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.
Market Analysis in the 5 Largest Economic Countries in Southeast Asia.pdf
Coca Cola Corporate Governance Report
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
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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
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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
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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.
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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.
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DEDICATION
“Dedicated to my Family for their
Efforts, support, encouragement and
Confidence that enabled me to complete
This task”
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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.
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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.
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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 …
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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.
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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.
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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”.
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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
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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
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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
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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
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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.
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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.
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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.
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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
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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. CORPORATE GOVERNANCE PROJECT
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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?
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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
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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.
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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
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. 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
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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. CORPORATE GOVERNANCE PROJECT
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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
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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
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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
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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
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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
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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.
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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
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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
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$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.
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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.