Lecture 4 - The Killer Coke PDF

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Lecture on The Killer Coke...

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The Coca-Cola Company vs. Coca-Cola FEMSA vs. Killer Coke

Reputational Problem at a glance: 

The Coca-Cola Company has developed a bad reputation in Barranquilla, Colombia, due to issues relating to the murders of employees whilst trying to form a trade union. The main issue sprung out from the lack of communication between The Coca-Cola Company (USA) and Coca-Cola FEMSA (Latin America); both were accused of hiring paramilitary mercenaries to suppress trade unionists. This is where ‘Killer Coke’ entered as Coca-Cola’s main watchdog group to bring the issues to light.

Coca-Cola: you can run but you can’t hide 

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In 2006, Coca-Cola spent $2.6 billion on print, radio, tv, and internet advertising - Coca-Cola is on every social media platform: Facebook, Twitter, Pinterest, YouTube, Flickr - It’s everywhere; in movies, they sponsor sports teams/events, music events, etc. - Coca-Cola wants to tell a story; a story that resonates with people…happiness (living on the Coke side of life) Coca-Cola initiatives - Leadership Priorities (evaluated by Sustainability Reports): - Women: 5by20 – empower 5 million women by 2020. Provide women with the proper skills training to grow their business. - Water: presence is global and local; commitment to communities to provide safe, clean drinking water. Investment in sanitation programs. - Well-being: Promoting healthy, active lifestyles (address obesity). Low-/no- calorie beverage options, nutritional information, investment in physical activities/nutrition programs, and responsible marketing (no purchasing ad space in all mediums of communication for those targeting children 12 and under) 2020 Vision (TCCC & Bottling Partners): - Coca-Cola’s 9-year plan aims to focus on building the company to be a global leader in the beverage industry - Profit, people and the environment (essentially, doubling in size)

Watchdog group: killer coke, Colombia case (2001-2006)  

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Worldwide campaign led by Ray Rogers SINALTRAINAL  Coca-Cola FEMSA (CCF) trade union - Trade union members have been tortured and two leaders murdered for their strong activism against working conditions in the Colombian bottling plant. “Soft Drink, Hard Labour” Sources: - Dispatches = Coca-Cola - The Coke Machine - Belching Out the Devil

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Worldwide boycotts across university campuses Watchdog Group Killer Coke (watchdog group) was created to hold The Coca-Cola Company, its bottlers/subsidiaries accountable for their human rights violations and collaboration with paramilitary groups. Killer Coke’s strategy was to reach out to students in university campuses The Coca-Cola Response

The Coca-Cola Company: deny, deny, deny 

The Coca-Cola Company (USA) VS. Coca-Cola FEMSA (Latin America)

(Coca-Cola FEMSA, 2013)     -

Executive Summary and Fact Sheet: The Coca-Cola Company cleared The Coca-Cola Company: deny, deny, deny / The Coca-Cola Company (USA) VS. Coca-Cola FEMSA (Latin America) The Coca-Cola Company out of the USA has denied their involvement in the brutality taking place in Colombia Coca-Cola FEMSA Is the world’s largest Coca-Cola bottler Produces and distributes Coca-Cola products all over South America -Ownership structure (separation of TCCC and FEMSA) Executive Summary and Fact Sheet: The Coca-Cola Company cleared Utilized company website to communicate with public. Issued an executive summary and fact sheet that proves no wrongdoing Also, issued brief statements with regard to the boycotts Dropped from the lawsuit filed in Miami--TCCC wrongdoing not proven (audits/inspections done, and no wrongdoing has come out of it) Passed two (2) judicial inquiries in Colombia--conclusion: employees able to create and associate with a union TCCC agreed to International Labour Organization investigation (?) TCCC invested $10 million in Colombian Foundation for Education and Opportunity – addresses the needs of victims of violence (hid behind CSR)

Bad issues management is a result of a lack of communication 

There is no such thing as a “Boundaryless Organization.”

Bad Reputation 

Point of conflict between an organization and its stakeholders.

Putting the issue into perspective A slowly taken approach to reestablish an organization’s image after being damaged      -

From an issues management perspective: Issues management as a way to address a concern surrounding the organization and its practice. Buffering (PR as the art of buying time through silence (in this case)): Remained silent for the most part Waited to be “acquitted” by courts/judicial inquiries From a CSR perspective: CSR as going above and beyond to be a “responsible citizen” in keeping with social norms. Reactive (a slowly taken approach to reestablish an organization’s image after being damaged): $10 million investment TCCC + Bottling Partners (the new vision which includes the bottling partners) The Coca-Cola Company is changing their tune to include their bottling partners in their vision for the future as seen in their communications

Recommendations and conclusions     

Work on communication between headquarters and subsidiaries Immediately hold a press conference to address issue Assume responsibility (accountability) for actions/lack of action Giving credit where its due: weathered the storm Something to take away from studying this issue...