Difference between revisions of "Coca Cola"

From Powerbase
Jump to: navigation, search
(alliances & PR)
(Coca Cola in Columbia)
Line 138: Line 138:
  
 
India Resource<ref> India Resource [http://www.indiaresource.org/campaigns/coke/ Campaign to Hold Coca-Cola Accountable] Accessed 24th January 2008</ref> report that [[Perfect Relations]] were hired by Coca Cola to develop a new image for the company in India.  
 
India Resource<ref> India Resource [http://www.indiaresource.org/campaigns/coke/ Campaign to Hold Coca-Cola Accountable] Accessed 24th January 2008</ref> report that [[Perfect Relations]] were hired by Coca Cola to develop a new image for the company in India.  
 +
 +
The Polaris Institute<ref> Richard Girard [http://www.polarisinstitute.org/files/Coke%20profile%20August%2018.pdf Corporate Profile - Coca Cola Company: Inside the Real Thing] The Polaris Institute. August 2005. Accessed 26th January 2008</ref> confirm GCI, Lexis PR and Perfect Relations as PR firms acting on behalf of Coca Cola and add the involvement of [[Cohn, Overstreet and Parrish]].
 +
 +
==Coca Cola in Columbia==
 +
In 2001, Lawyers for the United Steel workers union filed a lawsuit in America on behalf of the Colombian union Sinaltrainal.
 +
: 'The suit alleges that Coca-Cola and [[Panamerican Beverages]], its principal bottler in Latin America, waged what union leaders describe as a campaign of terror, using paramilitaries to kill, torture and kidnap union leaders in Colombia'<ref> BBC News [http://news.bbc.co.uk/1/hi/business/1448962.stm Coke sued over death squad claims] 20th July 2001. Accessed 26th January 2008</ref>.
 +
 +
Coca Cola deny responsibility as they claim to not own or operate the plants involved. Yet Coca Cola owns 25% of bottling plant Panamerican Beverages which is Coca Cola's main bottling plant in Latin America<ref>Armbruster, S. (2003) [http://news.bbc.co.uk/1/hi/business/2909141.stm Coke bottler faces death suit] BBC News. 2nd April 2003. Accessed 26th January 2008</ref>. Panamerican also deny the charges.
 +
 +
In 2003 it was reported that Panamerican Beverages would stand trial for allegedly hiring right-wing paramilitaries to kill and intimidate union leaders in Colombia<ref>ibid</ref>. But District Judge [[Jose E Martinez]] excluded Coca-Cola and its Colombian unit because its bottling agreement did not give it "explicit control" over labour issues in Colombia. The BBC Reports that this is 'the first time a US judge has ordered a company to stand trial for alleged human-rights violations committed overseas under the Alien Tort Claims Act'. However they add that, 'Corporations usually succeed in getting such cases dismissed before they reach trial'. Lawyers acting on behalf of the trade unionists are reported to be appealing against Coca Cola's exclusion.
 +
 +
Gill reports that 180 Coca-Cola employees have suffered major human rights violations over a period of fifteen years with nine of them having been murdered. Family members have also experienced threats, abductions, torture and murder<ref> Gill, L. (2004) [http://www.aaanet.org/committees/cfhr/gill.pdf LABOR AND HUMAN RIGHTS:‘The Real Thing’ in Colombia] Report to the Human Rights Committee of the American Anthropological Association by the Department of Anthropology, American University Washington. 28th November 2004. Accessed 26th January 2008</ref>.
 +
 +
Gill continues by explaining how 'Multinational firms profit from the reduced effectiveness of trade unions that arises from the intimidation of workers by paramilitaries. Weak unions pose less resistance to job cuts, lowered wages, reduced benefits, and “flexible” contracts that are promoted by multinational corporations'
 +
 +
:'Murdered unionists are not the product of indiscriminate, chaotic violence, nor are they the “collateral damage” of civilians caught between warring groups. They are the victims of a calculated and selective strategy carried out by sectors of the state, allied paramilitaries, and some employers to weaken and eliminate trade unions'<ref>ibid</ref>.
 +
 +
Coca-Cola is reported<ref>ibid</ref> to be aggressive in the restructuring of its operations and centralising of productions in Columbia. 6700 workers have lost their jobs between 1992 and 2002 and 80% of the Coca-Cola work force is now composed of non-union, temporary workers. Wages for these individuals are only a quarter of those earned by their unionized counterparts. Coca-Cola has consistently pressured unionized workers to resign. In 2003 it closed 11 of its 16 bottling plants and 'forced workers to renounce their union contracts. Despite collective bargaining agreements that oblige it to find new jobs for displaced workers, the company has failed to fulfill its obligations, prompting a 12-day hunger strike by Sinaltrainal in March 2004... The Vice-Minister of Social Protection, [[Luz Estela Arango]], who is charged with ruling on the legality of the plant closures and the firings, is a former lawyer for the Coca-Cola Company'.
 +
 +
Coca Cola may deny the charges, however as Gill argues<ref>ibid</ref> The Coca-Cola Company have failed to protect its workers from paramilitary intimidation, have benefited from the situation and 'in some cases, eyewitness accounts and abundant circumstantial evidence suggest that it is complicit with paramilitary terror'.     
  
 
==Coca Cola CSR==
 
==Coca Cola CSR==

Revision as of 13:09, 26 January 2008

Background

The Coca Cola Company was founded in 1886 by pharmacist John Styth Pemberton in Atlanta, Georgia. The Coca-Cola Company advertisies itself as 'the world's leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 brands. The Coca-Cola Company continues to be based in Atlanta and employs 49,000 people worldwide, with operations in over 200 countries'[1].

People

Board of Directors

In January 2008, the Coca Cola Company report their Board of Directors as comprising[2]...

  • E Neville Isdell - Isdell is also Chairman and Chief Executive Officer for Coca Cola. He joined Coca Cola in 1966 undertaking a variety of leadership positions throughout the world before taking up his present roles in 2004. In his biography[3], Isdell is also reported to be...
'chairman of the U.S.-Russia Business Council and chairman of the board of trustees of the International Business Leaders Forum (IBLF). He is a member of the board of trustees of the United States Council for International Business and the Center for Strategic and International Studies. He is also a member of the Corporate Advisory Board of the Global Business Coalition on HIV/AIDS. Isdell serves on the board of directors of SunTrust Banks Inc. and the Commerce Club and as a trustee of Emory University. He is a lifetime trustee of Pace Academy'.
  • Ronald W Allen - Director since 1991. Allen's biography[5] reports that he also serves as Consultant and Advisory Director for Delta Air Lines Inc., were he was formerly Chairman of the Board, President and CEO between 1987 to 1997). Allen is also a Director of Aaron Rents Inc.
  • Alexis M Herman - Director since 2007, former Chairwoman of Coca-Cola's Human Resources Task Force. Herman's biography[8] reports that she is also Chair and CEO of New Ventures LLC, Chair of the Toyota Diversity Advisory Board and the Sodexho Business Advisory Board, and on the Board of Directors for Cummins Inc., Entergy Inc. and MGM Mirage. Herman's biography also describes how she previously 'served as America's 23rd Secretary of Labor and the first African American ever to lead the United States Department of Labor'.

Senior Leadership Team

In January 2008, Coca Cola's Senior Leadership Team are listed as[16]...

  • Muhtar Kent - President & CEO (he will succeed Neville Isdell as CEO on July 1st 2008) with responsibility for oversing all operations of the business, including Bottling Investments. Kent's biography[17] reports that he joined the Coca-Cola Company in Atlanta in 1978 and has held a variety of marketing and operations roles throughout his time with the company. From 1999 until his return to The Coca-Cola Company in May 2005, Kent served as President and CEO of the Efes Beverage Group (Efes is a publicly traded beverage enterprise whose Coca-Cola and beer operations extend from the Adriatic to the Pacific Ocean. They are also the majority shareholder of Turkish bottler Coca-Cola Icecek.
  • Ahmet C Bozer - President and CEO of the Eurasia Group. Bozer's biography[18] reports that he has been with Coca Cola since 1990 and served as Managing Director of Coca-Cola Bottlers of Turkey (CCBT) before taking on his current role. Bozer's previous involvements include five years with Coopers & Lybrand in various audit, consultancy and management roles.
  • Irial Finan - Executive Vice President of The Coca-Cola Company and President of Bottling Investments and Supply Chain. Finan's biography[23] reports that he joined Coca Cola in 1981 and is is also a Non-Executive Director (and Chairman of the audit committee) for eircom plc.
  • Glenn G Jordan S - President and CEO, Pacific Group. Jordan's biography[24] describes how he joined Coca Cola in 1978 and has undertaken a variety of roles including Executive Vice President for Coca-Cola Latin America and Director of Operations for the Latin America Group.
  • Geoffrey J Kelly - General Counsel and Senior Vice President. Kelly's biography[25] reports that he joined Coca Cola in 1970 and has 'held a series of positions with increasing responsibility in the Legal departments' of the Coca Cola Company and its subsidiaries.
  • Robert P Leechman - Chief Customer and Commercial Officer, Vice President. Leechman's biography[26] reports that he joined Coca Cola in 1988 and has worked in a variety of positions including the Middle East Division, General Manager for the 2000 Olympics in Australia and President of the Central Europe and Russia Division before taking up his current position in 2005. Prior to joinging Coca Cola, Leechman spent nine years with Mars Inc.
  • Thomas G Mattia - Director of Worldwide Public Affairs and Communications and Senior Vice President of The Coca-Cola Company. Mattia's biography[27] describes him as a '35-year veteran of public affairs and communications'. In his current role he is...
'responsible for leading the Company's global public affairs and communications, which include corporate communications, media relations, public policy, government relations, corporate reputation, shareowner affairs, executive and employee communications, digital communications and archives. His role also includes leadership of the Company's Public Policy and Corporate Reputation Council and the Bottler Public Affairs Advisory Board'.

Mattia also serves on the board of advisors of the Metro Atlanta Chamber of Commerce and the board of the High Museum of Art. He is a trustee of the Institute of Public Relations and serves on the committee of the PR Seminar. He is a member of the Arthur W Page Society, the International Association of Business Communicators (IABC) and the Public Relations Society of America (PRSA)

Mattia was previously Vice President for EDS, was Head of Public Affairs for the Ford Motor Company and held executive positions with GCI Jennings, Hill and Knowlton (where he supported the opening of China's first McDonald's) and IBM. Prior to this, 'Mattia managed Jimmy Carter's U.S. presidential campaign in Vermont and worked as a reporter for four U.S. newspapers, beginning his career at The Trenton Times in New Jersey'.

  • Cynthia P McCague - Director, Human Resources & Senior Vice President, The Coca-Cola Company. McCague's biography[28] reports that she joined Coca Cola in 1982 and took up her current roles in 2004. Her biography adds that 'prior to joining the Company, Cynthia spent seven years working in manufacturing and local government' but information of who she worked for or what form her roles took are not included.
  • Dominique Reiniche - President, European Union Group. Reiniche's biography[29] reports that she 'has spent 13 years with Coca-Cola in France and Europe, holding various marketing, sales and general management positions'. She sits on the Board of ECR Europe and the Board of CIAA (Confederation of the Food and Drink Industries of the EU). Reiniche's previous involvements include working as Director of Marketing and Strategy with Kraft Jacobs-Suchard and eight years service with Procter & Gamble. She also served as President of UNESDA (European Non-Alcoholic Beverage Industry) between 2005 to 2007, 'during which she led the industry to liaise more with the EU authorities, to communicate more broadly the choice of drinks it offers, and to adopt a self-regulatory code'.
  • José Octavio Reyes - President, Latin America Group. Reyes's biography[30] reports that he joined Coca Cola in 1980 and took on his current role in 2002.

Operating Group Leadership

In January 2008, Operating Group Leadership personnel are listed as[33]...

Africa Group - Alexander B Cummings Jr. East and Central Africa Business Unit: Nathan Kalumbu Nigeria Business Unit: Cem Kumral North and West Africa Business Unit: Curtis A Ferguson South Africa Business Unit: William Egbe (Bill)

Eurasia Group - Ahmet C Bozer Adriatic & Balkans Business Unit: Nikos Coumettis India Business Unit: Atul Singh Middle East Business Unit: Rafik El Toukhi Russia, Ukraine & Belarus Business Unit: Clyde C Tuggle Southern Eurasia Business Unit: Selcuk Erden Turkey Business Unit: Ahmet Burak

European Union Group - Dominique Reiniche Central & Southern Europe Business Unit: Michael Holm Johansen Germany Business Unit: Beatrice Guillaume-Grabisch Iberian Business Unit: Marcos de Quinto Northwest Europe & Nordics Business Unit: Michael A Clarke

Latin America Group - José Octavio Reyes Brazil Business Unit: Brian J Smith Latin Center Business Unit: Xiemar Zarazúa Mexico Business Unit: James R Quincey South Latin Business Unit: Francisco Crespo Benítez

North America Group - J Alexander M Douglas Jr. Canada Business Unit: Vincent R Timpano, Melody Justice

Pacific Group - Glenn G Jordan S and Paul K Etchells China Business Unit: Steve K W Chan and Douglas Jackson Japan Business Unit: Masahiko Uotani and Dan Sayre Philippines Business Unit: Alexander P M von Behr and Kandy Anand Southeast & West Asia Business Unit: Manuel Arroyo

Corporate Functional Leadership

In January 2008, Corporate Functional Leadership personnel are listed as[34]...

Subsidiaries & Alliances

According to Transnationale.org[36], Coca Cola created The Beverage Institute for Health and Wellness in 2004, 'a research institute created by the company with the goal of countering criticism about their role of soft drinks in the obesity epidemic'. They are also reported to be a member of the advisory group of Green Business Network and to have donated 1 million USA dollars to the American Academy of Pediatric Dentistry in 2003. In 2007, Coca Cola is reported to have donated $20 million to nature conservation association WWF in a partnership agreement.

Public Relations

In January 2008 Coca Cola is listed as a client for French PR firm I&E[37]

According to Transnationale.org[38], Coca Cola have enlisted the help of the following PR agencies...

  • Momentum, part of the Interpublic Group of Companies, 'was awarded Coke’s promotions and retail account for the summer launch of its new low calorie cola in 2004'.
  • GCI Group - 2004
  • Lexis PR, the 'UK firm charged to recover from the disastrous launch of Dasani in England' in 2004.

India Resource[39] report that Perfect Relations were hired by Coca Cola to develop a new image for the company in India.

The Polaris Institute[40] confirm GCI, Lexis PR and Perfect Relations as PR firms acting on behalf of Coca Cola and add the involvement of Cohn, Overstreet and Parrish.

Coca Cola in Columbia

In 2001, Lawyers for the United Steel workers union filed a lawsuit in America on behalf of the Colombian union Sinaltrainal.

'The suit alleges that Coca-Cola and Panamerican Beverages, its principal bottler in Latin America, waged what union leaders describe as a campaign of terror, using paramilitaries to kill, torture and kidnap union leaders in Colombia'[41].

Coca Cola deny responsibility as they claim to not own or operate the plants involved. Yet Coca Cola owns 25% of bottling plant Panamerican Beverages which is Coca Cola's main bottling plant in Latin America[42]. Panamerican also deny the charges.

In 2003 it was reported that Panamerican Beverages would stand trial for allegedly hiring right-wing paramilitaries to kill and intimidate union leaders in Colombia[43]. But District Judge Jose E Martinez excluded Coca-Cola and its Colombian unit because its bottling agreement did not give it "explicit control" over labour issues in Colombia. The BBC Reports that this is 'the first time a US judge has ordered a company to stand trial for alleged human-rights violations committed overseas under the Alien Tort Claims Act'. However they add that, 'Corporations usually succeed in getting such cases dismissed before they reach trial'. Lawyers acting on behalf of the trade unionists are reported to be appealing against Coca Cola's exclusion.

Gill reports that 180 Coca-Cola employees have suffered major human rights violations over a period of fifteen years with nine of them having been murdered. Family members have also experienced threats, abductions, torture and murder[44].

Gill continues by explaining how 'Multinational firms profit from the reduced effectiveness of trade unions that arises from the intimidation of workers by paramilitaries. Weak unions pose less resistance to job cuts, lowered wages, reduced benefits, and “flexible” contracts that are promoted by multinational corporations'

'Murdered unionists are not the product of indiscriminate, chaotic violence, nor are they the “collateral damage” of civilians caught between warring groups. They are the victims of a calculated and selective strategy carried out by sectors of the state, allied paramilitaries, and some employers to weaken and eliminate trade unions'[45].

Coca-Cola is reported[46] to be aggressive in the restructuring of its operations and centralising of productions in Columbia. 6700 workers have lost their jobs between 1992 and 2002 and 80% of the Coca-Cola work force is now composed of non-union, temporary workers. Wages for these individuals are only a quarter of those earned by their unionized counterparts. Coca-Cola has consistently pressured unionized workers to resign. In 2003 it closed 11 of its 16 bottling plants and 'forced workers to renounce their union contracts. Despite collective bargaining agreements that oblige it to find new jobs for displaced workers, the company has failed to fulfill its obligations, prompting a 12-day hunger strike by Sinaltrainal in March 2004... The Vice-Minister of Social Protection, Luz Estela Arango, who is charged with ruling on the legality of the plant closures and the firings, is a former lawyer for the Coca-Cola Company'.

Coca Cola may deny the charges, however as Gill argues[47] The Coca-Cola Company have failed to protect its workers from paramilitary intimidation, have benefited from the situation and 'in some cases, eyewitness accounts and abundant circumstantial evidence suggest that it is complicit with paramilitary terror'.

Coca Cola CSR

Coca-Cola is a worldwide organisation which has extended its activities to help fund and become a part of different organisations around the world. One such organisation is Camp Coca-Cola, which is a year round programme of leadership training and community service. It also offers a Summer Camp programme which includes a number of exciting yet testing activities. Camp Coca-Cola aims to challenge its members to see the world more openly as a place where they can make a difference. It is run by professionals who are dedicated to providing a unique and worthwhile experience to those who attend. Attendance is decided through nominations by local schools and community organisations on the basis that those who are chosen are dedicated to learning and are open to new life experiences. Coca-Cola fund this project which they feel is beneficial to the communities it serves and Camps have been specially set up all over America [48] Organisations such as Camp Coca-Cola have been set up in an attempt by Coca-Cola to improve its overall image and to increase its ability to boost its own long term profits.

A further extension of Coca-Cola's work is 'Coca-Cola Africa'. This organisation is said to be committed to the future of the African continent and to the well being of its people and communities, and furthermore to its economic development. This statement stands in stark contrast to the activities which Coca-Cola have already been accused of in India. Such atrocities which have been previously mentioned in this report contradict the philosophy of 'Coca-Cola Africa'. This particular organisation which Coca-Cola initiated was set up to educate and distribute information about the dangers of HIV and AIDS. It places particular attention on the treatment of individuals who suffer from such diseases, and furthermore harshly criticises the discrimination of these unfortunate people.[49]

One additional organisation of Coca-Cola is the Coca-Cola Foundation which is said to be the 'philanthropic arm' of the Coca-Cola Company. It focuses on education and the advancement of cultural diversity. Its main activities include the offering of scholarships, the building of schools and libraries and the donation of books. It aims to help and support people through higher education who lack both financial and personal support [50]. It appears that Coca-Cola put a great deal of effort into initiating organisations and programmes to help extend the education of citizens around the world, more specifically in America and in Africa. Despite the ever growing number of these programmes which are available it is difficult for Coca-Cola to mask the shocking activities they carry out each day in the small communities in India where they operate their bottling plants. Coca-Cola may indeed help fund educational programmes in America, but this is of little consolation to the many villages in India, who are left suffering at the hands of this multinational.

Affiliations

Notes

  1. Coca Cola Company Company Structure Accessed 18th January 2008
  2. Coca Cola Company Board of Directors Accessed 18th January 2008
  3. Coca Cola Company E Neville Isdell Accessed 18th January 2008
  4. Coca Cola Company Herbert A Allen Accessed 18th January 2008
  5. Coca Cola Company Ronald W Allen Accessed 18th January 2008
  6. Coca Cola Company Cathleen P Black Accessed 18th January 2008
  7. Coca Cola Company Barry Diller Accessed 18th January 2008
  8. Coca Cola Company Alexis M Herman Accessed 21st January 2008
  9. Coca Cola Company Donald R Keough Accessed 21st January 2008
  10. Coca Cola Company Donald F McHenry Accessed 21st January 2008
  11. Coca Cola Company Sam Nunn Accessed 21st January 2008
  12. Coca Cola Company James D Robinson Accessed 21st January 2008
  13. Coca Cola Company Peter V Ueberroth Accessed 21st January 2008
  14. Jacob Wallenberg
  15. Coca Cola Company James B Williams Accessed 21st January 2008
  16. Coca Cola Company Senior Management Accessed 21st January 2008
  17. Coca Cola Company Muhtar Kent Accessed 21st January 2008
  18. Coca Cola Company Ahmet C Bozer Accessed 22nd January 2008
  19. Coca Cola Company Alexander S Cummings Accessed 22nd January 2008
  20. Centre for Global Development Home page Accessed 22nd January 2008
  21. Coca Cola Company J Alexander M Douglas Accessed 22nd Janaury 2008
  22. Coca Cola Company Gary P Fayard Accessed 22nd January 2008
  23. Coca Cola Company Irian Finan Accessed 22nd January 2008
  24. Coca Cola Company Glenn G Jordan S Accessed 22nd January 2008
  25. Coca Cola Company geoffrey J Kelly Accessed 22nd January 2008
  26. Coca Cola Company Robert P Leechman Accessed 22nd January 2008
  27. Coca Cola Company Thomas G Mattia Accessed 22nd January 2008
  28. Coca Cola Company Cynthia P McCague Accessed 22nd January 2008
  29. Coca Cola Company Dominique Reiniche Accessed 22nd January 2008
  30. Coca Cola Company José Octavio Reyes Accessed 22nd January 2008
  31. Coca Cola Company Danny L Strickland Accessed 22nd January 2008
  32. Coca Cola Company Joseph V Tripodi Accessed 22nd January 2008
  33. Coca Cola Company Operating Group Leadership Accessed 21st January 2008
  34. Coca Cola Company Corporate Leadership Accessed 21st January 2008
  35. Coca Cola Company Ahmet C Bozer Accessed 22nd January 2008
  36. Transnationale.org Companies Accessed 24th January 2008
  37. I&E Clients Accessed 17th January 2008
  38. Transnationale.org Companies Accessed 24th January 2008
  39. India Resource Campaign to Hold Coca-Cola Accountable Accessed 24th January 2008
  40. Richard Girard Corporate Profile - Coca Cola Company: Inside the Real Thing The Polaris Institute. August 2005. Accessed 26th January 2008
  41. BBC News Coke sued over death squad claims 20th July 2001. Accessed 26th January 2008
  42. Armbruster, S. (2003) Coke bottler faces death suit BBC News. 2nd April 2003. Accessed 26th January 2008
  43. ibid
  44. Gill, L. (2004) LABOR AND HUMAN RIGHTS:‘The Real Thing’ in Colombia Report to the Human Rights Committee of the American Anthropological Association by the Department of Anthropology, American University Washington. 28th November 2004. Accessed 26th January 2008
  45. ibid
  46. ibid
  47. ibid
  48. [1]
  49. [2].
  50. [3]
  51. [4]
  52. [5]
  53. [6]
  54. [7] [8]
  55. [9]
  56. [10]
  57. [11]
  58. [12]
  59. [http://www.uscib.org/index.asp?documentID=1846
  60. [13]
  61. [14]
  62. [15]
  63. [16]
  64. [17]
  65. <[18]