develop all of non-alcoholic ready-to drink beverage categories at every point of sale. The Coca-Cola Company works to develop annual sales, promotions and marketing plans for each of established, developing and emerging countries. The Coca-Cola Company, implements responsible advertising and promotion practices, in compliance with marketing laws and regulations, throughout its operational geography. To this end, it takes advantage of various communication channels, not just one-way. That is to say, communication is not just based on product presentations, but also on channels by which stakeholders directly participate, with suggestions, requests, and complaints, in advertising and presentation management. Coca cola believes that parents should make decisions about the eating habits of their children. Therefore they do not engage in advertising or marketing activities targeting children under 12 years old. In parallel with to commitment to the responsible marketing practices set by TCCC’s Global School Beverage Guidelines, CC do not actively conduct sales operations for sparkling beverages in elementary schools beginning from the 2010 - 2011 academic year, and company informs it’s NUTRITION
  15. 15. business partners of this policy. In this regard, CC also complies with the legal standards on the sales of food and beverages in school cafeterias issued by the Ministry of Health after CC’s voluntary practice. No lawsuits have been filed against CC for failure to comply with laws related to marketing communications, advertising, promotions or sponsorships during the reporting period. No lawsuits have been filed against CC for failure to comply with laws related to unfair competition, monopolist practices, and similar implementations during the reporting period Management of Consumer Complaints Effective management of consumer feedback is not just a mechanism which increases the satisfaction level of shareholders; it is also an important consistent of continuous improvement. Consumers who contact CC via post, e-mail or call centers receive detailed explanations with an assessment of their feedback in the quickest manner possible and, when necessary, CC employees visit the complainants and provide information on the situation. Company listens to suggestions, requests, complaints and questions of all stakeholders, primarily consumers in through the Coca-Cola Information Center, open 24/7, and act as quickly as possible to resolve stakeholder problems. The Information Center can be reached by local numbers of the company that serve as call centers. With growth in the problem-solving performance of this implementation each year, company has answered 87,143 calls during the reporting period within Turkey. Of these calls, 60,147 complaints/ requests were recorded. With the improvements since June 2011, the field team’s troubleshooting time fell to 80%. No major penalties were charged against CC for failure to comply with laws or regulations regarding the supply or use of products and services during the reporting period. Customer satisfaction survey CC conducts a yearly “Customer Satisfaction Survey” regarding services to assess the level of satisfaction measured by an independent company of business partners, to whom CC serves in-house and off-premise consumption channels. According to the results of the survey that has been done by Coca-Cola Icecek an official distributor in Turkey, the survey has conducted with 1,798 customers, CCI has once again succeeded in maintaining its clear leadership position among rival
  16. 16. companies in terms of customer satisfaction, when we compare ourselves with the entire fast-moving consumer goods sector. Company aims to serve the products to it’s consumers in the most healthy and hygienic conditions, with preferred packaging alternatives and sales points at appropriate prices Government stakeholder: Public policy affects the Coca Cola Company’s business, its people and the communities where it does business. Through engagement, the company seeks to responsibly use its resources to advance public policy that is consistent with the sustainability of its business and Company values. Pursuant to the Company’s political contributions policy, contributions are based on several criteria, including legal compliance, Board and management oversight, public policy Sustainability support and public transparency. The Company’s political contributions policy and a report of U.S. political contributions from our Company and from associate- funded programs, which include The Coca-Cola Company Nonpartisan Committee for Good Government and various other state political action committees. Corporate political contributions are legally permitted political donations using the Company's general treasury funds, in certain jurisdictions and under certain circumstances. While corporations are not permitted to contribute to U.S. federal political campaigns or to the national political parties, they can contribute to state and local candidates in many jurisdictions as well as to the "party building activities" of political parties. The Company's federal political action committee, Coca-Cola PAC, is a voluntary employee program funded by employee contributions, and donations are made to U.S. federal candidates, committees and parties. The Georgia Political Action Committee, GA PAC, is a legal entity set up to make contributions to state and local candidates, committees and political parties in Georgia. Corporate political contributions are permitted in Georgia. The Company's state political action committees, GEN ST PAC, MA PAC, MD PAC, NM PAC, NY PAC and RI PAC, are voluntary employee programs funded by employee contributions, and donations are made to state and local candidates, committees and political parties
  17. 17. Coca Cola and PAC PAC (political action committee) is a committee formed by business, labor, or other special-interest groups to raise money and make contributions to the campaigns of political candidates whom they support. PACs are most often organized around a particular trade, union, or business; they are also organized to promulgate particular social, economic, or political beliefs or agendas. As one of the richest company in its based country the USA coca cola is one of the most important companies on the most influent company on the political plan due to its financial and social contribution. We have to notice hear that the company call it as Public Policy Engagement, The company try to apply this rule by subscribing to several aspect of the corporate code such as : Legal Compliance:, Board and Management Oversight, Public Policy Agenda Alignment, Legal Compliance: The political activity and contributions of the Company and its affiliated Political Action Committees (PACs) are executed in compliance with all applicable U.S. laws, regulations and corresponding legal reporting requirements. To ensure compliance, all of our political contributions are reviewed and approved by Company senior government relations leaders and Company senior legal counsel. Board and Management Oversight: Company’s public policy advocacy efforts, including all political contributions and payments to trade associations and other tax-exempt organizations, are reviewed by the Public Issues and Diversity Review Committee (the "PIDRC") of the Company's Board of Directors to ensure alignment with Company policy and our overall values. In addition, the PIDRC periodically reviews this Government Advocacy and Political Contributions policy to ensure its efficacy. This review is required by the Committee's charter. Public Policy Agenda Alignment: Consistent with applicable U.S. laws and regulations, our political contributions may be given to political candidates and organizations whose views and work are consistent with the interests and values of our Company, our overall business system, the non-alcoholic beverage industry and the communities in which we operate without regard for the private political preferences of Company officers and executives. The Company will regularly update the PIDRC throughout the year on its public policy advocacy efforts, which generally align with the relevant Risk Factors that can be found in the Company's publicly-available 10-K filing with the U.S. Securities and Exchange Commission.
  18. 18. In addition, we will provide a direct link on the Company's federal lobbying disclosure reports under the U.S. Lobbying Disclosure Act. Following the different publications we can assess that the coca cola PAC policy is more than fair and respect all the regulations criteria’s required by the legal system. It is also proved by some of the policies included by coca cola on PAC publications. Those policies are: Corporate taxation, Product-specific policies, such as taxes, restrictions or regulations, Environmental policy Corporate taxation: the company subject itself to income tax in the U.S. and in numerous other jurisdictions in which we generate operating revenues. The Company advocates for tax reform that enables American-headquartered businesses to operate globally on a competitive basis with non-U.S.based companies. Product-specific policies, such as taxes, restrictions or regulations: The Coca- Cola system is a major contributor to the economy through local jobs, investment, taxes and community investment. The Company advocates for choice and opposes discriminatory tax policies that single out certain beverages. Environmental policy: the company has a role a role to play in working to use the best possible mix of energy sources, while improving the energy efficiency of our manufacturing and distribution processes. The Company advocates for fair policies that impact water quality, packaging, and ingredients/agriculture. Boards Membership in organization Herbert A. Allen, President and Chief Executive Officer of Allen & Company Incorporated Ronald W. Allen, Former Chairman of the Board, President, and Chief Executive Officer of Delta Air Lines, Inc. Ana Botín, Chief Executive Officer and Director of Santander UK plc Howard G. Buffett, President of Buffett Farms and Howard G. Buffett Foundation Richard M. Daley, Managing Principal of Tur Partners LLC and Of Counsel of Katten Muchin Rosenman LLP Barry Diller, Chairman of the Board and Senior Executive of IAC/InterActiveCorp Expedia, Inc. Helene D. Gayle, President and Chief Executive Officer of CARE USA Evan G. Greenberg, Chairman, President and Chief Executive Officer of ACE Limited
  19. 19. Alexis M. Herman, Chair and Chief Executive Officer of New Ventures, LLC Robert A. Kotick, President Chief Executive Officer and Director of Activision Blizzard Maria Elena Lagomasino, Chief Executive Officer and Managing Partner of WE Family offices Donald F. McHenry, Distinguished Professor in the Practice of Diplomacy and International Affairs School of Foreign Service, Georgetown University Sam Nunn, Co-Chairman and Chief Executive Officer of Nuclear Threat Initiative (NTI) James D. Robinson III, Co-Founder and General Partner of RRE Ventures Peter V. Ueberroth, Nonexecutive Co-Chairman of Pebble Beach Company Jacob Wallenberg, Chairman of the Board of Investor AB Lobbying In the U.S., Coca-Cola is a major lobbying force working to gain favorable legislation for the beverage industry. In both 2005 and 2006, it spent $1 million each year on lobbying. In 2007, that increased to $1.7 million, and by 2008, to $2.5 million. In 2009, total lobbying expenses jumped to $4.5 million, or nearly double the previous year. Much of the increased lobbying expenses are due to the industry’s fight against increased taxes on soft drinks and other sweetened beverages. For 2008, Coca-Cola had 38 lobbyists at 7 different firms lobbying on its behalf. The company contributed to 69 contribution types with spending more than $1,000 for each type in 2013
  20. 20. References: Notice of 2013 Annual Meeting of Shareowners and Proxy Statement 2012/2013 GRI Report Coca-Cola CSR report Coca-colacompany.com finance.yahoo.com

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