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Respecting Human Rights: Why It Matters and What You Can Do1
Respecting Human Rights:
A Business Imperative
Why It Matters and What You Can Do
Tools and Resources to Help You Make a Difference
Respecting Human Rights: Why It Matters and What You Can Do2
The Coca‑Cola Company is committed to making a
positive difference everywhere we do business, and this
includes respecting the fundamental principles of human
and workplace rights everywhere we operate.
The Company shares the view that all people should enjoy
fundamental human rights to life, liberty, dignity, respect,
equality under the law — and more. Our commitment to
making this a reality guides the way we conduct business.
It governs all aspects of our work, from the suppliers we
work with, to our bottling partners, to how we engage
each other in the workplace, to our interaction with
customers, consumers and the communities we serve.
Upholding this commitment begins with each of us. One
of the great things about working in our business is being
able to connect with people all around the world and
inspire them, in our own small way, to make a difference.
Please use this brochure, Respecting Human Rights, as
your guide to making a difference — for our business and
for the world.
I was blessed to learn
at an early age that
everyone has a role to
play in making the world
a better place.
Muhtar Kent
Chairman and CEO
Respecting Human Rights: Why It Matters and What You Can Do3
A central ethic of The Coca‑Cola Company and its bottling partners is to do
the right thing — every day. Imagine the power if, every year, the more than
700,000 associates in our system took one action that mitigated a human
rights impact of our business, or improved the lives of the people in the
communities in which they live.
We all have had “human rights moments,” both inside and outside the
system. When was your first human rights moment? When was your most
recent Coca‑Cola human rights moment?
When I was 10 years old, I had a human rights moment, but didn’t realize it
at the time. I was visiting my cousin’s vineyard to help him harvest grapes.
He needed seasonal, migrant labor to help during harvest season. After a
day’s work, the migrants and their families cooked by campfire and slept on
the ground or in their cars.
Even as a boy, this felt wrong to me. With money I earned over the next
three years from a paper route, mowing lawns, shoveling snow — and a loan
from my dad — my family built bunk houses and latrines that stand to this
day for the migrant labor families.
Of course, at age 10, I was unaware of “human rights.” And I had never
heard of the “Right to Housing” in Article 25 of the United Nations’
Universal Declaration of Human Rights. What I intuitively understood is that
we have a responsibility to speak up — and to act — when something is
not right.
This brochure, Respecting Human Rights, should make it easier for you to
take the right actions if you’re faced with a human rights moment of
your own.
Respecting the basic human rights of all people around the world is a
principle that’s easy to believe in, but often harder to make a reality. Yet, it is
essential to sustaining the communities we serve and to our
Company’s future.
Since I joined The Coca‑Cola Company in 2005, I’ve experienced many
human rights moments. In business, as in life, doing the right thing is often
not convenient or easy. But that doesn’t mean we shouldn’t do it.
In fact, it’s what we — and our great Company — stand for.
Imagine 700,000 Coca‑Cola
Human Rights Moments Every Year
Ed Potter
Director
Global Workplace Rights
Respecting Human Rights: Why It Matters and What You Can Do4
Respecting Human Rights: Why It Matters and What You Can Do5
This brochure is
intended to give you:
4 An understanding of
The Coca‑Cola Company’s
commitment to respecting
human rights
4 Access to human rights tools
and resources you can use in
your day-to-day work
4 An update on the Company’s
progress in the area of
human rights
What’s Inside
4	Why It Matters
	
4	What We Do
	 1.	Stand Up
	 2.	Know Better
	 3.	Make It Right
	 4.	Engage Stakeholders
4	Tools You Can Use
Respecting Human Rights: Why It Matters and What You Can Do6
WHY IT MATTERS
Respecting
human rights
is a business
imperative.
What was your first
human rights moment?
Respecting Human Rights: Why It Matters and What You Can Do7
Remember
the kid
who didn’t
fit in?
WHY IT MATTERS
Most of us
remember a
kid like that.
The one who didn’t have the power to
stand up for himself. The one who
was different.
Maybe she lacked social standing or
a stable home. Maybe he was from
another country or had a different ethnic
background. For whatever reason,
these kids were singled out and often
harassed — victims of discrimination or
lack of respect simply because
they were different.
This might have
been your first
“human rights moment.”
Human rights issues can be as big as the
world, and as close and personal as
your childhood.
Whether you stood up to those childhood
tormentors back then or stayed in the
background, recognizing a human rights
moment now, and acting on it, is essential to
respecting human rights.
It matters. And as citizens of the world and
ambassadors of our brands, it is not optional
for us.
Respecting Human Rights: Why It Matters and What You Can Do8
WHY IT MATTERS
Doing good
is good for
business.
Treat people with respect on
a personal level and respect
human rights at the
Company level. It’s the right
thing to do, every day.
Respecting Human Rights: Why It Matters and What You Can Do9
WHY IT MATTERS
To achieve our 2020 Vision, we must always strive to
do the right thing for people. It’s one of the ways we
can make a difference and create value, because it
helps sustain communities and the people who buy our
beverages. Doing the right thing helps us authentically
inspire moments of optimism and happiness. And because
authenticity is the lifeblood of our brands, we must
be able to answer “yes” when consumers, customers,
investors and stakeholders ask, “Are you what you say
you are?”
Striving to do the right thing doesn’t mean we’re perfect,
and it doesn’t mean always being right. Sometimes it
means admitting when you’re wrong and doing something
about it. This kind of authenticity fosters trust and
enhances our reputation.
4 Our progress on respect for human
rights led to our inclusion within
the Calvert Social Index. The index
is a benchmark for measuring the
performance of large, U.S.-based
companies that follow sustainable and
responsible policies — and serves as
a litmus test that socially-responsible
investors use when deciding which
companies to invest in.
4 Our human rights practices were cited
as a “unique best people practice” by
the Great Place to Work Institute in 2011,
when it included the Company on
the World’s Best Multinational
Workplaces list. (We made this list again
in 2013.)
Doing the Right Thing
Builds Brand Value
Respecting Human Rights: Why It Matters and What You Can Do10
WHY IT MATTERS
Why It
Matters
to Me
WhyItMatterstoMcDonald’s
Javier C. Goizueta
President, The McDonald’s Division Worldwide
VP, The Coca-Cola Company
Doing the right thing is as important to McDonald’s as it is to The Coca‑Cola Company.
Throughout our 58-year business relationship, we have established a deep understanding
of each other’s programs that has resulted in mutual trust, openness and sharing of
our best practices. While McDonald’s does this with other key suppliers, we feel it
has become a differentiator for us with McDonald’s. Today, we are just one of a few
companies that McDonald’s allows to self-manage its Supplier Workplace Accountability
Program, resulting in significant cost reduction for The Coca‑Cola Company. Being a
leader in this area is valued by our customer, and it adds value to our bottom line.
Doing the right thing makes financial sense. Consider
these costs that would have directly hit our bottom line in
2012, but didn’t:
4	 More than $40 million in costs avoided
because our strict social compliance self-
audits fulfilled the audit requirements of
our customers, and they decided it was
unnecessary to audit us
4	 More than $1 million in costs saved by
agreeing to “mutually recognize”
certain suppliers’ self-audits, avoiding
duplicate audits
Doing the Right Thing
Builds Economic Value:
Over $100 Million in 2012
4	 More than $6 million in net overtime
expenses saved when “excess work hour”
issues were resolved
4	 More than $100 million of our supply
chain protected without the need to
change suppliers
Respecting Human Rights: Why It Matters and What You Can Do11
StandingUpforThoseWhoCan’t
StandUpforThemselves
Elizabeth Finn Johnson
Senior Counsel, Employee Relations
The Coca‑Cola Company
I went to law school to become a civil rights
lawyer. Standing up for the rights of the
“underrepresented” is really important to
me. Doing the human rights due diligence
work is one way for me to connect my
passion for defending the rights of those
who can’t stand up for themselves with work
the Company is doing to make sure that we
aren’t trampling on those rights. It makes
it more than a job. It’s very important to
me that the Company is trying to make the
world a better place. I’m proud to work at
a company that understands and supports
human rights in all its facets.
I have a particular passion for helping women and children. One way I do this is
through our Legal division’s pro bono efforts; I work with GAIN [Georgia Asylum and
Immigration Network] to represent local victims of trafficking. In one case, my client had
given up a promising career in the Pacific for an arranged marriage and promises of
furthering her career and education in the U.S. Instead, she lived with her husband and
his parents, and basically became their slave. She was drugged, isolated, physically and
verbally abused…powerless.
She managed to escape, and I represented her to get her U visa*. She now has a
successful career at a national non-profit. She would tell you that her life has been
changed, and she has blossomed. To have the opportunity to help women who
are powerless get out of awful situations — like forced prostitution — and have the
Company support me in that … that’s what keeps me going.
*The U visa gives victims of certain crimes temporary legal status and work eligibility in the U.S. for
up to four years.
WHY IT MATTERS
Why It
Matters
to Me
Respecting Human Rights: Why It Matters and What You Can Do12
WHAT WE DO
Stand Up.
Know Better.
Make It Right.
Engage
Stakeholders.
This is what we do.
Respecting Human Rights: Why It Matters and What You Can Do13
WHAT WE DO
They define what the
corporate responsibility
to respect human
rights means.
Our entire human and workplace rights
strategy — and all related efforts — are
aligned with these principles. To make it easier
to understand what we do, we’ve simplified
the 27 pages of principles into the four areas
on the next page.
The United
Nation’s
Guiding
Principles
on Business
and Human
Rights
were accepted and
supported by global
business in 2011.
Respecting Human Rights: Why It Matters and What You Can Do14
4	The UN’s Universal Declaration
of Human Rights. Its 30
“Articles” set out the basic
rights and personal freedoms
every person is entitled to,
regardless of home country and
personal characteristics.
4	ILO Declaration on
Fundamental Principles and
Rights at Work. This is the
political commitment of
governments, and employers’
and workers’ organizations, to
uphold basic workplace rights.
4	The UN’s Guiding Principles on
Business and Human Rights.
This provides the guidelines
for businesses to demonstrate
respect for human rights.
WHAT WE DO
A policy commitment that
businesses should have in place
to meet their responsibility to
respect human rights;
A human rights due-diligence
process to identify, prevent,
mitigate and account for how
they address their impacts on
human rights;
Processes to enable the
remediation of any adverse
human rights impacts they cause
or to which they contribute;
Drawing on internal and/or
independent external human
rights expertise and engaging
in meaningful consultation with
potentially affected groups and
other relevant stakeholders.
The UN calls it… We call it…
UNIVERSAL
DECLARATION
OF HUMAN
RIGHTS
60
Stand Up
Know Better
Make It Right
Engage Stakeholders
1
2
3
4
What Are Human Rights?
Many organizations are focused on human rights, which are addressed in a myriad of
statements, guidelines and declarations. However, there are three main documents that you
should understand. They are:
All of the Company’s human rights efforts, policies, programs and tools fit into these four areas.
This is what we, as a Company, do.
Respecting Human Rights: Why It Matters and What You Can Do15 Respecting Human Rights: Why It Matters and What You Can Do15
STAND UP
STAND UP
Respecting Human Rights: Why It Matters and What You Can Do16
How
Does the
Company
‘Take a
Stand’?
Our human and
workplace rights
policies clearly define
what we stand for.
When you follow our policies and processes, when you
use the tools, when you act on a “human rights moment”
and use Company resources to do the right thing —
you’re helping the Company take a stand.
Our policies say what we believe in — what we’re
committed to. But it’s up to all of us to bring our
commitments to life in what we do.
STAND UP
Respecting Human Rights: Why It Matters and What You Can Do16
Respecting Human Rights: Why It Matters and What You Can Do17 Respecting Human Rights: Why It Matters and What You Can Do17
STAND UP
What We Say
We establish the Policy foundation for managing
our global business in a way that respects all
human rights. We also set out our human rights
expectations for independent bottlers in the
Coca‑Cola system.
Our policy documents set out our
expectations related to human
rights and issues such as child labor,
forced labor, freedom of association,
discrimination, health and safety,
hours of work, speech, community
engagement, mutual respect and more.
What We Say...
About Human Rights
What We Do
Every year, employees are expected to “stand
up” by certifying that they understand our
Human and Workplace Rights Policy and Code
of Business Conduct — and that they will report
any human rights issues they may see. We offer
a third-party service, EthicsLine, for employees
(and vendors) to report violations 24 hours a day.
Managers must “stand up,” as well. We update
our Human Rights Statement and Workplace
Rights Policy Manager’s Guide annually, adding
guidance on numerous human rights issues
including hate speech, indigenous peoples and
human and migrant labor. Our updated Human
and Workplace Rights Policy Toolkit also helps us
raise the bar and better equip managers.
How does what we say become
real? Here are a few examples of
how we “walk our talk.”
What We Do...
Respecting Human Rights: Why It Matters and What You Can Do18
What We Say
Our Policy provides a consistent approach to
workplace rights in our Company worldwide
and embeds it as an integral part of our culture,
strategy and day-to-day operations.
What We Say
Our Policy describes how the Company expects
employees to treat each other and everyone
they interact with.
What We Say
Our Supplier Guiding Principles (SGP) state
our expectations of bottlers and suppliers,
emphasizing practices that respect human
and workplace rights and comply, at a
minimum, with applicable national laws and
ratified international standards.
STAND UP	
What We Do
We conduct independent third-party
assessments of our operations to validate
compliance with our Human and Workplace
Rights Policy. In 2012, thousands of employees
received Human and Workplace Rights training;
it’s now standard training for all employees.
What We Do
We foster an environment of respect in many
ways, including through Global Mutual
Respect training, which is provided to employees
worldwide. We also survey employees to gather
insights and measure employee engagement,
which is a key metric in tracking whether or not
employees feel respected.
What We Do
Our Supplier Guiding Principles are part of all
agreements with direct and authorized suppliers
globally. To assess suppliers’ compliance, we
use independent third parties, who may conduct
confidential interviews with employees and on-site
contract workers. Suppliers that fail to uphold any
aspect of our SGP must take corrective actions.
We reserve the right to terminate an agreement
with any supplier that can’t comply.
In 2012, we upgraded our SGP assessments by
including 26 Human Rights Good Practices, and
we’re extending the reach of these assessments
throughout our major suppliers’ supply chains.
Learn more.
Respecting Human Rights: Why It Matters and What You Can Do18
About Workplace Rights
About Mutual Respect
About Supplier Expectations
Respecting Human Rights: Why It Matters and What You Can Do19 Respecting Human Rights: Why It Matters and What You Can Do19
STAND UP
Founding Member of the Global
Business Initiative on Human
Rights (GBIHR)
In 2009, The Coca‑Cola Company, General Electric,
ABB and Hewlett Packard founded the Global Business
Initiative on Human Rights (GBIHR) to bring respect for
human rights principles to the global community and
as a means of extending our human rights standards
throughout our global supply chain.
Founding Member of Global
Business Coalition Against Human
Trafficking (gBCAT)
Human trafficking is a global problem that needs a global
solution. That is why the Company has taken a stand
on this issue. We conduct more than 2,300 audits each
year of our Company, franchise bottlers and supply chain
to ensure compliance with our Human and Workplace
Rights Policy, which prohibits human trafficking. In 2012,
The Coca‑Cola Company joined global corporations —
such as ExxonMobil, Microsoft, Delta Air Lines, Carlson,
ManpowerGroup, LexisNexis, NXP and Travelport — as a
founding member of gBCAT. This coalition of companies
recognizes the critical role business can play in ending all
forms of modern-day slavery and will help to develop and
share best practices for addressing the vulnerability of
businesses to human trafficking in their operations.
As a member of gBCAT, we’re committed to supporting
the development of training modules for employees,
building awareness among consumers, suppliers and
partners, and collaborating with governments, NGOs and
civil society to develop cross-sector solutions.
Other
Ways We
Stand Up
Human Trafficking:
What You Can Do
Know the 7 Signs:
1.	 Unable to leave their job
2.	 Don’t control their own earnings
3.	 Unable to move freely or are being watched
or followed
4.	 Are afraid to speak in the presence of others
5.	 Show signs of being assaulted or otherwise
harmed (denial of food, water, sleep,
medical care)
6.	 Passports and other documents have
been taken
7.	 Have been cheated into paying debt
Report It (U.S.):
4 U.S. Trafficking hotline: 888-373-7888
4 U.S. Immigration and Customs Enforcement
(ICE) hotline: 866-347-2423
4 www.dhs.gov/humantrafficking
Respecting Human Rights: Why It Matters and What You Can Do20
STAND UP
Respecting Human Rights: Why It Matters and What You Can Do20
GivingCommunitiesandFamiliesHope
Stuart Kyle
Director, Workplace Accountability
The Coca‑Cola Company
When we first talk to mothers about the importance of their
children being in school instead of working, they don’t always
take it well — because their families depend on the income.
The NGOs help. I met the mother of a boy we had helped get
out of the summer harvest so he could go to school. She was
making pink purses that the NGO helps her sell to replace her
son’s harvest income.
Once the mothers see their kids in school, it’s like a load is
taken off their shoulders. One mother gave me a hug when she saw the NGO’s billboard
of her son on their street. It said, “Thank you for supporting my dream to become a
teacher.” Here’s a young boy who is not going to re-live the heritage of his parents and
grandparents. He’s going to be the first one to go to school. He has hope. When I’ve
met families like that before, there was no hope.
There are countless situations where we make a difference. I’ve met migrant workers
whose employers had seized their passports. They can’t leave the country or work for
another employer, so they’re essentially hostages of that company. I’ve seen workers
barefoot in a canning plant, with metal shavings all around that would slice your foot
apart. Some places denied jobs to — or fired — pregnant women and people with
HIV. In factories that weren’t paying overtime that we brought into compliance, the
income of workers increased by an average of 53% to 65%. When we get these things
corrected, it makes a huge difference in people’s lives, and it creates a more
sustainable community.
Why It
Matters
to Me
A mother sells purses to replace her son’s income. “Thank you for supporting my dream to become
a teacher.”
Respecting Human Rights: Why It Matters and What You Can Do21 Respecting Human Rights: Why It Matters and What You Can Do21
KNOW BETTER
KNOW BETTER
Respecting Human Rights: Why It Matters and What You Can Do22
When
we know
better,
we can do
better.
KNOW BETTER
The world
expects us to
know and be
responsible for
what happens
anywhere in our
value chain, from
“farm to shelf.”
Not knowing is no defense.
It isn’t easy to see all that goes on in our
suppliers’ suppliers’ suppliers’ operations.
However, we have a responsibility to ensure
that human rights are respected in our
Company, among our bottling partners and
in the supply chain, end-to-end.
The world expects us to “know and show”—
to know what’s going on and show that we
address issues when we find them. That’s
why the Global Workplace Rights (GWR)
group’s primary job is to identify potential
human rights issues — to provide easy-to-
use due diligence tools to help the business
identify human rights risks and avoid
unintended missteps, and to mitigate human
rights harm when it occurs.
The GWR team has developed a number of
standardized tools and processes
for your use — some are tried and true,
some are new and improved and some
are still in the pilot stage. They help us all
recognize potential human rights moments
and take the right actions.
3 Ways to
‘Know Better’
4	Learning from Stakeholders
4	Conducting Assessments and Building Capability
4	Using Tools that Raise the Bar
Respecting Human Rights: Why It Matters and What You Can Do22
Respecting Human Rights: Why It Matters and What You Can Do23
Extending
Our Reach:
KNOW BETTER
Human and Workplace
Rights Policy Assessments
Our Human and Workplace Rights Policy assessments
have been expanded to cover non-employee workers
on site, increasing the percentage of non-employee
workers covered by assessments from 20% to 100%.
We also identified an opportunity to strengthen our
Grievance Mechanisms in 2012 and are expanding their
reach and effectiveness. Additionally, with Verite and The
McDonald’s Corporation, we’re assessing the conditions of
migrant workers in our combined supply chain.
Supplier Guiding Principles
We have upgraded our Supplier Guiding Principles
(SGP) assessments to include a set of 26 Human Rights
Good Practices (see page 44 of the Workplace Rights
Implementation Guide). Aside from measuring the
presence of good practices, the assessments focus on
capacity building to increase adoption of good practices
over time. That means we’re helping more people
recognize potential human rights moments, and teaching
them how to take preventive or corrective action.
‘Pass it Back’ Drives Best Practices,
Assessments Down Supply Chain
We can’t be responsible for auditing the world. So how
do we connect our human and workplace rights vision
from customers all the way back through our supply chain
to the origin of raw materials? Our “Pass It Back” pilot
program is one way. Through Pass It Back, we’re helping
three of our major suppliers implement our assessments
throughout their own supply chains. This extends our best
practices exponentially, and helps us assess the indirect
affect our business may be having on human rights.
Building System Capability
Every other year since 2008, Global Workplace Rights
has assembled a meeting of human and workplace rights
experts from our largest bottling partners to exchange
best practices and to help educate the system about
what we mean by “Stand Up,” “Know Better” and “Make
it Right.” These meetings are supplemented by several
human and workplace rights skills development programs
available on Coca‑Cola University. Our 2012 meeting
in Shanghai included sharing a new contract labor risk
mitigation tool.
Engaging Our Employees
The Company is able to “stand up” for what’s right
through our employees’ engagement. To encourage
employees’ continued engagement, we:
4	 Offer nearly 25 online human and workplace rights
training and development sessions, many of which
feature recorded sessions with human rights
guest speakers.
4	 Solicit and publish compelling blogs by external
human rights leaders on our external website,
Coca‑Cola Journey, and maintain a steady stream of
human and workplace rights-related stories on our
intranet, myKO.
Assessment and
Capability Building
Respecting Human Rights: Why It Matters and What You Can Do23
Respecting Human Rights: Why It Matters and What You Can Do24
KNOW BETTER
Value Chain Analysis for Human
Rights Risk Tool
This tool makes it easier for our business system to
anticipate human rights risks, take advantage of the
human rights tools and to mitigate the risk before there
is human rights harm. In 2012, Global Workplace Rights
used the tool to analyze each aspect of our global
system value chain. This analysis relied on input from
stakeholders, our bottlers and data from over 14,000
workplace assessments covering over 2.5 million workers
in our supply chain. From this, GWR has identified actual
and potential human rights risks in each aspect of our
value chain — from raw materials to end use.
Human Rights Due
Diligence Checklists
Available policies, tools and practices provide a simple
way to help mitigate many risk areas. For example,
we’ve developed easy-to-use, two-page human rights
due diligence checklists that cover topics such as
migrant labor, child labor, plant siting, procurement and
more. These offer clear steps that managers can take
immediately to integrate respect for human and workplace
rights into daily operations that align with our policies.
Raising the Due Diligence Bar
in Myanmar
Any U.S. investor in Myanmar is expected to conduct
thorough human rights due diligence of its potential
impact, in line with the UN Guiding Principles on
Business and Human Rights and submit a report to the
U.S. Department of State. The report is published on
the State Department’s website for public comment.
As a first-mover investor in Myanmar, our initial report
will be submitted at the end of 2013 (and on an annual
basis thereafter on July 1). Socially-responsible investors
(and others) are expecting that all companies will do
comparable due diligence in other high-risk countries
and make their due diligence reports available publicly.
Our Myanmar due diligence process involved a thorough
assessment of human rights, finance and environmental
issues (among others) and included assessments of
production and distribution operations, land leases and
complicity issues. There will be ongoing due diligence as
we build our supply chain and bottling plants in Myanmar.
Using Tools that Raise
the Bar, Reduce the Risk
Respecting Human Rights: Why It Matters and What You Can Do25 Respecting Human Rights: Why It Matters and What You Can Do25
KNOW BETTER
Why It
Matters
to Me
‘PassItBack’HelpsMWVMakea
BiggerDifference
Bette Clark
Vice President, Supply Chain Risk and Enablement
MWV (MeadWestvaco)
MWV’s participation in The Coca-Cola Company’s ‘Pass It Back’ program provides an
opportunity for us to gain a greater understanding of potential human rights risks in our
supply chain and in our own customers’ supply chain. By using tools and assessments
that are aligned to The Coca-Cola Company’s, we provide our plants and our contract
manufacturers a better understanding of their role in achieving our shared commitment
to sustainable improvement. We might make a small difference in our own supply
chain, but it has an impact in the world. And Pass It Back gives MWV an opportunity to
use its leverage to make an even bigger difference in the world.
Respecting Human Rights: Why It Matters and What You Can Do26
MAKE IT RIGHT
Respecting Human Rights: Why It Matters and What You Can Do26
MAKE IT RIGHT
Respecting Human Rights: Why It Matters and What You Can Do27 Respecting Human Rights: Why It Matters and What You Can Do27
We take that
responsibility seriously.
MAKE IT RIGHT
When we find a problem, we take corrective action. For
example, our 14,000 supply chain audits uncovered the
need for changes, and we’ve already made essential
improvements that have benefitted over 1 million people.
For many, this has meant:
4 Getting a day off from work that they
otherwise would not have had
4 Working in a safer environment
4 No longer experiencing gender
discrimination
4 Getting a 50% to 60% increase in
income once their employer complied
with the law
Making it right can’t be a one-time thing. So, we look
for opportunities to create global policies and tools that
help associates prevent or handle issues in a consistent,
compassionate way. See the next page for a few examples
of how we’re making things right.
Doing the
right thing
is in our
DNA.
Sometimes, doing
the right thing means
admitting that we
can do better and
making it right.
Respecting Human Rights: Why It Matters and What You Can Do28
MAKE IT RIGHT
Migrant Labor in the Business
System and Supply Chain
Middle Eastern Migrant Workers’ Passports No
Longer Seized
In 2008, our Supplier Guiding Principles audits found
Middle Eastern bottling plants were seizing and holding
migrant workers’ passports. Without passports, migrant
workers can’t leave the country or work for another
employer, which violates our SGP prohibition of forced
labor. To help make this right, we provided bottlers with
our research regarding local legal requirements, which
conflicted with the commonly-held view that passport
holding was legally required. We also provided training
that helped bottlers change the policies of certain insurers
that required this type of practice.
Child Labor in the Agriculture
Supply Chain
Stakeholder Engagement Leads to Expanding Focus on
Child Labor in Agriculture
As a major buyer of sugar and other agricultural
ingredients, we are using our influence to help end
hazardous child labor in agriculture. Our efforts to end
hazardous child labor in our agriculture supply chain
began in the sugarcane harvesting industry and have since
expanded to include our entire agricultural supply chain.
While there is still much to do, we’ve had some successes.
(See more detail about our efforts to prevent hazardous
child labor.)
Contract Labor in the
Business System
Contract workers within our system might be doing
the same job as full-time employees, but may earn
substantially less and have fewer benefits — even if
they have more tenure. Through our work in India, the
Philippines, and Pakistan, we’ve learned more about
how to help ensure contract laborers are treated fairly
throughout our system. And we’ve turned this learning
into a new tool to help managers identify and assess
common potential risks throughout the overall cycle of an
employer’s relationship with a contract worker. As result,
we’ve reduced the use of “non-seasonal” contract labor in
India, the Philippines and Pakistan.
Leadership Safety Engagement
Program in Morocco
When an external stakeholder raised concerns about
safety and health issues in our bottling system, the
Global Workplace Rights and Safety teams collaborated
to conduct a comprehensive safety summit. The best
practice-focused session provided practical tools and
advice that could be implemented right away. Programs
like this can help improve our safety record because they
clarify our safety expectations, drive accountability and
help build capability in our system.
Respecting Human Rights: Why It Matters and What You Can Do28
How We Make It Right:
A Few Examples
Respecting Human Rights: Why It Matters and What You Can Do29 Respecting Human Rights: Why It Matters and What You Can Do29
MAKE IT RIGHT
ClearingMachetesfromClassrooms
Cindy Sawyer
Work Environment & Workplace Rights Director
The Coca‑Cola Company
The opportunity to play a role in addressing child labor in sugarcane harvesting has
been both challenging and humbling. This is especially true working from the Center,
because you tend to think, “How can we have a direct impact…from here?”
But with our Global/Local strategy, we are. I see it in the work of our multi-stakeholder
initiatives and in my personal experience. I remember long ago explaining to some
sugarcane plantation owners why child labor isn’t acceptable anywhere in our supply
chain. They weren’t ready to hear that message at the time, because in many places,
children work alongside their parents as a way to make ends meet. When I showed them
pictures of children with machetes and highlighted the hazards, someone said if they
don’t start cutting sugarcane as children, they won’t get calluses on their hands tough
enough to be able to hold the machete when they’re older. I’m pleased to say, they
don’t think like that today. The industry in several locations has come a long way.
I saw this personally, when I helped to refurbish a school in Central America. Some of
the children used to work in the sugarcane fields, but now they’re in school. When I was
cleaning up a classroom, I found a discarded machete. It seemed symbolic—like that
“tool of the trade” had been traded for the opportunity to go to school.
During the same trip, our Company’s
Sustainability team completed a project to
provide water to the refurbished school.
To see our Company holistically helping a
community like that was really powerful. It’s
one of those experiences that sticks with you,
and it confirms that we really can make
a difference.
Why It
Matters
to Me
Cindy removes a discarded machete from a
classroom when helping to refurbish a school in
Central America.
Respecting Human Rights: Why It Matters and What You Can Do30
MAKE IT RIGHT
Since 2003...
Since 2007...
More than 14,000 assessments completed,
covering more than 2.5 million workers
Compliance with Supplier Guiding Principles
2012 closed at a record
performance of 81%,
versus a global goal of
80%, as measured by
our Global Workplace
Rights Scorecard
We show a steady track record in score
performance improvement
94% of our core suppliers, or more than 4,000
locations, have been audited.
Over 150 facilities with egregious practices
have been identified and addressed
Over 1 million workers in our
supply chain have benefited
from improved practices
Nearly 50,000 violations to
local law that could draw civil
or criminal sanction have
been identified and have
been, or are being, resolved
*All figures above are as of 2012.
Making
It Right,
By the
Numbers*
44%2009
2010
2011
2012
2015
2020
63%
73%
81%
GOAL 91% (OVERALL)
GOAL 96% (OVERALL)
94% OR
The income of workers increased by an
average of 53% to 65% in factories in China
and India that overcame noncompliances
related to wage and benefits payments.
$
Respecting Human Rights: Why It Matters and What You Can Do30
14,000
4,000
27%
81%
2007 2012
80%
81%
2012Global
Goal
150
250K
500K
750K
1 MILLION
Respecting Human Rights: Why It Matters and What You Can Do31 Respecting Human Rights: Why It Matters and What You Can Do31
MAKE IT RIGHT
MyDadPlantedtheSeedof‘Rights’forMe
Kent McVay
International Labor Relations and
Global Workplace Rights Director
The Coca‑Cola Company
I care deeply about human rights today in large part because
of my dad. I grew up in the deep south of the U.S., as the
youngest kid in a large family. My dad was active in local
community politics while I was growing up. He volunteered
to register other voters during local, state and federal
election cycles, and he worked actively on community issues,
particularly in the African American community where I
grew up.
I remember him saying he did not have the federally-
protected right to vote until the year I was born, and he would often tell me and my
siblings how important it was to exercise our right to vote. Years later, I reflected on
the fact that, as an African-American man growing up where he did, he did not have a
federally-protected right to vote until he was 35 years old.
My dad was right; the right to vote is an invaluable right that everyone should have.
And it’s not the only one. I believe all people should be treated fairly and have basic
rights — irrespective of their religion, ethnicity, gender, color, etc. I’m proud that my
work for the Company allows me to help ensure people working in our system are
treated fairly and equitably.
Why It
Matters
to Me
Respecting Human Rights: Why It Matters and What You Can Do32
ENGAGE STAKEHOLDERS
Respecting Human Rights: Why It Matters and What You Can Do32
ENGAGE
STAKEHOLDERS
Respecting Human Rights: Why It Matters and What You Can Do33 Respecting Human Rights: Why It Matters and What You Can Do33
ENGAGE STAKEHOLDERS
Partnering with stakeholders also helps us make a bigger
difference in the world, because it boosts best practice
sharing and benchmarking, and helps raise the human and
workplace rights bar for all companies and organizations.
And when we can do that, we can help to improve the
lives of millions of people around the world.
To achieve these big ambitions, we continually partner
with external stakeholders from the golden triangle of
civil society, government and business — and with our
employees. Together, we help create a rising tide that lifts
all boats.
That’s why we
cultivate and maintain
relationships with the
people who know. And
we’ve created routines
to involve them, to
listen to them and to
learn from them.
It would be
foolish to
think we
could do it
all alone.
Respecting Human Rights: Why It Matters and What You Can Do34
ENGAGE STAKEHOLDERS
Civil Society
Civil society includes socially responsible investors,
universities and students, people in the communities we
serve, labor unions and similar organizations, NGOs and
more. A few examples of our engagement:
4 During the 2012 Clinton Global Initiative’s annual
meeting, Chairman and CEO Muhtar Kent met with
Human Rights Watch and discussed human rights
issues related to the Winter Olympics and Myanmar.
4 The company responded to Oxfam’s concerns by
outlining a concrete action plan to address land
rights of farmers in our supply chain. It includes zero
tolerance for “land grabs.”
4 When the International Union of Food and Allied
Workers (IUF) our largest Stakeholder, made us aware
of health and safety issues in Morocco, we took action.
Government
We regularly work with national governments and
departments of labor where we operate.
4 Our engagement with ILO-IPEC has led to effective
child labor initiatives.
4 We’re working with the South African government and
its fruit industry and to establish human and workplace
rights standards.
4	We worked with the local ILO and British Council
to focus on supply chain human rights in Myanmar,
and set the transparency bar for the mandatory U.S.
State Department public reporting that is required to
maintain our U.S. license to operate there.
Business
Collaborating with like-minded businesses augments our
efforts worldwide and helps us learn.
Leading the Way Through AIM-PROGRESS
Through our leadership role in AIM-PROGRESS, we’ve
helped to expand leading-edge practices, avoided more
than $1 million in costs and advanced human rights
knowledge in our supply chain. AIM-PROGRESS is a forum
of more than 30 businesses in the Fast Moving Consumer
Goods industry. Learn more.
Shift Project
Twice a year, we participate with several other
multinational companies in Shift’s collaborative session on
implementing respect for human rights. Shift’s team, many
of who were involved in the writing of the UN Guiding
Principles on Business and Human Rights, provide us
with valuable advice and benchmarking information on
challenging issues such as grievance mechanisms in our
supply chain.
Engaging
the Golden
Triangle
Respecting Human Rights: Why It Matters and What You Can Do34
Respecting Human Rights: Why It Matters and What You Can Do35 Respecting Human Rights: Why It Matters and What You Can Do35
TOOLS YOU CAN USE
Tools You
Can Use
Resources & Policies
Human and Workplace Rights Policy
Provides a consistent approach to human and workplace rights in
our Company worldwide and embeds it as an integral part of our
culture, strategy and day-to-day operations. p.18
Supplier Guiding Principles (SGP)
State our expectations of suppliers in our global supply chain,
emphasizing workplace practices that respect human rights and
comply, at a minimum, with applicable laws and international
conventions. p.18
EthicsLine (866) 790-5579
Employees can confidentially report potential human rights or
ethics issues (accessible 24 hours/day). p.17
Human and Workplace Rights Training
Multiple online courses for all employees offered through
Coca‑Cola University. p.18
Human Rights Statement and Workplace Rights
Policy Manager’s Guide
Guidance to help managers understand and implement the HRS
and the WRP. p.17
Human and Workplace Rights Policy Toolkit
Guidance for employees who select suppliers and
manage relationships with facilities assessed under
SGP or WRP. p.17
Workplace Rights Implementation Guide
Describes the SGP assessment process, the steps suppliers can
take to comply, and suppliers’ role and responsibilities with
regard to SGP. p.23
Requirements for All Suppliers
Page on Coca‑Cola Journey website providing links to our
requirements for all suppliers.
Hours of Work Guidance
Resource to help facility managers identify and address the root
causes of overtime.
Citrus Industry Farm/Grove Resource Guide
Helps Florida citrus suppliers maintain SGP objectives.
Third-Party Sugar Studies, by Country
Describe current state of workplace and human rights in
the sugar supply chain in Costa Rica, Dominican Republic,
Guatemala, Honduras and Nicaragua.
Checklists & Assessments
Human Rights Due Diligence Assessment Checklists
Help managers identify potential human rights risks in all
activities in which the Company is engaged. Each checklist
includes a basic explanation and case study regarding the
purpose of conducting a human rights assessment, as well
as instructions for using the tool. The checklists offer
easy to understand identifiers for possible human
rights-related risks.
1.	 Micro-Distribution Centers (MDCs) checklist
helps MDC operators support positive, safe and healthy
work environments.
2.	 Migrant Worker checklist
identifies key areas for employers to monitor when
employing migrant labor.
3.	 Contract Labor checklist
is to help facilities using large numbers of contract workers
ensure human and workplace rights are being respected.
4.	 Child Labor in Agriculture checklist
	 is to help facilities understand the human rights risks
	 associated with child labor and take steps to ensure
	 they are not employing children.
5.	 Plant Siting Due Diligence checklist
	 is to identify the potential human rights-related risk as
	 the result of plant siting activities.
6.	 Non-Trademark Activation Due Diligence checklist
	 is a human rights risk assessment for artisans. It
	 supports the 5by20 program’s use of artisans to
	 develop promotional products.
7.	 Pre-sourcing Human Rights Due Diligence checklist
	 helps assess human rights risk in procurement activities.
For questions or more information, email: humanandworkplacerights@coca-cola.com
STAND UP
KNOW
BETTER
MAKE IT
RIGHT
ENGAGE
STAKEHOLDERS
©2013 by The Coca‑Cola Company (“TCCC”), Atlanta, GA, USA. All rights reserved.

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2013-global-workplace-rights-brochure

  • 1. Respecting Human Rights: Why It Matters and What You Can Do1 Respecting Human Rights: A Business Imperative Why It Matters and What You Can Do Tools and Resources to Help You Make a Difference
  • 2. Respecting Human Rights: Why It Matters and What You Can Do2 The Coca‑Cola Company is committed to making a positive difference everywhere we do business, and this includes respecting the fundamental principles of human and workplace rights everywhere we operate. The Company shares the view that all people should enjoy fundamental human rights to life, liberty, dignity, respect, equality under the law — and more. Our commitment to making this a reality guides the way we conduct business. It governs all aspects of our work, from the suppliers we work with, to our bottling partners, to how we engage each other in the workplace, to our interaction with customers, consumers and the communities we serve. Upholding this commitment begins with each of us. One of the great things about working in our business is being able to connect with people all around the world and inspire them, in our own small way, to make a difference. Please use this brochure, Respecting Human Rights, as your guide to making a difference — for our business and for the world. I was blessed to learn at an early age that everyone has a role to play in making the world a better place. Muhtar Kent Chairman and CEO
  • 3. Respecting Human Rights: Why It Matters and What You Can Do3 A central ethic of The Coca‑Cola Company and its bottling partners is to do the right thing — every day. Imagine the power if, every year, the more than 700,000 associates in our system took one action that mitigated a human rights impact of our business, or improved the lives of the people in the communities in which they live. We all have had “human rights moments,” both inside and outside the system. When was your first human rights moment? When was your most recent Coca‑Cola human rights moment? When I was 10 years old, I had a human rights moment, but didn’t realize it at the time. I was visiting my cousin’s vineyard to help him harvest grapes. He needed seasonal, migrant labor to help during harvest season. After a day’s work, the migrants and their families cooked by campfire and slept on the ground or in their cars. Even as a boy, this felt wrong to me. With money I earned over the next three years from a paper route, mowing lawns, shoveling snow — and a loan from my dad — my family built bunk houses and latrines that stand to this day for the migrant labor families. Of course, at age 10, I was unaware of “human rights.” And I had never heard of the “Right to Housing” in Article 25 of the United Nations’ Universal Declaration of Human Rights. What I intuitively understood is that we have a responsibility to speak up — and to act — when something is not right. This brochure, Respecting Human Rights, should make it easier for you to take the right actions if you’re faced with a human rights moment of your own. Respecting the basic human rights of all people around the world is a principle that’s easy to believe in, but often harder to make a reality. Yet, it is essential to sustaining the communities we serve and to our Company’s future. Since I joined The Coca‑Cola Company in 2005, I’ve experienced many human rights moments. In business, as in life, doing the right thing is often not convenient or easy. But that doesn’t mean we shouldn’t do it. In fact, it’s what we — and our great Company — stand for. Imagine 700,000 Coca‑Cola Human Rights Moments Every Year Ed Potter Director Global Workplace Rights
  • 4. Respecting Human Rights: Why It Matters and What You Can Do4
  • 5. Respecting Human Rights: Why It Matters and What You Can Do5 This brochure is intended to give you: 4 An understanding of The Coca‑Cola Company’s commitment to respecting human rights 4 Access to human rights tools and resources you can use in your day-to-day work 4 An update on the Company’s progress in the area of human rights What’s Inside 4 Why It Matters 4 What We Do 1. Stand Up 2. Know Better 3. Make It Right 4. Engage Stakeholders 4 Tools You Can Use
  • 6. Respecting Human Rights: Why It Matters and What You Can Do6 WHY IT MATTERS Respecting human rights is a business imperative. What was your first human rights moment?
  • 7. Respecting Human Rights: Why It Matters and What You Can Do7 Remember the kid who didn’t fit in? WHY IT MATTERS Most of us remember a kid like that. The one who didn’t have the power to stand up for himself. The one who was different. Maybe she lacked social standing or a stable home. Maybe he was from another country or had a different ethnic background. For whatever reason, these kids were singled out and often harassed — victims of discrimination or lack of respect simply because they were different. This might have been your first “human rights moment.” Human rights issues can be as big as the world, and as close and personal as your childhood. Whether you stood up to those childhood tormentors back then or stayed in the background, recognizing a human rights moment now, and acting on it, is essential to respecting human rights. It matters. And as citizens of the world and ambassadors of our brands, it is not optional for us.
  • 8. Respecting Human Rights: Why It Matters and What You Can Do8 WHY IT MATTERS Doing good is good for business. Treat people with respect on a personal level and respect human rights at the Company level. It’s the right thing to do, every day.
  • 9. Respecting Human Rights: Why It Matters and What You Can Do9 WHY IT MATTERS To achieve our 2020 Vision, we must always strive to do the right thing for people. It’s one of the ways we can make a difference and create value, because it helps sustain communities and the people who buy our beverages. Doing the right thing helps us authentically inspire moments of optimism and happiness. And because authenticity is the lifeblood of our brands, we must be able to answer “yes” when consumers, customers, investors and stakeholders ask, “Are you what you say you are?” Striving to do the right thing doesn’t mean we’re perfect, and it doesn’t mean always being right. Sometimes it means admitting when you’re wrong and doing something about it. This kind of authenticity fosters trust and enhances our reputation. 4 Our progress on respect for human rights led to our inclusion within the Calvert Social Index. The index is a benchmark for measuring the performance of large, U.S.-based companies that follow sustainable and responsible policies — and serves as a litmus test that socially-responsible investors use when deciding which companies to invest in. 4 Our human rights practices were cited as a “unique best people practice” by the Great Place to Work Institute in 2011, when it included the Company on the World’s Best Multinational Workplaces list. (We made this list again in 2013.) Doing the Right Thing Builds Brand Value
  • 10. Respecting Human Rights: Why It Matters and What You Can Do10 WHY IT MATTERS Why It Matters to Me WhyItMatterstoMcDonald’s Javier C. Goizueta President, The McDonald’s Division Worldwide VP, The Coca-Cola Company Doing the right thing is as important to McDonald’s as it is to The Coca‑Cola Company. Throughout our 58-year business relationship, we have established a deep understanding of each other’s programs that has resulted in mutual trust, openness and sharing of our best practices. While McDonald’s does this with other key suppliers, we feel it has become a differentiator for us with McDonald’s. Today, we are just one of a few companies that McDonald’s allows to self-manage its Supplier Workplace Accountability Program, resulting in significant cost reduction for The Coca‑Cola Company. Being a leader in this area is valued by our customer, and it adds value to our bottom line. Doing the right thing makes financial sense. Consider these costs that would have directly hit our bottom line in 2012, but didn’t: 4 More than $40 million in costs avoided because our strict social compliance self- audits fulfilled the audit requirements of our customers, and they decided it was unnecessary to audit us 4 More than $1 million in costs saved by agreeing to “mutually recognize” certain suppliers’ self-audits, avoiding duplicate audits Doing the Right Thing Builds Economic Value: Over $100 Million in 2012 4 More than $6 million in net overtime expenses saved when “excess work hour” issues were resolved 4 More than $100 million of our supply chain protected without the need to change suppliers
  • 11. Respecting Human Rights: Why It Matters and What You Can Do11 StandingUpforThoseWhoCan’t StandUpforThemselves Elizabeth Finn Johnson Senior Counsel, Employee Relations The Coca‑Cola Company I went to law school to become a civil rights lawyer. Standing up for the rights of the “underrepresented” is really important to me. Doing the human rights due diligence work is one way for me to connect my passion for defending the rights of those who can’t stand up for themselves with work the Company is doing to make sure that we aren’t trampling on those rights. It makes it more than a job. It’s very important to me that the Company is trying to make the world a better place. I’m proud to work at a company that understands and supports human rights in all its facets. I have a particular passion for helping women and children. One way I do this is through our Legal division’s pro bono efforts; I work with GAIN [Georgia Asylum and Immigration Network] to represent local victims of trafficking. In one case, my client had given up a promising career in the Pacific for an arranged marriage and promises of furthering her career and education in the U.S. Instead, she lived with her husband and his parents, and basically became their slave. She was drugged, isolated, physically and verbally abused…powerless. She managed to escape, and I represented her to get her U visa*. She now has a successful career at a national non-profit. She would tell you that her life has been changed, and she has blossomed. To have the opportunity to help women who are powerless get out of awful situations — like forced prostitution — and have the Company support me in that … that’s what keeps me going. *The U visa gives victims of certain crimes temporary legal status and work eligibility in the U.S. for up to four years. WHY IT MATTERS Why It Matters to Me
  • 12. Respecting Human Rights: Why It Matters and What You Can Do12 WHAT WE DO Stand Up. Know Better. Make It Right. Engage Stakeholders. This is what we do.
  • 13. Respecting Human Rights: Why It Matters and What You Can Do13 WHAT WE DO They define what the corporate responsibility to respect human rights means. Our entire human and workplace rights strategy — and all related efforts — are aligned with these principles. To make it easier to understand what we do, we’ve simplified the 27 pages of principles into the four areas on the next page. The United Nation’s Guiding Principles on Business and Human Rights were accepted and supported by global business in 2011.
  • 14. Respecting Human Rights: Why It Matters and What You Can Do14 4 The UN’s Universal Declaration of Human Rights. Its 30 “Articles” set out the basic rights and personal freedoms every person is entitled to, regardless of home country and personal characteristics. 4 ILO Declaration on Fundamental Principles and Rights at Work. This is the political commitment of governments, and employers’ and workers’ organizations, to uphold basic workplace rights. 4 The UN’s Guiding Principles on Business and Human Rights. This provides the guidelines for businesses to demonstrate respect for human rights. WHAT WE DO A policy commitment that businesses should have in place to meet their responsibility to respect human rights; A human rights due-diligence process to identify, prevent, mitigate and account for how they address their impacts on human rights; Processes to enable the remediation of any adverse human rights impacts they cause or to which they contribute; Drawing on internal and/or independent external human rights expertise and engaging in meaningful consultation with potentially affected groups and other relevant stakeholders. The UN calls it… We call it… UNIVERSAL DECLARATION OF HUMAN RIGHTS 60 Stand Up Know Better Make It Right Engage Stakeholders 1 2 3 4 What Are Human Rights? Many organizations are focused on human rights, which are addressed in a myriad of statements, guidelines and declarations. However, there are three main documents that you should understand. They are: All of the Company’s human rights efforts, policies, programs and tools fit into these four areas. This is what we, as a Company, do.
  • 15. Respecting Human Rights: Why It Matters and What You Can Do15 Respecting Human Rights: Why It Matters and What You Can Do15 STAND UP STAND UP
  • 16. Respecting Human Rights: Why It Matters and What You Can Do16 How Does the Company ‘Take a Stand’? Our human and workplace rights policies clearly define what we stand for. When you follow our policies and processes, when you use the tools, when you act on a “human rights moment” and use Company resources to do the right thing — you’re helping the Company take a stand. Our policies say what we believe in — what we’re committed to. But it’s up to all of us to bring our commitments to life in what we do. STAND UP Respecting Human Rights: Why It Matters and What You Can Do16
  • 17. Respecting Human Rights: Why It Matters and What You Can Do17 Respecting Human Rights: Why It Matters and What You Can Do17 STAND UP What We Say We establish the Policy foundation for managing our global business in a way that respects all human rights. We also set out our human rights expectations for independent bottlers in the Coca‑Cola system. Our policy documents set out our expectations related to human rights and issues such as child labor, forced labor, freedom of association, discrimination, health and safety, hours of work, speech, community engagement, mutual respect and more. What We Say... About Human Rights What We Do Every year, employees are expected to “stand up” by certifying that they understand our Human and Workplace Rights Policy and Code of Business Conduct — and that they will report any human rights issues they may see. We offer a third-party service, EthicsLine, for employees (and vendors) to report violations 24 hours a day. Managers must “stand up,” as well. We update our Human Rights Statement and Workplace Rights Policy Manager’s Guide annually, adding guidance on numerous human rights issues including hate speech, indigenous peoples and human and migrant labor. Our updated Human and Workplace Rights Policy Toolkit also helps us raise the bar and better equip managers. How does what we say become real? Here are a few examples of how we “walk our talk.” What We Do...
  • 18. Respecting Human Rights: Why It Matters and What You Can Do18 What We Say Our Policy provides a consistent approach to workplace rights in our Company worldwide and embeds it as an integral part of our culture, strategy and day-to-day operations. What We Say Our Policy describes how the Company expects employees to treat each other and everyone they interact with. What We Say Our Supplier Guiding Principles (SGP) state our expectations of bottlers and suppliers, emphasizing practices that respect human and workplace rights and comply, at a minimum, with applicable national laws and ratified international standards. STAND UP What We Do We conduct independent third-party assessments of our operations to validate compliance with our Human and Workplace Rights Policy. In 2012, thousands of employees received Human and Workplace Rights training; it’s now standard training for all employees. What We Do We foster an environment of respect in many ways, including through Global Mutual Respect training, which is provided to employees worldwide. We also survey employees to gather insights and measure employee engagement, which is a key metric in tracking whether or not employees feel respected. What We Do Our Supplier Guiding Principles are part of all agreements with direct and authorized suppliers globally. To assess suppliers’ compliance, we use independent third parties, who may conduct confidential interviews with employees and on-site contract workers. Suppliers that fail to uphold any aspect of our SGP must take corrective actions. We reserve the right to terminate an agreement with any supplier that can’t comply. In 2012, we upgraded our SGP assessments by including 26 Human Rights Good Practices, and we’re extending the reach of these assessments throughout our major suppliers’ supply chains. Learn more. Respecting Human Rights: Why It Matters and What You Can Do18 About Workplace Rights About Mutual Respect About Supplier Expectations
  • 19. Respecting Human Rights: Why It Matters and What You Can Do19 Respecting Human Rights: Why It Matters and What You Can Do19 STAND UP Founding Member of the Global Business Initiative on Human Rights (GBIHR) In 2009, The Coca‑Cola Company, General Electric, ABB and Hewlett Packard founded the Global Business Initiative on Human Rights (GBIHR) to bring respect for human rights principles to the global community and as a means of extending our human rights standards throughout our global supply chain. Founding Member of Global Business Coalition Against Human Trafficking (gBCAT) Human trafficking is a global problem that needs a global solution. That is why the Company has taken a stand on this issue. We conduct more than 2,300 audits each year of our Company, franchise bottlers and supply chain to ensure compliance with our Human and Workplace Rights Policy, which prohibits human trafficking. In 2012, The Coca‑Cola Company joined global corporations — such as ExxonMobil, Microsoft, Delta Air Lines, Carlson, ManpowerGroup, LexisNexis, NXP and Travelport — as a founding member of gBCAT. This coalition of companies recognizes the critical role business can play in ending all forms of modern-day slavery and will help to develop and share best practices for addressing the vulnerability of businesses to human trafficking in their operations. As a member of gBCAT, we’re committed to supporting the development of training modules for employees, building awareness among consumers, suppliers and partners, and collaborating with governments, NGOs and civil society to develop cross-sector solutions. Other Ways We Stand Up Human Trafficking: What You Can Do Know the 7 Signs: 1. Unable to leave their job 2. Don’t control their own earnings 3. Unable to move freely or are being watched or followed 4. Are afraid to speak in the presence of others 5. Show signs of being assaulted or otherwise harmed (denial of food, water, sleep, medical care) 6. Passports and other documents have been taken 7. Have been cheated into paying debt Report It (U.S.): 4 U.S. Trafficking hotline: 888-373-7888 4 U.S. Immigration and Customs Enforcement (ICE) hotline: 866-347-2423 4 www.dhs.gov/humantrafficking
  • 20. Respecting Human Rights: Why It Matters and What You Can Do20 STAND UP Respecting Human Rights: Why It Matters and What You Can Do20 GivingCommunitiesandFamiliesHope Stuart Kyle Director, Workplace Accountability The Coca‑Cola Company When we first talk to mothers about the importance of their children being in school instead of working, they don’t always take it well — because their families depend on the income. The NGOs help. I met the mother of a boy we had helped get out of the summer harvest so he could go to school. She was making pink purses that the NGO helps her sell to replace her son’s harvest income. Once the mothers see their kids in school, it’s like a load is taken off their shoulders. One mother gave me a hug when she saw the NGO’s billboard of her son on their street. It said, “Thank you for supporting my dream to become a teacher.” Here’s a young boy who is not going to re-live the heritage of his parents and grandparents. He’s going to be the first one to go to school. He has hope. When I’ve met families like that before, there was no hope. There are countless situations where we make a difference. I’ve met migrant workers whose employers had seized their passports. They can’t leave the country or work for another employer, so they’re essentially hostages of that company. I’ve seen workers barefoot in a canning plant, with metal shavings all around that would slice your foot apart. Some places denied jobs to — or fired — pregnant women and people with HIV. In factories that weren’t paying overtime that we brought into compliance, the income of workers increased by an average of 53% to 65%. When we get these things corrected, it makes a huge difference in people’s lives, and it creates a more sustainable community. Why It Matters to Me A mother sells purses to replace her son’s income. “Thank you for supporting my dream to become a teacher.”
  • 21. Respecting Human Rights: Why It Matters and What You Can Do21 Respecting Human Rights: Why It Matters and What You Can Do21 KNOW BETTER KNOW BETTER
  • 22. Respecting Human Rights: Why It Matters and What You Can Do22 When we know better, we can do better. KNOW BETTER The world expects us to know and be responsible for what happens anywhere in our value chain, from “farm to shelf.” Not knowing is no defense. It isn’t easy to see all that goes on in our suppliers’ suppliers’ suppliers’ operations. However, we have a responsibility to ensure that human rights are respected in our Company, among our bottling partners and in the supply chain, end-to-end. The world expects us to “know and show”— to know what’s going on and show that we address issues when we find them. That’s why the Global Workplace Rights (GWR) group’s primary job is to identify potential human rights issues — to provide easy-to- use due diligence tools to help the business identify human rights risks and avoid unintended missteps, and to mitigate human rights harm when it occurs. The GWR team has developed a number of standardized tools and processes for your use — some are tried and true, some are new and improved and some are still in the pilot stage. They help us all recognize potential human rights moments and take the right actions. 3 Ways to ‘Know Better’ 4 Learning from Stakeholders 4 Conducting Assessments and Building Capability 4 Using Tools that Raise the Bar Respecting Human Rights: Why It Matters and What You Can Do22
  • 23. Respecting Human Rights: Why It Matters and What You Can Do23 Extending Our Reach: KNOW BETTER Human and Workplace Rights Policy Assessments Our Human and Workplace Rights Policy assessments have been expanded to cover non-employee workers on site, increasing the percentage of non-employee workers covered by assessments from 20% to 100%. We also identified an opportunity to strengthen our Grievance Mechanisms in 2012 and are expanding their reach and effectiveness. Additionally, with Verite and The McDonald’s Corporation, we’re assessing the conditions of migrant workers in our combined supply chain. Supplier Guiding Principles We have upgraded our Supplier Guiding Principles (SGP) assessments to include a set of 26 Human Rights Good Practices (see page 44 of the Workplace Rights Implementation Guide). Aside from measuring the presence of good practices, the assessments focus on capacity building to increase adoption of good practices over time. That means we’re helping more people recognize potential human rights moments, and teaching them how to take preventive or corrective action. ‘Pass it Back’ Drives Best Practices, Assessments Down Supply Chain We can’t be responsible for auditing the world. So how do we connect our human and workplace rights vision from customers all the way back through our supply chain to the origin of raw materials? Our “Pass It Back” pilot program is one way. Through Pass It Back, we’re helping three of our major suppliers implement our assessments throughout their own supply chains. This extends our best practices exponentially, and helps us assess the indirect affect our business may be having on human rights. Building System Capability Every other year since 2008, Global Workplace Rights has assembled a meeting of human and workplace rights experts from our largest bottling partners to exchange best practices and to help educate the system about what we mean by “Stand Up,” “Know Better” and “Make it Right.” These meetings are supplemented by several human and workplace rights skills development programs available on Coca‑Cola University. Our 2012 meeting in Shanghai included sharing a new contract labor risk mitigation tool. Engaging Our Employees The Company is able to “stand up” for what’s right through our employees’ engagement. To encourage employees’ continued engagement, we: 4 Offer nearly 25 online human and workplace rights training and development sessions, many of which feature recorded sessions with human rights guest speakers. 4 Solicit and publish compelling blogs by external human rights leaders on our external website, Coca‑Cola Journey, and maintain a steady stream of human and workplace rights-related stories on our intranet, myKO. Assessment and Capability Building Respecting Human Rights: Why It Matters and What You Can Do23
  • 24. Respecting Human Rights: Why It Matters and What You Can Do24 KNOW BETTER Value Chain Analysis for Human Rights Risk Tool This tool makes it easier for our business system to anticipate human rights risks, take advantage of the human rights tools and to mitigate the risk before there is human rights harm. In 2012, Global Workplace Rights used the tool to analyze each aspect of our global system value chain. This analysis relied on input from stakeholders, our bottlers and data from over 14,000 workplace assessments covering over 2.5 million workers in our supply chain. From this, GWR has identified actual and potential human rights risks in each aspect of our value chain — from raw materials to end use. Human Rights Due Diligence Checklists Available policies, tools and practices provide a simple way to help mitigate many risk areas. For example, we’ve developed easy-to-use, two-page human rights due diligence checklists that cover topics such as migrant labor, child labor, plant siting, procurement and more. These offer clear steps that managers can take immediately to integrate respect for human and workplace rights into daily operations that align with our policies. Raising the Due Diligence Bar in Myanmar Any U.S. investor in Myanmar is expected to conduct thorough human rights due diligence of its potential impact, in line with the UN Guiding Principles on Business and Human Rights and submit a report to the U.S. Department of State. The report is published on the State Department’s website for public comment. As a first-mover investor in Myanmar, our initial report will be submitted at the end of 2013 (and on an annual basis thereafter on July 1). Socially-responsible investors (and others) are expecting that all companies will do comparable due diligence in other high-risk countries and make their due diligence reports available publicly. Our Myanmar due diligence process involved a thorough assessment of human rights, finance and environmental issues (among others) and included assessments of production and distribution operations, land leases and complicity issues. There will be ongoing due diligence as we build our supply chain and bottling plants in Myanmar. Using Tools that Raise the Bar, Reduce the Risk
  • 25. Respecting Human Rights: Why It Matters and What You Can Do25 Respecting Human Rights: Why It Matters and What You Can Do25 KNOW BETTER Why It Matters to Me ‘PassItBack’HelpsMWVMakea BiggerDifference Bette Clark Vice President, Supply Chain Risk and Enablement MWV (MeadWestvaco) MWV’s participation in The Coca-Cola Company’s ‘Pass It Back’ program provides an opportunity for us to gain a greater understanding of potential human rights risks in our supply chain and in our own customers’ supply chain. By using tools and assessments that are aligned to The Coca-Cola Company’s, we provide our plants and our contract manufacturers a better understanding of their role in achieving our shared commitment to sustainable improvement. We might make a small difference in our own supply chain, but it has an impact in the world. And Pass It Back gives MWV an opportunity to use its leverage to make an even bigger difference in the world.
  • 26. Respecting Human Rights: Why It Matters and What You Can Do26 MAKE IT RIGHT Respecting Human Rights: Why It Matters and What You Can Do26 MAKE IT RIGHT
  • 27. Respecting Human Rights: Why It Matters and What You Can Do27 Respecting Human Rights: Why It Matters and What You Can Do27 We take that responsibility seriously. MAKE IT RIGHT When we find a problem, we take corrective action. For example, our 14,000 supply chain audits uncovered the need for changes, and we’ve already made essential improvements that have benefitted over 1 million people. For many, this has meant: 4 Getting a day off from work that they otherwise would not have had 4 Working in a safer environment 4 No longer experiencing gender discrimination 4 Getting a 50% to 60% increase in income once their employer complied with the law Making it right can’t be a one-time thing. So, we look for opportunities to create global policies and tools that help associates prevent or handle issues in a consistent, compassionate way. See the next page for a few examples of how we’re making things right. Doing the right thing is in our DNA. Sometimes, doing the right thing means admitting that we can do better and making it right.
  • 28. Respecting Human Rights: Why It Matters and What You Can Do28 MAKE IT RIGHT Migrant Labor in the Business System and Supply Chain Middle Eastern Migrant Workers’ Passports No Longer Seized In 2008, our Supplier Guiding Principles audits found Middle Eastern bottling plants were seizing and holding migrant workers’ passports. Without passports, migrant workers can’t leave the country or work for another employer, which violates our SGP prohibition of forced labor. To help make this right, we provided bottlers with our research regarding local legal requirements, which conflicted with the commonly-held view that passport holding was legally required. We also provided training that helped bottlers change the policies of certain insurers that required this type of practice. Child Labor in the Agriculture Supply Chain Stakeholder Engagement Leads to Expanding Focus on Child Labor in Agriculture As a major buyer of sugar and other agricultural ingredients, we are using our influence to help end hazardous child labor in agriculture. Our efforts to end hazardous child labor in our agriculture supply chain began in the sugarcane harvesting industry and have since expanded to include our entire agricultural supply chain. While there is still much to do, we’ve had some successes. (See more detail about our efforts to prevent hazardous child labor.) Contract Labor in the Business System Contract workers within our system might be doing the same job as full-time employees, but may earn substantially less and have fewer benefits — even if they have more tenure. Through our work in India, the Philippines, and Pakistan, we’ve learned more about how to help ensure contract laborers are treated fairly throughout our system. And we’ve turned this learning into a new tool to help managers identify and assess common potential risks throughout the overall cycle of an employer’s relationship with a contract worker. As result, we’ve reduced the use of “non-seasonal” contract labor in India, the Philippines and Pakistan. Leadership Safety Engagement Program in Morocco When an external stakeholder raised concerns about safety and health issues in our bottling system, the Global Workplace Rights and Safety teams collaborated to conduct a comprehensive safety summit. The best practice-focused session provided practical tools and advice that could be implemented right away. Programs like this can help improve our safety record because they clarify our safety expectations, drive accountability and help build capability in our system. Respecting Human Rights: Why It Matters and What You Can Do28 How We Make It Right: A Few Examples
  • 29. Respecting Human Rights: Why It Matters and What You Can Do29 Respecting Human Rights: Why It Matters and What You Can Do29 MAKE IT RIGHT ClearingMachetesfromClassrooms Cindy Sawyer Work Environment & Workplace Rights Director The Coca‑Cola Company The opportunity to play a role in addressing child labor in sugarcane harvesting has been both challenging and humbling. This is especially true working from the Center, because you tend to think, “How can we have a direct impact…from here?” But with our Global/Local strategy, we are. I see it in the work of our multi-stakeholder initiatives and in my personal experience. I remember long ago explaining to some sugarcane plantation owners why child labor isn’t acceptable anywhere in our supply chain. They weren’t ready to hear that message at the time, because in many places, children work alongside their parents as a way to make ends meet. When I showed them pictures of children with machetes and highlighted the hazards, someone said if they don’t start cutting sugarcane as children, they won’t get calluses on their hands tough enough to be able to hold the machete when they’re older. I’m pleased to say, they don’t think like that today. The industry in several locations has come a long way. I saw this personally, when I helped to refurbish a school in Central America. Some of the children used to work in the sugarcane fields, but now they’re in school. When I was cleaning up a classroom, I found a discarded machete. It seemed symbolic—like that “tool of the trade” had been traded for the opportunity to go to school. During the same trip, our Company’s Sustainability team completed a project to provide water to the refurbished school. To see our Company holistically helping a community like that was really powerful. It’s one of those experiences that sticks with you, and it confirms that we really can make a difference. Why It Matters to Me Cindy removes a discarded machete from a classroom when helping to refurbish a school in Central America.
  • 30. Respecting Human Rights: Why It Matters and What You Can Do30 MAKE IT RIGHT Since 2003... Since 2007... More than 14,000 assessments completed, covering more than 2.5 million workers Compliance with Supplier Guiding Principles 2012 closed at a record performance of 81%, versus a global goal of 80%, as measured by our Global Workplace Rights Scorecard We show a steady track record in score performance improvement 94% of our core suppliers, or more than 4,000 locations, have been audited. Over 150 facilities with egregious practices have been identified and addressed Over 1 million workers in our supply chain have benefited from improved practices Nearly 50,000 violations to local law that could draw civil or criminal sanction have been identified and have been, or are being, resolved *All figures above are as of 2012. Making It Right, By the Numbers* 44%2009 2010 2011 2012 2015 2020 63% 73% 81% GOAL 91% (OVERALL) GOAL 96% (OVERALL) 94% OR The income of workers increased by an average of 53% to 65% in factories in China and India that overcame noncompliances related to wage and benefits payments. $ Respecting Human Rights: Why It Matters and What You Can Do30 14,000 4,000 27% 81% 2007 2012 80% 81% 2012Global Goal 150 250K 500K 750K 1 MILLION
  • 31. Respecting Human Rights: Why It Matters and What You Can Do31 Respecting Human Rights: Why It Matters and What You Can Do31 MAKE IT RIGHT MyDadPlantedtheSeedof‘Rights’forMe Kent McVay International Labor Relations and Global Workplace Rights Director The Coca‑Cola Company I care deeply about human rights today in large part because of my dad. I grew up in the deep south of the U.S., as the youngest kid in a large family. My dad was active in local community politics while I was growing up. He volunteered to register other voters during local, state and federal election cycles, and he worked actively on community issues, particularly in the African American community where I grew up. I remember him saying he did not have the federally- protected right to vote until the year I was born, and he would often tell me and my siblings how important it was to exercise our right to vote. Years later, I reflected on the fact that, as an African-American man growing up where he did, he did not have a federally-protected right to vote until he was 35 years old. My dad was right; the right to vote is an invaluable right that everyone should have. And it’s not the only one. I believe all people should be treated fairly and have basic rights — irrespective of their religion, ethnicity, gender, color, etc. I’m proud that my work for the Company allows me to help ensure people working in our system are treated fairly and equitably. Why It Matters to Me
  • 32. Respecting Human Rights: Why It Matters and What You Can Do32 ENGAGE STAKEHOLDERS Respecting Human Rights: Why It Matters and What You Can Do32 ENGAGE STAKEHOLDERS
  • 33. Respecting Human Rights: Why It Matters and What You Can Do33 Respecting Human Rights: Why It Matters and What You Can Do33 ENGAGE STAKEHOLDERS Partnering with stakeholders also helps us make a bigger difference in the world, because it boosts best practice sharing and benchmarking, and helps raise the human and workplace rights bar for all companies and organizations. And when we can do that, we can help to improve the lives of millions of people around the world. To achieve these big ambitions, we continually partner with external stakeholders from the golden triangle of civil society, government and business — and with our employees. Together, we help create a rising tide that lifts all boats. That’s why we cultivate and maintain relationships with the people who know. And we’ve created routines to involve them, to listen to them and to learn from them. It would be foolish to think we could do it all alone.
  • 34. Respecting Human Rights: Why It Matters and What You Can Do34 ENGAGE STAKEHOLDERS Civil Society Civil society includes socially responsible investors, universities and students, people in the communities we serve, labor unions and similar organizations, NGOs and more. A few examples of our engagement: 4 During the 2012 Clinton Global Initiative’s annual meeting, Chairman and CEO Muhtar Kent met with Human Rights Watch and discussed human rights issues related to the Winter Olympics and Myanmar. 4 The company responded to Oxfam’s concerns by outlining a concrete action plan to address land rights of farmers in our supply chain. It includes zero tolerance for “land grabs.” 4 When the International Union of Food and Allied Workers (IUF) our largest Stakeholder, made us aware of health and safety issues in Morocco, we took action. Government We regularly work with national governments and departments of labor where we operate. 4 Our engagement with ILO-IPEC has led to effective child labor initiatives. 4 We’re working with the South African government and its fruit industry and to establish human and workplace rights standards. 4 We worked with the local ILO and British Council to focus on supply chain human rights in Myanmar, and set the transparency bar for the mandatory U.S. State Department public reporting that is required to maintain our U.S. license to operate there. Business Collaborating with like-minded businesses augments our efforts worldwide and helps us learn. Leading the Way Through AIM-PROGRESS Through our leadership role in AIM-PROGRESS, we’ve helped to expand leading-edge practices, avoided more than $1 million in costs and advanced human rights knowledge in our supply chain. AIM-PROGRESS is a forum of more than 30 businesses in the Fast Moving Consumer Goods industry. Learn more. Shift Project Twice a year, we participate with several other multinational companies in Shift’s collaborative session on implementing respect for human rights. Shift’s team, many of who were involved in the writing of the UN Guiding Principles on Business and Human Rights, provide us with valuable advice and benchmarking information on challenging issues such as grievance mechanisms in our supply chain. Engaging the Golden Triangle Respecting Human Rights: Why It Matters and What You Can Do34
  • 35. Respecting Human Rights: Why It Matters and What You Can Do35 Respecting Human Rights: Why It Matters and What You Can Do35 TOOLS YOU CAN USE Tools You Can Use Resources & Policies Human and Workplace Rights Policy Provides a consistent approach to human and workplace rights in our Company worldwide and embeds it as an integral part of our culture, strategy and day-to-day operations. p.18 Supplier Guiding Principles (SGP) State our expectations of suppliers in our global supply chain, emphasizing workplace practices that respect human rights and comply, at a minimum, with applicable laws and international conventions. p.18 EthicsLine (866) 790-5579 Employees can confidentially report potential human rights or ethics issues (accessible 24 hours/day). p.17 Human and Workplace Rights Training Multiple online courses for all employees offered through Coca‑Cola University. p.18 Human Rights Statement and Workplace Rights Policy Manager’s Guide Guidance to help managers understand and implement the HRS and the WRP. p.17 Human and Workplace Rights Policy Toolkit Guidance for employees who select suppliers and manage relationships with facilities assessed under SGP or WRP. p.17 Workplace Rights Implementation Guide Describes the SGP assessment process, the steps suppliers can take to comply, and suppliers’ role and responsibilities with regard to SGP. p.23 Requirements for All Suppliers Page on Coca‑Cola Journey website providing links to our requirements for all suppliers. Hours of Work Guidance Resource to help facility managers identify and address the root causes of overtime. Citrus Industry Farm/Grove Resource Guide Helps Florida citrus suppliers maintain SGP objectives. Third-Party Sugar Studies, by Country Describe current state of workplace and human rights in the sugar supply chain in Costa Rica, Dominican Republic, Guatemala, Honduras and Nicaragua. Checklists & Assessments Human Rights Due Diligence Assessment Checklists Help managers identify potential human rights risks in all activities in which the Company is engaged. Each checklist includes a basic explanation and case study regarding the purpose of conducting a human rights assessment, as well as instructions for using the tool. The checklists offer easy to understand identifiers for possible human rights-related risks. 1. Micro-Distribution Centers (MDCs) checklist helps MDC operators support positive, safe and healthy work environments. 2. Migrant Worker checklist identifies key areas for employers to monitor when employing migrant labor. 3. Contract Labor checklist is to help facilities using large numbers of contract workers ensure human and workplace rights are being respected. 4. Child Labor in Agriculture checklist is to help facilities understand the human rights risks associated with child labor and take steps to ensure they are not employing children. 5. Plant Siting Due Diligence checklist is to identify the potential human rights-related risk as the result of plant siting activities. 6. Non-Trademark Activation Due Diligence checklist is a human rights risk assessment for artisans. It supports the 5by20 program’s use of artisans to develop promotional products. 7. Pre-sourcing Human Rights Due Diligence checklist helps assess human rights risk in procurement activities. For questions or more information, email: humanandworkplacerights@coca-cola.com
  • 36. STAND UP KNOW BETTER MAKE IT RIGHT ENGAGE STAKEHOLDERS ©2013 by The Coca‑Cola Company (“TCCC”), Atlanta, GA, USA. All rights reserved.