The Coca-Cola Company: Report on Political Spending Related to Company Values and Policies
WHEREAS: Coca-Cola’s Public Issues and Diversity Review Committee reviews at least annually the Company's public policy advocacy efforts, including all political contributions, for alignment with its policy and overall values. Coca-Cola has stated, “We consider it our duty, and our responsibility, to make our views clear to those who have the potential to impact the laws, regulations and policies that can influence our global business.”
However, Coca-Cola’s politically focused expenditures appear to be misaligned with its public statements of its views and operational practices.
For example, Coca-Cola committed to recover for recycling all the bottles it sells and to use 50% recycled content by 2030. Yet, the company has spent millions of dollars to oppose passage of container deposit laws, which are the most effective way to significantly increase recycling rates.
In addition, Coca-Cola has asserted a strong commitment to gender equity with statements such as “We embrace our brand promise to promote inclusion, celebrate diversity and champion equality.” However, in the last two election cycles, Coca Cola made political donations totaling hundreds of thousands of dollar to political office-holders, candidates, and political organizations that work to erode women’s constitutional rights to access abortion. In addition, according to Funding the Bans, in the last two years, Coca-Cola contributed over $50,000 to politicians and committees responsible for passing restrictive state abortion laws in 2019.
If the company’s actions appear to conflict with its expressions of social and environmental intention, stakeholders may become concerned that its statements are corporate puffery, language described by the United States Federal Trade Commission as marketing exaggerations intended to “puff up” products and not able to be relied upon by consumers and investors.
Proponents believe Coca-Cola should establish policies and reporting systems that minimize risk to the firm's reputation and brand by addressing possible missteps in corporate electioneering and political spending that are in contrast to its stated diversity and environmental policies.
BE IT RESOLVED: Coca-Cola publish, at least annually, a report, at reasonable expense, analyzing the congruency of political and electioneering expenditures during the preceding year against publicly stated company values and policies.
SUPPORTING STATEMENT: Proponents recommend that such report also contain management's analysis of risks to our company's brand, reputation, or shareholder value of expenditures in conflict with company values. “Expenditures for electioneering communications" means spending directly, or through a third party, at any time during the year, on printed, internet or broadcast communications, which are reasonably susceptible to interpretation as in support of or opposition to a specific candidate.
Resolution Details
Company: The Coca-Cola Company
Lead Filer:
As You Sow
Year: 2020
Filing Date:
November 2019
Initiative(s):
Political Spending
Status: Agreement Reached; Resolution Withdrawm